The Nation Newspaper

Category: Energy

  • TCN explains collapse of national grid

    The Transmission Company of Nigeria (TCN) said the collapse of the National Grid on May 8, at 2:32p.m was caused by a multiple tripping on its substation in Onitsha, Anambra.

    The Managing Director of TCN, Mr Mohammed Usman, made the disclosure at a news conference in Abuja on Friday.

    The national electricity grid had on Wednesday, experienced some disturbances resulting in reduction of electricity allocation to electricity distribution companies in the country.

    Mohammed also said that the collapse may also have been triggered because one of the generators went off.

    “What happened a day before yesterday at 14;32 hours was a case of system collapse, we had tripping.

    “The reason for the grid collapse was that there was a multiple tripping around Onitsha substation. We are also suspecting that one of the generators went out.

    “We have sent our team of engineers to go and investigate, we normally investigate this kind of disturbances,’’ he said.

    He however, said that in spite of the fragile nature of the nation’s power grid, TCN had achieved some level of stability on the national grid.

    “Although, we have achieved some level of stability on the grid through the massive investment that we have done in the last two years.

    “It does not mean that our grid has become disturbance free, because our grid is still very fragile. It is a journey that we are in that will take us to have a modern and stabilised grid.

    “You remember, I had told you that we need to achieve four important things to have a stabilised grid.

    “ We need to have critical investment in lines and substations so that we put N-1 across the country, that will ensure that any equipment that goes out at any point in time will not affect supply on that area.

    “For example, what happened in Apo recently, where we had a transformer that got burnt, we restored supply in two hours, because we had N-1 in that substation and that is what we are trying to achieve in all the country,” he said.

    He said the company had raised 1.6 billion dollars for investment in lines and transmissions saying that attainment of the required investments in transmission would take some time.

    “It is not what we will do in one day; the investment project for northern corridor transmission project, we just advertised; the one for Abuja, transmission project, we just signed, the one for Lagos and Ogun transmission project, we are about to launch the procurement process.

    “The one for World Bank, we just launched the project, but the equipment has not arrived, so we are on a journey,’’ he said.

    Mohammed said that there was urgent need to have a functional SCADA in the power sector to monitor activities on the national grid.

    “If we have a functional SCADA, it will show clearly what happened on the grid, and that is why we in TCN, deployment of SCADA is not an option, we have to deploy it.

    “Because for us to have modern grid you need to have a functional SCADA, but management of the grid,’’ he said.

    He said there was also urgent need to have a commensurate investment on the distribution chain to ensure a stable grid in the country. (NAN)

  • ‘Upstream firms need to leverage PIGB for growth’

    Nigeria’s upstream companies should leverage the opportunities in the Petroleum  Industry Governance Bill (PIGB) for growth or fail to record appreciable progress in the industry, stakeholders have said. The bill, which was passed March last year, has not been assented by the president.

    The firms include Addax Oil, Seplat, Total, Shell and others, that have a considerable hold on the operation of the upstream segment of the industry.

    The stakeholders, including Director of Information at the Centre for Energy Studies, Port Harcourt Prof Wunmi Iledare, and a former Country’s President, International Association of Energy Economists (AIEE) Prof Adeola Akinnisiju, who spoke with The Nation on phone, at the weekend, said the bill is meant to provide solutions to problems of corruption, absence of transparency, wrongful award of contracts  and other sharp practices that have pervaded the nation’s oil and gas industry.

    According to Iledare, when the bill is eventually assented and implemented by the government, activities in the industry would be more transparent, adding that  shady deals in oil services management  would be a thing of the past.

    He said when this happens, accessing funds for operation would be easier for operators  in the upstream segment of the oil industry, urging operators to look beyond Federal Government appropriations bills in their quest to foster growth. He added that they should instead focus on the PIGB once it fully comes on stream.

    According to him, despite the increase in the 2019 budget by the Senate from N8.3 trillion to N8.19 trillion, operators in the upstream segment would not achieve the growth until they make good use of the bill.

