Orient Energy Review Vol 9 No.4

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COVERING LOCAL CONTENT IN THE ENERGY SECTOR

VOL.9 No.04

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Second chance for Nigeria’s oil industry reforms

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CONTENTS

rientEnergy Review ...driving local content development

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Buhari appoints Thomas John as Alternate Chairman NNPC board FG loses N231bn from inactive refineries since 2015

Onafowokan: Local Content policy boosted our visibility in oil and gas industry

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‘Shell’s local content compliance, achievement unrivaled’

Nigeria needs to harness human capital for development – Engr Okwuosa Ampelmann passes 10,000 safe people transfers for MPN in Nigeria

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Nigeria Mentors Uganda in Local Content Implementation

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Stakeholders harp on benefits of LPG to Nigeria

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B2 Oil and Gas Limited -Project 100 has given us edge over others

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ADIPEC 2019 Awards: Call For Entries

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Oil and gas stakeholders set agenda for 9th National Assembly

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Waltersmith’s Modular Refinery to open in May 2020 – Wabote

Africa E&P Summit: Concerns on ESG risks greets rising E&P prospects in Africa

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ORIENT ENERGY REVIEW Vol.9 No. 04

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EDITOR’S NOTE

Publisher/ Editor-in-Chief Nneka Ezeemo

t is a new dawn for Nigeria and the entire energy sector as she welcomes to the saddle new captains who will pilot the affairs of the industry in different capacities within the next four years.

The few and key appointments made so far in the industry is a pointer to the administration’s determination to move the industry forward. And Orient Energy Review heartily congratulates and welcomes on board, the acting alternate chairman of the Nigerian National Petroleum Corporation (NNPC) governing board, Dr Thomas Maurice Asuquo John, the new Group Managing Director, Mr. Mele Kolo Kyari and Chief Operating Officers of the NNPC subsidiaries.

Our farewell message also goes to the outgoing Minister of Petroleum Resources, Dr Emmanuel Ibe Kachikwu and the outgoing GMD, Dr Maikanti Baru whose efforts and contributions towards transforming of the nation’s oil and gas industry are certainly well appreciated and will remain indelible on the sand of time.

In this edition, OER heralds the emergence of this new era with a cover story, ‘Second chance for Nigeria’s oil industry reforms’ where we x-rayed the industry’s activities during the past administration along with expectations from the new administration.

Our poise to keep you duly updated with a very fresh, factual and timely report of events as they unfold remains firm. Here is another rich edition with carefully selected news reports and analyses to satisfy every reader’s quest for a balanced reportage of the industry within Nigeria and across the globe.

We are deliberate in our content arrangement. Our Local Content stories are elaborately used to carefully project the unique and strategic efforts as well as the achievements Nigeria is making through the Nigerian Content Development and Monitoring Board (NCDMB), as it leads the way for greater capital retention and truly transformed oil gas industry in Africa.

Dear esteemed readers and advertisers, we welcome you back home after the Offshore Technology (OTC), Africa E&P Summit, Global Petroleum Show and many other international oil and gas events. Here, in Abuja is our own very Nigeria Oil and Gas (NOG) conference – the 18th edition where the conversation on moving Nigerian oil and gas industry forward will continue. It is another season of coming together of key industry actors and stakeholders for exchange of ideas, network and get loaded with new knowledge – as the NOG conference is renowned for.

OER team attended most of the international events and has captured them in news and photo reports.

This is another loaded edition! Every page promises a worthwhile return on investment of your time and resources. We remain that global brand in the reportage of the energy sector value chain.

Please, do use our various channels to send us your feedback. We look forward to hearing from you.

Happy reading!

Peace Obi

Mobile line: +234 8036979049 peace.obi@orientenergyreview.com

Editorial Advisory Engr.Andy Olotu Victor Eromosele Stanley Egbochuku Editor Peace Obi Correspondents Chibisi Ohaka(Associate Editor) Vivian Israel ( Head South-South Bureau, PortHaracourt) Gilbert Boyefio (Ghana Correspondent) Godspower Ike (PortHarcourt) Kenechukwu Obiajuru (Bayelsa) Dirisu Yakubu (Abuja) Business Development Manager Mike Omeife Business Development Executive Catherine Saunt ( UK ) Designs Kelechi Okoro Admin/Finance Chiamaka Okeke Circulation Manager Ajayi Kayode London Office 15 Goss Avenue, Waddesdon, Aylesbury, Bucks, HP18 0LY +447974199137 Ghana Office Second Church Lane, Okpoi Gonno, Speintex Road.

Tel: 0243915206.

Email: gilbert@orientenergyreview.com orientenergyreviewgh@gmail.com

rientEnergy Review ...driving local content development

Orient Energy Review has emerged to be the platform and voice for the growing local content policy across the world. It is a bi-monthly publication of Orient Magazine, Newspaper and Communications Limited, 5, Dipo Dina Drive, Abule Oshun, Badagry Expressway, Lagos. www.orientenergyreview.com email: info@orientenergyreview.com ©2019 allrights reserved ISSN: 2315 908 -1

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INDUSTRY NEWS

Buhari appoints Thomas John as Alternate Chairman NNPC board Chibisi Ohakah, Abuja

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resident Muhammadu Buhari has appointed Dr Thomas Maurice Asuquo John as acting alternate chairman of the Nigerian National Petroleum Corporation (NNPC) governing board.

Dr John, a former group managing director of the NNPC, was before the current appointment, a member of the NNPC governing board. A statement signed by the outgoing group managing director of the national oil company, Dr Maikanti Baru, said Dr Thomas John will hold the position of the acting alternate chairman of the NNPC governing board until a new minister of petroleum resources or minister of

state for petroleum resources is appointed ment is with immediate effect. to assume the chairmanship or alternate chairmanship position, respectively in line with Sections1(3) and 2(1) of the NNPC Act. Among others, Dr Thomas John was the pioneer manager, Kaduna Refining Petrochemical Company, pioneer manager, Eleme Petrochemical Company, Port Harcourt, Group Managing Director, NNPC, President Nigeria Society of Chemical Engineers, non-executive director, UBA Plc, Fellow, Nigerian Society of Chemical Engineers, and member board of the NNPC since 2016.

Dr Thomas John The statement said Dr John’s appoint-

NNPC gets new GMD, seven chief operating officers as Baru retires

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resident Muhammadu Buhari has appointed Mr Mele Kolo Kyari, as the new group managing director of the Nigerian National Petroleum Corporation (NNPC), bringing to an end the tenure of Maikanti Baru, as the oil Corporation’s boss. The company spokesman, Ndu Ughamadu, in a statement, said that alongside the new GMD, President Buhari also appointed seven new chief operating officers.

Until his new appointment, Kyari, a geologist, was group general manager, crude oil marketing division of NNPC and also doubled, since May 13, 2018, as Nigeria’s national representative to the Organisation of the Petroleum Exporting Countries [OPEC]. According to the statement, newly appointed officers will work with the current occupiers of the various offices till July 7, 2019 towards a smooth transition on July 8, 2019, when their appointments

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would take effect.

The Corporation, however, stated that the appointment of Mr. Farouk Garba Said (North West), who is replacing a retiring chief operating officer is effective from June 28, 2019. The newly appointed chief operating officers include Mr Roland

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Onoriode Ewubare (South-South) – chief operating officer, Upstream; Mustapha Yinusa Yakubu (North Central) – chief operating officer refining and petrochemicals; Yusuf Usman (North East) – chief operating officer, gas and power; and Lawrencia Nwadiabuwa Ndupu (South East), chief operating officer ventures.

Others include Umar Isa Ajiya (North West) – chief financial officer; Adeyemi Adetunji (South West) – chief operating officer, downstream; and Farouk Garba Said (North West) – chief operating officer, corporate services.

NNPC said under Kyari’s watch, the crude oil marketing division had recorded noticeable transformation in the management and sales of various Nigeria’s crude oil grades via an infusion of transparency and automation of the processes. Kyari would be the 19th group managing director of the national oil company.

INDUSTRY NEWS

Ladan bows out of DPR, hands over to Shakur Peace Obi

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he Department of Petroleum Resources has announced the retirement of Mr Mordecai Ladan, as the director of Department of Petroleum Resources [DPR] following the expiration of his tenure (2015-2019). The agency in a statement said that Ladan handed over to the deputy director and head, corporate services division, Mr. Ahmed Rufai Shakur

in an acting capacity. Mr Shakur is the most senior officer in the department A graduate of the Ahmadu Bello University with a Master of Business Administration degree. Mr Shakur has held various positions across the value chain of the DPR from the zonal offices to headquarters and has attended numerous management and leadership courses locally and internation-

ally in notable institutions worldwide like the Columbia Business School, New York USA and Wharton Business School, Pennsylvania, USA. Embodied with renowned past records in strategic leadership, corporate governance and optimal performance, Mr Shakur is expected to steer the Department to the next level.

FG loses N231bn from inactive refineries since 2015 Chibisi Ohakah, Abuja

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he three major government-owned refineries located in Warri, Port Harcourt and Kaduna lost over N231 billion in the last four years due to the Federal Government’s inability to keep its promises of rehabilitating them, latest report from the Nigerian National Petroleum Corporation (NNPC) has said.

According to the report released last weekend in Abuja, the delayed rehabilitation of the refineries cost the FG N34.57 billion from June to December 2015; N8.64 billion in 2016; N47.19 billion in 2017, and N132.51 billion in 2018. All the refineries stopped the processing of crude oil in 2015. The report said that in 2015, the Port Harcourt, Warri and Kaduna refineries lost N10.05 billion, N36.03 billion and N21.39 billion respectively.

Further in the report, the Warri refinery was recorded as idle for five months in 2016; the Kaduna refinery did not refine crude for six months, while the Port Harcourt refinery was recorded as being idle only in September of the same year. In 2017, Kaduna, Warri and Port Harcourt refineries were said to be idle for six, five and two months, respectively, causing the FG to lose N32.61 billion, N22.14 billion and N11.51 billion respectively.

Then in 2018, the Kaduna refinery could not process crude oil for 11 months, while Port Harcourt and Warri were shut for seven

and three months respectively, losing N31 billion, N59.96 billion and N41.71 billion.

The NNPC report also said that the Kaduna and Port Harcourt refineries could not process crude oil in January this year. All the three refineries have a combined installed capacity of 445,000 barrels per day, the Corporation said.

The immediate past minister of state, petroleum resources, Dr Ibe Kachikwu, has said upon assumption of office in 2015 that the FG has intended to attain a minimum of 90% capacity utilisation in the three refineries, using third-party financiers. Investigations show that the ministry of petroleum

resources had reviewed expressions of interest from 28 potential financiers. But varying positions of interest and “key commercial terms” were said to have stalled the negotiations last December.

An impeccable NNPC source however said that indeed the negotiations for offshore funding were scuttled due to what he described as ‘onerous conditions and positions’ sought by the third party financiers who were approached. The Corporation was said to have resorted to internal cash flows and debt financing from the financial markets, which turned out not to be enough.

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INDUSTRY NEWS

Nigeria’s daily oil output hits 2.32mbpd

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utgoing group managing director, Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, says the country’s daily oil production is currently 2.32million barrel per day. He disclosed this on Tuesday when a delegation of the Nigerian Union of Journalists (NUJ) led by its President, Chris Isiguzo, visited his office in Abuja.

“Since we came in July 2016, we are focused on increasing production of oil and gas and condensates. At some point, our national combined production was about a million barrels; I am happy that as at the end of 2018, we have moved on averaging last year, about 2.1 million barrels.

As I am speaking, this morning, I look at our production figures, combined oil and condensates we are pushing 2.32 million barrels a day,” he said.

According to him, the stability and ability to push production has come as a consequence of several factors, both internally, externally and also with the help of the media. Commenting on the gas sector, he said the Corporation had also pushed from a low level of about 450 million standard cubic feet per day for the domestic alone and currently hovering at about 1.5 billion SCF per day of gas.

He noted that internally, its subsidiary, the Nigerian Petroleum Development Company (NPDC), had pushed their production on the equity side, from a low figure of 65,000 barrels per day in 2016 to over 166,000 barrels per day equity. “Overall production of the NPDC, we are able to maintain it at close to 300,000 barrels per day. It is quite a significant boost,” he added.

The GMD further said that NPDC, had become the main supplier for gas for the power sector, supplying over 800 million SCF per day required to boost the production of power in the country. Currently, the power that we enjoy has about 80% input

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from gas-driven thermal power plants. Our drive for transparency has also produced a lot of fruits. We have been able to attract Foreign Direct Investments (FDI), into the oil and gas industry, and in 2017 alone, we have attracted about 3.6 billion dollars.

“In 2018, we have shot up by three billion dollars, at the moment, some of our officers are in London, where they are negotiating about seven billion dollars as FDI for the oil and gas sector. “In terms of crude oil cost of production, it has significantly improved from the 27 dollars per barrel in our Joint Venture operations, and it has come down to 22 dollars per barrel.

We are looking for further reduction this year, to about 20dollars per barrel,” he added.

On Exploration, he noted that at the Kolmani River prospect in the Gongola basin, the corporation targeted for the well to be done in 60 days, but because of the interest, “we are doing intensive testing and we still have not hit the Total Depth (TD).

“We think maybe by next week, we will be able to hit the TD of 14,250 feet. The TD is not sacrosanct. If we find that there are interesting signs beyond the TD, the rig has a capability of 20,000 feet. There are interesting things we are doing, all these to

ORIENT ENERGY REVIEW Vol.9 No. 04

increase the reserves of the nation. This, we are doing assiduously,” he said On the refineries, he said that the contractors were still on site with the review for effective evaluation, adding that the corporation expected that by October it would be concluded and it would move to look for financiers. He urged the media to continue to support efforts that would help to protect oil infrastructure in the country.

Earlier, Mr Isiguzo commended Mr Baru on the transparency and efficiency in the management of the affair of the corporation.

He appealed to the security agencies, host communities and traditional rulers to support NNPC’s effort to protect the oil pipelines and infrastructure across the country. He said the union would partner with the corporation and continue to carry out its roles for the growth and development of the sector.

“We are committed to going beyond unionism to make impact in the society, which is our primary role and we have started that with the launch of our magazine ‘The NUJ Defender’. We believe that our collaboration NNPC will continue to help the sector and the country at large,” he said.

INDUSTRY NEWS

Nigeria needs to harness human capital for development – Engr Okwuosa Patrick Egwu, Enugu

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he Managing Director/CEO, Oilserv Limited, Engr. Emeka Okwuosa has harped on the need to harness and develop Nigeria’s human capital as a way of joining the 4th Industrial Revolution, which he says ‘will change the world forever.’

