The Nation Newspaper

Category: Energy

  • Shell inducts 30 graduates for internship

    Thirty engineering graduates have been inducted into the fifth batch of the Shell Nigeria internship programme, a four-year-old scheme designed to help young graduate engineers upscale their skills in readiness for employment in the energy sector.

    The programme, run in collaboration with the Petroleum Technology Association of Nigeria (PETAN), places the interns with various oil and gas service companies for one year.

    Shell Petroleum Development Company (SPDC) Nigerian Content Manager, Mr. Olanrewaju Olawuyi, described the programme as a critical intervention in bridging the manpower gap in the industry and enhancing local capacity.

    Olawuyi, who spoke in Port Harcourt at the induction of the new interns and the graduation of 30 interns of the fourth batch of the programme, said: “Out of the 140 graduates so far trained through the programme, 65 per cent are now gainfully employed in the oil and gas industry. I am excited at the successful feat of the candidates, I encourage the incoming interns to make the best use of this unique opportunity.”

    PETAN President Mr. Bank Anthony Okoroafor said: “The objective of the programme is to give young graduates the opportunity to have one-year-on-the-job training in their respective disciplines thereby enhancing their employability. The success of the Shell/PETAN internship scheme has gone beyond the shores of Nigeria.”

    One of the beneficiaries, Miss Ugonna Queen Ochuba, said: “The Shell/PETAN internship was my first on-the-job training opportunity. The internship did not just give me the opportunity to be hands-on but also helped to boost my skills and experience in my discipline.”

    The Nigerian Content Development and Monitoring Board (NCDMB) Manager Capacity Building, Mrs. Angela Okoro, commended the Shell/PETAN deal. She said: “This is one of the capacity development initiatives that the Board is replicating.”

    General Manager, Business and Government Relations of Shell Nigeria, Mr. Bashir Bello, said: “Every year, the Internship supports fresh graduate talent through exposure to rich technical on-the-job work experience to equip them with practical industry experience, which will then position them favorably for employment opportunities after the programme.”

    Shell/PETAN internship was conceived as part of the collaboration roadmaps to support efforts at closing gaps i manpower in critical disciplines, such as Geology and Engineering.

  • Monarchs seek autonomy for NDDC

    Traditional rulers, under the aegis of the National Executive Council of Traditional Rulers of Oil Minerals Producing Communities of Nigeria (TROMPCON), have urged the Federal Government to allow the Niger Delta Development Commission (NDDC) to be independent and operate within the ambit of the Act establishing it.

    Oba Obafemi Ogbaro, the Odoka of Ogbaro kingdom in Ilaje Local Government Area of Ondo State,, who is the national secretary of TROMPCON, stated this.

    He felicitated with the new management of NDDC on the appointment of its new Acting Managing Director, Prof. Nelson Brambaifa; the new acting Executive Director of Finance and Administration, Mr Chris Amadi, and Mr. Adjogbe Samuel, acting Executive Director of Projects.

    Ogbaro, while reaffirming the association’s support for the new board, challenged it to reposition the commission by ensuring proper monitoring and completion of all projects in the region.

    “We also appeal to the new board to ensure prompt payment to contractors who borrowed money to complete their projects.  The bottlenecks in mode of payment should be a thing of the past and stakeholders particularly the traditional rulers of the mandate areas, should be carried along,” he said.

    The TROMPCON scribe also lauded the transparent and commitment of the current board and management of NDDC, declaring the association’s support in partnering with the commission towards developing the Niger Delta region.

    Ogbaro said the association was impressed with the strategies adopted by the Commission’s Board. “There is a different spirit here that has increased the tempo of activities geared towards fast-tracking regional development. We are excited by the practical approach of the new board and management and we are ready to cooperate with NDDC to do more for the people.

  • Chevron projects $30b revenue generation

    Chevron Corporation expects a significant growth, disciplined spending, and expanded production over the next five years.

