July edition

2015 July, SweetcrudeReports

Power

26

Nuclear power plant

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fter many years of planning, the F e d e r a l Government through the Nigeria Atomic Energy Commission, NAEC, announced that it has selected two sites for the construction of nuclear power plants in the country that could generate up to 2,400 megawatts, MW, of power.

The sites, Geregu in Kogi State and Itu in Akwa Ibom State, were selected after careful consideration of some critical features, and after several years of planning and evaluation, the Commission said.

The Chairman of NAEC, Mr. Erepamo Osaisai, who disclosed this during a presentation at the plenary of the Phase 2 Integrated Nuclear Infrastructure Review, INIR, mission in Abuja, said part of its progress is the concluded preliminary site selection activities and “detailed e v a l u a t i o n a n d characterisation to be conducted on preferred sites on the approval of government in Geregu, Ajaokuta Local Government Area of Kogi State and Itu in Itu LGA of Akwa Ibom State.

The commission added that training and capacity building for building and operating the plants are ongoing while it has

Nigeria's nuclear power plants to be built in Akwa Ibom, Kogi developed a framework to establish a ‘National Nuclear Insurance Policy and Scheme’ to “adequately address the civil liability of component for the Nuclear Power industry in conformity with the 1963 Vienna Convention on Civil Liability for Nuclear Damage.”

SweetcrudeReports had reported in April that NAEC

was in talks with Russia’s Rosatom Corporation to build four nuclear power plants costing about $20 billion (about N3.9 trillion) which would generate 4,800 megawatts (mw).

According to Erepamo, the plants will be co-financed by Rosatom, which will then build, own, operate and transfer (BOOT) them to

the government.

He noted that the preliminary licensing of the approved sites is expected by the end of 2016 from the Nigerian Nuclear Regulatory Authority, NNRA, which is currently developing the licences’ procedures.

The Permanent Secretary in the Ministry of Power, Dr.

Godknows Igali, said government’s intervention in the power sector includes the diversification of the electricity sources from the present 80 percent gas and 20 percent hydro to integrate nuclear power to meet its target of generating 20,000MW by year 2020.

Govt sets up task force on embedded power

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he Federal Government, through the Nigerian Electricity Regulatory Commission, NERC, has announced the setting up of a special regulatory task force to work with electricity distribution companies or Discos to help them quickly procure embedded power generation from identified sources.

Chairman of NERC, Dr. Sam Amadi, said this was a new drive to encourage Discos to embrace

embedded off-grid electricity to augment their on-grid supplies.

“We are working hard on embedded generation. Some of the Discos are far advanced on their plans to procure additional capacity through embedded generation,” Amadi said, without giving details on the composition of the task force He added that, “Eko is the most advanced (on embedded power), and is expecting about 300 to 400 additional megawatts from

this process. This would double the power supply in the Eko area."

“We are setting up a regulatory taskforce to work with these Discos to help them quickly procure embedded generation.

“We are also incentivising them to grab this opportunity to improve power supply. Also, we are now about to match owners of captive power with Discos so that they can release excess capacity to the grid through the Discos,” he added.

The NERC chairman made this disclosure as the commission issued a threat to revoke nonperforming licenses from among the 134 it has so far issued.

NERC's Commissioner of Engineering, Abbah Ibrahim, who lamented that most of the licenses have been dormant said they have not gone beyond the stage of issuance.

He spoke after the presentation of new licenses to four power firms in Abuja.

2015 July, SweetcrudeReports

Power

27

West Africa plans regional power market OSCARLINE ONWUEMENYI with agency reports

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est Africa's regional body will pool its resources to establish an electricity market to end the blackouts that have blighted its 15 member states for decades.

Heads of states, who gathered for a meeting of the Economic Community of West African States agreed to develop a regional electricity market almost two decades after the plan was conceived, Etienne Bailly, project director at Transco CLSG, told Reuters at a power conference in Nigeria.

Transco CLSG - set up by West African Power Pool, WAPP - will develop a 1,300 kilomwtres (807 miles) interconnection line across Ivory Coast, Guinea, Liberia and Sierra Leone.

"We have developed a master plan to address our energy deficit by creating a regional electricity market," the Ivorian said on the sidelines of a power conference in Nigeria's commercial hub, Lagos.

"In the next 10 years West Africa will have enough power plants, will have enough interconnection facilities," he said.

A consortium of development agencies including the World Bank, African Development Bank, European Investment Bank and German Export Bank have agreed to provide 329 million euros ($374.43 million) over 25 years for the

Power plant

The European Union has also provided 30 million euros to help set up an information and coordination centre that would supervise the electricity market based in Benin

project.

The project would involve developing additional power generation capacity and building more transmission lines across the region, Bailly said, adding more investment would be needed.

Discos to curb electricity theft with smart meters

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n a bid to overcome metering cloning and other forms of frauds against the electricity market, many distribution companies are resorting to the use of smart meters.

This is coming as the Nigerian Electricity Regulatory Commission, NERC, has announced that it is making some good progress in plans to deploy smart meter technology in the sector, as part of its efforts to

overcome cloning of electricity meters and other forms of fraud in Nigeria’s electricity industry.

NERC said in Abuja that it has taken delivery of a completed technical work it commissioned on regulation for smart metering and which will now allow it set up the appropriate framework for deployment of smart meters to distribution networks in the country.

It said that a number of the licensed electricity

distribution companies in the sector have indicated their interest in deploying the technology in their networks, adding that the expected regulation will provide the supporting framework for such development in the sector.

Chairman of NERC, Dr. Sam Amadi stated at a recent interaction with journalists that the draft regulation will be put out for public review and consideration before it is finalised and approved as a

regulatory document for use in this regard. “The Commission has also received completed technical work on the regulation on smart metering. This draft regulation is now slated for public consultation to enable operators and the general public review and comment on the regulation before it is finalised andapproved by the Commission,� Amadi said.

Bailly said the region currently produced 10,000 megawatts of electricity and had 4,000 km of transmission lines, but needed 26,000 megawatts of generation capacity and 16,000 km of connection lines to plug the power deficit.

The European Union has also provided 30 million euros to help set up an information and coordination centre that would supervise the electricity market based in Benin.

Africa's biggest economy, Nigeria, broke up its monopoly on power generation and distribution by privatising the sector two years ago, in the hope that it would attract foreign investors. But the amount of power produced has stagnated at around half total capacity.

2015 July, SweetcrudeReports

Power

28

Power station

Abuja Disco comes under NERC hammer OSCARLINE ONWUEMENYI

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he Nigerian Electricity Regulatory Commission, NERC, has descended heavily on the Abuja Electricity Distribution Company, AEDC, ordering it to refund excess monies from overbilling between the months of October and December 2014 to its customers.

The regulatory agency directed AEDC to, with immediate effect from the date of the order, commence the refund through energy credit of all excess charges billed its customers as a direct consequence of the adjustments in estimated methodology in some of the company’s business units.

According to NERC, this is following earlier notice of enforcement and subsequent investigation of instances of overbilling perpetrated by the company.

NERC accused AEDC of tripling its customers bills issued in September 2014 and issued it as bills for October 2014, without evidence of a commensurate increase in electricity supply within the same period.

It also accused AEDC of failing to forward report of the estimated billings it

AEDC shall with immediate effect from the date of this Order commence refund through energy credit of all excess charges billed its customers as a direct consequence of the adjustments

issued in every billing circle as provided under section 9 of the Methodology for Estimated Billing Regulation 2012, in the format prescribed by the regulation.

NERC further disclosed that it investigated AEDC for arbitrary imposition of random figures on clusters of its customers ranging from 18 to 28 per cent between October and December 2014 and in some cases 1,100 per cent increase, which resulted

NERC issues consultation guidelines for DISCOs

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he 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 issued guidelines for consultation by operators that want to review the cost of generation, transmission and supply of electricity, the prices of electricity services and classification of customers.

The regulatory agency noted in a statement made a v a i l a b l e t o SweetcrudeReports that the guidelines are designed to ensure that such consultations are comprehensive, rigorous

open to all relevant stakeholders, meaningful and effective.

It noted that, “NERC will not accept and consider the application of any distribution company for Revenue Requirement (RA), Rate Design (RD) and Customer Classification (CR) if it has not completed customer consultation in line with these guidelines."

It added, “These guidelines set out the principles and steps the Distribution Companies should adopt for engaging stakeholders before submitting tariff review

applications to the Commission.

"It aims to assist Discos make the right decisions about when, with whom and how to consult. The Consultation process is expected to achieve real engagement rather than merely following a routine or bureaucratic process”.

NERC further indicated that the consultation will create accountability in the electricity market as customers will know how the operators are serving them and the various costs of service that justify the rates they are paying.

in spike in customers’ bills as against the provisions of the Methodology for Estimated Billing Regulations 2012.

To this end, NERC said, “AEDC shall with immediate effect from the date of this Order commence refund through energy credit of all excess charges billed its customers as a direct consequence of the adjustments” in estimated methodology in some of the company’s business units.

