The Nation Newspaper

Category: Energy

  • Sahara Group seeks intra-Africa solution for oil sector issues

    Sahara Group has urged for collaboration among financial institutions, development agencies, trading companies, National Oil Companies and other stakeholders in , saying it would enhance the contribution of intra-Africa led solutions to addressing the petroleum sector’s trade and project finance challenges on the continent.

    Executive Director, Sahara Group, Wale Ajibade, made the submission when he gave a keynote address on “Challenges of financing and investing in the African oil industry” at the just held African Petroleum Producers Organisation (APPO) CAPE VII Congress and Exhibition in Malabo, Equatorial Guinea.

    “Our collective mandate and deliverable should be to prioritise African solutions for African challenges. ‘’Our businesses should be given viable incentives to enable them participate specifically in this industry; our development and commercial banks should have a marked incentive, or lower funding rates, for African Companies participating in this space. We must place the utmost value on capacity building and skilled knowledge transfer and training,” Ajibade said.

    Oil ministers, top-level executives and the continent’s opinion leaders at the conference reinforced the importance of cooperation among African countries as the most sustainable avenue to achieve shared ‘Prosperity in the African Petroleum Industry’.

    “We need to see more collaboration between African Oil producers in the future as intra African trade can be as large as international trade. We must promote intra-regional trade and encourage government to government contracts underlined by the private sector. This is a cause Sahara Group is passionate about and we will continue to lead the narrative.”

  • Climate change: Shell plans $300m investment to tackle Co2 emissions

    Oil giant, Royal Dutch Shell, has said it is investing $300 million over the next three years in natural ecosystems as part of its strategy to act on global climate change including addressing carbon dioxide (Co2) emissions generated by customers when using its products.

    The programme will contribute to Shell’s three-year target beginning in 2019, to reduce its Net Carbon Footprint by two per cent to three per cent, the company said.

    According to the Chief Executive Officer of Royal Dutch Shell, Ben van Beurden,”There is no single solution to tackling climate change. A transformation of the global energy system is needed, from electricity generation to industry and transport.

    “Shell will play its part. Our focus on natural ecosystems is one step we are taking today to support the transition towards a low-carbon future. This comes in addition to our existing efforts, from reducing the carbon intensity of oil and gas operations to investments in renewable sources of energy.”

    The Chief Executive Officer of The Nature Conservancy, Mark Tercek, said: “Last year’s Intergovernmental Panel on Climate Change (IPCC) report was a wake-up call on climate: reducing emissions starts with fossil fuels. Shell’s announcement signals that one of the world’s biggest energy companies is pursuing a decarbonisation strategy with a broad set of solutions, including by investing in nature. By doing so, it is helping to curb global deforestation, restore vital ecosystems, and help communities develop sustainably. Shell is the first in the industry to set near-term targets for the emissions of both its operations and its products; this is clear progress, but it also illustrates how much work remains to achieve Paris climate targets. We look forward to seeing further investment from Shell in these areas.”

    On the road, Shell is making a wider range of transport solutions available to customers. The company is stepping up its investments in lower-carbon options, from battery electric vehicle charging to liquefied natural gas and hydrogen. For example, in Europe, customers can now access 100,000 electric vehicle charge points through New Motion, a Shell company. Shell announced that it is also investing in 200 new rapid electric vehicle charge-points, powered by renewable energy, on its forecourts in the Netherlands, on top of 500 ultra-fast chargers being installed on Shell forecourts across Europe, in partnership with IONITY.

    For customers who drive internal combustion engine vehicles, Shell is making it simpler for them to reduce their carbon footprint through low-carbon biofuels and carbon neutral driving.

    From April 17, customers who file up at a Shell service station in the Netherlands will be able to drive carbon neutral through the use of nature-based carbon credits. This will be done at no extra cost for customers who choose Shell V-Power petrol or diesel, while those who fill up with regular Shell petrol or diesel can participate for an additional 1 cent a litre.

