The Nation Newspaper

Category: Energy

  • TCN urged to arrest grid collapse

    The frequent collapse of the national grid and its attendant disruption of electricity supply would continue nationwide until the Transmission Company of Nigeria (TCN) monitors the grid through a device known as Supervisory Control and Data Acquisition (SCADA), the Ibadan Electricity Distribution Company (IBEDC) Principal Manager, Corporate Affairs, Mrs Angela Adekunle, has said.

    This is coming on the heels of the collapse of the national grid recently, a development attributed to the fire outbreak at a Benin sub-station, in Edo State.

    In a statement made available to The Nation, she said inability of the TCN to put in place supervisory control and data acquisition mechanism has led to increase in collapse of the electricity grid in recent times. According to her, grid has collapsed 100 times since 2013, when the new investors took over the assets of the defunct Power Holding Company of Nigeria (PHCN).

    She said: “Until TCN provides Supervisory Control and Data Acquisition to monitor the operation of the national grid in order to discover its problems and subsequently provide solution to it, the collapse of the grid would continue.”

    Adekunle said the grid has collapsed nine times alone in 2019, adding that it is high time TCN provided solution to it.

    Also, her counterpart in the Enugu Electricity Distribution Company (EEDC), Mr Emeka Eze, said the recent collapse affected social and economic activities across the country. He told The Nation that the issue affected some franchise areas owned by the firm before it was addressed.

  • NLNG, LCCI seek solution to power sector woes

    The  Nigeria Liquefied Natural Gas Limited (NLNG) and the Lagos Chamber of Commerce and Industry (LCCI) have called for more efforts to address the  challenges in the power sector. They also want other energy sources and ideas that will help to fix the problem explored.

    Manager, Corporate Communications and Public Affairs, NLNG, Andy Odeh, said the two organisations made the call at the Business Interactive Session on Innovation in Electric Power Solutions at the LCCI head office in Lagos. The session featured the 2018 winner of The Nigeria Prize for Science, Dr. Peter Ngene. The winner  clinched the prize based on his work: “Nanostructured metal hydrides for the storage of electric power from renewable energy sources and for explosion prevention in high voltage power transformers.”

    The  Prize is a $100,000 award sponsored by NLNG to promote innovations in science and technology that will solve age-long problems and drive development in Nigeria. The prize is awarded annually.

    The General Manager, External Relations and Sustainable Development, Mrs Eyono Fatayi-Williams, said the interaction session was as a result of The Nigeria Prize for Science which is increasingly shedding light on solutions to some of the nation’s problems which include electricity shortage.

    She said in recognition of the need to encourage more work in finding solutions to electric power generation in the country, NLNG used the  competition to encourage research works on the theme of that year’s competition – Innovations in Electric Power Solutions.

    Mrs. Fatayi-Williams said a renewed focus on power generation and conservation is definitely one area which can offer huge business opportunities in the country, calling on the industry to focus on renewable sources of energy to improve the situation, promote better energy output, as well as align the country with the global clamour for cleaner energy sources, as the world fights global warming.

    The President of LCCI, Paul Ruwase, said there was need to change the narrative and focus on innovative ideas that can enable practical solutions. He added that the theme of the session provided a platform for reshaping the mind-set of Nigerians, helping to champion the birth of new ideas and practical ways to make the power sector work as it should in order to promote the country’s economic development.

    “Reforming the power sector in Nigeria must align with the global energy direction of increasing renewables in the energy mix. Dr. Ngene’s award-winning work further presents an opportunity for Nigeria to harness new discoveries in solving her power supply challenges. His invention has positive implications on renewable energy development that the country can benefit from. It is believed that Dr. Ngene’s work will expand the energy market in Nigeria with efficient energy storage.”

    Ngene in his presentation titled: “Nanomaterials for Energy and Power Application”, highlighted the potential of his work in the area of storing hydrogen, storage battery for renewable energy and detection of hydrogen leaks in transformers to prevent explosion.