    He said although provisions were made for the power, oil and gas and other critical sectors, operators in the upstream need to leverage the PIGB for growth.

    Iledare said: “Without doubts, there are allocations for the oil and gas sector through the Nigerian National Petroleum Corporation (NNPC). Yet operators have to devise means of raising funds in a more transparent manners as  stated in the Petroleum Industry Governance Bill. Direcedd or Indirectly, companies in the key sectors like oil and gas  would derive some benefits from the national budget, but that is not enough, if considerable progress is going to be achieved.

    He noted problems such as decayed infrastructural facilities, dwindling fortunes and low productivity occasioned caused by restiveness in the oil producing areas of Niger Delta, have impacted  negatively on the industry, stressing that the infustry can still achieve growth through a well implemented PIGB.

    The PIGB, he said, would addressed issues such as fusion  of roles by the NNPC, adding that there must be  a clear distinction between the commercial and regulatory roles of NNPC.

    Iledare said: ‘’ PIGB would help in separating the policy role of the NNPC from its regulatory and commercial roles. When  this happens, corruption and other issues that pervaded the sector would become a thing of the past. This is a clear departure from the past, when contracts were given on the basis of one’s closeness to the government. When commercial and regulatory roles of NNPC are separated by the PIGB, NNPC would not have problem to seek funds for implementation of projects,‘’ he said.

    He said budget passage is not all that relevant to the oil and gas industry, especially upstream operators, because the critical funding of exploration and production activities does not come through budget appropriation, but through implementation of the provisions of the petroleum industry governance bill passed in 2018.

    The Senate’s decision to pass the budget, Iledare said, was a good omen for the country as the development would up the process of governance in Nigeria. He argued that growth in the economy is anchored on appropriate use of the budget.

    According to Akinnisiju, the  PIGB would address problems besetting the growth of the oil and gas industry. He advised stakeholders, including government, to ensure that the bill is assented and implemented.

    ‘’Lack of transparency in the oil and gas industry breeds corruption. This is evident by the ways and manners in which contracts were issued and implemented. In most cases, due process was not followed, a development which has negatively impacted on the performance of the industry, nay operators. Once the bill is well implemented, operators in the downstream, mid-stream and upstream sub-sectors of the oil industry would find it easier to grow their businesses,’ he said.

    It would be recalled that the bill was passed by the Senate in March 2018 and subsequently transmitted to the Presidency for approval. Prior to this period, the bill has generated a lot of controversy, as Nigerians were divided on its passage.

  • Ogoni people express worry over clean-up

    The Ogoni people have expressed worry over the Federal Government’s willingness to carry out the clean-up exercise in Ogoniland as recommended by the United Nations Environmental Protection (UNEP).

    UNEP in its report had recommended that a Centre of Excellence for Environmental Restoration be established in  Ogoniland. This, it said, would promote learning in other areas impacted by oil contamination in the Niger Delta.According to UNEP, offering  a  range  of  activities  and  services,  the  centre could run training courses in environmental monitoring and  restoration  and  ultimately  become  a  model for environmental restoration, attracting international attention.

    It also recommended that the  Ogoni  community  should  take  full  advantage of the employment, skills development and other opportunities that will be created by  the  clean-up  operation  which  is  aimed  at  improving  their  living  conditions  and  livelihoods.

    The Media and Public Affairs Adviser of the Movement for the Survival of the Ogoni People (MOSOP), Bariara Kpalap, said the entire clean up exercise is being politicised. According to him, the Ogoni people are not yet certain the government meant to carry out the exercise as recommended by UNEP.

    He said: “Nothing is happening. The Hydrocarbon Pollution Remediation Project (HYPREP) claims to have awarded contracts to some contractors and also given them time to commence work but as I speak with you nothing absolutely has been done.”

    He told The Nation on  telephone that measures such as provision of potable water, assessing the health issues of the people, building of health centres and centre of excellence, among others, as recommended by the UNEP report are yet to be seen. The powers that be are just using it to gain their political course.