    Shell will roll out similar choices to customers in other countries, starting with the UK later this year. This complements Shell’s existing programme to help business customers avoid or reduce emissions, including supplying lower emission fuels and electric vehicle charging. Shell also offers businesses the opportunity to drive carbon neutral by compensating the CO2 emitted from driving their fleet.

    CO2 emissions generated by participating motorists – as well as from the extraction, refining and distribution of the fuel – will be offset by carbon credits. As one of the most established traders of carbon credits in the world, Shell buys these credits from a global portfolio of nature-based projects, including Cordillera Azul National Park Project in Peru, Katingan Peatland Restoration and Conservation Project in Indonesia and GreenTrees Reforestation Project in the USA. Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of carbon dioxide.

  • Firm ties refinery construction to full downstream deregulation

    Petrocam Nigeria Limited has said it would build a refinery in-country only when the Federal Government fully deregulates the downstream sub-sector of the oil industry.

    The Chief Executive officer of the firm, Mr. Patrick Ilo, stated this at the opening of the firm’s 10th retail outlet in Abule Ado, Lagos-Badagry Expressway, Lagos. Ilo said the company as part of its strategic plans in the country would leave a footprint in the retail and refining segments of the petroleum industry.

    The firm is an arm of Petrocam International, a South African based oil trading firm with branches in some African countries.

    Petrocam, Ilo said, is waiting for the right atmosphere to invest in crude refining business. He said: “We at Petrocam Nigeria are presently not engaging in the building of refinery in the country. We are looking forward to a situation when the subsector would be fully deregulated since the industry is partially deregulated now.

    “Deregulation is key to establishment of refineries in Nigeria because it would open up the space wider for operators wishing to invest in crude refining with a view to ending importation of petroleum products such as premium motor spirit (PMS), diesel and kerosene. What operators are advocating is a system, which would allow open entry and open exit and that can only be achieved when the subsector is fully and not partially deregulated as currently practised in Nigeria.”

    According to him, the issue of allowing the Federal Government to fix the selling price of fuel at N145 per litre would be a thing of the past when the sector is fully deregulated. He said marketers would be at liberty to determine how much they would sell their products as against a situation where they would be compelled to sell fuel at a modulated price.

    The firm’s outlet, Ilo said, is increasing by the day, ditto the consumers of petroleum products in the country, adding that the development informed the decision of the company to continue to spread across the country.

    He said the supply of electricity is falling, adding that the development made Petrocam to build solar power to operate its outlets and also provide power to the communities where the stations are built.

    He added the company is customer-centric, which among others are the firm’s selling points.

    Petrocam started operation in Nigeria as an oil trading firm years ago and later moved into fuel retail services.

  • Shell bags Most Impactful Local Content Company award

    Shell Companies in Nigeria have emerged the International Oil Company with the most impactful Local Content Initiatives in the upstream category at the 2019 edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF) held in Yenagoa, Bayelsa State.

    Shell beat other competitors ,Total and ExxonMobil to the second and third positions respectively at the second edition of the fair organised by the Nigerian Content Development and Monitoring Board (NCDMB).

    The Executive Secretary of NCDMB, Mr. Simbi Wabote, who presented the award, singled out Shell Companies in Nigeria for exemplary support to local vendors and suppliers in the oil and gas industry, which, he said, enabled greater participation of Nigerians in the service value chain.

    Read Also: Shell unveils $15b five-year investment plan

    Receiving the award, Managing Director of The Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, described the recognition as an important acknowledgement for the impressive work Shell companies continue to do in Nigeria content development.

    He said: “This award is a strong recognition of our leadership in the Nigerian content development space. Nigerian content development remains a very important step in our growth aspiration as Shell Companies in Nigeria roll out the next phase of major projects.”

    Shell’s Nigerian Content Development Manager, Olanrewaju Olawuyi, described the NOGOF award as well-earned given the pioneering initiatives and strides by Shell companies in Nigeria which he said had put the oil and gas industry in the hands of Nigerians. “We are motivated by the award to continue to pursue in-country value addition in the oil and gas sector as this aligns with the government’s aspiration in local capacity development.”

