Orient Energy Review Sept/October

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COVERING LOCAL CONTENT IN ENERGY,OIL AND GAS

VOL.8 No.10 SEPTEMBER/OCTOBER, 2018

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“Innovative Financing will Increase Nigerians access to Renewable Energy” Nigeria Content Policy: A True Jinx Breaker ‘Don’t Go thinking I am a Woman’

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CONTENTS

rientEnergy Review ...driving local content development

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“Innovative Financing will Increase Nigerians access to Renewable Energy”

09 07

Court Asks FG To Make Power Sector Spending Public

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Pushing the Frontiers of Capacity Development: NCDMB Flags off Mandatory Sea Time Training for 20 Cadets

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Baru commends NPDC on 100% local content on gas facility

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African circle acquires 16 new trucks for cleaner territorial waters

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Limited access to electricity worsening poverty situation in Nigeria – NAEE

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NEITI, CAC set to unveil nigerian oil well, mining asset owners in 2019

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Nigeria Content Policy: A True Jinx Breaker

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Three investors to take over PH, Warri, Kaduna refineries

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NNPC’s swap contracts extended till June 2019

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FG approves Ikwe-Onna modular refinery in Akwa Ibom

The PwC’s Power and Utilities roundtable

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ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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EDITOR’S NOTE

W

elcome to yet another enriching edition of your favourite magazine, Orient Energy Review.

Yes, in our last edition, we promised you a rebranded, richer and better-packaged publication in our next outing. True to our words, here is that special edition.

It is uniquely designed with improved editorial content, artistic layout among others to offer you some memorable reading experiences as it heralds a new era in our brand.

It is spicy, hotter and ready for your consumption!

While activities for the year in the energy sector are gradually winding up, and as Nigeria counts down to her 2019 general elections, industry players and other stakeholders have played along with somewhat delayed projects and investment decisions. With the festive season around the corner, many will find this time most convenient to take stock of their activities, check their books of accounts as they chart their way into the next calendar year.

Taking cognizance of that, our cover story for this edition presents an indepth review of activities that shaped the Industry in 2018 and projects the deals that should be expected to drive the industry in the coming year. This is in an addition to the special report on power, up to date industry news, among others.

As usual, our local content report continues to enjoy a special focus.

And following up on the Nigerian Content Development and Monitoring Board, whose hyperactive and proactive approach to the enforcement of the Nigerian Content policy implementation has broken the jinx of years of dominance by the IOCs in Nigeria’s oil and gas industry.

As you flip through the pages, you certainly will find many other exciting stories quite educational and informative.

Please read and send us your feedback, we will be glad to hear from you.

Thanks, and enjoy!

Peace Obi

Publisher/ Editor-in-Chief Nneka Ezeemo Editor Peace Obi Correspondence Dirisu Yakubu (Associate Editor) Chibisi Ohaka (Abuja Office) Vivian Israel ( Head South-South Bureau, PortHaracourt) Gilbert Boyefio (Ghana Correspondent) Godspower Ike (PortHarcourt) Kenechukwu Obiajuru (Bayelsa) 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 +233 2483 61594 orientenergyreviewgh@gmail.com

Mobile line: +234 8036979049 peace.obi@orientenergyreview.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 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 ©2018 allrights reserved

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ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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INDUSTRY NEWS LETTERS & FEEDBACK

INDUSTRY NEWS

Court Asks FG To Make Power Sector Spending Public

T

he Federal High Court in Lagos yesterday granted Socio-Economic Rights and Accountability Project (SERAP) leave to apply for an order of mandamus to compel the minister of Power, Works and Housing, Babatunde Fashola (SAN) to account for the spending in the power sector. The leave was granted by Justice Chukwujekwu Aneke following an application filed by SERAP seeking to compel Fashola to account for the spending on the privatisation of the electricity sector and the exact amount of post-privatisation spending on generation companies (GENCOS), distribution companies (DISCOS) and Transmission Company of Nigeria to date, and to explain if such spending came from budgetary allocations or other sources. The civil society organisations had on May 7 this year send a Freedom of Information (FOI) request to the Minister, giving him 14 days to provide “information on the status of implementation of the 25-year national energy development plan.”

SERAP had also in the FOI request demanded information on whether the Code of Ethics of the privatisation process which bars staff of the Bureau of Public Enterprises (BPE) and members of the National Council on Privatisation (NCP) from buying shares in companies being privatised were deliberately flouted. However, in June after the minister refused to respond to the request, SERAP

approached the court to seek the leave of the court to force Fashola to provide the information and also to publish widely including on a dedicated website the information.

The organisation is further seeking a declaration that the failure of the Respondent to furnish the Applicant with information on the details of spending on and status of implementation of the twenty-five (25) year national energy development plan is unlawful as it contradicts and is in conflict with the obligations of the Respondent under the Freedom of Information Act 2011.

It is also asking the court for an order of mandamus directing and/ or compelling the Respondent to clarify the degree of compliance with the Code of Ethics of the privatisation process which bars staff of the Bureau of Public Enterprises (BPE) and members of the National Council on Privatization (NCP) from buying shares in companies being privatised. Justice Aneke

granted the order for leave yesterday after listening to argument in court on exparte motion by SERAP counsel, Ms Bamisope Adeyanju. The court also ruled that Fashola be put on notice and adjourned the matter to November 20 for mention. In the affidavit attached to the application, SERAP stated that, “Most of the companies that won the bids had no prior experience in the power sector and little or no capacity at all to manage the sector.”

Most of the companies that won the bids had no prior experience in the power sector and little or no capacity at all to manage the sector.” culled from LEADERSHIP

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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POWER

FOR THE RECORDS

The PwC’s Power and Utilities Roundtable

T

he outcome of the 8th edition of the PwC Power and Utilities Roundtable provides a vivid description of the state of affairs of Nigeria’s power sector.

It is still very current and insightful. We consider it a privilege to be able to share this comprehensive package on this platform with our readers. The following is the account as presented by PwC. The 8 edition of the PwC Power & Utilities roundtable took place on 30 November 2017. The annual event brings together key stakeholders in the power

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ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

sector to discuss key developments in the industry. Our exclusive focus this year was the collaborative determination of a clear Pathway to Recovery for the power sector by its leading stakeholders. Power is a key tenet of enabling economic industrialisation and improving standards of living. These are two key themes of Nigeria’s Economic and Growth Recovery Plan. As such, discussions and insights obtained from the sessions are imperative to galvanizing Nigeria’s continued path to economic development PwC point of view.

The Power Sector has been privatised for about 5 years and has been evolving

POWER

Delivering energy indiscriminately through the value chain without a conscious plan around optimising energy mix and geographic coverage will create challenges of over-reliance on one fuel source and an unfairly skewed power delivery map.

in its search for stability and selfsustainability. Increasing levels of intervention from the government, regulators and global development finance agencies as well as rapidly evolving strategies from the private sector participants illustrates the intent by key sector stakeholders to improve sector performance. However, coordinated collaboration is sometimes lacking and as such the much-needed collective push without decision makers working across purposes continues to be elusive.

The absolute need to collaborate and refocus conversations in the power sector on solutions rather than challenges has never been more necessary. The end users in the power value chain are expressing an increasing sense of desperation for a sustainable solution to their power challenges as the euphoria of the privatisation exercise dissipates.

Investing in the Recovery:

More power needs to be delivered right through the power value chain to end-users. Power is the lifeblood of

any economy’s industrialisation programme, hence the success of Nigeria’s planned economic and growth recovery is substantially hinged on improvements within the power sector. Expanding the generation and delivery capacity and capabilities of the power value chain is at the heart of the power investment thesis. Expanding On-Grid generation capacity by improving gas supply to eliminate non-operational capacity, replacing obsolete equipment at power plants to restore unavailable capacity, investing in the development of new power plants as well as the expansion of existing plants remains a key piece of the solution. However, this must be supplemented by alternative less traditional solutions. Off-Grid Direct-to-Customer solutions and embedded generation initiatives are also key to establishing immediate stability in the sector.

Delivering energy indiscriminately through the value chain without a conscious plan around optimising energy mix and geographic coverage will create challenges of over-reliance on one fuel source and an unfairly skewed power delivery map. As such, diversification needs to be focused by enhancing the development of renewable energy alongside the gas-topower programme. Likewise, creative solar solutions which ensure rural communities feel the immediate impact of the power recovery program are also key for an enhanced standard of living for all Nigerians.

Substantially increasing the

quantity of power generated and put onto the grid will result in massive system failures. As such investing in power cannot be contrived to mean only investing in power generation. It is imperative that the transmission and distribution capabilities within the power value chain are substantially enhanced. This means replacement and reinforcement of network assets as well as enhancement of people, processes & systems in transmission and distribution are an integral part of the solution.

The considerable investment and enhancement initiatives articulated above does not only deliver value to power end-users, but also to generating, transmission and distribution companies.

Similar to the post privatisation growth in the meter manufacturing industry, Local industries adjacent to power will be created as a result of these activities.

Funding the Recovery:

Financing the multitude of investment initiatives / projects required to stabilize the power sector Five years after the privatisation, financing has proven to be the leading enabler of sector stability that the sector stakeholders have not been able to come to terms with. As we look forward, the power sector financing story must be built around three key themes to attract the required funding partners to the table.

Firstly, existing power must be effectively monetized through the value chain. In essence, power generated and delivered through the value chain must be recovered at full monetary value.

This requires the elimination of substantial cash revenue leakages across the entire value chain as a result of technical, commercial and collection losses as well as rebasing tariffs to reflect the full cost basis of delivering power.

These solutions require discipline and resolve from both the sector

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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POWER players as well as the community it serves. Secondly, historical financial obligations from sector deficits have to be restructured with a clear path towards resolution or elimination. New financing ought not to be encumbered by old obligations which will limit the value creation impact of funding new development programs.

Thirdly, accessing new finance from existing and new funding sources must be tied to very clear development initiatives in the core value chain. Financing must be effectively structured around pricing, tenor and flexibility to enable required investments but also manage the risks of the financier. Financing strategy must be seamlessly married to business strategy, else the transaction will fail to close or the funding recipient will eventually default. There is absolutely no silver bullet for solving the financing equation. Professionally structured fit for-purpose transactions with proper diligence of risk and reward are the way forward.

3. Implementing & Monitoring the Recovery:

Implementing an effective recovery management framework to ensure the recovery does not fail The power sector recovery will be driven by a complex web of interconnected initiatives and stakeholders. The failure of one initiative or stakeholder to deliver on its mandate will have far reaching impacts on the entire recovery programme. As such, it is imperative that all stakeholders and initiatives are well aligned, coordinated and managed. The success of any programme is significantly dependent on the strength and capability of the stakeholders who own and drive the initiative. Given the nature of the power sector, with a multitude of stakeholders, it is imperative that there is clear ownership of the recovery programme by an individual or team with the requisite authority to act. Buy-in must be sought and obtained from all sector decision makers and stakeholders. There must be constant engagement between stakeholders to retain collective buy-

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in. It is on this basis that the key stakeholders will align, be monitored and measured in line with clearly articulated performance targets. Data analytics driven decision making must be at the core of the power industry. The sector will not achieve stability and sustainability as a whole if data isn’t consistently collected from all industry players, analysed and used to inform policy and decision making. All technical, operational, commercial, customer service and financial data need to be aggregated and effectively analysed on an asset and sector basis for the sector to improve its decision making and evolve. The establishment and use of real-time or frequently updated data visualisation platforms

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

by industry participants is a priority initiative for the sector. After five years of privatisation, the sector ought to have evolved to predictive data model which would help hedge against asset specific and sector wide challenges long before they occur. The journey to recovery is not a short one. Broader economic and market conditions will continue to evolve as the power sector embarks on its journey to stability.

