Sweetcrude December 2018 Edition by Sweetcrude reports

Nigeria records 101 shut-in fields, 184 producing in 2017

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Shell discovers 1.5tcf of gas, 42mb condensates in 4 years /17

A Review Of The Nigerian Energy Industry facebook.com/sweetcrudereports

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DECEMBER, 2018

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Shell abandons the Niger Delta Shuts production in 25 fields Moves key depts from Port Harcourt to Lagos OMLs 11, 17 up for sale

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64 62 60 58 56 54 52 50 48 46 44 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 July-18 Aug-18 Sep-18 Oct-18 Noc-18 Dec-18

NNPC says no fuel scarcity, 2.6bn litres of PMS in store

agos -- The Nigerian National Petroleum Corporation, NNPC, has allayed fears of possible fuel scarcity as the festive season approaches, assuring Nigerians that it has a total of 2.6 billion litres of Premium Motor Spirit, PMS, popularly known as petrol, in store across the country. The clarification came following a strike threat by oil marketers to the Federal Government over unpaid N800 billion subsidy arrears, which, according to the marketers, might lead to fuel scarcity if unpaid. Chief Financing Officer,

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A Shell oil facility in the Niger Delta OPEOLUWANI AKINTAYO & MKPOIKANA UDOMA

agos/Port Harcourt -After over 60 years of oil exploration and production in the Niger Delta, the

Nigeria is 11th among nations with largest proven oil reserves P/15

Royal Dutch Shell is gradually abandoning the region, leaving the economy of the area in ruins. Leaving the Niger Delta hollow

Information available to this newspaper showed that the international oil company which began oil exploration in the country in the 1900s and discovered oil in Oloibiri in the

Nigeria to partner other African countries on â&#x20AC;&#x2DC;safe oceanâ&#x20AC;&#x2122; P/35

current Bayelsa State in 1956, has since 2017 shut production in 25 oil fields. It has now put up two major assets, Oil Mining Leases, OMLs, 11 and 17, for sale. Ordinarily, this move would not have elicited concern especially since any company is free to buy and resell its assets but stakeholders have expressed fear and anxiety in what appears to be

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2018 December, SweetcrudeReports

Editor’s note

he international oil company, Shell is abandoning the Niger Delta region. Since 2017, the company has shut production in 25 oil fields in the region. It has now put up two major assets, Oil Mining Leases, OMLs, 11 and 17, up for sale. There is also the other issue of the Shell Nigeria Exploration and Production Company, SNEPCO, relocating its Logistics and Supply Base from the oil and gas free zone in Onne, near Port Harcourt to Lagos. To compound matters, the Shell Petroleum Development Company, SPDC, has moved its Procurement and Accounting Departments from its Port Harcourt headquarters to Lagos following a directive to that effect by the company's top hierarchy. If there was any doubt that the company was divesting from the Niger Delta, these actions clears the air on the intentions and motivations of Shell – the abandonment of the Niger Delta. Even Shell is not denying this: When contacted for comments on the spate of relocations, Shell Nigeria spokesperson, Mr. Bamidele Odugbesan insisted that Shell was within its right to take whatever measures it deemed necessary for its operations.

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Shell’s exit from land and swamp locations in the Niger Delta is well underway. Our cover story for this edition provides an in-depth insight into this development. Venezuela is now the world's leader in proven oil reserves. With 300.878 billion barrels, the South American country trumps Saudi Arabia, with 266.455 billion barrels. Nigeria is ranked 11th on the global oil reserves chart, according to World Atlas. The Organization of the Petroleum Exporting Countries, OPEC, member nations take up seven spots in the top 10 and 11 in the top 20. For Shell Nigeria, the news is not all about the abandonment of the Niger Delta. The company, according to information available to SweetcrudeReports, discovered 1.5 trillion cubic feet of gas and 42 million barrels of condensates in the shallow and deep reservoirs onshore Eastern Nigeria in the last four years. It is a very outstanding feat by all standards and Shell deserves as much commendation as the Nigerian state can muster. We present you all of these and more in this edition. Welcome to December, and wishing you a Merry Christmas and a most prosperous New Year in advance from all of us.

COVER Shell abandons Niger Delta OIL

Nigeria records 101 shut-in fields, 184 producing in 2017

FOCUS Nigeria is 11th among nations with largest proven oil reserves

GAS Shell discovers 1.5tcf of gas, 42mb condensates in 4 years

POWER NERC gives Discos March 2019 deadline on customer enumeration

FINANCE

Nigeria earns N1.4 tr from petroleum products in three months

LABOUR

Proposed strike by oil marketers act of sabotage - IPMAN

SOLID MINERALS

Govt offers tax holiday, other incentives to mining firms

FREIGHT

Nigeria to partner other African countries on 'safe ocean’

MOTORING 2019 Acura RDX vs. 2019 Cadillac Xt4 vs.Infiniti Qx50 Luxury SUV comparison

TECHNOLOGY Generating potable water from the atmosphere

COMMUNITY DEVELOPMENT Delta won’t support plot to disrupt oil surveillance contract – Gov. Okowa

EDITOR-IN-CHIEF Hector IGBIKIOWUBO EDITOR Chuks ISIWU ASSISTANT EDITORS Ike AMOS Vincent TORITSEJU Eluonye KOYEGWUAEHI

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2018 December, SweetcrudeReports

Cover Story

2018 December, SweetcrudeReports

Aerial view of Shell’s Bonny terminal

Shell abandons the Niger Delta Shuts production in 25 fields Moves key depts from Port Harcourt to Lagos OMLs 11, 17 up for sale

OML 17 is a large onshore license within the NNPC/Shell the multinational oil company's joint venture. The block includes strategic plan to sell assets and the northern half of Port move major operations out of the Harcourt, extending from the Niger Delta, thereby leaving the low-lying swamp northwards into region hollow, with the resultant drier terrain where the operating debilitating effect on the economy conditions are easier. There are of the region. 15 oil and gas fields on OML 17, OML 11 lies in the southeastern six of which are producing. Crude Niger Delta and contains 33 oil is exported through the Transand gas fields of which eight are Niger Pipeline to the Shellproducing as of 2017. In terms of operated Bonny Oil Terminal, production, it is one of the most according to Wood Mackenzie. important blocks in Nigeria. Although the OML 11 license is The two licenses would be now smaller than what it used to s o l d t o H e i r s H o l d i n g s be as the Federal Government Limited, a company run by had in April split the block into Nigerian billionaire, Tony three parts, giving Shell one Elumelu. There is also the other issue of portion after it sought renewal of the Shell Nigeria Exploration and the production license. SweetcrudeReports learnt that Production Company, SNEPCO, OML 17 along with some relocating its Logistics and infrastructure, including a Supply Base from the Oil and Gas natural gas-fired power plant, is Free Zone in Onne, near Port also on Shell's list of disposables, Harcourt. SNEPCo's relocation of its as talks are already in top gear to Logistics and Supply base from sell it for $2 billion.

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Onne to the Lagos Deep Offshore Logistics Base, LADOL’s yard seems to be a sharp pointer to totally crippling the region’s economy, which according to experts, thrives greatly on the activities of the Supply Base. To compound matters, the Shell Petroleum Development Company, SPDC, has also moved its Procurement and Accounting Departments from its Port Harcourt headquarters to Lagos following a directive to that effect by the company's top hierarchy. Exiting the Niger Delta would, however, not be that easy for Shell, as this newspaper learnt that the issue has been a major cause of recent controversies. Protests have erupted, the height of them being the one by a group of community women in Rivers State, who protested, vowing to storm the supply base of SNEPCO in the Oil and Gas Free Zone, Onne, naked to stall the relocation of the supply base to Lagos.

The women’s threat came three weeks after some youths under the aegis of the Onne Youths Council, OYC, staged a peaceful protest at the SNEPCO base, asking the company to rescind its decision to relocate the supply base from the free zone to Lagos. The Rivers State government, civil society organisations as well as concerned individuals have also kicked against Shell's move to abandon the Niger Delta. OMLs 11 & 17 If the sale of OMLs 11 and 17 eventually goes through, this means Shell would shift the focus of its operations in Nigeria to the deep offshore where the risks of attacks on infrastructure and oil theft are at a low ebb. Sources in the know hinted that the deal would have been concluded but for financial hurdles Heirs Holding has encountered in its attempts to raise the funds for the purchase of the assets.

When contacted for a reaction on the development and the opposition to the company's alleged plan to totally abandon the Niger Delta, Shell Nigeria spokesperson, Mr. Bamidele Odugbesan insisted that Shell was within its rights to take whatever step it deemed necessary regarding its assets. He argued that the fact that the company moved some of its departments away from Onne and Port Harcourt does not undermine its presence in the region. Shell’s pipeline in the Niger Delta has severally been subjected to attacks by oil thieves who break into the facility to siphon crude oil. The company facilities and personnel have also been subjected to attacks by militants in the region although there has been a ceasefire since early 2017. The company had been at the fore of oil and gas exploration and production in the region but it faces accusations of abandonment from the locals. Shell’s host communities have accused it of neglecting development in the region as against its other oil producing communities in developed countries of the world. This had led to tensions especially as a result of pollution, leading to crisis which escalated and drew the attention of the world when in 1995 Ken SaroWiwa, a well known Playwright and community rights advocate of Ogoni extraction was executed by the Nigerian government

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Cover

2018 December, SweetcrudeReports

Shell abandons the Niger Delta

A Niger Delta community CONTINUED FROM PAGE 4 alongside eight others. A recent statistical survey by this newspaper had found that the Shell Petroleum Development Company, SPDC’s Trans Ramos Pipeline that ruptured on May 17, had spilled 1,114 barrels of crude oil into the environment. The oil leak had impacted and polluted an estimated area of 113.03 hectares. Shell said it had recovered 95 percent of the oil, that the ruptured pipeline had been repaired and it was already negotiating remedial actions. “The rate of spills on the Trans Ramos Pipeline is very worrisome, for instance between April and May 26, spill incidents were reported on that line and out of these, 18 of them were caused by sabotage, eight were operational,” Shell’s spokesperson, Odugbesan said at the time. Shell’s activities in the region continue to face scrutiny from international organisations such as the United Nations and Amnesty International who have been at the vanguard of asking for justice for victims of oil spills. In 2011, a 260-page report by the UN’s Environment Programme said the company had run afoul of its own standards in all its years of operating in the Niger Delta and that the environmental destruction caused by its operations was worse than previously thought, creating a “tragic legacy.” As a matter of fact, locals had at

some point, blocked the company been good hosts to the company? from gaining access to some of its Or did the communities turn the company into federal, state and local governments where they channel all their demands and whatever grievances they have? It takes a "give-and-take" relationship situation to retain bluechip companies in one’s locality, otherwise, they will move to a friendlier environment. A business relationship is like a relationship in marriage. Both spouses must genuinely want the relationship to work and continue to make it work through sacrifices and good conducts”, he said. Philip Jakpor, Head, Media and Campaigns, Environmental Rights Action, said it had warned about Shell and other international oil companies, IOCs', divestment from the Niger Delta after they might have had

their fill in the region. “Shell's divestment from the Niger Delta is not all that unanticipated. ERA/FoEN had long warned that after the despoliation of the environment which has led to conflicts and loss of livelihoods, Shell and other IOCs operating in the Niger Delta will try to evade responsibility for these crimes. The divestment is a fulfillment of what we foresaw”, he said. Jakpor added that the devastation caused by Shell is both onshore and offshore. He asserted: “The devastation of their activities are both onshore and offshore. Onshore, we see oil polluted farmlands, streams, and community lands. Offshore, which largely escapes the lenses of NOSDRA and other relevant government agencies, we have these recurring cases of