    The NOGOF award is a confirmation of the leadership position of Shell in local capacity development in the oil and gas industry. In 2018, Shell Companies were named the Local Content Operator of the Year at the Annual Oil Industry Achievement Awards Dinner of the Petroleum Technology Association of Nigeria (PETAN,) an association of indigenous technical oilfield service companies in the upstream and downstream sectors.

  • NGA business forum reinforces gas impact on economy

    The Nigerian Gas Association (NGA) will host industry’s prominent and influential executives involved in the oil, gas, liquefied natural gas (LNG) and power generation value chains, the Association’s President Mrs. Audrey Joe-Ezigbo, has said

    According to Publicity Secretary, Violin Antaih, the forum, which will bring together governments officials, gas off takers and developers, gas upstream suppliers, pipelines operators, construction firms, equipment providers, and financiers  to its first Gas Business Forum in 2019.

    The theme of the forum is: Evaluating the place of gas as a prioritized enabler of Nigeria’s economic diversification agenda.” The venue of the forum is Civic Centre in Victoria Island.

    Speakers include the Chairman, Oil Producers Trade Section (OPTS), Paul McGrath; Group Executive Director, Gas & Power, NNPC, Saidu Mohammed; Group Executive Director, BUA Group, Kabiru Rabiu and Folarin Alayande (SSA to the President on ERGP. Others are Managing Director, Shell Nigeria Gas, Ed Ubong; Maryam Shehu, Deputy General Manager, Commercial, Total E&P Nigeria and Chima Ibeneche, former President, Nigerian Gas Association.Policies play a key role in supporting or constraining the progress of natural gas in any countrys’ energy mix, Ezigbo said , adding that the adoption of measures favourable to natural gas could accelerate the penetration of this source of energy  and achieve many economic, technical, social and environmental advantages.

    She noted that the key measures expected to be adopted in this regard are market reforms that aim to improve competition and attract gas investments in the upstream and midstream sectors; the facilitation of permits and administrative processes for gas project developments; and pricing or mandated fuel switching to natural gas.

    The association’s 20th annual general meeting will be conveyed immediately after the business forum at same venue, she added.

  • Ibadan DisCo official electrocuted

    The management of Ibadan Electricity Distribution Company (IBEDC) has expressed shock and sadness over the electrocution of one of its members of staff, Mr Adewale Adegoke, at Onireke Road, Ibadan, Oyo State.

    The Company’s Head, Corporate Communications and Strategy, Mrs Angela Olarenwaju, told reporters that the incident occurred during the early hours of Saturday while the deceased was official duty.

    Read Also: Three die in Lagos/Ibadan Expressway auto crash

    Olarenwaju said: “With great sadness and heavy heart, the management of IBEDC hereby confirms the unfortunate passing of our staff, Mr. Adewale Adegoke, during the course of duty this morning when he was involved in an electricity related incidence.

    “Adegoke was confirmed dead at Teju hospital where he was rushed immediately after the incidence at Onireke, after all efforts to resuscitate him at the scene of the accident proved abortive.

    “Our sincere condolences and prayers goes to the family. We are currently investigating the course of this unfortunate incidence.”

  • ‘Renewable ‘ll improve energy security’

    Germany’s Foreign Minister, Heiko Maas, has said that using renewable energy would enable states to improve their energy security.

    He stated this at the just concluded Berlin Energy Transition Dialogue (BETD), in Germany. The Berlin Energy Transition Dialogue is hosted by the Federal Government of Germany and organised together with the German Renewable Energy Federation (BEE), the German Solar Industry Association (BSW-Solar), the German Energy Agency (dena) and the consultancy firm Clarendon.

    It is a forum for dialogue for stakeholders and decision-makers in the global energy transition – clever minds who revel in debate and are driving exchange on the global energy transition.

    In a statement made available to The Nation, Mass said the fossil energy transition was not merely a shift from fuels to renewable energy but also upending political constants.