It is important that all stakeholders expect to encounter evolving dynamics and are flexible enough to adjust their strategies and targets to realign with sectoral and economic changes as they occur. The Nigerian power sector will only witness the desired turnaround with careful and deliberate planning and implementation. Incentivising success and ensuring compliance amongst the large and diverse group of decision makers and stakeholders in power is paramount to a favorable outcome.

POWER

Keynote Address

The entire power sector value chain in Nigeria is plagued by challenges of infrastructure and funding, generation issues, gas supply infrastructure issues, evacuation, transmission and distribution, metering, administration of collected tariff, bad debt and enforcement, settlement dynamics, tariff determination and general lack of investment attraction. The Power Sector Recovery Programme (PRSP) articulated by the federal government advisers and the World Bank targets to; Eliminate accumulated deficit for 2015 and 2016. Dimension and commit funds to clear deficit and also provide for deficit that will accrue from 2017 to 2021. Ensure distribution companies (discos) perform their obligations. Implement credible business plans for the distribution companies (discos).

Establish data driven process for decision making. Guarantee 4000mw minimum average energy in Nigeria. Plan and implement communication strategy for the program. Develop robust cost reduction plans which includes metering. Pay off Nigeria Port Authority’s debts and institute payment mechanisms for future bills.

Restore sector governance - put in place the boards for NBET, PPA, including the Rural Electrification Agency. Increase access to power by upgrading renewable solutions. Develop and implement a foreign exchange policy for the power sector. Make electricity market contract effective Ensure achievement of cost effective tariff over a period of five years. Based on the advice of PwC, we are here to look at investing in the recovery process, financing the recovery and implementing and monitoring the recovery. Without pre-empting the contributions by the panelists; investing, financing, implementation and monitoring will require a value proposition that is credible, sustainable, realistic and has a road map that can deliver and consequently unlock funds that will finance activities in the power sector. The Nigerian power sector is in a major crisis. It would have been expected that after privatisation there should be an increase in power, but that is yet to happen. We should now work on a different path. Based on my personal views, I believe the following restructuring have become inevitable: Full privatisation of the Transmission Company of Nigeria (TCN). Complete privatisation of power plants nation-wide. Total divestment of government holdings in the generation and distribution companies through the Nigerian Stock Exchange. Total privatisation of the restructured Nigeria Gas Company. Immediate implementation of the cost reflective tariff in major cities with customers who can afford the cost (Lagos, Port Harcourt, Kano, etc.). This incremental revenue can help subsidize other states that are yet to bear the cost at this time. Focus should be on helping states as standalone or clusters to implement embedded power program.

Foreign exchange is a bane in the power sector, and constitutes concerns for investors. Creation of a window for the repatriation that will encompass the present and future windows in the Central Bank of Nigeria. Hence, going forward with respect to the pathway to recovery, I believe Lagos State is key in the success of this power sector recovery for the following reasons: Lagos is a major consumer of power in Nigeria. Lagos will become a net producer of power in Nigeria.

The Power Sector Recovery Programme (PRSP) articulated by the federal government advisers and the World Bank targets to; Eliminate accumulated deficit for 2015 and 2016.

TO BE CONTINUED IN NEXT EDITION

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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LOCAL CONTENT

Nigeria Content Policy:

A True Jinx Breaker

I

t would certainly not be out of place for anyone to allude that Nigeria appeared jinxed at a point.

What with the depressing fact that after 50 years of oil exploration and production, there was little or nothing to show for the huge oil revenue? Interestingly, the emergence of the NOGICD Act in 2010 and dogged the pursuance of its implementation to the letter by the NCDMB appears to be undoing the ugly past, restoring confidence, repositioning and signaling a new dawn that will usher the country into the realm of industrialisation, Peace Obi writes.

Nigeria is one country in the Africa continent and the world as a whole that stands out for nature’s benevolence on her. Hugely endowed with human and material resources, it would not have been out of place to describe her as the Giant of the World. Naturally made beautiful, rich and wealthy by diverse and proportional deposition of these mineral resources in different regions and states of the federation, Nigeria in 1956, discovered her ‘Black Gold’ in Oloibiri in today’s Bayelsa State.

The discovery of crude oil in commercial quantity in the creeks of Niger Delta, intrinsically relegated other resources, thus making oil the most important commercial asset of the country. Subsequently, the country’s doors were flung open to the international organisations who became attracted to Nigeria’s sweet crude. The exploration and production of this high-value, low-sulfur content, light crude oil did not only project the country into the international space but made her one of the oil-producing countries whose crude remains attractive to international markets till today.

NOGICD Act, the forerunner of a paradigm shift However, with over 50 years of oil ex-

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ploration in the country, observers have sadly noted that the revenue generated from oil have scarcely benefitted the country and her citizenry. Also, confronted with the reality that the country’s oil wealth has not passed down to her citizens, especially as statistics has it that about 70 per cent of the population still lives below the poverty line, the country in 2010 formally rose to the arrest the misnomer through the instrumentality of law.

With the burning desire to strike a balance between Nigeria’s huge resources endowment and her economic development, on April 22, 2010, the Nigerian Oil and Gas Industry Content Development (NOGICD) Act was passed into law. On the heels of this, the Nigerian Content Development and Monitoring Board (NCDMB) was established. The Board was charged with the onerous task of designing strategies using legal framework to drive compliance for the Nigerian Content policy. Eight years down the line, the passage of NOGICD Act and the creation of the NCDMB has become a turning point for Nigeria’s industrialisa-

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

tion bid.

A new era has set in and a new storyline has begun. The execution of contracts and virtually all other activities by the foreign companies, resulting in huge capital flight, lack of jobs for Nigerians in the industry, among others came under check. NCDMB in its effort to realise a 70 per cent in-country value retention continued to adopt different approaches and activities towards achieving its goal.

Obviously, the Board has proven to be a present help in the time of need. According to the Board, the domestication and domiciliation of operations that will usher Nigeria into a new era of greater participation of indigenous companies, communities, and individuals in the Nigerian oil and gas industry remain a target it pursues with passion.

2018, a year with landmark achievement

Indeed, true to the NCDMB’s declaration to integrate oil producing communities into the oil and gas value chain, maximize participation of Nigerians in oil and gas activities, link oil and gas sector

LOCAL CONTENT to other sectors of the economy and maximization of Nigerian resources, from the inception of the Act till date, it has been a progressive movement. Guided with a 10-year Strategic Roadmap, NCDMB has nurtured Nigerian Content policy and saw the implementation leap from almost at a zero point in 2010 to a record high of 30 per cent in 2017.

Egina FPSO: The Local Content Pacesetter

The year 2018 became explosive for Nigerian content achievement. The berthing of Total Exploration and Production’s Egina Floating Production Storage and Offloading vessel at the SHI-MCI Yard, Ladol Free Trade Zone brought a major breakthrough for the country. Six months after its arrival, the fabrication and integration work on the vessel became a huge success. Undoubtedly, Egina FPSO turned out to be the jinx breaker, dispelling naysayers and their unbelief, and ultimately redefining Nigeria as a land of possibilities with enormous resources yet untapped. The successful integration of the six locally fabricated topside modules of the FPSO with 2.3 million barrels storage capacity is said to be a game changer as far as the execution of deep offshore oil and gas projects in the country is concerned.

Speaking on the project reputed to be the first of its kind in sub-Saharan Africa, Vice President, Yemi Osinbajo described the successful anchor of the FPSO as a celebration of local content. Commending participants on the uncommon feat, Osinbajo said, “Excellent work has been done here and this would be sacrosanct to the economic recovery and growth plan of government in the long run as would be evident in the nation’s Gross Domestic Product in no distant time.”

For the Executive Secretary, Engr. Simbi Wabote, the Egina project changed the narrative about capacities and capabilities of the indigenous oil servicing companies in the country. He noted that the quality and timely delivery of the Egina project has raised the bar in the indigenous companies’ participation in various scopes of contract handling, covering the wells, subsea production systems, umbilicals, flowlines and risers. He said, “One of the Nigerian contractors that fabricated the

Speaking on the project reputed to be the first of its kind in sub-Saharan Africa, Vice President, Yemi Osinbajo described the successful anchor of the FPSO as a celebration of local content.

Buoy completed it three months ahead of schedule. The argument often put forward by project promoters is that Nigerian Content is expensive and cannot deliver on schedule. The Egina has buried that mindset forever,” he said.

More Local Content Achievements

Also, in a similar development, another success story has been recorded with the 100 per cent local content input in the development of Oredo Integrated Gas Handling Facility (IGHF).

Speaking during a tour of the NPDC’s Oredo Flow Station, Oredo Gas-to-PanOcean Facility, Oredo Integrated Gas Handling Facility (IGHF), as well as the Oredo LPG Dispensing Facility, all in Edo, the Group Managing Director of NNPC, Dr. Maikanti Baru, said he was proud that a world-class facility was being put in place by a Nigerian engineering contractor in conjunction with another Nigerian company, the NPDC. Baru said, “From engineering, construction to the erection of the various units, we feel very encouraged by the huge manhours which you are putting in here, day and night, with full local content,” Baru told over 500 workers at the site.

Speaking further, the NNPC boss stated, “The IGHF is currently at 80 per cent completion. When completed in December, it will make provision for dehydration of gas and liquid extraction. “ It is expected to also produce both Liquefied Petroleum Gas (LPG) and Propane, in addition to dry gas to the Escravos Lagos Pipeline System (ELPS),’’ he said He described the Oil Mining Lease (OML) 111, where the gas projects were located, as one of the most significant assets of the NPDC. “You could see that right from the well-design through to reception of the various liquids to the processing and disposal

of the various outputs, it is fully indigenous.

So, it cannot be better than this,” he added.

He said the LPG Dispensing Facility strategically offered 40 per cent solution for Nigeria’s domestic LPG market which would translate into extra cash flow for the company.

The List Continues

In a recent visit by the NCDMB to the Dangote Petroleum Refinery and Petrochemical Free Trade Zone Enterprises (DPRP), the Board revealed that the level of adherence to the local content law in the refinery project execution was quite commendable.

To strengthen the policy implementation as well as guard against the reoccurrence of such losses the country experienced prior to the passage of NOGICD Act, the Board took a Nigerian Content Sensitization/ Awareness Creation Programme titled, “Let’s Walk the Nigerian Content Talk Together,” for contractors working on the DPRP. Represented by the Director, Monitoring & Evaluation, NCDMB, Mr. Akintunde Adelana, the Executive Secretary, Engr.

Simbi Wabote said that the programme was part of the Board’s efforts to ensure that the company and its contractors comply with the local content policy.

