The Nation Newspaper

Category: Energy

  • NCDMB, Notore explore investment opportunities

    The Nigerian Content Development and Monitoring Board (NCDMB) has pledged support to Notore Chemical Industries Plc to develop its industrial complex to offer integrated services to oil and gas companies, and increase its contributions to the agricultural and infrastructural sectors.

    NCDMB Executive Secretary Simbi Kesiye Wabote said this when he visited the company in Eleme, Rivers State. He also took extensive ground and aerial tour of the facilities.

    The agro-allied, petro-chemicals and power company, he said, has bigger potential for industrialisation, because it has natural gas resources, generates its electricity and has been granted free trade zone status.  Wabote added that the ample land mass and other assets positioned the complex to host allied industries. It will also serve as a logistics base for key oil and gas operations.

    He said: “This facility is just 15 kilometres to NLNG in Bonny, so there is potential to participate in the NLNG Train 7 project. There is vast land here, so you can also have accommodation for projects. This location could become a staging ground for most of the NLNG construction that would happen.”

    Wabote suggested that the Notore’s facility could also be considered for the execution of SNEPCo’s Bonga-Southwest Aparo’s deep water project. “That project would also happen and we are looking for draft and you have it here. There are potentials for ancillary factories that support the oil and gas sector.”

    Recalling that the complex suffered poor management when it operated as the National Fertiliser Company of Nigeria (NAFCON), Wabote commended the current management for revitalising the assets and expressed delight that key operations of the fertiliser plant were being run by Nigerians.

    He said: “All the people manning the operations are Nigerians. The feeling is unbelievable and this is what we talk about in NCDMB in terms of industrialisation and the synergy we must build across sectors. This is one of those companies that are changing the face of Nigeria in terms of agriculture. What the company does and the impact to our economy is unbelievable.”

    Notore Chemical Plc Group Chairman Mr. Onajite Paul Okoloko thanked the executive secretary for the visit.

    He explained that Notore’s assets straddled across the agricultural, oil and gas and infrastructural sectors, and the management was striving to build a second fertiliser plant, which would increase support to farmers with high-yield fertilisers and best practices.

    Okoloko said the company was determined to build an industrial city and commercialise some of its assets, which include the 560 hectares of land and two kilometres of water front.

    According to him, “the larger picture from one of our subsidiaries, Notore Industrial City, is to create an industrial chemical estate. Our free trade zone is rated number 1 by Pricewaterhouse Coopers in the sense that it has a deep river port, 10.5 meters of tradable draft, with direct access to the ocean. We also have 560 hectares of land and is the only free trade zone in the country that has gas and power.

    “In our estate you can have fertiliser plants and petrochemicals because we have the gas infrastructure so you can use that as raw material. At the same time we have a logistics base that can support the oil and gas industry. So, we have the logistics on one hand and the commercialisation of gas which is being flared in the country, so this becomes a gas hub.”

    He said the company would work with various stakeholders to “optimise the location to create significant amount of industrialisation, which is key to the economic growth of the country and at the same time, employ a huge amount of local skills to support the facility we have here.”

  • Edo commits to reforms in oil, gas sector

    The Edo State Commissioner for Minerals, Oil and Gas, Hon. Joseph Ikpea, has assured of reforms that will reposition the ministry for optimal service delivery, suing for support from ministry officials for a successful tenure as commissioner.

    Hon. Ikpea, who spoke during his maiden meeting with the members of staff in his office in the ministry’s premises in Benin City, described himself as a peace-loving individual who hates all forms of confrontations and rancour in the work place.

    The commissioner was recently inaugurated by Governor Godwin Obaseki and assigned to the ministry to deepen reforms and policies pertaining to the oil and gas industry in the state.

    He advised the staff to peacefully carry out their duties, while being prayerful as God is the giver of life and all good things.

    READ ALSO: Suspects in Edo prison bomb plot held

    The Commissioner further stated that his doors were open for any member of staff or the public with useful information to help his administration to succeed.

    Responding on behalf of the ministry’s staff, the Permanent Secretary, Barr. Sam Oko-Ose, welcomed the Commissioner to the Ministry while conducting him around all the departments and explained their functions and duties.

    Barr. Oko-Ose pledged his unflinching support and loyalty to the new Commissioner and wished him success in his tenure as the head of the ministry.

  • Ikeja Electric, PEP Stores partner on bills’ payment

    Ikeja Electric Plc (IE) has collaborated with multinational retail company, PEP Stores, to enable customers pay bills or recharge their account at designated PEP Stores across Lagos.

