Sweetcrude june 2014

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5,000 delegates expected st Russia at 21 WPC

Relief nearby as NNPC deploys strategy to improve gas supply President Goodluck Jonathan

A Vanguard Monthly Review Of The Energy Industry VOL 04

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Fears for Libya reserves as rival cabinets lay claim

R

ival interim governments are disputing power in Tripoli less than four weeks before a general election, claiming control of Libya's huge currency reserves from oil and gas.

The power struggle is creating a quandary for foreign diplomats as the competing claimants trumpet their meetings as a vindication of their legitimacy.

Prime minister Abdullah al-Thani had announced his intention to step down earlier this year after an armed attack on his family but he is insisting that his successor should be chosen by a new parliament rather than its contested predecessor.

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Consumers decry increase in electricity tariff

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Contents 4 COVER 07 OIL 12 GAS 14 POWER 16 FOCUS 18 TECHNOLOGY 20 LABOUR 22 FINANCE

Nigerians showcase potential to the world

Ofon 2: Total expects 1st oil in Q3 2015

Relief ahead as NNPC deploys strategy to improve gas supply

Consumers decry increase in electricity tariff

Nigerians can excel if given the opportunity

Group unveils technology for repair of industrial parts

Unemployment: Oil sector employs 0.01% of Nigerian workforce

Caverton’s contract from Total attract 2yr extension

23 SOLID MINERAL 25 INSURANCE 27 MARITIME

Iron ore heads for record losing streak on growing supply

Brokers charges insurers on adequate reinsurance

NLNG, HHI flag off training on ship building

29

COMMUNITY

FG sets up committee on ecology

Sweetcrude is a publication of Vanguard Media Limited

THE TEAM EDITOR Clara Nwachukwu CORRESPONDENTS Victor AHIUMA-YOUNG Godfrey BIVBERE Jimitota ONOYUME Samuel OYANDOGHA Emma Arubi Michael Eboh Rosemary ONUOHA Sebastine OBASI Ediri EJOH HEAD, SPECIAL REPORT Ubong NELSON PAGE LAYOUT/DESIGN

Francis AYO & Johnbull OMOREGBEE

Enquiries Call: 08098051103

Printed and Published by

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Vanguard Media Limited.

Vanguard Avenue, Kirikiri Canal, P.M.B. 1007, Apapa.

All correspondence: P.M.B 1007, Apapa, Lagos.

T

hree years have gone so fast and the world is about to conver ge again at the 21 st World Petroleum Cong ress, WPC, to discuss issues affecting global energy su pply and demand with delegates, c aptains of indus try, government institutions, and s' other sundry vis itors.

Russia, the host country expects to set new attendance reco rds to the Cong ress, popularly t ag ge d, “T he Ol y m p i c s of th e Pe tr o le um Industry,” as ove r 5,000 delegate s are expected to grace the event holding in Mosc ow between Jun 15 and 19. e N o t w i th st an d i ng t h at t h e Co ng re ss is coinciding with the 2014 World C up in Brazil, the Russian Govern ment is said to h ave rolled out th red carpet to welc e ome all to the eve nt.

Nigeria on its part constituted a National Committee, com prising governm ent agencies, in du str y op er at o r s , th e m ed i a a n d ot he r stakeholders to make a success ful outing, as it usually reputed is for.

With the succes sful participatio n in the annual Offshore Techno logy Conference, OTC, in May, in Houston Texas, USA, the WPC o ffers yet another chance for th e countr y to t ell the world developments in its oil and gas s ector since the last Congress wa s held in Doha, Qa tar in 2011.

Sweetcrude, wh ich has been part of these experiences, is not only informi ng the global village about all that is currently happening in Nigeria's energy value chain, bu t w ill also be on ground in Mosc ow to capture events as they unfold.

We therefore wi sh all Nigerian s a prosperous outing!

DELTA AIRLINES

Cover Story

4

SEBASTINE OBASI

T

he 2014 edition of the Offshore Te c h n o l o g y Conference, OTC, the biggest annual oil and gas event in the world, which held in Houston, Texas, from May 5 to 8th, brought to the fore the growing importance of Nigerian companies in the oil and gas industry.

Attendance at the annual conference reached a 46-year high of 108,300, the highest in history and up by 3.3 percent from last year. The attendance surpassed the 2013 total of 104,800 as the event had 2,568 companies representing 43 countries, including 163 new exhibitors in 2014. International companies made up 44 percent of exhibitors.

Nigerians' participation Out of the number that attended the event, about 2,500 Nigerian delegates participated. About 500 delegates registered for the panel sessions, while 41 companies displayed their capabilities in the area of exploration, exploitation and service provisions to the world.

“Some of the participating companies were turned down due to space constraints,” said Geoff Onuoha, Chairman, OTC Organising Committee. He also said that only eight Nigerian companies exhibited. This is contrary to the long-held notion that the OTC is an annual jamboree for Nigerians.

Also corroborating the steady growth of Nigerian companies and their attendance at the OTC, Egbert Imomoh, Chairman, A f r e n , a Pa n A f r i c a n independent oil and gas company said that Nigerians have been impressive over the years. “Some 15 years ago, when we were here showcasing Nigeria at the OTC, never in our wildest dreams would we have thought that so many people would come to OTC. Every year the number keeps increasing. I sincerely hope those who come are extracting value from the event,” he said.

For Andrew Yakubu, Group Managing Director, Nigerian National Petroleum Corporation, NNPC, the OTC has afforded Nigerian companies an opportunity to showcase to the outside world their expertise in the oil and gas sector. In other words, Nigerians can compete favourably with their counterparts from the advanced countries of the world.

“From what you have seen in terms of showcasing the gains of Nigeria's outing in the various OTCs, you will see clearly here the levels of expertise that our indigenous companies have acquired.

“Today, they are able to participate in virtually all the entire spectrum of the oil and gas services; drilling to well testing, and various subsurface diving services,

Oil rig

Nigerians

showcase potential to the world subsea maintenance.

“These are expertise that were purely resident outside the country in the past, but from the fallout of our outings, you can see clearly that there has been very good acquisition of technologies that have enabled our indigenous players to do these things back home without necessarily importing these expertise

from outside the country.

Therefore, it has been a very good gain to Nigeria that we have been participating since the inception of OTC in this regard,” he said.

Companies cutting their teeth Also speaking, EmekaEne, C h a i r m a n , Pe t r o l e u m Technology Association of Nigeria, PETAN, stated that

Nigeria's presence at the OTC is important as the country is a key player operating in the global oil and gas industry.

According to him, “PETAN companies first registered Nigeria's presence at the OTC in 1999, when we were having a hard time convincing investors and technology providers that Nigerians were not all

criminals.

“The OTC value proposition, if I may call it that for Nigeria and by extension, PETAN can be summarised as taking advantage of a cost-effective global policy and technology platform for pursuing our strategic energy interests just like every other country big and small actively does.”

CONTINUES ON PAGE 5

Cover Story

5

Nigerians showcase potential to the world

Oil tank farm

CONTINUED FROM PAGE 4

He explained that beyond the exhibitions, PETAN organised a full programme of topical sessions, technical meetings and presentations that ran throughout the week of the OTC, involving participants from the world of oil and gas industry.

Furthermore, he argued that the Nigerian topical luncheon holds the record as one of the most widely attended at the OTC. Dismissing the notion that the event is a Jamboree, Ene said, “Now a few people look at the Nigerians who congregate at the Nigerian pavilion and conclude that this must mean that these folks have nothing better to do. There are more Brazilians attending the OTC than Nigerians each year. It does not strike you as an issue because they obviously blend

in better with the crowd.

“Every black person you spot walking around the arena is assumed to be a Nigerian; but Angola, Ghana and South Africa also have large delegations attending the OTC each year “Across the Reliant Park, over 200 hospitality events take place, not counting those organised in the OTC venue.

Nigerians are not involved in most of those parties.”

Ene also assured that Nigerian service companies have derived tremendous value from exhibiting at the OTC over the years.

“I know of at least two PETAN companies that have secured export for others at the OTC for products they manufacture in Nigeria.

Many other companies schedule regular meetings with clients and suppliers during the OTC week.

“Some of our members now

operate in places like Mauritania, Angola, Yemen, Venezuela, South Sudan and many other provinces because of their exposure at the OTC. The OTC gives the opportunity to meet up with all these important stakeholders in one venue and raise Nigeria's profile in the process,” he said.

How exhibitors, participants feel For Dayo Adegun, Assistant General Manager, AOS Orwell Limited, an oil s e r v i c i n g c o m p a n y, Nigerians participation at the OTC has been effective.

He further explained that the event provided the opportunity to know the latest technology in the oil industry.

“You can easily sight the original equipment manufacturers (OEMs), the new technology you can

Some of our members now operate in places like Mauritania, Angola, Yemen, Venezuela, South Sudan and many other provinces because of their exposure at the OTC deploy in the Nigerian industry. If you had your strategy before coming to the OTC, some of your services w o u l d n e e d n e w technologies before they are deployed,” he said.

He also said the 4-day event met his expectations in such areas as the attendance, organisation and the quality of companies in attendance.

“Most especially the level of

technology on display, most of the companies at the OTC actually bring in the needed tools. For those who don't bring tools, they bring the models for all to see and learn from.

“As you exhibit at the OTC, it differentiates you from the brief case companies. People have been coming to our stands and some have CONTINUES ON PAGE 6

Cover Story

6

“Clearly the deep and broad coverage of the technical program, flanked and s u p p o r t e d b y exc e l l e n t panels, executive keynote presentations, distinguished and spotlight award winners, as well as thousands of displays of the latest in new technology at the exhibition, continues to demonstrate the power of collaboration from our member engineering and geo-science societies and trade organisations moving the offshore oil and gas industry forward safely, sustainably and with due consideration of environmental protection,” he added.

Stokes also explained that this year's event featured nine panel sessions, 29 executive keynote presentations at luncheons and breakfasts, and 308 technical papers. “ S p e a k e r s f r o m m a j o r, independent, and national operators; federal and regional government officials; academia; and more presented their views on a wide variety of topics while discussing views on the current challenges and future directions of the industry,” he said.

CONTINUED FROM PAGE 5

signified their interests to come to Nigeria because of the quality of operations they have seen so far. New relationships have been built.

New businesses will come up as a result of the meetings we have had at the OTC. These will add value to what we have been doing back home in Nigeria,” he said.

Similarly, DeboFagbami, Chief Executive Officer, Xenergi Limited, said the OTC met his company's expectations as many people showed interests in what they do and want to work with them. Also, he was elated at the new technology exhibited.

“The technology showcased has generated a lot of interests among attendees at the conference. One of those was the optic fibre cable technology for pipeline and facility monitoring, which checks pipeline vandalism and crude oil theft.

“That technology has made some kind of impact. There is also the new gas processing facility, which has elicited some interest among the attendees. Indeed, the OTC has become a Mecca of sorts, a gathering point for exchange of ideas and sharing of knowledge. It is good that more Nigerian companies participate next time,” he said.

Another Nigerian company that exhibited at the event, Kaztec Engineering Limited, believes the conference was worth its while. According to Edwin Ndukwe, Head Communications, the OTC has provided a platform for them to exchange ideas, learn a few things and cultivate new business relationship.

“The OTC has enabled us to showcase what we do, make new clients and friends and move on from there. I took values of what we have existing in-country and the projects we are already working on.

“A s a 1 0 0 p e r c e n t indigenous company with the local content, what we are doing is to ensure that we meet a 100 per cent what that law entails, and Kaztec has been able to do that with what we are showcasing at the Snake Island and all the

Oil pipeline

Nigerians showcase potential to the world branches within the Chrome Group.

“You can see that with ingenuity, with creativity, with the innovation that is going on within the Chrome Group, we will continue to enhance that capability and ensure that Nigerians are first

clicks in the job market. With what we have, we have been able to harness and bring in more Nigerians from the Diaspora coming home to tap into what is going on in Nigeria,” he added.

Record setting,

Speaking on the new attendance records, Chairman of OTC,Ed Stokes, said,“OTC's great success this year is yet another validation of the great vision inspired by the founders who created the conference in 1969.”

Oil

7

st

Ofon 2: Total expects 1 oil in Q3 2015 … Gas flaring to end December sent to the domestic gas market thereby

boosting

the

government's aspirations on power.”

Hyest explained further that Ofon 2, which is about four times the size of Ofon 1,has the capacity to produce in excess 350million barrels of oil equivalent, boe, including oil, gas and condensates.

He disclosed that there are about 24 development wells, 16 of which are producers and the remaining eight injectors.

He also said that upon completion, “Ofon 2 will form the hub of production for future development in OML 102 such as: Etisong, Eben (Obongawan), Emem, Uyai, Ofon South, and Ofon North East.” According to him these fields hold additional reserves prospects of over 250 million boe.

Costs escalation Justifying the steep rise in the overall cost of the project delivery, Total cited inflation, approval delays, contractors'

Gas flaring

delays, and Nigerian content as being responsible.