    He confirmed that some contractors had been given site, but nobody is on any site. “The first step that should be taken is addressing the issue of water, determining the health states of the people and building of health centres, have not taken off till this moment.

    “I’m telling you that in my community (Kegbara Dere), there’s a site that would have been cleaned in this very contract that has been awarded, with other communities such as  (Gokana), nobody is anywhere doing anything. Nothing is happening. I’m telling you as a matter of fact, I can say it anywhere my community would have been one among those the clean-up would have taken place.

    “MOSOP has been campaigning that this should be done. It’s now HYPREP that’s not telling us the truth. Some money has been given for this and on the basis of that they have awarded contracts to some people (contractors), so if those things have happened why are the people not working?”, he asked.

    The Ogoni people, he said, want the clean-up exercise to take off properly. “What we want is what’s practical, if it is the issue of water, give us water, you have the money to give us water, if its building integrated centre, build it.

    “The ground breaking ceremony was done some years back. You have now gotten some money, and we are not saying that you should invest all the money here, but something has to happen that will create confidence in the people that at the end of the day the environment will be restored, and our own means of livelihood will be restored. Currently, there is nothing like that, therefore, many people believe the entire project is just a rip-off, he added.

  • Seplat posts $33m Q1 profit

    Seplat Petroleum Development Company Plc has posted a net profit of $33 million in the first operation ended 31 March 2019after adjusting for a tax credit of US$13 million. – Amukpe to Escravos pipeline is anticipated to be operational in Q2 2019.

    The results showed positive impact of the 2018 debt refinancing and subsequent deleveraging, which resulted in a 38 per cent year-on-year reduction in finance costs to $16 million (2018: $26 million), the firm said.

    According to the firm’s General Manager, External Affairs and Communications, Dr. ChiomaNwachuku, Seplat Petroleum is a leading Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange and London Stock Exchange, adding that information contained in this statement is un-audited and is subject to further review.

    Seplat’s Chief Executive Officer, Austin Avuru, said: “Our operations have continued to perform in line with expectation, with the phasing of our 2019 work programme such that the production uplift will be felt throughout the second half of the year as we step up drilling activities to focus on capturing the numerous high margin and short-cycle cash return opportunities within our current portfolio.

    “The next phase of growth for our gas business is now gathering pace following FID for the Assa North-Ohaji South (ANOH) project, with governments first tranche of equity investment received. We have continued to deleverage the balance sheet and self-fund investments into the existing portfolio from operational cash flow, while retaining the financial flexibility and available resources that will enable Seplat to capitalise on what we expect to be an increasingly busy pipeline of inorganic growth opportunities that fit our acquisition criteria.”

    Production uptime in first quarter stood at 85%; reconciliation losses are yet to be finalised but are expected to remain at levels consistent with prior periods. Full year 2019 production guidance maintained at 49,000 to 55,000 barrels of oil equivalent per day (boepd) on a working interest basis, comprising 24,000 to 27,000 barrels of oil per day (bopd) liquids and 146 to 164 million standard cubic feet per day (MMscfd), which is about 25,000 to 28,000 boepd gas production.

  • Sterling Bank seeks energy sector reform

    Sterling Bank Plc has supported the 4th Nigeria Energy Forum with theme: “Upscaling Clean Energy for Sustainable Development” as part of its commitment to the HEART of Sterling initiative to invest in five key sectors of the economy namely: Health, Education, Agriculture, Renewable Energy and Transportation.

    Head of Renewable Energy Unit at Sterling Bank, Adesola Alli, who spoke as a panelist at the event, noted that global industry overview of renewable energy, which stood at $1.4 trillion is expected to grow to a projected value of $2.5 trillion by 2025. She added that about $531 billion investment in energy supply and technology is required yearly between now and 2050.

    She listed some of the industry’s major challenges as supply and demand gap, access to finance and inadequate investment as well as trust and product standardisation.