While delivering his paper titled “Making of a leading Entrepreneur” during the National Innovation Summit at the University of Nigeria, Nsukka, Okwuosa said without innovation and growth of the economy anchored on education, it will be difficult to move forward as a nation, emphasizing that this is the drive for the new revolution.

“Innovation and entrepreneurship is the way to go and what is driving the new industrial revolution,” Okwuosa said while speaking to an audience of more than 500 at the Princess Alexandria Auditorium of the institution. “Creating an entrepreneurial ecosystem and mentorship is very important. You must build your ideas and have regular work ethics for you to succeed as an entrepreneur or innovator.

“Entrepreneurship forms the bedrock of the economy of any nation. Entrepreneurship makes an individual achieve personal success and plays a major role in improving economies by creating new job opportunities and economic growth and development. We must begin to think outside the box,” he said.

In his remarks, the vice-chancellor of the institution, Prof Chukwuma Ozumba, represented by the Deputy Vice-Chancellor, administration, Prof Charles Igwe, said

“We should see the 4th industrial revolution as a way to leapfrog from where we are now. Oil cannot take us to where we want to be.”

Further, Prof Igwe, who is the incoming vice-chancellor of the institution said “The University is leading in innovation with the establishment of Roar Hub in 2017 which has about 28 startups that have pitched their ideas to investors and won in major national and international competitions.”

In an interview with Orient Energy Review after the event, Professor Pat Utomi agreed that the future for the startups businesses in Nigeria is bright but however, advised young startups, innovators and entrepreneurs to focus on how they can change the society and bring about development rather than on the money they will get from what they do.

The event organised by Roar Hub of the University, is the first tertiary institution driven startup business competition organised by a university innovation hub.

Established in 2017, Roar Hub is the first university embedded technology hub and incubator which was set up to encourage

entrepreneurial development among students at the university and other institutions in the country.

It also aims to bridge the gap between the academia, public and industry while identifying, mentoring and investing in exceptional student-led ideas and helping their enterprise to achieve product-market fit and hopefully assist them to raise money.

Engr Okwuosa, who has a tech startup in the United States said his interest in innovation and entrepreneurship triggered his establishment of a graduate and technical training programme for Nigerian students by his company as a way of training a new generation of innovators.

During the event, different startups incubating at the hub and different hubs in universities across the country pitched their ideas to investors for the 1st Venture Cup competition.

Alphotazi Farms, a modular cassava processing company currently operating in a rural settlement in Benue state but based in Nsukka, won the first position and N1 million prize. Some of their clients include boarding schools and bulk buyers with advanced plans for packaging and distribution through supermarket chains.

The event attracted investors, industry players, government officials and members of the university community including Dr Sven Thore-Holm of Lundavision and Ideon Science Park in Sweden. Highpoints were panel sessions and the presentation of a book in honour of the out-going vice-chancellor, Prof Ozumba.

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INDUSTRY NEWS

ADIPEC 2019 Awards: Call For Entries

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As ADIPEC recognises innovation in transforming world’s oil and gas industry

o inspire and influence the workforce of the future, the organisers of the 9th edition of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) Awards have called for entries into the different categories of awards that will hold during 2019 edition of the annual conference in Dubai.

ADIPEC Awards which is hosted by the Abu Dhabi National Oil Company (ADNOC) targets to explore new, agile and flexible ways to build people and technology, while stating technology, innovation, environmental leadership and talented workforces are key elements shaping the companies of the future.

Entries are called for the following categories: Breakthrough Technological Project of the Year Breakthrough Research of the Year Digital Transformation Project of the Year Social Contribution and Local Content Project of the Year Oil and Gas Inclusion and Diversity Company of the Year Young ADIPEC Technical Professional of the Year Giving some of the factors that will influence the decisions of the distinguished panel of jury members to include industry impact,

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sustainability, innovation and value creation, the Awards organisers said that jury members have been carefully selected according to their expertise and knowledge, they include senior representatives from Baker Hughes, a GE Company, BP UAE, CEPSA Middle East, ENI Spa, Mubadala Petroleum, Shell, Total and Weatherford.

It was further stated that oil and gas is set to play a pivotal role in driving technology forward, and at this year’s ADIPEC Awards emphasis is placed on digitalisation, research, transformation, diversity, youth and social contribution, paving the way towards a brighter tomorrow for our industry.

The Chairperson of the awards (Acting CEO of ADNOC LNG), Fatema Al Nuaimi, said, “At a time when the industry is looking towards an extremely exciting future and preparing for Oil &Gas 4.0, the awards will recognise excellence across all its sectors and reward those who are paving the way towards a successful and sustainable future.”

“We call upon our partners across the globe to submit their achievements in projects and partnerships which are at the helm of technical and digital breakthroughs, as well as to nominate the next generation of oil and gas technical profes-

ORIENT ENERGY REVIEW Vol.9 No. 04

sionals, who will spearhead the ongoing transformation of the industry.

Continuing, she said, “These awards are recognising the successes of those companies and individuals who are responding in the most innovative and creative manner to the global economic and technological trends. Their contribution is pivotal to the development of our industry and to addressing the continuous growth of the global energy demand.“ Also, the President of the Energy Division, dmg events, organisers of ADIPEC, Christopher Hudson, said: “With ADNOC as the host and ADIPEC as the platform for the programme, the awards are at the heart of the worldwide oil and gas community. With its audience of government ministers, international and national oil companies, CEOs and other top global industry influencers, the ADIPEC Awards provide the global oil and gas community the perfect opportunity to engage, inspire and influence the workforce of the future.”

Entries are open until Monday 29th July 2019. A shortlist of entries will be announced in October and winners will be revealed on the first day of ADIPEC 2019, Monday 11th November, St. Regis Saadiyat Island, Abu Dhabi.

INDUSTRY NEWS

Ampelmann passes 10,000 safe people transfers for MPN in Nigeria

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mpelmann, the Netherlands-based offshore access provider has passed a new milestone: more than 10,000 safe personnel transfers for Mobil Production Nigeria (MPN), the local entity of ExxonMobil. The A-type system was installed on the Jascon-55 vessel, which is operated by West African Ventures and conducting maintenance work for MPN. The project started in January 2019.

“We have completed over 10,000 safe transfers in under six months and enabled significant increases in available working hours,” said David Inman, Ampelmann’s Manager Sales & Business Development for Africa. “The uptake in W2W as a primary means of access for both project and crew change operations is growing regionally, and especially so in Nigeria.”

Ampelmann currently operates three W2W solutions, contracted through L.A.T.C. Marine.

“With three active systems and more to come, the future of getting to work is becoming as easy as crossing the street.”

The A-type is operating as part of a long-term contract that makes it possible for more than 100 people to be transferred each day on average. Ampelmann is looking forward to a continued collaboration with all parties involved.

Ampelmann will be exhibiting at Nigeria Oil & Gas 2019 from 2-4 July at booth E140 in the ICC, Abuja. Ampelmann designs and delivers innovative, safe, reliable and efficient transfer

solutions to the offshore energy industries globally. With a track record of more than 5.2 million safe people transfers, over 11 million kg cargo transfers and 300 projects worldwide, Ampelmann operates in Europe, Africa, Asia Pacific, the Americas and the Middle East.

Ampelmann currently maintains a fleet of 60 operational systems used for transferring crews and cargo to offshore structures. Its solutions are tailored to the needs of different market segments, sea states, cargo and crew loads, and are used by the key players in the global industry.

Ampelmann currently operates three W2W solutions, contracted through L.A.T.C. Marine.

“With three active systems and more to come, the future of getting to work is becoming as easy as crossing the street.”

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LOCAL CONTENT

Oil and gas stakeholders set agenda for 9th National Assembly Peace Obi

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he Local Content Stakeholders Strategy Session organized recently in Abuja for outgoing members of the Senate Committee on Local Content by the Nigerian Content Development and Monitoring Board (NCDMB), offered yet an opportunity for stakeholders in the industry to dissect the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, its enablement and benefits. The retreat titled “Deepening Legislative-Executive Relationship for Better Sectoral Performance” was held to review the activities of 8th National Assembly and set agenda for the incoming National Assembly.

The discussants held that the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act has enabled many Nigerians to benefit from the oil and gas industry in many ways, including assets ownership, capacity building and acquisition of critical skills. The immediate past chairman Senate Committee on Local Content, Senator Solomon Olamilekan Adeola, Nigeria has a lot to gain economically by the faithful implementation of the NOGICD

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Act 2010, relating to the oil and gas industry, as well as amendment of the law to embrace manufacturing, construction and communication and information technology sector.

According to him, an important agenda for the 9th National Assembly would be to quickly amend the Nigerian Content Act to cover other sectors like manufacturing, construction and ICT that are still dominated by foreign players. He also canvassed that the board should be further empowered to effectively regulate the international and local oil and gas companies, noting that some of them were still flouting the Nigerian Content Act in their operations.

“I want to also suggest that the Local Content Fund contributed by stakeholders should be more accessible to investors who remit the one per cent fund. Nigerians companies should be able to buy vessels from their manufacturers directly using the fund which will encourage accountability,” he said In his comments, the executive secretary, NCDMB, Engr. Simbi Wabote, said the nation had recorded impressive achievements in the implementation of Nigerian Content Act

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since 2010, with Nigerians playing key roles in the oil and gas industry, to the level of heading foreign firms in Nigeria. He added that the overarching focus of Nigerian Content, which is the domiciliation and domestication of value-adding activities are being achieved creditably, rather than just “Nigerianization.”

He reaffirmed the determination of the board to fulfill its mission “to be the catalyst for the industrialization of Nigerian oil and gas and its linkage sectors.”

Wabote also commended Senator Adeola for the strides he recorded as the chairman of the Local Content Committee, despite the fact that the committee was set up for the first time under the 8th Senate. He highlighted that the committee was able to keep major industry players on their toes by not relying solely on the board for information but reviewing the activities of the stakeholders independently.

He promised that their commendations and positive feedback from the committee will propel the board in the pursuit of its 10year strategic roadmap to increase Nigerian Content performance to 70% by 2027.

LOCAL CONTENT

Waltersmith’s Modular Refinery to open in May 2020 –Wabote

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he executive secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has disclosed that the 5000 barrels per day modular refinery being developed

by Waltersmith Refining & Petrochemical Company Limited with equity investment from the NCDMB would be completed in May 2020.

He dropped the hint while on a project inspection last Monday at Ibigwe, Imo state in the company of the director of finance and personnel management, Mr Isaac Yalah, the chairman of Waltersmith, Mr Abdulrasaq Isah and the executive vice-chairman, Mr Danjuma Sale.

According to him, the progress completion of the project which stands at 65% was seven per cent ahead of the original schedule. The engineering and procurement components had also been completed, with construction at 60%.

Describing the project as an investment channelled in the right direction, the executive secretary of NCDMB commended the contractors – Lambert Electromac and Zerock for their remarkable pace of execution, dedication and expertise and for continuing with the project work in spite of the rains.

Speaking further, Wabote expressed delight at the number of Nigerians working on various aspects of the project, stating that it underscores President Mohammed Buhari’s commitment to creating employment for young Nigerians from the activities of the oil and gas industry. “I hope similar projects would come on stream pretty soon to generate employment for Nigerians.“ And in accordance with the Nigerian Content Act requirements for succession plans, Wabote also charged the contractors to train and absorb more Nigerians in senior management positions and make them permanent members of their companies, even after the project phase.

Wabote who noted that the Ibigwe modular refinery was the first of such projects to be undertaken by the NCDMB and Watersmith also hinted that the board had sanc-

tioned another modular refinery project to be developed at Calabar, Cross River State.

Chairman of Waltersmith thanked the executive secretary for the visit and affirmed that the company was satisfied with the quality of work from the contractors.

He also noted that Waltersmith had been steadfast on its obligations to the firms.

“We expect you to remain consistent with

us as well. But we are very happy with what we have seen and we are looking forward to commissioning and beginning to sell diesel and kerosene from this site in May 2020.”

The Project Manager of Lambert Electromac, Mr Mohamad Chit stated that all the outstanding construction at the site was above the ground and being fast-tracked.

He stated that the installation stage is expected to take four weeks when it begins in October 2019. Chit said the modular refinery project begun on a good footing with the host community and had continued to enjoy conviviality from the local population.

The board and Waltersmith signed the equity investment agreement in June 2018.

Wabote had explained at the ceremony that the investment decision was in line with the board’s vision ‘to be the catalyst for the industrialization of the Nigerian oil and gas industry and its linkage sectors.’

He added that the board was also keen to support the federal government’s policy on modular refineries and meet the key objectives of the petroleum industry’s Seven Big Wins launched by President Mohammed Buhari in October 2016 and the Economic Recovery and Growth Program (EGRP)

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LOCAL CONTENT

NCDMB acquires equity in Azikel Modular Refinery Peace Obi

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he Nigerian Content Development and Monitoring Board (NCDMB) has confirmed its acquisition of and equity in the 12,000barrels per day Azikel Hydroskimming Modular refinery being constructed

by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State.

When completed and operational in 2021, the modular refinery will produce about 1.3million litres of premium motor spirit (petrol) as well as diesel, kerosene, mixed liquefied petroleum gas (cooking gas) and a small percentage of heavy fuel oil.

The executive secretary of NCDMB, Engr. Simbi Kesiye Wabote, described the Azikel modular refinery as the second and largest so far in the board’s portfolio of support for the construction of modular refineries in the country. Wabote noted that the partnership had huge prospects in jobs creation, value retention, petroleum

products availability and in the development of in-country capability, adding that “the project fits perfectly with our vision

to serve as a catalyst for the development of Nigeria’s oil and gas sector.”

Speaking further, ES disclosed that the

NCDMB begins phase 2 of Bayelsa Oil an

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he Nigerian Content Development and Monitoring Board (NCDMB) has launched the start of phase 2 of the construction of the Nigerian Oil and Gas Parks Scheme (NOGAPS) in Emeyal-1, Ogbialand in Bayelsa State.

The Executive Secretary of NCDMB, Engr.

Simbi Kesiye Wabote announced this on Monday in Yenagoa, Bayelsa State during a town hall meeting with community stakeholders of the project, where he confirmed that the 25 megawatts independent power plant (IPP) being constructed in partnership with the Nigerian Agip Oil Company (NAOC) to supply electricity to the park and other dedicated facilities would be completed in July 2019.