Recall that Vanguard had

Clara Nwachukwu

N

igerian unit of French o i l c o m p a n y, Total E & P Nigeria, said it expects to pump first oil from its Ofon 2 project before the end of the third quarter of next year.

If target is met, about 40,000 barrels per day, bpd, will be added to Nigeria's current daily production, which levels had dropped in the recent time on account of sabotage.

Total made this known during a tour of the facility organised for journalists to demonstrate the progress made so far on the offshore block located in Oil Mining Lease, OML 102.

Furthermore, the company

expects to end current gas flaring from the field by December, when the gas would be har nessed for export through its Amenam Kpono field to the NLNG Plant in Bonny.

Gas flaring has remained a recurring issue in Nigeria's petroleum activities in view of the attendant environmental hazards. About 10 percent of Nigeria's total gas production of 3.5 billion cubic feet, bcf, is currently being flared, according to the Nigerian National Petroleum Corporation, NNPC, which owns 60 percent equity in Ofon 2.

The Project Manager of Ofon 2, Mr. Emmanuel Hyest, in company of other top managers

of the project conducted journalists round the facility, which he said is now more than 83% completed.

Hyest's pronouncement lends credence to an earlier one made recently in Paris, France by Total's Chief Executive Officer, Mr. Christophe de Margerie, who expects the project managers to deliver “Ofon Phase 2 in Nigeria in the second half of

Gas flaring has remained a recurring issue in Nigeria's petroleum activities in view of the attendant environment hazards. About 10 percent of Nigeria's total gas production of 3.5 billion cubic feet, bcf, is currently being flared

the year.”

This is particularly so as almost all the remaining parts of the

flaring; monetise the gas by

project are now being executed

piping it to the NLNG plant

132.6 percent rise in the cost of

simultaneously in order to meet

viaAmenam field; and lastly,

the project from an initial

targets.

develop additional reserves

$2.85billion to proposed

while producing the remaining

$6.63billion.

Objectives of Ofon 2

Phase 1 reserves.”

exclusively reported a whopping

The Ofon Field Development

Hyest told the journalists,

He added, “When completed,

Project Phase 2 was launched in

“Ofon 2 has three major

about 106 million standard cubic

2007, to enhance production

objectives; first is to stop gas

feet, scf, of gas per day will be

from the mature Ofon field.

Oil

8

Russia

5,000st delegates expected at 21 WPC since 1952.

A

Basically, the Review is a data on, “Which countries produce and consume the most energy?

Who has the largest oil and gas reserves? Where is energy use growing and where is it falling?

side from about

become way harder and more

680 industry

expensive to get them.”

s p e a ke r s , n o

The Congress is a global

than

industry conference and

5,000 delegates

exhibitions that holds every

fewer

are expected for the 21st edition

three years, and is rotated among

o f t h e Wo r l d Pe t r o l e u m

member

Congress, WPC, holding in

Congress, which has been

Moscow, the Russian capital

hosted once in Africa, South

countries.

The

between June 15 and 19.This

Africa in 2008, was last held in

edition is anticipated to be the

Doha, Qatar in 2011. The next

largest ever in the history of the

edition of the Congress is billed to hold in Instanbull, Turkey in

Congress.

The theme for the Congress:

2017.

“Responsibly Energising a

The official website of the

Growing World” according to the

Congress, www.21wpc.com,

organisers, “also points to

stated that Ministers and chief

sustainability and society issues,

executive officers, CEO's from

which are key to the industry's

some of the world's leading

future development.”

national and international oil

The

President,

Wo r l d

and gas companies have already

Petroleum Council, WPC,

been

confirmed

organisers of the Congress, Mr.

participation.

their

Renato Bertani, and other

“They include Russia's Deputy

industry experts noted that “the

Prime Minister, Mr. Arkady

world oil market has been

Dvorkovich and HE Ali Al

unstable and volatile lately.

Naimi, the Minister of Petroleum

Prices have been going up and

and Petroleum Resources from

down, making some oil

Saudi Arabia. The NOCs and

exporters feel nervous.” They

majors are represented by Bob

also observed that “the planet is

Dudley, CEO of BP, Zhou Jiping,

running out of easily accessible

the President of China's largest

resources, and it will soon

oil

company

CNPC,

The BP Statistical Review of World Energy is now in its 63rd year. It is the longest running compilation of global energy statistics available and is widely recognised as an objective source of data on energy markets

E x xo n M o b i l ' s C h a i r, Rex

Responsibility. To this end, the

Tillerson,Maria

first edition of the WPC CSR will

das

GracasFoster, President of

hold next year in Norway.

Petrobras, Brazil, Helge Lund,

Since it won the hosting rights

Statoil's CEO from Norway and

for the Congress, the Russian

Christophe de Margerie, the

organising committee has kept

CEO of Total in France.”

the global public updated with

Sequel to the Congress, the

developments regarding the

Council, held the 4 WPC Youth

event. Such updates include

Forum, in Calgary, Canada, in

programmes, technical sessions,

October last year. The event,

awards, exhibitions, and

targeted at youths under 35

timelines and a host of others.

th

years working in the petroleum industry, saw the participation of

High point

about 1,500 delegates from 61

One of the highpoints of the Congress will be the launch of

countries.

Apart from the Youth Forum,

this year's Annual BP Statistical

the Council has also introduced

Review of World Energy.

a global oil and gas leadership

This will be the first time the Statistical Review is being launched outside BP premises

event

on

Cooperation,

Sustainability

and

The 2014 launch, which will take place on Monday June16, will be led by BP Group Chief Executive,Mr. Bob Dudley, and BP Group Chief Economist, Mr. Christof Rühl, with panellists including energy expert and author, Mr. Dan Yergin.

According to the organisers, “The presentation will look at energy production and consumption by market and by energy-type, followed by a panel discussion, which will examine the important emerging trends and assess the challenges and opportunities facing the energy industry and the world in general.”

The BP Statistical Review of World Energy is now in its 63rd year. It is the longest running compilation of global energy statistics available and is widely recognised as an objective source of data on energy markets, which is often quoted in the media and academic research.

The host Russia, one of the world's largest producers of oil and gas, is hosting the Congress for the second time, the first being in June 1971.

To facilitate its successful hosting, the Russian Government has declared its patronage for the Congress.

Oil

9

Marginal fields account for 2.56% of Nigeria's crude production …Only seven operators are productive – NNPC

Oil marginal field

becoming a big challenge Petroleum/Owena, owners of concern over the low 91,246 barrels, and, going by the difficult the Ororo field; productive capacity of the  Waltersmith - 85,880 environment that Nigeria marginal fields.  Bicta Energy Ogedeh barrels per day. poses to investors and He attributed the trend to the field; The least producing firms financiers from the outside fact that a number of the  S o g e n a l a r g i n a l were: world who want to partner with indigenous investors are f i e l d s '  Pillar Oil - 43,774 LimitedAkepo field; the indigenous owners and financially handicapped and operators barrels operators of marginal field. may not be able to pool the  Bayelsa Oil, Atala i n Speaking in the same vein, Mr. necessary resources to fund  Platform Petroleum field; Nigeria's Patrick Okigbo, Principal t h e a c q u i s i t i o n a n d 50,856 barrels, and,  Movido, Ekeh field; oil and gas sector have Partner at Nextier Capital production.  Niger Delta Petroleum  Goland Petroleum, continued to show their lack of Limited, an investment and He said, “In reality, the 55,408 barrels. capacity to fully contribute Oriri field; and, multi-competency advisory indigenous investors are still significantly to the country's Brittania-U, despite been listed firm, focused primarily on far from pooling that resources  Eurafric, the Dawes crude output, as seven out of on the production schedule, a g r i c u lture, power and for the oil and gas business, Island field. the 29 operators accounted for did not record any production p e t r o l e um, advocated a and as such, most of them act Others are: only 2.56 per cent of the in the month under review. change in strategy in the sale as fronts or proxy for the real  Network Exploration nation's crude production in An industry journal, Africa Oil of the marginal fields in the foreign owners, who truly buy and Gas Report, had a couple of and Production Company for January 2014. near future. the asset and pay commissions the Qua Iboe field; Data obtained from the weeks ago, disclosed that as at According to him, the oil to indigenous owners.  Universal Energy, Nigerian National Petroleum D e c e m b e r l a s t y e a r, 1 2 licensing rounds and sale of “Even though bidding is Stubb Creek field; Corporation, NNPC, revealed companies out of all the marginal fields should not be believed to be influenced by that the seven companies companies awarded the fields  Associated/Dansaki, on ad-hoc basis, they should be the powers that be, the current produced 1.734 million barrels s i n c e 2 0 0 3 a r e y e t t o tied to a comprehensive, longchallenge is funding the bids, Tom Shot Bank field; o f c r u d e , c o m p a r e d t o commence production. term, economic development paying the signature bonuses  Green Energy, the N i g e r i a ' s t o t a l c r u d e The journal attributed the strategy. and financing the exploration Otakikpo field; and, production of 2.183 million inability of the operators to “There should be an and production processes.” commence production to a barrels in January.  All Grace, operator of overarching strategy for “Oil production is highly number of factors, ranging The highest producers are: managing Nigeria's natural technical and capital the Ubima field.  Oriental Energy - from fraud allegations, and resource base for current and intensive. And it goes with a M r. B a y o O l o w o s h i l e , f u n d i n g c h a l l e n g e s t o General Secretary, Petroleum 1.054 million barrels future generations. The lot of risks, especially as it distractions.

Nigerian government should affects the investment layout.  Midwestern Oil and and Natural Gas Senior Staff The companies, according to A s s o c i a t i o n o f N i g e r i a , tie every licensing round or More so, access to the colossal Gas -352,458 barrels the journal are: sale of marginal fields to this amount of funds required for PENGASSAN, also expressed  Energia Limited  G u a r a n t e e development plan,” he said. oil and gas business is

MICHAEL EBOH

M

Oil

10

Total strengthens customer service nationwide

T

Engr. Iliasu, Head of Rehab Kaduna Refinery & Petrochemical Plant, Engr. Andy Ikekhide,MD, Divcon Engineering Group and Johan Vanderborght during a visit to Kaduna recently

Divcon, Milora partner on refining technology SEBASTINE OBASI

T

he long delay in carrying out regular turn a r o u n d maintenance, TA M , i n t h e n a t i o n ' s refineries due to paucity of funds may not be experienced any longer if the government embraces the new technology introduced by a specialist American group.

This innovative propriety patent on refinery and petrochemical processes has the invaluable potential of increasing the reliability of the operations as well as reducing energy consumption in the plants.

Speaking on the technology which is a products of research by members of the Milora Group, Mr. Johan Vanderborght said his group is currently in Nigeria under a strategic alliance with Divcon Engineering Group.

He said his company is

willing to transfer this technology to refinery and petrochemical plants in Africa that are interested in optimizing their yields in a cost effective manner.

Giving an example on refinery process in terms of the quality and color of the heavy vacuum gas oil (HVGO) before and after optimisation on the vacuum distillation column, Vanderborght explained that with the technology will increase the throughput, and improve the yield and quality.

Also speaking Mr. Mieke Dams, co-founder of the Milora group, said, "We have set-up an integrated global network, with cross cooperation between Nigeria, Europe and the United States. This team is composed of highly experienced global specialists, with a proven track record of several decennia in refinery and petrochemical industry."

According to the founders of

"Total brand is known for the quality of it service and we want to ensure that this top quality is implemented on a regular basis. the Milora Group, the team is supported by a network of major European suppliers, such as CMI, CG Global, Geldof for industrial boilers, transformers, high pressure vessels, with the aim of transferring technology and business know how to Nigerians in a practical and efficient manner, driven by competent and experience operators in this strategic industry.

Other areas of strategic technical cooperation with Divcon Engineering Group include; proprietary patents to improve refinery and

petrochemical processes, best practical & technology practices used by major industry leaders, business and operational knowledge transfer, best US and EU business and operational practices ISO standards, lean management and six sigma as used by major industry leaders.

The agreement also includes improvement of effectiveness and efficiency, practical and hands- on approach, training and certification of Nigerian nationals.

otal Nigeria Plc has stepped up its effort to provide a one stop shop customer service in all its filling stations across the country.This is coming on the heels of the customer celebration week tagged 'Top Service Week' by Total.

To p S e r v i c e We e k , according to the Managing Director, Alex Vovks, is to ensure that customers are well served in all Total outlets across the country.

Vovks explained that each outlet is expected to provide services such as free air, lube bay, wheel alignment, burnet check, mini super market and cleaning of wind screen among others.

He urged customers to lodge their complaints through the customer line provided by Total via Facebook and Twitter, if they are not satisfied with services rendered by Total attendants.

He said the company's enforcement team will visit any of it outlets where complaints are lodged by customers, i n c l u d i n g t h e hinterlands.

Speaking with news men during his first tour as the new chief executive of Total in Alapere 2 filling station in Lagos, Vovk said: "you are witnessing the top service week by all the Total management including myself to serve our customers in all the stations in Nigeria.