Wabote explained that the Dangote Refinery projects were expected to close a major gap in the supply of petroleum products in the country. “We consider this as a very important project and we are willing to partner with the company to ensure full implementation of the local content policy.

We embarked on this journey with the company a long time ago and we are ready to partner with the Dangote Group.”

Stressing that the country recorded loses prior to the enactment of the local content policy, Wabote noted it came from jobs executed abroad by International Oil Companies (IOCs), operating in the country.

According to him, “The narrative then was that nothing can be done in-country.

Plants and modules were fully fabricated offshore without any structure in place to achieve knowledge transfer. Before 2010, we had no active dry-dock facilities. The few we had were abandoned and left to rot away.

Today, we have four active dry docking facilities in Port Harcourt, Onne, and Lagos,” he added.

The list of Nigerian Content success story is unending. It is just a pointer to whom we really are as a people and as a nation. Greatness truly lies in us!

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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LOCAL CONTENT

Pushing the frontiers of capacity development:

NCDMB flags off Mandatory Sea Time Training for 20 Cadets Peace Obi and Vivian Osuji Israel, Port Harcourt

T

he Nigerian Content Development and Monitoring Board on Monday in Port Harcourt flagged off Sea Time Training Experience programme for 20 cadets who were selected from the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC JQS).

The intensive and mandatory sea time experience training which was flagged off at the Charkins Maritime & Offshore Services Ltd in Port Harcourt is expected to take place in Ghana for a period of one years.

According to NCDMB, the training is designed to offer participants, the opportunity to acquire international certifications recognized by the Nigerian Maritime Administration and Safety Agency (NIMASA) to enable them practice their profession effectively.

Speaking at the event, the Executive Secretary of NCDMB, Engr.

Simbi Wabote who was represented by the Board’s General Manager, Capacity Building, Dr. Ama Ikuru congratulated the cadets and urged them to work hard, be focused and make best of the opportunity the international training offers.

The ES who stated that the NCDMB core mandates is focused on the promotion and development of human and material capacity so as to grow Nigerian Content, said that the Board is optimistic that the cadets will return with certificate of competence, fully equipped to man vessels. He further revealed that NCDMB plans to select five persons

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after the training and advised them to work hard to qualify for the selection process.

Stressing on the importance of the training to the country, the ES disclosed that statistics made available to him reveals that Nigeria do not have enough seafarers to man the number of vessels that call on Nigerian waters. According to him, the statistics made available by the chairman of the Association of Ship Owners of Nigeria showed that while over ten thousand vessels call at the Nigeria Port each year, Nigeria do not have commensurate number of Nigerian seafarers to man the vessels. “I think it is good that we are beginning to take seriously the issue of training cadets to man those vessels”, he said.

Also speaking, the Provost, Charkins Maritime Academy, Mr. Egbene Okore harped on the need for cadets to undergo the mandatory sea time experience.

According to Okore, “it is very impor-

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

tant for cadets to have the mandatory experience because it has become a major issue affecting seafarers in the maritime industry.”

The Provost appreciated NCDMB for its continuous commitment in sponsoring the mandatory sea time training. He also called on corporate organisations and other establishments to emulate NCDMB, stating that such kind gesture will help in reviving the maritime industry.

Speaking with Orient Energy Review, a representative of the cadets, Abraham Samuel, appreciated the Federal Government, Nigerian Content Development Monitoring Board as well as Charkins Maritime Academy for giving them the opportunity and privilege to be enlisted for the training. The visibly elated engineering cadet promised to diligently pursue his studies and to come through with flying colours.

LOCAL CONTENT

NCDMB, stakeholders begins review of new projects, opportunities Peace Obi

T

he Nigerian Content Development and Monitoring Board (NCDMB) and key players of the Nigerian oil and gas industry have begun to review the existing data on upcoming projects and their Nigerian Content opportunities.

Speaking at a two-day workshop organized in Lagos recently the Board, the Executive Secretary, of NCDMB, Engr.

Simbi Wabote stated that the review among others seeks to update the Compendium of Nigerian Content Opportunities, highlight challenges faced by operators and service providers and proffer solutions that would increase in-country value creation and retention and fast-track the development of new projects.

Represented by the Director, Planning, Research and Statistics, NCDMB, Mr. Daziba Patrick Obah, the ES stated that the event would build on the data generated in the maiden edition of the Nigerian Oil and Gas Opportunities Fair (NOGOF) held in 2017 at Uyo, Akwa Ibom State. A key output from the Uyo event was a compilation of opportunities in the upstream, midstream and downstream sectors. He stressed the need to update the compendium on an annual basis to enable the Board and stakeholders track the progress made in maximising Nigerian Content opportunities.

The Director, Monitoring and Evaluation, NCDMB and coordinator of the event, Mr. Akintunde Adelana, disclosed that NOGOF 2019 will hold from April 4-5, 2019, at the 1000-seater conference hall of the new NCDMB headquarters in Yenagoa, Bayelsa State. Adelana said that expected attendees include venture capitalists, investors and other players in

Simbi Wabote industry. Adding that the event would also serve an avenue to identify gaps in local content, list investment opportunities and highlight value-addition and employment opportunities, he added.

Also speaking, the Chairman of Petroleum Technology Association (PETAN), Mr. Bank-Anthony Okoroafor, confirmed that that NCDMB’s aspirations like the domestication of technology, growing the nation’s GDP and developing capacities in-country were in tandem with PETAN ideals.

In his presentation, the Director of the Department of Petroleum Resources (DPR), Mr. Mordecai Ladan, represented by Engr. Joseph Ogunsola of the Gas Division, stated that the Nigerian gas industry offered incredible opportunities for investments, which would create huge benefits for the investors and Nigerian people.

He stressed that to achieve zero gas flare-out, there must be focus on infrastructure, fiscal terms, open access to facilities, political will, technology

options and synergy among industry players. Adding that the National Gas Flare Commercialisation Programme (NGFCP) has a target of zero routine gas flaring in Nigeria by 2020.

In his remarks, the Nigerian Content Capacity Development Manager, Total Exploration and Production Nigeria, Engr. Sylvester Iduseri, indicated that the company’s Egina deepwater project achieved 75 percent Local Content and exceeded the 70 percent target set by the NCDMB. He said studies were ongoing for Pereowei development, a subsea field project, which would be a tie-back to the Egina FPSO. Iduseri disclosed that tendering was ongoing for the Ikike project and the Final Investment Decision (FID) forecast is expected in Q4 2018. He also explained that Nigerian Content opportunities in the Ikike project exist in engineering, procurement, construction and fabrication, installation, drilling, completion among others.

The workshop featured sessions on upstream opportunities, with presentations from international and indigenous operating companies and a dedicated marine vessels strategy session. Key suggestions at the workshop included the need for project promoters to continue to christen projects and facilities with names of their host communities as such gestures would foster a sense of belonging in the communities. Also, that NCDMB should effectively monitor contract execution and maximally disburse the Nigerian Content Intervention Fund (NCI Fund) to boost the financial capacity of local contractors. It was also canvassed that the forthcoming NOGOF should set agenda for greater collaboration among government agencies connected with Nigerian Content

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LOCAL CONTENT

Baru commends NPDC on 100% local content on gas facility

T

he Nigerian National Petroleum Corporation (NNPC) has commended the Nigerian Petroleum Development Company (NPDC), for achieving 100 per cent local content input in the development of Oredo Integrated Gas Handling Facility (IGHF).

Dr Maikanti Baru, the Group Managing Director of NNPC, made the commendation when he visited NPDC, its upstream subsidiary on Wednesday, a statement released by the Corporation, on Thursday in Abuja said.

The GMD toured the NPDC’s Oredo Flow Station, Oredo Gas-to-Pan-Ocean Facility, Oredo Integrated Gas Handling Facility (IGHF), as well as the Oredo LPG Dispensing Facility, all in Edo. He said he was proud that a world-class facility was being put in place by a Nigerian engineering contractor in conjunction with another Nigerian company, the NPDC. “From engineering, construction to erection of the various units, we feel very encouraged by the huge man-hours which you are putting in here, day and night, with full local content,” Baru told over 500 workers at the site.

“The IGHF is currently at 80 per cent completion. “ When completed in December, it will make provision for dehydration of gas and liquid extraction. “ It is expected to also produce both Liquefied Petroleum Gas (LPG) and Propane, in addition to dry gas to the Escravos Lagos Pipeline System (ELPS),’’ he said He described the Oil Mining Lease (OML) 111, where the gas projects were located, as one of the most significant assets of the NPDC. According to him, it is where the corporation’s staff members and their

16

contractors design, build and operate facilities hitherto operated by the International Oil Companies (IOCs).

“You could see that right from the well-design through to reception of the various liquids to the processing and disposal of the various outputs, it is fully indigenous. So, it cannot be better than this,” he added.

He said as a National Oil Company (NOC), the corporation was using this to showcase its ability to intervene.

“We are not just a player, we are also building capacity that can enable us intervene by taking over any assets whenever any contractor decides to opt out,” he said Baru stated that the project’s funding constraints would be addressed soonest and noted that NNPC was considering alternative means to support and complete the project.

“All these projects are located within OML 111, one of our critical assets which we are keen on deriving maximum benefits from,” he stated.

Earlier, the Managing Director of the NPDC, Mr Yusuf Matashi, thanked the NPDC Board led by the GMD, for coming down to inspect the gas facilities,

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

saying it was the first time the company was witnessing a highly-synchronised support towards the projects.

He said the LPG Dispensing Facility strategically offered 40 per cent solution for Nigeria’s domestic LPG market which would translate into extra cash flow for the company.

“Another advantage is that it will ensure ease of distribution and penetration into the market. You can take LPG to every nook and cranny of the country from here. So, it is quite strategic,” he noted.

He said in line with NPDC’s Corporate Social Responsibility (CSR) efforts, the company had engaged the youth within the host community area, with a number of them fully involved in the local contracts around the project as well as the pipeline Right Of Way (ROW).

“We have also completed a Skills Acquisition Centre which is currently being furnished in line with the component of the project.

“We intend to commission the centre even before the project is completed.

“From our records, this is one project that has engendered cordial relationship with the Oredo community and we hope to replicate similar understanding in other areas within the Niger Delta,” he said Also, the NNPC Chief Operating Officer, Upstream, Malam Bello Rabiu, expressed happiness that the project would be delivered within time and budget.

He also charged the workers to double the over one million man-hours achieved so far in the project without any incidence.

Located 34km southeast of Benin City, the OML 111 is an onshore field comprising five fields viz: Oki-Oziengbe-South, Aroh North, Koko, Oghama as well as Oredo, which has 12 out of its 15 wells currently producing.

(NAN)

LOCAL CONTENT

African circle acquires 16 new trucks for cleaner territorial waters

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o maintain its high standard service which has aimed Nigeria a seat in the International Maritime Organization (IMO), as a council member, African Circle Pollution Management Limited (ACPML) recently acquired 16 additional trucks for more efficient and effective service delivery.

ACPML, a MARPOL 73/78 waste reception facility operator for Nigerian Ports Authority which manages ship-generated waste on behalf of the Federal Government noted that it’s continued effort at improving its facilities as well as the human resources were aimed at keeping Nigerian waters free of dirt and pollution, while retaining the country’s dignified position in the comity of maritime nations.