    Alli said there is a need to create conditions for investment through policy and institutional reforms as well as to develop plans and targets for renewable energy while also ensuring that laws supporting investment in low-carbon energy are enacted.

    She also called for the creation of favourable conditions for investment, improvement in project developers’ capacity to develop bankable projects, strengthening of the financial sector’s capacity to invest in the industry and to build technical and engineering capacity.

    Alli said international support should focus on identifying and targeting critical sectors such as project bankability, equipment financing, feasibility studies and project assessment, adding that some public goods must be provided through public funding.

    She acalled for the strengthening of awareness and capacity within industry as imperative for the adoption of low-carbon energy, noting that putting the right policies in place is crucial to attracting investment into the sector.

  • Spillage: Again Aiteo shuts down Nembe Creek Oil Export Pipeline

    Aiteo Eastern Exploration and Production says it is compelled to shut down the 97 kilometer Nembe-Bonny oil export pipeline due to discovery of additional leaks.

    Mr Mathew Ndianaabasi, Spokesman for Aiteo, announced the shutdown of the facility in a statement on Monday pending the tracing and fixing of the additional leaks on the line.

    News Agency of Nigeria (NAN) recalls that the oil firm had announced the restart of oil exports from the facility on May 3 after fixing the identified leaking point.

    Also, the Commander of the Joint Task Force in the Niger Delta, Rear Admiral Akinjide Akinrinade, while inspecting the vandalised line stated that six suspected vandals that breached the line on April 21 died in the fire that followed the explosion.

    Ndianaabasi said that oil spill response team has been deployed to the leakage area at Awoba in Rivers to contain the oil discharged into the environment.

    According to him, less than 24 hours after starting up the NCTL from repairs of identified leak points occasioned by activities of oil thieves, 2 new leak points were reported along the line near Awoba Riser Manifold.

    “Our emergency response process was immediately activated, and containment boom deployed to limit oil spread on bodies of water whilst efforts to identify cause of incident and repair have been initiated.

    “Consequently, all injectors have been advised in accordance with NCTL shutdown procedure to shut-in production into the NCTL immediately.

    “Appropriate Oil Leakage/Spillage Notification Report will follow shortly to DPR/NOSDRA,” the spokesman said.

  • Why Anambra, Enugu, Kogi can’t be declared oil bearing states, by DPR

    The Department of Petroleum Resources (DPR) yesterday said that Anambra, Enugu and Kogi states can only join the list of oil producing states after meeting necessary conditions.

    In a letter to the Senate Committee on Petroleum (Upstream), the DPR said that the three states could only be declared oil bearing states if the oil firm in the area, Orient Oil, scales up its operations from oil prospecting to oil mining lease.

    The Department insisted that the states cannot be categorised as oil producing states for now because they have not met the necessary requirements.

    Chairman of the Committee, Senator Tayo Alasoadura, said the issue at stake has to do with a referral to the committee on the contentious boundary between the three states.

    He noted that a report that said “the Federal Government confirms Anambra oil producing ‎status” threw up the matter to the front burner.

    Alasoadura said his committee lacked the power to declare an oil-producing status on a state.

    He said that the committee believed that the agency is in the best position to settle the matter with the National Boundary Commission (NBC).

    The Ondo Central senator said the committee wrote to the DPR “but their response was not quite satisfactory.”

    That is why we want to hear from your commission.

    He noted that the committee decided to hear from the National Boundary Commission because “when we had a similar issue in Ondo State in the past, it was your commission that resolved it.”

    Senator Chukwuka Utazi (Enugu North) noted that the issue of OPL 915 and 916 dated back to antiquity.

    Utazi said: “I didn’t know that this motion would come up, because we had already resolved the issue when Senator Isaac Mohammed Alfa was away.

    “Kogi and Enugu states do not have problem; the two are in agreement. But Enugu and Anambra are not in agreement.

    “We in Enugu want to be declared as oil producing state too. Let that be done pending when the boundary commission finishes its work.”