"Total brand is known for the quality of its service and we want to ensure that this top quality is implemented on a regular basis. That is why we came to do its ourselves‎.

It also allows us to show to our staff in the service stations how important and how much value we put in customer service.

"It is also a way of interacting directly with our customers, show them our appreciation and also to hear from them directly if they enjoy our services and point out areas of improvement.�

Oil

11

Relocate tank farms, lawmaker urges FG

BY EBUN SESSOU

Tank farm

EBUN SESSOU

L

agos State House of Assembly has called for the removal of tank farms along Apapa/Oshodi Expressway, saying the insecurity situation and consistent robbery attacks recorded on a daily basis in the area is as a result of the existence of the t a n k f a r m s .

Speaking at a media chat recently, Chairman of the House Committee on Physical Planning and Urban Development, Hon. Mufutau Egberongbe, reiterated that the existence of the tank farms in Apapa has further aggravated insecurity problem in the area.

T h e l a w m a ke r, w h o i s representing Apapa Contituency 1, said that there is the need to protect the lives of the people in the area, while calling for outright removal of the tank farms in t h e a r e a .

According to him, "Tank far ms are combustible; inflammable and provocative, therefore they should be located in nonresidential areas.

"The presence of tank farms is disturbing other economic activities in Apapa area, the tank farms should be relocated in order to save the lives of the people and properties."

He argued that, the continuous presence of tank farms at the Lagos Port is

responsible for the heavy presence of petrol tankers on major roads leading to the Port.

“We have repeatedly called for the relocation of tank farms from Tin-Can and Apapa for both the safety of lives, properties and economic reasons. We appeal that all tank far ms be

relocated from the seaports and moved far from residential and commercial areas,” he said.

His continued, “Themenace caused by the tank farms as it relates to insecurity in the area especially Lagos state is unimaginable. I believe Apapa area should be strictly used as residential area but

the existence of tank farms, brothels and hotels has impoverished it.

“A lot of people have relocated because they could no longer contain the excesses of these tank farms as well as hotels and brothels.

“The proliferation of tank farms, hotels and brothels in a place that is supposed to be a

residential area is a threat to s e c u r i t y . ” The lawmaker however revealed that he has been assisting police formations in Apapa area to ensure that the people are adequately protected, adding that he has been organising seminars and talk shows for the youths in the area to keep them busy.

CISLAC requests remediation in NEITI reports implementation Abdulwahab Abdulah

T

he Civil Society Advocacy

Legislative

Centre

(CISLAC), a non-governmental organisation has expressed concerns over the nonimplementation of the audit reports and findings of the Nigeria Extractive Industries Tr a n s p a r e n c y I n i t i a t i v e (NEITI).

The NGO urged the Federal Government to implement the recommendations to tackle corruption, and leakages in the extractive industry sector.

CISLAC argued that the nonimplementation of the NEITI audit reports has resulted in loss of revenue, which could have enhanced welfare and better living

conditions

and

development for Nigerians.

This was one of the fallouts of an interactive session on Re m e d i a t i o n a n d I n t e r-

Ministerial Task Team (IMIT),

oversight role over relevant

put together by CISLAC in

agencies and also pass the

action, which entails the

conjunction with NEITI in

Petroleum Industrial Bill (PIB).

implementation

Lagos.

He stressed that, “It would

Mr Kolawole Banwo, a Senior

help resolve a lot of the

reports and that remediation of

recommendations from the reports

to

correct

the

Programme Officer with

remediation issues. The

deficiencies identified has

CISLAC,noted that 10 years

progress report on remediation

remained elusive.

after the set-up of NEITI,

issues should become a major

“Indeed, beyond the NEITI

Nigerians were yet to derive

component of oversight reports

audit reports, there have been

any benefit from its activities,

demanded by the NASS from

several other reports, which

especially in the area of using

relevant

oil revenues to enhance

Departments and Agencies.''

Nigerians welfare.

Banwo said, “Our concern is that since NEITI’s emergence,

Ministries,

On his part, the Executive

We recall that the Harts Groups

Director of CISLAC, Mr. Auwal

was contracted for the 1999-

I b r a h i m

M u s a -

Providing technicalRafsanjani,urged and consulting the National services in support of Drilling & Offshore ultimately translate to Assembly to expedite the living conditions and passage of the PIB before the Facilities maintenance operations

nothing has changed that would better

development for Nigerians,''

have only served to confirm and reinforced the NEITI reports.

end of this legislative

2004 audit at the cost of $2.3 million, (about N345 million at N150 to $1), the two audits for 2009-2011

cost

about

N364million.”

adding that “NEITI process had

session,while the president

He expressed fear that by the

been reduced to just churning

should assent to the bill as soon

end of the ongoing 2012 audits,

out of various forms of reports.”

as this is done.

Banwo asked the National

Musa-Rafsanjani noted, “Our

Assembly to show more

concern is that so far, the NEITI

commitment to the NEITI

process has been reduced to the

process by intensifying their

churning out of various forms of

the country must have expended over N1billion on NEITI audits alone.

Gas

12

Norway rejects Greenpeace appeal against Statoil drilling Norway has endorsed Statoil to commence drilling the world's most northerly oil well in the Barents Sea by rejecting an appeal by environment group Greenpeace to block the exploration.

Oil drillers in Norway are moving further north as mature fields in the south deplete and the Arctic ice retreats opening new areas that were previously unaccessible.

U.S. estimates show that Arctic may hold 13 percent of the world's undiscovered oil and 30 percent of its gas.

Relief ahead as NNPC deploys strategy to improve gas supply CHRIS OCHAYI

A

BUJA: The vandalism of pipelines that supply gas to the power ther mal stations across Nigeria is the new evil denying Nigerians steady electricity supply.

This trend is a major encumbrance for the Gas-toPower initiatives of the Federal Gover nment.

However, some government functionaries have since attributed the scenario to the handwork of the enemies of the government trying to sabotage its reforms agenda in the power sector Although, the tale of power supply in the country has been very pathetic and miserable, as the epileptic supply situation got worse over the years. Before thermal plants became the fad, the reason for the very low supply of electricity was hitherto attributed to the Kainji Dam and its turbines.

It was either that the water

level was too high or too low for the proper functioning of the turbines depending on the season of the year.

And even with the combined thermal and turbine stations, the power generation still remained in abysmal condition. The supply of electricity has dropped to an all-time low of less than 3,000 megawatts, MW serving Nigeria's 170 million population together with their domestic and industrial requirements estimated at a minimum of 40,000MW. The impact of the inefficiency of power ssector is overwhelming both the Federal Government and the stakeholders, especially the new investors the generation and distribution companies.

The development remains a big challenge for the management of the Nigeria National Petroleum Corporation, NNPC, which is charged with the responsibility of crude oil, gas and petroleum products pipelines administration in Nigeria.

The Corporation, in its

The supply of electricity has dropped to an all-time low of less than 3,000 megawatts, MW serving Nigeria's 170 million population together with their domestic and industrial requirements estimated at a minimum of 40,000MW determination to address the menace, recently deployed some mechanisms to frustrate activities of vandals, which it also blamed on saboteurs.

The Corporation adopted the use of Horizontal Directional Drilling, HDD technology, to bury crude oil and petroleum products pipelines across the country.

The technology, which is the latest in the industry, would bury the pipelines very deep below the surface.

Blaming vandals for the gas shortages, which resulted in the recent drop in electricity generation, the NNPC Group Managing Director, Mr Andrew Yakubu, said over 30 per cent of the installed gas supply capacity was out, as a result of vandalism.

He noted that the lost gas was the equivalent to the gas requirement to generate about 1,600MW of electricity, while about N800 million CONTINUES ON PAGE 13

According to the Ministry of Climate and Environment spokesman, Statoil had rejected Greenpeace's appeal and drilling could go ahead.

Greenpeace had argued that Statoil's drilling plans posed a threat to Bear Island, an uninhabited wildlife sanctuary that is home to rare species including polar bears, as an oil spill would be nearly impossible to clean up in the Arctic because of the harsh conditions.

Statoil rejected the claim saying there was a very low risk of an oil spill, and an extremely low risk of any spillage reaching Bear Island, about 170 km away from the drilling site. "Statoil is thus permitted to conduct the drilling operation as planned, including drilling in oilbearing layers.

Our top priority is to have safe operations without any harm to people or the environment."

Greenpeace, which calls Statoil an "Arctic aggressor", said it will continue to block the drilling site with its ship Esperanza after Norwegian police removed its seven protesters from Transocean's Spitsbergen rig, which arrived on Thursday.

"We will continue our legal occupation of the drilling site.

We have not received any request from authorities to leave, therefore we consider it to be legal," Greenpeace's Truls Gulowsen told Reuters.

Gas

13

Relief ahead as NNPC deploys strategy to improve gas supply

Mexico begins Sinaloa gas pipeline construction

M

Gas pipeline

CONTINUED FROM PAGE 12

was spent recently to repair damaged gas pipelines.

He listed the pipelines affected to include the Escravos-Warri stretch of the Escravos Lagos Pipeline System and the TransForcados crude pipeline.

But Yakubu assured that the completion of the Omoku and Alaoji NIPP power plants, will further boost generation capacity, as the plants have available gas feedstockupon their completion.

Companies tasked to end scarcity Meanwhile, the Minister of Power, Prof. Chinedu Nebo, has charged all gas companies operating in the country to find lasting solutions to the persistent shortage of the product to energise the power plants.

Nebo,who spoke at a forum aimed at identifying and resolving the causes of the incessant interruption of gas to the electricity plants, challenged stakeholders to regardpower issues as

national emergency.

He lamented that vandalism has only worsened t h e ex i s t i n g s i t u a t i o n , wherein government has been doing its best to ensure full utilisation of the nation's abundant gas resources.

Fu r t h e r m o r e , h e s a i d enormous resources are involved in the deployment of heavy duty equipment, adding that difficult terrain are some of reasons for delay in effecting repairs on the damaged pipelines.

While also blaming pipeline vandalism for the existing wide gap between the installed capacity and actual power generation, the minister said; “ we have the capacity to generate over 6,000MW but sadly we now produce a little over 4,000MW, this is not the case in other climes.”

Emphasizing the importance of energy in the socio economic life of the nation, Nebo said, “ we want the economy to be revamped, this magic can only be made manifest if we are able to

He therefore challenged stakeholders to brace-up to the unfortunate scenario created by the abysmal low-level of power generation when compared with countries like South Africa and Brazil produce enough power that will drive a double digit growth.”

He therefore challenged stakeholders to brace-up to the unfortunate scenario created by the abysmal lowlevel of power generation when compared with countries like South Africa and Brazil.

Prosecution of vandals The spate of vandalism, both of pipelines and electricity facilities has prompted the new power

investors to advocate for an anti-theft legislation to prosecute electricity vandals and customers who attack utility personnel.

The Managing Director and Chief Executive Officer of Enugu Electricity Distribution Company, Mr. Robert Dickerman, recently c a l l e d o n t h e Fe d e r a l Government to address the problems of inadequate gas supply to the plants and pipelines vandalism currently militating against power generation in the country.

exico has begun construction of the Topolobampo-El Encino natural gas pipeline in the northwestern state of Sinaloa that would contribute to the generation of cheaper electricity and feed a new fertilizer plant.

Disclosing this, the chief executive of state-owned utility, Ochoa Reza, said, the pipeline will diversify industry in Mexico's northwest, as well as create jobs and boost economic development in the region, said According to him, the pipeline will supply natural gas to a US$1bn fertilizer plant, the largest in Latin America, to be built in Topolobampo port, as reported by BNamericas earlier this month.

Switzerland-based petrochemicals company Proman Group will partner with Mexico's GPO to build the plant.

CFE and Gas y Petroquímica de Occidente signed an agreement to distribute the natural gas supplied by the new pipeline.

According to the energy ministry (Sener), said, Mexico will build 22 natural gas pipelines over the next 15 years to increase supply across the country as it strives to boost output to meet rising demand and to reduce prices, .

The first five pipelines will require an investment of US$2.5bn.Natural gas is used to generate 50% of Mexico's electricity and is expected to generate 75% by 2018, while demand is expected to grow 3% annually and consumption by the industrial sector is expected to rise 72%, Javier Estrada, Sener general director for energy planning, said last week at the BNamericas Energy Summit in Mexico City.

Gas pipeline

Power

14

Abuja at Night

Consumers decry increase in electricity tariff …'Govt should focus on improving power, not pricing’ MICHAEL EBOH, EDIRI EJOH & MAUREEN UMEH

C

ondemnations have trailed the F e d e r a l Government's decision to hike electricity tariff, as respondents who spoke with Sweetcrude lamented that instead of focusing on addressing the erratic power supply situation the government is more concer ned about increasingtariff.

The Government recently announced an increment in electricity tariff by 8.36 per cent, from N13.75 per unit to N14.90 per unit.

The new tariff regime became effective from June 1, asannounced bythe Chairman of the Nigerian Electricity Regulatory Commission NERC, Dr. Sam Amadi.

