Sweetcrude December edition by Sweetcrude reports

Finance

2015 December, SweetcrudeReports

Nigeria, 120 other nations launch $100bn solar alliance

Solar panels OSCARLINE ONWUEMENYI

he Nigerian government and several other countries have unveiled an ambitious solar alliance that plans $100 billion investments in widespread solar projects and infrastructure that are needed by 2030. The partnership with over 120 countries between the Tropics of Cancer and Capricorn in the International Solar Alliance, ISA, include some African and Asian nations, Australia, New Zealand, Brazil, France, China and the United States. It is to advance a low-carbon economy powered substantially by clean energy. The widely anticipated initiative, was conceived by the Indian Prime Minister, Narendra Modi, and jointly launched by President François Hollande and Modi in the presence of the UN Secretary General, Mr. Ban Ki-Moon at the recent international climate

summit in Paris. Under the initiative, the Indian government is investing an initial $30 million in setting up the alliance’s headquarters in India. The eventual goal is to raise $400 million from membership fees, and international agencies. Companies involved in the

innovative policies, projects, programmes, capacity building measures and financial instruments to mobilize more than $100 billion of investments that are needed by 2030 for the massive deployment of affordable solar energy. “We intend to work

It is the first time are having a number of countries that have a direct effect from the climate change discussing on the removal of fossil fuel, so that we have less emission project include Areva, Engie, Enel, HSBC France and Tata Steel. In their declaration, the countries said, “the objective to significantly augment solar power generation in our countries, we intend making joint efforts through

together towards the development of appropriate benchmarks, facilitating resource assessments, supporting research and development and demonstration facilities, with a view to encouraging innovative and affordable applications of solar

technologies. “We share the collective ambition to undertake innovative and concerted efforts with a view to reducing the cost of finance and cost of technology for immediate deployment of competitive solar generation assets in all our countries and to pave the way for future solar generation, storage and good technologies adapted to our countries’ individual needs.” Hollande described the project as climate justice in action, mobilising public finance from richer states to help deliver universal energy access. “What we are putting in place is an avant garde of countries that believe in renewable energies,” he told a press conference in Paris. He said, “What we are showing here is an illustration of the future Paris accord, as this initiative gives meaning to sharing technology and mobilising financial resources in an example of what we wish to do in the course of the climate conference.” The UN secretary general, placed the initiative in the context of the body’s sustainable development

goals, particularly a related target, set in 2011, of achieving universal access to sustainable energy by 2030. Nigerian Minister of Environment, Mrs. Amina Mohammed, said exploiting renewable energy requires partnership. “The scale we want to go in terms of renewable is not what Nigeria can go by itself. We want an alliance with people who have technology under the South South Cooperation, and financing flow from our partners in G7. “It is the first time we having a number of countries that have a direct effect from the climate change discussing on the removal of fossil fuel, so that we have less emission. Nigeria is a signatory to the ISA, the launch signifies the intention of the alliance, we want to see how Nigeria can plug into that. This is a longterm investment, we need to build on the successes we had in the past, and put more solid foundations so that when we leave, we can build on them.”

2015 December, SweetcrudeReports

Finance

CBN headoffice, Abuja

CBN shelves disbursement of N213bn power intervention fund KUNLE KALEJAYE

he Bureau of P u b l i c Enterprises, B P E h a s revealed that the Central Bank of Nigeria, CBN, has shelved the disbursement of N213 billion intervention fund for the power sector. The fund was introduced as

loans to assist power generating companies, GENCOs, and the distribution companies, DISCOs, to settle their gas debts, standing at N36 billion, as well as to execute agreed metering programmes and finance procurement of transformers. BPE's Director General, Mr. Benjamin Dikki who disclosed this recently in Lagos, said CBN suspended the

disbursement of the fund as a result of the Nigerian Electricity Regulatory Commission; NERC, planned upward review of electricity tariff by 40 percent. He described the upward review of the tariff as "strange," noting that it was not included in the agreement for the fund when it was introduced in

2014. BPE noted that the upward review of electricity tariff by 4 0 p e r c e n t w h e n implemented, in addition with the CBN intervention, might lead to over funding of the power sector, hence the decision by the CBN to put further disbursement of the fund on hold. About 50 percent of the N213 billion has already been

Developing nations spend $126bn on clean energy in 2014 - Report

nvestment ?in renewable energy done in 55 developing countries hit $126 billion in 2014, representing a 39 percent increase from 2013 record of $35.5 billion, according to a study conducted by Climatescope. Climatescope is a unique country-by-country assessment, interactive report and index that evaluates the investment climate for climate-related investment worldwide.

The evaluation of the investment was carried out with the help of online tool supported by the UK and US governments, and the InterAmerican Development Bank Group. The report offers a compelling portrait of clean energy activity in 55 emerging markets in Africa, Asia and Latin America and the Caribbean. The results of the 2014 clean energy investment, according to the study, were substantially bolstered by the remarkable growth in China,

which added 35 Giga Watts of new renewable power generating capacity all on its own â&#x20AC;&#x201C; more than the 2014 clean energy build in the US, UK, and France combined. Meanwhile, â&#x20AC;&#x153;SouthSouthâ&#x20AC;? investment (funds deployed in Climatescope nations from banks or other financial institutions based in those countries) surged to $79 billion in 2014 from $53 billion the year prior. Continuing declines in

clean energy costs appear to be driving growth, Climatescope stated in its report noting that costs associated with solar photovoltaic power have ticked down 15 percent year-on-year globally. Climatescope added that solar is particularly competitive in emerging markets which often suffer from very high power prices from fossil generation while also enjoying very sunny conditions.

disbursed to some GENCO and DISCOs prior to CBN's decision. Dikki said it would take five years for power distribution and generating companies to reap requisite returns on their investment in the sector. During his management visit to Eko Electricity Distribution Company in Lagos as part of the Bureau's evaluation of the privatised power entities in the country, Dikki said the slow pace of investment returns is as a result of prolonged rot in the distribution networks. He explained that most of the distribution and generation companies did not witness major turna r o u n d b e f o r e privatisation. Managing Director of Eko Distribution Company, Mr. Oladele Amoda, said his company met a dilapidated network when they acquired the asset in November 2013. Amoda, however, said his company commenced rehabilitation of the assets which saw the replacement of over 100 transformers in the first quarter of the company's operation.

2015 December, SweetcrudeReports

Finance

NNPC remits N872bn to Federation Account in 10 months

he Nigerian N a t i o n a l Petroleum Corporation, NNPC, said it has remitted N872.90 billion for Domestic Crude Oil & Gas and other receipts to the Federation Account between January and October this year. According to the October 2015 Financial and Operations Report on the Corporation's website, “the sum of N872.90 billion for Domestic Crude Oil & Gas and other receipts have been paid to the Federation Account from January to October 2015.” On refinery operations, NNPC noted that, “Total crude processed by the three refineries, in the month of October 2015 was zero. However, 92,332 MT (metric tonnes) of unfinished products was processed which translates to a combined yield efficiency of 78.93 per cent. “From January to October 2015, the three refineries produced 682,901 MT (5,007,030.13 bbls) of finished petroleum products out of 955,537 MT (7,005,997.28 bbls) of crude processed at an average capacity utilisation of 5.18 per cent and yield efficiency of 78.93 per cent.” According to the report, crude oil export revenue increased by 14.42 per cent between September and October this year. In the month under review, the NNPC said its total export proceeds was $445.79million with proceeds from crude oil export sale amounting to $325.28 million or 72.97 per cent of the dollar payment compared with 58.55 per cent contribution in previous month of September. It added that, “While export gas sales and NLNG feedstock accounted for $84.57million, that is, 18.97 per cent contribution compared with 31.21 per cent contribution in the prior month of September 2015.” The remaining $35.93 milion was attributable to other dollar denominated receipts by the Corporation. A total of $607.8 million has been paid so far to the Federation Account Allocation Committee (FAAC) in the year 2015 from sales of export oil and gas.” In the 10 months under review, the total export crude oil and gas receipt is $4.14

NNPC Towers, Abuja billion. Of the total receipts, according to NNPC, the sum of $0.61 billion was remitted to the Federation Account while the balance of $3.53 billion was used to fund the JV cash call for the period. “The dwindling oil price has negatively affected the NNPC dollar contribution to the

Federation Account. The continued decline in oil price led to insufficient cash availability to meet JV cash calls obligations of about $615.8 million monthly as appropriated by the National Assembly. “To mitigate this effect, NNPC was compelled to sweep all the export receipt

to JV cash call funding implying a zero remittance to Federation Account since the month of April 2015.” On dollar payments to JV cash call and Federation Account, NNPC said the total export proceeds of $445.79 million was recorded in October, with proceeds from crude oil sales, LPG &

NLNG feed st ock, a nd miscellaneous receipt amounting to $325.28 million (72.97 per cent), $84.57 million, that is, 18.97 per cent and $35.93million (8.06 per cent) respectively.

