Category: Energy

  • ‘Oil firms flared $2.5b worth of gas’

    Oil producing companies in Nigeria have flared gas worth $2.5billion (N875billion) in the last one year, The Nation has learnt.

    The firms include the International Oil Companies (IOCs), Independent Producers and the Nigerian Petroleum Development Company (NPDC).

    Data from the Department of Petroleum Resources (DPR), revealed that volume of gas that was not commercialised (flared or re-injected) in March 2019 alone rose to 42 per cent.

    Corroborating the DPR data, AfriPERA, an Energy and Infrastructure Policy research organisation, said that Nigeria lost an average of N875 billion ($2.5 billion) between March 2018 and March 2019 from gas flaring.

    The company’s Chief Executive Officer, Mr. Chinedu Onyeizu said, said the loss, was aside the unattended impact of negative externalities associated with gas flaring.

    “Since the 1950s, Nigeria has been burning off its natural gas at flare points and, despite efforts by successive administrations to curtail the wastage, the country loses an estimated 2.5 billion dollars each year to gas flaring as well as the unattended impact of negative externalities associated to gas flaring,’’ he said.

    Also, the Chairman, Oil Producers Trade Section (OPTS), Paul McGrath, explained in a reaction to gas production, that gas provides a unique opportunity to provide steady, widely-available, cost-effective and generally affordable power to Nigerians.

    He added that a shift to gas-fuelled power generation would represent significant savings opportunities over sources such as diesel, which is multiple times more expensive than gas at the current price of $2.5/mmbtu.

    Gas production, according to the DPR report, increased by 15.4per cent at 263.48billion cubic feet compared to the output in proceeding period of February 2019.

    This translated to an average daily production of 8,499.58 million standard cubic feet of gas per day (mmscfd). Out of the volume of gas supplied in March 2019, 155.01bcf of gas was commercialised, consisting of 40.35bcf, and 111.66bcf for the domestic and export markets.

    The report indicated that 58.81 per cent of the average daily gas produced was commercialised, while the balance of 41.19 was re-injected, used as upstream fuel gas or flared recorded gas flaring.

    The Senate had, on April 18, passed a new bill, which provided for a penalty against gas flaring and other malpractices in the oil and gas sector. Prior to this, Associated Gas Re-Injection Act of 1979 was in place to check sharp practices in the sector. Since then, there has been no review or amendment of the Act despite its devastating effect on the host communities, until April this year, when the Senate passed a new bill on gas flaring.

    One of the highlights of the new Bill is that any licensee who supplies inaccurate data to the Department of Petroleum Resources (DPR) or to any other lawful authority will be liable, upon conviction, to a fine of N10 million or be committed to prison for a term of six months or both.

    Other objectives of the Bill include ensuring that natural gas is not flared or vented in any oil and gas production operation, block or field, onshore or offshore, or any gas facility, which shall commence operations after the commencement of the Act.

    The Bill also seeks to ensure that no operator establishes an Oil and Gas facility in the country without first obtaining authorisation from the Minister for the design, commissioning and production phases. The Bill comprises 22 sections including sections on punishment for the supply of inaccurate data, the gas flaring penalty fee, powers of the minister to make regulations, as well as a repeal of the Associated Gas Re-injection Act 1979.

    Sponsor of the Bill, Senator Bassey Albert, said: “The approval of the long-awaited legislation on gas flaring after 40 years is one of the best parting gifts, the 8th Senate could possibly offer Nigerians at this time.”

  • Rungas, Egyptian firm, govt partner on $30m cylinder project

    An indigenous firm, Rungas Industries, has secured an executive partnership with the National Organisation for Military Production (NOMP) to produce and assist with the distribution of composite cylinders for Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG).

    The NOMP, (an affiliate of the Egyptian government), it was learnt, has already allocated 28,000 square metres of land for the $30 million project in Alexandria – home of the Egyptian Gas Industrial Park. The facility will be producing 200,000 LPG cylinders for domestic use (cooking) and 130,000 CNG cylinders for vehicles and automobiles.

    Rungas and Amtrol-Alfa Worthington of Portugal are providing the technology and technical knowhow to set up the type III LPG composite cylinder facility, which will be dedicated to domestic use, while the CNG cylinders produced will be used for vehicles across Egypt. Both products will be exported from Egypt to neighbouring Arab countries as well as serve the North and East African markets (benefiting from international trade agreements that are already in place).

    The Egyptian government has mandated Rungas and its partner United Group to set up the facilities after extensive product research was carried out and Amtrol facility in Portugal was visited by an Egyptian delegation to carry out a compliance inspection to ensure that cylinders met all standards for cylinder production in Egypt.

    National Organisation for Military Production Vice Chairman and Managing Director, Dr.  Hassan Ahmad Ab Elimagied, executed the contracts on behalf of Egyptian government and provided support verbally for the project.

    Rungas Group of Companies Chief Executive Officer, Mr Lanre Runsewe, said the partnership with the Egyptian firm coupled with the ongoing plans to set up a state-of-the-art LPG composite cylinder plant in Nigeria, would be a continental force.