    He said explosion in transformers was one of the major causes of power outages in the country, adding that  Nanotechnology is a cheap way of detecting hydrogen to eliminate such explosions is possible.

  • ‘Why refineries are not operating optimally’

    Nigeria’s refineries are operating below their installed capacity of 445,000 barrels per day (bpd) because the  Federal Government controls them, the former President, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Dr Louis Brown Ogbeifun, has said.

    The refineries include Warri, Kaduna and Port Harcourt 1&2.

    In an interview with The Nation, in Lagos, Ogbeifun said the management of the refineries by the Federal Government does not create room for their effective management.  He said the development has made it difficult for the refineries to produce optimally.

    The refineries, Ogbeifun said, are managed by the Board of the Nigerian National Petroleum Corporation (NNPC), which is wholly owned by the Federal Government.

    Ogbeifun said: “In the event that the Federal Government hands off control of the refineries, the refineries would become truly commercialised. When this happens, it would be easier to review the legal foundation, which is the Act that set up the refineries.”

    He said refineries perform optimally in countries where their commercial operation is based on transparency and accountability, adding that state control of the refineries has limited the influence of the managing directors appointed to oversee them.

    He said: “How much of the activities do the managing directors of the refineries control? Is there any of the refineries that can embark on projects, without going through the cumbersome bottlenecks that might even end up on the table of Mr President? How could such refineries work optimally under these constraints and challenges?”

    According to him, the government cannot use the same strategies to solve the problems of the refineries year in, year out and expect a different result.

    Ogbeifun who is also the Chief Executive officer, African Institute for Transparency, Accountability and Responsible Leadership (AfriTAL),  said the repairs of the refineries go through bureaucratic channels, which he claimed affect their output. He noted that no meaningful refinery project has taken place in Nigeria in the last two years.

    He said factors within and outside the country are responsible for the problem, adding that the problems can only be solved through collaborations among stakeholders in the oil and gas value chain.

  • ‘We’re committed to boosting local content, indigenous capacity’

    Falcon Corporation, an indigenous conglomerate, has marked its 25 years of service in the Nigerian energy space and pledged to support local content growth. The celebration held in Lagos with key players in the petroleum industry.

    Falcon Corporation has reiterated its commitment to boosting local content and indigenous capacity. At the celebration of its 25 years of unbroken service delivery to the nation, the firm stated that since inception, it has maintained 100 per cent Nigerian workforce and to date maintains over 68 per cent spend on local products/services.

    According to the Managing Director/Chief Executive Officer, Professor Joe Ezigbo, the company had grown from a small service company 25 years ago to a conglomerate that significantly plays  in the oil and gas industry, fabrication and structural activities, natural gas distribution as well as delivery of pipelines and metering infrastructure.

    The 25 years anniversary tagged: A Night of Inspiration, brought together oil and gas industry bigwigs, policy makers, government officials, entrepreneurs and the firm’s customers.

    In his opening address, Professor Joe Ezigbo, said: “Today marks the continuation of our long tradition of excellence, quality and unparalleled service delivery to our customers. Our organisation was founded on the principles of integrity and innovation, with a vision to make a tangible impact and elevate the profile of private entrepreneurial development in Nigeria. We started in Port Harcourt from our humble beginning as an oil service company. Our change of operational base, scope of service and corporate name notwithstanding, our sound moral character, spirit of enterprise and excellence, resilience and commitment to creating long-term sustainable value have never wavered.

    “As we mark our 25 years of commitment to developing an indigenous great Nigerian brand, our spirit of enterprise, excellence and sound ethics has continued to pervade the very fabric of our business to date.

    “Falcon aims at being a strong player across the value chain of Nigeria’s energy sector. It is strategically positioned to create value-adding jobs for our ever-growing population of vibrant youths. From inception, we envisioned Falcon as it is today, we right now see a Falcon 25 years from now which will outlive its founders and soar high, launching into the international business landscape, comparable to global brands like Coca-Cola, Mercedes-Benz and Nike.”