“AEDC is to within five days notify the affected customers of the overbilling in writing in line with Regulation 9 (7) of the Nigerian Electricity Regulatory Commission’s Meter Reading, Billing, Cash Collections and Credit Management for Electricity Suppliers Regulation 2007.

“AEDC is also expected to publish in a newspaper with wide circulation within its franchise area an apology to affected customers stating their business units and the amount of excess charges billed them during the period under review.”

Finance

2015 July, SweetcrudeReports

29

LNG ship OSCARLINE ONWUEMENYI

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i g e r i a Liquefied Natural Gas Company Limited, NLNG - a joint venture between the government and foreign oil majors, has generated some $85 billion from exports of liquefied natural gas, LNG, since its inception 15 years ago.

"For us, it has been a success story. Between 1999 when we came on stream and now, we have realised some 85 billion dollars from exports of liquefied natural gas to buyers in Europe, America and Asia," chief executive officer of the

Nigeria LNG exports $85bn worth of LNG in 15 years ...Pays $1.6bn as tax company, Babs Omotowa told reporters.

He said the company, which was set up to harness Nigeria's vast natural gas resources and produce liquefied natural gas for export, has also paid billions of dollars to the state in tax.

"Just a few days ago, we paid 1.6 billion dollars to the government as tax and this will go a long way to assist the

new government in solving some of its problems," he said.

The new administration of President Mohammadu Buhari, who became the first Nigerian to oust a sitting president in democratic elections in March, is facing a severe economic crunch.

About 20 of the country's 36 states are unable to pay

workers salaries.

Omotowa said the company had paid 30 billion dollars in dividends to its shareholders over the years, including the government, which owns a 49-per-cent stake through the Nigerian National Petroleum Corporation, NNPC. N L N G ' s o t h e r shareholders are AngloDutch oil major Shell, which owns 25.6 percent, Total LNG Nigeria, a subsidiary of French oil giant Total, which

Govt denies depleting Excess Crude Account

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he Federal Government has denied that the Excess crude savings account will be depleted to pay government debts, including civil servants’ salaries.

Rather, it says, the government will use a $2.1 billion dividend paid into the treasury by Nigeria LNG Ltd., to pay wages, according to

President Muhammadu Buhari’s spokesman, Femi Adesina, in an e-mailed statement in Abuja.

Adesina noted that Nigeria’s 36 states and local arms of the government will also be able to draw “soft loans” from the central bank and have some debt restructured, to enble them meet their obligations.

The comments seek to clarify statements made by

Nigeria’s Accountant General Ahmed Idris that the Excess Crude Account, which holds the nation’s oil savings and has a balance of about $2 billion, will be drawn down by $1.7 billion.

The funds will be shared by the federal, state and local governments to meet their financial obligations, Idris had said.

“The measures approved

by President Buhari definitely do not include drawing down the remaining balance in the Excess Crude Account or the liquidation of the account as some media outlets have wrongly reported,” Adesina said.

The country is faced with depleted savings and an almost 50 percent plunge in oil prices in the past year.

owns 15 percent, and Italy's Eni, with 10.4 percent.

Omotowa said plans were afoot to expand the NLNG plant in Finima on Bonny island, in the oil and gas-rich southern Rivers state, by 2017.

"With six trains (production units) currently operational, plans for building Train 7 that will lift the total production capacity to 30 million metric tons per annum of LNG are currently progressing," he said.

He said Train 7 would cost an estimated 12 billion dollars, create 18,000 construction jobs and bring in an additional three billion dollars in exports when operational.

Nigeria currently exports 22 million metric tons of LNG, making it the world's fourth largest LNG exporter.

Liquefied natural gas, which is created by cooling n a t u r a l g a s a n d transforming into liquid for transport on tankers, represents around nine percent of global gas demand.

2015 July, SweetcrudeReports

Finance

30

Nigeria lost $500m in oil swaps since 2009 —NEITI OSCARLINE ONWUEMENYI

…13m barrels of crude lost in the process

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he Nigeria Extractive Industries Transparency Initiative, NEITI, says more than $500 million has been lost by the Nigerian government over fraudulent activities in the management of crude oil swaps over the years.

NEITI said its audit of the oil and gas sector for 2012 showed that the nation lost about $100 million in swap deal involving the exchange of crude from domestic allocation for refined petroleum products.

The audit report further showed that crude oil worth $6.4 billion was swapped in 2012, while the value of refined products was $6.3 billion, bringing total revenue loss to the Federation Account from 2009 to $500 million.

According to the audit report, Nigeria lost over 23 million barrels of crude valued at over $2.6 billion in 2012 alone. The breakdown shows that the Nigerian National Petroleum Corporation, NNPC, lost over 13 million barrels of crude valued at about $1.5 million. Three International Oil Companies sampled, lost over 10 million barrels of crude valued at $1.2 billion.

Director of Communication at NEITI, Ogbonnaya Orji, who made the disclosures at a World Bank-funded workshop for civil society engaged in the oil and gas sector, noted that asides the loss, the value of the refined products not delivered at all under this arrangement stood at N78.8 billion.

“The revenue loss to the nation on crude swap especially at the depot on fuel alone during the same period stood at N11.7 billion or $74.3 million depending on the exchange rate used.”

A review of the NEITI report showed that the country earned a total of $62.9 billion in the year 2012, comprising $30.3 billion from crude oil and gas sales, $26.9 billion from taxes, royalties, rents and $5.6 billion as revenue flows to states, local governments and other entities.

It showed that the aggregate unresolved difference with respect to all the financial flows in 2012 was $47.5 million, representing 0.075 per cent

Crude oil barrels

of total financial flows from all sources when compared to 0.14 percent recorded in 2011.

According to the report, about N1.3 trillion was processed for payment as subsidy to oil marketers, while the sum of N690 billion was actually paid during the period.

"A total of 862.7 million barrels was also recorded as fiscalised crude oil production at an average daily rate of 2.36 million barrels per a day," it stated.

A comparative breakdown showed that the amount from crude export sale declined to $21.6 billion from $24.7 billion in 2011, representing a 13 per cent decrease. Also, domestic

A total of 862.7 million barrels was also recorded as fiscalised crude oil production at an average daily rate of 2.36 million barrels per a day crude sale value declined to $18.15 billion from $18.36 billion in 2011, a 1.0 per cent decrease.

Gas sales also declined to $489 million from $610.8 million in 2011, down by 20

per cent.

Feed stock however grew to $1.84 billion under the period from $1.82 billion in 2011.

The report noted that “previous audit cycle witnessed a steadily

increasing trend in the total Financial Flows to the federation from $30.129 billion in 2009, to $44.944 billion in 2010, and $68.442 billion in 2011.

“However, there was a decline of eight per cent in 2012 to $62.944 billion. The decrease in 2012 was largely due to a drop in the sales revenue from crude oil and gas attributable to reduction in production and lifting volumes as a result of the following: crude theft, deferred production due to destruction of production facilities and crude losses resulting from sabotage and pipeline breakages,” the report added.

CBN clears gas legacy debts, pays N6.9bn to producers OSCARLINE ONWUEMENYI

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he Central Bank of Nigeria, CBN, has paid the sum of N6.9 billion to gas suppliers as part of its Nigerian Electricity Market Stabilisation Fund, NEMSF, which is set aside to ensure a steady power supply to the country.

The amount represents legacy debts owed the gas suppliers by power distribution companies, DISCOs.

CBN Governor, Godwin Emefiele, who disbursed the cheque to seven companies at an event in Abuja, disclosed that the payments made by the apex Bank represented debts by the power sector in proportion to the obligations to repay the facility by five DISCOs that have so far signed up to the facility.

Emefiele disclosed that Discos owed gas suppliers as much as N40 billion as at the end of December 2014.

While describing the disbursement to the gas suppliers as a milestone that had to be achieved, the CBN boss said the move was an important step in revitalising Nigeria’s energy sector.

Companies that got paid were Chevron, N2.04 billion; Ibom Power, N1.7 billion; Shell, N965 million; ND Western N852 million; Seplat, N739 million; NPDC, N407 million; and Pan Ocean, N 230 million. Eko Disco also received N4.4

million.

The CBN boss noted that gas pricing in the country has become commercially viable to the extent that existing investors could expand their operations and that even new investors could be attracted to the Nigerian market.

According to him, "What we have done is to ensure that gas pricing is commercially viable.

2015 July, SweetcrudeReports

Finance

31

Oando fuel station

KUNLE KALEJAYE

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ando Plc, an indigenous N i g e r i a n energy group, is divesting 60 percent equity stake of its downstream business to HV Investments, HVI, for US$461 million.

HV Investments is a joint venture owned by Helios Investment Partners and the Vitol Group.

A statement signed by Oando’s Head of Corporate Communications, Mr. Ainoije Alex Irune, explained that at the end of the deal, HVI will own 60 percent of the special purpose vehicle, while Oando will hold a 40

Oando divests 60% downstream equity for $461m percent stake.