We strongly feel that this is the height of insensitivity for SPDC to contemplate relocating these two key departments from the Niger Delta region to Lagos. This proposed move clearly shows that decisions in SPDC are taken by enemies of the Niger Delta region

dead whales, dead fishes washing ashore. It is now happening more frequently. Something in the water is killing the fishes. “It is not our duty to compel the IOCs to stay in the Niger Delta to do business however, our recommendations are clear: They must clean up their mess, compensate locals for the despoliation”. Rivers govt says move, political Meanwhile, the Rivers State Government has described as politically motivated the Shell movement of its key Logistics and Supply base and the Finance and Procurement departments from Port Harcourt to Lagos. Speaking exclusively to our correspondent, the Rivers State Commissioner of Information, Mr. Emma Okah said the current government in Rivers State had since assuming office, given all cooperation to the firm hence, there was no basis for Shell to move any of its departments or activities from Rivers State to Lagos. He said there is no reason this could have happened other than politics. Okah explained that the state government would do everything possible to dissuade the oil firm from its plan as such plan will not augur well for the state. He said that the state government would always protect the interest of the people of the state. "We will appeal to Shell to halt such intention, because it will

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Cover

2018 December, SweetcrudeReports

Rivers State women protest SNEPCo’s relocation of Logistics and Supply base to Lagos

Shell abandons the Niger Delta CONTINUED FROM PAGE 5 not augur well for the peace and development of Rivers State and, in fostering the good relationship between the government and people of Rivers State on one hand and then Shell on the other. “We believe that we have been partners over the years. We believe we have given all the cooperation that we need to give as government, particularly since we came on board and, so there is definitely no basis for the relocation if it is not political," he further stated. Okah said the implication of the action is that anyone who wanted to have any business dealing with the company will have to travel down to Lagos. He wondered what will be left in Port Harcourt, if the key departments like finance and procurement were moved, and added that the state government will engage the oil firm to rescind the plan.

The implication of this decision would be that contractors and any body who has anything to do with the SPDC from all parts of the Niger Delta would have to go to Lagos with the attendant economic implications on the Niger Delta economy

NNPC says no fuel scarcity, 2.6bn litres of PMS in store CONTINUED FROM PAGE 1 NNPC, Mr. Isiaka Abdulrazaq, said in Lagos that there was no need for panic over fuel supply as the corporation had 52 days of sufficient supplies. “We have 2.6 billion litres of PMS in Nigeria both offshore Lagos, Port Harcourt and Calabar as well as onshore. So, no need to panic,” he said, adding: “This is 52 days of more than enough supply at a calculation of 15 million litres per day”.

Oil marketers under the aegis of the Deport and Petroleum Products Marketers Association of Nigeria, DAPPMA, Major Oil Marketers Association of Nigeria, MOMAN, and the Independent Petroleum Products Importers, IPPIs, had issued a seven-day ultimatum to the government to pay the subsidy debt in cash or face withdrawal of service by its members from depots across the country.

Oil

2018 December, SweetcrudeReports

Oil field in the Niger Delta

Nigeria records 101 shut-in fields, 184 producing in 2017 OPEOLUWANI AKINTAYO

agos -- A total of 101 oil fields were shutin in Nigeria while 184 fields were in production as at the end of December 2017, according to data from the Department of Petroleum Resources, DPR. The agency disclosed this in its just-released Nigerian Oil and Gas Industry Annual Report, NOGIAR, 2017. According to the report, the total 285 fields shut-in and producing in the country during the period are run by 44 oil producing companies. A breakdown showed that during the year under review, Shell Petroleum Development Company, SPDC, produced in 35 fields and shut-in 25 following the shut down of its Trans Forcados and the Trans Niger pipelines due to integrity issues on the pipelines. ExxonMobil, with 35 fields in the country, produced in 20 of the fields while 15 were shut-in due to shut down of the company's Qua-Iboe Terminal, QIT, trunk line. Among other oil majors, Chevron produced in 28 fields and shut-in six for operational issues; Nigeria Agip Oil

Company Limited, NAOC produced in 25 and shut-in 13 over facility sabotage; Total E & P produced in 10 and shut-in 8 citing operational issues and s a b o t a g e , w h i l e To t a l Upstream produced its one field. Addax Petroleum produced in 14 fields, and had 8 fields shutin for contractual reasons and operational issues. For Niger Delta Petroleum Resources Ltd, NDPR, it produced in 10 fields and shutin 14 as a result of leak in the Trans-Forcados Pipeline, TFP, and for operational issues. Agip Energy and Natural Resources, AENR, and Allied Energy produced one field each while Amni Petroleum produced in two. Aiteo produced in three and had one field shut-in. No reason was adduced for these deferments. Seplat produced in all of its four fields; Pan Ocean produced in one and shut-in seven; Eroton produced in five and shut-in two; and Enageed and Sterling Oil Exploration & Energy Co. Limited, SEEPCO, produced in their two fields each. Newcross produced its three fields and Neconde and Belma produced four each. Esso Petroleum and

Shell Nigeria Exploration and Production Company, SNEPCO, also produced one field, so also Waltersmith, Network, Yinka Frontier, Excel Energy, Green Energy, Universal Energy, Platform and Pillar Energy

NNPC, NCDMB to grow Nigerian Content to 70% by 2027

agos -- The Nigerian National Petroleum Corporation, NNPC, and the Nigerian Content Development and Monitoring Board, NCDMB, have committed to growing local content in the oil and gas industry from the current 40 percent to 70 percent by 2027 as part of strategies to sustain economic development in the country. NNPC Group Managing Director, Dr. Maikanti Baru, made this commitment at the 8th Practical Nigerian Content Conference in Yenagoa, Bayelsa State, saying strategies for implementing the NCDMB Local Content development included closing human capacity gaps, skills acquisition and assets ownership by

Consolidated Oil produced two oil fields each while Atlas, Brittania-U, Stardeep, Dubri, M i d w e s t e r n E n e r g y, Continental, Energia, Express, Oriental, Moni Pulo and Nigerian Agip Exploration, NAE, produced one each. Shell Nigeria Exploration and Production Company, SNEPCO, also produced one field, so also Waltersmith, Network, Yinka Frontier, Excel Energy, Green Energy, Universal Energy, Platform and Pillar Energy.

Fabrication work in progress

indigenous companies. He explained that the theme of this year’s conference, “Driving Economic Development and Sustainability”, was relevant to NNPC, the industry and the country at large given the considerable gains recorded in the nation’s oil and gas landscape. He maintained that as early as 2005, despite almost 50 years of a vibrant national oil industry experience, NNPC was concerned about the low level of Nigerian Content in the industry and thus called for a fresh approach to domesticating oil and gas industry spends through the establishment of the Nigeria Content Division, NCD.

2018 December, SweetcrudeReports

Oil

Nigeria: Oil production down 70,000b/d in October

A worker at an oil facility OPEOLUWANI AKINTAYO

agos -- Nigeria’s crude oil and c o nd e n s a t e production was down by about 70,000 barrels per day, b/d, in October, statistics from the Ministry of Petroleum Resources have shown. Production stood at 2.09 million barrels per day, down by that figure due to constant attacks on pipelines by oil thieves, the Ministry said in a recent statement on its website. In September, the country’s crude oil and condensate production was 2.158 million barrels per day, mb/d, while output was 1.968 mb/d in July, up from 1.896mb/d in June and 1.826mb/d in May. Nigeria produced 2.069mb/d in April, 2.022mb/d in March, 2.105mb/d in February, and 2.070mb/d in January, the ministry said. The government targets an average 2.3mb/d oil production and $51 per barrel oil price in this year's budget. Obviously supporting the ministry's reference to attacks on pipelines by oil thieves as being responsible for the October drop in output, the Nigerian National Petroleum Corporation, NNPC, reported a rising incidence of pipeline breaks since July. The NNPC’s latest monthly financial and operations report for July 2018 had disclosed that during the period under review, the nation witnessed 204 pipeline breaks, of which 16

pipeline points either failed to be welded or rupture-clamped. It indicated that 188 pipeline points were vandalised as against 165 recorded in the previous month, with IbadanMosimi pipeline accounting for 124 points or 66 percent of the vandalised pipeline, while AbaEnugu, Port Harcourt-Aba and other locations accounted for the rest. A total of 1,858 vandalised points were recorded between July 2017 and July 2018, the report indicated. The NNPC had warned earlier this month that sabotage attacks on oil pipelines were on the rise, while analysts have

Production stood at 2.09 million barrels per day, down by that figure due to constant attacks on pipelines by oil thieves, the Ministry said in a recent statement on its website

also warned that violence may return in Nigeria’s oil industry ahead of the general elections in February. However, amidst the grim, with the production start-up of the Total-operated Egina oil field in December, Minister for State Petroleum Resources, Dr. Emmanuel Ibe Kachikwu said in an interview with S&P Global Platts last week that Nigeria's crude and condensate production is expected to rise to 2.2mb/d by early next year.

Baru seeks investors to unlock 10bn barrels deepwater resources

agos -- The current drive by the Nigerian National Petroleum Corporation, NNPC, to grow Nigeria’s crude oil has been taken a notch higher with the unveiling of multi-billion dollar investment opportunities in the nation’s deep-offshore frontiers. Group Managing Director of the NNPC, Dr. Maikanti Baru, at a function in London, globally Nigeria had the biggest untapped deepwater resource of about 10 billion barrels of oil equivalent, in addition to other vast opportunities in the oil and gas value chain, calling on investors to take advantage of the opportunity. Baru explained that Nigeria had the largest and one of the most vibrant economies in Africa with lots of potentials, especially in the gas, refining and infrastructure space. “I invite you all to a country that has massive opportunities, very good business climate and good returns on investment. Our resilience has been tested, we have been through the booms and bursts and we came out stronger. With our experience, geographical location and capacity, Nigeria is the country of now

Artistic impression of an oil rig

and the future”, he stated. He further explained that NNPC had a clear strategy for harnessing these potentials through collaboration and robust partnerships.