    Also the Executive Director and Co-Founder, Falcon Corporation Limited, Mrs. Audrey Joe-Ezigbo, in her welcome address, relived the challenges the company faced in its early years but noted that it was doggedness and determination that kept the organisation going over the years. “The story of Falcon has been a journey of translating vision and passion into success. It is a journey of obligation to building Nigeria by Nigerians through intentionality, resilience, and dedication against all odds. We started Falcon with very little, but with sufficient  zeal, an undying dream and a sense of duty to establish an institution of repute, we have built a formidable organisation of repute and we remain committed to leaving a lasting legacy to the future generation,” she stated

    Audrey Joe-Ezigbo, who also serves as the President of the Nigerian Gas Association (NGA), the umbrella association for professionals and businesses in the Nigerian gas industry, emphasised that Falcon has made remarkable contribution to the development of Local content in Nigeria. “Falcon Corporation is fully committed to local content development aspirations of our nation. From inception, we have operated with a 100 per cent Nigerian workforce and to date maintain over 68 per cent spend on local products/services.

    “We consider our local experience to be a critical asset for the growth of our industry in a sustainable manner and a notable contribution by Falcon Corporation to national development. We are determined to continue to develop our competencies and capabilities even further and where appropriate, we are open to the creation of strategic alliances and joint ventures that are designed to enable us to achieve our growth targets. As we celebrate this milestone of 25 years, we are rededicating ourselves to that commitment as part of our contribution to nation building and national development” she said.

    A Director of Falcon Corporation, Mrs. Benedickter Molokwu, stated that Falcon has sound governance structure, which is one of the strong pillars on which the success of the organisation was built. “Falcon’s commitment to sound corporate governance in the conduct of business is apparent. The organisation projects a transparent and clear corporate governance structure which meets the highest international standards. There is confidence in the ability of its board of directors and management to carry out their duties within a well-defined corporate governance framework. Falcon has put in place a full Corporate Governance Code (CGC) which is in conformity with local and international codes of best practices with demonstrable impact in the company’s sound strategic business management and performance”

    According to Ben Akabueze, the Director-General of the Budget office, who was one of the distinguished guests at the event, “the Falcon 25th anniversary event lived up to its bill of “A Night of Inspiration”.. This organisation has demonstrated itself as a great inspiration for other visionary Nigerian business owners who in one way or the other are contributing to the remarkable growth of the natio m          n’s economy”

  • Ikeja Electric energises Obawole 15MVA injection substation

    Electricity customers in Obawole, Fagba and Iju environs, in Ifako-Ijaiye Local Government Area of Lagos State have started experiencing long hours of electricity supply following the commissioning of the Obawole 15MVA transformer injection substation by Ikeja Electric Plc (IE).

    The injection substation, which was commissioned at the weekend, will provide residents of the area and environs power supply for up to 18 hours daily. Residents of K-Fam Estate, Olowo area, the entire f Obawole community and Adisa Coker will get supply from the injection substation; other areas that will also benefit from the project include Ahmed Afolabi, Coker Onifufu, Ashabi Taiwo Streets and old Akute Road, among others.

    Speaking during the commissioning of the project in Lagos, the Managing Director and Chief Executive of Ikeja Electric Plc, Dr. Anthony Youdeowei, said the new injection substation would facilitate vast improvement in the quality of electricity supply to customers within the area, bringing to an end the poor supply of electricity hitherto experienced by residents.

    He said: “We embarked on this laudable project, which has gulped about N500million, with the aim of strengthening our network as well as enhancing improved electricity supply to residents of the area. This move has increased supply of power from the former two hours daily to 18 hours, with a view to finding a lasting solution to critical supply issues facing the community. This is in line with our commitment to our vision of provision of quality and reliable services to our customer.”