    It stated this at its Security Analyst meeting.

    It expects approximately $30 billion generation at $60 for Brent in the year to fund the six per cent yearly dividend increase, a high-return capital programme, and $4 billion of expected share repurchase.

    Chevron also projected a capital and exploratory (C&E) expenditures of $19 to $22 billion from 2021 to 2023, three to four per cent compound  yearly production growth through 2023, Permian unconventional production of 900,000 barrels per day in 2023 and six per cent shareholder yield in 2019. The projections, according to the company, are based on strong performance.

    “Chevron is in an exceptional position to deliver industry-leading value to shareholders,” said Michael Wirth, Chevron’s chairman/chief executive officer.

    “Our advantaged portfolio is driving strong production growth with lower execution risk, higher cash flow and increased cash returns to shareholders,” he added.

    The company outlined a ratable capital programme and a returns-driven approach to capital allocation. “We’ve refocused our investment priorities,” said Wirth, “and expect 70 per cent of this year’s spend to deliver cash flow within two years.” The Company reaffirmed a disciplined C&E programme and established an annual target of $19 to $22 billion from 2021 to 2023.

    Executive Vice President, Upstream, Jay Johnson, explained the ratable investment will deliver steady growth. “We expect to deliver a three to four percent compound annual production growth rate through 2023. Our strong resource base gives us the flexibility and choices that allow us to fund the projects we believe will yield the best returns,” he said.

    Chevron’s outlook is supported by strong performance in the Permian Basin, where the company has added almost seven billion barrels of resource and doubled its portfolio value over the past two years. Permian unconventional net oil-equivalent production is now expected to reach 600,000 barrels per day by the end of 2020, and 900,000 barrels per day by the end of 2023.

    The company’s unique position in the Permian is “characterised by long-held acreage, zero-to-low royalty on more than 80 percent of our land position, and minimal drilling commitments”, said Johnson. These attributes together with the deployment of new technologies are driving higher returns, stronger cash flows, and increased value.

    “Chevron is operating from a position of strength,” Wirth said, ading: “The balance sheet is strong. Our dividend breakeven is low. We’re disciplined with capital. And we’re generating strong free cashflow. Chevron has an extremely compelling investment proposition that is going to continue over the long-term.”

  • Local content is essential to oil, gas

    Samsung Heavy Industries Nigeria (SHIN) Limited Managing Director Mr. Jejin Jeon, in this interview with Sunday Oguntola speaks on the importance of local content in the oil and gas sector, among other issues.

    What is your assessment of the local content legislation in oil and gas industry?

    It’s fair to say that ‘local content’ regulations don’t sound like the most interesting topic in the world.  Any manager of any oil or gas project is going to be focused on hitting their targets and rightly so.  Time is money, and in the energy sector this is particularly the case. With this target mindset, it’s easy to dismiss local content regulations as additional bureaucracy or a box to be ticked to win the tender.

    How did you cope with this piece of legislation?

    I think that Samsung Heavy Industries Nigeria could have fallen into this trap too. After all, we were a new arrival in Nigeria, eager to prove ourselves and to win business for our company.Thankfully though, we are new to Nigeria, we are by no means new to shipbuilding in a developing economy. It might seem difficult to remember this today but when our first shipyard was being constructed in 1974, Korea was a very different country.  We too had to deal with the twin challenges of undertaking immense economic growth while improving the standard of living for our citizens. We learnt that you had to be agile and adapt to a fast-changing world, and that you have to keep transformation at the core of what you do.

    You have reputation as a global shipbuilding giant. What gives you competitive edge over your competitors in the Nigerian environment?