    He said: “Rungas has been an agent of Amtrol Alfa- Worthington, promoting their LPG composite cylinders across West Africa sub-region, whilst operating an import and supply model. We have been supplying composite cylinders to oil majors and Independent retailers across 10 states of Nigeria. Our clients are Oando, MRS, Forte Oil, Ultimate Gas and Sublime, among others.”

    He said the company has approval from the Ghana Standards Authority to supply and distribute Amtrol LPG composite cylinders in Ghana and currently in the process of gaining regulatory approvals in Cameroon and Cote D’Ivoire.

    Runsewe advised that the Type IV CNG Composite Cylinders that would be produced would be the first of its kind in Africa, Asia and Middle East. The cylinders, according to him, would be in two sizes – the LPG cylinders would have a capacity of 60 litres for domestic use and the cylinders for the public vehicles would be 80 litres.

    “CNG is important for the Egyptian government because of the need to run on cleaner fuel and to meet IMF condition, which advised the country to reduce fuel subsidy,” Runsewe said.

    The Ministry of Armed Production has actually engaged with CNG operators, who currently import the product from India, China and Italy to embrace this new development.

    In addition to land contribution, the Egyptian government is also providing regulatory and off-take support while all funding and financial support for the project is being sourced through private equity. The raw materials to be used for the production are to be sourced locally from SIDPEC, which is the largest petrochemical company in Egypt – they are expected to supply a significant portion of the raw materials for both manufacturing lines, he added.

    According to Runsewe, the groundbreaking for the project would be in September and expects production of LPG cylinders to start within nine months from the groundbreaking while the launch of CNG composite cylinders is 18 months.

  • Seplat makes case for ANOH gas project at LSE

    Seplat Petroleum Development Company Plc has identified the Assa North-Ohaji South (ANOH) gas processing project as very bankable and capable of boosting Nigeria’s domestic gas supply.

    A Seplat team led by the company’s Chief Executive Officer, Mr. Austin Avuru, gave an in-depth presentation on the company’s gas business to investors, sector and financial analysts during its Capital Markets Day at the London Stock Exchange.

    Seplat’s Chief Financial Officer, Roger Brown said the forum was organised to appraise investors of the company’s gas business with emphasis on the ANOH gas processing project.

    In a presentation titled ‘Stability, Performance, Growth,’ the team of six presenters provided the audience with 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 shall develop a 300 Mscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.

    During his introductory presentation, vuru highlighted that the ANOH gas processing plant will be the first stand-alone midstream joint venture business between the Nigerian National petroleum Corporation (NNPC) and a company in the private sector.

    With the ANOH project, Seplat aims to be the largest supplier of gas to the domestic market. The Seplat CEO added: “By the time we commission the ANOH project, we will be able to produce 850 Mscfd.

    “Overall, the gas business was not attractive in 2010 and some years after. Seplat however took a conscious decision to invest in the gas business upon the price of gas inching up as ‘willing buyer willing seller’ commercial terms became possible. The company is uniquely situated within existing gas pipeline network, and therefore leveraged on this to significantly expand its Oben gas plant.

    “The revenue from the expanded Oben gas plant has been impressive motivating the company to seek further investment in gas.”

    He explained that the company’s gas is for the domestic market, saying that Nigeria has a notable population which is projected to continue to grow to 450 million people by 2050.

  • Nigeria ’ll fix refineries, says  Kyari

    The Nigerian National Petroleum Corporation (NNPC) will revamp the refineries  to improve fuel demands across the country, its Group Managing Director, Mr Mele Kyari, has said.

    He spoke at the sidelines of the 176th Meeting of Organisation of Petroleum Exporting Countries(OPEC) in Austria,Vienna.

    According to him, the national oil company would improve in-country refining of crude through multiple channels and collaboration, in

    order to enable Nigeria become a major exporter of fuel by 2020.

    In a statement from Vienna, Kyari said the country’s ability to drive its revenue depends on the right pricing of crude oil and increase in volume of production.

    He said the two factors play crucial roles in sustaining revenue generation of any oil producing country.

    He said NNPC would assist in improving security in the Niger-Delta,  engage communities in the region, among taking other measures to restore peace.

    He said Nigeria would continue to support the declaration of cooperation that has helped in restoring stability in the global oil market.

    Kyari said: ”Through the Declaration of Cooperation, greater stability is restored globally,  Nigeria believes that having the right price and volume can support our aspiration and ensure  a sustainable revenue generation.”

    According to him, a continuation of the declaration was the way to go, adding that the six-month extension issued by the Organisation of Petroleum Exporting Countries (OPEC) to member states was too short to curbing uncertainty and volatility which existed before the cooperation.

    “So, a nine-month extension is the way to go considering the objective of the declaration, that is why Nigeria supports the initiative and is also  grateful that big nations are committed to it,” he added.