Speaking at the unveiling of the 16 brand new trucks at the Apapa office of ACPML, the Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala-Usman commended the organisation on the giant strides it has continued to attain. The MD who was represented by the NPA General Manager, Security, Mr. Nasir Anas Mohammed said that it was NPA’s greatest pleasure to identify with a result-oriented team as

ACPML, adding that the Authority was confident that the additional vehicles would further enhance the organisation’s efforts in keeping Nigerian territorial waters clean.

In his opening remarks, the Acting Coordinating Officer of ACPML, Ahmadu Fidi Ahmadu said that increase in demand of its services as well as the need to maintain international best practices in its service delivery prompted the procurement of the trucks.

He further hinted that the Mercedes Benz trucks were fitted with modern technology specially designed for its kind of services, adding that eight trucks would be sent to its Port Harcourt while eight tucks will be retained in Lagos.

Speaking also, the District Manager, Lagos, Mrs. Latifat Ibrahim, said that ACPML in its strives for excellence carries out routine upgrade of its facilities in order to keep up with the IMO requirements for adequacy of port reception facility. Ibrahim noted that the wear and tear on older facilities makes the procurement of new ones inevitable for optimum service delivery.

She noted through years of sensiti-

sation, the port reception facility has established its presence in the Nigerian navigational districts, created a platform and services that is acknowledged in the international community. Adding that establishment of the company’s presence involves having right equipment and personnel and timely response to request, among others.

“Here, we strive for excellence in our service delivery. When we came on board with the NPA, awareness was very low, we worked on it, sensitised vessel captains as we meet them, and we had our presence established.

“There was no better way of establishing our presence than having equipment on ground that people can see and having also the human resources to work with the equipment, such that we were able to even go above and beyond what people expected of us. As it, there is no request that will come that we are unable to deal with. We get requests for services even at Lagos anchorage. I can tell you categorically that it wasn’t like this four years ago, it has been a steady improvement – scaling up our equipment and services.”

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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INTERVIEW

“Innovative Financing will Increase Nigerians access to Renewable Energy�

Necessity, they say is the mother of invention. Thus, responding to the perennial power problems in the country, Nigerians have shown strong interest in switching over to renewable energy sources. However, lack of funding has been identified as a major drawback in adopting the desired alternative energy option. In this interview with an expert in renewable energy financing, the Chief Energizing Officer, Consistent Energy Limited and President, Renewable Energy Association of Nigeria, Segun Adaju told Orient Energy Review team, that creative approach to financing renewable energy projects would usher Nigeria into an exponential adoption of renewable energy sources. Excerpts.

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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INTERVIEW Can we get to know you, Sir? My name is Segun Adaju. I run a company called Consistent Energy and we drive Solar Direct ground. I am also the President of the Renewable Energy Association of Nigeria.

The demand for alternative energy was said to have been triggered by the 1973 Arab embargo on oil, how has that impacted the global demand for alternative energy today?

Well, globally, renewable energy or alternative energy has been at the forefront of the new energies that are being discovered. Of course, human nature is such that if there is a crisis somewhere, there is always the prompting to look for an alternative. So, the embargo at that time also created the need for the search for alternatives.

I tell you today that renewable energy has gone very big, globally. Countries like China, Germany, USA are taking the lead, particularly in solar energy. So, there is a very strong shift to deploying renewable energy technologies in the world for several reasons. First is the need for alternatives, secondly because of the push to avert impending and almost inevitable climate change.

I think Nigeria is very ready. It is also a ready market because we have about 200milliin people and we have an average of 5,000mw. This is unbelievable! By international standard, if you have 200,000 megawatts of energy generated for our population, we definitely have a room for alternatives.

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How reliable and adequate do you think these alternative energy Windows will be in meeting the global demand for energy?

I can say that renewable energy has a whole lot of potentials to meet the energy need of the world. Globally, we have almost 400 gigawatts, it is about 400,000 megawatts of renewable energy that has been deployed, with China leading in the world. It is a technology other nations, and thankfully, Nigeria is also towing that line now. So, there are figures that show the map of how renewable energy is changing in the whole world. So, it is pretty very reliable. I have seen massive facilities powered by solar, especially in Germany, I have seen a whole airport powered by renewable energy. So, it is

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

amazing what these alternative energy sources are doing to the energy mix in the world.

How ready do you think Nigeria is for renewable energy?

I think Nigeria is very ready. It is also a ready market because we have about 200milliin people and we have an average of 5,000mw. This is unbelievable! By international standard, if you have 200,000 megawatts of energy generated for our population, we definitely have a room for alternatives. So, right now the alternative energy Nigerians are using is the generator. Research has it that the energy we generate from generators is far higher than what the national grid is generating. What that means is that

INTERVIEW when the world will move to cleaner energy, maybe displacing the regular fuel.

I foresee that in the next 10 years, it will be a different ballgame for Nigeria. There will be a time when regular people like you and I will understand what alternative energy is. I can see the huge potentials and opportunities in it

there is a market already for people that can easily change. You know generator is also seen as an alternative energy source.

So, it is easy to plug in renewable energy to displace those generators. So, that is how ready Nigeria is.

I also know that the government has made some very good initiatives, policies, and investments. There has been a gradual progress, where we are now is far better than where we were five years ago.

For example, there is a policy called “the Mini-grid policy” that allows companies like ours to develop mini-grids in rural communities where there is no electricity at all. There is also Nigerian Renewable Energy and Energy Efficiency policy, there is Nigerian Renewable Energy Masterplan, and there is the Rural Electrification Agency.

Do you think renewable energy is capable of displacing fossil fuel?

Right now, the world is moving away from what is called “dirty fuels”. Petrol, diesel, coal among others are seen as not being too clean. Take, for example, a diesel generator when powered emits smoke that consists of carbon dioxide, the carbon depletes the environment, increase the temperature of the atmosphere and causes climate change. So, it is imperative for the world to move away from the dirty fuels to cleaner ones. And I see a situation some years down the line

Given the increasing demand for cleaner energy around the world and the urge to do away with ‘dirty fuel’, do you foresee a time that would be referred to as “the fossil fuel era?”

I think so but it is not going to be in our own generation. Obviously, with the rate of advancement in development technologies, fossil fuel risks being replaced. Technology is growing very fast, for example, there are cars that are electric-powered. So that is where the world is going.

How soon do you see Nigeria stepping up to this level of renewable energy consumption?

I foresee that in the next 10 years, it will be a different ballgame for Nigeria. There will be a time when regular people like you and I will understand what alternative energy is.

We have been at the forefront of promoting this sector and I can see the huge potentials and opportunities in it. That was one of the reasons why I left banking to develop this business.

I can tell you that this is the energy of now and tomorrow. It is no longer the energy of the future, but the energy of now. As I speak with you now, this whole complex is powered by solar. So, we are not connected to the national grid and we don’t use a generator. It powers every appliance including my air conditioners. So, I generate and use the energy I generated, I don’t have any business with Ikeja Disco. It is also the same in my house - completely powered by solar.

My findings revealed that Nigerians have become more aware than before about the availability of renewable energy sources as well as the benefits but the cost of initial installation, especially the solar systems has been a major setback, how convenient do you think it is for Nigerians?

Let me give you some statistics and practical cases, I will start with my mum. The first solar that I sold was to my mother in the village and it was a solar lantern. We had an agreement to swap her kerosene lantern with my solar lantern. And she was buying kerosene may be at the rate

of N120 every two weeks, one month gives you N240. I did that exactly 26th of November, 2012. From then till now, she has not bought one litre of kerosene. So, if you calculate N240 for one year and multiply it by five years, it would have bought that solar lamp three times. But the challenge was that, at that time, a rural woman like her will not have the money to buy a solar at N8,000 or N10,000.

But with innovative financing structure and framework, she can have access to that solar lantern and then she can be taking N100 from the N120 she was spending every two weeks and be paying back to microfinance bank, maybe in six months she would have paid fully for the and she owns the lantern.

How ready do you think our financial intuitions are in financing alternative energy projects?

In the last two years, we have powered hundreds of barbers’ shops.

I have about seven barber shops around here that are powered by our company. Formerly, they use this generator called “I pass my neighbor”. They buy it at N30,000 and buy N500 to N1,000 fuel every day. This means in six days, they would have spent N3,000 to fuel the generator.

So, we developed a similar solar package that carries a similar load and we said, “take away this generator, we will install this solar.

Give us the money you should have used in buying another generator, i.e N30,000 and every week, you pay us N3,000. Then you pay for two years and the system is transferred to you. Meanwhile, the solar panel will last for 25 years, the inverter will last for a minimum of five years, the battery we use will last for three years and then it becomes a win-win situation. Here, the customer doesn’t have to look for extra money to service that loan.

How and where does the innovative financing come in?

For the financial institution, I said earlier that one of the reasons I left banking was to come and develop

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INTERVIEW this business model. So, we see our company as a solar energy financing company. We are not principally a technology company; I am an economist and not an engineer.

What we are bringing in is innovative financing. We have partnered with several micro-finance banks with two commercial banks who give us money to deploy solar to barber shops, they, in turn, pay the banks for a period of two years. So, banks are beginning to see that there is money to make in renewable energy and they are coming in.

Nigeria economy is dominantly leaning on oil, what do you think will be the future of oil when renewable energy takes its proper place in the country?

For Nigeria, it is a form of threat to her revenue. This is so because Nigeria has been relying more on one source of revenue – oil and gas. There was a time Shale oil became a threat.

Now, with this technology, there is a threat to oil and gas because people are looking for alternatives. So, in the nearest future, the price may begin to drop and if we don’t diversify now, we are at risk. You will find out that once the price of crude oil drops, Nigeria is shaking and the budget is threatened. So, it is a threat to Nigerian oil because alternative energy sources are coming in and they are replacing oil and gas.

Interestingly, we have the best environment for renewable energy generation. We are just a little bit above the equator; we have one of the best solar radiations in the world. If you go to places like Sokoto, Abuja through Maiduguri, they have one of the best solar resources you can ever think of in the world. So, if we begin to shift towards these alternative sources of energy, then it will be to our own advantage as a country, because, it is just another way to diversify the economy.

However, it is a threat as well as an

For Nigeria, it is a form of threat to her revenue. This is so because Nigeria has been relying more on one source of revenue – oil and gas. There was a time Shale oil became a threat. Now, with this technology, there is a threat to oil and gas because people are looking for alternatives. opportunity.

What does the Nigerian environment stand to benefit from all of these?

The Nigerian environment stands to be cleaner; there will be less pollution, for example, the black soot that are being experienced in Port Harcourt which is likely because of the activities of oil exploration going on around there. This is the type of technology such environment needs. Here, I don’t pollute the environment, my carbon footprint is zero because I don’t use a generator and I don’t use the national grid.

The more we move to the alternative energy, the better it is for the Nigerian environment.

Do you see the coming in of renewable energy as a resolution to some of the oil exploration-related problems?

Definitely! I even see beyond that; see alternative/renewable energy as the solution to some of the crises we are having in different places. Let me start with the Niger Delta. It is highly unfair on a race to say because of the income you are generating from their backyard, you just kill their environment and probably kill their people.