Oil

2018 December, SweetcrudeReports

Port Harcourt refinery

Govt to partner Saudi Arabia to revamp refineries IKE AMOS

buja -- Nigeria is c o n s i d e r i n g partnering with the Kingdom of Saudi Arabia to revamp its refineries, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has revealed. This came as the Saudi Minister of Petroleum, Industry and Mineral Resources, Khalid AlFalih, held talks with the Nigerian government as part of efforts to bring about stability in the crude oil price and in the international oil market. Speaking during the visit of Khalid Al-Falih to Nigeria, Kachikwu disclosed that the intended collaboration would focus on how Nigeria could effectively restructure the downstream sector. He noted that the country had been able to secure an understanding with Saudi Arabia in terms of understudying the Arabian nation's model in refining and downstream operations. He said: "I did bring up the issues of the experiences we have had so far with our refineries and he shared his own experiences in terms of the successes they have had and we have got an understanding to come and look deeper into how they did their own trajectory to get where they

No agreement had been reached yet, we need to collaborate and learn from one other. These are usually very strong business decisions and at the appropriate time we would nosedive into the details of that are today and what experiences we can get from there. "No agreement had been reached yet, we need to collaborate and learn from one other. These are usually very strong business decisions and at the appropriate time we would nosedive into the details of that." Kachikwu also stated that ahead of the December meeting of the Organization of the Petroleum Exporting Countries, OPEC, in Vienna, Nigeria and Saudi Arabia had resolved to ensure that during the meeting, they speak with one voice and that whatever action that needed to be taken to stabilise the prices would be taken. " O b v i o u s l y, w e a g r e e collectively that the interest of the whole is what will guide us when we get to Vienna.

"We are looking forward, not without some level of trepidation, but certainly with a lot of resolve to find a closure to some of the things we see have caused the volatility all over the world," Kachikwu noted. Also speaking Al-Falih said Saudi Arabia was in consultation with Nigeria and a host of other countries to address the volatility in the global crude oil market. He stated that lessons to be learnt from its downstream policies were reflected in the fact

that its national oil company, Saudi Aramco became successful to a large degree, by building a number of large refineries through joint venture approach, by attracting investments and finding, and attractive financing scheme for foreign direct investments. Al-Falih further stated that the company was looking to increase its presence and invest in the West African market and was looking at beginning with Nigeria.

PETAN tasks foreign investors to work with credible local firms

An artistic impression of a mini oil rig

ort Harcourt -- The Petroleum Technology Association of Nigeria, PETAN, has urged investors coming into the country for oil and gas business, to invest in local companies with credibility

for quality and reliable delivery. PETAN, which is the umbrella association of indigenous oil servicing firms in the country, stated this at the weekend during the official opening of an indigenous oil servicing firm, Global Process and Pipeline Services Limited, GPPSL, in Port Harcourt. PETAN Chairman, Mr. Bank-Anthony Okoroafor, said if attention is given to more credible local companies, it will promote capacity which will positively result in the development of the nation. Okoroafor commended the management of GPPSL for adhering to the rules of PETAN in the establishment of the company and urged the oil firm to continue building capacity in the development of the country.

2018 December, SweetcrudeReports

Oil

China cuts oil imports from Nigeria over shipping cost

Crude oil vessel

agos -- Higher shipping costs will force China, one of Nigeria’s biggest crude oil buyers, to cut its purchase of the commodity from the country this month. The cuts will affect not just Nigeria, but other West African countries, including Angolan, Republic of Congo, Ghana, and Equatorial Guinea, data obtained from Reuter's shipping schedule have shown. While China intends to cut its import of West African crude to the lowest in seven months in November, South Korean imports from West Africa will reach an 11-year high. West African loadings to Asia will fall to about 2.33 million barrels per day, b/d, this month, equivalent to 70 percent of total exports from Nigeria, Angola, Republic of Congo, Ghana, and Equatorial Guinea, according to the data. Asia’s demand for Nigerian and Angolan crude had dropped from October and early November, as higher shipping costs made imports

uneconomical. Shipping rates for carrying West African oil on a very large crude carrier, VLCC, to China hit a nine-month high of more than $50,000 a day in October. The International Energy Agency, IEA, said in its November report that shipping costs had been driven up by falling Iranian exports due to sanctions by the U.S, which had forced Asian refiners to source oil from farther countries. According to U.S. investment bank, Jefferies, average VLCC spot charter rates rose to more than $40,000 a day in late October for the first time since the fourth quarter of 2016. The Reuters data was not specific on the volume of crude oil China will import from Nigeria this N o v e m b e r, b u t i t indicated that that country will import about 1.33mb/d of mostly Angolan crude during the month, down from October ’s record

According to U.S. investment bank, Jefferies, average VLCC spot charter rates rose to more than $40,000 a day in late October for the first time since the fourth quarter of 2016

1.935mb/d, while South Korea will take about 167,000b/d of West African oil. South Korea has till now typically taken only occasional West African cargoes, because it relied more on the Middle East or North Sea suppliers, according to the report. But the country has cut Iranian purchases because of U.S. sanctions on Iran and has sought out other suppliers, starting with a cargo of Congolese Djeno that loaded this month. India’s refiners will take 567,000b/d of West African crude in N o v e m b e r, u p f r o m 452,000b/d in October, most of which was purchased via tenders rather than on the spot market. Glencore, Shell, Chevron and Norway’s Equinor, among others, will supply the Indian market with a combination of Nigerian and Angolan grades.

Renewable energy, not a threat to fossil fuel - Experts

ort Harcourt -- Renewable energy sources would not take the place of fossil fuels, especially oil and gas, in the world energy market, experts have said. This is the outcome of the panel discussion at the recent Nigerian Association of Petroleum Explorationists, NAPE, International Conference and Exhibition in Lagos. The discussants, who comprised of representatives of oil multinationals, including Total, Shell, Baker Hughes, and the academia, spoke on the theme "Organic growth in Nigeria oil and gas industry; next phase, where and how

Renewable energy

it can be achieved." A panelist and geoscientist, Mr. Johnbosco Uche, said the fears that renewable energy would adversely affect the oil and gas sector was unfounded and challenged the geoscience professionals to widen their scope to break new grounds in the exploration for oil and gas. Uche enjoined members of NAPE to intensify efforts in the search for oil as the demand for energy driven by population growth will continue to make oil and gas to remain relevant in the world energy mix.

Oil

2018 December, SweetcrudeReports

1 1

An oil terminal

Bonny Light export to drop to 200,000b/d in January

agos -- Nigeria’s high-quality crude oil, the Bonny Light, will witness a drop in export to about 200,000 barrels per day, b/d, in J a n u a r y, l o a d i n g programmes obtained from Reuters has shown. Shipments of Bonny Light will fall to 214,500b/d in January from 263,483b/d in D e c e m b e r, b a s e d o n a schedule that contains seven 950,000-barrel cargoes, compared with December’s programme that contained nine cargoes. Nigeria’s crude grades have seen slow patronage from buyers in the past few months. A large number of cargoes have gone unsold. Traders estimation showed nearly a quarter of the December programme remains available for sale roughly 15 cargoes, however, Chevron had sold a cargo of Nigerian Agbami for January delivery. Crude grades Qua Iboe and Bonny Light are said to be sold around $1.70 a barrel

above dated Brent, showing no change on levels quoted late last week. Shell Petroleum Development Company Nigeria Limited, SPDC, the Nigerian subsidiary of the Royal Dutch Shell, had declared force majeure on Bonny Light exports in May following the shutdown of the Nembe Creek pipeline by the operator, Aiteo Eastern Exploration and Production

Nigeria’s crude grades have seen slow patronage from buyers in the past few months. A large number of cargoes have gone unsold.

Nigeria imports 4bn litres of petrol in Q3

agos -- The petroleum products importation statistics for the third quarter, Q3, 2018 show that Nigeria imported a little over 4 billion litres of premium motor spirits, PMS, popularly known as petrol, within the quarter. According to the newly-released data by the National Bureau of Statistics, NBS, a total of 4.37 litres of petrol was imported during the period, likewise 873.72 million litres of automotive gas oil, AGO, or diesel; 312.71 million litres of household kerosene, HHK; 212.80 million litres of aviation turbine kerosene, ATK, and 162.37 million litres of Liquefied Petroleum Gas, LPG, or cooking gas were imported into the country in the

Crude oil vessel

quarter. The month of September saw the highest level of petrol import at 1.59 billion litres while the highest volume of diesel and household kerosene were imported in July and August, respectively. State-wide distribution of truck-out volume for the third quarter 2018 showed that 4.52 billion litres of petrol, 1.02 billion litres of diesel, 168.42 million litres of household kerosene, 189.21 million litres of aviation turbine kerosene, and 125.43 million litres of LPG were distributed nationwide during the period under review, according to the NBS statistics.

Company Limited. The Nembe Creek Trunkline transports 150,000b/d of Bonny Light to the Shelloperated terminal on Bonny Island and is one of two main pipelines that carry the Bonny Light oil grade to the export terminal. Prior to the declaration of force majeure on Bonny Light exports in May, its exports were already witnessing delays. Shell, however, announced the lifting of the force majeure two months later - in July, saying it lifted the force majeure "following the repair and reopening of the Nembe Creek Trunkline by the operator, Aiteo Eastern E&P Company Limited.” The Bonny Light is a lightsweet crude oil grade produced by Shell Nigeria. It is an important benchmark crude for all West African crude production. The crude grade, p a r t i c u l a r l y, h a s g o o d gasoline yields, which is why it is a popular crude for US refiners, especially on the US East Coast.

Oil

2018 December, SweetcrudeReports

Kachikwu says 3 modular refineries to begin operations in 2019

agos -- The Minister of State for P e t r o l e u m Resources, Dr. Ibe Kachikwu, has disclosed that three modular refineries, out of 40 licenses issued, would likely come on stream by the end of 2019. Kachikwu disclosed this at the three-days biennial international conference for health, safety and environment, HSE, organised by the Department of Petroleum Resources, DPR, in Lagos. He told participants that “out of the 40 private licenses issued to private investors to build refineries, only 10 have shown signs of progression. Out of the 40 licenses issued, only 10 have shown progress by submitting their programmes and putting something on the ground". "By end of 2019, we are assured that three private modular refineries would come on stream,’’ he said. The minister said that the conference is a renowned and highly-professional forum for pooling ideas and research findings for the incubation of enduring and game-changing oil and gas policy initiatives. "Perhaps this edition of the conference could not have come at a better time, first to allay the popular fear that the days of oil and gas as an international commodity and energy source are over. "And secondly, to stimulate new ideas on sustainable ways of developing this resource in a manner that will both prolong its acceptability as an energy source and also help the nation reap optimal benefits," he said. He maintained that, with continuous inflow of statistics from the DPR highlighting the gory state of affairs on gas flaring and the failure of previous efforts to end the menace, the ministry had to come up with new initiatives to truly incentivise the flare-out policy by creating the new National Gas Policy. The policy he said, is aimed at ensuring that all currently flared gas, including those previously considered as nontechnically feasible and noncommercially viable, is gathered and utilised for various economic utilities that

Modular refinery

Aggressive efforts are being made within the ambits of HSE sustainability to convert more gas to LNG through new and existing investors to retain Nigeria in its currently threatened fourth position as an LNG exporter are financially rewarding to the producers, adding that the collectors and interested investors can then convert it for power generation, petrochemicals, and other beneficial uses. "Aggressive efforts are being made within the ambits of HSE sustainability to convert more gas to LNG through new and existing investors to retain Nigeria in its currently threatened fourth position as an LNG exporter. "Our push for the increased investments in modular and

conventional refineries is not only targeted at helping the nation benefit from its resources by providing products to the entire West African subregion," he asserted. The Director of the DPR, Mr. Mordecai Ladan, maintained that the oil and gas industry was under a new threat, which is the renewed dislike and global war against fossil fuels and the quest for renewable and cleaner energy, purely for environmental considerations the concern about global warming.