    He said Nigeria’s participation at  the  OPEC meeting was to support the declaration of cooperation that has so far succeeded in restoration of global oil markets stability. Further to this, Nigeria’s hope is to secure appropriate quota for it cause export and optimal price.

  • Kyari: A reformer in the saddle

    The new helmsman at the Nigerian National Petroleum Corporation is arriving the NNPC Towers kitted with renewed vigour and determination to make a mark, having traversed the various spectrum of the corporation, reports Akinola Ajibade

    The appointment of the successor to Dr. Maikanti Baru, the outgoing Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kolo Kyari,  has continued to receive  commendation from operators and industry stakeholders alike.

    Widely acknowledged as a thoroughbred professional, the new NNPC helmsman is expected to reposition the fortunes of the nation’s cashcow and build on the achievements of Baru in a bid to growing the fortunes of the NNPC. As he settles down to his new role, himself having spent time in the Corporation, is expected to role-out  reforms directed at deregulating the sector and resolve the intractable issues surruonding the funtionality and efficiency of the nation’s refineries.

    Kyari, the Borno State born Geophysicist, is an expert in crude oil marketing and currently Nigeria’s Representative at the Organisation of Petroleum Exporting Countries (OPEC) where he provides leadership and participates in engagements relating to crude oil and gas production, as well as associated market issues.

    Kyari, seen by many as an inspirer, is considered at the NNPC Towers as a model servant leader whose actions motivate, empower and ginger others to produce at their optimum capacity. He is credited with the transformation of the management of the complex Crude oil Marketing of the nation’s crude oil through the establishment of world class systems and processes.

    Kyari, who has no affinity with President Buhari’s Chief of Staff, Abba Kyari, has put in over 27 years of service at the corporation. Those acquainted with him describe him as aresult-driven leader.

    Kyari, led a team that proposed and managed the Direct Sales and Direct Purchase (DSDP) arrangement of Petroleum products from 2016 to date a process that saved the nation $1 million in 2016 when compared with the previous crude SWAP arrangement with products.

    He also led various work teams in developing the Petroleum Industry Bill which ensured that Government’s take in the Production Sharing Contract Arrangement is greatly enhanced, and contributed immensely in  resolving  the  disputes with International  Oil  Companies  (IOCs) arising from the various interpretation issues with the PSCs averting claims of $9 billion dollars filed  by  the  IOCs.

    Beside his vast experience in the management of both Upstream  and  Downstream activities, he is said to possess a “a rare ability” in commercial decision making and is equally outstanding in his ability to manage International Oil Companies (IOCs), which had all been demonstrated in the course of his over 28 years illustrious career in the oil and gas sector.

    He started his carrier as a Field Geologist with the Department of Geological Survey of Nigeria. He joined NNPC in 1991 as a Processing Geophysicist with Integrated Data Services Limited (IDSL). In 1998 he was deployed to National Petroleum Investment Management Services (NAPIMS) and worked as an Exploration Geophysicist. In 2007, Mr. Kyari was given the role to head Production Sharing Contracts Management in Crude Oil Marketing Division (COMD).

    While in COMD, he displayed exceptional management qualities that led to his appointment in 2014 as General Manager, Crude Oil Stock Management and in 2015 he became Group General Manager, COMD, a    position he held till date. Mr. Kyari has attended several high- level leadership training both at home and overseas.

    His knowledge of the industry had projected positive image for Nigeria at various international fora where he presented papers that highlighted the enhanced and transparent National dealings in petroleum trades by the NNPC.

    Besides his professional accomplishments, Kyari has also been quietly working to make operations of the NNPC more transparent and accountable as the Corporation’s Focal person for the Open Government Initiative- a drive aimed at making governance more open and participatory.

    The procurement process he put in place for the DSDP (Direct Sale of Crude Oil and Direct Purchase of Petroleum Product) resulted in savings of over $1 billion every year since 2016.

    In addition, he is the Focal Person for NNPC’s Commodity Trading Initiative. This initiative makes it possible for Government to know those who are buying the country’s crude and at what prices, and how much has been made.He created effective systems to ensure maximum transparency and accountability of crude oil and gas sales in the industry. He has also restored sanity to the operations of Crude Oil & Gas Terminals owing to his leadership supervision.

    He is also a unionist, and many have cited his activism as a trade unionist as likely reason why he is an advocate for transparency. He is fondly called by other unionists as “grand chairman.”

    Kyari was born on the 8th of January 1965 in Maiduguri, Borno State. He attended Government Community Secondary School Biu in Borno State between 1977 to 1982. Mr. Kyari graduated from University of Maiduguri in 1987 with a Bachelor of Science in Geology.

    He was NNPC’s  former General Manager, Crude Oil Stock Management, 2014-2015. Kyari has also participated in various deepwater projects across the globe.

    Kyari was appointed by President Muhammadu Buhari to take over from Baru on July 7, as the 19th Group Managing Director of the national oil company.