He explained that the contract for the new phase of Bayelsa NOGAPS was approved by

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the Federal Executive Council, which underlines President Mohammed Buhari’s commitment to ensuring comprehensive development of the Niger Delta region, spur the incubation of manufacturing of oil equipment in-country to generate employment for young people.

He stated that the main purpose of the town hall meeting was “to formally inform stakeholders that we have secured Federal Government’s approval to award the contract for the construction of roads and drainage system in furtherance of the development plan of the industrial park.“ The new phase of the project would include the construction of pavements, walkways, parking lots, concrete-lined drainages, service ducts amongst others, he said.

Wabote thanked the community stakehold-

ORIENT ENERGY REVIEW Vol.9 No. 04

ers for the success so far recorded in the first phase of the project, adding that “it is due to the support so far received on the sand-filling and fencing works that give us the confidence to continue to the next phase of the project development.”

He underscored the need for the continued support of the stakeholders as the project is meant to bring progress and jobs to their area.

He added that ”I expect utmost cooperation from all as you play your roles and be part of history that will place your community on the map of oil and gas manufacturing activities.

Such roles include checkmating any individual or group that wants to derail this wonderful opportunity from coming to fruition in your community.”

The Executive Secretary confirmed that

LOCAL CONTENT board was in the final stages of commencing partnership in the development of another modular refinery in Calabar, Cross River state before the end of 2019.

According to him, “we are proud to be part of the journey to wean off our dear country from massive importation of petroleum products. Our data analytics show that we can more than double the contribution of the oil sector to the gross

domestic product if we achieve the current growth trajectory with the refurbishment

nd Gas Park O.K. Isokariari & Sons won the bid for the 2nd phase of the NOGAPS project and canvassed for maximum support for the contractor to enhance the timely completion of the project.

He stated that the contract made provision for hiring of a minimum of 80 per cent of all ‘unskilled labour’ from the host and immediate communities for the project execution, a minimum of 50 per cent of the semi-skilled and 20 per cent of the skilled labour requirements, except where there is no response from the communities to such advertised positions.

The NCDMB boss also indicated that community suppliers would participate in the supply of sand, granite, water, fuel and other construction supplies to be determined by the contractor and they would be subject to the quality required and fair market price.

of existing refineries, completion of the Dangote Refinery, and ongoing modular refineries, to bring refining to about 50 per cent of our oil production capacity from the current level of below 20 per cent.”

He further explained that the Board’s intervention extends to gas processing and utilization and it had progressed discussions with partners on the establishment of LPG cylinders manufacturing plant, LPG depots, and gas processing facilities. ’’One of the projects of interest is the establishment of an Inland LPG Depot in Abuja to complement Federal Government’s LPG Penetration Initiative. This project is part of the gas value chain as it utilises condensate which is one of the by-products from gas processing.”

He commended President Muhammadu Buhari for approving the licensing of modular refineries as a strategic solution for promoting local refining of petroleum products, job creation and industrialization. He also announced that Shell Petroleum Development Company (SPDC) would partner with Azikel Refinery by providing its crude feedstock from its oil fields.

The President of Azikel Petroleum Limited, Dr Eruani Azibapu Godbless who described NCDMB’s partnership in the modular refinery project as historic said that the Board has gone beyond its role

as a regulatory agency to also, serve as a catalytic agent to develop the infrastructure needed to address the insufficiency of refined petroleum products in Nigeria.

He said, “The equity participation from NCDMB sends positive signals not just to the local people but to the international community. This confirms to the international community that the Nigerian state is ready to revive the economy and that Bayelsa State is well positioned to ensure that more investors come in and domicile their investments.”

Stating that the company was licensed in 2015 along 36 other licensed modular refineries, Eruani confirmed that products from Azikel Refinery would meet the petroleum needs of residents in Bayelsa and the Niger Delta region, noting that ”we are creating industrialization and employment, rejigging the economy of the Niger Delta people and Bayelsa State.”

The ES and the director of finance and personnel management, Mr Isaac Yalah signed the shareholders’ agreement and the share subscription agreement during a ceremony at the board’s office on Monday in Yenagoa, Bayelsa State, while the President of Azikel Petroleum Limited, Dr Eruani Azibapu Godbless and vice president, Mr Presley Asemota signed for the company.

He charged the contractor to ensure safety and security at the site and promote a cordial and harmonious relationship with the communities. The firm is also expected to deliver on time, within budget and to the specified quality. “We have there two cardinal objectives in this project. The first is to maximize the participation and employment of persons from the communities in the project. The second is to ensure that the project is successfully completed on schedule.”

Further scopes lined up for the development of the 25 hectares industrial park include the provision of electrical and water utilities, warehouses, manufacturing shop floors, factories, capacity building centre, hostels, administrative block, mini estate, security posts, fire station, and other facilities.

Providing insight on the NOGAPS concept, the Executive Secretary stated that the oil and gas park “fits perfectly into our mantra to domicile and domesticate oil and gas activities

in-country. A key benefit to highlight is that about 2,000 jobs are projected to be created when this park is in full operation in addition to serving as a capacity development centre and on-the-job training hub for our youths.

There is no doubt that this project will positively impact Bayelsa State in general and the Ogbialand/ Emeyal-1 community in particular.”

The Obanobhan 111 of Ogbia Kingdom, King Dumaro Charles-Owaba suggested the setting up of a monitoring committee to be composed of representatives NCDMB and the community stakeholders, which would liaise with the Board and the contractor as well as provide members of the communities updates on the project.

Other stakeholders who spoke at the meeting promised a conducive environment for the project while imploring the contractor to avail them ample opportunities to participate in the execution.

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LOCAL CONTENT

Nigeria Mentors Uganda in Local Content Implementation

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he Nigerian Content Development and Monitoring Board (NCDMB) has begun to provide guidance to the Ugandan Petroleum industry on the implementation of Local Content in their budding oil and gas industry.

A nine-man delegation drawn from four different agencies in the Ugandan Petroleum industry visited the (NCDMB) recently to understudy the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in the oil and gas industry and seek counsel on how to implement a similar policy in their country.

Leader of the delegation and Head of National Content, Petroleum Authority of Uganda (PAU), Mrs Betty Namubiru explained that Uganda discovered oil in commercial quantities in 2006 and had a reserve base of about 6 billion barrels. She added that her nation was currently developing its oil and gas facilities, perfecting its policies and conducting studies on the best methodology to adopt in extracting and managing its petroleum resources. She indicated that the Ugandan oil sector needed an investment inflow of US$35bn and was expecting US20bn over the next three years.

She underlined that the visit to NCDMB was intended to enable the participating officials to understand key areas to focus on in their National Content drive, so the nation could derive maximum in-country value from the projected investments. She added that “Uganda has a long-standing relationship with Nigeria and this is just the beginning because our oil and gas sector is just evolving. We want to learn more about the steps you took in setting up your 10-year roadmap to grow Nigeri-

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an Content to 70 per cent.’’

Welcoming the delegation, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote stated that Nigeria is one of the leading nations in the world petroleum industry and is very advanced in the area of Local Content. Wabote who was represented by the General Manager, Research, Strategy and Development, Mr Abdulmalik Halilu stated that Nigeria was happy to share knowledge on its Local Content practice and provide guidance to Uganda and other African countries in their quest to improve Local Content implementation.

Making a presentation on the activities and achievements of NCDMB, Halilu stated that certain parameters were necessary for sustainable Local Content implementation, listing them to include gap analysis of the industry, capacity building, regulatory framework, incentives and research and development.

He also told the Ugandan delegation that Local Content needs the participation of foreigners and Foreign Direct Investment to thrive and that Local Content is not Corporate Social Responsibility, rather it promotes the

ORIENT ENERGY REVIEW Vol.9 No. 04

domiciliation of value-adding activities.

He also stated that Local Content requires the support of government at the highest level and should not be interpreted as an effort to nationalise foreign businesses.

Providing details on the Board’s Project 100 initiative, Halilu advised Uganda to “look at how to identify some companies that have come up without any assistance and develop some interventions to take them to the next level.” He also advised the team to ensure that every major oil and gas project in their country is designed to leave a legacy investment behind.

In his comments, the General Manager, Capacity Building, NCDMB, Dr Ama Ikuru stated for Local Content to succeed in Uganda, the administrators must insist on industry activities being executed in-country, as that would enable the indigenes to participate and acquire skills. He advised the Ugandan officials to focus on human capacity development and equip their indigenes with specialized skill sets required to work in the oil and gas industry. This is important he said because the cost of manpower often accounts for between 20 to 25 per cent of the operating costs of the industry. “If you can take that chunk, you have already improved your domiciliation.”

He also stated that 35 per cent of the industry budget is normally expended on equipment and assets, adding that Nigerian Content tries to capture that spend by giving first consideration to Nigerian companies that own vessels or manufactures vessels locally.

Orient Energy Review’s Editor met with ThinJack Ltd on their recent visit to Nigeria asking: . Who are you ?

ThinJack Ltd is a Scottish company delivering well flange services with innovative technology and on-line time saving techniques.

the USD 500 million in annual production losses. The solution: “NuttySecurity”.

a service from a local Nigerian company employing Nigerian staff.

4. What are the services or products you are bringing to Nigeria? As Q 2.

2. Tell us about ThinJack Ltd? ThinJack uses “extreme force” to separate seized flanges on oil and gas wellheads which are stuck together with rust and corrosion.

Our other “FlangeCentric” solutions include “NuttySecurity” which is the industrial equivalent of the security nuts on your car’s wheels.We develop unusual and time effective solutions for servicing old well heads.

5. Do you have a unique technology, expertise or approach you are bringing in country?

Yes, ThinJack is an order of magnitude thinner and more powerful than any other jacking system.

Nutty Security is supplied as a complete kit, minimising the likelihood that tools will be dropped in the swamp, and with a chain of custody for the security mechanism itself. Also, we aim to keep “one step ahead of the thief ” with our future designs.

7. Considering the uncertainty in the global oil and gas business, what strategies would your company adopt to weather the storm as you launch your operations in Nigeria?

A tight fixed overhead and multiple revenue streams from our speciality systems and services.

3. Why have chosen this market as your export destination?

Nigeria chose us. We delivered services to Equatorial Guinea and the good news reached Lagos and Rivers State.

In Nigeria we were asked to deter thieves from stealing well flanges helping to reduce

6. Do you reckon your investment in Nigeria will add more in-country value to the existing Local Content indices which the Nigerian Content Development & Monitoring Board (NCDMB) are working assiduously to improve?

Yes: NuttySecurity is supplied as part of

8. Considering the volatility of oil price, how timely do you think your investment decision is?

Good. The industry is receptive to solutions which minimise rig time; decrease damage to expensive well parts; reduce the likelihood of people getting hurt; shorten the online critical path activity of well workovers and limit production losses.

9. Would you advise your colleagues in Scotland to do the same thing you are doing now?

Yes. They need to invest their time and energy, through a multi-year period, and keep listening to the market.

ORIENT ENERGY REVIEW Vol.9 No. 04

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Oil &Gas

DPR begins pre-qualification of over 254 firms for gas flare commercialisation Peace Obi

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epartment of Petroleum Resources (DPR) has commenced the evaluation of statement of qualification (SOQ) of over 254 companies who had shown interest in Nigerian Gas Flare Commercialisation Programme (NGFCP).

Director of DPR, Mordecai Baba Ladan who was represented by the Deputy Director, Gas Monitoring and Regulation, Mr. Olusanya Bajomo, said at the opening ceremony of the pre-qualification exercise in Lagos on Monday that committees including the Proposal Evaluation Committee (PEC), International Observer Group (IOG), representatives of the Nigerian Extractive Industry Transparency Initiative (NEITI), NNPC, DPR and Ministry of Petroleum Resources (MPR) were set up to evaluate those companies that had indicated interest to participate in gas flare commercialisation which was instituted by the former Minister of Petroleum Resources, Dr Ibe Kachikwu.

Disclosing that the DPR has identified about 178 flare gas points across the Oil-Producing States, Ladan said that it is part of President Muhammadu Buhari and former Minister of State for Petroleum Resources agenda to achieve zero gas flare in Nigeria by 2020.

According to Ladan, about 850 companies had earlier shown interest when the advert was placed but that the figure dropped when a fee of 1,000 dollars (N360,000) was attached to the application form and other processing documentation to ascertain the serious ones. He said, “Today, we are commencing the evaluation of statement of qualifications for the Nigerian Gas Flare Commercialisation Programme.

Recall that advertisement was placed for interested parties who are willing to come forward to take the flared gas on behalf of the Government.

“We are going to open the documents to ascertain those companies that have showed interest and submitted their statement of qualification in response to the advert placed in 2018. After the evaluation,

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successful companies will move to the next stage.

“The Nigerian Gas Commercialisation Programme, which is the Government’s flagship programme that will create opportunity to take flared gas under the provision of Petroleum Act, also authorized gas commercialization through third party companies in order to promote investment and get people who are qualified technically, with the capability and experience to work in Niger Delta to harness gas flare to market.

“So, we are currently doing the preliminary evaluation process that will see companies that qualify to the next stage,” he said.

Speaking also, the Deputy Manager, gas production and monitoring unit, Mr Oluwole Ogunsola, said, “Federal Government through the DPR and other stakeholders are interested in credible companies with technical capacity and financial capability to be able to take flare gas to market and that is why the net is wide at this time.

“The provision of the law on paragraph 35B of the Petroleum Act, First Schedule, stipulated that the Government has the right on the flared gas. So, the Government has invoked that right by means of deregulation of the flared gas and Prevention of

ORIENT ENERGY REVIEW Vol.9 No. 04

Waste and Pollution Regulation of 2018, signed by Mr President and Minister of State, Petroleum Resources, which came into effect in July 2018 “By that regulation, the government owns the flared gas and the producer has no title to the flared gas, the government can now allocate it to competent companies that can take it to market. So, it is the Government’s right. However, this programme is to enable the Operators to make this work. There are mechanisms designed to protect the Operators. We are designing a programme that will intensify the scheme.

First, the regulation has increased the flared penalty, if you are producing 4,500 barrel on OML you pay 50 cents on the flare, if you are doing over 10,000 barrel, you pay 2 dollars. That is already an incentive for them to make it happen.”

Earlier in his remarks, the Chairman of the Evaluation Committee, Mr Rabiu Sulaiman, Director, Gas, Ministry of Petroleum Resources, commended the DPR initiative and the high level of transparency that was exhibited in the process. Sulaimon urged the committee members to stick to the rules and regulation of the exercise.