'African oil producers must support OPEC to restore market stability’

AFRICA

ohannesburg -- The African Energy Chamber has urged the Organization of the Petroleum Exporting Countries and other key global oil producers, including Russia, to continue to support OPEC to stabilise the oil price. Oil prices have dropped by about 20 percent in November, and the month is likely to record the biggest one-month decline in oil prices since t h e crash of 2014. This is not good for producers in Africa and African economies. The Chamber urges African producing nations, both those that are OPEC members and non-OPEC members, to speak up with one voice in support of OPEC’s policy on stabilising the market. “This new drop in oil prices clearly shows the world that the global supply cut has not been eliminated. The future of the petroleum sector — and indeed the future of global energy security — depends on a continuation of the OPEC-led production cuts,” said NJ Ayuk, chairman of the African Energy Chamber. Oil producing nations, many of which are within Africa, are at particular risk of economic hardship if the supply glut continues and prices spiral. Such countries include Nigeria and Angola, two of sub-Saharan Africa’s largest economies, as well as Equatorial Guinea, Cameroon, Congo, Gabon, South Sudan, Algeria, Libya, and Ghana. Other key countries that are investing in upcoming mega projects, like Mozambique, Uganda, and Senegal, could face project delays in the face of low oil prices.

Oil

2018 December, SweetcrudeReports

Seplat oil workers

Seplat gets 20-year renewal of three OML licenses OPEOLUWANI AKINTAYO

agos -- Seplat P e t r o l e u m Development Company Plc has received a 20-year renewal for its Oil Mining Licenses, OMLs, 4, 38 and 41 - a portfolio of onshore producing oil and gas blocks in the Niger Delta. SweetcrudeReports learnt that the licenses were approved by President Muhammadu Buhari and Minister of Petroleum Resources, Dr. Ibe Kachikwu, on October 21, 2018, with the licenses’ new expiry date now falling on October 21, 2038. Seplat holds a 45 percent working interest in OMLs 4, 38 and 41. In the first nine months of 2018, production from the licenses accounted for 92 percent of Seplat’s total oil production and 100 percent of its gas output. In connection with the license renewal, SweetcrudeReports learnt that Seplat paid in full a renewal bonus of US$25.9 million. When contacted, the company, in a statement through its Chief Financial Officer, Mr. Roger Brown, to this newspaper, confirmed the development, adding that it is now working with the Department of Petroleum Resources, DPR, to

In connection with the license renewal, SweetcrudeReports learnt that Seplat paid in full a renewal bonus of US$25.9 million.

obtain the updated title deeds in connection with the renewal. Commenting on the license renewal, Mr. Austin Avuru, Seplat’s Chief Executive Officer, said: “We are delighted

to have concluded the early renewal of our core producing licenses, OMLs 4, 38 and 41. With the extension of the license to 2038 secured, we can now invest with confidence long into the future as we seek to further realise the full oil and gas potential of the licenses and continue to deliver value to all of our stakeholders”. Seplat is a Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange and the London Stock Exchange, with a strategic focus in the Niger Delta of Nigeria. The company was formed in

June 2009 through the partnership of Shebah Petroleum Development Company Limited and Platform Petroleum Joint Ve n t u r e s L i m i t e d t o specifically pursue upstream oil and gas opportunities in Nigeria. In July 2010, the company acquired a 45 percent participating interest in, and was appointed operator of, the three onshore producing oil and gas blocks - OMLs 4, 38 and 41 - which then included numerous producing fields and future development opportunities.

11 Plc relaunches aviation fuel business L

agos -- 11 Plc, formerly Mobil Oil Nigeria Plc, has reintroduced the marketing and sale of aviation turbine kerosene, ATK - popularly known as aviation fuel - at the Murtala Mohammed International Airport and General Aviation Terminal, GATDomestic, after over five years of resting its aviation fuel business. The recommencement of sale of the product is in collaboration with Air BP in the wake of the construction of a new 20 million litre aviation fuel tank, and laying of new pipelines linking the company’s facility at Apapa with the airport tank. Air BP is one of the largest suppliers of aviation fuel products and services. Nigeria has in recent times been witnessing scarcity of aviation fuel as the country does not currently refine the product locally, but depends on imports. Also known as JetA1, aviation fuel currently accounts for between 35 to 40 per cent of the total operational cost of an average airline in the country. Due to scarcity, the price of the product has been on the rise.

Aviation fuel

Oil

2018 December, SweetcrudeReports

Shell not sure when Trans-Ramos pipeline will restart

Oil pipeline

agos -- The Shell Petroleum Development C o m p a n y, SPDC, says it is not sure when its ruptured Trans Ramos Pipeline, TNP, which feeds into the Forcados oil export terminal, will recommence operation. The pipeline, which ruptured on May 17, spilled as much as about 1,114 barrels of crude oil into the e n v i r o n m e n t , SweetcrudeReports’ statistical survey has shown. Shell subsequently shut-in the pipeline to clean up crude oil spilled from the ruptured. The oil leak had impacted and polluted an estimated area of 113.03 hectares, it was gathered. A joint Investigation Visit, JIV, report of the incident obtained by this newspaper, said equipment failure had caused leaks at three spots in the pipeline, impacting areas in Aghoro 1 and 2- Ekeremor Local Government Area, Bayelsa and Odumodu community in Delta state. Although more than 95 percent of oil spilled at the

While announcing the shutting down of the pipeline for repairs, Shell had said the pipeline would be reopened once the leak is cleaned up and the site assessment has been completed

pipeline have been recovered, the pipeline which supplies crude to SPDC’s Forcados Oil Export Terminal, near Warri, Delta State, remained shutin since the incident. “The Trans Ramos Pipeline has been repaired and is undergoing extensive testing prior to restart. We cannot give precise timing yet for

restart of the line as it depends on the outcome of the testing.? “Statutory post-JIV activities are ongoing, which include site assessment, remediation, and payment of compensation to people and communities impacted by the spills,” Shell’s spokesperson, Mr. Bamidele Odugbesan, said. While announcing the shutting down of the pipeline for repairs, Shell had said the pipeline would be reopened once the leak is cleaned up and the site assessment has been completed. The TRP has capacity to deliver about 100 barrels of crude oil per day to Tr a n s F o r c a d o s Pipeline Repeated attacks on the Forcados Artistic impression of climate change pipelines as well as to link these targets and other measures to its on the export executive remuneration policy. The revised terminal halted remuneration policy will be put to shareholders crude oil exports for for approval at its annual meeting in 2020. most of the period Shell has already linked 10 percent of between February executives’ remuneration to reducing carbon 2016 and May 2017. emissions from the company’s operations.

Shell sets carbon cutting targets after investor pressure

ondon -- Royal Dutch Shell has bowed to growing investor pressure over climate change with plans to set short-term targets for reducing its carbon footprint. BP and Total have already set short-term targets, but Shell Chief Executive Officer Ben van Beurden had previously resisted setting hard goals, saying it would be “foolhardy” to expose Shell to legal challenges. But following discussions with investors, the Anglo-Dutch oil and gas giant said that from 2020 it will set three- to five-year targets every year which will include specific net carbon footprint targets. Shareholders had criticised Shell for last year setting long-term “ambitions” to halve its emissions of carbon dioxide by 2050, which lacked binding targets for implementation. Shell, which did not specify any targets, plans

Focus

2018 December, SweetcrudeReports

Oil tank farm

Nigeria is 11th among nations with largest proven oil reserves â&#x20AC;ŚVenezuela becomes the world's leader in reserves OPEOLUWANI AKINTAYO, with agency report

agos -- Nigerian has been ranked in the eleventh position in a top-20 list of countries with the largest proven oil reserves in the world. Data sourced from World Atlas puts Nigeria's oil reserves at 37.062 billion barrels, just behind the United States of America in the 10th position with 39.230 billion barrels reserves. Despite the impressive attainment on the list, Nigeria's crude oil reserves have remained stagnant at 37 billion barrels for the past ten years due to low exploration for new discoveries. Nigeria's crude oil is one of the most preferred due to its low sulfur content and low corrosiveness to refinery infrastructure. It also has a lower environmental impact of

its byproducts during the refinery process, setting out its grade, Bonny Light, as one of the most expensively priced and sold at the international market. 1. Venezuela - 300.878 billion barrels With 300.878 billion barrels of proven reserves, Venezuela has the largest amount of proven oil reserves in the world. The country's oil is a relatively new discovery. Previously, Saudi Arabia had always held the number one position. The oil sand deposits in Venezuela are similar to those in Canada. Venezuela also boasts plenty of conventional oil deposits. Ve nezuela's Orinoco tar sands are significantly less viscous than Canada's, so the oil sands there can be extracted using conventional oil extraction methods, giving it a considerable advantage over the Northern American rival in terms of capital requirements

and extractions costs. 2. Saudi Arabia - 266.455 billion barrels? The Kingdom of Saudi Arabia has for many decades been viewed as the nation with the world's largest oil reserves with opulence and influence in global politics. However, Saudi Arabia is no longer the world's leader in oil potential. While the Saudis' 266.455 billion barrels of proven oil reserves are marginally smaller than those of Venezuela, all of Saudi's oil is in conventionally accessible oil wells within large oil fields. Moreover, Saudi Arabia's reserves are considered to comprise a fifth of the entire globe's conventional reserves. There are many who also believe that, with further exploration, Saudi Arabia will surpass Venezuela at the top of the proven oil holdings' charts. For example, the US Geological Survey estimates that there are well over 100.000 billion

With 300.878 billion barrels of proven reserves, Venezuela has the largest amount of proven oil reserves in the world

barrels lying undiscovered beneath the arid sands of Saudi deserts. 3. Canada - 169.709 billion barrels Canada has almost 170 billion barrels of proven oil reserves, of which the most significant proportion is in the form of oil sands deposits in the province of Alberta. Furthermore, most of the country's conventionally accessible oil reserves are located in Alberta. As extracting oil from the vast majority of Canada's oil

reserves is a labour and capital-intensive process, production tends to come in sporadic bursts rather than steady streams. Oil companies, therefore, begin by extracting lower density, higher value oils first, and directing their efforts into extracting crude deposits only in times of high commodity prices. 4. Iran - 158.400 billion barrels Iran has close to 160.000 billion barrels of proven oil reserves, making it