For local content reasons, the voting rights structure is as follows – HVI and Oando will each have 49 percent voting rights and a Nigerian Helios affiliate two percent.

Oando’s chief executive officer, Mr. Wale Tinubu, said the deal will help positioned the company’s downstream for a new era of investment growth and profitability, adding that the divestment also enables the company to increase its focus on upstream and midstream businesses.

The total consideration of US$461.3 million will be funded by a US$276.8 million cash contribution from HVI and US$184.5 million in preference shares issued to Oando, subject to customary p u r c h a s e p r i c e adjustments, including working capital and longterm debt.

Said Mr. Tinubu: “This transaction is an exciting development in Downstream West Africa.

“By working with Vitol, a

NLNG dividends: Reconciliation ongoing with inter-ministerial team —NNPC

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he Nigerian N a t i o n a l P e t r o l e u m Corporation, NNPC, has c l a r i f i e d t h e c i r c u m s t a n c e s surrounding the reported non-remittance of the $11.6 billion LNG dividends as alleged by the Nigerian Extractive Industries Transparency Initiative, NEITI. A statement by the

corporation made available to our correspondent in Abuja disclosed that contrary to the impression created by NEITI that nothing was being done to get the money remitted, the matter has since been referred to the Inter-Ministerial Task Team, IMTT, for reconciliation and resolution.

“At the last meeting of the IMTT, it was resolved that the Minister of Petroleum,

Chairman of NEITI, Executive Secretary of NEITI, and the Group Managing Director of NNPC should meet on the issue of NLNG dividends and report back to the IMTT. “Unfortunately, that meeting has not held.

However, another meeting of the IMTT is coming up next week and the issue will be taken up from there.

“NEITI as a member of

global energy and commodities company, and the largest independent trader of energy products, and Helios, a premier Africafocused private investment firm, we have repositioned Oando Downstream for a new era of investment growth, profitability, and this venture holds u n p r e c e d e n t e d opportunities for the business. Importantly, this divestment also enables us to increase our focus on our upstream and midstream the IMTT is aware of the ongoing efforts to reconcile and resolve the issue of NLNG dividend remittance," NNPC said.

NEITI had accused the corporation of failure to remit about $11.6 billion outstanding total dividends arising from loans and interest repayments from the federal government’s investment in the Liquefied Natural Gas, L N G , i n t o t h e government’s coffers.

businesses.

"Even as proceeds of the sale will be applied almost entirely to reducing Oando’s leverage, we underscore the portfolio rationalisation achieved alongside the balance sheet optimisation".

Tinubu added that the partial equity agreement presents a unique opportunity for a significant growth in the size and scale of the company's operations, while substantially strengthening their position in the downstream sector.

Oando downstream operations include Oando Marketing Plc, a petroleum product retailing and distribution company with over 400 retail outlets and strategically located terminals in Nigeria, Ghana and Togo; Oando Supply Trading Limited, an indigenous physical trader of petroleum products in the sub-Saharan region, supplying and trading crude oil and refined petroleum products and Oando Trading Limited, an entity involved in the trading of crude oil and refined petroleum products in international markets.

Labour

2015 July, SweetcrudeReports

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Oil workers

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il workers, under the a e g i s o f Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), have urged shareholders and Board of the Nigerian Liquefied Natural Gas (NLNG), to approve the completion of Train 7 project to make the company more competitive in the global gas market.

It said the completion would enable the country to end gas flaring by harnessing the flared gas for domestic use and for export as well.

Speaking at the 4th Triennial Delegates Conference of PENGASSAN Branch of the NLNG, its President, Comrade Francis Olabode Johnson, said that Train 7 project was established to further exploit the emerging global market demand for LNG and to

Oil workers task govt, NLNG shareholders on Train 7 remain competitive, adding that in 2017, there is expected to be a potential drop in global LNG price due to competition as there is likelihood of

increase in the number of suppliers.

He said, “We expect that in the face of a drop in crude oil price and glut in global

Train 7 completion will definitely increase the company’s share of global market, enhance flare reduction or total flare out, and attract $10 billion Foreign Direct Investment (FDI) with zero cash out from the government

crude oil market, LNG would have become another veritable source of revenue and foreign reserve for the government and the company.

“Train 7 completion will definitely increase the company’s share of global market, enhance flare reduction or total flare out, and attract $10 billion Foreign Direct Investment (FDI) with zero cash out from the government.”

According to him, “Other benefits Train 7 will bring on completion are job creation through the construction of the plant in Bonny and construction of gas pipelines in other communities; increase capacity to meet

domestic market demand, and maximisation of the N i g e r i a C o n t e n t Development Act through local capacity building.”

Johnson urged the government to give priority to domestic gas utilisation over export, enhance gas utilisation with full reappraisal of the Gas Master Plan, and adequately fund the NLNG’s operations.

He also urged the government to extract commitment on gas flaredown to a nearest predictable timeline from the oil and gas companies operating in the country and find lasting solution to incessant vandalism of gas pipelines.

Workers allege influx of expatriates at Indorama/EPL MKPOIKANA UDOMA

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orkers at IndoramaE l e m e Petrochemicals Limited, I/EPL, have expressed worries over alleged influx of Indian expatriates recruited into the company by the

management, hinting that the company is suddenly becoming ‘Indian-only’.

They also alleged that over 200 Indians are now working in the company, excluding their dependents who also reside within the company complex.

The workers, who spoke on the grounds of anonymity,

while registering their displeasure at the d e v e l o p m e n t t o SweetCrudeReports in Port Harcourt, said the situation has brought great panic amongst Nigerians in the employ of the company.

They claimed that the influx of expatriates is following notice of

redundancy served the workers earlier this year, which they viewed as a deliberate attempt to layoff Nigerian workers and pave the way for recruitment of more Indians to take over the job of Nigerians.

According to one of the sources, “It is very sad and worrisome that while

thousands of Nigerian youths are roaming the streets looking for jobs, Indorama management is busy recruiting more Indians (most of whom are even less qualified) to come through illegal windows and do jobs quite different from quota jobs allotment.

This is an insult on the potentials of Nigerians and it is unacceptable.”

Labour

2015 July, SweetcrudeReports

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PENGASSAN cautions Buhari on sale of local refineries

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he Petroleum and Natural Gas Senior Staff Association of N i g e r i a , PENGASSAN, says it still maintains strong objection to the privatisation of the stateowned refineries in Warri, Kaduna and Port Harcourt.

According to the union, the existence of state-owned refineries was in keeping with the Organisation of the Petroleum Exporting Countries, OPEC’s, principle that member countries should hold good grip of the commanding height of their economy.

"PENGASSAN maintains strong objection to the privatisation of state-owned refineries as the OPEC principle is being cautiously guided by other OPEC member countries,” the association said in a statement by National Public Relations Officer, Mr Emmanuel Ojugbana.

It also called on President Muhamadu Buhari to increase local refining capacity before embarking on any deregulation process, urging him to ensure that the focus of deregulation policy was based on local production rather than importation.

The union maintained that if local refining was not increased to meet local demand for petroleum products, especially the premium motor spirit (petrol), removing subsidy on petroleum products would bring more hardship on Nigeria.

It stated that removing subsidy while the country depended on importation of refined products would make prices of refined products to be out of the reach of the masses and would cause inflation.

PENGASSAN also said that importation of refined petroleum products was a major drain on the nation’s revenue, adding that it created jobs for the refining nations in spite of the high unemployment rate confronting Nigeria.

"Importation of refined petroleum products is also putting the Naira under undue pressure and creating social problems for the economy.

This is unacceptable to PENGASSAN. "Abrupt removal of fuel subsidy will create chaos that

Refinery

may ground the economy.

PENGASSAN calls for wellcoordinated measures with timeline to achieve selfsufficiency in local refining as a means of proffering acceptable steps to end fuel subsidy.

"This should be combined with such other measures for effective optimisation of gas, especially for domestic, industrial, electricity and automotive energy. Such will create other affordable and friendly sources for

energy needs” it stated.

The union also said: "As an important stakeholder in the sector, we oppose the petroleum products importation regime, which is rent seeking and indeed a drain device that is inimical

to our economic and social empowerment.

"It is affecting our selfdependence and means of job creation. Thus, we maintain our unwavering belief in local refining”.

TUC bemoans insecurity in Rivers MKPOIKANA UDOMA

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he Trade Union Congress of Nigeria, TUC, has decried growing level of insecurity in Rivers State, as it threatened to withdraw its members from work for personal security.

TUC chairman in Rivers State, Comrade Chika Hyginus Onuegbu, made this known in a letter to the n e w l y - d e p l o y e d Commissioner of Police in

Rivers State, Mr. Chris Ezeike.

The letter was copied to the Inspector General of Police, Mr. Solomon Arase; the TUC PresidentGeneral/Secretary General, and nine others, following recent attacks on secretariats and leadership of labour unions in Rivers State.