    He further disclosed that the company will go into the second phase of the project by radiating two feeders which will further improve power supply to new Oko-Oba, Unity Estate, Fagba, Babatunde Hassan, Awobona and Iju Road.

    Youdeowei explained that IE is committed to exceptional service delivery and that the company recently set up a dispute resolution panel to look into customer complaints emanating from the issues of estimated billing, noting that the company is doing its best to ensure a seamless integration of its vision for customer satisfaction

    He urged customers to continue to partner with Ikeja Electric for improved and qualitative services, especially with regard to regular payment of electricity bills, noting that payment of the huge outstanding debt owed Ikeja Electric by the community will go a long way in assisting the company to fulfill other obligations to its esteemed customers.

    In his remark, the Executive Chairman, Ifako-Ijaiye local council, Apostle Dr. Oloruntoba Oke, commended Ikeja Electric for making the project a priority, noting that with this development, these communities will enjoy economic boom. He also called for the extension of the project to other communities and charged members of the community and their leaders to ensure the protection of the facilities, to encourage the company to do more.

  • Seplat’s $700m gas investment to address power deficit’

    Seplat Petroleum Development Company Plc’s $700m Assa North/Ohaji South (ANOH) gas and condensate field project is expected to significantly help in bridging power gap in Nigeria when completed, the firm’s management has said.

    The ANOH project straddles oil mining lease (OML) 53 where Seplat is the operator and  holds t 40 per cent working interest and OML 21 owned by Shell Joint Venture.

    In a presentation entitled: ‘Stability, Performance, Growth,’ the management team provided comprehensive information on the company’s existing gas business, market outlook and anticipated ANOH growth trajectory.

    The ANOH gas processing project is managed by Anoh Gas Processing Company (AGPC), an incorporated joint venture (IJV) between Seplat and the  Nigerian Gas Company (AGPC) that will develop a 300 million standard cubic feet per day (Mscfd) of gas midstream plant on OML 53 to process future wet gas n from the oil fields.

    At the forum were the Chief Executive Officer, Mr. Austin Avuru; Chief Financial Officer, Mr. Roger Brown; and AGPC Managing Director, Mrs Yetunde Taiwo.

    Avuru, in his address, said Nigeria holds 37 per cent of total proven gas reserves on the continent, adding that the majority of the reserves is in the Niger Delta.

    According to him, Domestic Supply Obligation (DSO) price has increased to commercial levels and non- DSO prices are determined on a willing buyer/willing seller basis; opening up new vista of growth for the seplat’s gas business.

    The Seplat chief said: “Nigeria is one of the largest economies in Africa with a population in excess of 201 million; 50 per cent are urban dwellers while 62 per cent is less than 25 years in age and 93 per cent is  less than 55 years in age.

    “Projected to grow to a population of 450 million people by 2050 (highest population growth in Africa) and become the third most populated country globally (behind only China and India). This will spur a high demand from power industries and other commercial enterprises.

    “Current capacity deficit in thermal power generation provides immediate headroom to place additional gas volumes (significant installed but non-operating generation capacity seven per cent royalty on gas revenues as opposed to 20 per cent on oil production.”

    He said the government’s ambition of using gas as an enabler for energy independence, industrial development, commerce, environmental and social sustainability is a real GDP growth driver for Nigeria, and would reduce production cost, reduce power costs to businesses, raise standard of living, develop human capital and reduce environmental degradation and health risks.

    The AGPC, according to Roger, is a special purpose company formed to raise $420m of equity to derisk the project of which equity investors – Seplat and Nigeria Gas Company- granted equal share 50:50 in AGPC.

    The Seplat CFO illustrated that it is essential to correlate a company’s funding model and business model citing the company’s proactive pay back of its equity debt in the early years as a good example. remarkable, he said.

    Roger said equity and debt are to be scaled in line with final project cost whilst maintaining a target debt:equity ratio of 60:40.