Oil &Gas

NLNG to take FID on Train 7 in October

Peace Obi

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he Nigerian Liquefied Natural Gas Limited revealed its readiness to finally commence work on the long-awaited Project 7 when it announced that the Final Decision on the project will be taken in October this year.

Managing Director, NLNG, Mr Tony Attah, disclosed this during a courtesy visit by the management of the gas firm to the Rivers State Governor, Nyesom Ezenwo Wike, at the Government House, Port Harcourt.

Attah stated that NLNG was set to kick off the Train-7 project, which according to him, was expected to cost $6-$7 billion.

He prayed that the second term of Governor Wike would be more rewarding for the people of Rivers State while commending the governor for his contribution to the development of the NLNG. “The employment side of Train 7 is that it will create about 10-15 thousand jobs for the people of the state. It will build the skills and capacity of the people.

“The final investment decision will be taken in October,” Attah said.

The NLNG boss also informed the governor that the firm has worked out the modalities to ensure that cooking gas is

delivered directly to Rivers State, instead of being routed through Lagos.

He appealed to the governor to assist in the realisation of the project by dredging the Iwofe waterway while commending him for promoting security in the state, which according to him, has created the right environment for investment.

“I must commend your efforts in keeping the state safe. We thank you for supporting and building security, which has given us the confidence to invest in the state. Train 7 is a game changer”, he said.

He also briefed Governor Wike on the investments in community health insurance scheme, power supply to Bonny and the eradication of malaria in Bonny.

Responding, Governor Wike declared that the State Government would support the NLNG Train 7 project to take off, because of its potential to create over 15,000 jobs and boost the state’s economy.

Governor Wike commended NLNG for establishing its headquarters in Rivers State and also working to eradicate malaria, adding that Rivers people were happy that the NLNG Train-7 would soon come on stream.

He also commended the management

of NLNG for initiating the Community Health Insurance Scheme for Bonny Island, saying that the State Government will partner with the company to achieve the objectives of the programme.

“Train 7 is very key to the development of Rivers State. We are glad that it will soon take off. I am happy with the quantum of jobs that the Train-7 will create in the State.

“However, these jobs should not be cleaners and unskilled workers. I want NLNG to ensure that qualified Rivers people are employed when Train 7 comes on stream.”

On the project initiated by NLNG to supply cooking gas directly to Rivers State, instead of passing through Lagos, Governor Wike assured that the State Government will dredge the Iwofe waterway for that purpose.

“I will only support companies that mean well for the people of Rivers State.

My business is to do good for our people so that their lives can improve.

“Other companies should emulate what NLNG is doing in Rivers State. On behalf of the people of Rivers State, I commend NLNG,” the governor said.

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Oil &Gas

Chevron signs 20 years gas supply agreement with Dangote

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hevron Nigeria Limited, (CNL) has signed a 20-year agreement to be the major gas supplier to the Dangote Fertiliser Plant at Ibeju-Lekki in Lagos state when the company’s operation begins.

This was made known by Mr James Okereke, general manager, Downstream Gas Chevron Nigeria/ Mid-Africa at the 2019 Advanced Writing and Reporting Skills (AWAReS) session at the School of Media Communications (SMC), Pan Atlantic University in Lagos. According to him, the company under Joint Venture (JV) has continued to supply the larger portion of

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its produced gas for domestic utilization to Egbin Power plants and to Gas-Based/ Conversion Industries including the Escravos Gas to Liquid (EGTL) plant.

According to Independent, he noted that Chevron has a long commitment to Nigeria for over 50 years with significant investments made in the country including gas development, adding that the oil and gas giant expects to do so for many more years to come.

He further stated that the company had a 40 per cent market share in the domestic gas supply and remains the number one supplier of gas domestic utilization over

ORIENT ENERGY REVIEW Vol.9 No. 04

the last five years. He explained saying “the JV continues to supply the larger portion of its produced gas for domestic utilization to Power plants (EGBIN) and to GasBased/ Conversion Industries (including the Escravos Gas to Liquid (EGTL) plant and, more recently, contract for the supply to the upcoming Dangote Fertilizer Plant at Ibeju-Lekki.”

The Chevron manager added that the Escravos Gas-To-Liquids (EGTL) facility was designed to process 325 MMSCFD of natural gas from the EGP and convert the natural gas into 33,000 bpd of GTL diesel, naphtha and LPG.

POWER

Discos need $4.3bn to improve power supply …TCN boss asks FG to invest the expected $1bn loan from W/Bank

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he Transmission Company of Nigeria (TCN) has called for the recapitalization of the 11 power distribution companies (Discos) in Nigeria for about $4.3 billion, to be invested in their networks nationwide in order to improve electricity supply in the country.

The federal government owns 40% stake in each of the 11 power Discos in the country. TCN advised that the federal government therefore should provide 40% of the $4.3 billion, which is about $1.7 billion.

Addressing newsmen in Abuja, the TCN’s managing director, Usman Mohammed, explained that the fund could be raised from the various funds the federal government is expecting from the World Bank and other international financial institutions which is about $1 billion respectively. “The government was supposed to collect about $1 billion from the World Bank for the Discos. Let us put that $1 billion to finance the recapitalisation of the Discos.

“We know that the African Development Bank and the World Bank are talking about another $1 billion for distribution expansion. We are saying that the money should also be put into the recapitalisation of the Discos.”

He called on the Nigerian Electricity Regulatory Commission [NERC] to come up with a regulation that would ensure that the money that would be invested in distribution would be adequately managed. “NERC should come up with a regulation that is consistent with the dec-

Usman Mohammed laration at ECOWAS that all procurement of the Discos and transmission, as well as other agencies in the sector, should be done competitively.

“This will ensure that the money that will come in cannot be squandered by people who give contracts to their cousins and wives. If we do that and we get this money that is coming in, $1.7 billion on the side of government, we will insist that the owners of Discos should also bring the same type of money. They should not bring money from commercial banks.

They should bring their own 60%. This money from international financial institutions has a repayment period of about 20 years at least and a moratorium period of about five years.”

He said the recapitaliastion will help correct some of the mistakes that were

made when the power sector was privatised and handed over to private investors in November 2013. Explaining some of the findings of a recent study conducted by the power regulation company in Abuja recently, Mohammed said the federal government needs to “recapitalize them in order to correct the wrongs in power distribution.”

To recapitalise the Discos, the TCN boss said, investors have to bring new money, and new partners also have to come in. “And what we are saying is that the government cannot be passive anymore. The intention was that the government would own 40 per cent in the firms, but it will have a nominal interest and that is why it is represented by one director, while the 60% that is owned by the Discos or the private sector in each of the firms will be represented on the board by six directors.”

He added, “But we are now saying that it should not be so. Government ownership should be represented by four directors proportionate to the investment.

And we are saying the government should bring its own 40% capital. We have simulated the grid to determine the investment requirement of the Discos and we have come with $4.3 billion.

“When this is divided based on our study, you are going to get about $500m per Disco and we believe our study is credible. So, we are saying the government should bring its own 40% of $4.3 billion, which is about $1.7 billion. We also said that this money can be raised,” he said

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POWER

Improved power supply critical to Nigerian economic growth - Dangote Peace Obi

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he President of the Dangote Group, Alhaji Aliko Dangote, has warned that the desired economic growth for Nigeria will remain a mirage in absence of adequate power supply.

The business mogul made this known during a consultative roundtable meeting with the CBN Governor and other economic stakeholders in Lagos, recently titled “Going for Growth”.

Wondering how a country can attain economic without adequate power supply, said, “How do you have economic growth without power? So, no power, no growth because without power there cannot be growth.”

Identifying lack of policy implementation as the biggest challenge in the country, Dangote said country’ power sector has been greatly affected by it, disclosing that while Egypt added 10 gigawatts to its power generation in 18 months, Nigeria is still struggling to add just 1,000 in over 18 years.

According to him, “no business will thrive with business owners generating power by

Aliko Dangote themselves.”

“Egypt increased its electricity by 10 gigawatts, which is equivalent to 10,000 megawatts in 18 months. In Nigeria, we have been struggling for 18 years without adding 1,000 megawatts and we have spent about three times above Egypt, why? So, I think we all need to be concerned about that.”

Calling on the Federal Government to improve power supply in the country, the business mogul, also called for public-private partnership to boost the non-oil sector of the economy, adding that Nigerians should invest in the development of the non-oil sector which had been left in the hands of foreigners.

He said, “Government needs to encourage non-oil sector growth rather than depending on proceeds from crude oil to pay salaries. Proceeds from crude oil sale should be for major investment in the country,” he added.

Besides power, Dangote advised the government to also pay more attention on three areas which include finance, manufacturing and agriculture.

According to him, Asian Tigers concentrated on these three sectors for them to be where they are today. He noted that must focus more on the fiscal policies for the country to move to the next level.

NERC rates Eko Electricity Distribution Company best

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igerian Electricity Regulatory Commission (NERC) has commended the management of Eko Electricity Distribution Company (EKEDC) for being the best distribution company in Nigeria. The NERC chairman, Prof. James Momoh, gave the commendation at the premier edition of EKEDC training for the newly employed 100 graduates by the EKEDC in Lagos.

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The News Agency of Nigeria (NAN) reports that the newly employed graduates of the EKEDC participated in the session on Friday. He said that the Disco had performed credibly well in discharging its statutory obligations toward effective electricity distribution to customers within its area of operations. According to him, the company has attained 100 per cent-customers-complaint resolution.

ORIENT ENERGY REVIEW Vol.9 No. 04

He added that part of the NERC’s scorecard indices used for the rating include: Aggregate Technical, Commercial and Collection (ATC&C) loss reduction, revenue collection and metering. Others include: High Voltage fault clearance index, remittance to market operator and remittance to Nigerian Bulk Electricity Trading Company (NBET).

POWER

Nigeria: 100% renewable energy is possible - Energy agency

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olutions Project has said that Nigeria can transition to 100% energy with projected energy mix by 2050. Renewable energy is generally defined as energy that is collected from resources which are naturally replenished on a human timescale, such as sunlight, wind, rain, tides, waves and geothermal heat.

Renewable energy often provides energy in some important areas such as electricity generation, heating/cooling, transportation and industrial purposes. Globally, investment in renewable technologies amounted to more than US$214billion in 2013 with countries like China and US investing tremendously in wind, hydro, solar and biofuels. Over 30 countries already have renewable energy contributing more than 20 per cent of energy supply.

At least two nations, Iceland and Norway, generate all their electricity using renewable energy. Several other conscious countries have set a target to realize 100 per cent renewable power in the future. Denmark and Netherlands have already committed to reach 100 per cent by 2050.

In Africa, Tanzania’s Scaling-Up Renewable Energy Program is giving extraordinary attention to raising power from renewable energy which will be accessed by over 75% of Tanzania’s residents by 2035. This is in line with the UN Sustainable Energy for All Initiative and the Post 2015 Agenda for Sustainable Development.

Following the SDGs, in late 2015, the Nigerian Electricity Regulatory Commission (NERC) approved a new regulation to encourage renewable power investments in a bid to generate 2000mw of clean energy by 2020. The new law, “feed-in tariff regulations for renewable energy sourced electricity in Nigeria”, requires electric-

ity distribution companies (DISCOs) in the country to source 50% of the electricity from renewable such as biomass, small hydro, wind and solar energy. NERC projected that around 50% (1000mw) of the targeted renewable electricity is expected to be achieved by 2018.

Shortly, after the privatization of Nigeria’s electricity system, energy supply in the country has been insufficient in quantity, quality and comes at an exorbitant rate. It is only in Nigeria that energy providers can fix, increase rates and still refuse to supply the required energy without caution. Also, it is only in Nigeria that government can allow businessmen to collect rents and rates without commensurate service delivery.

There is a need for the Federal Government to look at existing policies on renewable energy in order to boost its power generating capacity across board. In as much as the energy issue may affect all the SDGs #7, #11 and #13 should encourage Nigerian government to pursue a responsible energy mix towards solving its electricity problems.

Renewable energy is exhaustible, clean and have longer term benefits. We can be sure of good health, sustainable communities, clean water, responsible production and sustainable environment. The mix of energy will enhance sustainability, lower costs, reduce pollution, improve wellbeing make the world a better place.

According to Solutions Project, Nigeria can transition to 100% energy with projected energy mix by 2050. The Solutions Project is an organization first conceived in 2011 by prominent figures in science, business and the entertainment media with the goal of utilizing the combined efforts of individuals in the fields of science, business and culture to accelerate the transition to 100% renewable energy use in the

United States It said in its recent report that Nigeria will need to tap into wind, water and solar (WWS) for all purposes including electricity generation, transportation and manufacturing. It is estimated that onshore wind will contribute about 20%, hydroelectric 0.8%, wave energy 0.1%, solar 79.1%. Nigeria will save up to 36% of the cost incurred in deploying fossil fuels while improving efficiency and conservation of energy in the long run. The renewable energy transition can generate up to 600,000 jobs with over 25,000 in operations and about 300,000 in construction jobs alone.

The best news is that over 400,000 lives will be saved from air pollution every year and health expenses of over $2,700billion will be saved by the citizens being 38.3% of its GDP. For this mix of energy to be deployed to attain 100% target in 2050, it requires an insignificant percentage of land of about two percent of the entire 927,000sq.km.

Nigeria must follow-up on the landmark regulation which mandated electricity distribution companies to acquire a minimum percentage of electricity from renewable energy sources.

The Nigerian Electricity Regulation Commission required Discos to source at least 50% of their total procurement from renewable energy.

SkyPower and FAS Energy signed series of agreements to setup 3GW of solar power across the country. There are other Independent Power Projects (IPPs) which are focused on tapping into renewable sources. Nigeria must pursue similar sustainable utility-scale power projects to overcome its current energy crises. 100% renewable is possible and it must begin now. Let us break free from fossil fuel. *Emeka Ulor is an environmental activist and a digital media purveyor

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POWER

FG suspends Enugu Disco over infraction

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he Federal Government has announced the suspension of Enugu Electricity Distribution Company (EEDC) over infractions on Market Participation Agreement.

The suspension was contained in the Transmission Company of Nigeria (TCN) Market Operator Order No: TCN/ISO/ MO/2019/002, dated June 24, 2019, which was signed by Engr. E.A. EJE, of the Market Operator.

In the Order, which was made available to newsmen in Abuja, the TCN stated that the EEDC failed to maintain a security cover in respect of Section 15.3.2 of the Market Rules, thereby breaching Section 45.3.1(d) of the Market Rules.