CONTINUES ON PAGE 16

Focus

2018 December, SweetcrudeReports

Nigeria is 11th among nations with largest proven oil reserves

An oil worker adjusts control at an oil facility three decades old and based on 2D seismic surveys. considerably wealthy in terms Nevertheless, a period of of global oil resources. When relative calm over the last looking at the most easily couple of years has given accessible reserves (excluding increased hope for developing many of the unconventional, the country's oil infrastructure. difficult-to-extract reserves in 6. Kuwait - 101.500 billion Canada), Iran falls right barrel? While a small country in behind Venezuela and the terms of land area, Kuwait Kingdom of Saudi Arabia. holds more than a fair share of Oil in Iran was first produced the world's oil reserves. Over 5 in 1908 and, at its current rate billion barrels of reserves lie of extraction, Iran's oil will last within the Saudi-Kuwaiti close to 100 years more. Unlike neutral zone which Kuwait Saudi oil, which is spread shares with Saudi Arabia, while throughout a few huge and very over 70 billion barrels of rich oil fields, Iranian oil is Kuwaiti oil are in the Burgan f o u n d i n c l o s e t o 1 5 0 field, the second largest oil field hydrocarbon fields, many of in the world. which have both crude oil and natural gas. 5. Iraq - 142.503 billion? Despite shaky political situations in its recent history, the country of Iraq sits upon some of the world's largest proven reserves of crude oil. As a matter of fact, owing to the civil unrest and military occupations which have characterised the national scene over the last few decades, it was not possible to do any meaningful exploration of Iraq's oil reserves. As a result, even the data used to determine Iraqâ&#x20AC;&#x2122;s global oil holdings ranking is at least

CONTINUED FROM PAGE 15

7. United Arab Emirates 97.800 billion barrels? The United Arab Emirates, UAE, sources most of its oil from the Zakum field, which has an estimated 66 billion barrels, making it the third largest oil field in the region, behind only Ghawar Field (Saudi Arabia) and Burgan Field (Kuwait). Roughly 40 percent of the country's GDP is based on oil and gas output and, since its discovery there in 1958, has enabled the UAE to become a modern state with a high standard of living. 8. Russia - 80 billion barrels Russia is a country filled with natural resources for energy

U.S. oil reserves soared to new heights in recent years due to increased usage of unconventional drilling methods that enable extraction of more shale oil and gas than was previously possible

use, most notably the country's massive oil reserves under the vast Siberian plains. Russian oil output fell considerably after the collapse of the former Soviet Union, but the country has revamped production in the past few years. The nation may further boost its reserves of oil and gas in the future as exploration continues beneath its holdings of arctic waters and ice. 9. Libya - 48.363 billion barrels? Libya has the largest oil reserves in Africa and the ninth largest globally. It has the potential to have a greater reserve of fossil fuel than is currently known, as it oil remains largely unexplored as a result of past sanctions against foreign oil companies. Libyan oil accounted for 98% of government revenue in 2012, but, due to recent political instability, Libya's power as an oil producer has been significantly hampered. Eventually, it is expected that untapped oil reserves will foster more economic investment as the political situation stabilises. 10. United States - 39.230 billion barrelsU.S. oil reserves soared to new heights in recent years due to increased usage of unconventional drilling

methods that enable extraction of more shale oil and gas than was previously possible. As a result of these, especially fracking and horizontal drilling, U.S. reserves surpassed 36,000 billion barrels in 2012 for the first time since 1975. Still, proven U.S. oil reserves are but a fraction of the reserves of the global petroleum leaders such as Venezuela, Saudi Arabia, and Canada. Countries with largest proven o i l r e s e r v e s (Rank/Country/Barrels billions of barrels) 1. Venezuela - 300.878 2. Saudi Arabia - 266.455 3. Canada - 169.709 4. Iran - 158.400 5. Iraq - 142.503 6. Kuwait - 101.500 7. United Arab Emirates 97.800 8. Russia - 80.000 9. Libya - 48.363 10. United States of America 39.230 11. Nigeria - 37.062 12. Kazakhstan - 30.000 13. China - 25.620 14. Qatar - 25.244 15. Brazil - 12.999 16. Algeria - 12.200 17. Angola - 8.273 18. Ecuador - 8.273 19. Mexico - 7.640

Gas

2018 December, SweetcrudeReports

Shell discovers 1.5tcf of gas, 42mb condensates in 4 years …Signs gas supply pact for Aba power project OPELUWANI AKINTAYO

agos -- Shell Nigeria has discovered 1.5 trillion cubic feet, tcf, of gas and 42 million barrels, mb, of condensates in the shallow and deep reservoirs onshore Eastern Nigeria in the last four years, SweetcrudeReports has learnt. The discovery was made following a four-year campaign by the company between 2014 and September 2018 at the Gbaran-Kolo Creek-Epu field areas. It was learnt that the discovered gas will, on production, be sold to the Nigeria LNG Limited, NLNG, for use in the 22 million tonnes per annum NLNG plant in Bonny, Rivers State, while part of it would be sold in the local

market, and the rest, exported. Revelation of the Shell discovery came in the course of several technical sessions at the recent annual conference and exhibition of the Nigerian Association of Petroleum Explorationists, NAPE, in Lagos. The four-well campaign in the Gbaran-Kolo Creek-Epu field areas was targeted at unlocking the reserves that were located deeper than normal hydrostatic pressure in the area. In another development, the Shell Petroleum Development Company of Nigeria, SPDC, and its joint partners have signed a gas supply and aggregation agreement that will support the 140 megawatts Aba Integrated Power Project in Abia State. The agreement, signed in Abuja, was between SPDC, Geometric Power Aba Limited,

A worker monitors flow at a gas facility

This is a further demonstration of our commitment to supporting Nigeria’s industrialisation through gas

Axxela signs 15mscf/d gas deal with WAPCo

agos -- Axxela Limited has signed a gas transportation agreement, GTA, with the West African Gas Pipeline Company Ltd., WAPCo, to transport over 15 million standard cubic feet per day, mmscf/d of natural gas via the West African Gas Pipeline, WAGP to Lome, Togo. At the signing ceremony in Accra, Ghana, Axxela CEO, Bolaji Osunsaya, said the partnership between Axxela, WAPCo, and the West African Gas Pipeline Authority, WAGPA, portends major benefits for the West African gas markets. "The flow of new molecules beyond the existing foundation contracts will diversify gas supply sources into the WAGP, and affirms Axxela’s

West Africa gas pipeline proactive mid-term growth plan. “Propelled by our professionalism, strategic partnerships, and excellence across our business enterprise, we remain firmly committed to the positioning of gas as a catalyst for socio-economic empowerment across the region’s key markets,” Osunsaya added.

GPAL; and Gas Aggregation Company of Nigeria, GACN. By the agreement, SPDC will supply gas from the SPDC joint venture gas plant in Imo River, traversing Abia and Rivers States, to the power producer, Geometric Power Aba Limited, via a gas pipeline network which is already installed. “This is a further demonstration of our commitment to supporting Nigeria’s industrialisation through gas,” said the Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

O k u n b o r, w h o w a s r e p r e s e n t e d b y S P D C ’s General Manager, Business and Government Relations, Bashir Bello, noted: “For more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria's huge gas resources and it is good to see more players joining the fray to grow the gas market and help improve lives and the earnings in Nigeria.” Speaking at the agreement signing ceremony, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who was represented by his Special Adviser on Fiscal Strategy, Dr. Tim Okon, described the Aba Independent Power Project as a potential catalyst for opening up the Aba market for economic growth. Chief Executive Officer of GAPL, Prof. Bath Nnaji said the project was structured to incentivise gas suppliers to invest in gas production for the domestic market.

Gas

2018 December, SweetcrudeReports

LPG plant

NNPC says it will 'aggressively' grow LPG consumption in-country …Targets 10% global LNG market share

agos -- The Nigerian National P e t r o l e u m Corporation, NNPC, has expressed commitment to a g g re ssiv e l y g ro w l o ca l consumption of the Liquefied Petroleum Gas, LPG, popularly known as cooking gas, even as it targets 10 percent share of the global Liquefied Natural Gas, LNG, market through the Nigerian LNG Limited, NLNG. NNPC is the highest shareholder in the NLNG with 49 percent, other shareholders being Shell Gas B.V, which owns 25.6 per cent; Total Gaz Electricite Holdings France(15 percent) and Eni International (N.A.) N.V.S.a.r.l (10.4 percent). NNPC's Group Managing Director, Dr. Maikanti Baru, disclosed the corporation's plan towards LPG consumption growth and control of 10 percent of the global LNG market in a statement in Abuja. According to him, the corporation was determined to

He listed one of the project aimed at deepening LPG consumption in the country as the expansion of NNPC LPG storage facility at Apapa from 4,000 metric tons to 8,000 metric tons

invest in making LPG available to Nigerians to discourage the current trend of using firewood and other unsafe means for cooking. Baru stressed that it was time to bring LPG closer to the people and at affordable

Norway’s Equinor to start talks with Tanzania over LNG project

ews Wires —Norway’s Equinor is ready to start talks with Tanzania on developing a liquefied natural gas (LNG) project based on a deepwater offshore discovery, the LNG plant company said on Tuesday. Tan zanian President John Magufuli has asked his government to proceed with negotiations to set out the commercial and fiscal framework for the LNG project, Equinor, a majority state-owned energy company formerly known as Statoil, said. “Equinor will now proceed with our partner ExxonMobil with negotiations for a host government agreement,” an Equinor spokesman said in an email to Reuters. He said it was too early to say how long talks with the government could take and how much the project would cost. Tanzania said in 2014 that a planned LNG export plant could cost up to $30 billion. Royal Dutch Shell, which operates deepwater Blocks 1 and 4, adjacent to Equinor’s Block 2, previously sought to develop the LNG project in partnership with Equinor and Exxon Mobil.

price, explaining that NNPC has made significant investment to address the challenges of products deficit. He listed some of the projects aimed at deepening LPG consumption in the country to include expansion of NNPC LPG storage facility at Apapa from 4,000 metric tons to 8,000 metric tons in the first phase; construction of pipelines to deliver LPG to plants in the hinterland; and development of coastal supply facilities. “We have also purchased two LPG vessels for export operations through the West African Gas Ltd, WAGL, a joint venture firm, and we have developed a growth strategy plan and gradually providing LPG skids across NNPC retail outlets”, he stressed. On the global scene, Dr. Baru declared that NNPC was doing everything to leverage on the nation’s enormous gas reserves to secure about 10 percent share of the global LNG market..