    “So energy is losing its potency as the geo-political instrument we have known for decades,” he said, adding that countries that are transforming their energy economy can be more independent in pursuing their strategic and foreign-policy interests. “This is just one of the aspects we talked about at the Berlin Energy Transition Dialogue, he stated.

    Maas and Economic Affairs Minister Peter Altmaier said at the event, which ended yesterday: “Today (Tuesday) opened the fifth Berlin Energy Transition Dialogue (BETD) at the Federal Foreign Office.” According to them, this international conference on energy transition is being attended by ministers and high-level delegations from over 50 countries of the world, as well as by representatives of industry and civil society.

    Over the two days of the conference, opportunities and challenges resulting from the global shift to green energy would be discussed, what geo-political developments does the energy transition cause and how the energy transition could succeed in all sectors.

    It would also discuss how digitisation would make the energy transition more efficient, as well as how the resulting structural change could be shaped in a socially compatible way

    According to Federal Minister for Economic Affairs and Energy, Peter Altmaier, “A successful energy transition needs to be conceived globally and holistically. A holistic approach requires the energy shift to be successful in all sectors and the socio-economic elements to be taken into account throughout adding continuing international cooperation is indispensable here.

  • Enugu DisCo upgrades injection substations

    Enugu Electricity Distribution Company (EEDC) has begun plan to upgrade its Agu-Awka injection substation from 7.5MVA capacity to 15MVA, having taken delivery of a brand new 15MVA power transformer, which the company ordered from overseas.

    This is coming less than 24 hours after the upgrade of its Ebeano Tunnel Injection substation from 7.5 MVA to 15MVA.

    The firm’s Head of Communications, Emeka Eze, said the upgrades are meant to match the rapid increase in load demand by customers as well as significantly improve the quality of power supply to the affected areas.

    He said the upgrade of Agu-Awka injection substation lasted three days between April 6 and April 9.

    Ezeh further said that as a result of this development, electricity customers served by the substation were are out of supply during the period of the upgrade.  He mentioned the areas affected as Agu-Awka GRA, UniZik, parts of Nkwele Awka, Amenyi Awka, CBN, Juhel, Millennium Industry and Nodu Okpuno, adding that these capital intensive upgrades embarked on by EEDC are in addition to the ongoing construction of a 1 x 7.5MVA injection substation at ABS, Awka. The project which is near completion is expected to improve electricity supply to Okpuno, Isuaniocha, Mgbakwu, Urum, Amanuke and the university communities.

    EEDC, therefore, sincerely apologised for the inconveniences this caused the customers in Awka. “It is all geared towards improving the quality of service we offer to our customers,” Ezeh said.

    Last year, EEDC delivered major network enhancement projects ranging from deloading of feeders, deployment of relief transformers and replacement of failed transformers. In Enugu State, EEDC completed and commissioned the 1 x 7.5 MVA Nike Lake injection substation at Nike, which greatly improved electricity supply to the entire Nike area and parts of Abakpa..

  • MOMAN backs Fed Govt’s Petroleum policy

    Major Oil Marketers Association of Nigeria (MOMAN) has restated its support for government policy on the petroleum industry, including policy on deregulation, which remains the only way to achieving a robust and sustainable downstream petroleum industry.

    The National Petroleum Policy articulates a vision for Nigeria to become a nation “where hydrocarbons are used as a fuel for national economic growth and not simply as a source of income.” The Policy recognises that Nigeria “must develop a petroleum industry where the value added in oil stream is realized, combined with a move towards a gas based industrial economy and that the future for oil producers lies in developing a value added sector of refining and petrochemicals” given the volatility in oil and gas prices. The Policy envisions a strong refining sector, which will transition the refineries from selling only capacity to selling both capacity and products.