    Under the deal, post-paid and prepaid customers within IE network can pay their bills and recharge their account while doing regular shopping in PEP Stores located in Gbagada, Maryland Mall, Ipaja, Isolo, Allen Avenue, Ikorodu, Ogba, Awolowo Way, Ojodu Berger, Idimu, Amuwo Odofin, Ogudu and Ikeja City Mall in Lagos.

    Fielding questions from reporters at the launch of the initiative, the Acting Chief Commercial Officer, Ikeja Electric, Ugochukwu Obi-Chukwu, said the essence of providing the payment  outlets was borne out of the company’s customer-centric approach to service delivery.

    Read Also: Ikeja Electric energises Obawole 15MVA injection substation

    He said: “The collaboration between Ikeja Electric and PEP Store demonstrates our passion to consistently improve service and make energy available to consumers. This initiative gives convenience and seamless service to customers who need to recharge their account or pay bills. Another interesting benefit of this partnership is that most of the outlets open on weekends so customers can walk in to purchase token for energy or pay bills just as they shop other needs.”

    He noted that the possibility of paying bills or buying electricity units while shopping and the convenience it offers will definitely provide a rich and satisfying experience for customers.

  • Sahara Group eyes investment in Angola’s downstream

    Efforts by the Angolan government to restructure its oil and gas sector offer opportunities for collaborations between local and international companies along the value chain in the industry, Sahara Group Executive Director Wale Ajibade has said.

    Ajibade stated this while discussing African oil and gas market trends with a trade delegation from Southern Africa to his office in Lagos.

    According to him, these opportunities in Angola exist in local capacity development, infrastructure development as well as funding.

    Angola is the second largest oil producing country in sub-Saharan Africa and an Organisation of Petroleum Exporting Countries (OPEC) member with output of approximately 1.55 million barrels of oil per day (bpd) and an estimated 17,904.5 million cubic feet of natural gas production. The nation also holds nine billion barrels of proven oil reserves and 11 trillion cubic feet of proven natural gas reserves, which represent great potential for further economic development and significant business opportunities.

    Read Also: Sahara Group seeks intra-Africa solution for oil sector issues

    Commending the Angolan President, João Lourenço, whose transformative policies are being driven by the Minister of Mineral Resources and Petroleum, Dr. Diamantino Pedro Azevedo, Ajibade said the administration’s reform agenda has thrown up opportunities arising from the reorganisation of Sonangol – the state oil company, a review of Angola’s oil and gas sector legislation  and incentives for investments.

    According to him, the opportunities include partnerships between International oil firms, international traders, international banks, especially African companies  and Angolan companies, which will enhance global best practices, knowledge transfer into the local industry and ultimately increase the participation of private players in the downstream market.

    “These opportunities can be exploited with the deployment of international and local private capital in partnership with the Angolan government. With our pedigree, proven expertise and capacity in Africa’s oil and gas sector, Sahara Group is happy to work with Angola in a bid to optimise the growth and development of the sector in Angola,” he said.

    Ajibade noted that although Angola remains a leading oil producer in Africa, with many investors focused on opportunities in exploration and production, more opportunities in the rest of the value chain, such as the downstream sector could benefit from various business models and further improve the reliability and security of petroleum products supply to the Angolan market.

    On infrastructure, he noted that “with the right investments in the necessary infrastructure such as storage and logistics, Angola can become the Rotterdam of Africa,” acting as the regional export hub serving Central, Southern and even West Africa.

    Ajibade further pointed out that while Angola is strategically positioned along the coast with several landlocked neighbours, for the country to develop a regional market, it will need to make significant investments in import-export facilities, pipelines and storage.

  • IBEDC engages Ogun customers on new metering scheme

    THE Ibadan Electricity Distribution Company (IBEDC) has held a meeting with its various customers to sensitise them on the ongoing Meter Asset Providers (MAPs) scheme.

    It advised them to go through the appropriate channels to obtain meters or lodge complaints to avoid falling victims of fraudsters.

    IBEDC management gave the advice at its maiden town hall meeting with customers at Abeokuta, the Ogun State capital and its environs. IBEDC officials engaged and educated the customers and other stakeholders on the MAPs scheme.

    According to the utility firm, the scheme will help customers  get meters and check or stop the estimated billings, among others.

    IBEDC Chief Operating Officer, John Ayodele, who led the management, stated this during the town hall meeting.

    Ayodele said the company has pegged the cost of a single-phase meter at N38,325 while a three-phase meter cost N70,350, including the  Value Added Tax(VAT).

    Ayodele said: “IBEDC management is committed to ensuring that its over 988,915 customers have  meters with ease at a going of N38,325 for a single-phase meter while a three-phase meter costs N70,350 with Value Added Tax included.