    He added that Orient Oil, within seven years, moved from 3,000 to 10,000 barrels a day.

    According to him, “an oil company that had been able to move from 3,000 to 10,000 barrels per day should have graduated from oil prospecting to oil mining lease.”

    He said that they would go to the DPR to find out why Orient Oil refused to move from oil prospecting to oil mining lease.”

    Senator Alfa said there was no contention on the desire to recognise the affected communities as oil producing communities.

    Acting Director-General of the National Boundary Commission, Adamu Adaji said that the issue is a tripartite one involving the three states.

    He said: “We carried out preliminary field work on Kogi-Anambra boundary, but the challenge we have is the document we are using, which was produced before independence.

    “We had to use a provincial boundary map produced by the colonial masters. We discovered that the descriptions on the map are not too clear.

    “We scaled out seven points, and about five of them were discovered, but the remaining two resisted.

    “Some youths from Ibaji community accosted our staff at some point that they will not agree with the legal document we were using. We are relying on Legal Instrument of 1954.

    “The work was stalled because the people of Ibaji were of the view that we must identify the points between Anambra, Kogi and Enugu before we could do anything.

    “When we made an attempt in 2015, our effort was aborted. We met with the then governor of Kogi State and he promised to talk to the community to cooperate with us.

    Read also: DPR deploys satellite to halt $2.8billion loss to oil smuggling

    “What we want now is to get the states to cooperate so that we can work. The three states were not quite forthcoming for us to do the job. That is what we have been trying to do now.

    “If we cannot rely on the map, we plead that the states should cooperate for us to come to a boundary that is acceptable to all.”

    Senator Magnus Abe noted that from what the commission said, “it’s already doing something, but the problem is except the commission does what some people want, the work can’t be done. Except there is the right atmosphere for them to work, nothing can be done.”

    Abe suggested that the only way the issue could be resolved is for the committee to invite the states to come and “we set up a joint team with the boundary commission so that we can have adequate security ‎before they can go and do their job.

    “Now that there is oil there, the next thing you may have is that the people will start acquiring guns and start shooting themselves.”

    Senator Gershom Bassey said that the National Boundary Commission cannot completely be exonerated from the blame. He noted that in his state, Cross River, “there have been communal clashes because the commission has not done its job.

    Philip Gyunka said that it appeared the commission does not want to hurt some communities.

    “I want to advise here that whatever you think can solve the problem, please try and do it.”

    Alasoadura, however, explained that the Boundary Commission cannot do anything without the cooperation of the states.

    States, he said, should also establish their own boundary commissions so that they can work directly with the NBC.

     

  • Aiteo Nembe Creek trunk line reopened after fire outbreak

    Aiteo Eastern Exploration & Production Company Limited said its Nembe Creek trunk line has been reopened.

    The 100-kilometre long pipeline had been shut down after a fire outbreak was discovered in one of its sections on Sunday, April 21.

    The company had initially said the fire outbreak was caused by an illegitimate breach.

    According to a statement released on Friday, Ndiana Matthew, a spokesman for Aiteo, the company’s emergency pipeline repair team has completed leak repair activities on all reported leak points.

    “Consequently, all injectors have been advised to re-align and commence start-up formalities immediately and advise on their startup times,” the company said.

    The Nembe Creek trunk line transports up to 150,000 barrels per day (bpd) of the Bonny Light crude out of the country through the Bonny Crude Oil Export Terminal operated by Shell Petroleum Development Company (SPDC).

    The company had declared a force majeure to get some time to repair the pipeline.

    Force majeure is an unexpected event which prevents someone or a company from doing something that is written in a legal agreement.

    The NCTL shutdown is the second in two months as operations only resumed on March 7 following the plugging of a leak which necessitated the shutdown of the facility on February 28.

    The pipeline has been a target of oil thieves and vandals since it was inaugurated after Aiteo purchased a 45% stake from SPDC in 2015.