“Based on Markets Rules 45.3.9, 45.3.12 and 45.3.13, the Market Operator hereby orders as follows: “That Enugu Electricity Distribution Company is hereby suspended from Market Operator Administered Markets.

The restriction of Enugu Electricity Distribution Company intake from the grid through a Disconnection Order to the Transmission Service Provider to disconnect some facilities of Enugu Electricity Distribution Company until the Event of Default stated in NIISO/2019/002 is reme-

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died,” it stated.

Giving insights into what led to the suspension, it was explained that the Independent System Operator, on behalf of the Market Operator, entered into a Market Participation Agreement with Enugu Electricity Distribution Plc (EEDC) on the 23rd of February, 2015.

In the signed Market Participation Agreement, EEDC was said to have agreed to at all times be compliant with the provisions of Clause 3.2 which states that participant shall

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in accordance with the provisions of the Market Rules, Grid Code, Metering Code and the Market Procedures be compliant at all times, particularly by: “Providing metering information in a timely manner and in the approved format in accordance with the Metering Code and the market procedures.

Security Deposit when so required of an amount established by Market Operator to serve as a form of guarantee of payment for all amounts due from the Participant to the Market Operator.

Settling in a timely manner any payment due “EEDC failed to maintain a security cover in respect of Section 15.3.2 of the Market Rules, thereby breaching Section 45.3.1(d) of the Market Rules which is reproduced below: 45.3.1 This Rule 45.3 shall apply to any Participant in respect of which any of the following Events of Default have occurred if: “(d) the Participant fails to renew the Security Cover required from each Participant under these Rules within the time specified in that regard by the Market Operator” it added.

POWER

NERC sets rules on electricity tariffs

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he Nigerian Electricity Regulatory Commission (NERC) has requested that all the electricity distribution companies (Discos) submit Performance Improvement Plans before granting new electricity rates.

The Regulatory body in a document titled Performance improvement plan guideline explained that its demand is in line with the intentions of the Power Sector Recovery Programme (PSRP) Nigeria initiated with the World Bank.

It stated that in pursuit of the PSRP, “the Commission is implementing a more robust tariff review process aiming at improving the performance of the Nigerian Electricity Supply Industry (NESI).

“The process will involve a review of the application of the capital expenditure allowances in the MYTO (Multi Year Tariff Order) model for compliance with

Performance Improvement Plans (PIPs) to be prepared by the distribution companies (Discos) and approved by the commission.”

The implementation of the Performance Improvement Plan will be strictly monitored by the Commission.

On eliminating tariff shortfalls, NERC said the future tariff review will prioritise expenditure by the Discos and reflect changes in the operational environment that have occurred since the last tariff review.

“It is noteworthy that one of the overarching objectives of the PSRP is the elimination of tariff shortfalls and the enforcement of market obligations.

“The PIP developed by Discos shall cover the period 2020 – 2024 tariff period but subject to the contractual provisions of the performance agreements executed between the core investors and the Bureau of Public

Enterprises in respect of the allowances for capital and operating expenditure in the remaining term of the agreement, read part of the document.

The document further stated that the approval of the PIPs by NER will then form the basis of prioritising and monitoring the capital investment initiatives of the Discos with revenue adjustment for non-implemented projects.

According to the document: “The approved PIPs will also be the basis for the defining performance standards/KPIs for the next five-year tariff period by the commission with emphasis on improvement in energy throughput and delivery by Discos, reduction in aggregate technical/commercial losses and an overall improvement in service delivery to customers.”

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SPECIAL REPORT

Africa E&P Summit: Concerns on ESG risks greets rising E&P prospects in Africa Peace Obi Stakeholders and participants at the 2019 Africa E&P Summit have called on investors in the global oil and gas industry whose exploration activities are considered detrimental to the environment to adopt efficient and safe E&P operations that will lead to a reduced negative impact on the environment.

The summit which held between 22 and 23 of May at Savoy Place in London had upstream industry leaders, experts in geosciences, finance, stakeholders from different countries in attendance, deliberating on a number of issues around E&P operations harped on the need for investors in the extractive industry to pay attention to environmental, social and governance (ESG) risks.

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Acknowledging the rising exploration prospects in Africa, discussants said investor in the global oil and gas industry must take cognizance of the looming climate change and adopt best practices in their exploration activities as well as encourage both economic and human capital development in the areas of operation.

Stressing that Africa is strategically endowed with great potentials, the Chief Operating Officer, Upstream, Oando Energy Resources, Dr Alex Ainojie Irune, enthused that the continent has always been an interesting investment attraction for oil and gas and other businesses. Adding that business prospects in this part of the world are generating so much interest, which he said is good for the continent.

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Collaborating Irune’s opinion on Africa as an attractive investment destination, the Executive Director, Operations, Seplat Petroleum, Effiong Okon said that “Africa is home to some of the world’s growing economies and lots of economies with double digits growth numbers. There is so much potential in Africa. If you look at the global oil and gas reserves, about 7.5 to 8 per cent of it sits in Africa. In the last six to seven years, the biggest oil discoveries have been out of Africa. That tells you the sort of huge potential that still exists in Africa.

Calling on the governments and investors in Africa to aim at a balanced and mutually beneficial deal in tapping into the opportunities in these countries, the Vice President, ExxonMobil (Africa), Pam

SPECIAL REPORT Darwin said that companies beyond geology must balance a range of challenges.

She said investors should accommodate and deal with such issues that affect local stakeholders, politics, and commercial needs in their investment plans.

She urged investors to pay attention to what she described as three essential ‘Es’: Energy, Education and Empowerment for women. Stressing that giving work and contracts to women allows communities to retain cash, improve prosperity. “It’s good for business, it’s good for communities – and our employees are from those communities,” Darwin said.

Also speaking, the Vice President, Exploration (Africa), BP Jasper Peijs, said, “Companies must help provide power to people, but do this in responsible ways.

Good relations with communities will go some way to aiding production plans, although these must be backed up by responsive governments. Disclosing that production in the continent was around 8 million bpd of oil, down from 10 million bpd a decade ago, Peijs said, “Half of this is related to civil unrest in Libya, while the other half has come as a lack of investment. In Angola, we’ve got two billion barrels of discovered resource that have not progressed yet, but the new president has transformed the country’s approach, putting a new petroleum code in play.”

Continuing he said, “There are plenty of opportunities available at the right terms, and there is a desire to work together. “Four years ago we were only in four countries in Africa: Angola, Egypt, Libya and Algeria. In the past three or four years, we have added six countries to that.” Life improves as energy is consumed.”

The Publisher, Orient Energy Review Magazine, Mrs. Nneka Ezeemo reiterated the fact that Africa is a market with quite a lot of potential that has yet to be fully tapped, she noted that the continent . must pay attention to. According to her, “The conference discussion touched on some of these issues like environment, society and governance driven investment, which has a way of promoting the development of the host communities and improve the reputation of the Operators. That is an important takeaway!

Speaking on the role of Orient Energy Review Magazine as a Local Continent

voice in Nigeria and Africa, she said, “We found out that the issue of development in Africa is something a well crafted local content policy can address.” Stating that while doubt and uncertainty greeted the introduction of the local content policy in the Nigerian oil and gas industry in 2010 when the government of Nigeria signed her NOGICD Act into law, Orient Energy Review magazine – an energy publication took up the responsibility to follow up on the Act implementation. According to the publisher, “As at the time, we started publishing in 2012, there was a lot of uncertainties and doubt on the effectiveness of this policy in Nigeria oil and gas industry.

It was a big issue and so, we decided that we are going to lend our voice to local content policy implementation in Africa, particularly to Nigeria where we publish from.

Since then till now, we have remained consistent on the journey. And as far as the local content policy is concerned, I can say a lot of progress is being made not just in Nigeria, but across Africa.

“So, being on this journey opens us up to keep reviewing the challenges as well as the successes. Actually, there are a lot of positive things to talk about in the local content policy implementation and achievements in Nigeria and other parts of Africa,” Ezeemo said.

Collaborating Irune’s opinion on Africa as an attractive investment destination, the Executive Director, Operations, Effiong Okon said that “Africa is home to some of the world’s growing economies and lots of economies with double digits growth numbers.

There is so much potential in Africa. If you look at the global oil and gas reserves, about 7.5 to 8 per cent of it sits in Africa.

ORIENT ENERGY REVIEW Vol.9 No. 04

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INTERVIEW

‘Shell’s local content compliance, achievement unrivaled’ The General Manager, External Relations, Shell Exploration Nigeria, Mr Igo Weli speaks on a number of topical issued in the oil and gas industry, including Nigerian Content agitations, Shell’s compliance and achievements. He spoke to Orient Energy Review Editor, Peace Obi.

How would rate Shell’s commitment to the Nigerian content policy?

Shell: For us as Shell community in Nigeria, it is a deliberate objective to lead in the Nigerian content development. That is something we really want to do and I am happy and proud to say that over the years there have been lots of recognition. We have won several awards. We have broken new grounds in the Nigerian content space and I believe that if you really look at it over the years, that objective has been met.

We have done a lot of capacity building – in-country capacity building support. I can recall lots of Nigerian entities we have supported to acquire assets in the industry

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which is very key when you talk about retaining the value generated in the industry.

I remember some companies that were supported to acquire their own helicopters; some, their own tools and many more.

So, I think it’s something we have really done very well. For Nigerian content itself, we have a structure around it. There are six focused areas: we have indigenous asset acquisition, human capital development, the infrastructure side, we have supplier development, research and development. So, we have clear programmes which we keep working on to actually deliver as much Nigerian content as possible.

One other key area is contract awarded to Nigerian companies. And like we said,

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last year 92% of the contracts we awarded went to Nigerian companies and the value of those contracts was about $1.3 billion, which is quite a lot.

What stands you out from other IOCs who are also making some laudable efforts?

First of all, in terms of human capacity, we are top in the industry. The chairman of Shell community in Nigeria is a Nigerian. We have the MD of SNEPCo, a Nigerian, the MD of SNG, is also a Nigerian. I am sure we are the only major IOC in this country that has Nigerians occupying these management cadres. That’s significant and I think that’s really very important. It sends a very strong message about the fact that we

INTERVIEW

It’s not about Shell, it’s about all of us. Looking at it holistically as a Nigerian, we have about 180 million or more people. Unemployment is high and we are looking at how Nigerian content can be a key lever for solving the unemployment problem and then developmental problems we have. really want to lead in this space.

We discovered that most of the Nigerian local companies have funding as one big challenge. So, we set up Shell Contractors Financing Scheme, and as contained in the briefing note, over $1.12 billion worth of contracts have been awarded to Nigerian companies since it was set up till date. So, that’s also another aspect.

There is also the issue of supplier development. I remember we set up what we called, “Global Nigerian Program” which was a deliberate step we took to connect oil and gas experts of Nigerian origin all over the world with indigenous oil and gas service companies, to help build their capacity and also try to encourage them to forge partnerships in order to advance the Nigerian content objectives of the country.

That’s also one of the steps amongst many others.

Certainly, some grounds have been covered, yet a lot more needs to be done, what can be done to further improve local content message spread and the attainment of this vital goal for the benefit of Nigeria and for the Nigerian people?

I think we can only generate as much

Nigerian content as the business can carry.

A lot of people and entities have built capacities but then if you don’t have enough opportunities to sustain and grow that capacity, you will actually lose it. I think the industry can grow more than it is doing today. We need more projects, more activities which is what those companies need to actually sustain and grow the capacity they have built. So, I believe this is where the government, NNPC, stakeholders, investors, everybody has to come together to say how they can unlock all those new projects.

Looking at the opportunity funnel, there are a lot of projects but the issue is how can we get them to take FID on them? How can we quickly start execution because that is when the capacity building will really make a lot of sense?

So, if one sets up a company today, get the best hands, get equipment and gets a job once in two years, there is going to be a problem. But if there is a steady flow of opportunities then, you can actually build and sustain capacity. The oil and gas industry is really critical to our economy because like we said, about 90% of export income comes from that sector and about 70% of the money we budget every year as a country also comes from that sector.

So, the sector can actually be a real pivot for growth and development if it is operating at the highest level possible. The key thing we need to focus on is to keep rolling out more projects from that same industry because the more projects we do, the more Nigerian content we can get, the more jobs we can create means more opportunities for everybody.

velopment in-country. So it’s not about one community, it’s about all of us. This is what we need to do together as a country and as a people.

Technology is the future of oil and gas, especially in the deepwater activities, how ready do you think Nigerian oil and gas industry is for this?

I am happy to say again that Shell actually pioneered the deepwater business in Nigeria with the Bonga, which started production in 2005. That first generation of Nigerian deepwater oil and gas experts, Shell can actually take a lot of credits for bringing that to be. Having said that, one belief I have when it comes to capacity is that we have adequate qualified Nigerian human capital.

I believe in this industry! Some might not be in Nigeria today, they might be in other parts of the world but if the opportunity is right, they are willing to come home and play, that’s my belief. I think the key thing for me is the opportunity for them to come home. I know a lot of oil and gas experts who are Nigerians outside the country who tell me every time we meet that if they see the right opportunity they will come home.

These guys are working with the best and the newest technology. They are doing very well in the best companies all over the world. Because the industry is a global one, it’s not country specific, if we can have the right opportunity; if we can have a situation where lots of new projects that are actually huge and big enough to provide enough opportunity to create Nigerian content value – because that is what we need. All those companies who are building capacity and all that, they are going to bring in the needed Nigerian oil and gas experts and in some cases where we will need a few other foreigners to support us and also bring in the needed technology to create that value and develop more Nigerian content. So, the important thing is the activities to sustain and grow the capacity built.

Increasing Nigerian Content in this industry and beyond is at the heart of federal government’s drive Nigeria’s industrialisation, what stands as a major challenge(s) in your support of this vision?

It’s not about Shell, it’s about all of us.

Looking at it holistically as a Nigerian, we have about 180 million or more people.