    “Ibadan distribution Company (DisCo) also appeals to you customers to go through the proper channel to avoid fraudulent activities as there are no hidden charges, no processing fees and no application fees of any kind.

    “Customers are to apply for MAP application form after which a technical evaluation of the customer’s apartment is carried out and the customer gets a MAP identification number. This MAP identification is all that is required to pay at any bank in Nigeria. Meters are installed in customer’s premises within 10 working days after receipt of payment.”

    Ayodele explained that the MAP scheme was established under the MAP Regulation 2018 and introduced by the regulator – the Nigerian Electricity Regulatory Commission (NERC) to put a stop to the incessant complaints about estimated billings by customers.

    He assured that the scheme would bridge the metering gap and accelerate meter roll out and thus enhance revenue drive.

    He explained that IBEDC has engaged seven meter vendors under MAP scheme to cater for the customers across its franchise areas of Ogun, Oyo and Osun states.

    According to him, the meter providers drawn from private sector are licensed by NERC to encourage the development of independent and competitive meter services.

    “The MAP scheme is not only for the provision of meters but, also responsible for the installation , maintenance  and replacement of faulty meters,” Ayodele said.

  • NNPC to resolve fiscal issues with JV partners

    To attract fresh investments into the petroleum industry and encourage exploration for new oil finds to grow the oil and gas industry, the Nigerian National Petroleum Corporation (NNPC) is planning to resolve the lingering fiscal issues hindering the growth of the industry.

    Its Group Managing Director, Mallam Mele Kyari, stated this while fielding questions from reporters at the just-concluded conference of the Society of Petroleum Engineers (SPE), Nigeria Council held in Lagos.

    Kyari said the corporation will engage its joint venture (JV) partners and the government to resolve the knotty issues.

    He noted that NNPC will  fully embrace technology to drive its operations considering the direction of the industry. He said: “Today, Artificial Intelligence is leading digital transformation across the oil and gas industry, from exploration to production and facility management. And many oil companies have taken advantage of this to enhance operations’reliability and profitability.

    “Technology and innovation will, therefore, continue to shape the way we do our businesses, especially in the deep offshore and other hard to operate environments.Artificial Intelligence, Big Data and Mobile Technology will continue to shape our industry in practically unimaginable ways, but certainly the transformations it promises will lead to quantum shift in the delivery of our task.”

    For the NNPC, Kyari said: “We are getting to the point of using technology to address challenges and advance growth of the oil industry but there is significant room for improvement. Certainly, we have done so much in the industry to believe that we have got to a level that doesn’t need other proportions.”

    On developing the oil and gas industry appropriately, the NNPC chief said: “There are fiscal issues that we need to resolve and we are engaging our partners and government so much to make sure those fiscal issues are resolved so that at the end of the day, people will have the basis of investment clear to them.

    “We will also engage our partners to make sure that the assets that need to be divested are done as quickly as possible so that we can reduce some of the challenges that had inhibited investment in this industry.The combination of these two will take us there.”

    On whether the government will sell the refineries to private sector investors to make them efficient, Kyari said government will not sell the refineries but assured that NNPC will make the refineries operate at reasonable capacity. “First, we have to rehabilitate our refineries and make they operate at minimum of 90 per cent capacities. Secondly, we (NNPC) will make sure others that have such initiatives to put in place new refineries are supported by way of either providing them feedstock or all the necessary support to make sure such refineries come on stream and also make sure when they produce we take these products from them.”

    On the financing option the corporation will choose to carry out the refineries’ rehabilitation, he said: “We can do equity or third party financing and other options,” adding that the NNPC is to also resolve fiscal issues around investment environment and make sure its priorities are clear and it will plan with its JV partners, so they can get back to exploration.

    Kyari said taking steps to grow reserve, expand the frontiers of our production as a country requires enabling environment to attract the investment that is being subdued by our fiscal regimes but noted that the corporation is optimistic that this government under the leadership of President Muhammadu Buhari is determined to deliver a stable fiscal environment to support the needed growth in the oil and gas sector.

    “The oil and gas industry is dynamic and must remain so in order to survive frequent disruptions associated with changing economic, social, political environments,” he added.

  • China launches world’s first intelligent mega oil tanker

    An oil carrier with a capacity of 308,000 tons, amounting to 2.275 million oil barrels, is the world’s first intelligent mega tanker, a VLCC, which has been installed with an intelligent operating system and is the first smart carrier in the world.

    China is the fourth-largest oil producer in the world, and with the petroleum industry rapidly increasing, it’s easy to see why the country has invested in upgrades of marine technology, as demand to supply oil to foreign countries has risen quickly.