The letter read: "As you are aware, Rivers State is the treasure base of the nation and the centre of oil and gas operations in

Nigeria. Unfortunately, the spate of criminality: namely kidnapping; armed robbery; oil theft and pipeline vandalism; and wanton destruction of lives and property has reached an unprecedented level in the state.

"Many workers and residents of the state have been kidnapped, killed, attacked and maimed with impunity in recent times without any effective action by the security agents to curb this ugly trend. The situation

is so bad that many of my members now live in fear and are actively seeking for transfers out of Rivers State. Also worrisome is the unwarranted attacks on the secretariat and leadership of labour unions in Rivers State."

Onuegbu, in the letter, warned that failure by the Police to combat criminality will result to shutting down of labour activities by the TUC members in the state.

Solid Mineral

2015 July, SweetcrudeReports

Local miner

Govt may delay online registration, payment for mineral titles ...Dangote Group to mine coal in Kogi, Benue

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he Mining Cadastre Office, M C O , h a s hinted of a possible delay in online registration and payment for mineral titles online, proposed to commence this year.

Dropping the hints in Abuja, Director-General of the MCO, Mohammed Amate, said this might not start as scheduled because of the delay in the release of funds.

But, he maintained that arrangements for the smooth take-off of the registration scheme had already been concluded as he emphasised the importnce of the exercise.

According to him, the online registration would facilitate speedy registration of mining titles, while promoting development of the mining sector, building foreign investors’ confidence and creating more jobs.

The registration is planned to be conducted through MCO's website, which Amate said would enable potential investors across the world to register and pay for their mineral titles online without coming to the office.

“What we intend to do this year is to set up a system, where you can sit down anywhere to Google or log on to our website and see those areas that you can apply for.

“What we are doing now is to enable investors to apply online without coming to the office; they can also submit the application online and pay whatever fees online,’’ Amate

said, adding that the mineral titles covered exploration, mining, quarry, small-scale mining, among others.

In another development, the Dangote Group will any time from now commence mining of coal in Kogi and Benue states in line with Federal Government's drive to ensure adequate

exploitation of the nation's solid minerals.

The group is one of six other companies (all foreign firms) which have already completed their exploration exercises, delineated deposits and commenced development in preparation for commencement of fullscale mining of various solid mineral resources in the

34

country.

The companies are also currently raising funds from the capital market to begin mining this year, according to the Mining Cadastre Office. Amate stated that apart from coal, other minerals that would be mined by the companies included gold, iron-ore and lead/zinc, naming the foreign companies as Kogi Mines Ltd, Segilola Nig. Ltd, Mines Geotechniques Nig. Ltd, Northern Numero Resources Ltd, West African Polaris Investment Ltd as well as Tongyi allied and Mineral Services Ltd. “Indeed, according to the reports we have received, most of the companies have commenced development and this will eventually lead to actual mining.

“No financial institution will be willing to fund any mining operation until the company carries out adequate bankable feasibility studies, under Joint Ore Reserve Committee specifications recognised internationally,’’ he said.

He said Kogi Mines, an Australian mining firm, would mine iron at Agbaja in Kogi, while Segilola Nig. Ltd would mine gold at the Iperindo axis of the IIesha gold schist belt in Osun.

Geotechniques Nig. Ltd and Northern Numero Resources Ltd, both Australian companies, would mine gold in Kebbi.

The West African Polaris Investment Ltd, a Chinese company, would mine tin and columbite in Nasarawa state and the Tongyi allied and Mineral Services Ltd, another Chinese company, would mine lead/zinc in Wasa, Plateau State.

Use local raw materials, save forex, Miners urge Govt

T

h e M i n e r s Association of Nigeria has stressed the need for the Federal Government to ensure manufacturing industries in the country start using industrial minerals in-country for their production, saying this would save the nation much-needed foreign exchange.

According to President of the association, Alhaji Sani Shehu, Nigeria have over 33 commercially viable solid mineral deposits, which

generate less than one per cent of its Gross Domestic Product.

He maintained that in the face of dwindling income from oil and gas, the nation's huge solid minerals could be adequately exploited to increase revenue and boost the economy.

“Certain things are happening, which perhaps, the government is not aware of. Every year, millions of dollars are spent on raw materials that are so vast in this country. We

have more than enough yet, we prefer to use the foreign exchange that we have to go and buy foreign raw materials,Shehu said.

He added: “The implication of this is that we are creating jobs where we are importing these materials and creating unemployment here. We are enriching the people there and impoverishing our people here. I implore the President to immediately set up a team to conduct what we call gap analysis. The study will determine what is available and what is needed.

“In the last two years, Sokoto Cement and Ashaka Cement have been using gypsum produced locally.

Before now, they spent billions of dollars importing this gypsum. This is applicable to barites and to other industrial minerals.

“We request the President to, in the next three or four months, make a decision as to what quantity of industrial minerals is available and compel our industries to use what we have in order to get what we want.”

Freight

2015 July, SweetcrudeReports

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Kidnappers

20 mariners kidnapped off Nigeria in 2 months —Report

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r y a d Maritime, the UK’s leading maritime intelligence and operations company, has released its analysis of worldwide reported incidents of piracy and crime against mariners covering the period, April 1 to June 30, 2015.

It said in the report that kidnapping of crew for ransom remains the most significant threat to mariners in the Gulf of Guinea, as it reported that at least 20 mariners were taken from vessels off the shores of Rivers and Akwa Ibom States in Nigeria in April and May. Providing commentary on maritime piracy and crime around the world, the conflict in Yemen and Libya and the migrant crisis in the Mediterranean, the report

Kidnapping of crew for ransom remains the most significant threat to mariners in the Gulf of Guinea, as it reported that at least 20 mariners were taken from vessels off the shores of Rivers and Akwa Ibom States in Nigeria in April and May outlines the diverse and complex threats that shipping companies and mariners face.

Dryad’s latest figures show that Southeast Asia continues to dominate maritime crime incidents globally, with 120 reports of piracy and maritime

crime instances occurring in the region since January 1, 2015, an increase of 22% compared to the first six months of 2014. Of these reported incidents, 12 were vessel hijackings – an increase of three compared

to the same period last year.

Dryad noted that the arrest of two sets of hijackers this year will likely result in a slowdown in the numbers of small product tankers being hijacked in the region, but it fully expects a return of attempted hijacks in July, as the criminal gangs involved have proved themselves to be both resilient and adaptable.

Ian Millen, Chief Operating Officer, Dryad Maritime; “Our latest figures for piracy and maritime crime highlight the uncertain, chaotic and, sometimes, dangerous nature of global maritime operations. The continued containment of the Somali piracy threat is both welcome and a testament to the measures taken to tackle it, but other areas give us more cause for concern.

Southeast Asia is in urgent need of a joined-up effort to tackle the criminal gangs

who are hijacking small regional tankers and robbing other vessels in transit, with the Singapore Strait being in dire need of some effective, coordinated action.

The wars in Yemen and Libya and the security integrity of important arteries like Suez, bring their own complexities to maritime operations. From restrictions on maritime trade in Libya and Yemen, terrorism concerns in the Suez Canal zone and the pressures of becoming engaged in mass migration rescue operations, mariners, and those who have a duty of care to them have a plenty to think about. As if that wasn’t enough, we’ve seen vessels attacked by military and rebel forces off Libyan ports and others fired upon and detained in the Arabian Gulf.”

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Maritime stakeholders task govt on port infrastructure

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aritime operators at the justconcluded L a g o s Maritime Expo, NIMAREX, have suggested that the Federal Government should i m p r o v e o n p o r t infrastructure, to boost maritime trade.

The experts made the suggestion at the closure of expo in lagos. An exhibitor at the show, Mr Moses Macaulay, a shipping operator working with RANGK Ltd, urged the Federal Government to i m p r o v e o n p o r t infrastructure.

"The port infrastructure we have is not adequate but the Federal Government is trying. Government should try and extend the type of modern port facilities in Onne port to other ports, including Lagos ports,’’ Macaulay said.

Mr Dike Osita, Head, Chartering, Destiny Maritime and Shipping Ltd, expressed concern about the constant gridlock in Apapa and Tin-Can ports access roads.

Osita said the perennial gridlock along the Lagos ports access roads had affected the company’s income and also urged the government to invest in rail transportation to boost intermodal transportation of goods and to also decongest the access roads to the ports.

Miss Juliet Orji, Marketing/Public Relations Officer, West Atlantic Shipyard, WAS, said full participation by stakeholders in future maritime expos would create

Port harbour

room for a full grasp of activities in the industry as she stressed the need to tap in full opportunities in the maritime sector.

In his message to the opening of the expo, a former of Head State, Gen. Abdulsalami Abubakar (rtd.), suggested a road map on how to tap the maritime potential of the nation.

Abubakar said the road map would transform Nigerian

ports to be the hub of the West Africa sub-region.

The former head of state, who was represented by Vice Admiral Samuel Afolayan (rtd.), said Nigeria had over 400 nautical miles and large human resources, said 80 per cent of the nation’s maritime resources had yet to be tapped.