Some of the respondents argued that the increase is anti-people, a ploy to further defraud Nigerians, and worsen the poverty situation in the country.

One of the respondents, Mr. H e n r y O k e k e , a manufacturer of table water

said, “It is just like any other increment. It affects my production cost because the day to day business of the factory has a lot to do with electricity. In fact, when there is no electricity we do not work, so the increase in tariff has in turn affected our production sequence financially.

“The new tariff will negatively affect my business and it will bring about an increase in the price of my product. Instead of N50 per bag, it will now be N70, and I guess it will really affect the buyers.

Also speaking, Mr. Kingsley Amobi, said, “The new increase in electricity tariff will be very bad for business.

It will only be favourable to business if power is steady without any interruptions in supply, as it will help them save the money spent on diesel.

“Going by the present situation in the country, it will negatively affect businesses and the country in general. It will eventually lead to increases in the price of their products.

“It will also not be easy for many Nigerians especially the low-income earners, because the amount they will

pay for electricity will be automatically increased and that will really affect them.”

For Mrs. Elizabeth Michael, Chief Executive Officer, Trendy Plus, a fashion outfit, the increment should bring about an improvement in power supply otherwise, it will be unnecessary.

She said, “If the increase will bring about development and stability in the power supply, then I am okay with it. However, if there is no improvement in the service delivery of electricity, there is no way I would support that.

“Honestly, this is bad because throughout last week, we did not even have a single minute of electricity.

We had to depend of charcoal for ironing our clothes, and that is risky and stressful because you have to keep blowing to make sure it does not go off, and also while pressing the cloth, you have to be cautious so as not to pour the dust on the shirt.

“Also, we spend more of our profit on the purchase of kerosene and also fuel to power the generator in order to have electricity to carry out our duties.”

Also speaking, Mr Victor

If the increase will bring about development and stability in the power supply, then I am okay with it. However, if there is no improvement in the service delivery of electricity, there is no way I would support that

Odudu, owner of a frozen food shop at AlabaSuru, Lagos, said, “From the inception of privatisation till now, there has not been stability in billing and yet no improvement in power. I don't have any problem with them increasing tariff, but I wish it would provide us with stable power supply because my business has to do with fresh supply, otherwise, they would go bad and become useless.

“Also, everything that has to do with business needs electricity for better service delivery. As at last year, my total loss was about N500,000 worth of goods that got spoilt as a result of poor power supply, because our goods are

supposed to be fresh. While this year, I have lost over N125,000 worth of goods already.

“If you are to depend on fuel or diesel for four hours, you should be spending N5,000 and that is not economic.

Normally, it is unfair to pay for what you don't use.

“There was a period last year where we had constant power supply for over three months and the billing went slightly high but we did not complain about this because both were commensurate. If the tariff is increased, let there be a reasonable power supply. That is all I am asking for.”

Sue the government

Power

15

Nigeria gets first solar filling station

Solar filling station

SEBASTINE OBASI

F

illing stations in the country would no longer spend so much m o n e y o n generating sets and diesel to power their pumps, as Nigeria's first solar-powered filling station has been installed for Total Nigeria Plc. The 77.8kw roof top project pioneered by Emel Advanced Power Solution Ltd (EAPS), part of the Emel Group, and its partner Applied Solar Technologies (AST) of India, was installed at the newly refurbished Total filling station on Mobolaji BankAnthony way, Ikeja, Lagos.

The facility which is now operational is said to be the largest roof top solar system in Africa and the largest solar powered filling station for Total anywhere in Africa and the Middle-East.

Speaking on the project, Mr Alexis Vovk, the Managing Director, Total Nigeria Plc, said, “We are indeed proud to announce that this solar power system provides uninterrupted lighting from dusk to dawn. This will enable our station at Ikeja to provide better and more reliable ser vice to our customers as well as

improving operational efficiencies.”

He also said that by harnessing energy from the sun, the filling station expects to lower its electricity costs by at least 25 percent, as well as taking advantage of other benefits such as less dependence on diesel generators, less noise pollution and carbon emissions.

Also speaking, Mr. Roy Chatterjee, Managing Director for Emel Advanced Power Solution Ltd (EAPS) stated that the successful installation of the solar

powered system reiterates E m e l , A S T & To t a l ' s commitment towards environmental sustainability and its focus on renewable energy resources.

He said, “EAPS and its partner AST are committed to being a leader in the industry and we are excited to be on the frontline of the renewable energy movement with this project.

Through our partnership with Total & AST, we have set an example as to what can be accomplished when local and multinational companies work in unison.”

He added that EAPS' goal was to address many of the country's energy and infrastructural needs at the c o m m u n i t y, s t a t e a n d national levels. “This new solar powered station is a step away from fossil fuels, and as a nation, that is a path we need to continue to explore.

We believe one of the answers to the energy needs of the nation is solar and Nigeria as a country should continue to evolve a variety of alternative energy options,” he said.

Chatterjee called on corporate organisations in the country to partner with EAPS

& AST to make Lagos the solar capital of Nigeria, by being a role model and utilizing solar applications for their organisations and funding solar solutions on behalf of their communities.

Mr. Sanjay Deshmukh, President International for Applied Solar Technologies India P Ltd (AST), said “AST will bring all its experience to the country and help its venture with EAPS to grow at a rapid pace. This will go a long way in helping Nigeria harness the immense solar potential, economically.”

More South Pars facilities head to Persian Gulf

I

nstallation should be completed by mid-June of the remaining jackets for the gas production platforms for phases 22 and 24 of the South Pars field in the Persian Gulf.

Q o b a d C h o o b d a r, chairman of Iran Marine Industrial Co. (SADRA), told news service Shana that remaining sections of the platforms would be connected by next March.

Phases 22 and 24 will produce 56.6 MMcm/d of sour gas and 75,000 b/d of gas condensate.

Another Shana report said gas production capacity from South Pars Phase 12 is expected to reach 1 bcf/d (28 MMcm/d) next month.

Production of sour gas from platform A will rise from its current level of 500 MMcf/d, while over the next two weeks the B and C platforms will be ready for transportation to the site for installation. Once they are operational, sour gas production from Phase 12 could reach 2.5-3 bcf/d.

As for phases 15 and 16, drilling, per foration, and primary acidizing work has been completed in 22 wells.

Seyyed Mostafa Khoei, managing director of Dana Energy, said acidizing in four remaining wells will continue after installation of the related platforms.

Average depth of wells is 3,200 m (10,498 ft), and each has taken around 75 days to drill.

BP and Chevron, two of the corporations that are doing the most to toast the climate, bleat at us in costly advertisements about their meager efforts to harness renewable energy. But now even their modest renewable programs are being quietly dismantled.

“Renewable energy is vital to our planet,” Chevron helpfully reminded us in one of its insincere “We Agree” ads. “At Chevron, we're investing millions in solar and biofuel technologies.”

(Millions! From a company that made $21.4 billion in profits last year.) Beyond the marketing hype, here's an injection of reality from Bloomberg's Businessweek: In January, employees of Chevron's renewable power group, whose mission was to launch large, profitable clean-energy projects, dined at San Francisco's trendy

F

Focus

16

Emeka Okwuosa, an engineer, is the Executive Chairman of the Oilserv Group, two oil services companies, and one of the pioneers of indigenisation in the Nigeria’s oil and gas i n d u s t r y. H e s p o k e t o journalists in Houston Texas on a number of industry issues including local content development and the Group’s role in the scheme of things.

Sweetcrude’s Clara Nwachukwu and Sebastine Obasi, were there. Excerpts:

Nigerians can excel if given the opportunity

Looking back to when you started and now, how would you describe the journey so far? Second, how do Oilserv and Frazimex complement each other’s works?

I run Oilserv Limited and Frazimex Limited, which have other sub-companies around them. It is a group of companies that are tailored towards the service of the oil and gas industry as well as exploration and production of oil and gas resources. These two companies grew up organically on the basis of my personal vision regarding the development of the industry in Nigeria; following the experiences I had working internationally close to 11 years for Schlumberger Overseas.

From 1993, when I came back, I made up my mind based on the experience I had that things will have to change in Nigeria. In conjunction with my colleagues, we started the Pe t r o l e u m Te c h n o l o g y Association of Nigeria, P E TA N , w i t h t h e s o l e purpose of developing capacity in oil and gas extraction, from service provision to exploration and production.

The good story is that after 20 years, we can beat our chests and say we have actually been able to achieve a lot. But we have not gotten there yet, because the target is still far away. If we hear about local content as a law today, some of us may not know that it took us 20 years fighting for this.

After the first 15 years, NNPC did a good job of setting up a sub-division within its group. Again, luckily and incidentally, the Group General Manager of the Division at that time was the same Ernest Nwapa. That is why when you see Nwapa today, his position in the

Nigerian Content Development and Monitoring Board, NCDMB, gives all of us joy because you see an individual who understands what the issues are, who was involved from the beginning in getting to where we are today. That gives him the background and opportunity to be able to drive the process, because it is not about us as individuals, but how we can create opportunities in Nigeria for the future of the country.

When we talk about the future of the country, it is not a political statement; we are talking of how we as individuals can impact on the system to ensure that the extraction of oil and gas is done in a manner that would retain most of the values in Nigeria.

Moving forward, Oilserv that is purely engineering, procurement and construction, EPC company in land, swamp and offshore terrains has great c a p a b i l i t i e s . We b u i l d pipelines, flow lines and facilities associated with these pipelines; from manifold stations, pigging stations, metering stations and others. The capacity we have today is similar to what Wilbros had when it had monopoly in the country. Our capabilities include intricate jobs like river crossing, traversing difficult terrains, making repairs, quick interventions and rehabilitation of major trunk lines. I can tell you today that by the scope of the work Oilserv by far surpasses what Wilbros used to do.

You can look at these and give the credit not to us but to the drive by Nigerians, because when you talk about Oilserv, we are not just doing challenging jobs but also building capacity and training. I can tell you that all

—Okwuosa

Okwuosa

The good story is that after 20 years, we can beat our chests and say we have actually been able to achieve a lot. But we have not gotten there yet, because the target is still far away. If we hear about local content as a law today, some of us may not know that it took us 20 years fighting for this the people working in Oilserv today are Nigerians.

Some of these individuals left universities in the 1990s and early 2000s and came in as fresh graduates. Today, some of them are general managers, some managers.

You can see that Nigerians can do it if given the opportunity, but you need to be trained. Nobody should be asking to be spoon-fed. What

we are talking about is building a credible capacity that can stand the test of time, and be able to develop economic activity around it to such an extent that we can actually deliver these jobs elsewhere. Today, we deliver services outside Nigeria. We move into other countries as expatriate companies.

Nobody would have thought

about this 20 years ago.

N o w, F r a z i m e x i s specifically on engineering design from feasibility studies, front end engineering and detailed engineering. Frazimex is also involved in gas development.

You hear about gas to power.

Today, gas is the key in terms of capacity building in the N i g e r i a n e c o n o m y. I f Nigerians can articulate and be in position, which I think they are, to seriously go on to implement the Gas Master Plan, GMP, beyond the original ideas, make gas available all over Nigeria, then you would see that with energy available, it is possible to have things like power generation made easy.

If we have power generation and distribution right in Nigeria, the country will change entirely.

What people fail to understand also is that gas is CONTINUES ON PAGE 17

Focus

17

Nigerians can excel if given the opportunity CONTINUED FROM PAGE 16

related to our ability to feed ourselves. Gas is the main source of urea production.

When we talk about urea, we talk of fertilizer. The fertilizer that you apply to good yields in agriculture comes from urea. Unfortunately, the only fertilizer plant we have in Nigeria is the one built over 30 years ago which is now owned by Notore. How come a country with so much gas resource have only one fertilizer plant? I know that some quantity of fertilizer out of the total need is still being imported into the country.

Meanwhile, we sell our gas as LNG, then countries that buy gas would go and produce fertilizer and sell to us.

Just like the same story about refined petroleum products; does it make sense to have crude oil and you cannot refine it? You sell the crude, provide jobs for people somewhere else, where they have refineries and they come back and sell to you sub-standard petroleum products. And you have no control over the quality.

Obviously, these are the issues we have to address and in addressing them, what we are doing in our own little way is to continue building capacity in our own field in such a way as to be able to make a difference in our country.

What syner gy exists internally between Oilserv and Frazimex and how has that yielded growth value to the companies? Is Oilserve going into gas or fertilizer (i.e. petrochemicals), and If you are, what plans have you put in place to achieve these?

If you are also going into exploration and production, are we expecting an Oilserve that will replicate or surpass what Seplat is already doing?

On the relationship b e t w e e n Fr a z i m ex a n d Oilserv, I would like to clarify that one part of Frazimex manages and handles engineering design and feasibility. You have the other aspect of gas development and power. You have another aspect also that manages exploration and production portfolio.