Oil revenue: Some states may shutdown in 6 months - FRC boss

he Chairman, Fiscal Responsibility Commission, FRC, Chief Victor Murako, has warned of a possible shutdown by some states of the federation in the next six months unless they find creative ways of handling their dwindling allocations from the Federation Account. Murako, who spoke at the opening of a two-day study tour of the FRC by officials of the Ebonyi Fiscal Responsibility Commission in Abuja, expressed shock that the Nigerian Governors’ Forum had declared that the states

could no longer meet the payment of the minimum wage of N18,000 per month. On the dwindling oil prices, Murako said the Federal Government was seriously worried about the impact on the economy and the ability to carry out development programmes. “The government is very worried. Almost all economies of the world are facing difficulties in the form of headwinds,” he said. The FRC boss also chided the state governments for lack of creativity, saying that if

they were private concerns; they would be generating profits from the huge endowments found in the different states of the federation. According to him, many states were dishonest about their level of indebtedness, adding they were much more indebted than the governors were willing to admit in public. He said, “The truth is that if the situation we are in persists for the next six months; I said six months, not one year or two years; we will be on the floor. If the revenue continues to dwindle for the next six months and the allocations continue

being low, some state governments that refuse to look for alternative revenue sources will definitely crash and there will be a labour crisis. “Debts and borrowing have become the biggest problem of sub-national governments. If most state governments will be honest and tell you their accurate debt profile, you will marvel. A lot of them try to hide by different strategies. They take short loans; some, longterm ones that will go beyond their tenure, which ordinarily, they should not do,” he said.

2015 December, SweetcrudeReports

Finance

Dr. Amadi

NERC boss defends N2.7bn retirement benefits for board members OSCARLINE ONWUEMENYI

he Chairman of the Nigerian Electricity Regulatory Commission, NERC, Dr. Sam Amadi, has defended allegations that members of his board had awarded themselves golden retirement parachutes to the tune of N2.7 billion. The commission has been accused of unilaterally fixing salaries and allowances of its

…Insists Commission's action is legal board and staff members without recourse to the National Salaries, Incomes and Wages Commission, NSIWC, as required by relevant laws. Also, it was revealed that NERC board and staff members enjoy allowances for diesel and generator sets for use in their houses, which raises a moral question. The revelations came to the fore during the first day of an

investigative public hearing to probe the activities of NERC by the House of Representatives Standing Committee on Power at the National Assembly. The three-day public hearing was sequel to the House resolution of November 4, 2015 halting the planned payment of N2.7 billion by the board of NERC to its members following a motion moved

on the floor of the House. Amadi, while making submissions before the House of Representatives Committee on Power, denied plan to pay N2.7 billion to seven NERC commissioners, saying it was actually N2 billion that was earmarked for a "sinking fund", which is aimed at catering for retirement benefits of staff of the commission in future when due.

NEITI trains sight on TSA over transparency

he Nigeria Extractive Industries Transparency Initiative, NEITI, has said it intends to monitor the extractive industries revenue transfers to the Treasury Single Account, TSA, of the government in line with its mandate to ensure that Nigeria gains and accounts for all its earnings from her extractive industries. NEITI's acting Executive Secretary, Dr. Orji Ogbonnaya Orji, who stated this at the fourth Sustainability in the Extractive Industries

Conference, in Abuja, pointed out that its interest in the TSA is derived from its claims that about 70 per cent of funds transferred into it are from the country’s extractive sectors. He noted that the agency was pleased with the government’s adoption of the TSA model to account for all its revenues but would also be interested in how it is operated. “We are equally delighted that the present administration under the leadership of President Muhammadu Buhari has embraced the Treasury Single Account. The interest

and concern of NEITI is that over 70 per cent of the revenues to be managed under TSA are derived from extractive industry,” Orji said. He added that, “NEITI also commends the directive on remittance of loan repayment and dividends from the Nigeria Liquefied Natural Gas (NLNG) to the Federation Account. The reforms so far in the oil and gas industry inspire a lot of hope and optimism.” Orji described Nigeria’s experience with managing her natural resources as

complex, saying: “In Nigeria, our experience in extraction and management of our natural resources speaks eloquently for itself. Our experience is like an elephant, everyone has his own side of the story.” According to Orji, NEITI is mandated by law to promote due process and transparency in extractive revenues paid to and received by government, as well ensure transparency and accountability in the application of extractive revenues.

Amadi explained that the decision was based on actuarial valuation by experts and advice by PenCom. He also revealed that based on a provision of the N E R C A c t , i t s commissioners are not supposed to work in the power industry for a period of two years after retirement from the commission, which was why there is a provision for them to be paid for two years in deferment. “The two-year deferment was approved by the President, and the present commissioners didn’t do anything to add up to their entitlements,” he said. But lawmakers countered Amadi, saying based on N E R C ’ s w r i t t e n submissions, there was a severance package approved in 2006, while another one was approved on August 15, 2014 which was reviewed upward. They observed that although the 2006 approval for severance package was 300 per cent of annual basic salary, the review of 2015 was 100 per cent of gross income on all staff, demanding to know whether the approvals were done by the NSIWC.

2015 December, SweetcrudeReports

Finance

he Senate probe of the subsidy regime has revealed that a fresh N108 billion covering three months fuel subsidy claims to oil marketers was not contained in the 2015 supplementary budget presented to the National Assembly by the Buhari administration. The Permanent Secretary in the Ministry of Petroleum Resources, Mrs. Jamila Suara, made the disclosure during a public hearing organised by the Senate Committee on Appropriation to consider the request of President Muhammadu Buhari for a N465 billion 2015 supplementary budget. Buhari had in the supplementary budget, requested for approval of N413 billion for payment of subsidy from January to September 2015. By the new disclosures, oil marketers are now being owed N521 billion in subsidy claims. The Senate Committee on Appropriation, chaired by Sen. Danjuma Goje, has

Subsidy: Senate probe reveals fresh N108bn debts to oil marketers therefore directed the Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation, NNPC, and other relevant stakeholders to harmonise all budget claims to include payment for October to December 2015. The Senate also asked the NNPC to breakdown the details of the amounts being paid to each of the independent marketers rather than the blanket sum that was submitted. The Senate queried why the supplementary did not include the last quarter of 2015 stressing that the country could not risk another scarcity of petroleum products due to non-payment for the months. The committee while expressing displeasure at the seeming lack of synergy between the relevant stakeholders, directed them to go back and harmonise their figures and submit later. The Senate therefore directed the ministry to

Fuel tanker provide details of issues relating to subsidy payment from the last quarter of 2014 till date. “This government is about change; change from sordid past; change is to

totally eliminate queues from our filling stations; every person must play a role to effect positive changes in the economy. “We need the audit details for the purpose of oversight.

Nothing stops us from going back to the issues even after the approval of the supplementary budget.” “We need to know the beneficiaries of the subsidy, and how they came about it,” he said.

Labour

2015 December, SweetcrudeReports

Nigerian workers

Workers won't accept reduction in N18,000 minimum wage - TUC MKPOIKANA UDOMA

rganised labour has reacted to claims by the 3 6 s t a t e governors that they can no longer pay the N18,000 minimum wage that was signed into law in March 2011, saying workers were ready to shut down the

country, if the governors pushed them into it. The governors had said they can no longer pay the minimum wage owing to the poor state of the nation's economy. According to the Trade Union Congress of Nigeria, TUC, Rivers State Chapter, workers will not accept any reduction in the amount it described as meagre.