Mr Hassan Bello, the Executive Secretary, Nigerian Shippers’ Council,

NSC, on his part, urged the Federal Government to provide the enabling environment for the growth of the maritime industry.

Bello said at the three-day Maritime Expo that investors were operating under an unfavourable climate, adding that there was no power supply for the terminal operators.

"The access roads for evacuation of cargo through

Cargo Movement: Nigerien shippers expected in Nigeria

S

hippers from the Republic of Niger will be in Nigeria next month on inspection, as part of plans for their use of Nigerian ports as transit for their cargo.

They will be assessing the capability of the nation's ports and personnel to handle their goods.

Executive Secretary of the Nigerian Shippers’ Council, Mr. Hassan Bello, disclosed this in Lagos, saying plans had been on for long between the council and their Nigerien

counterparts for movement of cargo bound for that country through Nigeria.

“We are in competition with other ports because the destination of cargo is at the feet of the consignee and the consignee will always go where everything is favourable to him.

“This is why we are here to partner with you on how to make our ports better.

Already, we are expecting Nigerien shippers in August; they are coming here to examine the readiness of our ports for business. This is happening because we have

been marketing Nigerian ports to them,” Bello said at the APM Terminals in Apapa, Lagos, during a visit with members of his management team.

Stressing the importance of cooperation by stakeholders with his council to eliminate problems inhibiting the efficiency of Nigerian ports, he maintained that it was through this that inland countries could be attracted to move their cargo through Nigeria.

Pointing to problems with the clearing of cargo and the

continuous breakdown of scanners used in the examination of cargo, he said: “We want Nigeria to be the preferred destination of cargo; that is why it is important that we compare notes. We met with the Nigeria Customs Service last week to discuss the problems affecting cargo clearing process across all the commands.

“There are problems relating to infrastructure, scanners breaking down or being virtually nonexistent and epileptic power supply to the ports.

the ports and other terminals are extremely difficult to go through. It is our duty to make it clear to the government that this is the time it needs to step in comprehensively so that the maritime industry will make its expected contributions to the economy," he said.

In a message to the Expo, Dr. Patrick Akpobolokemi, the Director-General, Nigerian Maritime Administration and Safety Agency, NIMASA, said the agency was willing to partner with all stakeholders toward the growth of the industry.

Akpobolokemi, who was represented by Mr Callistus Obi, Executive Director, Maritime Labour and Cabotage Services of NIMASA, said there must be development of indigenous capacity in the sector "because without the development of indigenous capacity, we will remain where we are".

He stressed: "The crew onboard vessels is a critical issue NIMASA is working toward to make sure Nigeria has enough seafarers. That is why we are organising the National Seafarers Development Programme.

2015 July, SweetcrudeReports

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Pirates

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eavily armed m e n suspected to be sea pirates recently invaded the Nigerian Customs Service base in Oron, Akwa Ibom State, killing an officer and carting away 10 rifles.

Residents of the area who witnessed the incident, said the gunmen attacked the base at about 9pm on the night of the attack.

The Nigerian Customs Marine Base in Akwa Ibom is located at Esin Ufot, a fishing community in Oron Local Government Area of the state.

An eye witness, who gave his name as Eyo Bassey, said the area has come under consistent attacks by the hoodlums.

According to him, “The socalled pirates attacked the Nigerian Customs Marine office in Oron and killed one officer, injured many and went away with 10 rifles.”

Another concerned citizen, Mr. Theodore Edak, lamented that the sea pirates were becoming more daring by the day and have been wreaking havoc in almost all the riverine communities in Akwa Ibom and Cross Rivers states.

He said the militants have raided the police station, the Nigerian Immigrations Service barracks and key fishing settlements in the area.

In his words, “The situation

Sea pirates sack Customs base in Akwa Ibom is becoming very critical nowadays as the militants now attack security operatives and local fishermen alike. The other day, they ransacked a police station and later they attacked an Immigrations Base.”

“From Oron waterway to Uta-Ewa in Ikot Abasi Local Government Area, sea pirates have been robbing and killing people almost on a daily basis.”

“The last time it happened here in Oron, they invaded and overpowered the Marine Police and carted away their arms while the policemen fled for their lives,” he narrated.

The eye witnesses insisted that the sea pirates were better armed than operatives of the Nigeria Police Force, Nigeria Customs Service and the

Nigeria Immigrations Service.

However, while speaking on the grounds of anonymity, a high ranking officer of the Nigerian Customs Service in Akwa Ibom/Cross Rivers Command, who confirmed t h e a t t a c k t o SweetCrudeReports, said investigations on the most recent incident was ongoing.

According to him; “Yes, it is

Expert wants ship owners to access Cabotage Fund

C

hairman, Planning C o m m i t t e e , Nigeria Maritime Expo, NIMAREX, Mr Ayorinde Adedoyin, says ship owners should be allowed access to the Cabotage Vessel Financing Fund, CVFF. Adedoyin stated this in Lagos, saying government should also enforce the Local Content Act..

The Nigerian Maritime Administration and Safety Agency, NIMASA, has been the custodian of the Cabotage Vessel fund since 2004 as stipulated by the Cabotage Act. A d e d o y i n s a i d enforcement of the Local Content Act would bring positive developments to the maritime sector as he maintained that in 2016,

with determination, the Expo would be made bigger.

Adedoyin urged the stakeholders in the maritime industry to be more determined to enable them achieve their goals, stating that some of the companies which participated in the Expo were not known before now .

"The whole idea of NIMAREX is to showcase

true that militants attacked the Marine Base of the Nigeria Customs Service in Oron on Monday.”

“It is also true that one Customs officer was killed and some rifles taken away by the militants,” he said, adding that the attack was an isolated case as he denied there had been repeated attacks in the area.

what you have and allow people to see what you do, how you do it, and the value added service you can give to their business.

"We should continue to do what we do. We should continue to show people.

At least, this year I have been able to prove a point that at least we can do it.

"If we are determined to do it by next year, they should come and we will make it bigger. The larger we are the better for all of us,’’ Adedoyin added.

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Motoring

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Chrysler tops Ford, Toyota as GM slips 3% in June

Chrysler

A

utomakers released U.S. June sales figures on Wednesday, and it was Nissan (7201.TJP) leading the way with a more than 13 percent increase in sales over last year as crossover SUVs remain the momentum theme in the industry.

Fiat Chrysler (FCAM) U.S. June auto sales rose 8 percent from a year ago, boosted by the continued strength of its Jeep SUV brand, while Toyota (7203.T-JP) and Ford Motor’s (F) trailed behind—seeing U.S. auto sales jump 4 and 2 percent, respectively. Separately, GM’s (GM) June sales slipped 3 percent despite the best June on record for its Chevrolet crossovers.

It was the first time Chrysler has outsold Ford at the retail level, which doesn’t include corporate fleets.

All told the U.S. auto

sales rate was 17.16 million according to Autodata. It marked the best June for auto sales since 2005, but the four percent growth rate fell about a percent shy of the growth analysts had expected. Truck and SUV sales grew again at a faster pace than sedans, aided by moderately low gasoline prices.

GM and Ford said on Wednesday increases in the average transaction prices for their vehicles, particularly trucks and SUVs, outpaced sales volume growth that fell short of Wall Street expectations. Ford, for example, said prices for its F-series trucks rose 8 percent, or $3,600, while sales volume for the pickup truck line dropped 8.9 percent in June. Nissan benefited from the growth of its popular crossovers as well, with sales of the Nissan Murano and Rogue jumping nearly 75 percent and 55 percent, respectively, for the month

of June.

Sales of Fiat Chrysler’s (FCA-IT) Jeep brand jumped 25 percent in June, led by a 39 percent surge in mid-sized Cherokee sales, the company said on Wednesday.

Chrysler 200 sedan sales rose 153 percent to 18,560 vehicles. Private industry data reviewed

by Reuters showed that in the first half of the year, a large portion of Chrysler 200 sedan sales were to rental agencies.

Sales of the Chrysler brand fell 28 percent, as Town & Country minivan production slowed as the plant where it is made is in transition to a new model.

Toyota handily topped estimates for the month by more than one percent thanks in part to rising momentum from luxury SUV sales. “The demand for luxury utility vehicles

continues to grow and has helped put Lexus and its dealers on a record sales pace for the year,” said Jeff Bracken, Lexus group vice president and general manager. “The new NX compact crossover continues to be one of the hottest new models on the market.”

It was a different story for General Motors whose sales fell 3 percent compared to an Edmunds estimate that predicted a fall of just 0.6 percent.

GM shares were down 1.1 percent at $32.97 late on Wednesday afternoon.

GM gained in truck market share however, led by the success of Chevrolet Silverado and GMC Sierra full-size pickups.

2015 Nissan Murano: Real World Review What is it? 2015 Nissan Murano Competitors: Ford Edge , Honda Pilot ,

Hyundai Santa Fe , Jeep Grand Cherokee Alternatives: Lexus RX , Honda Pilot , Toyota Venza Pros: Stand-out styling, technological bells and whistles.