For Oilserv, which is purely an EPC company, the synergy there is that it retains the

Okwuosa main value of the EPC. But when we bid and get EPC projects, which means it covers from engineering all the way to commissioning; Fr a z i m ex c o m e s i n t o manage the engineering aspect for the Group. Bear in mind that Frazimex is a

engineering services as part of the total package. Where it works very well is that in a typical project where Frazimex might be involved in engineering services, it gives Oilser v a better opportunity to go in and explore interests in the EPC

The fertilizer that you apply to good yields in agriculture comes from urea. Unfortunately, the only fertilizer plant we have in Nigeria is the one built over 30 years ago which is now owned by Notore

stand-alone company, which means that it tenders and gets jobs revolving around engineering alone and then can work for any other company to provide

stage of the same job. That is one aspect of the link. But like I stated, Frazimex is a stand-alone company. It can provide its services to any other company including our

competitors. As I speak to you, Frazimex is handling engineering scope of a job by one of our competitors. That does not stop Frazimex from working for us as a group.

On production of oil and gas products, it is a matter of opportunity. It is also a matter of strategy. And we do not have the strategy to go and start up a fertilizer company today because that is not within our immediate operational scope. Together with other companies we can as an entity, but we cannot go it alone because it is not in our strategic plan. That is a complete business of its own.

When I talk about gas development, it goes from extracting gas, whether associated or non-associated gas, and being able to create values from them. And how do you create values? It is about separating the high Cs from the low Cs. By the time you take the high Cs, you have propane, you have butane and even the liquids. Take them (that is the liquids) out, you create value, which is liquefied petroleum gas, LPG. Then the low C, which is the methane, is the one you put on the pipeline to be used to power generators and all that.

The process of extraction of the high Cs is a major business on its own. It is actually the methane that you get that you can now use for petrochemicals. There is a value created there even before you get to the petrochemical level; that is where we are mostly involved in.

Another involvement we have is development of capacity for power. When you talk about giving gas to power plants, the most common is to lay pipelines to channel the gas. You may not be able to do that in some areas because you have remote plants where you have no availability of pipelines. So if you have a 20 megawatts plant and you start running a 200-kilometre pipeline to it, it is not going to work because the cost is not worth it. What you do is to look for alternative sources of getting the gas, either as compressed natural gas, CNG, or liquefied natural gas, LNG. In the world of today, we have micro and mini LNGs. Instead of having the huge LNG we have in Bonny, you can build low capacity LNGs that you can transport in

trucks. The technology is there. And these are the areas we are working to put things together to meet the challenge of gas-to-power requirement in Nigeria.

In view of the peculiar vandalism challenges in gas supply, is it possible to use LNG in closing the range between production centres and consumption centres? Is it not possible to set up an LNG plant in a place like Lagos to supply gas to the power plants? Also, your company was one of the companies awarded the East-West pipeline, what is the status of that project, what are the challenges and how soon do we expect its completion?

The use of LNG and investment on gas supply alternatives are all commercial issues. If it is commercially okay and can be funded, it can be done. If it is not commercially okay and cannot be funded, it cannot be done; it is not based on technicalities at all.

It is possible to go and set up a re-gasification system, where you buy LNG, regasify and pipe, but it is not worth the cost in Nigeria because we have the gas already. All we need to do is pipe it where we want to use it than to build a regasification plant. That means that you sell your gas as LNG and import another LNG back, re-gasify and pipe all in the name of averting pipeline vandalism. All the challenges of pipeline in Nigeria are superficial and transient. All it takes is for the country to have a proper master plan and execute it in a way it makes sense. There is no difficulty in building pipelines; it is a matter of how we go about it. Building a re-gasification plant is not commercial enough to make it workable.

We have a lot of gas offshore, if the country decides to harness the gas, it is a policy issue. NNPC will t a ke i t , t a l k w i t h t h e international oil companies, IOCs, and strike a commercial arrangement whereby the IOCs will extract proper values from their gas, whereas government will create the right environment to be able to utilise this gas in a way that it is commercially attractive.

Technology

18

E-mail: Jimlaw2004@gmail.com, 08027181717

Jim-Rex Lawson MOSES

E

xperts say that in the oil and gas industry, the invested c a p i t a l declines in value unless the machinery is properly maintained since this will ensure efficient and effective utilisation of installed machinery and production capacity of facilities. Lack of systematic maintenance of modern equipment, often leads to machinery breakdown and loss of production time.

Industries should therefore find valuable time and capital to develop competence and know-how for repairing equipment on site, while at the same time saving foreign exchange and improving production figures. One of such major problems facing the industry is corrosion and wear of machinery parts in the offshore drilling business.

In response to such challenges, and as part of contributions and efforts by indigenous companies to create an enduring environment for the growth of the oil and gas sector in N i g e r i a , Tr i c o n t i n e n t a l Technologies has made a giant stride through its technological initiatives to eliminate downtime is this sector.

Tricontinental Technologies Limited, a division of the Tricontinental Group offers services in maintenance, repairs and restoration, corrosion control, plant integrity enhancement, plant constr uction, plant and facility inspection, subsea engineering, pipeline technology, project and quality management among others.

The Managing Director and Chief Executive Officer of the Company, Prof. Toyin Ashiru, who stated that the potentials in the Nigerian oil and gas industry was yet to be tapped, said the Company was positioned to diversify into different areas of the nation’s oil economy so as to create employment opportunities for many Nigerians.

“We help to extend lives of the equipments, pipelines and facilities used in the oil and gas industry by providing proper maintenance services including design, building and inspection and also in the area of project quality

The Dalic process

Group unveils technology for repair of industrial parts management for the oil and gas sector. We also ensure that the contractors provide the best possible services that would extend the lifeline of equipment and facilities in the oil industry for years and also to avoid plant shutdown; he added.

He disclosed that the group had about four technologies for repairing industrial components in the oil and gas industry. Among them is the DALIC selective process, which he said, was a form of electroplating which repairs damaged components in a plant.

DALIC selective electroplating he further explained, had useful applications in the oil and gas exploration and production operations.

According to him, offshore oil

and gas platforms are subjected to hostile corrosive marine environments, which he said require continuous preventive and corrective maintenance to ensure prolonged and safe operations.

The Managing Director said that ball valves with corrosion damages on the sealing surfaces of the housing units can be repaired by the DALIC process ‘on site’ on gas platforms so that you don’t have to take it abroad for repair which according to him was a lot of savings.

Ashiru commended the vision of the chairman and founder of the group, Chief Olabintan Famutimi, acknowledging the tremendous support he still gives which has enabled the Group to take the giant

strides it has done achieved in the industry.

Tricontinental Group which began operation in 1997 as Tricontinental Oil Services Limited in Nigeria, the Managing Director revealed had expanded into multiple business units such as engineering, constructions, development options internationally providing products and services to oil and gas, marine and power generation.

He said that the Group was made up of other companies including Tricontinental Oil Services Limited, Tr i c o n t i n e n t a l Tr i n i d a d L i m i t e d , Tr i c o n t i n e n t a l Te c h n o l o g i e s L i m i t e d , Tricontinental Academy, Tr i c o n t i n e n t a l E n e r g y System, Tricontinental Eagle and Tricontinental Ghana

Limited.

Tricontinental Group, Toyin informed, partnered Eagle Solutions Providers which has its headquarter in Atlanta Georgia in US to provide international services including design, building management services to the energy sector, transportation networks as well as improving and maintenance facilities and equipment for industries.

W H AT I S DA L I C TECHNOLOGY? DALIC Technology is a mobile system for adding metal to metal. The process is, in fact, a special type of metalizing but with far better adhesion, less porosity and more precise thickness CONTINUES ON PAGE 19

Technology

19

Group unveils technology for repair of industrial parts CONTINUED FROM PAGE 18

control than spray, flame, or plasma types of metalizing or welding techniques, no heat is generated. Therefore, no internal stresses are imparted to the part. The end result is the user is concerned with neither thermal distortion nor cracking.

DALIC Technology works like an arc welder. A DC power pack has two flexible leads, one going to the work

at the rate of 0.05mm per minute.

WHERE IS THE DALIC TECHNOLOGY USED? Anywhere industry needs metal build-up for repair, resizing, metal restoration, or replacement coatings for mechanical, electrical, or corrosion resistant properties. DALIC installations are now used in service world-wide in Aircraft overhaul; Marine

six months of application. A D A L I C Te c h n o l o g y installation is possibly the most cost effective capital equipment any company will ever purchase.

W H AT A R E T H E CHARACTERISTICS OF DALIC’S DEPOSITS? First and foremost an excellent bond, in contrast to spray type metalizing where a mechanical bond is achieved, the DALIC

these connectors suffer galling due to a combination of extreme tensional and compressional forces. The galling of the threads of the connectors is at best a nuisance resulting in a leak, but at worst a disaster as the pipe and connector weld together causing expensive time wasting and the loss of pipe lengths and connectors.

In order solve the problem, DALIC process is now used for copper plating of the

The Dalic process

and the other connecting to one of a number of working tools “styli”. Anodes of different sizes and shapes (round, flat, concave, and convex) are connected to the end of the styli. The anodes are wrapped with an absorbent material. The covered anodes are dipped into the DALIC solutions or the solutions are flow-fed to the area when mechanized operations are used. A positive (+) connection from the DC power pack is connected to the work tool and the negative (-) is connected to the work piece.

An electrical circuit is completed either when the wrapped tool is moved over the metal work piece or by moving the work piece under the wrapped tool. With the completion of this electrical circuit, metal deposits from the liquid solutions onto the base metal. The deposition rate is very rapid, often times

maintenance; Offshore oil drilling; Plastic, Rubber, or Glass moulding; calendaring; Offset & Gravure printing; Power generation and Turbine r e p a i r ; R a i l w a y maintenance.

HOW MANY COATINGS MAY BE APPLIED? Over 100 primary metals or binary or territory alloys can be deposited with the DALIC Technology. Examples are: Babbitt, Cadmium LHE, Copper, Cobalt, Gold, Lead, Lead-Tin, Nickel, NickelTungsten, Rhodium, Silver, Tin, Tin-Indium, Zinc. The end-user ’s application governs which coating is selected.

WHAT IS THE COST JUSTIFICATION FOR THE DALIC TECHNOLOGY? Most DALIC customers save the cost of their DALIC installation within the first

Technology results in a molecular bond. This bond is achieved on any base metal such as aluminum, cast iron, cast steel, stainless steel, tool steels, chrome, beryllium copper, brass, or bronze.

connectors’ threads to prevent galling. This also improves the sealing qualities of the connector which must be gas tight. In addition it ensures easy separation of the connector when required.

APPLICATIONS Oil and Gas Offshore oil and gas platforms are subjected to hostile, corrosive marine environments and require continuous preventive and corrective maintenance to ensure prolonged and safe operations. The corrosion and wear of machinery parts are the most expensive problems in the offshore drilling business. Ball valves with corrosion damages on sealing-sur faces in the housing units, were repaired

by DALIC process “on site” on a gas platforms.

Millions of premium pipes and couplings are used in oil fields every year. Many of

Aircraft Overhaul Aircraft maintenance provided one of the earliest industrial areas where selective plating proved successful. Initial applications were primarily for corrosion resistance, since there existed a need for a cadmium plating in situ without having to disassemble parts, and then send them through bath plating and a baking cycle for embrittlement relief. Bath plating imparts hydrogen embrittlement into ultra high-strength steels ranging from 140.6 x 106 kg/m2 to 214 x 106 kg/m2. Plated components made of these

steels always require supplemental baking for embrittlement relief.

Another area of development for aircraft finishing was for the instrument and accessories shop where high-speed rotary equipment, susceptible to vibration and fretting and galling corrosion, often required very minute amounts of metal build-up to get a tight bearing fit. Such parts are now rotated in a lathe or turning head, while the aid of the bearing support is resized with small amounts of nickel, usually less than 13µ (0.5 x 10-3 in) in a side. Once final dimensions have been checked and approved, a thin deposit of tin is put down, so that the bearing can be pressed or shrink fitted, with a completely round fit (rather than a three or four point fit) resulting. With an average plating time of 20 minutes, extensive masking and two machining operations are eliminated.

Another major problem has been the corrosion pitting of landing-gear main cylinders.

Such pits have been filled and smoothed back to restore original contours. Fill materials include nickel, copper, and even tin.

High-speed rotary equipment is susceptible to vibration, with resulting fretting and galling corrosion and loosening of bearings in their housing or settings. The problem is quite costly, since a single aircraft may have as many as 100 servo motors and rotary machines, many of them vital to the safety of the aircraft. EMS provides a particularly good repair method here, since very minute amounts of metal build-up are needed to get a tight bearing fit.

Marine, Naval and Shipboard Applications The electrochemical metalizing process have found a large number of applications in U.S. Naval Shipp-yards, and their maintenance shops have reported savings in the millions of dollars.

Extensive wear occurs on the bearing cap face and saddle areas of Packard aluminum diesel engine cylinder blocks on minesweepers such as the Naval Ship.

Labour

20

Michael EBOH

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e s p i t e accounting for about 70 per cent of Nigeria’s revenue, the oil and gas sector was the least employer of labour in Nigeria in 2013, data released by the National Bureau of Statistics has revealed.