    Its Chairman, Adetunji Oyebanji, who stated this in a communiqué after MOMAN’s Chief Executive Officers’ (CEOs’) strategy retreat in Abuja on the way forward for a sustainable and viable downstream sector, said the two-day retreat recognised the outstanding work done by the Nigeria National Petroleum Corporation (NNPC) to ensure continuous supply of petroleum products in 2018 and 2019, especially during the election period.

    The Federal Executive Council on July 19, 2017  approved the National Petroleum Policy (NPP), which articulates a vision for Nigeria to become a nation “where hydrocarbons are used as fuel for national economic growth and not simply as a source of income”.

    He also lauded the improved collaboration between NNPC and MOMAN, especially PPMC, which he said, contributed significantly to the outcome. He added that the association would proactively collaborate with government towards the development of the downstream petroleum industry, including renewable and alternative energies in Nigeria.

    The MOMAN chair said the association is poised to optimise and reduce supply chain costs through better collaboration and use of technology. He added that MOMAN will ensure development and compliance with an industry self-regulatory regime to support the industry regulator and raise Nigeria’s safety, technical and quality standards in fulfillment of the government’s national petroleum policy. “MOMAN is committed to improving customer service and the deployment of technology in the protection of the customer and ultimately the business.”

    Oyebanji assured of training and development of Nigerians in important disciplines, including engineering, management and strategy. According to him, the Association will also establish a think-tank of professionals to tackle industry issues and proffer workable solutions to identified problems.

    Part of its strategic policy objectives, he said, was to create a market-driven oil and gas industry, cost efficient storage, transportation and distribution of petroleum products.

    He reiterated MOMAN’s plans to strengthen its support to the Federal Road Safety Corps (FRSC); the Department of Petroleum Resources (DPR); Petroleum  Products Pricing Regulatory Agency (PPPRA); Standards Organisation of Nigeria (SON) and other regulatory agencies, which impact the downstream to improve product transportation.

    “We also acknowledge that we need to support the regulatory agencies by adopting internal self-regulation practices if we want the industry to operate at acceptable international levels.

    “MOMAN will focus on service to the Nigerian customer at retail outlets and towards this purpose to use training of forecourt employees, managerial competencies development and technology to ensure that the Nigerian customer gets full value for the products and services he/she is paying for,” Oyebanji added.

    He also affirmed MOMAN’s intention “to have a more inclusive MOMAN and begin the process of opening our doors to new members, as well as share our savoir-faire and international best practices from our heritage and experience of over a hundred years in the industry”. He said the association will continue to strengthened partnership with NNPC to ensure seamless supply of petroleum products across the country.

  • Seplat urges public, private sector investments

    Seplat Petroleum Development Company Plc, has urged the public and private sectors to invest more in research and development aimed at promoting safety.

    The oil company noted that such investments should cut across the various sectors of the economy as is the case for the oil/gas and aviation sectors, among others.

    Its Operations Director, Effiong Okon, stated this at the Nigeria Professional Development Conference and Exhibition in Lagos. It was organised by the American Society of Safety Professionals (ASSP), Nigerian Chapter. The theme of the event was ‘Sustainable safety for national development.’

    According to Okon, safety is at the forefront of Seplat’s activities, which have enabled it to conduct its activities across the country with minimal footprint. “We approach safety, using the people, environment, asset and reputation model incorporated in our ‘safety first’ policy. We only execute projects that promote continuous reduction of environmental impact in our operations,” he said.

    He added: “We track offshoots from our operations and strive to reduce adverse effects from our facilities. Our internal use of gas flared reduced by over 95 per cent between 2011 and 2017.

    “Seplat has incorporated key programmes across all its facilities to achieve flares out by 2020 in line with keeping the environment safe. We comply with all regulatory requirements and benchmark our performance with international standards.”

    Okon said the company has seen continuous decline in safety incidents over the years and would continue to deploy safety training and coaching to hone safety consciousness and skills of its local contractors.

    Progressively managing challenges around establishment of support infrastructure for safety management, he noted, remained a priority to the company, adding that: “Since the taking over of our current assets, third-party interference on Seplat’s infrastructure had been significantly minimised.”