Cons: Forgettable handling, middle-of-theroad performance.

Would I buy it with my own money? If I valued safety features and style over blander, more practical options, absolutely.

Walk outside to your nearest parking lot at work or school, and chances are you’ll see a gathering as distinctive as a flock of sheep, stripped of character to maximize utility and homogenized to meet stringent standards. Nissan’s 2015 Murano at first glance offers a reprieve from the CONTINUES ON PAGE 40

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Nissan Murano CONTINUED FROM PAGE 39

mundane with what it calls the “concept car for the street”–but alas, looks can be deceiving.

Like the boomerang headlights or not, the styling pops compared to all the sedate SUVs, especially in that iconic Pacific Sunset color. The curvaceous cockpit looks like it was designed by the Romulans, and the quartz trim offers a refreshing change from the simulated woods and metal touches typical for the segment. While Nissan tries to position the Murano as a quasiluxury car, the materials inside are more like Honda than Volkswagen.

Quality plastic is still plastic, but the futuristic cabin still has all the conventional knobs and dials you need, unlike Cadillac’s CUE, or Ford’s still-aggravating Sync.

While the styling looks fitting for Tomorrowland, the driving experience is decidedly stuck in the present. Not as smooth as a Pathfinder or nimble as a Mazda CX-5, the handling strikes a lukewarm middle ground

Chrysler tops Ford, Toyota as GM slips 3% t h a t ’ s a s memorable as picking up the keys to a midsizesomething from Avis. It’s not bad, m i n d you—traction gives way to i n e v i t a b l e understeer, with mild body roll and adequate steering feedback. Sure, I have more fun flogging my dad’s 2008 Honda Odyssey, but it’s a compliant cruiser, thanks to the comfy “Zero Gravity seats.”

Power comes aplenty from the 3.5-liter V6 making 260 horsepower, which won’t send your heart racing as you effortlessly overtake slower traffic on mountain passes.

(Unlike most gearless transmissions, the Nissan

CVT unit doesn’t force the engine into a constant motorboat sound). Its 21 city / 28

highway mpg is in the same ballpark as other midsize SUVs, but even in all highway driving the

most I could wring out was 26 mpg, and I averaged 25 mpg overall logging nearly 900 miles.

Technology

2015 July, SweetcrudeReports

Floating liquefied natural gas

LNG floating diagram

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l o a t i n g liq uefied natural gas (FLNG) refers to water-based liquefied natural gas (LNG) operations employing technologies designed to enable the development of offshore natural gas resources. While no FLNG facilities currently exist, a facility is in development by the Malaysian national oil company PETRONAS, and is due to be completed by the end of 2015. Floating above an offshore natural gas field, the FLNG facility will theoretically produce, liquefy, store and transfer LNG (and potentially LPG and condensate) at sea before carriers ship it directly to markets.

History Studies into offshore LNG production have been conducted since the early 1970s, but it was only in the mid-1990s that significant research backed by experimental development began.

In 1997, Mobil developed a

FLNG production concept based on a large, square structure (540 by 540 feet (160 m Ă— 160 m)) with amoonpool in the center, commonly known as "The Doughnut". The Mobil proposal was sized to produce 6,000,000 tonnes (6,600,000 tons) LNG per year produced from 7,400,000 cubic metres (260,000,000 cu ft) per year of feed gas, with storage provided on the structure for 250,000 cubic metres (66,000,000 US gal) of LNG and 103,000 cubic metres

(27,000,000 US gal) of condensate.

In 1999, a major study was commissioned as a joint project by Chevron Corporation and several other oil and gas companies.

This was closely followed by the so-called 'Azure' research project, conducted by the EU and several oil and gas companies. Both projects made great progress in steel concrete hull design, topside development and LNG

While no FLNG facilities currently exist, a facility is in development by the Malaysian national oil company PETRONAS, and is due to be completed by the end of 2015.

Floating above an offshore natural gas field, the FLNG facility will theoretically produce, liquefy, store and transfer LNG (and potentially LPG and condensate) at sea before carriers ship it directly to markets

transfer systems.

Since the mid-1990s Royal Dutch Shell has been working on its own FLNG technology. This includes engineering and the optimization of its concept related to specific potential project developments in N a m i b i a , T i m o r Leste/Australia, and Nigeria.

In July 2009, Royal Dutch Shell signed an agreement with Technip and Samsung allowing for the design, construction and installation of multiple Shell FLNG facilities.

LNG floating station

41

Petrobras invited three consortiums to submit proposals for engineering, procurement and construction contracts for FLNG plants in ultra-deep Santos Basin waters during 2009. A final investment decision was expected in 2011.

As of November 2010, Japan's Inpex planned to leverage FLNG to develop the Abadi gas field in the Masela block of the Timor Sea, with a final investment decision expected by the end of 2013. Late in 2010, Inpex deferred start-up by two years to 2018 and cut its 'first phase' capacity to 2.5 million tons per year (from a previously proposed capacity of 4.5 million tonnes).

As of November 2010, Chevron Corporation was considering an FLNG facility to develop offshore discoveries in the Exmouth Plateau of Western Australia, while in 2011, ExxonMobil was waiting for an appropriate project to launch its FLNG development.

A c c o r d i n g t o a presentation given by their engineers at GASTECH 2011, ConocoPhillips aimed to implement a facility by 2016-19, and had completed the quantitative risk analysis of a design that would undergo pre-FEED study during the remainder of 2011.

In June 2014, GDF Suez and Santos Ltd. made a decision to halt development on an Australia offshore gas field project that had proposed to use floating LNG platform technology. A part of the decision included the perception that longterm capabilities of North CONTINUES ON PAGE 42

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LNG floating station

CONTINUED FROM PAGE 41

American gas fields due to hydraulic fracturing technologies and increasing Russian export capabilities may adversely affect the profitability of the venture due to competition.

Current Projects A number of major gas and oil companies are still researching and considering FLNG developments, with several initiatives planned for the future. However, the world's first development of FLNG is Shell's Au$12bn Prelude FLNG project, 200 kilometres (120 mi) offshoreWestern Australia.

Royal Dutch Shell announced their investment in FLNG on 20 May 2011 and construction began in October 2012.

In April 2010 Shell's FLNG technology was selected as the Sunrise Joint Venture’s preferred option for developing the Greater Sunrise gas fields in the

Floating liquefied natural gas Timor Sea. This followed an extensive and rigorous concept-evaluation process during which the merits of the project were weighed up against alternative onshore solutions. The Woodsideoperated JV is now seeking to engage regulators on the concept selection process.

Following the decision by Shell to go ahead with its Prelude FLNG development, the Sunrise project would be the second deployment of Shell’s proprietary FLNG design. The Shell project is scheduled to begin processing gas in 2016.

In February 2011, Petronas awarded a FEED contract for an FLNG unit to a consortium

Following the decision by Shell to go ahead with its Prelude FLNG development, the Sunrise project would be the second deployment of Shell’s proprietary FLNG design. The Shell project is scheduled to begin processing gas in 2016 of Technip and Daewoo Shipbuilding & Marine Engineering. The facility will be located in Malaysia, although the specific gas field is unknown.

GDF Suez Bonaparte – a joint venture undertaken by

the Australian oil and gas exploration company Santos (40%) and the French multiinternational energy company GDF Suez (60%) – has awarded a pre-FEED contract for the Bonaparte FLNG project offshore

Northern Australia. The final investment decision is expected in 2014, with startup planned for 2018.

The first phase of the project calls for a floating LNG production facility with a capacity of 2 million mt/year.

Challenges Moving LNG production to an offshore setting presents a demanding set of challenges.

In terms of the design and construction of the FLNG facility, every element of a conventional LNG facility needs to fit into an area roughly one quarter the size, whilst maintaining appropriate levels of safety and giving increased flexibility to LNG production.

Once a facility is in operation, wave motion will present another major CONTINUES ON PAGE 43

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challenge. LNG containment systems need to be capable of withstanding the damage that can occur when the sea’s wave and current motions cause sloshing in the partly filled tanks. Product transfers also need to deal with the effects of winds, waves and currents in the open seas.

Solutions to reduce the effect of motion and weather are addressed in the design, which must be capable of withstanding – and even reducing – the impact of waves. In this area, technological development has been mainly evolutionary rather than revolutionary, leveraging and adapting technologies that are currently applied to offshore oil production or onshore liquefaction. For example, traditional LNG loading arms have been adapted to enable LNG transfers in open water, and hose-based solutions for both side-by-side transfers in calmer seas and tandem transfers in rougher conditions are nearing fruition.

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Floating liquefied natural gas

Advantages Among fossil fuels, natural gas is relatively clean burning. It is also abundant and affordable and may be able to meet world energy needs by realising the potential of otherwise unviable gas reserves (several of which can be found offshore North West Australia). FLNG technology also provides a number of environmental and economic advantages:

· Environmental - Because all processing is done at the gas field, there is no need to lay long pipelines all the way to the shore.