According to the NBS Job Creation Survey Report for the first, second, third and fourth quarters of 2013, out of the 10.97 million employed in 2013, the oil and gas sector, which it described as the crude petroleum and natural gas sector accounted for 582 jobs, representing 0.01 per cent of the total.

The NBS report noted that in the fourth quarter of 2013, the sector recorded 202 out of 2.779 million employees in the quarter, while 186 employees were recorded in the third quarter, out of 2.781 million in the quarter.

In the second quarter of 2013, 194 employees were recorded, representing 0.01 per cent of the 2.795 million jobs recorded in the economy in the period, while no data was obtained for the sector in the first quarter.

The education sector accounted for majority of the employment recorded in the economy in 2013, with 5.59 million jobs, representing 50.96 per cent of the 10.97 million recorded in the year.

In the first quarter of 2013, the education sector had 1.508 million jobs; in the second quarter, the sector recorded 1.358 million jobs; in the third quarter, 1.365 million jobs were recorded, while 1.36 million jobs were recorded by the sector in the fourth quarter.

Giving a breakdown of the figures, the NBS said a total of 2.616 million persons were employed across the sectors and sexes during the first quarter with 1.648 million males and 967,707 females.

Continuing it said, “A total of 2.79 million persons were employed on full time and part time in the second quarter, 2013 for all Cadres.

A total of 2.78 million persons were employed in third quarter 2013, of which 1.656 million (59.54 per cent) were males while 1.12 million (40.46 per cent) were females.

“A total of 2.779 million

Oil workers

Unemployment: Oil sector employs 0.01% of Nigerian workforce persons were employed in fourth quarter 2013, of which 1.658 million persons representing 59.65 per cent were males and 1.632 million were females representing 40.35 per cent.”

The NBS further stated that Nigeria, just like many other countries, is facing serious problem of unemployment as a result of increase in population, and expanding a d m i s s i o n o f students/candidates into tertiary institutions over years that results to large turnout of graduates without corresponding to available jobs.

According to the statistics agency, unemployment has become a serious challenge for every successive government that has ruled the nation since 1990; with each embarking on policies they believed could reduce the rate substantially but with little result to show for it.

The NBS further noted that the needed turn-around from unemployment to employment, wealth creation can be attained through the transformation policy and implementation.

It stated further that, “It is worth noting that Government cannot be the

only source of employment to the increasing population.

The diversification of the economy in agriculture, industries and service sectors could enhance job creation and reduce unemployment in the country.

“When there is stability in power sector, human capital development, revamping of textile industries in the country, establishment of other industries that will make use of the output of agriculture sector to be their inputs and converting them to other manufacturing products will certainly bring about more new employment

in the country.”

The NBS said the survey was carried out in all the 36 states of the Federation and the Federal Capital Territory (FCT) Abuja.

“The ultimate sampling units (households) at both urban and rural areas were sampled through the Enumeration Areas (EAs) using scientific methods.

Fo r m a l e s t a b l i s h m e n t s employing 10 persons and above including professional services that employ less than 10 persons but highly formalised were also canvassed,” it said.

Labour

21

Labour unions move against O hike in electricity tariff Victor AHIUMA-YOUNG

RGANISED labour has m o v e d against the n e w electricity tariff that commenced June 1, 2014, describing the hike as antipeople and anti-labour.

Trade Union Congress of Nigeria, TUC; Nigeria Labour Congress, NLC; National Electricity Employees, NUEE; and the National Union of Textile, Garment, Tailoring Workers of Nigeria, NUTGTWN, insist that the income of the average Nigerian cannot accommodate the extra cost of living that any increase in price of power would provoke.

The Federal Government through the Chairman of the Nigerian Electricity Regulator y Commission NERC, Mr. Sam Amadi, recently announced an increment in electricity tariff by 8.36 per cent, from N13.75 per unit to N14.90 per unit.

Reacting to the hike, TUC in a statement by its President and Secretary General, Bobboi Bala Kaigama and Musa Lawal, respectively, said, “TUC received with dismay the recent announcement by the Nigerian Electricity Regulatory Commission to increase electricity tariff from 1st of June, 2014. To us the move is queer and uncalled for and another deliberate attempt by some cabal to further exploit the already impoverished masses of the country, especially as the power supply and distribution situation has remained comatose even after the privatisation of the sector, contrary to the federal government’s promise to tackle the inherent challenges.

“We find it indefensible that the Government has apparently concluded plans to increase the tariffs instead of prevailing on private sector electricity providers to increase power supply and distribution in the country.

Need we remind ourselves of the demise of many industries within the last few years? Need we list out the multitude of companies that have either gone under or fled the country because of high cost of generating power for their plants? Or shall we tender statistics of the millions of Nigerians who are jobless and many of whom have taken to vices that create insecurity in our

Electricity workers

It is, therefore, clear that the private sector investors have not performed any miracle to improve electricity supply; instead they are bent on imposing higher tariff on helpless Nigerians who are already paying exorbitant bills for power they do not consume

land? We are particularly galled by the fact that although the power sector has gulped billions of naira, the country still appears hopelessly trapped in a vicious circle of unproductivity and lack of adequate power supply, essentially because of the insincerity and corrupt practices of our leaders.

“NERC recently announced that electricity cost will increase by N1 per kilowatt for customers in R2 category from next month, and that the electricity Fixed Charge (FC) which was to rise to N1,500 from 1st June in the Multi-Year Tariff Order (MYTO) for 2014 will remain

at N750 for some customers.

We were further told that some positive variables triggered the significant changes in the proposed tariff regime. For instance, whilst MYTO in 2012 had projected a 13 percent inflation rate, it was at 7.8 percent by March 30, a difference of 5.2 percent. Also, exchange rate of $1 to N178 from CBN data was 11.6 percent less than the projected, at N157.30 per $1 as at 30th March.”

According to TUC, “The truth of the matter is that most Nigerians are indifferent to all these terms. All they desire is stable and affordable power supply. Incidentally, since 1st November, 2013

when the defunct Power Holding Company of Nigeria (PHCN) was ceded to 18 successor firms, electricity generation in the country has revolved around 3,000mw.

Indeed power generation dropped from 4,105mw in April, to 3,674mw as at 24th May, 2014, according to the Daily Operational Report of the Transmission Company of Nigeria. It is, therefore, clear that the private sector investors have not performed any miracle to improve electricity supply; instead they are bent on imposing higher tariff on helpless Nigerians who are already paying exorbitant bills for power they do not consume.

In the circumstance, we advise the commission not to contemplate any increment in electricity tariff until there is appreciable stability in the sector across the country.

“By encouraging the private investors to increase tariff for electricity that is not being supplied, the Government is lending credence to the belief in some quarters that these so-called Private Companies were floated by the political elite to further impoverish the Nigerian people. We demand that NERC jettisons this hike or risk incurring the wrath of workers and other Nigerians.

The new tariff hike is antipeople and anti-labour. We therefore call on the management of the power firms and their regulator to have a rethink about it. The income of the average N i g e r i a n c a n n o t accommodate the extra cost of living that any increase in price of power would provoke. Neither can the social fabric withstand the negative fallouts of such illadvised action. Those who have ears let them hear.”

TUC called “on all Nigerian workers and other Nigerians to gird their loins in readiness to resist the planned increase if the Government attempts to implement.”

Also speaking, the President of NLC, Abdulwaheed Omar, said, “We have followed with keen interest the reform process in the energy sector which culminated in the sale of the power stations and related assets. The reform was premised on a profound improvement in service d e l i v e r y. R e m a r k a b l y, however, service delivery has plummeted, throwing the nation into darkness and raising further the cost of living and of doing business.”

Finance

22

From left: Director, Mobil Oil Nigeria Plc, Engr. Mrs. Mayen Adetiba; Company Secretary, Mr. Emmanuel Amade; Chairman/ Managing Director; Mr. Adetunji Oyebaji; Manager, Public and Government Affairs, Mr. Akin Fatunke and Director, Mr. Adastair Macnaughton during the Annual General Meeting of the Company in Lagos.

Rosemary ONUOHA

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a v e r t o n Offshore S u p p o r t Group, a provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has won a two-year contract e x t e n s i o n w i t h To t a l Exploration and Production Nigeria Limited.

The feat is coming on the heels of its recent listing on the Nigerian Stock Exchange (NSE).

The company is also expecting a brand new AW139 helicopter which will be devoted to its long-term contract with the Shell Petroleum Development Company, SPDC. The company listed its 3.35 billion shares on the Nigerian bourse, making history as the first Nigerian oil services company to go public and increasing market capitalization by N31.8 billion.

It will be recalled that the Shell contract, valued at $648 million, is the biggest ever awarded to an indigenous company by the oil giant. The Shell contract opened the floodgate for Caverton, with more contracts pouring in from other oil majors such as

Caverton’s contracts from Total attract 2yr extension Chevron, ExxonMobil, Total and Addax Petroleum.

In 2013, the company commenced its first international operation after it won the contract to provide passenger transfer and pipeline surveillance services to the Cameroon Oil Tr a n s p o r t C o m p a n y (COTCO), a subsidiary of ExxonMobil.

The expected aircraft was manufactured in Italy and is pre-equipped with the Forward Looking Infra-Red (FLIR) camera, which allows airborne pipeline surveillance to be carried out and images streamed in real time to base stations. It also has thermal imaging systems which are used for surveillance and threat detection.

The Caverton team was at Agusta Westland’s factory early this month to inspect the aircraft and to ensure that it fully complies with the

latest stringent requirements in terms of performance, safety and operational specifications. The aircraft is ex p e c t e d t o c o m m e n c e

Cocoa processors seek govt. Support

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ocoa Processors Association of Nigeria has beckoned on the federal government to financially support the industry in becoming competitive in the world market.

In an interview with Felix Oladunjoye, chief executive of the Cocoa

Processors Association of Nigeria, he said, “Cocoa processors are working with the federal government to obtain regular cash payment under an export grant”. As the association also want the government to help boost consumption of locally grown beans.

“Since we don’t consume

operations before end of next month.

In addition to its listing on the Nigerian Stock Exchange, Caverton Offshore Support Group announced its full year 2013 results which showed revenue increasing by 16% to N18.7 billion from N16.1 billion in the previous year, primarily driven by contributions from contracts from international oil companies.

EBITDA (Earnings Before Interest, Ta x , D e p r e c i a t i o n a n d Amortization) went up by 32% to N5.9 billion from N4.5 billion in Dec 2012 while the company’s net income rose by 40% to N1.9 billion from N1.4billion the previous year.

here, the foreign buyers dictate our price which is often unfavourable,” Oladunjoye said. “That will change if we can sell locally.”

Nigerian cocoa p r o c e s s o r s a r e uncomp e t i t i ve i n t he i n t e r n a t i o n a l m a r ke t , Oladunjoye said. An export program started in 1984 worked until about eight years ago when the payments became “irregular,” he said.

Solid Mineral

23 Steel firms call for anti-dumping duties in Egypt

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Front loaders and dump trucks operate at Vale SA's Brucutu mine in Barao de Cocais, Brazil

Iron ore heads for record losing streak on growing supply

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ron ore capped a sixth monthly drop in the longest losing run on record as rising supplies from Australia and Brazil spur a global glut. Fortescue Metals Group Ltd. (FMG) said there could be further losses, with a risk prices may retreat to the lowest level since 2009.

Ore with 62 percent content delivered to Tianjin tumbled 4.1 percent to $91.80 a dry ton, the lowest level in 20 months, according to data from The Steel Index Ltd. today. The steel-making raw material sank 12.9 percent in May, and has dropped every month since December in the longest run of monthly losses

since the data series began in November 2008.

Iron ore entered a bear market in March as the biggest miners including BHP Billiton Ltd. (BHP) and Rio Tinto Group (RIO) raised output, spurring forecasts for a rising global surplus.

Slowing growth and tight credit conditions in China have restricted the expansion of demand in the world’s largest user. The price drop validates a forecast from Goldman Sachs Group Inc. in November that the commodity would see a significant decline in 2014.

“We think it is mainly a supply story,” Christian Lelong, an analyst at

Goldman Sachs in Sydney, said in an e-mail yesterday in response to questions from Bloomberg. “Demand is clearly growing at a slower pace, but supply growth is particularly strong after years of overinvestment.”

Iron ore may drop to as low as $80 over the next 12 months, Fortescue Chairman Andrew For rest told a conference in Melbourne t o d a y. T h e b e n c h m a r k tracked by The Steel Index last traded below $80 in September 2009.

“I’m pretty comfortable with the iron ore price oscillating around the $110 mark,” said Forrest, who heads Australia’s third-

largest shipper. “I think it could wander down to $80, it could wander up to $140.”

The raw material has lost 32 percent this year compared with the 3.1 percent advance for the Standard & Poor’s GSCI Spot Index of 24 commodities and 3.1 percent gain for the MSCI World Index of equities.