    Ship building has two faces like Janus, the Roman god. On the one hand, it is a high-tech, innovative business, which demands the best.  On the other hand, it requires hard work and an intense level of human capital. By understanding this dual nature of shipbuilding, we were able to design a local content programme that delivered opportunities to Nigeria, while delivering cutting-edge technology. This blend of global and local has proven to be perfectly suited to delivering on customer needs, satisfying local content requirements and creating a sustainable platform for long-term growth. And when Samsung says long-term, it means long-term.  Building a welding school means opportunities for our impressive local workforce, skilled welders, such as Chinonye, who are learning skills and sharing knowledge. But it also means looking to the next decade and beyond, understanding the potential of Nigeria to be a focal point for fabrication and integration for the whole of Africa. We have proven that responsible investment, powered by a belief in people, unlocks potential that can drive real change.  Our fabrication and integration yard in Lagos is the start of our journey in Africa, and it’s a journey that will deliver jobs, opportunity and economic prosperity for the country and beyond.

    What is your future vision?

    Our vision is a future of extraordinary growth and opportunity, building on our now-proven model for heavy involvement of local companies and local workforce talent. The combination of Korean efficiency and expertise, fused with Nigerian talent and passion, presents limitless possibilities for a future repairing, maintaining and building high value ships to serve needs in Africa and beyond – just watch this space.

  • Will oil ever hit $100 again?

    We are again in the season of oil price unpredictability where oil prices easily rise and fall. This has made RIGZONE to ask experts whether oil will ever reach $100 per barrel.

    Oil will hit $100 per barrel again, according to RoseAnne Franco, head of oil and gas at global risk consultancy Verisk Maplecroft.

    “It’s a question of when and will it stay there … the level of geopolitical uncertainty we confront today is particularly volatile and precisely the type of conditions that could lead to an oil price shock,” Franco told Rigzone.

    “That said, the uncertainty appears to cut both ways as global economic growth, which supports higher oil demand, is vulnerable to heightened geopolitical risk, which erodes it,” Franco added.

    Fundamentals don’t appear to support such higher price levels this year, according to Franco. The Verisk Maplecroft representative stated however that “beyond 2020, an oil supply crunch due to the retrenchment in spending in the oil patch coupled with a perfect storm on the geopolitical end could easily trigger another price shock.”

    Offering his view, Devin Geoghegan, Genscape’s global director of petroleum intelligence, told Rigzone that “unless electric cars become the unicorn of demand growth deceleration, $100 oil seems highly likely at some point during the next 10 years.” The Genscape director added however that there are “very real headwinds” to reaching that figure again.

    “First, stagnant or declining demand could cause an abrupt shift lower in multi-year supply need expectations,” Geoghegan said.

  • Russia, Nigeria collaborate on nuclear energy

    Russian and Nigerian Government are collaborating to provide nuclear energy in Nigeria to help the country reduce power outages, improve industrial capacity and further grow its Gross Domestic Product (GDP), ROSATOM Central and Southern Africa Chief Executive officer, Dimitry Shornikov, has said.

    ROSATOM is a Russian Government-owned nuclear energy firm, and it specialises in the production and generation of nuclear electricity for countries in Europe and others.

    In an interview in Lagos, Shornikov said Nigeria’s power is one of the poorest in Africa, adding that the two power sources, namely gas and hydro are unable to produce electricity megawatts, the country requires for growth.

    According to him, a lot of misconceptions surround the production of nuclear energy, noting that it has been proved over time that nuclear energy is the safest of all energies produced globally.

    Nuclear energy, Shornikov said, is highly regulated and controlled, a development, which left credence to the fact that it is well managed and not prone to dangers contrary to the notions held by many Nigerians.

    He said the two forms of electricity are not affordable, adding that the development informed the decision by ROSATOM to partner with the Federal Government on how it can provide nuclear electricity in the country.

    Shornikov said: “When compared to the production of hydro and gas electricity with that of nuclear energy, they are expensive and unreliable. These problems are not present in nuclear energy.”

    He said it would be difficult to provide the cost of producing nuclear energy in Nigeria because sizes and configurations of the nuclear plants are not the same. This is not like gas turbine that is manufactured to generate a particular number of megawatts (Mw) of electricity.