Gas

2018 December, SweetcrudeReports

Nigerian economy'll derive maximum value from NLNG Train 7 - Tony Attah

NLNG plant on Bonny Island

MKPOIKANA UDOMA

ort Harcourt -The Nigerian economy will derive maximum value from the Nigerian Liquefied Natural Gas, NLNG, Train 7 project, according to Managing Director of the Nigeria LNG Limited, Mr. Tony Attah. Attah disclosed this at a public workshop on Nigerian Content for NLNG’s Train 7 Development in Port Harcourt, targeted at giving Nigerian companies information on how Nigerian Content could be maximised in the execution of the project. He said the workshop was the third held by the company in its bid to ensure Nigerian companies and the Nigerian economy derive maximum value from the Train 7 project. The managing director, who said the company was 100 percent committed to the project, assured that it would be delivered with the involvement of competent Nigerian companies. He explained that the project, valued at over $4 billion, is expected to

NLNG is underpinned by its vision of being ‘a global LNG company helping to build a better Nigeria. The global play is about the business itself and helping to build a better Nigeria is consistent with our partnership with NCDMB commence as soon as a Final Investment Decision, FID, is taken. “NLNG is underpinned by its vision of being ‘a global LNG company helping to build a better Nigeria’. The global play is about the business itself and helping to build a better Nigeria is consistent with our partnership with NCDMB. “I will like to invite Nigerian companies to please participate in Train 7, which is the purpose of this workshop," he stated. Attah further said: "It is consistent with our

partnership with NCDMB. It also opens up the opportunities for local companies to play, starting with understanding the scope of the project. "In addition, it creates an opportunity to meet the two consortia we are currently working with, B7 JV and SCD JV. They are the key players tasked with the Front End Engineering Design (FEED)”. The NLNG boss also announced that the company is in the forefront of deliberate efforts towards eliminating gas flaring in Nigeria.

Oil price drop causes jitters in LNG market

agos -- A big drop in Brent oil prices was causing jitters in the liquefied natural gas, LNG, market, according to trade sources quoted by Reuters. Oil prices slumped to 2018 lows on Friday, last week, pulled down by concerns of an emerging global supply overhang amid a bleak economic outlook. “Typically, changes in Brent tend to have a bigger impact on Asian LNG prices due to lack of liquidity in Asian gas derivatives,” said a second Singapore-based LNG trader. Trading remained thin in the region with several LNG tankers still floating the super-chilled fuel around Asia. But the situation may soon stabilise as end-users have stopped reselling cargoes, the trader said. “The Chinese are not reselling cargoes like they were doing recently, so I think situation could be bottoming out,” the trader added. Asian spot prices for LNG tumbled nearly 10 percent last week to a more than three-month low, knocked lower by a slide in oil prices, forecasts for a warmer than average winter and ample supply onshore and in tankers. Spot prices for January delivery in North Asia LNG-AS were estimated at $10 per million British thermal units (mmBtu), 90 cents lower than last week, traders said. “The big question mark right now is how the weather will pan out as the market will quickly turn once it starts to get cold. But until then, it’s tank-top right now in many places,” said a Singapore-based LNG trader, referring to high storage levels of natural gas in North Asia. Temperatures in major cities Tokyo, Beijing and Shanghai in the world’s top two LNG buyers, Japan and China, are expected to be warmer than usual this week, weather data from Refinitiv Eikon showed.

Power

2018 December, SweetcrudeReports

Artistic impression of electricity distribution

NERC gives Discos March 2019 deadline on customer enumeration

agos -- The Nigerian E l e c t r i c i t y R e g u l a t o r y Commission, NERC, has directed electricity distribution companies or Discos in the country to conclude all customer enumeration in their areas of coverage by March 31, 2019. The ultimatum was contained in a statement by the commission seen by SweetcrudeReports after it directed the utility companies to carry out extensive customer enumeration to determine their actual customer base. According to NERC, customer enumeration will “improve metering” and help Discos “respond to electricity issues quickly”. NERC, in a related development, has revealed that five years after the privatisation of the Nigerian power sector, only about 60 percent of electricity customers in the country has been metered. The performance agreement executed between the Bureau of Public Enterprises, BPE, and the core investors in the eleven Discos in the country provides for the installation of end-use meters based on agreed targets. But, NERC, in a consultation

In another report, NERC said electricity consumers were refusing to pay their bills due to issues arising from estimated billing and poor quality of supply in most load centres

paper on the Capping of Estimated Billing for unmetered electricity customers, said actual performance as at August 2018 indicated that six in ten customers were unmetered and, therefore, subjected to estimated billing. The electricity distribution companies have consistently blamed slow metering pace on liquidity problem arising from non-cost reflective tariffs in the power sector. According to them, it had been almost difficult to recoup their

Total targets 5,000 solarpowered stations by 2020

Solar power facility

ort Harcourt -- As part of its efforts in support of alternative energy sources in the country, Total Exploration and Production Nigeria Limited, TEPNG, says it has built 15 solar-powered stations in the country and that its global target is to reach 5,000 solar stations

by 2020. Managing Director and Chief Executive Officer of Total in Nigeria, Mr. Nicolas Terraz, disclosed this at the management session of the 36th Nigerian Association of Petroleum Explorationists, NAPE, Conference and Exhibition in Lagos. Terraz explained that the company was the first oil firm in Nigeria to pioneer a solarpowered station, the Onigbagbo station in Ikeja, Lagos; adding that the company was currently working on a 100 megawatts, MW, solar farm project in Katsina State.

investments and running costs even after five years of buying over the assets of the defunct Power Holding Company of Nigeria, PHCN, from the Federal Government through the Bureau of Public Enterprises, BPE. In another report, NERC said electricity consumers were refusing to pay their bills due to issues arising from estimated billing and poor quality of supply in most load centres. The commission disclosed this in its recent report on the state of the power sector, adding that lack of financial liquidity remains the “most significant” challenge affecting the industry. The liquidity challenge, NERC said, was partly attributable to non-cost-reflective tariffs and high technical and commercial losses aggravated by consumers’ apathy to payment, arising from estimated billing and poor quality of supply. Out of the N171.1 billion billed to customers in the first quarter of 2018, only N106.6 billion was recovered, representing 62.3% collection efficiency. This meant that out of every N10 worth of electricity sold during the quarter under review, N3.8 was uncollected.

2018 December, SweetcrudeReports

Power

60 percent of electricity customers not metered - NERC

Power substation; Electricity meter

OPEOLUWANI AKINTAYO

agos -- Five years a f t e r t h e privatisation of the Nigerian power sector, about 60 percent of electricity customers in the country remain unmetered, data from the Nigerian Electricity Regulatory Commission, NERC, have shown. The performance agreement executed between the Bureau of Public Enterprises, BPE, and the core investors in the eleven electricity distribution companies or Discos provides for the installation of end-use meters based on agreed targets. But NERC's consultation paper on the Capping of Estimated Billing for unmetered electricity customers said actual performance as of August 2018 indicated that six in ten customers were unmetered and, therefore, subjected to estimated billing. According to NERC statistics, Abuja Electricity Distribution Company, AEDC, with 967,667 customer population, has metered 526,173 customers, while 441,494 customers representing 46 percent remain unmetered.

Ikeja Electricity Distribution Company, IKEDC, has the second largest customer population of 910,338. While it has metered 447,299 customers, 463,039 customers, about 51 percent, are yet to get their meters

Benin Electricity Distribution Company, BEDC, has 887,966 customer base, out of which 548,261 have been unmetered and 339,705, about 38 percent, are unmetered. For the Eko Electricity D i s t r i b u t i o n C o m p a n y, EKEDC, the company has metered 235,068 out of its 493,639 customers, leaving 258,571 - 52 percent - still without meters. The Enugu Electricity Distribution Company, EEDC, has a total of 935,860 of customers, out of which it has been able to meter just 312,385, leaving 623,475, representing 67 percent, unmetered.

The Ibadan Electricity Distribution Company, IBEDC, has the largest customer population among all the power distribution companies in the country. It boasts a customer base of 1,688,989, of which it has metered 687,652 with 1,001,337 yet unmetered, representing 59 percent. Ikeja Electricity Distribution Company, IKEDC, has the second largest customer population of 910,338. While it has metered 447,299 customers, 463,039 customers, about 51 percent, are yet to get

their meters. For Jos Electricity Distribution Company, which has 486,198 customer base, 170,409 have been metered while 65 percent of the customers (315,789) are yet to be metered. Seventy-two percent or 394,042 out of 543,630 customers of Kaduna Electric are yet to be metered. Only 149,588 customers have been metered. While Port Harcourt Disco has reached 316,214 customers out of 523,693 with meters, 207,479 others are yet to get meters. As for Kano Disco, it has metered 382,101 customers of of 508,640, leaving 126,539 still unmetered. Yola Disco, which has the least customer population 346,220 among the utility companies, have only 71,580 of its customers with meters while the remaining 274,640, representing 79 percent, are yet to be reached with meters.

Kaduna Electric takes energy efficiency campaign to secondary schools

agos -- Kaduna Electricity Distribution Company has commenced knowledgesharing campaigns through formation of energy conservation clubs in secondary schools within its franchise area. The exercise is aimed at inculcating energy efficiency values and safety culture among young people. A statement by the Head, Corporate Communication of the company, Abdulazeez Abdullahi, stated that the energy conservation clubs were established â&#x20AC;&#x153;to guide the young minds on global best practices on energy efficiency and create awareness on hazard such as; global warming, electrical accidents, energy conservation techniques and other valuable

safety measures through lectures, awareness campaigns and live demonstrationsâ&#x20AC;?. He disclosed that the maiden edition of the programme was inaugurated at Government College, Kaduna, where about 100 students participated in the club activity. Abdullahi, who was represented by Mallam Idris Muhammad of the corporate communications department of the company, sensitised the students on the Nigerian electricity value chain, importance of energy conservation, energy efficiency techniques, career opportunities and effect of drug abuse and cultism among the youth.

2018 December, SweetcrudeReports

Power

Power sub-station; Prepaid electricity meter

Consumer Council condemns arbitrary billings by Discos OPEOLUWANI AKINTAYO

agos -- The C o n s u m e r P r o t e c t i o n Council, CPC, has c o n d e m n e d arbitrary billings by the electricity distribution companies or Discos, urging them to embark on aggressive metering to curb estimated billings. Mr. Babatunde Irukere, the Director General of CPC, made the remarks in a statement while also expressing understanding about challenges in the industry. He said Discos had "no excuse” for maltreating customers, adding that “arbitrary billing” formed a larger part of complaints received from electricity consumers. “There is no excuse for how consumers are treated. The key complaints that we receive are arbitrary, unsupported and unreasonable billing. "People are not being treated with dignity, the complaint resolution process is either lacking or unclear and there’s really no respect for people,” he said. The director general said

According to him, Discos have gotten to a point where no one takes their bills seriously anymore because they are considered outrageous

consumers’ complaints have not been primarily about supply, “but about billing for non-existent supply”, stating that “as a matter of fact, a vast majority of supply complaints are attributed to the fact that you (Discos) are asking them to pay for something that was not supplied and the other significant reason is group

Benin Electric commits to better services for customers

enin City -- The Benin Electricity Distribution Company, BEDC, has assured its consumers in Edo, Ondo, Ekiti and Delta states of better service and to address power outages in affected areas. Mr Tayo Adekunle, its spokesman, who gave the assurance at a press briefing in Benin, spoke as many parts of the four states under the BEDC franchise area had been thrown into darkness for three weeks. Adekunle said that a contingency plan had been adopted to get the affected areas connected, explaining that the power outage followed the breakdown of the 150MVA power transformer that supply power to these areas. Adekunle said that with the contingency plan, the company had started redistributing supply to the affected areas by taking from customers in existing functional lines.