    On the funding arrangement, Roger said local banks were on board the project including, but not limited to: UBA, Zenith, Stanbic, Fidelity, FCMB, FBN, Access Bank, Union Bank and Nova.

    He added: “International lenders include but not limited to: SCB, RMB, Standard Bank, BHGE, and Nedbank.”

    According to Taiwo, AGPC schedules synchronise with Seplat upstream development plan. The AGPC boss said: “ANOH is unitised 50:50 across the two blocks. Shell is the operator of the upstream unit. AGPC shall deliver a 300 MMscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.”

  • Nigeria will refine 900,000 bpd this year

    Barring any distortion in plans, Nigeria will be refining at least 900,000 barrels of oil per day (bpd) in the next 10 years. This was the submission of former Minister of State for Petroleum Resources, Dr Ibe Kachikwu.

    In an interview with reporters in Abuja, the ex minister said the country is capable of achieving the feat in view of the efforts made by the Federal Government to crude production and refining in the country.

    He said the country will be producing 650,000 barrels of crude oil per day from Dangote Petrochemical Refineries  soon, ditto getting another 250,000 bcpd from 10 modular refineries in the Niger Delta region during that period.

    Kachikwu said: ”The modular refinery, which was a concept we pushed in order to engender peace in the Niger-Delta region, is currently working successfully. Three modular refineries are nearing production, while seven of the refineries are at the verge of completing their Final Investment Destinations (FDIs) plans. So, if those 10 refineries come on board in the next two to five years, they will be providing 250,000 bpd.

    He added: “ This, when added to the output of  Dangote Petrochemical Refineries, which is expected to refine 650,000 bpd, will bring the total refining capacity of Nigeria to 900,000 bpd. I tend to look at the refineries from the perspective of the volumes they are producing, not physical assets.

    The refinery, Kachikwu said, is an export earner, adding that Nigeria needs to be able to supply product to meet the needs of countries in  West Africa,  East Africa and Southern Africa.

    He said he made  efforts to increase the country’ s crude output, by holding discussions with countries in the Gulf region on how to refine crude oil for Nigeria.

    “ I also made efforts to talk to the governments of countries in the Gulf Region such as Saudi Arabia, Qatar and China by trying to see whether they would be interested in coming in both for the purpose of building  refininery plants for Greenfield and Brownfield projects  and  the response has been positive,” he added.

    Nigeria, he said, is at the threshold of signing a Memorandum of Understsnding( MoU) with South Africa, which will cover refineries, as well as construction of pipelines and Liquefied Natural Gas( NLG) investment.

    On PIB, the former Petroleum Minister, said the Petroleum Industry Bill will enable  more investors come into the indudtry by widening spaces for them to contribute to the growth of the nation’s energy sector.

    The bill, he said, will also protect the rights of those who have been given licenses, adding that through this,  a safe operating environment will be created for investors.

    Raising funds, Kachikwu said, would be made easier once there is a safe environment in the Industry.

    He said the right to  make the country  proud behoves on all Nigerians, arguing that such idea would lead to the growth of the economy.

    Achieving this feat, Kachikwu argued, would not happen if the country is looking at the economic growth from  short term angle, adding that it was wrong on the part of Nigerians to conclude that the Federal Government has awarded oil blocks to some individuals in the last four yearrs.

    The government, he said, has not given licenses out for operators in the maginal fields, stressing that Mr President intends to sanitise the industry, before oil blocks are giving out to Nigerians, who would make good use of them.

  • GPPSL acquires equipment

    Global Process and Pipeline Services Limited (GPPSL), a Nigerian company focused solely on process and pipeline services, has acquired three massive flooding pumps with the capacity of 3,150 USG per minute and close to 600 PSI each, together with three massive lifting pump (6,000 USG/Min) each and other connections that go with the equipment spread.

    “They are high pressure, high volume and no other company can boast of such flooding pumps in West Africa”, chief executive officer of GPPSL, Obi Uzu, told select reporters on the sideline of the just concluded 2019 Nigerian Oil & Gas (NOG) conference and exhibition in Abuja.