    “There are lots of variables that need to be considered in the process of configuring nuclear energy plants. The variables are in relation to the size of the plant, the volume of energy the plant would produce,” he added.

    He said though the cost of producing nuclear may be prohibitive, its benefits outweigh the cost because it is environmental friendly, reliable and regular.

    Shornikov said: “The negotiations for the establishment of science and nuclear energy centre between Nigeria and Russia has reached an advance stage. The two parties are working together on how to proceed on the issue of establishing the centre in Nigeria.

    “On safety issues, one of the misconceptions associated with nuclear energy is lack of safety. My aim is to compare it with air travelling. Most people see air travelling as the most dangerous. However, it is the safest in the world. It is the most regulated and controlled sources of energy. There is the need to educate stakeholders on the importance of nuclear energy, brief them that it is the safest.

    “On cooperation with Nigerian Government, it started in 2009 but it is in 2017 that we signed an agreement on it, which set the tone for further discussion on production of nuclear energy and its plants.

    “Electricity stability and regularity is a big issue in Nigeria. There are concerns. There are power outages, which affect the country’s GDP. One source of energy that is available is nuclear energy. It is environmentally friendly compared to gas power.

    “When we talk about cost of generating nuclear energy, obviously it is high because there are variables that need to be considered. These variables lie in the configuration of the plant. On the issue of cost, it depends on the configuration of the size of the plant and the volume of nuclear energy expected to be generated.”

  • Monarchs seek autonomy for NDDC

    Traditional rulers, under the aegis of the National Executive Council of Traditional Rulers of Oil Minerals Producing Communities of Nigeria (TROMPCON), have urged the Federal Government to allow the Niger Delta Development Commission (NDDC) to be independent and operate within the ambit of the Act establishing it.

    Oba Obafemi Ogbaro, the Odoka of Ogbaro kingdom in Ilaje Local Government Area of Ondo State,, who is the national secretary of TROMPCON, stated this.

    He felicitated with the new management of NDDC on the appointment of its new Acting Managing Director, Prof. Nelson Brambaifa; the new acting Executive Director of Finance and Administration, Mr Chris Amadi, and Mr. Adjogbe Samuel, acting Executive Director of Projects.

    Ogbaro, while reaffirming the association’s support for the new board, challenged it to reposition the commission by ensuring proper monitoring and completion of all projects in the region.

    “We also appeal to the new board to ensure prompt payment to contractors who borrowed money to complete their projects.  The bottlenecks in mode of payment should be a thing of the past and stakeholders particularly the traditional rulers of the mandate areas, should be carried along,” he said.

    The TROMPCON scribe also lauded the transparent and commitment of the current board and management of NDDC, declaring the association’s support in partnering with the commission towards developing the Niger Delta region.

    Ogbaro said the association was impressed with the strategies adopted by the Commission’s Board. “There is a different spirit here that has increased the tempo of activities geared towards fast tracking regional development. We are excited by the practical approach of the new board and management and we are ready to cooperate with NDDC to do more for the people.

    “The commission is committed to doing things differently and the money contributed to the NDDC fund must be used in a responsible, transparent and efficient manner, and it starts from the budgetary process,” he said.

    Ogbaro said the new management has demonstrated good intention that they owed it to Nigerians, the people of the Niger Delta, stakeholders of the Niger Delta and the Federal Government to ensure true regional development, adding that the new spirit is a necessary foundation for progress.

  • Shell inducts 30 graduates for internship

    Thirty engineering graduates have been inducted into the fifth batch of the Shell Nigeria internship programme, a four-year-old scheme designed to help young graduate engineers upscale their skills in readiness for employment in the energy sector.

    The programme, run in collaboration with the Petroleum Technology Association of Nigeria (PETAN), places the interns with various oil and gas service companies for one year.