Rio shares declined as much as 3.1 percent to 3,090 pence in London, the lowest level since Jan. 10, and traded at 3,100.50 at 12:50 p.m. in London. Stock in BHP retreated 2.2 percent to 1,899.50 pence.

Iron ore will average $109 a ton in 2014 and $80 next year, Goldman forecasts. So far in 2014, it’s averaged $116. The bank boosted its estimate for next year’s surplus to 175 million tons from 145 million tons in a May 20 report.

The worldwide seaborne surplus will increase to 79 million tons this year and 158 million tons in 2015 from last year’s 1 million tons, Morgan Stanley said in a report on May 26. Global supplies will expand 10 percent in 2014, outstripping the 3.7 percent rise in demand, according to the bank.

Gross domestic product in China, the world’s largest steelmaker, will grow 7.3 percent this year, according to a Bloomberg survey.

gypt needs to impose antidumping duties to protect power-hungr y industries including steel if the government reduces energy subsidies, one of its top steelmakers said.

Energy subsidies are one of the most explosive issues facing Egypt’s former army chief, Abdel Fattah al-Sisi, whose victor y in the presidential vote will put a military man back in power in Egypt after the brief hiatus of Islamist control.

Cuts to energy subsidies, which account for 13 percent of the state budget, are seen as necessary by leading business figures to repair government finances.

But some are now saying they would need other protective measures if energy costs rise.

“I am pro cutting subsidies,” said Ahmed Abou Hashima, chief executive of Egyptian Steel, which expects to be the country ’s No. 2 steelmaker by end-2015.

“The government has no money. We know this and we can make compromises, but at the same time Egypt must protect industry in order to attract investors,” he added in a phone interview.

Egyptian Steel has recently raised 5.2 billion Egyptian pounds ($727.25 million) from existing shareholders and loans from Egyptian banks.

It plans to use the money to expand annual production capacity to 3.5 million tonnes by end-2015 from 355,000 tonnes at end-2013, and to double the workforce to 5,000 people.

The IMF estimates that Egypt’s energy subsidies amount to seven times what it is spending on healthcare. A clear move to cut subsidies could restore confidence among investors, who have viewed successive governments as indecisive.

This investment, if it is directed towards the energy sector, could in turn stem the country ’s blackouts.

Solid Mineral

24

Copper Set for Second Straight Monthly Gain on Supply

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Coal mining activities

Japan steelmakers weigh action to stem flood of imports

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a p a n e s e steelmakers , which yesterday reported foreign imports at a nineyear high for April, are weighing action to stem the flow of steel from abroad, risking heightened tensions with trading partners South Korea and China.

“Anti-dumping duties are likely to appear on the radar for steelmakers if imports remain high” and they sense that steel is being sold in Japan at unfairly lower prices than in exporters’ local markets, Ryuichi Yamashita, director at the iron and steel division of Japan’s trade ministry, said in an interview.

As Japan’s building boom sucks in steel from Asia, any response would depend on whether imports continue at high levels and damage is being inflicted on domestic companies, the chairman of the Japan Iron and Steel Federation, Hiroshi Tomono, told reporters last month in Tokyo.

The federation, an industry body, is looking for clues as to why imports are up despite a weaker yen, which should make steel from foreign

The increase in Asian imports has triggered a softening in the domestic steel market and higher inventories, contributing to a drop of about 19 percent in the value of Nippon Steel & Sumitomo Metal Corp.’s shares this year, said Jiro Iokibe, an analyst at Daiwa Securities Co. suppliers more expensive.

Steel imports in the three months to March 31 rose to their highest since 1997 on a quarterly basis. The federation yesterday said imports in April exceeded 400,000 metric tons for the sixth consecutive month.

The increase in Asian imports has triggered a softening in the domestic steel market and higher inventories, contributing to a drop of about 19 percent in the value of Nippon Steel & Sumitomo Metal Corp.’s shares this year, said Jiro Iokibe, an analyst at Daiwa Securities Co. Profit growth at Nippon

Steel, Japan’s biggest steelmaker, will slow to 8.7 percent in the year to March, according to the median estimate of 17 analysts compiled by Bloomberg.

Kobe Steel Ltd., which reported its first profit in three years last financial year, will likely report a 25 percent profit decline this year, analysts said.

Imports from South Korea rose 18 percent to 284,000 tons in April, the federation said yesterday. Imports from China almost tripled to 52,000 tons.

“Honestly speaking, these are some pretty awesome numbers if we look at the

levels objectively,” said Iwao Toide, the president of Metal One Corp., a steel trading company owned by Mitsubishi Corp. and Sojitz Corp. “We can only say we’ll carefully monitor how things go.”

Higher imports add to the challenges facing Japanese steelmakers seeking to protect earnings as the benefits of Prime Minister Shinzo Abe’s financial measures taper off and economic growth slows.

Excess supply particularly from China, which produces half the world’s steel, has prompted governments across the world to take steps to protect their home markets.

“C o n s i d e r i n g w h e r e overseas mills’ margins are given where currency levels are now, it’s hard to imagine that such large volumes are coming into Japan,” Tomono, who also serves as vice chairman at Nippon Steel & Sumitomo, told reporters last month in Tokyo. Antidumping measures are “among the options” as steelmakers consult with the government, he said.

Japan itself is the subject of 25 cases of anti-dumping duties levied or under investigation on steel from Japan in overseas markets, according to data compiled by the trade ministry. Japan, the world’s second-biggest steel producer, hasn’t imposed tariffs on imports.

opper rose in N e w Yo r k , heading for a second monthly advance, amid indications that supply of the metal is constrained.

Stockpiles of copper tracked by the London Metal Exchange plunged the most since 2005 in May, and the monthly drop was the 11th in a row, data from the bourse showed t o d a y. C o p p e r f o r immediate delivery traded this week at the highest premium since May 2012 to the LME’s three-month contract. Climbing prices for e arli e r d e li ve ri e s usually indicate limited supplies.

“The rapid widening of cash to threes reflected decent spot demand,” said Andrey Kryuchenkov, an analyst at VTB Capital in London. “Revived shortterm physical demand lately helped prices to the upside also, given dwindling stockpiles.”

Copper for delivery in July added 0.4 percent to $3.156 a pound by 8:29 a.m. on the Comex in New York. Prices increased 4.2 percent in May. The metal for deliver y in three months rose 0.2 percent to $6,900 a metric ton on the LME. Inventories of copper tracked by leading exchanges slid 45 percent this year to the lowest since 2008, according to data compiled by Bloomberg.

Cash copper reached a $101-a-ton premium to three-month metal in London on May 28 and was at $85 today.

Financial markets in China, the world’s biggest copper consumer, will be shut June 2 for the Dragon Boat Day holiday. The nation’s statistics bureau and logistics federation will release an official manufacturing gauge for May on June 1.

Nickel for delivery in three months rose 2.1 percent to $19,295 a ton in London. Prices climbed 5.3 percent this month, headed for a sixth straight gain, the longest winning streak since 2003. The metal is this year’s best performer on the LME, up 39 percent.

Insurance

25 ALTERNATIVE ENERGY: Germany to let insurers broaden investments

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Hand holding plant

Broker charges insurers on adequate reinsurance

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anaging Director of Boaf Insuran c e B r o k e r s , M r. O l u m i d e Fatogun, has asked underwriters in the insurance industry to do a lot of reinsurance in special risk business if they wished to play big in the oil and gas sector.

He also charged underwriters to ensure that they entered into reinsurance treaty with competent reinsurance outfits.

Fatogun, who spoke with Sweetcrude in Lagos, noted that special risk business is highly capital intensive as such, insurers should ensure that adequate reinsurance is in place because it is imperative for underwriting companies to pay claims

Special risk business is highly capital intensive as such, insurers should ensure that adequate reinsurance is in place because it is imperative for underwriting companies to pay claims promptly when and where the need arises promptly when and where the need arises.

The insurance broker also advised operators to effectively use coinsurance to pull capital and develop relevant skills such that pricing of risks could be done in Nigeria, adding that they

should avoid unhealthy competition that erodes the potential profitability of the companies to participate in the sector.

Fatogun added that every oil and gas risk underwriting business must be insured by a Nigerian company for

them to take what they can cover, then cede the rest to a captive company, adding that insurers are o v e r ex p o s i n g t h e i r accounts if they take too much of these special risks and exposing clients unnecessarily.

He noted that the recapitalisation exercise has increased the capital base of insurance companies and strengthened them for global competitiveness with improved capacity to underwrite insurance of oil and gas.

Fa t o g u n c a l l e d o n underwriters to have reinsurance treaties with ‘A’ rated international companies to further increase their ability to underwrite special risks.

ermany plans to make it easier for i n s u r a n c e companies to invest in infrastructure projects, to help insurers earn better returns as they struggle with prolonged low interest rates.

A finance ministry paper showed the government had proposed expanding the types of assets insurers can invest in. It would allow them to loan money to infrastructure companies that invest in Germany ’s alternative energy, for example.

“The guidelines for investment shall be changed in order to make it easier for insurers to invest in potentially more lucrative assets,” read the paper. “Given the current low interest rate environment, the investment possibilities in infrastr ucture will be broadened.”

Interest rates have hit bottom, leaving insurers struggling to earn returns from their fixed-income investments. That is making it harder to fulfill their obligations to policy holders.

Insurance companies are among the most powerful investors globally. German insurers and reinsurers currently invest more than 80 percent of their 1.4 trillion euros of capital investments in fixedincome assets, such as government debt.

But current returns of around 1.4 percent on German government bonds compare with average interest they offer to clients of 3.2 percent.

The government is currently working on a bundle of measures, including lowering the guaranteed interest rate insurers can offer.

German insurers are likely to welcome the plans, having long lobbied for easier conditions for investing in infrastructure and private-equity investments.

Insurance

26

NGOs warn energy, others of liability over climate advocacy

Air pollution

A

group of nongovernme n t a l organizations is warning executives of major greenhouse gas emitting companies that they could face personal liability if they are found to have been involved in funding climate denial or opposing policies to fight climate change.

Greenpeace International, World Wildlife Fund and the Center for International Environmental Law, asked the executives of 32 energy and cement companies, including ExxonMobil and Chevron, whether they were prepared to face liability questions based on their involvement in the climate debate.

“The corporations who share the majority of responsibility for the estimated global industrial emissions of [carbon dioxide] and methane over the past

150 years may have been or may be working to defeat action on climate change and clean energy by funding climate denial and disseminating false or misleading information on climate risks,” the groups said in letters sent May 28.

The companies’ involvement in such efforts could pose a liability risk to directors and officers personally, the letters said.

The groups sent similar letters to about 45 insurance companies that cover these executives against personal liability.

The organizations have asked companies to respond to a series of questions about their legal risks within four weeks.

The letters don’t allege that specific companies are involved in efforts to undermine action on climate change or climate science.

Instead, they reference reports, articles and other

information on corporate influence over climate science and policy, either directly or through trade associations, public relations firms or other third-party intermediaries.

“Fossil fuel companies have a long and welldocumented histor y of h a v i n g f u n d e d misinformation on climate change,” Carroll Muffett, president of the Center for I n t e r n a t i o n a l Environmental Law, said.

The question to energy company executives then becomes “are you certain that your engagements in this sort of misinformation about climate are covered under your own personal d i re c t ors and offi c e rs ’ liability policy?” Muffett told Bloomberg BNA. Directors and officers liability insurance provides personal indemnification for the directors and officers of a company in lawsuits against

their corporation.

Personal liability could become an issue for energy executives if they are found to be involved in misleading the public, the market or the government about the risks of their products or the availability of safer alternatives, he said.

Muffett drew parallels between the fossil fuel industry and the tobacco industry.

“At heart, you have a p r o d u c t t h a t i s fundamentally dangerous, fundamentally damaging to the environment, fundamentally damaging to society, when used as directed,” he said.

Both industries also have been accused of engaging in active campaigns “to confuse, deny, or undermine legitimate science on the impacts of these products,” Muffett said.

But in the tobacco context, the individual plaintiffs were

clear, while “one of the problems with climate change is there’s so many victims,” he said. As climate science improves to show regional and local level impacts, it could become easier to hold companies responsible for those impacts, Muffett said.

Some insurance companies are starting to recognize this risk of lawsuits arising from climate change, according to the nongovernmental organizations.

“As early as 2006, insurance companies offering D&O liability policies were wary about writing insurance for companies that are at risk from lawsuits arising out of climate change damages,” the groups said in a document sent with the letters. “Carbon majors, such as ExxonMobil, were said to look vulnerable in this respect.”

Maritime

27

Ship building

NLNG, HHI flag off training on ship building N

igeria LNG Limited (NLNG), a n d Hyundai Heavy Industries (HHI) in Bonny Island, Rivers State, have announced the kicked off of two-year ship building training programme at the NLNG-owned Bonny Vocational Centre (BVC).

About 120 young Nigerian technicians will acquire requisite competencies and skills in ship building, as part of the Nigerian content development agreement between Bonny Gas Transport Limited (BGT), a wholly- owned NLNG subsidiary, and HHI.