He also said that a large part of Benin such as Irhirhi, Oko, Evbuotubu, among others, would be restored with the completion of new line to Okada feeder within the next few weeks. “The line will be test-run on Friday, and if successful, the areas mentioned above will be restored with supply. “There are several other areas where power has been restored when this redistribution process started arising from the faulty transformer,” he said. The BEDC spokesman said that everybody would be taken to their normal scheduling as soon as the faulty transformer was replaced. He said that the BEDC would continue to be a responsive and responsible distributor of electricity across the franchise states of Edo, Delta, Ondo and Ekiti.

disconnection”. He advised that holding town hall meetings was necessary to engage with electricity consumers directly and address their complaints with regards to electricity in a civilised and matured manner. He frowned at group disconnection of consumers’ electricity without consideration for those paying their bills, saying this constituted an abuse of consumer rights. Irukere acknowledged that power was a national challenge, and that the value chain in the sector needed to come together to address the power sector challenges. According to him, Discos have gotten to a point where no one takes their bills seriously anymore because they are considered outrageous. "I think the pressure on metering will not be so bad if estimated billing was more transparent and reasonable,” he noted, charging the Discos to engage in aggressive metering of consumers to address issues of estimated billing.

2018 December, SweetcrudeReports

Power

70,000 EKEDC customers fail to recharge pre-paid meters in one year

Ihovbor power plant in Edo State

An electricity worker clears a fault on a power distribution line

agos -- Eko Electricity Distribution C o m p a n y , EKEDC, has cried out over the refusal of more than 70,000 of its customers to recharge their prepaid meters in the last one year. The company’s Chief Executive Officer, Mr. Adeoye Fadeyibi, raised the alarm in a statement. According to him, in spite of EKEDC’s effort in ensuring effective metering within its network to ease customer’s complaints, it noticed that over 70,000 customers had not recharged the pre-paid meter in the last one year. "Some customers are in the habit of bypassing meter and engaging in energy theft, this has also affected the company negatively. Most of our transformers are being vandalised in some areas which cost the company a huge amount to replace. He urged consumers to serve as a whistleblower on vandals. "This is part of the challenges affecting the company, we need to tell ourselves the

The managing directed said the Metering Assessment Programme...will go a long way in addressing the metering gap within the network

truth. Consumers should also be our watchdog in their various locations by reporting those engaging in energy theft and equipment vandalism. "Because the money that was meant to develop other infrastructures has been

Benin, Malawi, Zambia, others de-risk renewable energy projects Solar panels

ilongw e , Malaw i -- In 2 0 1 8 , R e g i o n a l Liquidity Support Facility, RLSF, supported a 7.5 MW solar PV plant in one of the four partner countries, which will add an additional 15% to the country’s current capacity of 50 MW. Since launching a year ago, RLSF has signed agreements with five countries ensuring that their Independent Power Producers, IPPs, receive protection against payment risks that often contribute to their failure.

The five countries are Benin, Burundi, Malawi, Uganda and Zambia. The facility supports small and mid-scale renewable energy IPPs (from 50 to 100MW) in sub-Saharan Africa by helping these projects reach financial close and to reduce the energy deficit. Malawi became the latest country to sign onto the agreement today. The RLSF is a joint initiative of the African Trade Insurance Agency, ATI, and KfW with funding from the German Federal Ministry for Economic Cooperation and Development, BMZ. The facility, which has an initial capacity of USD74 million, targets small and mid-scale renewable energy projects because renewables are generally cheaper, easier to implement, integrate into the national electricity grid and usually have a positive environmental impact once up and running.

diverted to repair vandalised equipment,’’ he said. The managing director said that the Metering Assessment Programme, M A P, i n i t i a t e d b y t h e Nigerian Electricity Regulatory Commission, NERC, will go a long way in addressing the metering gap within the network, adding that the company had metered over 150,000 customers. He said that efforts are being made to address the metering gap with more m e t e r s f o r consumers and the adoption of an interim plan of m e t e r i n g transformers for a more accurate estimation. The Eko Electricity Distribution Company, EKEDC, has metered 235,068 out of its 493,639 customers, leaving 258,571 - 52 percent still without meters.

2018 December, SweetcrudeReports

Power

Power generating plant

Power generation down 2% in Q1 2018 SAM IKEOTUONYE

a g o s - - To t a l electricity generated in the country in the first quarter of 2018 was 8,511,481MWh – two percent less than the generation level recorded in the last quarter of 2017. According to statistics from the Nigerian Electricity Regulatory Commission, NERC’s, first quarter report for 2018, power generation dropped by two percent despite an increase in available generation units. The quarterly industry’s daily generation peak of 5,047MW recorded on the 14th day of February 2018 was also less than that of the preceding quarter. Wi t h t h e d e c r e a s e i n generation, not surprisingly, the average utilisation rate of the total available generation capacity declined by 1.1% from 54.4% recorded in the last quarter of 2017. NERC said factors that affected the level of generation included transmission line and distribution networks limitations and water management. Gas constraint was responsible for the loss of 1,

Water management caused loss of 135MW (5 percent), 85MW (3 percent) was lost due to transmission line limitation while limited distribution network caused the loss of 462MW, representing 18 percent of the total loss

916MW in the quarter, representing a whopping 74 percent loss. Water management caused loss of 135MW (5 percent), 85MW (3 percent) was lost due to transmission line limitation while limited distribution network caused t h e l o s s o f 4 6 2 M W, representing 18 percent of the total loss. NERC said resolving these constraints remained its “top priority”. The commission also said it had started executing the actionable items identified in its 2017-2020 Strategic Plan which involved initiating a process for thorough

technical assessment of Discos’ utilisation of capital expenditure allowances for relevance and cost efficiency. The commission also said it is planning a tariff reset that adequately provides for revenue requirement necessary for TCN and Discos’ optimal performance.

Nigeria’s power sector has grown by 7.5% - Fashola

Fashola

agos -- The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said that Nigeria’s power sector grew by 7.5 percent since the beginning of the Muhammadu Buhari administration. He disclosed this while delivering a progress report on activities of his ministry. “The evidence of our progress is not only captured in the last quarter of the National Bureau of Statistics (NBS) Report for Q2 of 2018 which shows a growth of 7.5 percent in the electricity sector”, the Minister said. He added that previous quarterly reports from 2017 had consistently showed growth. Fashola disclosed that the report of survey carried out by government and feedback mechanism put in place by it, had confirmed that many Nigerians now have public power for longer hours compared to 2015 and run generators for shorter periods compared to 2015 while they now spend less money on diesel to power their generators. “As some citizens recently reported, they no longer have to iron all their clothes one week in advance as they previously used to do, because the supply is proving reliable and predictable even if not yet fully stable and uninterrupted," the minister said. He stated that as the policies on mini grids, meter asset provider, eligible customer and liquidity sustenance and improved governance deepen, the experience with power supply could only get better adding, however, that the success of the plans now would depend on “energy users who must conserve energy when not needed”. Fashola asserted that generation, which was at 4,000 MW when he took over in the Ministry in 2015 has increased to 7,000 MW and transmission from 5,000 MW in 2015 to 7,000 MW while distribution has increased from 2,690 MW to 5,222 MW.

2018 December, SweetcrudeReports

Labour

Maikanti Baru

NNPC says no plan for mass staff retirement …Not conducting staff probe IKE AMOS

buja -- The N i g e r i a n N a t i o n a l Petroleum Corporation, NNPC, has allayed fears of mass retirement of its staff, while it disclosed that it has retired some of its staff who had been performing below standards. The corporation also clarified that it was not

conducting performance probe of its staff members as it denied having 70,000 staff members in its employ. The company disclosed these in two separate statements issued in Abuja. In one of the statements, Group Managing Director of the NNPC, Mr. Maikanti Baru, explained that the recent retirement of some staff following the last management promotion exercise was

restricted to those who had been performing below par. Baru, who stated this at a programme organised by the Corporate Services Autonomous Business Units, ABU, of the corporation, to showcase its products and services to the public, said of the retirement of the staff: “They were a disincentive to those remaining in the system and it was only appropriate to disengage

them to allow some fresh air for others to rise”. He charged the management and staff of the NNPC to go about their duties and continue to give their best to the corporation and ignore the rumour of sack. He further harped on the need for staff to be lawabiding, resourceful and disciplined, and urged them to come up with innovative

Energia ex-workers tackle company over disengagement

agos -- About 32 ex-workers of an indigenous oil and gas producing company, Energia Limited, have levelled various allegations against the company, including lack of due process, in their disengagement from the company. They also alleged unfair treatment and inadequate remuneration while in the company's employment. The workers had recently petitioned the Department of Petroleum Resources, DPR - the oil and gas industry watchdog - outlining their grievances with Energia and seeking the intervention of the agency to get the indigenous oil company compensate them for alleged wrongful dismissal from work. One of the aggrieved workers said the management of Energia disregarded the rules governing the oil and gas industry as well as the company's own rules in sending

him and his affected colleagues away from the company. He disclosed that with no succour coming through the petition to the DPR so far, the workers had no option than to head to a Lagos High Court to seek redress. The source said the exworkers are asking for N2 billion compensation from the company. Efforts to reach the management of Energia for comments on the matter was unsuccessful. A message sent

ideas and best-in-class practices to reposition the NNPC and sustain its pride of place in the national economy as we strive for global recognition. The NNPC chief executive commended the Corporate Services ABU for being in the forefront of service delivery and for enhancing the overall business success of the Corporation, adding that the programme, tagged ‘CS Connect’ was aimed at improving current support services with a focus on cost-reduction and greater efficiency. In another statement by Group General Manager, Group Public Affairs D i v i s i o n , M r. N d u Ughamadu, NNPC clarified that it was not conducting performance probe of its staff members as it denied having 70,000 staff members in its employ. The clarification followed media reports that the corporation had a staff strength of over 70,000 and was about conducting a performance audit of staff across its operations. Ughamadu said NNPC had never at any point in its history maintained a 70,000 staff strength. “NNPC is not embarking on any staff performance audit. "What we said in the press release that was a p p a r e n t l y misrepresented in the media was that the chief operating officers of the various autonomous business units signed performance bonds with the Group Managing Director, Dr. Maikanti Baru, as part of efforts to ensure that all the units deliver on their mandates in the upcoming year. "There was nothing in that statement that indicated that NNPC would carry out a performance probe of