So, there is a complete degradation in the South-South. Oil spills kill their

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INTERVIEW fish, destroy their farmland. When they don’t have anything to eat, why won’t they be restive? So, if we reduce our activities of degrading our environment in that axis, and we begin to deploy alternative energy in those communities, it will create jobs for the people, reduce pollution and reduce the crisis.

Look at the crisis in the northern part of the country, a lot of people probably don’t know that some of these crises such as Boko Haram were because of climate change, deforestation that threatened their economic activities. Youths have become jobless and some people just latch on the jobless guys to create a crisis, even the herdsmen issue we are having, it is because there are no longer green pastures up north because of climate change. So, people are moving the animals towards the middle and south of Nigeria where there are farms and there are clashes between farmers and the herdsmen.

I think alternative energy can really help to reduce restiveness in any community. There is a case study in Afghanistan where it was proven in a community that alternative energy can help to reduce the level of crisis in that place.

How quick can we get into using biomass and bioenergy to generate the power, considering the issue of lack of finance?

I agree with you that biomass and bioenergy are potential opportunities in Nigeria.

Several wastes can be converted to energy.

Let me use a typical example of Abakaliki and the rice zone. I visited Abakaliki on a project funded by USAID and it was unbelievable seeing heaps of rice husks wasting away. Meanwhile, in India, there is a company called “Husk Power” that is converting rice husk and other materials. So, the technology exists, it has been improving. Now, the issue of finance is something we need to talk about because the game changer is actually financing. The issue is that if we have innovative financing programmes where companies who are into this business can raise money and generate energy and sell to people who will buy in bits and pay. Then the companies can generate the money and pay their loan that is the fastest way that this can be done.

I have a few members of the Renewable Energy Association of Nigeria who is already operating this model. There is Jima Farms somewhere in Abuja-Kuje axis converting waste from farm harvest to energy. I

even know people who are converting human waste to energy into a very clean cooking gas and also electricity.

I have a friend who is also converting waste from fruits around Mile 12 to power street lighting in that community. Financing I believe has been a challenge, interestingly, globally there is a lot of financing opportunity which includes real finance, climate change finance options. All you need to do is to develop a very bankable business proposal and you can begin to access this funding may be starting from grant to equity and then to financing. It is possible and I can tell you that there are entrepreneurs already doing great things in Nigeria in that space.

What are the processes involved getting to access these financing models?

First, I will advise that one sits down and do some research. There are documents that are available on the Internet. Several studies have been done in Nigeria and abroad. One can also engage with associations that are in this space. There are programmes that mentor new entrepreneurs. I have been mentored under the Private Finance Advancing Network, it is a global body where we mentor new entrepreneurs in renewable energy, to help them to develop their business and even help them to raise capital. There are several

other consulting companies that somebody who is new and doesn’t know anything about renewable energy can approach and in three to five years, he/ she can run a company like ours and be proud of it.

How possible is it for manufacturing companies to rely on renewable and be able to cope?

We are working very closely with the Manufacturers Association of Nigeria to see what we can do in those spaces.

Of course, for a manufacturing outfit, it needs large energy generation because of their machines. We advise them to rely on other energy sources and see how it works before you can say, “let me go the whole scale”. If any company here will like to power their facilities using solar for example, there are one or two limitations. One, you need a massive land space to lay your solar panel that will power your facility. If you can’t do that, you can run some of your equipment on solar. Already, banks are running their ATM on solar while some are even running their branches on solar energy. It is very possible to power companies using solar. It is a known fact that many companies in Nigeria closed down because of power but alternative energy is a relief to us.

I agree with you that biomass and bioenergy are potential opportunities in Nigeria. Several wastes can be converted to energy. Let me use a typical example of Abakaliki and the rice zone. I visited Abakaliki on a project funded by USAID and it was unbelievable seeing heaps of rice husks wasting away. Meanwhile, in India, there is a company called “Husk Power” that is converting rice husk and other materials. So, the technology exists, it has been improving.

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COVER

Apathy beclouds oil industry in 2018, outlook still positive Godspower Ike

The year 2018 brought mixed fortune for the Nigerian petroleum industry, as activities in the industry were driven mainly by policies from the government and agreements entered into by the Nigerian National Petroleum Corporation on behalf of the Federal Government. This article reviews activities that shaped the industry in 2018 and looks at the projections and deals that are expected to drive the industry in the coming year.

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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COVER

T The major talking point in the petroleum industry in 2018 was the back and forth between the executive and legislation in the area of the Petroleum Industry Governance Bill (PIGB).

he Nigeria petroleum industry recorded significant lull in 2018 with investors’ apathy continuing to stifle activities in 2018.

Despite the slowdown in the industry, significant milestones were achieved in the area of policy making, as the Federal Government developed a number of critical regulations, while a number of agreement was entered into which if pursued would reactivate the industry in the coming year.

The major talking point in the petroleum industry in 2018 was the back and forth between the executive and legislature in the area of the Petroleum Industry Governance Bill (PIGB).

The National Assembly had passed the PIGB after several months of deliberations, and had sent it to the presidency, who after consultations rejected the bill and returned it to the National Assembly to address the areas of disagreement.

However, the National Assembly said it was still looking at the points raised by the presidency in the Bill and would re-transmit it to the presidency after concluding its work. It is hoped that the PIGB would be assented to by the president on receiving it so that it can become a wlaw.

The other variants of the Petroleum Industry Bill (PIB) — the Petroleum Industry Administrative Bill, Petroleum Industry Fiscal Bill and Petroleum Industry Host and Im-

pacted Communities Bill —have currently passed the Second Reading at

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ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

the National Assembly.

Apart from the PIGB, a major development in 2018 was the arrival of the Egina Floating Production, Storage and Offloading (FPSO) vessel into the country.

Egina, the largest FPSO ever installed in Nigeria (330-metres long) and owned

by Total Nigeria, berthed at the 500-metre FPSO integration quayside at the Lagos Deep Offshore Logistics Base (LADOL) Fre Trade Zone, Lagos, where the integration of six locally fabricated modules took place over a couple of months.

The vessel had sailed away to the offshore location at the Egina oilfield located in Oil Mining Lease (OML) 130. The Egina field is expected to add 200,000 barrels per day of crude oil to Nigeria’s daily output when it comes on stream, amounting to a 10 per cent increase in Nigeria’s daily production.

The Federal Executive Council (FEC) also approved and gazetted the Flare Gas (Prevention of Waste and Pollution) Regulations 2018, which sought to increase the penalty for gas flaring to $2 per 1,000 standard cubic feet of gas, SCF, from N10 per 1,000 SCF of the commodity flared.

The document also stipulated a fine of N50,000 or a six months jail term or both,

COVER

for anyone who provides inaccurate flare data.

The new gas flare regulation stipulates that in the case of any organisation producing 10,000 barrels of oil or more, the gas flare penalty had been increased to $2 per thousand standard cubic feet of gas and, in the case of anyone producing less than 10,000 barrels of oil per day, it had been increased to $0.50 per thousand standard cubic square feet of gas, irespective of whether it is routine or non-routine flaring.

However, the new regulation stipulates that the producer would not be liable in a situation “where the flaring was caused by an act of war, community disturbance, insurrection, storm, flood, earthquake or other natural phenomenon which is beyond the reasonable control of the producer.”

The new law further stated that in a situation where a producer fails to provide flare gas data to a request made under regulation 4 of these regulations or fail to supply accurate or complete flare gas data, such producer would be forced to pay a fine of $2.50 per day, for every 1,000 SCF

of gas flared or vented within the oil field or marginal field.

Other offences within this category include where the producer fail to provide a qualified applicant with access to any flare site; fail to provide a permit holder with access to any flare site or to flare gas as provided in the permit; fail to prepare, maintain or submit the logs or records or reports required by the regulation within the time required to do so by the DPR. The penalty of $2.50 per day also applies to situation whereby the producer fail to install metering equipment within the time required to do so by the DPR; or fail to agree to enter into a concession agreement with a permit holder.

The regulation also added that, “In the event of the continued failure of the producer to comply with any of the requirements of this regulation, the minister may direct the producer to suspend the operations or revoke any Oil Mining Lease or marginal field awarded to the producer.”

The new regulation further requires gas producers to maintain daily log of flaring and venting of natural gas produced in association with crude oil and submit

The new gas flare regulation stipulates that in the case of any organisation producing 10,000 barrels of oil or more, the gas flare penalty had been increased to $2 per thousand standard cubic feet of gas and, in the case of anyone producing less than 10,000 barrels of oil per day, it had been increased to $0.50 per thousand standard cubic square feet of gas, irespective of whether it is routine or non-routine flaring.

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COVER same to the Department of Petroleum Resources.

According to the document, all gas flare logs must be based on data retrieved from metering equipment installed at the various producers’ facilities, while the logs must be kept by the producers in safe custody for no less than 36 months The Nigerian National Petroleum Corporation (NNPC) remained the sole importer of Premium Motor Spirit (PMS) also known as petrol throughout 2018, as major and independent oil marketers continued to shun the importation of the commodity.

The NNPC was able to ensure stable supply of the commodity throughout the year, and had to bear the brunt of the non-deregulation of the downstream petroleum sector, incurring the cost of subsidizing the commodity, now called under recovery.

Also, within the year, the Federal Government also signed a Memorandum of Understanding with the Republic of Niger, for the Niger-Nigeria Hydrocarbon Pipeline and Refinery Projects, as well as the inauguration of the Steering and Technical Committees.

The agreement was part of the strategies to reposition Nigeria’s oil and gas industry. The proposed projects for the construction of crude oil pipelines from Republic of Niger to Nigeria and establishment of new refinery at a border town in Nigeria is envisaged to be wholly private sector-financed and the proposed crude oil export from the Republic of Niger and construction of refinery facilities posit immense benefits and opportunities for Nigeria.

The Federal Government listed the benefits to both countries to include improved economic activities and bilateral relations between Nigeria and Republic of Niger; generation of more employment for the citizens and petroleum product availability in Nigeria and Niger on structured legal framework.

It further stated that it would ensure less carnage on the roads and prevent deterioration and damage to the road infrastructure; foster the development of small and medium scale industries through backward and forward linkages; Socio economic development of the rural areas through provision of social

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Ibe Kachikwu amenities by the refinery developments and fostering of downstream value chain business opportunities, among others.

According to the Federal Government, the refining opportunity in Nigeria is a great initiative, with its impact transcending economic gains for investors and entrepreneurs asides the potential contributions to national development.

It added that the projects will increase trade between Nigeria and Niger by giving access to each other’s markets and opening the markets to other successful industries which will create additional jobs.

At separate times, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu and the Group Managing Director of the NNPC, Mr. Maikanti Baru visited the headquarters of oil majors and canvassed increased investment in the Nigerian petroleum industry. These visits led to the signing of various memoranda of understanding promising increased investment in the Nigerian petroleum industry.

Also, in the course of the year, the Nigerian Liquefied Natural Gas (NLNG) awarded the contracts for the Front End Engineering Design (FEED) of its planned plant expansion project, Train 7, to B7 JV Consortium and SCD JV Consortium.