State TUC chairman, Mr. Hyginus Chika Onuegbu, in a statement, blamed past governments for failing to diversify the economy during the oil boom. Onuegbu, who is a former National Industrial Relations Officer of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, also fingered bad

governance and corruption of political leaders as factors that had brought the country to the current ugly situation. "While we agree that the Nigerian economy is in bad shape due mainly to fall in oil price from $115 per barrel in June 2014 to less than $48 per barrel now, we note that a lot of the factors responsible for the current situation of the economy can be traced to

475,180 jobs created in third quarter, says NBS

he National Bureau of Statistics, NBS, says the Nigerian economy created 475,180 jobs in the third quarter of this year. With this figure, the NBS said in its Employment Creation Survey for the third quarter 2015, that about 333,812 additional jobs were created compared with the figure for the previous quarter. The third quarter 2015 figure also represents

125,837 additional jobs compared to the third quarter of 2014. A break down, shows that the informal sector accounted for 428,690 or 90.2 per cent of the total jobs in the quarter under review while the formal sector is responsible for 41,672 or 8.8 per cent of jobs. The public sector created 4,818 jobs (1.01 per cent). The jobs generated in the informal sector in the

quarter under review were mainly in rural agricultural activities, the NBS said. It stated that this was the case because of the commencement of the farming season where rural and subsistence farmers become fully engaged on their farms. â&#x20AC;&#x153;The third quarter of the year coincides with the planting season in Nigeria and has historically recorded higher job numbers when compared to other quarters,

as farmers employ more hands to assist on the farms. "Also accounting for the increase in informal jobs in the third quarter, is the increase in the number of people previously not in labour force in the second quarter but now in the labour force and working informal jobs due to their inability to find white collar formal jobs" it said.

poor governance and corruption by the political class. "For instance, the political leaders at all levels did not stop the industry-scale oil theft of some 400,000 barrels of oil per day; refused to diversify the economy away from oil and gas; refused to pass the PIB; made no savings for the rainy day such that the excess crude account is just $2 billion, external reserves is below $30billion and Nigerian government debt is over $63billion etc. "The situation becomes clearer when you juxtapose Nigeria with Saudi Arabia that has a smaller population but external reserves in excess of $900billion," the statement read. The union appealed to the Nigerian Governorsâ&#x20AC;&#x2122; Forum to dialogue with NLC and TUC with a view to cocreating acceptable winwin solutions to the current economic crises rather than making pronouncements that were capable of deepening the economic crises and overheating the polity.

Labour

2015 December, SweetcrudeReports

PENGASSAN condemns govt's lack of funding for JVs KUNLE KALEJAYE

he Petroleum and Natural Gas Senior Staff Association of N i g e r i a , PENGASSAN, has condemned Federal Government’s 'deliberate' default in payment of joint venture, JV, cash calls to International Oil Companies, IOCs. The National Executive Council of PENGASSAN, in a communiqué at the end of its recent NEC meeting, said this has led to reduction in work programmes by the oil companies, slowed reinvestments in the industry and negatively affected job creation and security. It, therefore, urged the Federal Government to commence the process of settling cash call arrears owed the IOCs without delay. The communiqué, signed by PENGASSAN’s President Comrade Francis Olabode Johnson and the General Secretary Comrade Francis Olabode Johnson, also said once work programmes and budgets are approved, government should adhere to them for the duration of the year. The association demanded that there should be no cuts in the budget during the year when work programmes were already being implemented as it had adverse effect on operations. In the communiqué, the group urged the executive and legislative arms of government to work together to give priority to the passage of the Petroleum Industry Bill, PIB, given its importance to the nation’s oil and gas industry. “The NEC-in-session demands for an all-inclusive industry stakeholders’ summit to ensure that various stakeholders’ inputs are represented in the Bill to protect national and industry interests and ensure quick passage of the Bill without further delay,” the communiqué stated. Other issues raised in the communiqué included the call on government to evolve multi-faceted measures to tackle pipeline vandalism. The measures, according PENGASSAN, include review of pipeline installation techniques; regular surveillance by core experts

President Buhari

to evaluate pipeline integrity and proffer solution; wellcoordinated security network, strict enforcement of pipeline right of way, and review of enabling legal instruments for s a n c t i o n i n g violators/defaulters They demanded that troubled pipeline spots be

The association demanded that there should be no cuts in the budget during the year when work programmes were already being implemented as it had adverse effect on operations

cleared of obstructions and called for the establishment of a security agency network for effective monitoring of the pipelines. The specialised agency’s office should be located in the troubled spots, they also advocated.

Tanker drivers accuse NUPENG boss of manipulating unit election MKPOIKANA UDOMA

group known as Rivers Indigenous Petroleum Tanker Drivers Forum has accused the National President of the National Union of Petroleum and Natural Gas Workers, NUPENG, Mr. Igwe Achese, of manipulation and imposition of union leaders in the Port Harcourt Refinery depot unit election, held on October 30 this year.

The group has, therefore, threatened to cripple petroleum products supply in Rivers State if the outcome of the election was not properly addressed. Spokesman for the group, Mr. Williams Isaiah, hinted of an existing memorandum of understanding between the members of the union, stating that under the arrangement, the next chairman of the union ought to have come from

Rivers State. He maintained that the unit would not accept the outcome of the election. "We (Rivers people) have not tasted the position of chairman of this unit before. The position was ceded to Rivers State and our own brother (Igwe Achese), who we felt would protect us, gave it to an Edo guy. "Based on that, on the election day, all the tanker drivers boycotted it. So, we are saying here authoritatively that election

did not hold regarding PTD (Petroleum Tanker Drivers) or NUPENG in Port Harcourt Refinery unit,' he said. In his reaction, Mr. Achese, in a telephone interview, told SweetcrudeReports that NUPENG was not Rivers State-owned. but a national union, and that it is, therefore, not mandatory that a Rivers person must emerge as its chairman or president.

Labour

2015 December, SweetcrudeReports

Electricity transformer

Power sector privatisation made rich Nigerians richer â&#x20AC;&#x201D;Ajaero KUNLE KALEJAYE

e n e r a l Secretary of the National Union of Electricity Employees, Comrade Joe Ajaero, has undertaken an assessment of the nation's power sector two years after privatisation, asserting that the exercise only made some rich people richer at the expense of the generality of

Nigerians. Ajaero, who spoke in an i n t e r v i e w w i t h SweetcrudeReports in Lagos, said: "The power situation has not improved. The whole reform in the power sector is all about profit for some people. In order words, it is 'private gains, public disaster'. That is the summary of the whole privatisation process". He maintained that the improved power supply being

seen in some parts of the country was not real as the operators were overflogging the thermal power stations to create the impression of improved power generation. He said: The improvement in power supply that we are witnessing now usually happens by this time of the year when the water level is usually high and what they (operators) did this year is

to flog thermal stations to give the impression that it is privatisation that has brought about this improvement. "Meanwhile, some of the gas power stations are caving in because what we do in power plants management is to make sure that ?during the period the water level is high we make maximum use of hydro stations and use that opportunity to do turn-around

TUC decries role of 'oil cartel' in fuel scarcity

he Trade Union Congress, TUC, says the current fuel scarcity across the country is being exacerbated by the role of what it described as an oil cartel, describing the role of the group as "shameful". "It is shameful that the oil cartel will subject Nigerians and Rivers people to excruciating pains just

because they want to make super profit despite government intervention," the Rivers State Chapter of TUC said in its reaction to the fuel scarcity. The union, in a statement by the Rivers State TUC Chairman, Mr. Chika Onuegbu, also lamented "the determination of private depot owners in starving

Rivers people of petroleum products". The TUC chairman accused the depot owners of shutting down their depots and only selling at night at exorbitant prices. He called on the Department of Petroleum Resources, DPR, the Rivers State Government and law enforcement agencies to compel the depot owners to

open and ensure that the products are released to petroleum marketers. "Since President Buhari has approved about N413 billion subsidy payment backlog, it is imperative that products are readily made available to the people," he said.

maintenance of one or two gas stations. "But to score a cheap point - which was what former Minister of Power, Professor Barth Nnaji did sometime ago before privatisation - they had to over-flog the power plants to generate electricity and everybody is thinking there is an improvement". The NUEE General Secretary stressed that the improvement was not real as "everything will nosedive once water level starts going down". "To me, nothing has happened except that we have created the super rich, created the billionaires club among the so-called owners because the defunct PHCN (Power Holding Company of Nigeria) was making N2 billion, whereas some of them (the new investors) are now making almost N4 billion, and yet they are telling you that they must increase tariff," Ajaero added.

Labour

2015 December, SweetcrudeReports

NARTO urges review of freight rate for petroleum products

Fuel tankers KUNLE KALEJAYE

he Nigerian Association of Road Transport O w n e r s , NARTO, has called on the Petroleum Products Pricing and Regulatory Agency, PPPRA, to review the freight rate template for petroleum products, saying the existing rate has become obsolete. Besides, it said the current freight rate template "has since gone obsolete and unrealistic in the face of the prevailing economic conditions in the country", adding that with the high exchange rate, high interest rate on bank borrowing,

rising cost of spare parts and unfavourable customs tariffs, transporters are always at the receiving end, especially with the considerable fall in freight revenues". The association, in a communiqué issued at the end of its 16th Annual General Meeting, AGM, in Abuja, also urged the Nigerian National Petroleum Corporation, NNPC, and one of its subsidiaries, the Pipeline and Products Marketing Company, PPMC, to speedy repair pipelines across the country for easy lifting of petroleum products to every nook and crannies of the nation. The communiqué signed by its National President, Dr.