    Nigeria is on the verge of completing the 48-inch pipeline – the Ajaokuta-Kaduna-Kano (AKK) pipeline, and there are also plans for another big pipeline project that will run from Nigeria to North Africa.

    “Those are massive projects that will need our kind of equipment. Besides there is also requirement for big pipeline services in-country”, Uzu said.

    GPPSL also acquired six Air Loaders, which include pneumatic suction pumps for cleaning of floating production, storage and offloading (FPSO) tanks. The FPSOs will require cleaning according to the Department of Petroleum Resources (DPR) related regulation.

    “We have gone ahead to make these massive investments to keep the game alive – those clients we have been working for are happy, but we want to make sure that they are happier with the services they are getting today  and in future compared to what they got in the past.”

    The GPPSL chief said the company is also investing in solid organizational process and sustainable human resources.

  • INTELS graduates 80 women under WEPSS

    INTELS Nigeria Limited, an Oil and gas logistics operator, has graduated 80 women under its Women Empowerment Programme Scheme Synergy (WEPSS).

    WEPSS, a Corporate Social Responsibility programme of INTELS, was established in 2013 with the vision of empowering 5,000 community women drawn from various parts of Nigeria over a 20-year period through training in fashion design and tailoring.

    So far, more than 1000 women drawn from various communities have been empowered through the project. The successful trainees are the first batch of beneficiaries admitted into the scheme last January.

    At the event, which held at the Federal Lighter Terminal, Onne, Rivers State, INTELS General Manager, Legal and Corporate Services, Mike Epelle, who represented the company’s Managing Director, expressed delight with the impact of the programme on beneficiaries since inception.

    He said: “This is a programme that the management of INTELS Nigeria Limited holds very dear to its heart. We are so proud and happy to know that this has continued right from the time it started and sustained up till date.

    “It was the dream of the wife of the founder of INTELS that there should be something like this set up for the women because it appears we have been paying too much attention to the men. So the idea is to have a balance. Let there be something that can be done for women and that is how this programme started.”

    He advised the beneficiaries to make necessary sacrifices required to put the skills they acquired during their training to good use.

    “Invest your earnings in the business. There will be enjoyment as the years go by but sustain and invest in the business. From the little you will start with, you can multiply and employ people. Look for the success stories, don’t let the training you have acquired here go down the drain. If you apply yourself well to what you have learnt and develop yourself even more, you will certainly be a success story.

    “Many people are making a huge living out of fashion; you can get there, just start and be consistent. Most of the establishments you hear about started many years ago and today have grown big,” he said.

    WEPSS Project Head, Nancy Freeborn, restating the company’s commitment to women empowerment, said apart from the tailoring skills acquired, the programme also inculcated “soft skills” including personal hygiene and how to run successful businesses after graduation.

    She said: “The skill you have been given is a gift from INTELS through the Women Empowerment Programme Scheme Synergy (WEPSS). That skill is what has allowed you to explore new ideas to create and to design. Make INTELS proud by putting into use the skills that you have acquired. It gives us a lot of joy when we go on our follow-up exercise and see people who are really putting into use the skill they have acquired.”

  • My scorecard, by Baru

    The immediate past Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Kacalla Baru, spent only three years in NNPC, having come on board in July 2016. Records, however, show that he left a landmark and guide for his successor, writes EMEKA UGWUANYI.

    On Monday last week, an elaborate valedictory was held for the immediate past Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Kacalla Baru.

    The event offered top oil and gas industry players, diplomatic corps, and others opportunity to assess Baru’s stewardship in the corporation.

    According to them, Baru, from the onset, was result-oriented and set out to achieve his objectives for the corporation.