Energia workers

Freight

2018 December, SweetcrudeReports

Dakuku Peterside

Nigeria to partner other African countries on 'safe ocean' MICHAEL JAMES

agos -- The Federal Government of Nigeria has expressed its readiness to cooperate with other African countries and development bodies to advance the continent’s prosperity through the safe and sustainable use of Africa’s vast sea and ocean resources. T h e M i n i s t e r o f Transportation, Mr. Rotimi Amaechi, made this known at the first 'Sustainable Blue Economy Conference' in Nairobi. Amaechi, who conveyed N i g e r i a ’s s t a t e m e n t o f commitment to the 'blue economy' initiative, said its growth was the most viable option for Africa’s development in the wake of declining mineral and commodity prices. He said the high level participation in the conference demonstrated the importance African countries attached to the 'blue economy' and their resolve to use the resources of the seas and oceans to accelerate economic growth and reduce poverty to the

barest minimum. The minister, who was represented by the DirectorGeneral of the Nigerian Maritime Administration a n d S a f e t y A g e n c y, NIMASA, and Chairman of the Association of African Maritime Administrations, A A M A , D r. D a k u k u Peterside, said that Nigeria, as country, was conscious of its responsibilities and international obligations which have given rise to its endorsement and domestication of key International Maritime Organisation, IMO, and other important African Union continental instruments. “We are mindful and highly committed to our responsibilities to protect our marine environment to ensure that our continent does not become dumping ground for pollutants which can prevent exploration of ocean resources,” he said. Amaechi highlighted steps taken by the Federal Government to mainstream the blue economy concept into its Economic Recovery and Growth Plan (ERGP) to include formulation of a

draft National Transport Policy, which is awaiting approval of the Federal Executive Council. The policy, according to him, will provide the platform to implement at the country level the framework for the protection and sustainable e x p l o i t a t i o n o f A f r i c a ’s maritime domain. The government has also constituted a high-powered committee, coordinated by the Federal Ministry of Transportation, to formulate and map out a roadmap to align the Blue Economy regime with the country’s ERGP, Amaechi said. Other steps include the drafting of a dedicated antipiracy bill, which is before the National Assembly, to provide the requisite framework for the fight, prosecution and punishment of piracy and other related crimes in Nigeria and the Gulf of Guinea; and approval for the acquisition of intelligence gathering maritime domain awareness assets and military response assets to fight pirates and make Nigeria’s maritime domain safe for economic activities. The inaugural 'Sustainable

Blue Economy Conference', which held from November 26 to 28 in the Kenyan capital, had over 15,000 participants from around the world. They gathered to discuss how to build a blue

economy that harnesses the potentials of oceans, seas, lakes and rivers to improve the lives of people, particularly those in developing countries.

Police move to curb sea piracy around eastern ports

ort Harcourt -- The Nigerian Police says it has repositioned its men to minimise cases of sea piracy and smuggling of illicit goods around the eastern seaports. The newly-deployed Assistant Inspector General, AIG, of the eastern ports, AIG Abdulmajeed Ali, disclosed this at his maiden press briefing in Port Harcourt, on his assumption of office as the pioneer AIG of the eastern ports. Ali said the move by the Federal Government to revive the eastern ports led to the posting of an AIG to the area. He decried the high level of insecurity on the eastern waterways and vowed to engage every stakeholder in the industry to curb criminality, in order for the eastern ports to thrive. H noted that since he came, he had noticed that activities were more at Onne port than Port Harcourt port, resulting from the issue of insecurity at the Port Harcourt port and threat to the lives of crew members. He said this had kept stakeholders away from the port.

2018 December, SweetcrudeReports

Freight

OGFZA to provide 'cheap power' at Onne Free Zone MKPOIKANA UDOMA

ort Harcourt -- The Oil and Gas Free Zones Authority, OGFZA, has announced the licensing of a power consortium, PHEDC/ESOP, as project partners to provide cheap electricity in Onne Oil and Gas Free Zone. The mandate of the power consortium is to provide gasfired dedicated power to the free zone at a cost per kilowatt of power that is lower than the going rate of diesel-generated power in the zone. Announcing the key steps on the embedded power project to a stakeholders forum, the Managing Director of OGFZA,

Mr. Umana Okon Umana, said the power project was in line with his commitment to stakeholders in the free zone during the joint stakeholders meeting of August 2017, that OGFZA would “provide embedded power as a cost cutting measure to improve competitiveness in the Free Zones.” Umana also announced to the stakeholders that OGFZA will be collaborating with another energy firm, Axxela Ltd, "to deliver holistic energy solutions to our free zones". On the issue of tariffs in the free zones, Umana assured that the Authority will continue to address concerns

to ensure that tariffs are at all times moderated to fair and reasonable levels, in the best interest of all. “In order to automate our processes and increase efficiency of operations, two Oracle Cloud Services Modules which have been undergoing test run and integration are to be commissioned in December 2018. "I want to report also that OGFZA has engaged PriceWaterhouseCoopers, PwC, to carry out a diagnostic assessment and review of our existing and proposed oil and gas free zones as part of our investment promotion strategy. The partnership

with PwC is operated through our investment subsidiary, Free Zones Global Investments Limited. "There have been some i n s t a n c e s o f misunderstanding with regard to the position of the law on taxation as it relates to Free Zone operators. The Authority will continue to ensure that Free Zone operators are not denied incentives guaranteed for them by law, and wherever there are issues the Authority will always intercede on behalf of our investors," Umana said. Also, Chairman of the Governing Board of OGFZA, Chief Timipre Sylva, in an

address to the forum announced that the Federal Government would prioritise the provision of infrastructure in the free zones and the take-off of the Brass Oil and Gas City, a registered free zone located on Brass Island in Bayelsa State. Represented by a member of the board, Engr. Tempitope Kuyemi, Sylva promised to ensure that the oil and gas free zones get the right support from government to fulfil their mandate as vehicles for the stimulation of industrialisation, diversification of the economy and job creation.

Electricity workers

Tidewater, GulfMark consolidation creates largest OSV fleet

agos -- The recent consolidation between GulfMark and Tidewater has created the largest offshore support vehicle, OSV, fleet in the industry. The development is seen as a positive for the market. "With Tidewater’s steadfast and unyielding attitude towards the scrapping of non-performing vessels, this is a good chance for the market to reduce some of its oversupply," according to VesselsValue. "Hopefully with this new entity taking the lead, other market players might follow suit", VesselsValue added in a statement by Associate Director, Claudia Norrgren. It added that "consolidation in today’s market only works if lenders are willing to take haircuts and provide

an opportunity for these companies to start afresh with a clean balance sheet". According to VesselsValue, "in the case of Solstad Offshore, they undertook restructuring and consolidation as well. However, without a clean balance sheet, problems are only going to resurface further down the road. "Bourbon is another major player who have struggled to service their debt and are actively looking for financiers. Kicking the can down the road is not a viable

OSV fleet

2018 December, SweetcrudeReports

Community

Shell trains, equips firefighters in Abia

Clean-up in Bodo, an Ogoni community

Netherlands envoy urges action on Ogoni clean-up SAM IKEOTUONYE

agos -- The Netherlands Ambassador to Nigeria, Mr Robert Petri, has urged the Nigerian government to immediately commence the cleanup of Ogoniland, stressing that it should begin before the 2019 general elections. Petri made the call during a fact-finding visit to the Hydrocarbon Pollution Remediation Project, H Y P R E P, o f f i c e i n P o r t Harcourt. He said immediate action on the cleanup would send a strong signal to the world that the Nigerian government was serious with remediation of oil impacted Ogoni communities. “Things are really happening in Ogoni cleanup, but they are brightly not visible. Government should ensure the independence of HYPREP. “It is extremely an important

project that we hope will commence proper before the elections starts. The whole world is watching," he said. The ambassador said the cleanup exercise was the largest oil remediation project carried out in a single country, adding: “This is a large project; that is even the largest clean-up in the whole world. Nigeria is making history with this project which will set example worldwide. “Though HYPREP’s emphasis on community e n g a g e m e n t i s commendable, but the problem here is that things take a long time to start. HYPREP should keep engaging the people,” he urged. Responding, Dr. Marvin Dekil, Project Coordinator of HYPREP, said the agency was ready to commence the cleanup of impacted Ogoni communities and that it had recently concluded screening

exercise that led to the selection of 21 companies to handle the project. He said: “The 21 companies have been cleared and are ready to be mobilised to site to commence the cleanup. The companies scaled through the entire procurement process. “Also, HYPREP has completed community; technical preparations and compliance to all procurement acts. HYPREP has not imposed anything on the area of livelihood in the communities”. The Federal Government had on April 28 reiterated commitment to the cleanup project. Vice-President Yemi Osinbajo had said at a brief ceremony during which the Ogoni Trust Fund escrow agreement was signed at the Presidential Villa, Abuja, that the present administration would ensure the project was transparent. “The signing of the escrow agreement is one that shows clearly that not only are we committed to ensuring that the cleanup is done, but also that we are committed to ensuring that it is done transparently,” Osinbajo said.

agos -- Shell Nigeria Gas, SNC, has re-trained 30 firefighters in Abia State and donated firefighting equipment to the state fire service. This intervention was triggered by two recent fire disasters in the state which resulted in deaths and loss of property worth millions of naira. Over 150 shops in the timber and furniture section of the Nkwo Ngwa Market in Aba was gutted by fire midNovember barely five weeks after an explosion on a pipeline belonging to the Nigerian National Petroleum Corporation, NNPC, in Umuaduru and Umuimo communities of the state killed a number of persons. The SNG intervention, according to the company’s Managing Director, Ed Ubong, was to demonstrate the company’s continued care for the people and support to Nigerians particularly those in the company’s areas of operations. “Some of these disasters are either avoidable or preventable. The major gaps are in training and equipment, hence our quick response to retrain the firefighters and provide them with modern equipment to support their operations,” Ubong said, adding that SNG would strengthen its gas distribution network in the Abia State to help in its rapid industrialisation. The equipment donated included tunics and personal protective equipment (PPE). The state’s Commissioner for Transport, Charles Chinedum Elechi, received the items with a commitment that the state would improve on its safety record in a manner that would promote industrialisation and development. Speaking at the donation, the state’s Fire Service Comptroller, Victor Gbaruko, described the training of his personnel particularly in hydrocarbon firefighting, as an investment worthy of emulation by other big players in the economy of the state. The 20-year old SNG is fully owned by Shell and is the first gas distribution company run by an oil major in Nigeria. SNG’s extensive gas distribution network in Abia, Ogun and Rivers states has boosted manufacturing output and helped these states to grow their internally generated revenues while providing local employment opportunities.