Kassim Ibrahim Bataiya, called on the Federal Government to put in motion all necessary machineries that will ensure that refineries resum e p rod uct ion of petroleum product at optimal capacity in order to solve the problem associated with importation of refined products, including the subsidy. Responding to the issue transporters had with the Petroleum Equalisation Fund, PEF Management Board, NARTO demanded that the later should without delay settle all outstanding transporters freight claims, adding that

the requirement of the 10-day delivery period from loading depots to other depots and retail ends should be temporarily put on hold until the bad condition of our roads is addressed. “We therefore call on the Federal Government to repair, reconstruct and construct roads across the country to urgently address the problem of road crashes and tanker explosions taking place on daily basis and its resultant loss of lives and destruction of property in our country. “We also call on the National Assembly to promptly pass all relevant bills before them that affect the development and

maintenance of road infrastructures in the country such as the proposed National Roads Fund Bill. These bills when passed would revolutionize the system in the country,” the association stated. In reaction to the nation's perennial fuel crisis, NARTO called on the government and the NNPC to find immediate and lasting solutions to the problem, noting that the Nigerian masses have to spend so much on commercial transport due to the sudden hike in transport fares occasioned by the scarcity.

Solid Mineral

2015 December, SweetcrudeReports

Govt to tackle cartels in mining sector, says Minister SAM IKEOTUONYE

he Federal Government has warned 'cartels in the mining sector' and all those engaged in illegalities in the sector to desist from their acts or face

the full wrath of the law. Minister of Mines and Steel Development, Dr. Kayode Fayemi, issued the warning in Abuja, saying: “We are ready to tackle the cartels in the sector and those who think they can continue will face the maximum wrath of the law". According to him, the Mining and Mineral Law 2007

clearly set out guidelines for the operators in the sector and this will be strictly implemented to arrest illegalities. The minister, who stated that the government would use both legal and political will to combat illegal miners, added: “If you glean through what President

Buhari said when he came into power, every comment is punctuated with preference for solid minerals and agriculture as areas of interest in his efforts to diversify the economy. "So, Mr. President has put me in his area of interest and I thank him for reposing confidence in me.”

He maintained that though the solid minerals sector currently contributes 0.06 per cent to the country’s Gross Domestic Products, G D P , t h e Muhammadu Buhari government had the plan to raise this to between 5 and 10 per cent before 2019.

Mining site

Mining sector an enabler for manufacturing, services —World Bank Chief

he Senior Mining Specialist, Energy and Extractives Unit at the World Bank, Dr. Francisco Igualada, has described the mining sector as an enabler for manufacturing, services and other sectors as he wondered why Nigeria, with all her huge resources and potentials has continued to earn

less than Ghana, Mali and Burkina Faso from mining activities. This, he said is in addition to the huge opportunities of job creation, revenue earnings and the development of other support services in the value chain that would have boosted the economy especially with the decline in global oil prices. Igualada, who spoke in Abuja, blamed the country’s

focus on oil and gas for failure to maximise the potentials of the mining sector. According to Igualada, there is need for a structured consolidation of efforts towards developing the sector. This should focus on building the right capacity both at human and institutional levels as well as establishing and enforcing the requisite legal and policy

frameworks. To him, this has marked the difference between the Nigeria and South African mining sectors. He said the World Bank has a Public Private Partnership, PPP, arrangement which it could recommend for the development of the solid minerals sector in Nigeria. He stressed the need to revamp efforts and link interventions to develop the sector through arrangements

such as the Solid Minerals Fund in addition to renewed involvement by the government. He stated that he will seek the commitment of his office on the development of the mining sector and collaboration with the Nigerian Export-Import Bank or NEXIM Bank especially in regard to workshop participation and capacity training.

Freight

2015 December, SweetcrudeReports

Lagos port

ISPS Code: NIMASA launches offensive against non-compliant facilities KUNLE KALEJAYE

he management of the Nigerian M a r i t i m e Administration and Safety Agency, NIMASA, has commenced the shutting of port facilities that have persistently failed to comply with the provisions of International Ship and Port Facility Security, ISPS, Code The move is aimed at forestallng a situation whereby security breaches in such facilities could negatively impact the compliant ones. Obat Oil and Petroleum Limited Jetty at Ibafon, Lagos, became the first casualty of the action as NIMASA officers recently swooped on the facility, shutting it down for noncompliance with the ISPS Code. NIMASA said, in shutting down the facility, it was

acting within its powers in line with provisions of Part VIII of t h e I S P S C o d e Implementation Regulations 2014. The Obat Oil and Petroleum jetty was adjudged to be noncompliant despite repeated warnings and extension of time granted its management

over the past years. "Any shut facility will remain closed until the managers of such a facility corrects the identified deficiencies and pay a prescribed fine before they will be reopened for business," NIMASA said in a statement.

It will be recalled that NIMASA, which formally became the Designated Authority for the implementation of the code in May 2013 when compliant facilities were less than 10, has progressively grown the number to over 80 percent of the nationâ&#x20AC;&#x2122;s 129 facilities.

NIMASA explained that it goal is to achieve 100 percent compliance which will guarantee the security of ships and port facilities especially in this period when terrorist activities have been heightened noting that this exercise is a continuous one.

NPA completes rehabilitation of Port Harcourt rail line

anaging Director, Nigerian Ports Authority, NPA, Mallam Habib Abdullahi, says the authority has completed the rehabilitation of the rail line in Port Harcourt port so as to decongest the port and reduce traffic on the highways. Abdullahi, who disclosed this in Lagos during an interactive session with journalists, stated that a

consultant had been contracted to see if this would be possible for the Tin-Can port in Lagos. "For Tin-Can port, NPA has contacted a consultant to see whether this would be visible and viable," the managing director, who was represented by the General Manager, Public Affairs, NPA, Mr Iheanacho Ebubeogu, said. He also restated the company's commitment to

completing the Lekki and Ibom deep seaports in Lagos and Akwa Ibom states respectively. According to him, the authorityâ&#x20AC;&#x2122;s commitment to the two ports stemmed from present demands and developments of the nationâ&#x20AC;&#x2122;s economy. According to him, the channels of those ports built in the 1970s can no longer accommodate bigger ships coming in and going out of

the country. The managing director also revealed that the organisation would install safety features like bumps to reduce speed limits of vehicles on the 1.6 kilometre road in Apapa port, recently rehabilitated. He said that the organisation would also improve on capacitybuilding to further educate journalists on its policies.

2015 December, SweetcrudeReports

Freight SAM IKEOTUONYE

h e Manufacturers Association of Nigeria, MAN, a n d t h e Importers Association of Nigeria, IMAN, have disagreed on the planned introduction of the Cargo Tracking Note, CTN, by the Nigerian Shippers’ Council. MAN says the introduction of the scheme at the ports will jerk up the cost of cargo clearance, but IMAN believes its coming will be of huge economic and security benefits to the government and the nation. The CTN had earlier in 2013 been jettisoned by the Federal Government following clamour by manufacturers to that effect. According to MAN, a reintroduction of the policy would in raising the cost of cargo clearance have negative effect on businesses and by extension the nation's entire economy. MAN Director General, Remi Ogunmefun, hinted that in spite of the wellintentioned counsel of manufacturers at different fora, including meetings with the shippers' council, the council was determined to see the reintroduction of the policy. “In the interest of the manufacturing sector and the Nigerian economy, the Nigerian Shippers Council and by extension the Federal Government should jettison the re-introduction of the CTN as currently crafted until the issue of where the cost burden of its implementation will rest,” Ogunmefun said. He maintained that he was expressing the reservations against CTN since MAN was the voice of manufacturers in the country, stressing that the association was strongly opposed to the reintroduction of CTN in any form. But in another twist, the Importers Association of

MAN, IMAN differ on planned introduction of CTN at ports

Cargos terminal

Nigeria, IMAN, advised the Federal Government to disregard the opposition against the reintroduction of CTN, saying those who are against the scheme have not taken into account the huge economic and security benefits accruing from it. According to president of the association, Dr. Osita

CTN is good for Nigeria in terms of safety and security, and its introduction will not have additional economic cost to shippers and endusers

Tin-Can Island Customs generates N24.4bn

he Tin-Can Island Port Command of the Nigerian Customs Service generated N24.4 billion revenue in November. Mr Eporwei Edike, Assistant ComptrollerGeneral of Customs in charge of Zone A, Lagos, Mr Eporwei Edike, made the disclosure as he official toured of the command and Port

Terminal Multi-Services Ltd, PTML, command in Lagos. Commending the command for the amount collected between Novmber 1 and 24, he urged officers of the service to put more efforts to enable the ComptrollerGeneral of Customs, CGC, Col. Hameed Ali (retd), to achieve his policy, anchored on transparency, honesty and integrity. "Forty six per cent of all

containers coming to Lagos go to Apapa, while the rest comes to Tin-Can and few goes to Terminal Multi-services Limited. "You should work hard, be at alert and you must collect every kobo due for government, and never collect less than the amount you are meant to collect. "If the document or declaration of any agent is

complete and cleared, do not look for faults," he said. Edike stated: "If any officer is having a problem with Single Trade Goods (STG) platform, such an officer should quickly get in touch with his or her supervisor.’' He said that STG should not be processed in more than 15 minutes, because its delay would amount to delaying Nigerian trade.