Unemployment is high and we are looking Could you put a figure around your local at how Nigerian content can be a key lever content percentage expectation on Bonga for solving the unemployment problem and South West? then developmental problems we have. That Our expectation is that we should be is why I put forward the idea that we need above 70%. If you notice, Egina has delivas many projects as we can, as many activ- ered about 70% and our objective is to beat ities as possible because that’s the only way that. That is what I can say for now. we can sustain and grow capacity building and also create more jobs, create more opportunities and then contribute more to deORIENT 29 ORIENT ENERGY ENERGY REVIEW REVIEW Vol.9 Vol.9 No. No. 04 04 29

INTERVIEW

Onafowokan: Local Content policy boosted our visibility in oil and gas industry George Onafowokan is the Managing Director/CEO of Coleman Technical Industries Limited (Coleman), manufacturers of electrical wires and cables through years of hard work, integrity and tenacity have metamorphosed from a small manufacturing firm in Ikotun area of Lagos State to being Africa’s pride in cable and wire manufacturing in Africa with ultra-modern factories of 200,000 square meters both at Arepo and Sagamu factories, installed production capacity to process 60,000 metric tons of Copper and 40,000 metric tons of Aluminum per annum.

In this interview with Peace Obi, Onafowokan said Coleman’s visibility in the nation’s oil and gas industry has greatly been aided by the NOGICD Act implementation in the sector.

Could you give us a peep into your background?

My name is George Olufowokomi, MD/ CEO Coleman Wires and Cables. I am the current Chairman of the Electrical and Electronic Sector of the Manufacturers’ Association of Nigeria (MAN). I am an accountant by profession. I obtained a combined Bachelor degree in Accounting and Finance from Manchester Metropolitan University, Manchester; Masters in Management and Information System

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(Combined) from the University of Salford, UK. I started my career with Packard Bell, UK as a Field Manager where I excelled in Sales and Marketing as well as in Customer Relations. I left Packard to PC World UK as Business Accounts Manager and later I joined Cem International UK Ltd as its pioneer Managing Director. In 2002, I left Uk to Nigeria to lead Coleman team in restructuring the company into becoming Africa’s pride in cable and wire

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production.

Can you share a little of what Coleman’s beginning was like and the journey to its present state?

Actually, we are a company of humble beginning. We started off as a micro small company with one or two machines. And within the last 10 to 15 years, we grew to being the largest in the country. The beginning was very, very humble. It was a very small team, we literally existed

INTERVIEW in the last two to three years. Also, apart from being visible, it has enabled us to start enjoying the benefit of oil and gas contracts or vendorship. In the last two years, NCDMB support has been tremendous and that is what has encouraged.

sometimes on day to day basis but we had a long term vision.

What did you bring on the table that brought the transformation in Coleman today?

Leadership is about focus, discipline and ability to develop both short and long term vision of the business and strictly follow your vision. Within my first

year, I proposed a ten-year vision for the company and by the seventh year, we had already achieved the biggest company in the country and in West Africa.

So, as long as there is a well-articulated vision, discipline, sustained character of integrity, a good team. For us at Coleman, we are very proud of our Nigerianess! We are very proud of our Nigerian team and we have groomed this team to become a world-class company and able to deliver world-class products and services.

In recent times, your presence in the

In recent times, we have worked with Shell in one of its community power projects. We have also worked with Agip on power project for installation. Presently, we are working on the refining project of the NLNG; we prequalified for some of their jobs.

And we have also worked directly with NLNG on their projects.

Nigerian oil and gas industry has become pronounced, getting to this level, what was the journey like?

It has been a long process rooted in hard work, innovation and determination. We have been around the oil and gas industry for about eight years now. And we have remained committed to doing the best in what we do both here and elsewhere. But in the last two years, Coleman has witnessed improved recognition, acceptance amongst industry players, as well as active participation as an indigenous manufacturing firm in the oil and gas sector. It is gladdening to realize how much confidence the industry repose on us.

Today, Coleman Wire is highly regarded and trusted to possess the quality and capacity to handle various projects in the Nigerian oil and gas industry. And we can’t appreciate the management of the Nigerian Content Development and Monitoring Board (NCDMB) under the leadership of Engr. Simbi Wabote enough for their support. Nigerian industries have seen a resurgent in participating more and having the feeling that they are now being recognized to be able to gain some share of the oil and gas industry. That is what has encouraged us to be visible in this industry

What areas in the oil and gas are your services or products needed?

Our products are mainly used by the contractors because technically, no job that can be done without cable. And whether it is in an FPSO which is a large scale project, or the fabrication of top-site, or in the installation of power projects, you need power in every sector of the economy. We supply the cables that run within the system. So, our products are needed for the completion of all modalities of the oil and gas projects.

What are some of the big projects Coleman Cable has participated in recent times?

In recent times, we have worked with Shell in one of its community power projects. We have also worked with Agip on power project for installation. Presently, we are working on the refining project of the NLNG; we prequalified for some of their jobs. And we have also worked directly with NLNG on their projects. Just like I said earlier, we are facilitators of the power sector in the oil and gas. Our job is to make sure we produce cable locally for all their marine and subsea projects.

Coleman is renowned for its investment research and innovation leading to the accomplishment of many firsts, what is in the offing?

Currently, we are working on a project that is new to the local industry which is ESP submarine cables for the pumps.

These are things you never would have thought could be made in Nigeria. So, we have quite a number of products that are first for Nigeria and first for West Africa.

We will continue to lead and in some cases invest in areas where nobody wants to invest because it is just not seen as something that can be done locally.

What is the percentage of local content in your products?

The percentage of local content in our products grows continuously. We have gone from 80 to 85 per cent local content in our products due to backward integration in the last three years. Copper is now

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INTERVIEW available, locally which accounts for 80 per cent of our product and it is still growing as about three additional manufacturers come on stream that will make us locally sufficient for copper. Aluminium is also coming up, it will be produced locally this year and that will improve local content to about 95 per cent. That has greatly changed the dynamics of cable production in Nigeria, which I would say started about more than 55 years ago. In fact, we are proud to say that the local content in our products is more than 80 per cent.

What are some of the firsts that stand you out here in Nigeria and Africa as a continent?

Since 2014, we opened the first high voltage factory in Nigeria which made Nigeria a pioneer manufacturer of XLPE high voltage cable which is also listed quite well on the NOGICD Act. Not only that, Nigeria became the sixth country in the continent to produce high voltage cable.

Today, we are the pioneer manufacturers of data cable, CAT6 and instrumentation-shielded cables in-country. Also in West Africa, we are the pioneer manufacturers of COAXIAL TV/Video cable.

We have also completed plans to launch yet another first come next year with the production of rubber-insulated marine cable. There are quite a number of firsts for us and for the industry. The investment for those pioneering projects was quite heavy, making our entrance not so easy, but we eventually fought our way through this entrance and we have been able to deliver them in-country.

Without sentiment, are Coleman’s cables and wires truly superior to foreign ones?

Without sentiment, yes, they are. The major reason is that the standards that are maintained in Nigeria are a lot higher.

One of the reasons we stand out as a Nigerian cable company is that we are actually the only company in Nigeria that any Nigerian can beat his/her chest today and say that made in Nigeria wires and cables are better than the foreign ones. And our secret is that we will never deviate from the standards; we will never deviate from quality. Quality is our watchword.

So, you won’t hear such things like “fire gut my house and it was caused by the cables made by Coleman.” It has never happened and will not happen with Coleman Cables because ours of superior

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quality, we also have fire retardancy in all our cable insulation.

We don’t deviate from the standard. If the stipulated standard in Nigeria says that the coil of cable should be 100 meters, you won’t find a Coleman cable that is even 99 meters. We can guarantee you that. So, we have the right volume, right capacity, the pricing is right and the team is right.

Coleman is committed in leading cable and wire market in Africa and beyond. We got it right from the onset, and will forever beat every foreigner competing with us locally.

How affordable are your cables?

Our prices are very competitive and the best you can get in-country.

In keeping to standard, what is the highest certification you have attained?

Today, we are one of the first to with Certificate No 8 to upgrade within ISO with BV to upgrade our ISO quality

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Today, we are one of the first to with Certificate No 8 to upgrade within ISO with BV to upgrade our ISO quality assurance standards on both our systems, on production and even on sales, we have upgraded to ISO 9001:2015 which is a very tough task because it takes you over a year processing and training to get this certification done and upgrade. We were previously in 9001:2008.

of local content. You must commend the team, the tenacity of the leadership of the team.

In this year’s NOGOF, we see a lot of opportunities literally glaring at us and for us at Coleman, we are strategically ready to tap into these opportunities. As a matter of fact, we never had it this way, especially the Compendium of Opportunities in the Nigerian oil and gas produced by the NCDMB. There is no reason not to invest in Nigeria. These are things that were not done before. Just like the immediate past Minister of Petroleum Resources, Dr Ibe Kachikwu said, OTC is what everyone looked out for but today, we now have a Nigerian version of OTC (NOGOF). Whilst OTC presents opportunities for the world, it does not necessarily focus on Nigeria. But with NOGOF, we learn how to solve our problems, how to innovate, how to solve issues around finance and investment.

This

(NOGOF) is for Nigeria and that is the difference! When it is Nigerian-led for the Nigerian people, we will get it right.

We just need to stop being driven by this mentality that we cannot do better than the foreign tutors. A teacher can teach you, but it does not mean you cannot do better than your teacher in future. That is the difference; we should see what NCDMB is doing today in that light.

A word of advice for upcoming investors in this line of business We encourage more businesses to remain determined. We encourage them to strive to make growth happen in Nigeria. We need it to happen so that the economy can see the benefit of it.

assurance standards on both our systems, on production and even on sales, we have upgraded to ISO 9001:2015 which is a very tough task because it takes you over a year processing and training to get this certification done and upgrade. We were previously in 9001:2008. We are still going to actually improve on that. The next one is the environmental one and that of the HSC one. We are attaining certification in our industry that differentiates us.

The 2019 NOGOF focused on maximizing opportunities in the oil and gas for the benefit of the people and the economy, how does Coleman hope achieve this?

NOGOF is a laudable event.

NCDMB has always been pushing the barriers and the limits when it comes to achieving a higher level

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INTERVIEW

B2 Oil and Gas Limited

-Project 100 has given us edge over others

Adewoye Tukunbo Adebayo is the Managing Director, B2 Oil and Gas Company Limited – one of the beneficiaries of the Project 100 launched by the Ministry of Petroleum Resources as part of the government’s efforts at strengthening local and indigenous companies’ capacities and participation in the nation’s oil and gas industry.

In this interview with the OER Publisher, Nneka Ezeemo during the just concluded Global Petroleum Show (GPS) in Calgary where a number of Project 100 companies participated through the Project 100 sponsorship programmes for training and events, Adeboyo said that the training, knowledge, exposure and other assistance the company has benefited through the scheme has brought enormous transformation thus, giving it an edge over others. Excerpt: 34

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INTERVIEW my Engineers is attending training in Port Harcourt.

When invited for training, how do you cope with the cost implication?

Actually, the Board sponsors it. They pay for the courses as well as the accommodation while we support ourselves with the logistics. An example of it is my coming to Calgary for this conference. NCDMB paid for our ticket.

What other assistance do you get aside from the training?

It comes in different ways like before we left Nigeria, they made an arrangement that assisted us to collaborate with others. For me, I got about three contractors and B2B companies. Interestingly, I was able to meet with one of them and it was successful. I can say that something nice is coming out of this Project.

Let’s get to know more about your company’s activities B2 Oil and Gas Company Limited is an indigenous company. We are into waste management and production facilities.

As a pioneer beneficiary, what has the experience been since after the launch of Project 100?

Well, Project 100 is new, yet the Nigerian Content Development and Monitoring Board has been doing a lot since after the inauguration in January this year. The Board has remained in touch with us and has invited us to different training programmes, meetings and events like NOGOF, even this one here in Canada. In fact, my company’s participation at this year’s NOGOF was an eye opener as it gave us a lot of exposure and has actually given us some edge over certain things. Also, as we speak, one of

Do you foresee any problem with this Project?

Not really because the Board is taking the monitoring of this Project very seriously.

Believe me, it is not business as usual. Certainly, this is not going to be one of those ‘start and dump’ projects by the government. I am confident that it will remain a success because of the NCDMB’s Executive Secretary, Engr. Wabote and his team’s passion and determination towards the Project.

With him, I see the sincerity of purpose and transparency in what they are doing. So, I do not envisage any challenge.

What is your advice for indigenous companies that didn’t succeed in the first batch?

When opportunity comes, utilize it. For the Project 100 beneficiaries, nobody knew it is going to be like this today. We never thought we could be here for the GPS in Calgary this year. I never imagined that some of my staff could benefit from the training programmes neither did I expect that the interventions were going to be this rapid.

So, when you see opportunities utilize it as long as it doesn’t require you to bring money to buy favour. Just do your due diligence, if found to be okay, then go for it.

There is no harm in trying. But, when you

find a situation someone demands for money, all sort of things, just be wary of that process. In this Project 100, nothing like that happened. From what we heard, there is going to be a second batch. So, it could be you! Therefore, do all your documentation and pay all the regulatory fees. It is very important. Whatever you do, please do not cut corners.

Given the knowledge at your disposal, where do you see B2 Oil and Gas in the next five years?

I see B2 Oil and Gas Limited playing in the global space. That is our vision while fulfilling the purpose of Project 100 at the same time.

For the Project 100 beneficiaries, nobody knew it is going to be like this today. We never thought we could be here for the GPS in Calgary this year. I never imagined that some of my staff could benefit from the training programmes neither did I expect that the interventions were going to be this rapid.

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INTERVIEW

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How the industry needs to tackle increasing competition across industries for STEM talent and change perceptions as we look to attract a digitally native workforce

How the industry is committed to being a leading part of the solution to environmental concerns

How new partnerships are emerging from a shifts in the global energy map, capital flows and industrial convergence

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ORIENT ENERGY REVIEW Vol.9 No. 04

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SPECIAL REPORT

PETAN made Nigeria Proud at 2019 OTC Stakeholders in the world’s oil and gas industry were in Houston, Texas between May 6th to 9t, for this year’s Offshore Technology Conference, OTC. Industry players from Nigeria were not left out of the event being one of the largest producers of the oil and gas. Senator Gershom Bassey was also there at the event where he had this chats with the media. Excerpt: Sir, OTC 2019 has just come to a close, what is your take on the event?

PETAN did a very good job representing Nigeria as oil and gas companies. The events organised by PETAN was very interesting for me. The conference had its usual flare with diverse exhibitions talks and various presentations. It was quite enriching. The Nigerian presentation was a bit average but I am sure that we can do better. As for the whole conference, I think attendance may have been down but what was on display was rich. I think there was a rich menu for those who want to plug in.

So, I think the organisers did a good job.

One of the things that stand out in the industry is technology, where do you see Nigeria in the scale of things?