    Having served for three years since July 2016, Baru has become the third longest serving group managing director of NNPC, after Dr. Jackson Gaius-Obaseki, and Dr. Funsho Kupolokun, since the return to civilian rule in 1999.

    With the appointment, the NNPC has produced 10 group managing directors since 2008 and none, except Baru, stayed in office for up to two and a half years. NNPC’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who disclosed the appointment of Kyari, added that Buhari also appointed alongside Kyari, seven new Chief Operating Officers (COOs) for the corporation.

    Stakeholders’ Expectations

    To the Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mazi Bank-Anthony Okoroafor, Kyari’s background as a geologists would be a plus in governments plan to achieve and exceed 40 billion barrel reserves and daily production of four million barrels.

    According to Okoroafor, how the new NNPC boss drives the industry and his vision for the industry would determine if he would actualise the government aspirations.

    Read Also: Six things you probably didn’t know about new NNPC GMD

    He advised Kyari to in the first 100 days make Local Content a national agenda, get a team to brainstorm how to use oil and gas as engine for economic transformation of Nigeria, lobby Mr President to sign PIGB as amended, get a team to brainstorm and set road map for 40m barrels reserve and 4m bopd, work with the ministry/dpr to accelerate the renewal of soon-to-expire licenses for oil blocks, and also create new concessions for the unallocated 53 deepwater blocks, since the last bid round was 12 years ago, among others.

    “Mele should clear uncertainties around commercial frameworks and make room for attractive fiscals and regulatory regimes to pull investors. The NNPC should approve and escalate to other projects, the proposed framework between itself and operators on OML118. Government should assent to and speedily sign the PIGB (Petroleum Industry Governance Bill), PIFB (Petroleum Industry Fiscal Bill), PIAB (Petroleum Industry Administration Bill) and the PHICDB (Petroleum Host and Impacted Community Development Bill),” he said.

    Also, the Niger Delta Oil Monitoring body, South South Reawakening Group (SSRG) commended the president over th appointment.

    The group, in a statement signed by its Convener, Mr. Joseph Ambakederimo, noted that the appointment of Kyari was well thought out by President Buhari to bring transparency into the nation’s oil company.

    “As President Buhari begins his second tenure in office we make bold to say that the future looks good and it is becoming glaring that he has opened the floodgate of appointments with professionals and incorruptible persons to occupy key positions of critical institutions that are core to the economic mainstay of the nation.

    “This is manifest in the just appointed Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kolo Kyari. We want to applaud the President for his foresight in picking Kyari whom we would describe as a “round peg in a round hole”.

    The SSRG however urged the new GMD to live up to the expectations of Nigerians and the President for giving him the opportunity to showcase the skills that he brought to bear in the transformation of the crude oil marketing department noting that “his output in the crude oil marketing department was extraordinary.

    “He brought an age long experience to bear and turn around the crude oil marketing division. The crude oil marketing division was made possible by Mr Mele kyari who embraced modern technology and transparency. We believe the same strategy would be employed to reposition the NNPC and it’s subsidiaries to the path of profit making like it’s counterparts in other countries”, it added.

    The Executive Secretary of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), Mr. Femi Adewole, said  NNPC under Kyari should provide a level-playing field for all the marketers to compete. According to him, Kyari, as the representative of the federal government in the oil and gas industry should also ensure quick deregulation of the downstream sector.

    “Since he represents the federal government in this industry, he should create a level-playing field for all the marketers to compete. What do I mean by that? The NNPC gives major marketers petroleum products on credit. I am not saying that all DAPPMA members deserve to be given on credit but many DAPPMA members have the capacity and should also be given on credit. When NNPC deliver cargoes to the major marketers, they should also deliver to the DAPPMA members. He should also ensure that the sector is quickly deregulated,” Adewole explained.

    Some other operators in the downstream sector, have also urged the new NNPC boss to introduce reforms that will deregulate the sector and resolve the problems of the refineries.

    “Downstream operators are bleeding because of the monopolistic market. If he continues as the sole supplier of petroleum products, the sector will continue to suffer. Deregulation is the answer to the challenges facing the sector,” said a CEO of one of the oil marketing companies.

  • CPC condemns group disconnection of electricity consumers

    The Federal Competition and Consumer Protection Commission (FCCPC) has condemned the widespread disconnection of electricity consumers by the electricity distribution companies (DisCos) and called for increased metering to curb estimated billings.

    The Commission’s Chief Executive, Babatunde Irukera,  said this at the customers’ engagement Town Hall meeting on electricity at Eko Electricity Distribution Company (EKEDC) in Lagos.

    Irukera said there was no justification for group, or widespread disconnection of electricity consumers where some of the consumers might have paid their bills.

    He said: “There is absolutely no reason for any distribution company to disconnect consumers on the account of “group disconnection” no matter what the case may be. We (FCCPC) will continue to push for elimination of this unfriendly and aggressive attitude of DisCos.”

    Irukera said the objective of the town hall meeting was necessary to engage electricity consumers directly to facilitate dialogues and proffering solution to difficult consumer issues on electricity.