A statement from NLNG said the agreement is contained in the contract for the construction of two new LNG Carriers for BGT. The programme was recently declared open by the General Manager for Shipping at NLNG, Capt.

Temi Okesanjo, who was represented by Manager, Commercial Shipping, Capt.

Hambali Yusuf.

Okesanjo was quoted as saying that, “This training is one of the deliverables set aside for local Content development which was discussed and agreed by all parties involved, i.e., the Nigerian Content Development Board, Bonny

Gas Transport/Nigeria LNG, the respective shipyards and in this case Hyundai Heavy Industries (HHI).

“These deliverables were firmed up in a memorandum of agreement (MOA) and we are delighted that this major achievement has been flagged off.”

Earlier, as part of the MOA, 60 technicians had departed Nigeria for South Korea on a three-month ship building programme, 28 of whom will stay back and join in the construction of the two new carriers. Another 20 technicians are currently being trained at International Energy Services Limited (IESL) in

Lagos on a ship design programme. Seven of these will also participate in the construction of the new carriers.

Recall that BGT ordered six new vessels in 2013, at a cost of $1.6 billion from both Hyundai – two and Samsung Heavy Industries (SHI) – four, to boost its shipping capacity.

As part of the agreement signed with the ship builders, 580 Nigerians will be trained in different aspects of ship building and construction in fulfillment of the Nigerian Content Development for the “BGT Plus Project”.

BGT, a subsidiary of NLNG, was established in 1989, to

provide shipping capacity for NLNG projects. It owns 13 of the 23 vessels in the group’s fleet, by far the largest in Nigeria, which deliver liquefied natural gas (LNG) to customers spread across the world.

NLNG is the most significant arrow-head in the federal government’s quest to eliminate gas flaring, and derive value from the country’s 187 trillion cubic feet of proven gas reserves.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas BV, SGBV, (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).

Maritime

28

F Effective implementation of the ISPS code

ew months back, the nature of implementatio n o f t h e International Ships and Ports Facilities Security, ISPS code was a big worry for the nation’s maritime industry especially with regard to security at the ports and other marine facilities.

This follows the alleged ultimatum handed down by the United States, US, after the inspection of ports and other maritime facilities in Nigeria.

The International Maritime Organisation, IMO, through the efforts of the US pushed for the introduction of the ISPS code after the September 11 attacks.

The general agreement was that all maritime nations must implement the code within a given time and that any country that failed to comply would face sanctions.

As a result, the Federal Government of Nigeria set up the Presidential Implementation Committee on Maritime Safety and Security, PICOMS, in 2004 to enforce the implementation of the code.

H o w e v e r, p o l i t i c a l considerations and desire to transmute into a full flashed government agency became the drive of the body rather than the core function for which it was set up.

This misplaced priority resulted in a huge gap in the implementation schedule of the code, and as months dragged into years without much to show for it, the US Government stepped in.

Although the helmsman at the Nigerian Maritime Administration and Safety A g e n c y, N I M A S A , M r.

Patrick Akpobolokemi, told journalists after the ultimatum that the federal government has given it the Designated Authority, DA, since May 21, 2013, but it was only made public after the ultimatum.

It was after then that NIMASA swung into action with Akpobolokemi rolling out an action plan leading to meeting the demands made by the ultimatum.

According to him, “an action plan was developed and immediately activated to aggressively close the reported gaps.

“This effort included dispatching competent recongnised security organisations to conduct security surveys and assessments aimed at

… The Baltimore port example

Baltimore port identifying and correcting these deficiencies and any o t h e r o b s e r v e d vulnerabilities.

“Whilst focusing on these facilities listed in the US Coast Guard report, measures are already underway to address the generality of port facilities (PFs) in the nation’s maritime domain.

“This action plan has been given a nod by the US Coast Guard and it has pledged to support the efforts of the DA in ensuring the issues raised are remedied. The DA has outlined its implementation

framework in the form of a handbook to enable the public understand its agenda with respect to this new implementation regime,” he noted.

While this is being worked on, a government delegation went to the Washington DC, to understudy how the ISPS code is being implemented at the Baltimore Port, Maryland.

After a tour of the port which gave the delegation a view of the various terminals along the water front, the Trade Development Officer of M a r y l a n d P o r t Administration, L ar r y

Johnson, told the delegation that “the US Coast guard maintains most of the security, makes the rules and regulations and we have to follow. The ports can also make their own rules and regulations.

“For anyone visiting the port, you have to give us two weeks’ notice, get your clearance identification card and then you have to be escorted to the port in a bus.

Everybody must have a visitor’s pass, if you have to get out of the bus, you will be provided an escort for every five people if you want to get

off.

“One person can do it if you want to drive round the port in a bus. So security is very tight here,” he said. From personal observation, unlike the Nigeria’s ports where almost all the terminals are separated by a simple fence, those of the Baltimore Port were well separated, and each one is dedicated for specific cargoes.

This, another official explained makes it easy to control in the event of serious incidents.

29

Total donates books to schools in Rivers Jimitota ONOYUME

P

Tropical-ecology

FG sets up committee on ecology Jimitota ONOYUME

P

O R T H A R C O U R T: THE Minister o f Environment, Mrs Lawrencia LarabaMallam, has inaugurated working groups in the Niger Delta to evolve solution to tackle degradation of the ecosystem in the region.

Speaking in Port Harcourt, the Minister who was represented by an Assistant D i r e c t o r, G l o b a l

Environment Fund, GEF, Mrs Halima Mohammed, expressed the hope that the government would achieve results with the emergence of the working groups.

She added that the solutions would put an end to ecological related problems in the region.

Continuing, she said the government would review its strategy regularly because of the peculiar nature of the region “the peculiar nature of the delta demands a regular review and update of

strategies.”

On his part, the Director General, National oil Spill Detection and Response Agency, NOSDRA, Mr Peter Idabor, lauded the effort of the government to set up working groups in four states in the region to find an end to the problem.

He said his agency has activated the National Oil Spill Contingency Plan (NOSCP) in Port Harcourt.

“The objective is for NOSDRA to assess the industry and stakeholders’

capabilities to respond effectively to worst case scenarios of oil spill and to appraise the effectiveness of inter-agency collaboration as a necessary ingredient for a successful Tier 3 spill management,” he explained.

The Coordinator of the Biodiversity Project, Dr Matthew Dore, who also spoke said the groups were set up in four states in the region as a pilot scheme. The states are: Rivers, Bayelsa, Akwa Ibom and Delta.

ORT HARCOURT: TO TA L E& P Nigeria has donated books to some secondar y schools in Rivers state.

Making the donations during the company ’s 2014 Book Reading in Port Harcourt, the Deputy Managing Director, Total E & P, Po r t H a r c o u r t District, Mr Nicolas Brunet, said it was part of t h e c o m p a n y ’ s contribution towards growth of the education sector in the state.

Continuing, he said the Book reading event was to stimulate reading culture among students in the state, adding that reading opens the mind to positive opportunities.

“Today we are restating o u r c o m p a n y ’ s commitment in the campaign to get youngNigerians to cultivate the habit of reading books as a way of life,” he said.

Celebrated literary icon who turned 80 recently, Captain Elechi Amadi, and a former Commissioner for Education in the state, Dr Mrs Ngozi Odu, were among those who read novels and poems to the students.

The State Commissioner for Education, Dame Alice Lawrence-Nemi charged students and youths in the state to develop passion for r e a d i n g .

T h e Commissioner who was represented by the Permanent Secretary of her Ministry, Mr Michael West, also called for support from the private sector to effectively develop the education sector.

While thanking Total for the support to the education sector in the state the Commissioner also spoke of achievement so far recorded in the sector by the state government.

Community

30

Niger Delta ex-militants threaten to halt oil production

Oil rig

Gabriel EWEPU

N

IGER Delta e x militants, also known a s e x agitators, under the Phase Three Amnesty have threatened to halt oil production in the region. This

followed a call made by some delegates at the National Conference during a debate on the derivation formula for oil producing states in the Niger Delta region.

The delegates also agitated for the scrapping of the Niger Delta Development Commission, NDDC, Ministry of Niger Delta

Affairs, and the Amnesty Programme.

S p e a k i n g w i t h Sweetcrude, the National Secretary, Phase Three Amnesty, Comrade Tam O d o g w u , s a i d t h e ex agitators and the youths rejected 13 per cent derivation for oil producing states, as it should not be less

than 50 per cent.

Odogwu said for peace to continue in the region and for the benefit of Nigerians and the economy, delegates at the confab should do the right thing, and allow justice and fairness to play in this matter of derivation and support the NDDC, MNDA, and Amnesty programme.

Odogwu said: “The Niger Delta people will never accept anything below 50 per cent as derivation for oil producing states. The Niger Delta ex-agitators and youths also condemn and warn against any move to s c r a p t h e t h r e e interventionist institutions which are the Niger Delta Development Commission, NDDC, Ministry of Niger Delta Affairs, and Amnesty Programme.

“These institutions are the reason for the peace in the region today and as well the increase in oil production and revenue generation for the country. Therefore the confab delegates should consider the possible consequences of what the scrapping will result to. And we will not sit down and allow oil production to continue, since they don’t want the current peace in the region to continue and be sustained.

“Therefore, we urge delegates at the national confab sub-committee on power devolution and resource control to put sentiments aside and use this rare opportunity to correct every error by giving whatever that is due to whoever as far as the growth and development of Nigeria is concerned.”

However, Odogwu called on Niger Delta delegates at the confab to continue with the resource control demand during debate at plenary and not to deviate from the position of the region on the issue no matter the opposition from any section of the delegates.

He added that the exagitators were disappointed with the contributions of some Niger Delta delegates who have taken positions that betray the region’s position and interest, and cautioned them to project what the people of the region stand for.

He however believes that the national conference will correct the wrongs of the past and deepen the federal system of government, and put the nation on path of growth and development.

Community

31

Samuel OYADONGHA

T

hirty young Bayelsans living with disabilities had c a u s e t o celebrate last week when they were presented with certificates of merit and start up packs by the management of Shell Petroleum Development Company (SPDC).

This will enable them cater for themselves instead of looking up to close family members and the society for survival.

The lucky beneficiaries; 10 blind, 10 deaf & dumb and 10 physically challenged persons were trained in various skills and provided with capital to set up their own businesses.

Interestingly, the road to self-sustenance for these youths, Sweetcrude learnt, began in August 2013, when the oil major with vast business interests in Bayelsa State signed a Memorandum of Understanding with the state Ministry of Women Affairs and Social Development.

The agreement is to train 30 persons living with disability under the Shell LiveWire Programme with life sustaining skills that would enable them fend for themselves and their families.

The beneficiaries were drawn from the eight local government areas of the state.

Speaking at the graduation ceremony of 2014 Shell LiveWire Nigeria ‘Awards’ in Yenagoa, SPDC General M a n a g e r, S u s t a i n a b l e Development and Community Relations, Mr. Nedo Osayande, described the programme as a veritable means of boosting capacity and increasing wealth portfolio in the Niger Delta.

His words: “the journey which culminates in today’s event started in August 2013 following the successful signing of an MoU with the Ministry to train 30 persons living with disabilities on the Shell LiveWire programme.

The group included; 10 blind, 10 deaf and dumb and 10 physically challenged persons.”

Represented by Mr. Fufeyin Funkakpo, Government and Community Relations Manager, he said, the training covered three days business development training and 27 days skill development training at

Physically challenge people

SPDC empowers physically challenged in Bayelsa These core commercial skills are combined with the necessary start-up capital with a focus on expanding or increasing youth owned businesses in the state

selected centres in the state.

His words: “This is the first time that the programme is

focusing on persons with disabilities and we deeply appreciate everyone who has contributed to this unique programme.

“Our goal is to build capacity for business through access to entrepreneurship training and business development.

These core commercial skills are combined with the necessary start-up capital with a focus on expanding or increasing youth owned businesses in the state.

“To date, LiveWire Nigeria programme has trained over 5000 Niger Delta youths in enterprise development and management out of which over 2,700 were further assisted to set up their own businesses through business

start-up awards.”

According to him, “These young entrepreneurs are now creating employment opportunities for other youths, thereby contributing to the reduction of youth unemployment and poverty in the region.”

Continuing he said: “ we are aware from our work and experience in the Niger Delta, that no single actor can meet the scale, complexity and resources required to respond to the challenges of social development.

“That is why we continue to partner with other business entities, government, nongovernmental organizations and community based organisations.”

Receiving their certificates

of merit and starter packs, the beneficiaries were full of gratitude as they thanked SPDC for the turnaround in their lives.

Isaac Stephen, who spoke on behalf of the beneficiaries, lauded the management of SPDC for voluntarily sponsoring them in different trade.

Stephen who doubles as Chairman, Joint National Association of Persons Living with Disability in Bayelsa, also thanked the management for giving starter packs and the sum of N6m to enhance their trade.

“We are grateful to the company, we did not apply for the training, but SPDC voluntarily offered to train us,” he said.

JASCON 55