    To reposition the NNPC and make its operations efficient, Baru, in September 2017, presented a 12 Business Focus Areas (BUFAs), where he intended to institutionalise efficiency, profitability and growth in the Corporation.  The 12 BUFAs included ensuring security of NNPC assets, developing new business models, settling Joint Venture (JV) cash call arrears, boosting production and reserve growth, growing crude oil production of NNPC’s exploration and production arm – the Nigerian Petroleum Development (NPDC) and gas development, developing renewable energy, focusing on frontier exploration undertaking oil and gas infrastructure development, developing new ventures, common services;  and professionalism, accountability and staff welfare.

    Recalling efforts made to actualise these goals, Baru stated that Nigeria’s crude oil average daily production recorded an upward swing of about 2.06million barrels last year, translating to a 10.75 per cent increment, compared to the 2017 average daily production of 1.86million barrels. Pitched against the low-level average daily crude oil production of 1.2million barrels in 2016 when he came on board.

    “Nigeria has maintained a line of consistent year-on-year improvement. I make bold to say that the crude oil production increment was facilitated through the new business models we emplaced in NNPC’s old and new business entitles. Among the reengineered entities of the corporation that have made the difference are the NPDC, Nigerian Gas Company (NGC), Petroleum Products Marketing Company (PPMC), Duke Oil, NIDAS and Integrated Data Services Limited (IDSL).

    “Indeed, NPDC was a major contributor to the industry’s success story in 2018, declaring 52 per cent daily crude oil production growth in 2018 compared with the company’s 2017 performance.  NPDC’s average production from the company’s operated assets alone grew from an average of 108,000 barrels of oil per day (bopd) in 2017 to 165,000bopd in 2018, a feat regarded as the strongest production growth within the oil industry in recent times.

    “The NPDC’s equity production share closed at over 207,000bopd, representing about 10 per cent of national daily production, was no less impressive. The company’s last average weekly production of 332,000 barrels per day makes the target of 500,000bopd for 2023 achievable. It is instructive to note that NPDC is now the largest supplier of gas to the domestic market, delivering over 700 million standard cubic feet per day (mmscfd) of gas to the Escravos-Lagos Pipeline System. These desired results were outcomes of initiatives emplaced by the management team under my purview. These initiatives include Asset Management Tea m (AMT) structure, Strategic Financing, Units Autonomy and security architecture framework.”

    He also noted the 200,000bopd crude oil addition by the Egina field, which began production this year, adding that NNPC management under his watch saved $1.7billion from renegotiating Cash Call arrears of $6.8billion to $5.1billion with the corporation’s Joint Venture partners. The balance is scheduled for repayment over a five-year tenor plan. Already, the corporation has defrayed $1.5billion of the arrears.

    He assured that NNPC would stick to the repayment deal with the JV partners as it transitions to self-funding Incorporated Joint Venture (IJV) model with the corporation’s partners. To ensure that the government did not default on cash call repayment agreement, the NNPC increased commitment to invest in the oil and gas industry, which has boosted the corporation’s credit profile internationally.

    Other achievements include reduction in contracting cycle for upstream operations to nine months from an average of 24 months, with the corporation targeting a six months cycle, lowering of production cost, from $27 per barrel to $22 per barrel and improving on the security situation in the Niger Delta through constructive engagement and dialogue with relevant stakeholders.

    Also, the NNPC has renewed focus on frontier basins leading to spud-in of Kolmani River-II Well on February 2, this year. Drilling on the well is nearing 10,000ft mark, even as the NNPC Frontier Exploration Services, the Division that superintends the inland basins exploration, recently moved to the Upstream Division of the corporation to afford it more visibility and empowerment to execute its mandate. The corporation also noted that activities were expected to resume in the Chad Basin as soon as there was green light on the security situation in the region.

    In the midstream sector, NNPC has helped in increasing average national daily gas production.  Last year, gas production was 7.90 billion standard cubic feet (bscf) as against 7.67bscf. Of the 7.90bscf produced in 2018, an average of 3.32bscfd (42 per cent) was supplied to the export market, 2.5bscfd (32 per cent) for reinjection/fuel gas, 1.3bscfd (16 per cent) was supplied to the domestic market and about 783mmscfd (10 per cent) was flared.