    He said the meeting would enable it fashion out ways to listen and address their complaints in a civilised and mature manner.

    According to him, the group disconnection of consumers of electricity without consideration for those paying their bills is an abuse of consumers’ rights.

    “We expect DisCos to hear consumers’ complaints and understand their grievances in other to improve their service delivery. There is no justification for billing consumers for power that was not received or consumed on estimations.

    “Estimated billing is an abuse. We use to have estimated billing in Nigeria before the DisCos came on board and it was not as contentious and discriminating as we have it now,” he said.

    The FCCPC boss said that consumers refuse to pay their bills because the estimated billing system has become arbitrary and crazy, which makes consumers to stage protest.

    He urged DisCos to follow the estimated billing methodology in the law, which makes it rational and reasonable, adding that there is need for DisCos to aggressively revamp metering schemes in their network to fully address consumers challenges.

    Irukera said: “DisCos should be responsive and sensitive in addressing consumers’ complaints.  I expect Eko DisCo to build on its effective metering scheme and create transparency in addressing estimated billing.

  • TCN plans demolition of buildings on right of way

    Many communities in Ogun State are under threats of having their buildings demolished for erecting them on the Right of Ways (RoWs) of the Transmission Company of Nigeria(TCN), it was learnt.

    The affected communities: Papalanto, Ibogun, Ogijo, Sagamu (Ogun State) and Badagry (Lagos State) will, however, be compensated, as TCN is finalising plans to that effect.

    The structures under power lines, it was learnt, are believed to be frustrating efforts made by the TCN to build power lines and sub-stations, which would help in evacuating electricity from Olorunsogo Power Plant to residents of the communities.

    Olorunsogo Gas Turbine Plant has an installed capacity of 335 megawatts (Mw) of electricity and is located 17 kilometers to Papalanto in Obafemi Owode Local Government Area of Ogun State.

    The Nation’s investigation revealed that the plant is yet to produce at its optimal level, thus affecting the socio-economic activities in the affected communities.

    A visit to  Igbogun in Ifo Local Government Area of Ogun state, by The Nation, showed how residents were bemoaning their condition, saying they were not certain when TCN  would compensate them since their houses have been marked for demolition.

    TCN’s General Manager (Public Affairs), Mrs Ndidi Mbah, said the agency was working to improve the conditions of the people, saying the company has fashioned out modalities on how the communities will be compensated.

    She said property owners have been asked to compile names and submit their account numbers, so as to enable the agency pay them.

    According to her, the Federal Government is working to meet the energy needs of its people, as it has built power plants, sub-stations and imported transmission equipment into the country.

    The equipment, Mrs. Mbah said, must be put to work for the government, to achieve its goal of improving electricity generation, distribution and transmission.

    The TCN, she said, has landed properties across the country in order to realise its goal of improving electricity supply nationwide.

    The Federal Government ‘s aspiration of improving power supply, she said, can be achieved when Nigerians are able co-operate with the government.

    Ndidi said: “Communities should desist from infringing on the Right of Ways of the government, or its agencies. By this, communities should not build on the Right of Ways of the government’s agency. For record purpose, TCN’s goal is to help improve supply of electricity nationwide not to witch-hunt Nigerians.

    “We at TCN will only demolish communities that built on our Right of Ways. The government, no doubt, is committed to the issue of improving generation, transmission and distribution of electricity in the country. This is evident by the number of sub-stations that were commissioned by the Federal Government in recent times.’’

    The government, she said, conducted an Environmental Impact Assessment Programme (EIA), with a view to knowing the effects of building power lines in those communities, adding that the TCN marked the buildings for demolition immediately after the programme.

    Also, an official of Adefila &Partners, a firm of Estate valuers, Dapo Olanipekun, said the government should follow due diligence whenever its comes to demolition of properties that are built on its Right of Ways and subsequent payment to the victims.

    Adefila & Partners was hired, by the communities, with a view to ensuring that adequate compensation is paid to the affected communities.

    He said the constitution is explicit on issues such as land usage, Right of Ways and others, adding that the Federal Government has a considerable level of control over lands.

    He said the power lines may likely run through three areas namely Ejio, Ogijo and Badagry, adding that the areas were separated by several kilometers.

    ‘’Given this description, the areas or communities that are going to be demolished by TCN, in order  to pave the way for the construction of pipelines should be more than one hundred. The project is massive and requires due diligence, which the Federal Government and Japan International Energy Cooperation (JICA) have given it. I strongly believe that the government would pay compensation, therefore, the communities need to exercise patience,’’ he said.

    Also, Community Development Association (CDA) Chairman, Top City Estate in Ibogun,  Samson Adeyemi, holds similar views. According to him, the TCN has promised to pay compensation to landlords in Ibogun and other communities. He urged the government to hasten the process.

    He said residents are expecting compensation from the government, arguing that the planned demolition of buildings by the TCN has slowed economic activities in the areas. He said many have abandoned work on their sites, while others have sold their houses  cheaply.