    The new VLCC carrier, which some have nicknamed, “The Journey,” stands 55 meters high, 300 meters long, roughly the size of three mega football fields.

    The oil tanker forms a part of the fleet, owned by Dalian Shipbuilding Industry, which forms part of China Shipbuilding Association. With features such as auto-pilot navigation, intelligent cargo management, and integrated efficiency management, the tanker is a breakthrough in technological developments for ships, which includes increased maritime safety, energy conservation, and emission reduction. The tanker has completed all mandatory testing and is set to start the course by next year.

    China has overtaken the US in oil imports, with an astounding 6.7 million barrels a day arriving on China’s coast. China became one of the primary importers for oil, is when growth and demand exceeded capacity, as floods would destroy China’s oil fields, thus creating the need for China to import oil to compensate for the loss. Currently the number of containers in Chinese ports, amount to more than 150 million.

    Meanwhile, the on-going U.S.-China trade dispute would crimp the expansion of U.S. liquefied natural gas (LNG) supply capacity, a senior analyst with the consulting firm Wood Mackenzie has said.

    The trade dispute is a barrier to the signing of more long-term deals between China and the United States on the LNG supply, said Alex Munton, principal analyst for Americas LNG research at Wood Mackenzie during a recent webinar of the consulting company. China now has little exposure to the U.S. market, with only one long-term LNG purchase agreement signed so far, according to Munton.

    “The longer the dispute rumbles on, the more downside there is with respect to U.S.-China LNG trade,” he said.

    Since the trade war began, U.S. LNG export to China has essentially grounded to a halt pending a resolution of trade negotiation, Munton said. “In the events of a resolution, it’s all upside.”

    The potential for the LNG demand growth from China and that for LNG supply growth from the United States is huge, said the analyst.

    China and the United States are expected to become the world’s largest LNG importer and exporter respectively by 2024, according to the latest forecasts by the International Energy Agency.

  • ‘NNPC/SNEPCo cancer machine reduces treatment waiting time’

    THE new cancer treatment machine at the National Hospital, Abuja will reduce patients’ treatment waiting time from 16 minutes to two minutes, its Chief Medical Director Dr. Jaf Momoh.

    He spoke at the inauguration of the equipment by Vice President Yemi Osinbajo.

    The Elekta Synergy Linear Accelerator radiotherapy machine, donated by the  Joint Venture of the Nigeria National Petroleum Corporation (NNPC), Shell Nigeria Exploration and Production Company (SNEPCo),   focuses on cancer tumour and does not impact other organs in the patient.

    Momoh described the donation  as timely, noting that first cancer treatment equipment in the hospital became disused in 2017 after 17 years.

    According to him, the first replacement machine “treated 850 patients in over 25,000 cycles of radiotherapy sessions.

    “With this new machine, the hospital is poised for effective and efficient cancer treatment with no interruption during periods of routine equipment maintenance,” Momoh said, adding that indigent patients would get subsidised treatment.

    Osinbajo said cancer prevention initiatives should be promoted, noting that many cases of the disease could be prevented.

    Osinbajo, represented by the Permanent Secretary, Federal Ministry of Health, Alhaji Abdullahi Mashi, said: “The increasing trend in the prevalence of cancer may be a reflection of lifestyles which goes to show that lifestyle modifications may go a long way in curtailing the scourge. This underscores the importance of awareness creation at all health facilities and provision of screening facilities.”

    The VP charged well-meaning Nigerians and organisations “to replicate what NNPC and Shell Nigeria have done in other health facilities to make cancer treatment easily accessible to patients”.

    SNEPCo Managing Director Bayo Ojulari said the gesture was  aimed at supporting the government  in increasing treatment access, reduce waiting time, and provide world-class facility.

    “The Elekta Synergy LINAC offers a unique radiation therapy technique that accurately shapes the radiation dose to the tumour with very little or no adverse effect on the surrounding organs, he said.

  • Awards for content Board, chief get awards

    THE Executive Secretary (ES), Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Kesiye Wabote, has been awarded the Transformational Business Leader in Public Sector.

    The NCDMB was recognised as the Government Agency of the Year for Enabling Business.

    The awards review committee said the ES has provided exemplary leadership at the NCDMB and had spearheaded several initiatives which help to create conducive environment for the private sector to thrive.

    It added that the award celebrates “a public officer under whose inspirational leadership new opportunities for domestic prosperity are being unlocked”.

    The two awards were given by the Nigerian Business Leadership Awards of BusinessDa in Lagos.