    Domestic gas supply capacity was marginally stable at about 1700mmscfd with an average of 1.3bscfd supplied to the domestic market due to power evacuation challenges caused by frequency management, following rejection of allocated load by distribution companies (DisCos) as well as transmission line constraints.  Of the 1.3bscfd supplied to the domestic market, an average of 71mmscfd went to the power sector, 470mmscfd supplied to the industries and the balance of 69mmscf delivered to the West African market through the West African Gas Pipeline (WAGP).

    Baru stated that NNPC is expected to bridge the medium-term domestic gas supply deficit by 2020 through the corporation’s Seven Critical Gas Development Projects (7CGDPS). A reputable project management consulting firm is collaborating with an NNPC team to achieve accelerated implementation of the 7CGDPS.  The full implementation of the project would boost domestic gas supply from about 1.5bscfd to 5bscfd by 2020, with a corresponding 500 per cent increase in power generation and stimulation of gas-based industrialisation, he added.

    According to data, the power plants in the country have a permanent gas supply pipeline infrastructure and NNPC is committed to continue to expand and integrate its gas pipeline network system to meet increasing domestic gas demand.  Key gas pipeline infrastructure projects on which significant progress had been made include Escravos-Lagos Pipeline System (ELPS II), Obiafu/Obrikom-Oben (OB3), Odidi-Warri Expansion Pipeline (OWEP), Trans Nigeria Pipeline Project (TNGP), Ajaokuta-Kaduan-Kano (AKK) Pipeline, Trans Nigeria Pipeline Project (TNGP) and Nigeria-Morocco Gas Pipeline (NGMP) Project.

    In the refinery sub-sector, Baru said the NNPC is committed to the rehabilitation of the nation’s three refineries in Port Harcourt, Kaduna and Warri, to boost their capacity utilisation. In March, the first phase of the rehabilitation of the 210,000 barrels per day capacity Port Harcourt Refinery complex that comprises the 60,000 barrels per day built in 1965 and the 150,000 barrels per day, new refinery, was kick-started. The project is being executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria. At the end of the phase one, the Refinery complex should reach 60 per cent capacity utilisation. This first phase of the rehabilitation contract, which would run for six months would involve detailed integrity check and equipment inspection of the beginning from end of March, this year.

    The integrity test comes as a forerunner to the second phase of the rehabilitation project, which entails a comprehensive revamp of the complex aimed at restoring the refinery to a minimum of 90 per cent capacity utilisation.

    Subject to the successful completion of the integrity checks, Phase two of the project would be executed on Engineering, Procurement and Construction (EPC) by Tecnimont, in collaboration with the original builders of the plant, JGC of Japan. The rehabilitation of the other two refineries in Kaduna and Warri is expected to follow.

    Baru noted that in the downstream sector, though early last year was riddled with some supply shortages, the corporation rose to the occasion with the support of President Muhammadu Buhari and the resilience and hard work of NNPC staff to keep the country wet soon after till date.

    So far, many of the corporation’s depots had been resuscitated and put into use through decanting of over 140 million litres of PMS (petrol) nationwide with the rehabilitated systems 2B and 2E pipelines supplying petroleum products to Southwest, Southsouth and Southeast regions.

    “NNPC is on track in respect of the corporation’s 12 key Business Focus Areas (BUFAs), and the vision of President Buhari to improve the status of oil and gas infrastructure through ensuring products availability to support national economic recovery and growth. The corporation will continue to plan for a better performance and achievement in 2019, especially with the continuous innovations and creativity in the downstream sector and the performance bond signed by all the relevant heads of the corporation’s operating units recently. Continuous improvement, a major plank of a world-class organisation, would remain NNPC’s key word in 2019, I assure you that our 2019 performance would dwarf the 2018’s,’’ Baru