  • Rungas, Egyptian firm, govt partner on $30m cylinder project

    An indigenous firm, Rungas Industries, has secured an executive partnership with the National Organisation for Military Production (NOMP) to produce and assist with the distribution of composite cylinders for Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG).

    The NOMP, (an affiliate of the Egyptian government), it was learnt, has already allocated 28,000 square metres of land for the $30 million project in Alexandria – home of the Egyptian Gas Industrial Park. The facility will be producing 200,000 LPG cylinders for domestic use (cooking) and 130,000 CNG cylinders for vehicles and automobiles.

    Rungas and Amtrol-Alfa Worthington of Portugal are providing the technology and technical knowhow to set up the type III LPG composite cylinder facility, which will be dedicated to domestic use, while the CNG cylinders produced will be used for vehicles across Egypt. Both products will be exported from Egypt to neighbouring Arab countries as well as serve the North and East African markets (benefiting from international trade agreements that are already in place).

    The Egyptian government has mandated Rungas and its partner United Group to set up the facilities after extensive product research was carried out and Amtrol facility in Portugal was visited by an Egyptian delegation to carry out a compliance inspection to ensure that cylinders met all standards for cylinder production in Egypt.

    National Organisation for Military Production Vice Chairman and Managing Director, Dr.  Hassan Ahmad Ab Elimagied, executed the contracts on behalf of Egyptian government and provided support verbally for the project.

    Rungas Group of Companies Chief Executive Officer, Mr Lanre Runsewe, said the partnership with the Egyptian firm coupled with the ongoing plans to set up a state-of-the-art LPG composite cylinder plant in Nigeria, would be a continental force.

    He said: “Rungas has been an agent of Amtrol Alfa- Worthington, promoting their LPG composite cylinders across West Africa sub-region, whilst operating an import and supply model. We have been supplying composite cylinders to oil majors and Independent retailers across 10 states of Nigeria. Our clients are Oando, MRS, Forte Oil, Ultimate Gas and Sublime, among others.”

    He said the company has approval from the Ghana Standards Authority to supply and distribute Amtrol LPG composite cylinders in Ghana and currently in the process of gaining regulatory approvals in Cameroon and Cote D’Ivoire.

    Runsewe advised that the Type IV CNG Composite Cylinders that would be produced would be the first of its kind in Africa, Asia and Middle East. The cylinders, according to him, would be in two sizes – the LPG cylinders would have a capacity of 60 litres for domestic use and the cylinders for the public vehicles would be 80 litres.

    “CNG is important for the Egyptian government because of the need to run on cleaner fuel and to meet IMF condition, which advised the country to reduce fuel subsidy,” Runsewe said.

    The Ministry of Armed Production has actually engaged with CNG operators, who currently import the product from India, China and Italy to embrace this new development.

    In addition to land contribution, the Egyptian government is also providing regulatory and off-take support while all funding and financial support for the project is being sourced through private equity. The raw materials to be used for the production are to be sourced locally from SIDPEC, which is the largest petrochemical company in Egypt – they are expected to supply a significant portion of the raw materials for both manufacturing lines, he added.

    According to Runsewe, the groundbreaking for the project would be in September and expects production of LPG cylinders to start within nine months from the groundbreaking while the launch of CNG composite cylinders is 18 months.

  • INTELS graduates 80 women under WEPSS

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

    Speaking at the graduation ceremony held at the Federal Lighter Terminal, Onne, Rivers State on at the weekend, the General Manager, Legal and Corporate Services of INTELS Nigeria Limited, Mr. 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 establishment you hear about started many years ago and today have grown big,” he said.

    In her remarks, WEPSS Project Head, Nancy Freeborn, while restating the company’s commitment to women empowerment, said that 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.”

    26 years old Esther Osarodanwi, who emerged the best performing beneficiary was provided with a start-up kit which include an industrial sewing machine, steam iron, chair, scissors, seam ripper, box of tailors’ chalk and a measuring tape.

    Osarodanwi, who broke down in tears while receiving her certificate and the start-up kits, showered encomiums on the management of INTELS for impacting positively on women through the acclaimed empowerment scheme.

    She said the skill acquired during the training has helped develop her passion for tailoring and fashion design.

  • Can oil resumption in Ogoni happen without war? (2)

    Was the clean-up a Greek gift?

    President Muhammadu Buhari’s announcement of his administration’s decision to implement the environmental clean-up caused great euphoria across Ogoniland. It was nonetheless accepted with caution if not skepticism by some people. Many Ogonis thought of it as a Greek gift.

    The handling of the clean-up exercise coupled with the opaque operations of Hydrocarbon Pollution Remediation Project (HYPREP) has made the clean-up project appear like fading gossamer.

    The view that behind the actions of the present government is the desire to resume oil exploitation has been in the air; a premonition born out of conjectures.

    But while Ogoni people are still wondering if they can trust the government under Buhari to redress the years of environmental and economic injustices, a memo signed by Abba Kyari, the Chief of Staff to the President was leaked to the public.