This was part of its plans to inch closer to realising its expansion goals of increas-

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

Also, within the year, the Federal Government also signed a Memorandum of Understanding with the Republic of Niger, for the NigerNigeria Hydrocarbon Pipeline and Refinery Projects, as well as the inauguration of the Steering and Technical Committees.

COVER ing liquefied natural gas production output from 22 Million tonnes per annum (MTPA) to 30 MTPA. The NLNG said a completed FEED process will pave way for Engineering, Procurement and Construction (EPC) pricing and bidding processes which are pre-conditions for Final Investment Decision (FID).

The consortia, B7 JV Consortium comprising American company KBR Incorporated, Technip of France and Japan Gas Corporation (JGC); and SCD JV Consortium, made up of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, will participate in the Dual FEED Process and produce a Basic Design Engineering Package (BDEP) that will determine their EPC pricing, and eventually their bids to construct the train.

Speaking on the Dual FEED strategy, Managing Director and Chief Executive Officer of NLNG, Mr. Tony Attah, said “The Front End Engineering Design is the most crucial part in the build-up to the actualisation of Train 7, after some delay and lost opportunities to reinforce Nigeria’s position prominently on the global energy map.

“Typically, FEED takes about 9-12 months but we have explored another strategy for this project by adopting the

Dual FEED Process which awards this crucial part of the Train 7 project to two prospective engineering consortia, instead of one contractor. What this does for us is give us a degree of freedom to start FEED and sometime after, EPC Bidding, with both activities overlapping. We remain committed to taking FID as soon as these processes are complete.”

The Federal Government continued to strive towards increased Liquefied Petroleum Gas (LPG) utilisation, while it also ventured into partnership with state governments and other investors for renewable energy production.

In the year under review, Kachikwu was re-elected the president of the African Petroleum Producers Organisation (APPO), while Nigeria enjoyed exemption from the global crude oil output freeze pushed by the Organisation of the Petroleum Exporting Countries (OPEC).

Nigeria continued to play a major role in OPEC politics, as well as in the global crude oil and gas arena.

The NNPC also achieved progress in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, when it secured the assurances of China National Petroleum Corporation (CNPC) of its unflinching commitment towards securing funding for the successful financing and subsequent

execution of the Ajaokuta-Kaduna-Kano (AKK) pipeline project.

The AKK pipeline at completion, is expected to deliver gas to the planned Abuja, Kaduna and Kano power plants which would generate additional 3,600 megawatts (MW) to the national grid.

The AKK gas pipeline would enable connectivity between the East, West and North that is currently non-existent. It would also enable gas supply and utilization to key commercial centres in the Northern corridor of Nigeria with the attendant positive spin-off on power generation and industrial growth.

The NNPC noted that financing for the 40-inch by 614 kilometers AKK gas pipeline is expected to cost about $2.8 billion, for a project described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria.

It added that while 85 per cent of the money was expected to be funded by the financiers which include Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency (ECA) will be providing insurance cover, the remaining 15 per cent will be provided by the contractors, which include Oilserve/Oando consortium, as well as Brentex/China Petroleum

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OIL&GAS

Apart from the these major milestones, which was mainly on the part of the Federal Government, the NNPC and its subsidiaries, a slowdown was recorded in the general petroleum industry.

Agip had planned to achieve first oil production by 2020 and was determined to start the execution of the project in the fourth quarter of 2017.

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Pipeline (CPP) Bureau consortium.

Apart from the these major milestones which were mainly on the part of the Federal Government, the NNPC and its subsidiaries, a slowdown was generally recorded in the petroleum industry.

The slowdown in the industry had been attributed to uncertainty surrounding the forthcoming elections and the non-passage of the remaining segments of the Petroleum Industry Bills, PIB. A number of projects were deferred and there had been widespread delay in reaching Final Investment Decisions (FID) on a number of projects in the sector.

Major oil projects that with pending FIDs include the 225,000 barrels per day (BPD) Bonga Southwest-Aparo project; 120,000bpd Zabazaba-Etan project; 140,000bpd Bosi project; 110,000bpd Uge project and 100,000bpd Nsiko deepwater project.

Other projects in this category include the Anyala (OML 83) and Madu (OML 85) fields in shallow water off the East Central Niger Delta, the second phase of the Escravos Lagos Pipeline and the Aja-

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

okuta-Kaduna-Kano gas pipeline, among others.

These projects, whose FIDs were supposed to be taken before the end of 2018, were estimated at over $50 billion, and were expected to help boost Nigeria’s crude oil reserves to 40 billion-barrel and also grow the country’s crude oil production to four million barrels per day (bpd).

Another project is the Offshore Processing Licence (OPL) 245, which was expected to be jointly developed by the Nigerian Agip Exploration Limited and Shell Nigeria Exploration and Production Company (SNEPCo) at a cost of $13.5 billion.

Agip had planned to achieve first oil production by 2020 and was determined to start the execution of the project in the fourth quarter of 2017.

Apart from other challenges, the oil well, with proven reserves of 560 million barrels of oil, had been the subject of a corruption probe and prosecution in Italy and Nigeria.

FID for the 225,000bpd $10 billion Bonga South West-Aparo deepwater

OIL&GAS

project was targeted for 2018, with first oil expected in 2022.

The asset is located in Oil Mining Licence (OML) 118 but also extends to OMLs 132 and 140. However, Shell had attributed the delay in attaining FID on the fact that it was still exploring more efficient and cost-effective ways of implementing the project.

For Bonga South West-Aparo, Shell said FID was delayed to allow SNEPCo and its co-venture and government partners explore more efficient and cost-effective ways of implementing the project.

It assured that a new timeframe for FID would be announced as soon as the necessary commercial framework for the investment, among other things, is agreed upon with its partners.

This is the story of the Nigerian petroleum industry in 2018, however, the coming year is filled with hope, and the Federal Government had identified initiative that would drive the Nigerian petroleum industry in the coming year.

Specifically, Kachikwu said efforts must

be renewed towards attracting capital into the petroleum industry to help address the infrastructural challenges recorded in the industry, among others.

He said, “If we do not take steps to attract the very little capital that is out there in the diaspora, for investment in gas plants, in gas investment and they all fizzle out into the new emerging economies in Africa, who are beginning to find gas almost everyday, we would be going to a point where we would basically be stuck with having to invest our own personal money which we do not have to be able to move gas forward.”

In addition, he said, “There is a huge amount of urgency, to look at policy again and not get stuck with policy directions that would not move gas forward. We have worked very hard on policy. We have the Nigerian Gas Policy and other previous policies that we have rehashed together to have a better focus.

“We have also done a lot of work in terms of gas flare, we are beginning to open up our fields so that we can deal with gas flare issues; we are also looking at making LPG available across the whole country. Those are policy push.

“But the key element is the funding some of these policies. Most times we do not have the funds to push them forward and the private sector have not bought into the fact that going forward, gas is going to be the beautiful bride in the room.

“We also need to find a way of decoupling gas, so that gas on its own can stand as a profitable investment.”

Also commenting, the immediate past president of the Nigerian Gas Association, NGA, and Chief Executive Officer, Frontier Oil, Mr. Dada Thomas, disclosed that the approved gas policy, when supported by appropriate legislation, especially the Petroleum Industry Fiscal Bill, PIFB, would galvanise the Nigerian gas industry which in turn has the potential to galvanise the West African Gas industry. In addition, he said, “I believe that gas should be viewed from a regional and not just national perspective. It is indisputable that the countries in the West African region and the ECOWAS community are intimately linked to each other in many different ways.

“Thus, there is a need to initiate the dialogue at the national and business levels of how to develop a West African

Regional Gas Master Plan that would serve as the roadmap for each member country to develop or modify and roll out its own Gas Master Plan.

“The West African Gas Pipeline is a good example and platform upon which to scale such plans. Recently the Federal Government of Nigeria announced the plan to build the Nigeria-Morocco Gas Pipeline. These are all very encouraging initiatives and I support initiatives such as these that would allow the development of a West African Regional Gas system, infrastructure and market.”

Speaking in the same vein, Baru said going forward, the NNPC had identified key gas development projects to forestall any shortfall at least in the medium term.

He said, “This we termed the ‘Seven Critical Gas Development Projects (7CGDP)’. These projects are an integral leg of the gas development strategy designed to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.”

He listed the projects to include the 4.3 trillion cubic feet (Tcf) Assa North/ Ohaji South field; the 6.4 Tcf Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); the 7 Tcf NPDC’s OML 26, 30 and 42.

Others are the 2.2 Tcf Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; the cluster development of 5Tcf in OML 13 to support the expansion of Frontier E & P Uquo Gas Plant; and the cluster development of 10 Tcf Okpokunou/ Tuomo West in OMLs 35 and 62.

Baru said these projects would deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020 on an accelerated basis.

He added that these projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.

From the foregoing, 2018 had been uneventful, but it is expected that 2019 holds immense promises for the Nigerian petroleum industry.

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PHOTOGALLERY 3rd Africa Oil and Gas Talent Summit 2018 held at Four Points by Sharton Hotel Lagos

Flag off Ceremony of NCDMB Sponsored Training at Charkins Maritime Academy, Port Harcourt

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ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

Highlights of OTL Africa Downstream Week at Lagos Oriental Hotel

Consistent Energy Limted won an Award in the Commercial Category of Nigeria Energy Awards in recognition of theirW achievements in the areas of Clean Energy, Energy Efficiency and Sustainability

ORIENT ORIENT ENERGY ENERGY REVIEW REVIEW Vol.8 Vol.8 No. No. 1010October, October, 2018 2018

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INDUSTRY NEWS

NNPC’s swap contracts extended till June 2019

By Chibisi Ohakah [Abuja]

N

igerian National Petroleum Corporation [NNPC] has extended its crudefor-product swap contracts until June 2019. The crude for product swap is Nigeria’s main avenue to meet the bulk of its fuel needs.

The swap contracts currently account for about 70% of Nigeria’s imports, while 30% is done through the spot market.

Known as Direct Sale Direct Purchase, the swap contracts came into effect in July last year and were due to end after one year. But they were extended once earlier this year to December.

The NNPC paired up foreign trading

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firms with local partners to do the swaps.

The contracts allows international oil trading companies [IOCs], including international trading houses and indigenous firms, to lift crude oil in return for the delivery and supply of petroleum products under the direct sale of crude oil and direct purchase of petroleum products model.

In a report last weekend, Reuters stated that despite having a refining capacity of about 445,000 barrels per day, Nigeria’s refineries have been underperforming for years, making the country almost wholly dependent on imports to meet its domestic petrol and diesel needs.

Nigeria’s petrol consumption is about 40 million litres per day. The country became increasingly reliant on the NNPC

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for fuel imports via swaps after a currency devaluation and recession in the last few years, which priced independent importers out of the spot market.

The corporation was said to be separately in advanced discussions with some of the swap contract holders to invest in rehabilitating its refineries. Two consortiums were picked earlier this year but ironing out the financing of the projects has been slow, sources said.

According the report, the list of the 10 DSDP groupings comprise Trafigura and AA Rano; Petrocam and Rainoil/ Falcon; Crest Mocoh and Heyden; Cepsa and Oando; Sahara and SIR; Mercuria and Matrix/Rahmaniya; Socar and Hyde; Litasco and MRS; Vitol and Varo, and Total and Total.