Okereke, CTN will expose decades of excess charges by multinational shipping lines and other unscrupulous importers in the country. He said CTN is good for Nigeria in terms of safety and security, and that its introduction will not have additional economic cost to shippers and end-users. Those against the scheme he added, have a hidden agenda and were those likely to be involved in trade malpractices through which government was losing huge revenue at the ports. He stated in a letter to President Muhammadu Buhari that apart from the economic benefits to the government in terms of increased revenue, it would provide relevant information that will help check maritime security threats caused by carriage of cargo through the sea, air and land borders.

2015 December, SweetcrudeReports

Freight

Loading truck

NPA in fresh drive to rid ports of unworthy trucks KUNLE KALEJAYE

igerian Ports Authority, NPA, has begun a fresh drive to rid ports within Lagos corridor of substandard trucks. The renewed effort is backed by a surveillance team comprising of personnel of the Safety Department of Western Ports headquarters, Lagos, and Tin Can Island Port Complex, charged with preventing such vehicles from gaining access to the ports. According to NPA, the team will ensure that only trucks which complied with stipulated safety standards are allowed entry into the ports within the Lagos area. Leader of the team, Engineer David Adeola, said the work of the team has started yielding positive results as a number of trucks are daily prevented from entering the Lagos Port Complex, LPC, due to their poor road worthiness.

He expressed optimism that if the minimum standards of road worthiness are enforced on all trucks admitted for operations in the ports and the terminal operators adhered strictly to it, it will eventually eliminate cases of mishap within and outside the ports due to faulty and substandard trucks. He explained that the minimum standard of road worthiness for trucks entering

the port stipulates specifications expected of a truck covering amongst others the truck head, body, braking system, engine, battery, trafficators, warning devices, twist locks and other fittings. Chairman, Association of Maritime Transport Owners, AMATO, Chief Remi Ogungbemi, assured that the association was in full support of the

surveillance duties of the Safety Department of NPA to ensure the safety of other road users at the ports. Ogungbemi, who reiterated that the enforcement of the safety standard is necessary for all trucks in the nation's seaports, assured that the association was already educating its members on the benefits of acquiring and having standard trucks for their effective operation.

Assistant General Manger, Security, Western Ports, Mr Sam Asamaige, who said the department had always supported the safety department whenever they embarked on the truck surveillance duties, explained that some truck owners were complying strictly to the rules.

NIMASA probes attack on Polish vessel

he acting Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Mr. Haruna Baba Jauro, has ordered a full scale investigation of the attack on a Polish vessel off Nigeria's coast. He also ordered the release of the captain of the ship and the four crew members, who were abducted in the attack. Eleven other crew members were left on the vessel after the abduction of the captain and the four. The vessel, MV SZAFIR, operating under the Cyprus flag was reportedly attacked on Friday, November 27 approximately seven nautical miles east of Brass at about 01.49 hours local time.

Registered with IMO No.9004504, the vessel which is owned by Voltaire Shipping Company and operated by Euroafrica Services Nigeria Limited, had a total of 16 crew members and was enroute Onne port, near Port Harcourt, Rivers State, from Antwerp in Belgium before it was attacked. The vessel was later rescued by NIMASA and was sailed to Onne port under the Nigerian Navy escort for protection and further investigation. At the time of our going to press, the Nigerian Navy and other security agencies were in a spirited search for the abducted crew with a view to freeing them and bringing the abductors to book.

Motoring

2015 December, SweetcrudeReports

7 Family cars that won’t wreck your budget

t can be overwhelming when it’s time to let go of the family car and move on to something new, especially for families who haven’t visited a dealership in a while. Some car companies bundle

together features families don’t need, which raises the vehicle’s price, while others offer essential features as standard equipment. There are some appealing and wellrounded family-friendly options on the market, ranging from midsize cars to SUVs, that give families the features they need while still leaving some space in the budget. Here are seven of the best.

2015 Volkswagen Golf The 2015 Volkswagen Golf is a compact hatchback that comes in two-door or fourdoor body styles, offers seating for five passengers, and boasts plenty of cargo space for hauling everyone’s essentials. Starting at $20,175 for the four-door model, the VW Golf is affordable, versatile, and fun to drive, according to reviewers. It has good safety scores, and reliability data shows that the Golf is ready to join its new family for the long haul. The Golf is the U.S. News 2015 Best Compact Car for Families, because it has the best combination of safety and reliability scores, space and familyfriendly features in its class.

2015 Kia Soul Despite its relatively low starting price of just $15,190, the 2015 Kia Soul compact hatchback means business when it comes to providing safe and reliable family transport for five people. Reviewers say there’s plenty of space for people and cargo, and that the interior features highquality finishes. The 2015 Kia Soul’s equipment menu offers up plenty of standard features, including a USB port, Bluetooth and satellite radio, as well as optional features like navigation and a rearview camera, which make family life on the road a little easier. The Soul also has top-notch safety ratings, and it’s the U.S. News 2015 Best Hatchback for Families.

2015 Subaru Outback The 2015 Subaru Outback, which starts at less than $25,000, consistently gets great reviews and solid crash test scores. This all-wheel drive wagon provides generous space for five people and plenty of room for everyone’s stuff. It’s also the 2015 U.S. News Best Wagon for Families. Reviewers especially like the Outback’s large rear seat, which they say is comfortable enough for teens and adults. Standard features like Bluetooth, smartphone app integration and a touchscreen infotainment system help the entire family stay connected and entertained while on the go in the Outback. CONTINUES ON PAGE 40

Motoring

2015 December, SweetcrudeReports

7 Family cars that won’t wreck your budget CONTINUED FROM PAGE 39

2016 Mazda3 The 2016 Mazda3 is a safe and reliable compact car that offers seating for five, plus the choice between sedan and hatchback body styles. Like other highly recommended family cars, the 2016 Mazda3 earned good crash test scores. Starting at $17,845, the 2016 Mazda3 comes standard with push-button start, Bluetooth, a rearview camera and the MazdaConnect infotainment system. The Mazda3 also has some optional safety features, like blind spot monitoring, lane departure warning, adaptive cruise control and forward collision warning, which can help keep the whole family safe.

2015 Chevrolet Impala The 2015 Chevrolet Impala sedan, starting at $27,095, comes highly recommended by automotive reviewers who praise its familyfriendly qualities. The 2015 Impala seats five, and reviewers say the spacious interior is nicer than most cars at its price point. Plus, it has good reliability data and safety scores, and we named it our 2015 Best Large Car for Families. The 2015 Impala’s list of available safety features, including a rearview camera, forward collision alert, side blind zone alert and rear parking sensors, can help give families extra piece of mind, while standard entertainment features like a USB port, satellite radio and Bluetooth make long trips more enjoyable. If you really want to impress the kids, go for the optional Apple CarPlay smartphone integration system.

2015 Honda Odyssey Starting at $29,275, the 2015 Honda Odyssey is our 2015 Best Minivanfor Families. Buyers can configure a new Odyssey to seat up to eight people, and it also offers one of the biggest cargo areas compared to the competition. Unusual features such as a built-in vacuum cleaner and flip-up trash bag holder make it easy to keep the Odyssey clean and comfortable.

2015 Toyota Highlander With a starting price that’s just under $30,000, the 2015 Toyota Highlander can be configured for up to eight people across three rows, and reviewers say the comfortable cabin offers lots of storage. The Highlander is the U.S. News Best 3-Row SUV for Families. Driver Easy Speak is perhaps the Highlander’s most unique familyfriendly feature, which allows the driver to easily talk to back-seat passengers using a microphone that projects through the stereo system. Standard features in the Highlander include Bluetooth, a rearview camera and a USB port.