Technology is there, the world is a global village so technology is accessible to all. We really don’t need a conference like this in order to access technology. You may come here to be aware of technology but you don’t need to be here to access it, because the world is a global village.

I think one of the key reasons for people to come to this conference is the issue of networking - that is making contact with people from other countries and try to benchmark what we are doing in Nigeria with other countries like Brazil, the UK, Norway, Netherland, etc, just to see where we actually are and how to move forward.

Yes, technology is good, it is there but, networking I think is far more important.

So what will the legislators do to help us in that area of technology?

In terms of legislation, I hope you are

petroleum reform programme, it will send a signal to the outside world that Nigeria is ready for business.

The key issue is corporate governance or industry governance. If you addressed that then all these side issues like gas flaring will automatically be addressed. So what we are saying is that let’s get the entire framework for operating oil and gas in our country right. That framework will eliminate a lot of these issues whether it is gas flaring, subsidies – all those issues, once you cure the disease, the symptoms will fall away. So, let’s cure the disease and that is what the National Assembly is doing.

The disease is that we don’t have clarity in the governance of our Petroleum space and we need to create that clarity.

Some states sent representatives to the conference, do you think it worth it? aware that the PIGB was returned by our President, we had finished it several months ago, but he returned it due to some issues in it, the issues he pointed out has been accommodated and returned back to the President for his signature. We believe that very soon our President will sign the PIGB and that will send a signal to the rest of the world that Nigeria is ready for best practices in the oil and gas industry.

What investors are looking for in order to have the type of inputs that we deserve is the Petroleum corporate governance law.

We have huge reserves in oil and bigger reserves in gas and they are all under-exploited. Also, we haven’t achieved the number of projects that we deserve, so we believe that with the Presidential assent to the PIGB, which is one of four bills in the

I want to congratulate Cross River State and other States that have sent representatives to this conference. You see it is important that at the sub-national level, people understand what is really happening in the industry. We had hoped that our governor will be here but he was called up for another important event. But I know that he wanted to come and we expect that more states, especially oil-producing states should continue to attend this event because they too are key players in this industry. We are talking about resource control and devolution of power. It is important that the Governors understand the industry because tomorrow they may be the ones controlling the oil resources. So the governors and the people at the state level need to understand these issues.

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COVER

Second chance for Nigeria’s oil industry reforms President Muhammadu Buhari was on May 29, 2019, sworn in for a second term and he had vowed to continue with the majority of the initiatives he introduced on assumption of office in 2015.

Godspower Ike in this article tends to x-ray the Buhari administration, especially relating to its performance in its first four years. It also analysed developments in the sector while projections and suggestions were made on ways to address the challenges confronting the sector.

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n its assumption of office in May 2015, Nigerians were full of hope that the administration of President Muhammadu Buhari would deliver on its promises for the economy, especially for the country’s energy sector, comprising oil and gas and power.

The administration had promised to undertake wide-ranging reforms in the energy sector of the country, removing bottlenecks to the growth and prosperity of the sector, eliminating corruption and promoting transparency among others.

Specifically, in its manifesto for the 2015 elections, the party of Muhammadu Buhari, the All Progressives Congress, APC, promised to undertake an urgent power audit of Nigeria’s energy needs, ensure that Nigeria meets all its power needs within the next 10 years; encourage power generation companies to build a new generation of power plants and extend national and regional power grid and gas pipelines to improve energy generation, transmission and distribution across the country.

The administration also promised to increase Nigeria’s refining capacity so that the country can shift more of its gas supply to domestic power stations to end erratic power supplies; expand the rural electrification programme and promote the use of independent ‘off-grid’ renewable energy schemes for isolated communities;

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COVER In the oil and gas sector, the administration promised to ensure the passing of a workable Petroleum Industry Bill; restructure the NNPC into more efficient, commercially-driven units, strip it of its regulatory powers and enable it to tap into the international capital market.

and encourage development of sustainable renewable energy taking account of regional factor endowments.

In the oil and gas sector, the administration promised to ensure the passing of a workable Petroleum Industry Bill; restructure the NNPC into more efficient, commercially-driven units, strip it of its regulatory powers and enable it to tap into the international capital market.

It promised to strictly implement the gas master plan and legislation to end flaring by gathering, processing and transmitting all of the country’s associated and non-associated gas for domestic use such as power generation, production of fertilizers and petrochemical products.

It also promised to fully develop the petroleum sector’s capacity to absorb more of the nation’s new graduates in the labour market, ensuring that the sector produces more home-grown world-class engineers and scientists; establish an independent oil and gas regulatory authority; review the structure of Joint Venture Companies and ensure transparent tendering process managed at arms-length from federal ministers.

The administration also vowed to establish modern oil refineries to increase the flow of oil and gas products to domestic consumers; use market mechanisms to shift the gas supply towards domestic production to end power shortages and reduce dependency on imports; introduce strong local content legislation and create domestic supply chain; create favourable policy guidelines to encourage massive private sector participation in the establishment of petrochemical industries.

However, four years after, not much was achieved by the administration in both the power and oil and gas sectors. Specifically, the NNPC is yet to be commercially-driven, as it is still posting losses, while its activities are still shrouded in secrecy and lacking in transparency.

The gas master plan, which has metamorphosed into the National Gas Policy, is still a policy document and is yet to be implemented, as Nigeria’s gas consumption and utilization is still low, while gas flaring is still rampant in oil-producing communities.

The Nigerian oil and gas sector still ranks among the least employer of labour and job losses is rampant in the sector,

going by the absence of major oil and gas projects in the sector.

The country’s four refineries are still moribund and Nigeria is still a major importer of petroleum products, with the attendant loss of foreign exchange. Local content penetration is still low, though significant efforts are being made to boost indigenous participation in the industry; while the Petroleum Industry Bill was yet to be passed, with Buhari refusing to assent to one of the variants of the PIG, the Petroleum Industry Governance Bill.

In the power sector, a large majority of Nigerians are still grappling with epileptic power supply, as no single megawatts was added to the country’s power output.

Many rural areas in the country are still without electricity, while no significant effort was directed towards the deployment of renewable energy in electricity generation.

However, credit should be given to the administration especially for the fact that before its inception, the country was battling with fuel scarcity, subsidy fraud and declining crude oil prices.

The administration was able to address the issue of fuel scarcity, sanitized the subsidy regime, later eliminating it and replacing with under-recovery; while it still managed to grow the economy, salvaging it from recession, despite the low crude oil prices.

The immediate past Minister of State for Petroleum Resources, Dr Ibe Kachikwu, had disclosed that in the area of transparency in the petroleum sector, the country has done well, noting that since 2015, many of the government’s concepts have saved the country huge sums of money and encouraged open-door competition.

He added that various policies and programmes embarked upon by the administration, especially through its reforms, helped attracted investment of about $130 billion to the sector.

He said, “In terms of volume of oil produced, today, I can tell you, using the experience of the Department of Petroleum Resources. The DPR launched its database, which is covering a lot of fields.

We can actually tell you online, every minute, what is being produced. We have passed that stage. Metering is fine but once we capture this data, a level of metering is

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COVER already going on and we are capturing that on a day-to-day basis.

“I can say we are producing 2.3 million barrels, using the DPR data. What I like to do, however, is to interrogate the data. We just launched it about two months ago. We are tracking you from when you produce to when you put it in the tank to when you deliver it and to when it is discharged.

So in terms of transparency and what we produce, it is not an issue.”

Furthermore, when Buhari assumed power, Nigeria’s crude oil output was hovering around 800,000 barrels per day because of the militancy in the Niger Delta region and widespread vandalisation of oil and gas assets.

The fact that the country’s crude oil output currently stood at 2.3 million barrels was a pointer to the effort of the Buhari administration in tackling insurgency in the Niger Delta.

Specifically, the administration had brought down militancy to its barest minimum, and successfully engaged stakeholders in the Niger Delta region on the various areas of disagreement.

Also, after many years of inaction, the Nigerian National Petroleum Corporation, NNPC, and its partners in the Nigerian Liquefied Natural Gas, NLNG, have commenced the expansion of the NLNG facility, with steps currently ongoing for the commencement of the Train 7 project.

The administration addressed the Joint Venture, JV, cash call challenges that had served as an albatross on the country for many years, and which had affected the production of crude oil and gas.

The Buhari-led Federal Government’s resolution of the cash call arrears owed international oil companies helped removed a significant debt burden on the country and freed up resources for other developmental projects.

As the Muhammadu Buhari administration commences its second term, stakeholders are of the view that a lot still has to be done to move the energy sector forward. The stakeholders are calling for increased action and commitment on the part of the government and less of rhetoric.

Specifically, the immediate past president of the Nigerian Association for Petroleum Economists, NAPE Professor Omowumi Iledare, called for a change

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The Buhari-led Federal Government’s resolution of the cash call arrears owed international oil companies helped removed a significant debt burden on the country and freed up resources for other developmental projects.

of attitude of the government towards the sector, noting that the government’s attitude to the petroleum industry had impacted the industry negatively in the first four years.

He argued that the Buhari administration did not achieve much with the revenue accruing to it from the petroleum industry, while he commended the administration for tackling the opacity in petroleum products subsidy and addressing the issue of fuel scarcity.

He said, “Two things are critical to improve the fortunes of the energy sector and help the sector make money, and they are likely to favour the next term. First is the price of oil. I do not expect it to reach rock bottom again in the next four years.

“The other is production, which current reserves can sustain at 2.4 million barrel per day. Finally, global economic expan-

COVER

The Buhari-led Federal Government’s resolution of the cash call arrears owed international oil companies helped removed a significant debt burden on the country and freed up resources for other developmental projects.

sion demands an increase in oil consumption by about two per cent. The only snag is the governance of the sector and I want to hope he as the president will not be the Minister of Petroleum again.”

Iledare advised the Buhari administration to ensure the passage and signing into law of the PIB within the next four years, noting that this would instigate wide-ranging reforms in the petroleum industry that would block wastage and leakages of revenues and resources.

Speaking in the same vein, Engr.

Andrew Olotu, Chairman Petroleum Contractors’ Trade Section, PCTS, of the Lagos Chamber of Commerce and Industry (LCCI) called on the Federal Government to initiate policies that would discourage petroleum products import, boost crude oil export and promote energy access.

In particular, Olotu, who is also former Managing Director, Schlumberger Nigeria, said the government should hands off the downstream sector and go full throttle in dealing or encouraging the private sector to build refineries.

He said, “Let us go back to a twopronged attack. The government can encourage the private sector like Dangote is doing; we need more of that so that we will stop exporting crude oil completely and then start exporting refined products.

That will create job for all of us.

“If we have more of such refineries, unemployment would be cut by not less than 40 per cent. And it is not difficult. Let the government create an enabling environment for those who are producing crude oil to also have refineries. You cannot allow ExxonMobil, for instance, Chevron and Seplat to produce crude oil and then they are allowed to sell the same. It is a no, no!

“Every producer of crude oil should be encouraged to refine the crude oil, act on it and sell. The smaller producers of crude oil who cannot afford refineries can sell their crude oil to the big ones. That is the prong of the attack.

“Government should create an enabling environment to build refineries with the intention of stopping the export of crude oil.”

In the power sector, Olotu, who is also Chairman, Society of Petroleum Explorationists (SPE) Nigeria Council Board of Trustees (BoT), bemoaned the fact that there is too much emphasis on the grid system.

According to him, there is no reason why the government cannot step in to encourage small time power generator even at the domestic level.

He said, “Inverter is not the solution, because it only stores energy. Let there be a policy where solar panels are cheaply available. Solar panels are expensive today because only very few people are buying.

If government steps in, set up a solar panel import company, to work with the private sector and reduce the price, what that means is that, small-time users, just like we the consumers, with three or four batteries in our houses, can benefit.

“People using small generators would then be encouraged to buy and fix solar panels. And then, the government should now make it mandatory for commercial banks, through the Central Bank of Nigeria (CBN) to give loans for such investment. The loans should be given to the consumers.”

In her own submission, Ms Tengi George-Ikoli, Program Coordinator, Nigerian Natural Resource Chartered, NNRC, insisted that emphasis should be placed on reforms of the petroleum industry so that the country can reap the benefits from its oil and gas resources.

According to her, the country’s inability to finance its budget and service its debt which depends on proceeds from oil is due to the inability of the government to reform the sector for the general benefit of the masses.

From the foregoing, President Muhammadu Buhari had to utilize the second chance he is presented with, to deliver on all his promises for the energy sector, so that posterity would remember him favourably.

Delivering on the promises as contained in the party’s manifesto position the Nigerian energy sector to compete globally, allowing it to make a meaningful contribution to the growth and development of the Nigerian economy

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GHANAREPORT

Western Region open up for business Gilbert Boyefio, Accra

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hana’s regional minister for the Western Region of the country, Hon Kwabena Okyere Darko-Mensah, has flaunt some of the investment potentials of Ghana, including the rich natural and human resources in a bid to attract foreign investors to the country’s oil and gas sector.

According to him, Ghana is a stable democracy, and West Africa’s second largest economy and market. The country has access to over 3 million ECOWAS market; the third best destination for ease of doing business in Africa (World doing business report 2019), easy flight connections to Europe, Middle East, the Americas and Asia.

Speaking to investors and participants of the Global Petroleum Show Conference in Calgary Canada, Hon Darko-Mensah described the Western Region as Ghana’s oil and gas business hub. “The Western Region is one of Ghana’s bread basket and contribute 60% of the national GDP. Currently, all of Ghana’s offshore explorations are located within the region. It also abounds in other natural resources such as gold, manganese, bauxite and breathtaking tourist attraction sites,” the minister said

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Hon Darko-Mensah He explained further that Ghana’s oil and gas industry can boast of 5-7billion barrels of petroleum reserves. It is expected that crude oil production will increase from 196,089 barrels a day to 420,020 barrels a day by 2023, he said. The country’s major hydrocarbon basin has not been fully developed and it has a very transparent process for acquiring exploration blocks.

On investment incentives and guarantee, Hon Darkly-Mensah, pointed out at

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investors are guaranteed against expropriation, research and development expenditure deductibility, full repatriation of dividends and net profit, remittance of proceeds in the sale of investment, custom duty exemptions for machinery and parts, transfer of funds for servicing of foreign loans, relief from double taxation for foreign investors and locational incentives (tax rebates).

Opportunities for investors in the Western Region include supply in the upstream sector, LNG development opportunities, construction of pipelines and ancillary services. Priority sectors for investment in the region are energy, manufacturing, one district one factory, agriculture and agro processing, financial services, infrastructure, real estate, and tourism.