INDUSTRY NEWS

FG approves IkweOnna modular refinery in Akwa Ibom

By Chibisi Ohakah [Abuja]

T

he Department of Petroleum Resources (DPR), has approved the construction of Ikwe-Onna Modular Refinery in Ikwe, Onna local government area of Akwa Ibom state.

The project estimated to cost about $60 million has a refining capacity of 5,000 barrels per day, and would be completed in November, 2019.

An Approval To Construct (ATC) license dated October 15, 2018 was issued following the satisfactory attainment of the requirements for the license, a close NNPC source told Orient Energy recently in Abuja. In Nigeria, there are three stages of licencing for the establishment of private refineries: Licence to Establish (LTE), Approval to Construct (ATC) and Licence to Operate (LTO).

The ATC licence enables the refinery

investor to commence on-site construction of particularly the refinery storage tank farm, mechanical, electrical and other installations, office complex and control room, power plant installations, as well as pipelines. These would last till October 2019, according to the project schedule. Thereafter, the company would be due to apply for the LTC and commence production.

The source said that the licensing of the Ikwe-Onna Modular Refinery in Ikwe, Onna local government area of Akwa Ibom state is part of federal government effort to increase local refining capacity and stop petroleum product importation.

Over 20 licenses to establish modular or mini refineries have been issued in this regard.

Minister of state for Petroleum Resources, Dr. Ibe Kachikwu, recently performed the ground breaking of a 5,000 barrel per day (bpd) modular refinery

owned by Waltersmith Refining and Petrochemical Company at Ibegwe in Ohaji, Imo State. Two other modular refineries: OPAC Refinery in Umuseti, Kwale in Delta State and the Niger Delta Petroleum Resources Refinery, Ogbelle, in Rivers State, which have a combined 17,000 barrels per day capacity, are also expected to be commissioned in 2019/2020.

Minister of state for Petroleum Resources, Dr. Ibe Kachikwu, recently performed the ground breaking of a 5,000 barrel per day (bpd) modular refinery owned by Waltersmith Refining and Petrochemical Company at Ibegwe in Ohaji, Imo State.

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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INTERVIEW

‘Don’t Go thinking I am a Woman’ Wonuola Adetayo is a wife, a mother, an award-winning professional and a career woman with many landmark achievements on her career path. With about 30 years of combined work experience in marketing, capacity building and consultancy, Wonu has traversed around different industries and sectors providing organisations and their personnel the needed training to remain relevant in a fast-changing world.

Her love for knowledge transfer in strengthening skills, instincts, abilities, and processes, led her to establish her first company - Softskills Ltd. She is an author, a co-founder and Chief Executive of Kainos Edge Consulting Ltd. As part of her innovative approach to sustainable human capital development, Adetayo also 36

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

created a mentorship platform/ company “Yes to 30”, where she mentors youths and upcoming professionals.

Wonu as she is fondly called has held Senior Executive positions in bluechip companies, served as a Director on the Board of the Nigerian Economic Summit Group (NESG), Honeywell Flour Mills and a founding member and the Vice-Chairman, Oil and Gas Trainers Association (OGTAN), among others.

In this interview with Peace Obi, Adetayo said that women who wish to succeed in their career path whether male-dominated field or not must eschew sentiments, entitlement syndrome, and strive for excellence in their chosen field. Excerpt.

INTERVIEW the country working with non-Nigerians, largely and still got a promotion. So, for love of country, I came back. For me, I had the option to stay over there. They wanted to retain me and there were offers to even start a company with others but I remember my father saying, “look, if you are so good over there, definitely your country needs you”.

So, I came back.

I came back as Marketing Director, UAC Foods. From there, I also was appointed to the board of CAP Plc as a Marketing Director before I ultimately became a Managing Director. During this 17 years, I kept on teaching and training at the UAC Training School, at the Lever Brothers West Indies Training School but I was doing all of these for free.

Tell us about yourself and your journey so far in your career?

My name is Wonu Adetayo. I have a number of passions. First is knowledge impartation. The second is developing people and the third is developing nations and institutions. So, by virtue of that, I started my career in Unilever/UAC and I worked my way through the ranks to the pinnacle of my career in that place as a Managing Director, UAC Pharmaceuticals, and Personal Products.

Could you share with us a briefly your experience in your earlier days?

During my journey there, I also worked as an expatriate in Lever Brothers West Indies and ToSbego for about three years as a Group Marketing Manager. Now, that made me realise that skills are not necessarily environmentally sensitive. In the sense that I left this country and I performed meritoriously outside of

What motivated you going into the capacity building?

When I finished the 17 years career, I asked myself, what gave me the greatest pleasure and I realised that my joy actually comes from knowledge impartation. And that was when I decided that it was best I go into a career that offered me an opportunity to impact lives. So, as you build people, they will go back and build people in their companies as well as build institutions. So, that was how I got into consulting,

When I finished the 17 years career, I asked myself, what gave me the greatest pleasure and I realised that my joy actually comes from knowledge impartation. And that was when I decided that it was best I go into a career that offered me an opportunity to impact lives

focusing largely on soft skills.

How did you get into OGTAN and how deserving is the honour?

The same way! The today’s NCDMB was just starting the local content agenda. They invited trainers; there and then they formed us into Oil and Gas Trainers Association. And I tell you, for almost 10 years, we spent our money on this board. We never took a dime, we got the association registered; we used our money to fly up and down the place. In fact, right now, the OGTAN Secretariat is in our company – completely given for years. For the love of developing human capacity, myself, my chairman and those of us that formed the Board of Trustees, were able to establish OGTAN to a point where we felt it was safe to hand over to the younger generation and let them take it to the next level. That was our own sacrificial contribution.

So, what you are seeing today is like saying, “Hey! These are a responsible bunch of people who deemed it fit to use their sweat, blood, and tears set up this body, let’s honour them!”

So, we appreciate the fact that they chose to honour us. We never thought that one day we are going to become Fellows because it was my pleasure and passion to build people, to build nations and to build institutions. So, that is the journey so far.

At what point in your career did you discover the interest and passion for training?

It is probably around 1999 or 2000.

This was after my 17 and a half years of career. I had gotten to the peak of my career. If you have gotten to the position of the MD, what else are you looking for? And I was asking myself, “so, what next? What is it that will give me joy that even if I am not paid a dime, I will love to do?” And I suddenly looked and saw that there was this gifting, this calling to teach, to train, to inspire, to call the best out of people.

When I heard that clearly, I knew that the next line of action for me was to go into the capacity building.

Building the capacity of people; helping to unleash the hidden potential in people. And once they do that, they

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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INTERVIEW go back and increase the capacity of their organisations and ultimately, nations.

How did you find your way into the oil and gas industry as a trainer?

You know sometimes destinies will appear coincidentally. But I believe that the steps of the righteous are ordered

by God. Like I said earlier, the Nigerian Content Bill had just been passed. Engr.

Nwapa then was working in NNPC and I happened to be one of the trainers for NNPC. They had invited interested training organisations to show up and I showed up. Then my company was on soft skills. Professor Mike and several others were around.

It was at this meeting that the conveners told us what they wanted. We were told to harmonize ourselves and have an umbrella body for those providing training in the country’s oil and gas industry.

So, Professor Mike was asked to head the body and that I should support him.

So, we registered the company, we set up a constitution. We were meeting all over the place - in Abuja today in Port Harcourt tomorrow. We were investing our personal funds and this is how OGTAN was formed. We actually registered OGTAN and started approaching the OICs and other companies. We kept going back to PTDF, to NCDMB and we said to them, “we can make this work!”

So, it started as a coincidental thing but because it sits well with my passion, it was a lot easier for me to sacrifice and do what I did. It is like what I do for the Nigerian Economic Summit Group. I have been with NESG for 15 years or thereabouts and we are not paid to serve.

I just love to serve.

The thing is that in Nigeria, we complain a lot. I am always more concerned with how do we solve problems and how I can help fix it in my own little way. That is why you heard Oby Ezekwesili say that “she is working behind the scenes”. For me, my priority is whatever little efforts we can make in fixing it, let’s all do and stop complaining; let’s find a way and be part of the solution. So, being part of the solution took me to OGTAN, it took me to NESG and a number of others.

You have achieved a lot and the accolades speak for itself as an outstanding

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mum, wife, a woman of God, and a professional, how have you been able to cope to bring all of these offices together?

First of all, I honestly think it is the grace of God. There is no inherent capacity anyone of us can boast of except that which is given of God. However, for some women that may insist, “Tell us the steps; don’t just tell us it’s the grace of God.” I will say that it takes a lot of sacrifices. It takes a lot of wisdom, ie. knowing what should be your highest priority at any point in time.

For me, the balancing act is knowing where to channel your energy at any point in time. Don’t try to do 20 things at the same time. So, I will say that it is just the wisdom and grace of God to know when to lift the load off on this one shoulder and put the weight on that other so that ultimately, you still can have it all.

You may not have 100% of all, but if you have 70% of the most important

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goals achieved, I think that is good. But honestly, you will have sleepless nights.

People are going to take a look at you and call you all kinds of names. When I was in my career, people thought I was too ambitious. When I carried files home they wondered why. But for me, everything is interwoven – my family, the business, the ministry all are interconnected.

You need support systems to depend on. You have friends, husband and parents to depend on, etc. Don’t try to say, “I am a superwoman”. There is no such thing; it is the grace of God but take advantage of all the support systems that nature has created around you.

How were you able to deal with the competition from men? Have you ever felt sidelined for being a woman or are there opportunities you wewere denied on account of gender?

For me, the first thing is never to allow the issue of gender to enter into your mind-

INTERVIEW set. I never entered my career, OGTAN or anything I did from the gender perspective.

Once you allow gender to enter into your psyche, you have already shortchanged yourself. Why? Because it is going to start telling you, “okay because I am a woman, you should understand with me.” I entered into the career as a human being because as far as I am concerned, a woman is a man plus womb. The only thing different between us and the men is that we have the womb to carry children. Don’t use your gender as an excuse; don’t use your gender as an entitlement syndrome to say, “Oh, they should understand now I am just having my children”.

So, I think the atmosphere is ripe now for every woman to go out there and crash the glass ceiling. But more importantly, I also don’t want to give the impression that those who chose not to go the career way but to nurture their children are not in any way inferior. We shouldn’t look down on them.

It is fine! It is a world of choices! Just be clear about your calling. If your own impact is nurturing children and producing the next governors and the next presidents, please go on with it. Don’t ask every woman to go and crash the glass ceiling, it is not necessary. Not all men, by the way, are crashing the glass ceiling. So, let’s not put pressure on women.

When I was having my children, I made my arrangement. I never entered a meeting to expect them to excuse me to quickly go home because of my children, I used support systems. Where there were issues, my mum was there to support me. Where I needed to take a nanny, I did and when I needed to be by my children, I am by my children. For me, first thing is, do not go thinking I am a woman, go thinking I am a worker. When they employed you, they employed a worker, they did not say this is a male or female worker and they did not discriminate on the salaries that they are paying you because you are a male or a female.