    Receiving the awards, Wabote thanked the company and its Awards Review Committee for the awards and expressed delight that “the media and populace fully appreciate our efforts in using Nigerian Content to create employment opportunities and to promote the growth of the local economy” .

    He dedicated the awards to his family and NCDMB workers, stressing: “I have succeeded in this role simply because I have the full support of the management and staff of the NCDMB. Their commitment and dedication to duty is second to none.”

    Wabote thanked President Muhammadu Buhari for the opportunity to serve in NCDMB and underscored the support received from the Presidency to deliver on the mandates contained in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

    He stated that the Board had pushed a few new ideas in the last two and a half years, including equity investments in strategic third party projects, introduction of Service Level Agreements (SLAs) with international and indigenous operating companies to enhance the Ease of Doing Business, creation of the US$200million Nigerian Content Intervention Fund to provide affordable and accessible credit for local oil service companies, progression of industrial parks to domesticate oil and gas components manufacturing and construction of the Board’s 17-storey Headquarters Building in Yenagoa, Bayelsa State.

    He added: “We feel highly elated that our modest ideas and efforts are making the desired impacts and have attracted recognitions,” assuring: “These awards will reenergise us to do more for our country.”

  • ‘Oil service firms to benefit from AfCFTA‘

    OIL and gas service and manufacturing companies that have built their capacities will benefit from the Africa Continental Free Trade Area Agreement (AfCFTA), Nigerian Content Development and Monitoring Board (NCDMB) Executive Secretary (ES), Mr. Simbi Kesiye Wabote and  Manufacturers Association of Nigeria (MAN) President, Mr. Mansur Ahmed have said.

    They spoke in Port Harcourt, the Rivers State capital, during the inauguration of Alcon’s ultra-modern factory for electrical power distribution panels and switchgears, which the firm set up in partnership with ABB, a world- leading electrical and power original equipment manufacturer (OEM).

    The facility has the capacity to produce 750 main distribution panels, 1,200 sub-main-DBs to over 5000 consumer units and engage 150 workers.

    In his keynote address, the ES stated that investments, such as Alcon’s, open opportunities from the national to continental levels. According to him “the establishment of such manufacturing outfits will enhance the delivery of the target benefits under the AfCFTA agreement.

    “If you take the population of Africa and the potential market and given the general level of development of countries, the sky is the limit for any manufacturer that makes the right investment, has the right quality and partnerships.”

    He commended Alcon for being the first company to obtain NCDMB’s ‘Nigerian Content Equipment Certificate (NCEC) Category A’ for electrical switchgear and panel building. It announced that the Board would no longer grant approvals to import the products manufactured by Alcon.

    He charged the company to continue to deliver top-notch low voltage panels as well as introduce new products that could match those that are manufactured in any part of the world.

    He promised that NCDMB would continue to educate industry stakeholders about the company’s capabilities through the NOGIC JQS platform.

    Wabote commended Alcon for its ability to nurture a formidable partnership with ABB, stating that it “attests to the fact that if local companies have the right processes and procedures in place, international OEMs will be willing to form alliances and partnerships that endure’’.

    Manufacturers Association of Nigeria (MAN) President Mansur Ahmed urged Alcon and other manufacturers to take advantage of the opportunities presented by President Muhammadu Buhari’s recent signing of the continental free trade agreement, which will bring the 55 African countries into one common market.

    He explained that AfCFTA will generate a market of 1.2 billion people and an active economy of trillions. He added: “Every manufacturer or investor should look at that and begin to thrive. I am glad that Alcon is seeing this vision and there is a plan for expansion. As we go into the AfCTA, we are going to create a bigger market, four to five times bigger than what exists.”

    Alcon Managing Director Mr. Gerardo Della Santa stated that the factory was the largest and that it had trained its workers locally as well as in Egypt and Italy to keep pace with new technologies and new products.

    He described the facility as landmark because it will transfer technology, create new jobs and expertise. “We perform the full cycle of the panel production, design, customisation, assembly, testing, packaging and delivery,” he said.

    Santa confirmed that the company had received all required certifications from ABB and Standards Organisation of Nigeria (SON) to operate. He thanked NCDMB for believing in the company’s vision and the Bank of Industry (BoI) for providing the financial support for the investment.

    ABB Country Managing Director Mr. Hany Abd-Elazim underscored the company’s long partnership with Alcon and its support for the new production facility, noting that it had huge value addition in line with the local content initiative.

    He expressed delight that the new facility will create jobs and improve productivity. He added that the factory provided an opportunity to export products within the ECOWAS region and expand to the continent when the African Free Trade Area takes effect from mid 2020.

    “This will support the cooperation to have local value added products from Nigeria to be exported,” Abd-Elazim said.