Technology

2015 December, SweetcrudeReports

Bloom Energy Server

he Bloom Energy Server (the Bloom Box) is a solid oxide fuel cell (SOFC) power generator made by Bloom Energy, of Sunnyvale, California, that can use a wide variety of inputs (including liquid or gaseous hydrocarbons produced from biological sources) to generate electricity on the site where it will be used. It can withstand temperatures of up to 1,800 °F (980 °C). According to the company, a single cell (one 100 mm × 100 mm plate consisting of three ceramic layers) generates 25 watts. Bloom stated that two hundred servers have been deployed in California for corporations including eBay, Google, Yahoo, and WalMart Technology The Bloom Energy Server uses thin white ceramic plates (100 × 100 mm) that are made from components found in beach sand. Each plate is coated with a green nickel oxide-based ink on one side, forming the anode, and another black (probably Lanthanum strontium manganite”manganite) ink o n t h e c a t h o d e side.According to the San Jose Mercury News, “Bloom’s secret technology apparently lies in the proprietary green ink that acts as the anode and the black ink that acts as [7]

ELECTRICITY FROM BEACH SAND

Bloom Energy Server the cathode...” but in fact these materials are widely known in the field of SOFCs. Wired reported that the secret ingredient may be yttriastabilized zirconia based upon US patent that was granted to Bloom in 2009; but this material is also one of the most common electrolyte materials in the field. US patent application 20080261099, assigned to Bloom Energy Corporation, says that the “electrolyte includes yttria stabilized zirconia and a scandia-stabilized zirconia, such as a scandia ceria stabilized zirconia”. ScSZ has a higher conductivity than YSZ at lower temperatures, which provides greater efficiency and higher reliability when used as an electrolyte. Scandia is scandium oxide (Sc2O3) which is a transition metal oxide that costs between US$1,400 and US$2,000 per kilogram in 99.9% pure form. Current annual worldwide production of scandium is less than 2,000 kilograms. Most of the 5,000 kilograms used annually is sourced from Soviet era stockpiles. To save money, the Bloom

Energy Server uses inexpensive metal alloy plates for electric conductance between the two ceramic fast ion conductor plates. In competing lower temperature fuel cells, platinum is required at the cathode. Bloom Energy is the company that develops, builds, and installs Bloom Energy Servers. The company, started in 2002 by CEO K.R. Sridhar, is one of 26 named a 2010 Tech Pioneer by the World Economic Forum. History In October 2001, CEO K.R Sridhar met with John John Doerr from the venture capital firm Kleiner Perkins. Sridhar asked for more than $100 million to start the company. Bloom Energy eventually received $400 million of start-up funding from venture capitalists, including Kleiner Perkins and Vinod Khosla. The company, originally called Ion America, was

renamed Bloom Energy in 2006. Sridhar credited his nineyear-old son for the name, saying that his son believed jobs, lives, environment, and children would bloom. Michael R. Bloomberg appeared at the launch by video link. Bloomberg’s business news network covered the event, but attributed every statement to “Bloom Energy”. The CEO gave a media interview (to Fortune Magazine) for the first time in 2010, eight years after founding the company, because of pressure from his customers. A few days later he allowed Lesley Stahl of the CBS News program 60 Minutes to see the factory. On February 24, 2010, the company held its first press conference. Bloom Energy’s wellknowncustomers include Walmart, Staples, AT%26T”&Adobe, CocaCola, Ebay, Google, Bank of of_America”America,FedEx, Life Technologies, Safeway, and Yahoo. In July 2014, the company [15]

[16]

announced a “long-term strategic partnership” with Exelon Corporation to finance “fuel cell projects at 75 commercial facilities in California, Connecticut, New Jersey and New York.” Cost Installation The current cost of each hand-made 100 kW Bloom Energy Server is $700,000–800,000. In 2010, the company announced plans for a smaller, home sized Bloom server priced under $3,000. Bloom estimated the size of a home-sized server at 1 kW, although others recommended 5 kW. The capital cost is $7–8 per watt. According to the New York Times (Green Blog), in early 2011 “... Bloom Energy ... unveiled a service to allow customers to buy the electricity generated by its fuel cells without incurring the capital costs of purchasing the six-figure devices.... Under the Bloom Electrons service, customers sign 10year contracts to purchase CONTINUES ON PAGE 42

2015 December, SweetcrudeReports

Technology

Bloom Energy Server

Bloom Energy Server CONTINUED FROM PAGE 41

the electricity generated by Bloom Energy Servers while the company retains ownership of the fuel cells and responsibility for their maintenance.... ‘We’re able to tell customers, ‘You don’t have to put any money up front, you pay only for the electrons you use and it’s good for your pocketbook and good for planet,’ ‘ [CEO K.R. Sridhar] said. Usage On 24 February 2010, Sridhar claimed that his devices were making electricity for $0.08–.10/kWh using natural gas, cheaper than today’s electricity prices in some parts of the United States, such as California. Twenty percent of the cost savings depend upon avoiding transfer losses that result from energy grid use. Bloom Energy claimed to be developing power purchase agreements to sell electricity produced by the boxes, rather than selling the boxes themselves, in order to address customers’ fears about box maintenance, reliability, and servicing costs. As of 2010, 15% of the power consumed by eBay was generated via the use of Bloom Energy Servers. At the time, after factoring in

tax incentives which effectively halved the initial cost, eBay expected a threeyear payback period based on the then $0.14/kWh cost of commercial electricity in California. Installations The company says that its first 100-kW Bloom Energy Servers were shipped to Google in July 2008. Four such servers were installed at Google’s headquarters, which became Bloom Energy’s first customer. Another installation of five boxes produces up to 500 kW at eBay headquarters California. Bloom Energy stated that their customers include Staples (300 kW – December 2008), Walmart (800 kW – January 2010), FedEx (500 kW), The Coca-Cola Company (500 kW) and Bank of America (500 kW). Each of these installations were located in California. A 1-megawatt Bloom Box fuel cell system installed at Yahoo headquarters in Sunnyvale, California in 2014 is designed to “power onethird of the electricity to the buildings on Yahoo’s campus.” Portable units Sridhar announced plans to install Bloom Energy Servers in third world nations. ExChairman of the Joint Chiefs of Staff, Colin Powell, now a Bloom Energy board member, [30]

said the Bloom Energy generators could be useful to the military because they are lighter, more efficient, and generate less heat than traditional generators. Feasibility Bloom Energy Server technology is based upon stacking small fuel cells which operate in concert. Bloom Energy’s approach of stacking fuel cells that enable individual plates to expand and contract at the same rate at high temperatures. However, other solid oxide fuel cell producers have solved the problem of different expansion rates of cells in the past. Scott Samuelsen of theUniversity of California, Irvine National Fuel Cell Research Center questioned the operational life of Bloom Servers. “At this point, Bloom has excellent potential, but they have yet to demonstrate that they’ve met the bars of reliability.” Lawrence Berkeley National Laboratory expert Michael Tucker claimed, “Because they operate at high temperatures, they can accept other fuels like natural gas and methane, and that’s an enormous advantage... The disadvantage is that they

CONTINUES ON PAGE 43

2015 December, SweetcrudeReports

Technology

Bloom Energy Server

Bloom Energy Server CONTINUED FROM PAGE 42

can shatter as they are heating or cooling.” Venture capitalist John Doerr asserted that the Bloom Energy Server is cheaper and cleaner than the grid. An expert at Gerson Lehrman Group wrote that, given today’s electricity transmission losses of about 7% and utility-size gas-fired power stations efficiency of 33–48%, the Bloom Energy Server is up to twice as efficient as a gas-fired power station. Fortune stated that “Bloom has still not released numbers about how much the Bloom Box costs to operate per kilowatt hour” and estimates that natural gas rather than bio-gas will be its primary fuel source. AP reporter Jonathan Fahey in Forbes wrote: “Are we really falling for this again? Every clean tech company on the planet says it can produce clean energy cheaply, yet not a single one can. Government subsidies or mandates keep the entire worldwide industry afloat. Hand it to Bloom, the company has managed to tap into the hype machine like no other clean tech company in memory.” Efficiency Bloom claims a conversion

efficiency of around 50%. A modern combined cycle gas turbine power plant (CCGT) can reach 60% overall efficiency, using a multi-step process. Sridhar stated that Bloom’s products convert chemical energy to electrical energy in one step, are more fuel efficient than current gasfired power stations and r e d u c e transmission/distribution losses by producing power where it is used. Each Bloom Energy Server ES5700 is said to provide 200 kW of power, similar to the baseload needs of 160 average homes or one office building. The average monthly electricity consumption for a U.S. residential utility customer in 2012 was 903 kWh per month (or 1.24 kW mean load). Sridhar said the boxes have a 10 year life span, although that could include replacing the cells during that period. The CEO of eBay says Bloom Energy Servers have saved the company $100,000 in electricity bills since they were installed in mid-2009, Fortune Magazine contributor Paul Keegan calls that figure “meaningless without the details to see how he got there”.