There is also no requirement for compression units to pump the gas to shore, dredging and jetty construction or the onshore construction of an LNG processing plant, all of which significantly reduce the project's environmental footprint. Avoiding construction also helps preserve marine and coastal environments. Additionally, environmental disturbance would be minimised during the later decommissioning of the facility, because it could be disconnected easily and removed before being refurbished and re-deployed elsewhere.

LNG floating station

·Economic – Where pumping gas to shore can be prohibitively expensive, FLNG makes development economically viable. As a result, it will open up new business opportunities for countries to develop offshore gas fields that would otherwise remain stranded, such as those off the coast of East Africa. FLNG is also conducive to side stepping complexities involving neighboring countries where disputes would make pipelines vulnerable or impractical such as in Cyprus and Israel.

Moreover, LNG is slowly gaining its role as direct use fuel without regasification with operational cost and least pollution benefits in road, rail, air and marine transport.

Operations: The FLNG facility will be moored directly above the natural gas field. It will route gas from the field to the facility via risers. When the gas reaches the facility, it will be processed to produce natural gas, LPG, and natural gas condensate. The processed feed gas will be treated to remove impurities, and liquefied through freezing,

before being stored in the hull. Ocean-going carriers will offload the LNG, as well as the other liquid byproducts, for delivery to markets worldwide. The conventional alternative to this would be to pump gas through pipelines to a shore-based facility for liquefaction, before transferring the gas for delivery.

Specifications: In the case of Shell’s Prelude FLNG, engineers have managed to fit every component of an LNG plant into an area roughly one quarter the size of a conventional onshore plant.

Even so, Shell's facility will be the largest floating

offshore facility ever built: It will measure around 488m long and 74m wide, and when fully ballasted will weigh 600,000 tonnes (roughly six times as much as the USS Nimitz aircraft carrier).

The specifications make Shell's FLNG facility particularly well-suited for fields with high production rates for reserves starting at 2 to 3 trillion cubic feet (57×109 to 85×109 m3) and beyond – less than a tenth the size of the Groningen gas field off the Netherlands.

Construction: The Shell FLNG facility will be constructed at Samsung's Geoje Island shipyard in Korea. Some

A unique feature of Shell’s FLNG design is its ability to stay safely moored in harsh weather conditions, including category five cyclones.

Potentially, this could result in more uptime for the facility

modules may be constructed elsewhere and then transferred to the shipyard for assembly. The facility can remain on station for more than 25 years, and its lifetime can be further extended through overhaul and refurbishment. The hull has a design life of 50 years.

Safety: A unique feature of Shell’s FLNG design is its ability to stay safely moored in harsh weather conditions, including category five cyclones. Potentially, this could result in more uptime for the facility.

Additionally, Shell designers have optimised safety on the facility by locating storage facilities and process equipment as far from crew accommodation as possible. As a result of this, the accommodation areas of visiting LNG carriers are also at maximum distance from critical safety equipment. Safety gaps have been allowed between modules of process equipment so that gas can disperse quickly in the event of a gas leak.

Community

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NDDC road project

Abia pledges support for NDDC on key projects

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bia State governor, Dr. Okezie Ikpeazu, has promised to collaborate with the Niger Delta Development Commission, NDDC, in the execution of developmental projects in the Niger Delta region.

The governor made the pledge at the Government House, Umuahia, when members of the NDDC governing board paid him a courtesy visit.

The NDDC team, led by the Chairman of the Board, Senator Bassey EwaHenshaw, included the Managing Director, Sir (Barr) Bassey Dan-Abia; the Executive Director, Finance and Administration, Dr. Henry Ogiri; the Executive Director, Projects, Engr.

Tuoyo Omatsuli and other board members.

The governor, who described the NDDC as a catalyst for the development of the region, said its role as an interventionist agency has made it a strong unifying

institution as far as development of the Niger Delta was concerned. “We see the NDDC as a very important partner,” he said.

Calling for better synergy between the NDDC and other key stakeholders in the planning and execution of projects, Governor Ikpeazu stated that his administration welcomed the plans of the commission to enlist partners for the rebuilding of the very strategic Aba-Ikot EkpeneCalabar road.

He said that Abia State was in dire need of such a rescue project as that road, the major link between it and the neighbouring states had virtually collapsed.

Governor Ikpeazu said he was mindful of the funding challenges facing the NDDC but expressed hope that the new administration of President Muhammadu Buhari would remove the bottlenecks hindering proper funding of the commission.

“Every kobo belonging to the NDDC that is withheld is a punishment for the people of

We have so far completed and commissioned six university hostel projects, awarded 1,021 overseas scholarships for Master degrees and PhD programmes in engineering and sciences

the Niger Delta and not the Commission,” he said.

Earlier in his address, the NDDC board chairman, Senator EwaHenshaw, told the governor that the commission was a vehicle for fast-tracking development of Nigeria’s oil-rich region.

He stated that in line with the mandate given to the board by the Federal Government to complete

all on-going projects, several of the projects had been commissioned since the current board assumed office.

“We have so far completed and commissioned six university hostel projects, awarded 1,021 overseas scholarships for Master degrees and PhD programmes in engineering and sciences.

"Many other inherited projects, including the

NDDC permanent headquarters building, are also in the process of being completed,” the chairman said.

Senator Ewa-Henshaw said that the current NDDC Board inherited 7,000 projects and a liability in excess of one trillion naira, including interim payment certificates, IPC’s, that were not paid. He noted that funding remained a major challenge for the Commission as N800billion due to to the agency was still being withheld by the Federal Government.

The chairman stated that the act establishing the Commission had not been complied with by previous administrations, noting that this had made it difficult for the NDDC to live up to the expectations of the people.

He regretted that the NDDC had since inception been getting only 10 per cent, instead of the 15 per cent, provided for in the NDDC Act.

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Chevron bags Integrity award over achievement on Africa development

Schneider Electric celebrates 10 years in Nigeria KUNLE KALEJAYE

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Chevron on rollback malaria programme KUNLE KALEJAYE

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hevron Nigeria Limited’s, CNL corporate value of Integrity added another feather to it crown when organisers of Emerging Africa Leaders Integrity Award, EALA - a nongovernmental organisation h o n o u r e d t h e Communication Manager of CNL, Mr. Sola Adebowa ?with the Emerging African Leaders Pinnacle Award recently in Lagos.

Organisers of the event s a i d t h e C N L Communication Manager was given the a?ward on account of his outstanding achievement towards the development Africa as a people and continent.

Stephanie Afolabi, CEO/Founder, Emerging African Leaders Academy, said the award is aimed at inspiring and training African youths and emerging African leaders in programs that promote the values of integrity, and entrepreneurial spirit.

“This is a Pan African initiative to discover and

showcase some of our shining stars on the continent. Our emphasis is on leadership because we have realised that Africa can only fulfil its potentials if we are able to build effective leaders.

"We have come to understand that leadership can only be developed by strengthening the connection between, and alignment of the efforts of individual leaders and the systems through which they influence organisational and social operations,” she said.

She added that the adjudicating panel nominated Mr. Adebawo for the award having monitored his career in the workplace and the role he has played in the society especially in the area mentorship and leadership training for young people.

“He is a mentor and inspiration to many young people. We also monitored his activities on social media and identified him as someone many young people can learn from. It was for this reason that he was also slated to be one of the Guest Speakers at the Award Ceremony," Mrs Afolabi said.

The Pinnacle Award, she said, was a celebration of his meteoric rise in his chosen career. “His commitment to the cause is clearly evident through his social activities and dazzling strides in his chosen field of endeavor.”

Mr. Adebawo who thanked the organisers for the recognition used the occasion to speak his company's commitment to the values of integrity, trust, partnership and high performance among others.

Speaking on “Impact of Oil and Gas on Livelihood in Africa,” he gave an insight into the contributions and impact of the oil and gas industry on the African Economy.

He harped on the various opportunities the industry has provided Africa with and urged youths to take advantage of these opportunities to develop themselves and the continent at large.

He used the occasion to highlight Chevron’s social investments in Nigeria in the areas of education, health and economic development.

chneider Electric, t h e g l o b a l specialist in energy management, recently marked it's 10 years of operations in Nigeria, an event where long serving staff were rewarded for their hard work.

Speaking at the special recognition and award event for employees, the Country President, Schneider Electric Nigeria, Mr. Walid Sheta, said that the company will forever be indebted to their staff who worked tirelessly, ensuring that its objectives were met and surpassed.

“Today we not only celebrate 10 successful years of operations in Nigeria, we also would like to show immense gratitude to all our staff and publicly extol the hard work of key staff members, whose efforts undoubtedly accounted for the steady growth of the organisation and brought it to where it is today,” he said.

Sheta also stated that Schneider Electric has remained a willing partner of the country’s power reforms, and will continue to liaise with key stakeholders to ensure the country’s full power potential is realised for the overall benefit of Nigerians.