So, once you get this clearly set in your mind that these people have engaged a worker, just ask yourself, ‘what are the requirements of a worker?’ Then tell yourself, ‘I am going to do my best to meet those requirements and if possible, beat everybody hands down to show that I have what it takes to do it.

But were we discriminated against? Absolutely! When I got into the career space, every other woman that made it in her career either had lost the family, divorced or they never married. That was really, really a very bleak situation, but I never let that affect me. I believed that I could have my job, I could have my marriage, and I could have a career. So, I think the first thing is to sort it out psychologically and then the rest will fall into place. Don’t use your gender as an excuse, you can do it.

Fortunately, the environment is more family and gender-friendly now. A lot of people are now caring and asking why is a woman not there? For me, this is actually the best time when women should get out there and show to the world that we have the brain, we have the strength, the wherewithal, the wisdom even the compassion to be better managers than men.

You left UAC to establish a company, “Soft Skills”, why the emphasis?

Yes, my first company was called “Soft Skills”. I ran it for over a decade. Our focus largely was on non-technical skills because we realised that you can have all the technical skills in the world, it will never make you a good leader. Often times, leaders crash when they are promoted beyond their competence. We focus more about managing the people and it is about emotional intelligence, it is about coaching, it is about mentoring. Also, I saw that throughout my 17 years career, trainers and administrators were not I focusing on soft skills – those things that can make you lose your job even if you are technically competent. So, that is what we did for about 10 years.

Now, our company is called “Kainos Edge Consulting Ltd”. We merged with Edwards Kingston, an economic research firm. That way, we are able to have two offerings to the market. One will help you see the existing opportunities in the marketplace through research, then, through the soft skills, we give you the capacity to take advantage of those opportunities.

At the point of switching your career to building soft skills in workers, how ready was the market for your kind of services?

Can I tell you that sometimes, you need to create the market? I don’t think the market existed. In fact, the first person that I showed my business plan said, “soft skills, what is that one?” and I said to him, “I don’t understand what you are saying, but what my heartbeat says.” When I joined OGTAN, there was nothing like soft skills but now our people are realising the importance.

So, sometimes, you need to go into what appears a non-existing market and you create the space. I believe we created the space. If by now we are able to enter into the most technical area i.e oil and gas. That is how I was able to get in and become vice

chairman. People would have said, “what is your business in oil and gas?” But now, we have achieved our purpose which is to make the world know that you cannot be a well-rounded leader simply based on technical competence. You need to get some soft skills.

What is your advice for the upcoming women who may aspire to step into your kind of shoes?

My advice is this: We have started what we call, “Yes to 30” which is devoted to mentoring ladies below the age of 30. So, we link them up with virtually senior executives so that they can learn the lope with them. My advice to the young people is: “don’t rough it as we did, find a mentor, find someone whom you think models what you want to do.” It may not be the exact thing, something that looks like what you want to do. Approach the individual and say, “would you mind being my mentor?”

Fortunately, the environment is more family and genderfriendly now. A lot of people are now caring and asking why is a woman not there?

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ENERGY

Limited access to electricity worsening poverty situation in Nigeria – NAEE Peace Obi

T

he Nigeria Association for Energy Economics (NAEE) has said that citizens’ low access to electricity has worsened the poverty situation in the country.

The Association disclosed data obtained from the Trading Economics 2018, showed that over 40 per cent of Nigerians do not have access to electricity.

Speaking at the 2018 World Energy Day in Abuja, the President of NAEE, Prof. Wumi Iledare disclosed that poor access to electricity would undoubtedly leads to diminished social and economic status of any country.

He said, “For instance, studies have shown that countries with low access to energy tend to have low access to modern energy services. Additionally, lack of access to modern energy services tends to limit households’ purchasing power potential from income generating opportunities.

“Thus, without access to adequate

Prof. Wumi Iledare electricity and modern forms of energy services, it may be difficult to evolve low-income economy, promote economic growth and employment as well as support human development.”

Speaking further, Iledare called for amendments to the 2005 Electric Power Sector Reform Act that will enable energy regulatory bodies and policy institutions function with zero tolerance to political

Nigeria has lost $10bn revenue in 18yrs to obsolete hydrocarbon laws – senate 40

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

interference. “Let me offer some way forward to attaining sustainable and affordable access to electricity in order to derive maximum energy services required for sustainable economic growth and development in Nigeria.

“This begins with a review and perhaps some amendments to the 2005 Electric Power Sector Reform Act with respect to sections on institutions and governance as well as market reform. There is a need to avoid overlap among energy regulatory and policy institutions and NERC (Nigerian Electricity Regulatory Commission) must be allowed to function as an institution with zero tolerance to political interference.

“NERC must be apolitical. Lessons can certainly be learnt from the apolitical nature to a large extent of the regulatory authority of the Central Bank of Nigeria to regulate financial institutions in Nigeria with its absolute power to manage money supply in the economy. Although there are still some disturbances in the conduct of financial market in Nigeria, they are a far cry from the huge disturbances in the electricity market.”

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he Chairman, Senate Committee on Petroleum Resources, Upstream, Donald Omotayo Alasoadura, has said that Nigeria has lost no less than $10 billion revenue in the last 18 years due to obsolete laws in the sector.

Alasoadura, the senator representing Ondo Central Senatorial District, stated this Thursday in Akure, Ondo State while delivering the 12th Annual Lecture of the School of Engineering and Engineering Technology of the Federal University of Technology, Akure (FUTA).

INDUSTRY NEWS

NEITI, CAC set to unveil nigerian oil well, mining asset owners in 2019 Peace Obi

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ecember 31, 2019 has been set by Extractive Industries Transparency Initiative (NEITI) and Corporate Affairs (CAC) to release a comprehensive register of beneficial owners of oil wells, gas and mining companies in Nigeria.

The Executive Secretary, NEITI, Dr. Waziri Adio, disclosed this in Abuja at a one-day stakeholders’ engagement meeting on the implementation of the beneficial ownership roadmap in extractive industries in Nigeria.

According to Adio, the move would help entrench transparency and accountability in the extractive sectors; adding that such information will enable Nigerians to know the real persons having significant influence directly or indirectly in the nation’s extractive sectors.

“We are going to have the register of all the companies operating in Nigeria by December 31, 2019. A lot of discussions have been going on both at the level of the EITI and at the level of the Open Government Partnership (OGP) and the Corporate Affairs Commission (CAC). We have had a lot of discussions. We need to stop talking; we need to start acting,” he said Speaking further, the Executive Secretary

Dr. Waziri Adio noted that allowing the ownership of such investments to be shrouded in secrecy could encourage sponsorship of conflict, terrorism, money laundering, and drug financing.

He noted that such act could benefit only the minority elite in the country.

“We know that hidden ownership can be used as a mast for conflict of interest; it can be used as a mast for abuse of office; it can also be used to facilitate corruption; it can be used to facilitate tax evasion, it can also be used to perpetrate money laundering, drug financing and terrorism financing,” Adio added.

The ES, however, expressed concerns about the challenges of adopting beneficial

ownership disclosure in Nigeria. He has concerned ranged from lack of legislation on beneficial ownership disclosure; low level of awareness on the issue, and lack of capacity and readiness to comply with the disclosure of beneficial owners.

Also speaking at the forum, the Director, Legal and Compliance, Corporate Affairs Commission (CAC), Alhaji Garba Abubakar, explained that the fact that Nigeria has no register of beneficial owners does not mean that the laws do not allude to it.

Abubakar revealed that there were sections of the Company and Allied Matters Act (CAMA) that compel businessmen to disclose their shareholders and the capacity of ownership of the shareholders.

He said the commission was proposing a law that would make it mandatory for companies to disclosure their beneficial owners, noting that “already, we have designed the beneficial owners’ form register.”

“Disclosure of beneficial owners has been one area that Nigeria has recorded non-conformity. People whose original interest is to hide will never comply with this,” he said.

According to him, the register which might have some challenges arising from coincidence of name would however, have the date of birth differentiating the owners of the companies throughout country.

Alasoadura said the present law in the petroleum sector was passed in 1950 and is ineffectual. He said the country may lose more if the four bills presented before the National Assembly are not passed and assented to by the president.

According to the senator, the four bills before the National Assembly, which aim to reform the oil sector, included Petroleum Industry Governance Bill, Petroleum Industry Administration Bill, Petroleum Industry Fiscal Bill and Petroleum Host and Impacted Communities Bill.

Source: THIS DAY

ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

41

INDUSTRY NEWS

NIDAS, NNPC Subsidiary, Returns to Global Oil Shipping Market … Firm to benefit from DSDP, Crude Oil Term Contracts Freight deals

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he Nigerian National Petroleum Corporation (NNPC) has announced the re-entry of its subsidiary, NIDAS Shipping Services, into the international shipment of crude oil and petroleum products, seven years after falling out of reckoning in the global oil freighting trade.

NIDAS’s re-entry is in tandem with the ongoing strategic re-engineering of some NNPC subsidiaries to ensure multiple income streams and value addition to the corporation in line with the aspiration of the corporation’s Group Managing Director, Dr. Maikanti Baru, a release by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, has stated.

The corporation explained that as a first step to regain its market position, NIDAS has established a robust chartering and operation desk in its UK office to help the company secure sea-going vessels from spot market to herald its market re-entry and foster strong competitive edge.

Already, the company’s presence is generating some positive traction in the international freight space as global tanker fixture’s report last week acknowledged the chartering of LRI tanker, MV Atlantica Bridge by NIDAS to load jet fuel from El Dekheila Port, Egypt for delivery to Nigeria for Duke Oil.

subsidiary the right of first refusal in freighting of cargoes.

The fixture report also captured NIDAS booking of tanker Res Cogitans to load Mercuria’s gasoline cargo for early-November loading from Europe’s ARA (Amsterdam-Rotterdam-Antwerp) region to Offshore Lagos.

NNPC said that as part of strategy to ensure effective participation in the entire supply value chain, NIDAS would optimize right of first refusal offer in the NNPC annual crude oil term and Direct-Sale-Direct Purchase (DSDP) agreements with off-takers.

Under the terms of the deal, the off-takers are obligated to offer the NNPC shipping

The long-term aspiration of the company is to own and operate fleet to secure a significant market share in the global shipping market.

Mr. Ughamadu said the development was part of the GMD’s 12 Business Focus Areas (12BUFA) which he unfolded when he took over the leadership of the corporation in 2016.

Incorporated in 2007 as a Joint Venture between NNPC, Daewoo Shipbuilding and Marine Engineering Company Limited (DSME), NIDAS is presently a wholly owned subsidiary of the corporation.

Subsequently, a Board of Directors was inaugurated by the GMD with Engr. Henry Ikem Obih, Chief Operating Officer Downstream, as chairman, while Mr. Lawal Sade was appointed Managing Director with mandate to drive the turn-around process and effective re-entry strategy of NIDAS into the international oil shipping business.

NNPC said that as part of strategy to ensure effective participation in the entire supply value chain, NIDAS would optimize right of first refusal offer in the NNPC annual crude oil term and Direct-SaleDirect Purchase (DSDP) agreements with offtakers.

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ORIENT ENERGY REVIEW Vol.8 No. 10 October, 2018

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