“The vision of the government of Ghana is to create an optimistic, self-confident, and building a prosperous nation through the creative exploitation of our human and natural resources, and operating within a democratic, open and fair society in which mutual trust and economic opportunities exists for all,” the minister said.

GHANAREPORT

Ghana exhibits at Global Petroleum Show

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hana has taken its interest in the Global Petroleum Show at Stampede Park, Calgary, Canada, to the next level by procuring a pavilion to showcase the huge oil and gas potential of the country for the first time following her last month successful outing in Offshore Technology Conference in Houston.

The Ghana pavilion was championed by the Petroleum Commission, the regulator of the upstream sector of the oil and gas industry of the country.

This move forms part of Ghana’s ambitious plans to attract foreign investments into the country’s oil and gas industry. The Conference also witnessed a high-powered delegation from Ghana led by the Ministry of Energy and included both private and public organizations such as the Ghana National Petroleum Corporation (GNPC), Western Regional Ministry, Ghana Gas, Royal Magma and Plus Petroleum. Other participating Officials came from the High Commission of Ghana to Canada, High Commission of Canada to Ghana, Canada Ghana Chamber of Commerce and the

Government of Alberta.

The delegation participated in both strategic and technical conferences, panel discussions, exhibition and business-to-business meetings.

Over 50,000 members of government, CEOs, decision makers and visitors visited the 51st Global Petroleum Show at Stampede Park. This year’s Show featured new additions including Pipeline Alley, the Passport Program in the Outdoor Zone and two separate conferences: the Strategic Conference and the Technical Conference.

Memorable visitors and speakers at the Ghana Pavilion includes Katerina Ioannou, Trade & Investment Officer working for Government of Alberta, Hon. Kwabena Okyere Darko Mensah, Western Region Minister, Mr. Egbert Faibilie, Ag CEO Ghana Petroleum Commission, Mr. Seth Osei-Agyen Director - General Administration Ministry of Energy, Jonathan Ane, President of Canada Ghana Chamber of Commerce and many others who conducted the official opening of the first Ghana Pavilion in Calgary by cutting the red tape,

other activities of the day included the tour of all the Ghana exhibition stands within the Pavilion.

Mr.Faibille delivered a keynote speech on “Investment Opportunities in Ghana” and enjoined investors coming into Ghana to align with the Petroleum Commission regulations. He participated in the Business Leader Panel discussion for International Ministers and Business Leaders, to discuss the Global Energy in a time of Transition.

Hon Kwabena Mensah, Western Region Minister delivered a keynote speech about the unique wealth of the Western Region of Ghana at the Global Market Series, noting that, the Western Region is the best place to cite oil and gas business if you are thinking of doing business in Ghana.

Ghana Delegates had the opportunity to embark upon institutional site tours and business-to-business private meeting.

Other highlights of the event were the opportunity to hear from Brett Wilson, Entrepreneur, Philanthropist and former CBC Dragon, share stories about his success, mistakes, and how to succeed in business without losing principals.

GHANAREPORT

Ghana’s First Oil Licensing Round: Ministry of Energy publishes final bidders’ list Peace Obi

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hana’s first oil and gas exploration licensing round which started in October last year is nearing conclusion as the country’s Ministry of Energy on Thursday published the final bidders’ list for the available oil blocks.

The Ministry in a circular signed by the Minister responsible for Petroleum, John Peter Amewu that has the list of participating bidders showed Tullow and ENI/ Vitol bidding for Block 3 while First E&P for Block 2.

The statement read, “Whereas subparagraph (i) of paragraph (b) of regulation

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17 of the Petroleum (Exploration and Production) (General) Regulations, 2018 (L.I. 2359) requires the Minister responsible for Petroleum to publish the list of participating bidders for exploration and production rights within the territory of Ghana.

“Now, therefore, I, Hon. John Peter Amewu, Minister responsible for Petroleum do give notice to the participating bidders as specified in the Schedule for 2018/2019 Petroleum Licensing Rounds bidders for exploration and production rights within the territory of Ghana.

The final bidders’ list which has only three companies competing for the available oil blocks emerged from the 14 companies that made it to the pre-qualification stage out of the 16 companies that

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originally applied for the oil blocks.

Ghana’s President, Nana Addo Dankwa Akufo-Addo launched the country’s first oil and gas exploration licensing round in October. Blocks 2, 3 and 4 were open for bidding, while deepwater blocks 5 and 6 were said to be allocated through direct negotiations.

The head of communications at the Ministry of Energy, Nana Damoah, said, “The objective of prequalification is to ensure that we only allow companies that have the financial muscle, technical competence and are willing to give us the best in terms of local content to move on to the next level.”

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WOMEN in Energy

Get right skills, carve a niche and rule your world – Ojemene tells women Ujunwa Ojemeni, a senior investment expert at All On, an energy impact investment company seeded by Shell holds a Masters Degree in International Development (Development Finance) from the University of Manchester amongst other professional and academic qualifications. Ujunwa is a clean energy expert with expertise in financial modelling, project financing, project development, and management operational and strategic governance, who has participated in key gas and power projects in Nigeria.

In this interview with the OER Editor, Peace Obi Ujunwa identified affordable decentralized energy systems as quick and reliable solutions to Nigeria’s power problem, while stressing that shattering the glass ceiling is a matter of women having the right skills, maximising opportunities, being professional and being part of the solution. Excerpt: 46

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WOMEN in Energy Tells us about yourself?

I am Ujunwa Ojemeni. I am a clean energy expert with expertise in developing and financing, clean energy projects and businesses as well as providing operational, strategic and governance support to these companies to help grow the sector and close the energy gap in Nigeria. I studied Banking and Finance at the University of Nigeria, Nsukka and obtained a Master’s degree in Development Finance from the University of Manchester, UK.

households, SMEs and help them to improve the overall well-being of people. So, connecting and improving the lives at the grassroots is actually the driving force for me. I studied International Development, specifically, Development Finance, and therefore development is something I am very passionate about even right from my childhood days. So, for me, this was really an opportunity to actually get my hands dirty in development for both financial return and social impact.

How long have you been in this industry?

I have been in the energy sector for over five years now. I was in project development for a while before actually moving into impact investment. While in project development, I developed various projects of various sizes, mostly in terms of doing the entire project planning, selecting equipment to use, raising the funding for these projects and reviewing all the agreements that needed to be reviewed before implementation. But currently, I work with project developers by structuring and providing them with appropriate financing for their businesses while providing them with the necessary strategic support.

The energy sector appears to be male-dominated, as a woman, how can more women be encouraged to be part of this sector?

In your project development portfolio, what kind of project did you start with it grid or off-grid?

Previously I developed both on-grid and off-grid energy projects. Presently, my focus is on supporting off-grid businesses and projects to light up Nigeria one household and SME at a time.

So, what inspired your movement into the off-grid energy sector?

It was in response to the country’s energy need. It was just the right time in terms of what the country needed and where the energy sector was going. I believe the future of energy will require a mix of both traditional large scale grid energy projects along with innovative off-grid decentralized solutions that are smaller scale, lower cost and quicker to market.

While we try to solve the challenges associated with the grid energy source in terms of gas supply, transmission, liquidity and all of that, I think that if we want a quick win and that quick win is to get light to households and SMEs, then it would be off-grid decentralized solutions.

Decentralized energy solutions are easier to deploy and can immediately light up

This is a topic I am passionate about. When I entered the energy industry, we were just two females in my team at that time.

But over time, things have improved – more women are coming into the sector.

However, if you look at the management of most companies, it is mostly dominated by men.

Overall, I believe there is a need for increased consciousness for improved diversity as well as to attract more women into the sector.

Another way to encourage more women to be part of the sector and the corporate world overall is for organizations to stop penalizing women for having children. Some women after going on maternity leave are denied promotion that same year because some people feel they did not work the entire year while others do not employ pregnant women or newly married women.

In other organizations, there is no provision for things as small as nursing rooms for women who are still nursing children – they either have to stop or find a stuffy storage room or somewhere else unpleasant to get privacy. We ORIENT ENERGY REVIEW Vol.9 No. 04

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WOMEN in Energy must do better. A third example is the flexible working myth. Some organizations do not make any provisions for this, while others do in principle but in reality, they are penalized through some other ways. We must institute policies and make provision for women to perform their various unique roles.

grandparents, parents and others when necessary as well as setting limits for work is crucial.

Secondly, knowing what is not acceptable to you and be very organized. I always plan my day with my to-do list at hand. My kids have their daily routines, meal schedules, etc. just to make life easier for us all.

In what specific ways do you intend to promote more active involvement of women in the energy sector?

I am working on a program to attract more women into the energy sector – African women in general. It’s called “African Women in Energy Development Initiative” (The AWEDI Network). It is the first Nigerian organization that is focusing on women across the energy value chain to offer a networking opportunity, professional development, mentorship, career sponsorship (acceleration) capacity building, leadership training for women at all stages of their energy careers and for female students at the secondary and tertiary levels.

The network will provide a platform for women to meet other professional women in the energy industry and to enhance their knowledge of issues facing the industry and skills required to succeed. Basically, our mission is to encourage and unite women in energy by offering a platform for their progress in the industry through career accelerators, mentors, professional development, training, and exposure. I expect it to have a significant impact in helping women to find their place in the sector.

As a young, beautiful and intelligent woman, how has it being managing nature’s benevolence with its usual attraction from different quarters?

For me, it is no big deal. I am a professional in everything I do. At no point should anybody think that you are being less than professional. Also, being sensitive to know when an engagement is going the wrong direction, redirecting it and putting a firm stop to anything that you think or sense that is inappropriate and actually being vocal about it.

I think it boils down to knowing your worth, what you want, what you stand for.

That job or business deal is not for you if you must compromise yourself. So, for me, it is being on top of my game in my field and remaining professional at all times – it has been working for me.

As a career woman, a wife, and mother, how do you conveniently combine these roles and still function as a responsible mother and busy executive?

What is the toughest job you have handled so far in this profession, especially in the advocacy for cleaner energy?

Different jobs are tough in different ways but I think various speaking engagements I have had, came with their various challenges.

But one of the most exciting and tough responsibility I had was being one of the judges for the National Finals of the Climate LaunchPad by the Nigeria Climate Innovation Centre (NCIC) September 2018 before the Global Climate LaunchPad in Edinburgh November 2018. This was tough because there were a good number of innovative solutions presented and we had to pick the top three that would represent Nigeria at the global finals. We had to consider how viable the business model is, how scalable the business is, the quality of the team, market validation of the product or service, marketing strategy, potential competition, etc. It was a great experience overall and we succeeded in selecting the winners; it is clear that we have brilliant innovators in Nigeria and I look forward to seeing them all succeed.

First, finding the right support in relevant areas is important, such as enlisting the help of

Many young girls are looking up to somebody like you, what is your word to the young

What possible ways can women function and attain a balance both in their career and at the home front?

Every woman needs to set and get her priority right. She also needs to get the right support at home and at work. Women need to realize that balance is a myth. There will likely be some imbalance at various points but being aware of this and careful management of the competing priorities will make a difference. For example, when I was having kids I had to slow down on a lot of things.

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women who will be reading you and possibly draw inspiration from you?

My advice is: ‘be confident, know your worth, read, and learn continuously’. Personally, I read a lot. I read every day, both sector-related and none sector-related materials.

I just try to gain more knowledge every day.

Be bold, step up, and take up opportunities; do something while waiting for your preferred opportunity and bear in mind that there is hardly any perfect opportunity. Start something today, be ready to take risks, learn as you go along and do better. Finally, do not be passive and do not wait for things to be handed to you because as the saying goes “success only comes to the bold”. If you are not bold, it’s going to be a difficult journey.

How would you describe the role of men in being who you are today?

I think the male folks are doing great. Some men are very supportive and always willing to give you the opportunity to prove and improve yourself. In general, men have been very supportive but I am calling for more support from men. Also, organizations should not deliberately set policies or certain criteria that will limit the number of women on the table because it has been proven that women’s presence is truly inevitable in achieving set organizational set goals.

So I urge men to continue to support women because it is beneficial for all. Good opportunities with men’s support go a long way in nudging women for greater productivity and success for all.

So what do women really need to do to actually get in and occupy their place?

Women should get the right skills, seek out opportunities, take risks, improve their leadership skills, and be problem solvers. And again, don’t keep quiet! Don’t just wait for things to happen, be part of the solution!

So, young girls should stop asking questions like “what am I going to be when I grow up?” but they should rather ask “what difference am I going to make? How am I going to impact my country and the world at large?”

So, find a role, carve a niche for yourself and get the right skills. Go for training, conferences, gain knowledge, read more and then before you know it, you begin to make a difference. Finally, mentor, sponsor and promote other women and leave a legacy.

PHOTOGALLERY OTC

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PHOTOGALLERY

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GHANA @ GPS

PHOTOGALLERY AfriceE&P SUMMIT 2019

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Oil &Gas

Nigerian Companies to Export Services to Uganda Peace Obi

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s the largest oil and gas country in Africa, with the most up to date technology, services, thought leadership and best practices, outward-looking Nigerian companies have identified Uganda as the latest frontier market to invest in.

The 5th Uganda International Oil and Gas Summit, which has become the unrivalled meeting place to develop business with Uganda’s government, stakeholders, policymakers and national oil companies, an increased number of Nigerian compa-

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nies have confirmed their position at East Africa’s buoyant oil and gas market place.

With the launch of the second bid round, Uganda National Oil Company, UNOC is calling on all international IOC’s, operators, service and technology providers to convene in Uganda for a two-

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day strategic, technical networking and business development.

Confirmed to join the 2019 programme is Ranti Omole, CEO of Radial Circle and Steering Committee Member of Sub Saharan Africa’s largest oil and gas meeting, SAIPEC, which takes place annually in Lagos.

Omole is a member of Petroleum Technology Association of Nigeria, PETAN. He is considered a leading local content expert in the region.

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PHOTOGALLERY

FACES @ GPS

MANUFACTURER OF COLEMAN WIRES & CABLES (LARGEST CABLE COMPANY IN WEST AFRICA) WEST AFRICA’S PIONEER XLPE HIGH VOLTAGE CABLE MANUFACTURER WEST AFRICA’S PIONEER CAT5/CAT6 NETWORK CABLE MANUFACTURER WEST AFRICA’S PIONEER COAXIAL TV/VIDEO CABLE MANUFACTURER WEST AFRICA’S PIONEER COPPER BRAIDED SCREENED/SHIELD CABLE MANUFACTURER

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