  • OPTS: inadequate infrastructure, others hindering gas production

    Inadequate gas infrastructure, absence of gas-aided businesses, such as power, petrochemicals and fertiliser plant, regulated low prices  and non-payment of legacy debts, are affecting maximum value derivation from gas resources, the Producers Trade Section (OPTS) Chairman, Paul McGrath, has said

    He stated this at the National Gas Association (NGA)Business Forum  in Lagos.

    The event had as theme: “Evaluating the place of gas as a prioritised enabler of Nigeria’s economic diversification agenda.”

    According to McGrath, OPTS represents the key players in the exploration, development and production of Nigeria’s petroleum resources.

    This year, OPTS 30 members operate  90 per cent of the oil and gas production, either in partnership with the Nigerian National Petroleum Corporation (NNPC) or with other indigenous and international lease holders.

    McGrath, who is the Managing Director of ExxonMobil Nigeria, listed measures that would enable the capturing the benefits of the industry, adding that the implementation of these measures will require deliberate and extensive collaborative effort between government and key stakeholders.

    He explained gas potential and what its benefits for the economy. Nigeria is endowed with vast natural gas resources, which can play a leading role in diversifying the economy by stimulating the development of various sectors. For example, gas can be used for electricity generation, to provide feedstock for value-adding manufacturing, and to increase Federal Government’s revenue from liquefied natural gas (LNG) sold in international markets, he said.

    On gas to power, the OPTS chief said: “For Nigeria, gas provides a unique opportunity to provide steady, widely-available, cost-effective and generally affordable power to everyone. A shift to gas-fueled power generation would represent significant savings opportunities over sources, such as diesel, which is multiple times more expensive than gas at USD 2.5 /mmbtu (million British thermal unit). This saving can then be redeployed by power consumers (individuals and businesses) to other goods and services and to new investments.

    On gas to industry as feedstock, he noted that opportunity exists in leveraging gas to develop industries that use gas as feedstock to produce methanol and ammonia used in fertiliser production. Trinidad and Tobago is a good example of a country that has accomplished much with its gas resources. With a small population of 1.4 million and only 11 trillion cubic feet (TCF) of gas reserves, the country has developed a globally competitive petrochemicals industry. Today, Trinidad and Tobago is the world’s largest exporter of ammonia and second largest exporter of methanol leading to this industry contributing significantly to the country’s GDP. Nigeria, with significantly larger gas reserves of 199TCF, has the potential to achieve even bigger success.

    “The agricultural sector, the largest GDP contributor to our economy, would benefit immensely from greater availability of fertiliser. Considering the low nitrate concentration in our soil and gas being the key feedstock for nitrate-based fertiliser, developing the gas industry could contribute to enhancing food security,” he added.

    To further buttress the importance gas to economic development, he noted that the Nigeria LNG (NLNG) maintains 70-80,000 jobs in the economy and contributesUSD $1.3 billion yearly in revenue to the Federal Government, providing the much-needed revenue for the government to deploy for the benefit of the country, such as development of infrastructure and diversifying the economy.

    Other areas where gas can benefit the economy include alternative fuel for transportation, residential and commercial utilisation, he added.

    However, he noted the challenges and solutions to unlocking Nigeria’s gas potential.

    McGrath continued: “To realise the full benefits of gas as a catalyst for economic growth and diversification, several challenges across the entire gas value chain need to be resolved. These include challenges related to the development and production of gas, such as inadequate infrastructure along the value chain; regulated low prices; legacy debt related to gas and power supply and the challenging business environment.

    “It is no longer news that infrastructure along the gas and power value chain remains inadequate. Particularly, Nigeria lacks sufficient pipelines to deliver gas from the fields where it is produced to the current and potential off-takers (e.g power plants, manufacturers, among others). In addition, the transmission and distribution systems lack the capacity to deliver the generated electricity to businesses and other consumers. Building infrastructure requires a sustained joint effort of the stakeholders led by the government. Active government support will help enable a stable investment climate, acceptable commercial terms and contractual risks. The above elements will help in attracting the required private investments which would strengthen existing off-takers and ultimately lead to emergence of new buyers and suppliers.’’