Long-term business case Assuming a 50% future cost reduction, one could argue that the best case scenario for the 200 kW unit would be a capital (installed) cost comparable to today’s 100 kW units, i.e., around $800,000. Using average electricity ($0.10/kWh) and natural gas ($3/MMBtu) prices and assuming a 6% per year maintenance/operating cost apart from fuel, the breakeven period for the device comes to over 8 years, based on published performance numbers. These numbers mean that the total lifetime of these systems would need to exceed 15–20 years to make an argument for a viable long-term business case without subsidies. The analysis might be somewhat different if the systems are used mainly for peak (power) shaving when electricity costs can exceed $0.15/kWh. However, the intermittent nature of such peak periods would likely reduce the overall impact on the estimated break-even period using average cost figures for electricity and natural gas. A reliable bioderived source of fuel (bio-

gas) would also tip the argument in a favorable direction, however such sources are not typically located near customer sites. Competition A Gerson Lehrman Group analyst wrote that GE dismantled its fuel cell group five years ago and Siemens almost dismantled theirs. GE Power Conversion is researching a SOFC power hybrid. United Technologies is the only large conglomerate that has competitive fuel cell technology Toshiba has technology to provide energy for a small device, not a neighborhood. Sprint owns 15 patents on hydrogen fuel cells and is using 250 fuel cells to provide backup power for its operations. Sprint has been using fuel cell power since 2005. In 2009, Sprint’s fuel cell program received a grant of $7.3 million from the United States Department of Energy to expand the hydrogen capacity of its fuel cell tanks from providing up to 15 hours of backup power, to 72 hours. Sprint partnered with ReliOn and Altergy for fuel cell manufacture, and with Air Products as a hydrogen supplier. German fuel cell firm P21 has been working on similar projects to supply backup power for cellular operations. United Technologies makes fuel cells costing $4,500 per kilowatt.

In October 2009, the Department of Energy awarded nearly USD $25 million in grants for research and development of solar fuels. In October 2012, the US government awarded Bloom Energy $70,710,959 under its section 1603 energy awards program. A competitor claimed the Bloom Box uses a “thick electrolyte” that requires 900 °C temperatures to overcome electrical resistance. Fuel Cell and Ceres Powerinstead employ “thick anode” technology that allows operation at cooler temperature. Ceres has a four-year program to install 37,500 units in the homes of customers of the UK’s British Gas. Ballard Power’s comparably scaled products are based on proton exchange membrane fuel cells. Ballard’s 150 kW units are intended for mobile applications such as municipal buses, while their larger 1 MW stationary systems are configured from banks of 11 kW building blocks. Another competitor in Europe and Australia is Ceramic Fuel Cells. It claims an efficiency of 60% for the power-only units; these fuel cells are based on technology spun off from Australia’s CSIRO.

Community

2015 December, SweetcrudeReports

NDDC road project

How firm disappeared with N720m NDDC project fund â&#x20AC;&#x201D;Urhobo group OSCARLINE ONWUEMENYI

he Agbarho ( U r h o b o ) Improvement U n i o n Incorporated has alleged that the contractors empowered by the Niger Delta Development Commission, NDDC, to execute a road project within their community disappeared with the commission's N720 million. In a petition addressed to the Senate President, Dr. Bukola Saraki, and presented on the floor of the upper chamber by the senator representing Delta Central Senatorial District, Senator Ighoyota Amori, the group alleged that the contractors failed to execute the project despite the fact that the firm had collected N720 million as mobilisation

All efforts by community leaders to get the contractors to execute the project since then had been unsuccessful as the management of the NDDC were not forthcoming with any information fee. The petition, signed by their President-General, Chief John Gbenedio, and Major General O.E. Obadia, a copy of which was obtained by our correspondent, said the contractors, Messrs Serena Rocks Limited, who were awarded the 2.3-kilometre Agbarho township road project, collected the first mobilisation fee of N360 million in 2011 and another

N360 million in 2012 without mobilising men and materials to site. They lamented that all efforts by community leaders to get the contractors to execute the project since then had been unsuccessful as the management of the NDDC were not forthcoming with any information. â&#x20AC;&#x153;NDDC officials also confirmed to us that over

N668m is in custody of the the contractors for over five years now without any job done on the project," they stated. The Urhobo group noted with concern that the search conducted by it at the Corporate Affairs Commission in Abuja revealed that all the three directors on the company are foreigners, namely, Imed Aoun; Laurent Aoun and Joan Aoun, who only paid and filed the annual return of the company in 2009. They alleged further that all the three directors curiously applied to have their signatures changed in 2010 after the award of the contract and that the CAC granted their application. The petitioners also alleged that further search at the CAC also indicated that the contractors deliberately defrauded the country

because it paid and filed for its returns in 2009 which was the year that the contract was awarded. They, therefore, urged the Senate to institute a probe into the activities of the NDDC in the previous years to unearth other frauds because the agency had not made necessary impacts in the lives of the people in their mandate area despite the huge funds allocated to it. Meanwhile, the Senate h a s c o m m e n c e d investigations into the matter. The Deputy Senate P r e s i d e n t , I k e Ekweremadu, who presided over plenary, on the day the matter came up, asked the Senate ethics committee to investigate the alleged fraud and report back within four weeks.

2015 December, SweetcrudeReports

Community

NOSDRA decries Mobil's non-compliance with environmental laws …Threatens legal action OSCARLINE ONWUEMENYI

he National Oil Spill Detection and Response A g e n c y , NOSDRA, has threatened legal action over a N10 million fine it slammed on Mobil Producing Nigeria Unlimited, MPNU, with

regard to an oil spill incident at the Qua Iboe Terminal. NOSCRA accused the oil company of non-compliance with the nation’s environmental laws despite its written reminder notifying them of the sanctions imposed by it for failure to effect clean up of the oil spill incident at Qua Iboe Terminal.

The agency said it has "written a reminder letter to Mobil Producing Nigeria Unlimited notifying them of the sanctions imposed by NOSDRA for failure to effect clean up of the oil spill incident at Qua Iboe Terminal. "It would be recalled that the Director General/CE of

NOSDRA Sir Peter Idabor wrote a reminder letter to Mobil Producing Nigeria Unlimited directing them to pay the sum of Ten Million Naira (N10,000,000) levied against the company for sundry violation of the provisions of the Agency's enabling Act and it's Oil Spill Recovery, Clean Up,

Remediation and Damage Assessment Regulations 2011. "Consequently, NOSDRA has directed the oil company to pay the said fines or face the legal machinery available to the agency to compel your company to comply with the directive," the statement added.

Oil spill

Traditional rulers decry spate of pipeline vandalism in Lagos KUNLE KALEJAYE

raditional rulers in Lagos State have cried out against the nefarious activities of pipeline vandals in the state as they emphasised that this was negatively affecting the country's economy. The traditional rulers urged security agents in the state to live up to their duties by ensuring that the nefarious act was brought to an end while culprits found wanting were appropriately dealt with within the law. Speaking at an interactive session with journalists in Lagos, they explained that traditional rulers within the riverine areas of Amuwo Odofin Local Government Area of Lagos had a unanimous agreement to adopt a zero-tolerance policy against pipeline vandalism within their

domain. According to Oba Adegboye, he and his colleagues within the riverine communities in the local government area were ready to lend a helping hand to security agents in bringing pipeline vandalism to a halt. "In my domain, we have the Nigeria National Petroleum Corporation pipeline that passes through the area down to Atlas Cove, and I have adopted a system that does not encourage vandalism. If you ask the security agents patrolling around our waterways, they can attest to this. “There is no inhabitant of my community that will engage in such because they know that such person will be arrested and handed over to security operatives.” Meantime, Oba Akinwumi on his part said the security agents saddled with the responsibility of protecting the pipelines should have a close rapport with the traditional rulers within those communities.