    The memo directs the Nigerian National Petroleum Corporation (NNPC) to takeover OML 11. It ask NNPC’s production subsidiary to resume oil production in Ogoniland on a determined date.

    The news has put paid to all speculations that the “flag off” of the clean-up project was to pull wool over the eyes of the Ogonis. A detour aimed at cajoling them to remove the seals on the oil in their domain. The clean-up is now viewed with as a political move and, a platform for some politicians and elite class to continue their shenanigan. The surreptitious manner in which the information of plans by the government got leaked has led to a lot of speculations and suspicion in Ogoniland.

    Past Experiences:

    In the first part of this article, it was stated that the resistance against the resumption of oil operation bears some psychological and sociological value to the people. It is not arrogance that the Ogonis take pride in their “psychological victory”. The ability to resist oil production since 1993 is to keep their honour in a fight that they lost badly against Shell and Nigeria. Ogoni oil in the ground is a bargaining chip of last resort.

    But one equally understands if the nation-state sees the action as an effrontery. Nigeria did not envisage that an insignificant and once conquered group as the Ogonis, who were barely known beyond sections of the country, have stopped the flow of petro-dollar for 26 unbroken years.

    At a production capacity of 30, 000 barrels per day multiply by 365 days multiply by 26 years and, calculated at a profit margin of $5 per barrel, we would all agree that both the government and Shell have lost a whopping sum of money.

    But by the same token, we should imagine how much that had carted away from Ogoni soil in 30 years before 1993. Add that to what would have been taken over the 26 years of non-operation, and compared same against the excruciating poverty amongst Ogoni people.

    Ogoni did not only shock Nigeria and Shell because of the courage to stop oil production activities for this long as they also fear the ripple effects. Government and other International Oil companies (IOCs) would not want the Ogoni example replicated.

    It will signal disaster for Nigeria if the “keep-the-oil” in the ground is repeated across Niger Delta. No right thinking person is under the illusion that government and Shell will accept the resistance of the Ogonis without a fight, even the Ogonis have always known that they have never heard the last from the government and Shell.

    The patience for two decades and half is because government and Shell have been watching, monitoring, hoping, plotting and anticipating that the Ogonis will either let down their guard or have a change of heart.

    The regimes before Buhari have made efforts to recapture the oil wells. They did everything possible to make the pipelines to steam again. Even Gen. Sani Abacha could not wait for the remains of Ken Saro-Wiwa and his compatriots to decay when he tried to bring back Shell to Ogoni.

    READ ALSO: Court declines request to stop Aiteo’s renewal of OML 29 license

    Having stroke fear into the elites with the manner in which Ogoni 9 were killed, he dangled carrots and wailed sticks. With his mischievous goggle, some Ogoni leaders were harangued to kowtow to his whims and caprices.

    At the demise of Abacha, Gen. Abdulsalaami Abubakar (Rtd) came with an approach underscored by subliminal messages and subtlety. There were attempts to plant seeds of discord amongst Ogoni. After him came Olusegun Obasanjo who built on what his Abubakar started.

    Obasanjo took his predecessor’s strategy further by adding pacification and placation to subtlety. As a former military leader who re-emerged as in civilian apparel, Obasanjo was as civil as his political ego could be boosted yet, intimidating when he perceived that the resilience of the Ogoni people thwarted his agenda.

    The persecution which the Ogonis suffered under Abacha received prominence at the Oputa Panel for two reasons. Firstly, Obsanjo wanted to further demonised Abacha. Secondly, to sell a dummy to the Ogonis that he should be trusted, he visited Ogoniland and commissioned a Peace Centre sponsored by his government. He appointed a few Ogonis including Ken Wiwa Jnr, the son of Ken Saro-Wiwa; into his administration.

    Obasnjo’s regime authorised the Environmental Assessment to be carried out by United Nations Environment Programme (UNEP), which is the precursor of the flagged-off clean-up project. On the surface, these are progressive steps, but, it emerged that the objective was to pave the way for the resumption of oil production.

    After Obasanjo came President Musa Yar’Adu whose approach was guided by his educational and progressive political leaning. Yar’Adua tempered his administration’s interest with moderation and pragmatism. In his response to a question by this writer during a visit to Cape Town, South Africa, the late president said that the relationship between the Ogonis and Shell has broken down.

    Those close to the former president still maintain that the Niger Delta Amnesty Programme was one of the steps to address the Niger Delta agitation broadly. But when his successor took over, the programme was almost reduced to some kind of reparation for the Ijaw ethnic nationality.

    Close associates of Goodluck Jonathan twisted the programme as their own reward for taking up arms. It was more of a privilege than a right for non-Ijaws to be enlisted into training programmes.

    It was worse for the Ogonis as their nonviolent and ideologically approach did not count much – amnesty was seen as something designed for militants for carrying arms – as against ideology – taunted and spoken of only as a euphemism for cowardice.