    “Also, Nigeria’s domestic gas prices are kept at a regulated low price, which does not cover the cost required to develop its gas resources.  The regulated gas price of USD $2.50/mmbtu falls short of the price required to attract investment for these new gas developments. The gas sector should transition into a liberalised market based on the ‘willing buyer, willing seller’ principle and ensure the existence of a competitive fiscal regime to support upstream gas development. Besides, the commercial and financial structures of the gas-to-power commercial value chain remain weak with growing arrears and uncertainty in the payment system which disincentivises gas investors.

    “A conducive business environment is essential towards achieving a diversified economy. Critical elements of a conducive business environment include security of life and property, improved efficiency of regulatory bodies and stability of laws and policies. OPTS believes that improving the regulatory, judicial and legislative framework in line with global standards (dispute resolution, contract sanctity) would promote investor confidence and significantly improve Nigeria’s ease of doing business towards growing and diversifying the economy,” he added.

  • Firm eyes 100,000bpd, 500mmscf/d gas production

    Waltersmith  Petroman Oil Limited, operator of Ibigwe field located in oil mining lease (OML) 16, has set production targets of 100,000 barrels of oil per day (bpd) and 500 million standard cubic feet per day (mmscf/d) of gas by 2026.

    According to the company, the long-term strategy is anchored on delivering these targets by 2026, achieving 100,000 bpd crude oil and condensate production, processing 50 million bpd of crude oil and condensate refinery, processing 500 mmscf/d of gas primarily as fuel for power and installing and supplying 1000 megawatts (Mw) of electricity, including renewables.

    Last October, Waltersmith performed the ground-breaking ceremony of its 5,000 barrels of crude oil per day modular refinery and has already started work on the development of an additional 25,000 bpd.

    The strategies were unveiled during its Health, Safety and Environment (HSE) Week in Imo State.

    The week had as theme: “Safety- my responsibility.”

    Waltersmith reiterated its commitment to the safety of its workers, host communities and their environment as it hopes to achieve its target of “goal zero” incident in years.

    With a safety regime to bring the risk of any accident associated with oil and gas operations down to the absolute minimum and/or prevent major incidents that could result in multiple fatalities or injuries, or loss of infrastructure critical to the economy, Waltersmith said the week-long event was to further emphasise the need to remind all staff/support staff and contractors to take safety as personal responsibility.

    “As a company, we are committed to full implementation of our safety policies. We will support all staff/support staff and contractors in taking time to work safely. We will address every safety concern promptly, Waltersmith Petroman Chairman/Chief Executive Officer (CEO), Abdulrazaq Isa said.

    “If you stop a job for safety reasons, we will back you up. If there is an incidence, we will fully investigate and share the lessons learnt to prevent re–occurrence. We will recognise any staff that reports the highest number of near misses,” Isa added.

    The genesis of the HSE week can be traced to 2011 when the company had a blowout incident on a drilling project. No life was lost but six people sustained injuries and millions of dollars went up in flames.

    “We have learnt that accidents are caused by human or equipment failure in one form or another. We have also learnt that all accidents are preventable, subsequently we have safely drilled 6 wells from the lessons learnt,” Isa said, adding that in March, Waltersmith clocked two million-man hours without lost-time incidence (LTI).

    The week was attended by officials of the industry regulator, Department of Petroleum Resources (DPR), Imo State Government Fire Fighters, Federal Road Safety Corps (FRSC), Shell Petroleum and Development Corporation (SPDC), Seplat Petroleum and other service providers.

    “Together, we must demonstrate a strong safety culture for others to emulate and stand firm on zero tolerance to any unsafe act. Only by this firm commitment, can we successfully deliver all our projects in a cost effective, safe and timely manner,” Isa said.

    At the event, a staff member, Ethelbert Nwadike, was presented a prize by Waltersmith’s  Executive Director/Vice President Peter Ekhaesombi for reporting the highest number of unsafe acts.