2015 December, SweetcrudeReports

Community

Polluted river in Ogoniland

Open national dialogue on Ogoni issue, NHRC tells govt MKPOIKANA UDOMA

he National Human Right Commission, NHRC, wants President Muhammadu Buhari to open a national dialogue on the Ogoni question with the intent of addressing the key issues raised in the Ogoni Bill of Rights. Chairman of the NHRC, Chidi Odinkalu, also advocated the exoneration of the Ogoni nine (Ken Saro Wiwa and eight others) executed in 1995 by Nigeria's military government for speaking up against the environmental terrorism in Ogoniland, orchestrated by the Shell Petroleum and Development Company, SPDC. Odinkalu, who made the call at a public lecture in Port Harcourt to mark the 25th anniversary of the Ogoni struggle and 20th anniversary of the hanging of the Ogoni nine, also called for territorial equity, infrastructural development as well as a proper compensation for the Ogoni

people. Delivering a lecture on the theme, "Towards Liberty, Development and Peace: Charting the Roadmap for a Sustainable Future for the Ogoni People", Odinkalu decried the unholy resource allocation formula in Nigeria as called for the decommissioning of the Joint Military Taskforce, JTF, in

the Niger Delta, saying it is ineffective. "As part of President Muhammadu Buhari's programme for national healing and reconciliation, he should set in motion the process for clearing the names of the Ogoni nine. This issue has been delayed for too long and I will appeal to the President once again

to address this issue once and for all. " O g o n i n e e d s a development that will affect positively the lives of both the rich and poor and cut across the rural communities. There should be a major cancer centre in Ogoni to look after the Ogoni people, most especially the elderly ones impacted by

h y d r o c a r b o n contamination in Ogoniland," he said. He maintained that the Niger Delta has been occupied by th JTF since 1994, arguing that the money used in keeping the JTF should be channelled to infrastructural development such as well equipped hospitals and good roads in the region.

Moni Pulo empowers 400 business owners in Akwa Ibom

oni Pulo Limited, an indigenous player in the upstream sector of the Nigerian oil and gas industry, has carried out the 2015 edition of its community empowerment programme, providing about 400 business owners in Mbo Local Government Area of Akwa Ibom State with key business equipment. It is the seventh of such empowerment programmes carried out in Akwa Ibom State by Moni Pulo, usually referred to as the good neighbour due to its

commitment to improving the lives of people in its host communities. The company said in a statement that it carried out the 2015 edition of the Community Empowerment Programme in response to the need identified by the people of Mbo Local Government Area. In her address at the event, the Executive Vice Chairman of Moni Pulo Limited, Dr. Seinye O.B. Lulu-Briggs, disclosed that the occasion emphasized the strong and unwavering commitment Moni Pulo had towards the wellbeing

of the people of the local government area. “As we present our brothers and sisters in Mbo with equipment to start up their business, our belief is that livelihoods will be secured and enhanced, hope restored and self-esteem improved, as more people will be given the opportunity to unlock their potential and the fortunes of families and indeed entire communities will be improved”, she said. Through this Community Empowerment Initiative, Moni Pulo Limited has aligned with the ‘Dakka Da’

social awareness initiative instituted by the Governor Gabriel Udom Emmanuel administration in Akwa Ibom State. Motivated by its mission to be a beacon of hope to succeeding generations of indigenous industries, Moni Pulo Limited, through this programme, has created a platform for the indigenes of Akwa Ibom State to further unlock their potentials and enhance their livelihoods.

Community

2015 December, SweetcrudeReports

E-mail: johniyene@yahoo.com

FUEL SCARCITY:

A New Government, Old Habits

Women undergoing an empowerment programme

Shell empowers 80 women in Rivers MKPOIKANA UDOMA

ighty youths h a v e benefitted from a skills acquisition programme of the Andoni Cluster Development Board, CDB, organised and sponsored by the Shell Petroleum Development Company of Nigeria, SPDC, under its Global M e m o r a n d u m o f Understanding, GMoU, for the development of communities in the Niger Delta. The 80 young women earned National Board of Technical Educationapproved certificates at the end of a three-month intensive training programme in fashion and design, catering, cosmetology and computer education, under a partnership between the Shell's GMoU with Andoni CDB and the Rivers State Sustainable Development Agency, RSSDA, in Bori, Rivers State. SPDC’s Head, Government and Community Relations, Mr. Edesiri Akpomudjere

said Shell's GMoU is hinged on the continuous development of its operational areas in the Niger Delta region as part of its corporate social responsibility. “Our Global Memorandum of Understanding with our host communities is anchored on the principle that they should drive their own development and capacity building. "This structure elevates SPDC and the host communities to the rank of

Our Global Memorandum of Understanding with our host communities is anchored on the principle that they should drive their own development and capacity building

partners, collaborating for a common purpose; the continued development of Nigeria’s Niger Delta region.” A k p o m u d j e r e congratulated the beneficiaries for successfully completing the intensive training programme and challenged them to utilise the skills and networks they have gained from the training to their full potential. Also, the Andoni CDB Chairman, Chief Gad Harry commended the SPDC joint venture for playing a key role in the success of the programme. “These young women are our pride, the repository of our own values knowing the role they would play in our society tomorrow," he said. Some of the beneficiaries who spoke with newsmen said that the programme has equipped them with skills that would set them apart in an increasingly competitive job market and commended the SPDC joint venture for funding the development programmes of the Andoni CDB.

t was six weeks of total madness in the Niger Delta city of Port Harcourt where at the height of the scarcity, 10 litres of petrol sold for N5,000.00. According to the host of a radio talk show, the positive side to the saga was the absence of traffic jams in a city that had patented the malaise and had begun to franchise it to neighbouring cities like Aba and Yenagoa. No amount of humour can take away the excruciating suffering of the people of Nigeria in this last period of energy crisis. Industries were shut and production activities were grounded but the unendurable aspects of the saga manifested in the chaos experienced in hospitals, medical laboratories and health care centres generally. Patients in operating theatres were taken out dead or dying to nowhere as other centres were closed or closing; doctors, nurses and other care givers stayed in their homes and awaited the resuscitation of a collapsed transportation system. Nigerians were perplexed, angry and confused at the inability of the new government to come to grips with the challenges faced by the people, several months after a hope-filled inauguration. What is the cause of the new government’s inability to establish a fuel supply system that would be sustainable and secure in its continuity? Did the new government not develop a strategy for removing fuel scarcity from the national experience of Nigerians? At the height of her reign at the NNPC Towers, Diezani Alison-Madueke introduced the crude swop system whereby the NNPC bought 445,000 barrels of crude daily from producers at prevalent international prices, granted about 250,000 of it to two domestic entities and one international entity who took out the crude for refining, ostensibly for re-injection into Nigeria’s fuel supply stream. The residue was left for domestic refining. As Mrs. AlisonMadueke’s ministry accounted to no one and answered no questions about the volume of crude “swopped” that found its way back into the Nigerian chain, it was dubbed as a fraudulent programme. The new government continues the swop programme with a new feature: the whole 445,000 barrels are swopped for refined products but as with Mrs. Alison-Madueke’s programme, the new government does not account to anyone as to the amount returned as refined products and no one has the means to track the movement of the swopped barrels of crude. Apart from falling short of the expectations of the Nigerian electorate that bought into the new government’s change mantra, it is obvious the Buhari government was unprepared for the electoral success it won. The Nigerian public expects that the new government should be able to maintain the supply levels if for the sake of coming into the game newly, it is unable to exceed it. They are baffled that six months after its inauguration, President Buhari’s government has no idea about maintaining a steady fuel supply system that is devoid of the corrupt subsidy system that it campaigned against. It is a howling discredit to his government that Muhammadu Buhari still pays the subsidy he told the Nigerian electorate he has no understanding about or sympathy for. Oil prices are in precarious conditions and shale gas is soaring in popularity and acceptability yet a government that relies on oil and gas has not made any credible pronouncement as to the way forward on alternative sources of income or a coherent energy policy that will see Nigeria’s reservoir of gas replacing crude as the major income earner within an acceptable range of time. Nigeria’s current oil reserves shall peter out in less than forty years but its gas reserves promise to outrun another century. A country with such rare promise in gas ought to be in the front row of gas exporting countries, deploying the resource not only to serve its budgetary needs but also to stabilise international trade and buy front stakes in international politics. Nigerians did vote for change, not of faces but attitudinal approach in the management of public and government business. As things stand, Nigerians have not seen any real change but are still patient in the optimism that the promised change shall become manifest soon and as Senator Ben Murray Bruce has suggested, the people did not vote in a new government to take stock of the failures of the old one but to correct them and to provide for them within acceptable time limits, the assurances they have a right to expect.

2015 December, SweetcrudeReports