    Politics of Exclusion:

    Once Jonathan ascended the throne, he was cornered as an Ijaw-president. That Ogonis took risk against lethal weapon of military government was ignored. Cold water was poured on several cry for the implementation of the recommendations made by the UNEP.

    The failure by Jonathan is a bitter pill that Ogonis find difficult to swallow. Jonathan’s action or inaction was insensitive to the brutality, subjugation, oppression and years of economic strangulations, political marginalisation and environmental degradation suffered by Ogonis. Jonathan, who is from the Niger Delta, did not demonstrate empathy enough to implement the UNEP recommendation.

    Allies of President Jonathan were blunt the environmental clean-up cannot start from Ogoniland. It was stated that unless the clean-up will be escalated and extrapolated to cover some other areas in the region, the clean-up would not be allowed to happen.

    The Ogonis were not and are never against the idea, except that the environmental assessment which determines the planned clean-up took place in Ogoni territory; only recommendation made by a United Nations Fact Finding Team in 1996.

    It is therefore not in the hands of the Ogonis to determine any substantial alteration and/or expansion of the clean-up to cover other territories in the region – if anything, it was in the hand of the government under Jonathan to start in Ogoni and, then cause it to be expanded to reach other places.

    Also under Jonathan, another narrative that gain currency was why would the Ogonis benefit from the proceeds of oil drilled from other tribes whereas oil their territory remained sealed? The third experience of the Ogonis during Jonathan was the unwarranted and unprovoked invasion and occupation of some Ogoni villages by militia groups from Okirika, an action reminiscent of the attacks which the military instigated against the Ogonis in 1993/4.

    Muhammadu Buhari as a candidate of the APC did his home- work, capitalised on the pain and vulnerability of the Ogonis. He visited Ogoniland in person and vowed to implement the UNEP Report. In the bid to keep his campaign promise to the Ogonis, Buhari, represented by his Vice, Professor Yomi Osibadjo came to Bodo in 2016 to “flag off” the project.

    The mere announcement or the “flag off” of the project made the Ogoni group to have a great sense of relief. But with hindsight, the Ogoni are asking if they were too quick to rejoice?

    Many voices but one cause

    But with the information contained in the leaked memo signed by Chief of Staff to the president, the tension in Ogoni is heightening. The stories in town are similar to the kind of stories that were heard during the era of Abdulsalaami Abubakar.

    Stories of attempted secret discussions facilitated by some religious leaders and held outside Nigeria in 1998/9, which almost marred the unity of purpose. Ogoni struggle has never been able to regain the kind of united front it kept against Abacha since then.

    The bad blood spread into the refugee camps in Benin Republic and amongst activists that had relocated to other countries like USA, Canada and United Kingdom.

    If past experiences were to be the yardsticks and the current wave of speculations are used to judge the leaked memo, those interested in the oil are beating a drum of war and not of marriage.

    Ogonis might disagree on many things but Ken Saro-Wiwa managed to bind them together on the basis of collective affirmation of their indigenousness. Ken Saro-Wiwa used his pen to engrave the philosophy of one ecology one destiny in the minds of Ogonis.

    By the time Ken Saro-Wiwa and his comrades walked up to the gallows, they died knowing that Ogoni people believe that their geo-seismic configuration is an instrument of collectivism. The Ogoni 9 died leaving Ogoni people with the understanding that their environment is unique.

    They made Ogoni people to know that every village and town contribute to the flow of crude. The Ogoni 9 were forced to bid farewell without raising their hands, but, they died in assurance that they have taught their people to believe that Ogoni oil might be drilled from certain points but its impacts is borne by all.

    But what we hear now shows that the government is going about the resumption of oil in Ogoni clandestinely. Manoeuvres and manipulations with the intent to ignite a strange geo-clannish-political orientation will set the land aflame. The situation is so tensed that people are beginning to believe that communities where oil wells are located would be armed against communities where there are no drilling points.

    It is on the ground of the situation in Ogoni: whether the rumours are true or false, whether the fears are imaginary or real, whether the concerns are genuine or not, whether the strings of speculations are mere perception, unfounded or not, and, especially against the backdrop that Ogoni has experienced historical haemorrhage, cruel exploitation, economic smiting and political battering; the present government should deal with Ogonis with utmost transparency.

    The government needs to give Ogoni people the confidence to lie down without fears. After all, an Ogoni adage says, he who picks lice from the body of a dog should show it to the dog. This article is written; to ask and answer one question: can the resumption of oil drilling in Ogoni not happen without causing another round of violence?

    The next part of the article articulate a solution for the government, something that they can do, they should do and must do; to ensure a win-win for all parties.

    Wuganaale, a Sustainable Development Consultant, is based in Cape Town, South Africa. He is a writer and Senior Pastor of Altar of Liberation, Coordinator of Hands of Nehemiah International, CEO of Sirabari Investment Pty Limited, CEO Nigerian Transformation Movement, he is also an activists and Expert in Developmental Theology.