“We are part of those improving IT and electrical distribution and energy efficiency around the

world, and we will continue being major players in the industry, but we know also that a key factor that has helped us and will continue to help us achieve this, is our team of dedicated and committed staff.

"This is why we are celebrating them today.

With them, we know that the next 10 years will even be better,” he said.

As part of its focus for 2015 and beyond, Schneider Electric has concluded plans to address emerging markets in Nigeria where the middle class is experiencing exponential growth rate.

“With over 170 million inhabitants and 10 cities among the 30 biggest cities in Africa, there is a growing need to address the building and construction gaps.

"The key word for Schneider Electric is geographical coverage, being available to serve not only big infrastructure projects but also the small and medium scale building sector. We are going to address these diffused markets”, Sheta revealed.

“Nigeria has the biggest economy in Africa, a huge and growing population and rising energy needs in all sectors. No doubt, we are looking forward to greater and much better years ahead ’’ he said.

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Oil pollution in Ogoniland

UNEP Report: MOSOP raises alarm over fake compensation claims MKPOIKANA UDOMA

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he Movement for the Survival of the Ogoni People, MOSOP, has warned all Ogoni people to disregard any report purportedly claiming that billions of dollars would soon be paid to the Ogoni indigenes as pollution compensation in l i n e w i t h U N E P recommendations.

MOSOP said since the rumour of the fake reports, Ogonis had been congregating at the offices of the National Identity Card Commission, along Port Harcourt/Aba Expressway in Port Harcourt for issuance of the card in readiness for the reparation.

A statement signed by the Media and Public Affairs Advisor to MOSOP President, Mr. Bari-ara Kpalap, also said the group has been informed of the activities of fraudsters circulating fake forms and collecting N3,000 from

MOSOP is aware that believers of the falsehood drew inspiration from the compensation recently paid to the people of Bodo community in Gokana Local Government Council. The truth is that the Bodo reparation was paid as the outcome of her suit instituted in the UK against Shell over the 2008 and 2009 oil spills, which destroyed its environment unsuspecting citizens in local communities for recruitment into the Nigerian Armed Forces and for environmental clean-up contract. “It is regrettable that in spite of our earlier warnings regarding the spurious report and the activities of the fraudsters, our people have failed to heed the warnings and are now victims of the

criminal tendencies of these 419ers. We would say for the umpteenth time that there is no upcoming Ogoni environmental degradation compensation as claimed by the fake report.

"The UNEP report, we must say, did not recommend financial recompense but restoration of our devastated

environment, which would last for about thirty years.

That story of reparation is false and should be discountenanced," the statement said.

The Ogoni umbrella body further urged all Ogoni indigenes to stop thronging the identity card issuing commission on the grounds of getting an identity card as prerequisite for environmental pollution compensation.

It also advised the people against purchasing the said fake employment, recruitment and contract forms and to report those selling the forms to the police. “MOSOP is aware that believers of the falsehood drew inspiration from the compensation recently paid to the people of Bodo community in Gokana Local Government Council. The truth is that the Bodo reparation was paid as the outcome of her suit

instituted in the UK against Shell over the 2008 and 2009 oil spills, which destroyed its environment.

"Presently, MOSOP is intensifying efforts to ensure that the Federal Government of Nigeria matches its promise of implementing the UNEP report on Ogoniland with action.

"Whilst MOSOP recognises the importance of the national identity card, we are opposed to Ogonis visiting the commission on the grounds of obtaining the card as qualification for the spurious, 'soon-to-come' environmental pollution compensation, because it would yield no meaningful result but is a waste of time and other resources since there is no such upcoming compensation; employment or recruitment or remediation contract," it further stated.

Community

2015 July, SweetcrudeReports

Go after sponsors of oil theft, IYC tells govt

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E-mail: johniyene@yahoo.com

Cry the beloved Niger Delta

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Oil theft

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he Ijaw Youth Council, IYC, has urged the F e d e r a l Government go after the sponsors of oil theft in the Niger Delta region if it actually aims at ending it.

In a statement signed by the spokesman of the council, Eric Omare and released in Yenagoa, Bayelsa State, the council urged the Chief of Defence Staff, Air Chief Marshal Alex Badeh, to go after the sponsors if the government was committed to ending oil theft.

According to the statement, oil theft in the Niger Delta region has persisted because the sponsors of the activity have continued to fund it.

Omare said that his advice was in response to the warning the Chief of Defence Staff gave to deal ruthlessly with perpetrators of criminal activities in the region when he spoke at the inauguration of the Joint Task Force, JTF, permanent office complex in Yenagoa.

He said though the majority of the people in the region were law-abiding, they remained the greater victims of oil theft "because oil theft has polluted the environment".

"It is an open secret that those involved in oil theft in the Niger Delta are wellplaced persons in the society, including top ranking serving and retired military officers.

It is obvious that the poor villages cannot be the owners of an oil ship containing 15,000 tons of oil recently impounded by the JTF

"Some persons in the Niger Delta are only used as artisans and errand boys. The IYC has said this several times and wonders why the innocent people of the Niger Delta should be the scapegoats for the sins of highly placed and powerful people in Nigeria.

"It is obvious that the poor villages cannot be the owners of an oil ship containing 15,000 tons of oil recently impounded by the JTF," Omare said in the statement.

The statement added that there was no connection between Niger Delta amnesty programme for ex-militants and the ongoing criminal activities in the region.

He said that the natives of the area were only clamouring for better living conditions from the oil and gas resources found in the region.

"The IYC does not support or

encourage c r i m i n a l activities such as kidnapping and sea piracy under any guise as these activities are not part of our struggle.

"However, these criminal activities in the Niger Delta region cannot be used a s a justification to blackmail the entire people of the Niger Delta region," he said.

ew York, 1948, Charles Scribners Sons published Alan Paton’s novel, “Cry, the Beloved Country,” a novel that captured indigenous South African society in the middle of the 20th century. South African society in the 1940s gave very little hope to indigenous South Africans; their homes were mainly shanty hovels, their occupations mainly manual. As for recreation, most researchers who studied that era described the natives as steeped in sex and alcohol. The people had no leaders of note and so no worthy agenda for emancipation.

Life in the Niger Delta in the 1940s was more basic. The people moved around as they desired, on foot, in dugout canoes, with bicycles, low power boats, trucks, vans and the few automobiles that belonged to European missionaries and political functionaries. They farmed their lands, exploited their seas that teemed with varying ranges and species of aquatic life.

The seas were green, blue or bluegreen. The fields were speckled with cassava, maize, yam plants, bananas, pear, mango and apple trees. The uncultivated prairies were wild, green and impossibly beautiful! The glades were thick with foliage, huge trees and animal life. There was song, dance, drama, poetry, folk lore and some religion. Sex was mainly enjoyed primarily for procreation, pursued by lovers and never indulged in as an escape. Politics was a muted whisper exchanged between school boys, district officers and clergymen. The societies of the Niger Delta in 1948 were free of political con men, fake messiahs, dishonest statesmen and yes, militants!

The environment of the Niger Delta was not polluted; the air was clean, fresh and nourished human lungs in exactly as much the same way smoke fumes poison our lungs now.

Then we discovered crude oil and patriotism. Before crude oil was discovered in the Niger Delta, the indigenous people of Nigeria took pride in identifying and promoting their cultural occupations for their sustenance; the Yoruba produced their cocoa, the Hausa, maize, millet, groundnuts, cattle and partridges. The Igbo produced their own food, sold the excess but also made it their business to trade in the produce of all the regions.

But when crude oil and its stupendous income potential were discovered, Nigerians forgot their manners and fell upon the Niger Delta as Yankees converged on the Gold Fields of Western America. The devastation, excavations, desecrations and despoliation commenced in earnest; the rules applied internationally to the industry were pretentiously applied much later and when the indigenous people of the Region cried out. And what manner of a cry!

The Niger Delta has produced more “patriots” than it has, barrels of crude oil. Fake environmental activists can be bought two for a penny in the Delta.

Environmental activism, militancy,

economic protest, pipelines vandalism, kidnapping and other disorganised responses to the degradation of their homeland have undermined genuine protest against the inhuman conditions in the Niger Delta. This land that was once the homeland of a free people has been re-designed by strangers, speculators,

Life in the Niger Delta in the 1940s was more basic. The people moved around as they desired, on foot, in dug-out canoes, with bicycles, low power boats, trucks, vans and the few automobiles that belonged to European missionaries and political functionaries

adventurers and her own sons into a zone of terror.

The fields are scotched and dry, the seas are browned by crude wasted during negligent production and through the deliberate vandalisation of crude bearing pipelines by natives of the Region. The streets of the Niger Delta are controlled by gangs of militants whose business range from the illegal refining of crude to the kidnapping of oil workers.

The bittersweet irony of this mix of the exploitation of the Region and the unenlightened reaction by some elements indigenous to the Region is that the capital brought in to execute the exploitation of the Region has become shy and appears to be taking flight, leaving in its wake a devastated and impoverished land and a people beaten comatose by strangers and kindred.

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