    Shell Petroleum Development Company (SPDC) Nigerian Content Manager, Mr. Olanrewaju Olawuyi, described the programme as a critical intervention in bridging the manpower gap in the industry and enhancing local capacity.

    Olawuyi, who spoke in Port Harcourt at the induction of the new interns and the graduation of 30 interns of the fourth batch of the programme, said: “Out of the 140 graduates so far trained through the programme, 65 per cent are now gainfully employed in the oil and gas industry. I am excited at the successful feat of the candidates, I encourage the incoming interns to make the best use of this unique opportunity.”

    PETAN President Mr. Bank Anthony Okoroafor said: “The objective of the programme is to give young graduates the opportunity to have one-year-on-the-job training in their respective disciplines thereby enhancing their employability. The success of the Shell/PETAN internship scheme has gone beyond the shores of Nigeria.”

    One of the beneficiaries, Miss Ugonna Queen Ochuba, said: “The Shell/PETAN internship was my first on-the-job training opportunity. The internship did not just give me the opportunity to be hands-on but also helped to boost my skills and experience in my discipline.”

    The Nigerian Content Development and Monitoring Board (NCDMB) Manager Capacity Building, Mrs. Angela Okoro, commended the Shell/PETAN deal. She said: “This is one of the capacity development initiatives that the Board is replicating.”

    General Manager, Business and Government Relations of Shell Nigeria, Mr. Bashir Bello, said: “Every year, the Internship supports fresh graduate talent through exposure to rich technical on-the-job work experience to equip them with practical industry experience, which will then position them favorably for employment opportunities after the programme.”

    Shell/PETAN internship was conceived as part of the collaboration roadmaps to support efforts at closing gaps i manpower in critical disciplines, such as Geology and Engineering.

  • Nsukka professionals advise govt on post-oil economy

    The Nsukka Professionals Association (NPA) has held its its Third Annual Summit in Lagos.

    On the sideline of the event, its President, Mr Charles Nwodo Jr, spoke with select reporters.

    What was the objective of this summit?

    This summit was designed to draw attention of policy makers and political leaders to the inevitability of the disruption of the global oil market and expected progressive reduction in the revenue accretion to the federation account.

    Technological innovation, in the form of electric cars, electric aeroplanes, and growing effort for enforcement of emission control statutes across the world plus the expected exhaustion of oil reserves, all point to the great wisdom and urgency for oil producing countries to plan for alternative sources of revenue to supplement or replace oil revenues.

    Other oil-producing countries, such as Norway, Saudi Arabia, and Qatar have proactively launched bold national initiative.  Panelists made up of respected subject matter experts then proffered tested, concise and practical recommendations, which, if implemented, will effectively diversify and expand government revenue to position the nation and constituent units for a post oil economic boom.

    What is the next step after this  summit, and how will you ensure that your association’s recommendations get government’s attention?

    As you saw, among the participants at this summit were government officials, political leaders and candidates for office in the forthcoming elections. We were deliberate in the profile of the guests we invited, just as we were in the choice of our speakers. The target stakeholders, who have the responsibility for successful implementation of the summit recommendations, were fully in attendance. Beyond this, however, the NPA as is our tradition, shall compile the highlights of the proceedings, and generate actionable recommendations, with suggested time lines to be delivered to policy makers, particularly Enugu State Governor, Ifeanyi Ugwuanyi. We shall also utilise the social and mainstream media to push the central issues arising from this summit to the awareness of the public, as a way of ensuring that the policy makers pay attention. Obviously this conversation with you journalists is one of such efforts.

    Tell us about the NPA?

    The NPA is an association of professionals, businessmen and entrepreneurs from the Nsukka cultural zone of Enugu State. It is non-partisan, and is totally independent, with singular focus on issues around the progress and accelerated development of the Nsukka cultural zone and all the people from the zone.

    What was this summit all about?

    This is the third in the series of annual summits organised by the NPA in line with our self-set mandate to our people and zone. Each summit focuses attention on key area of critical importance for national or state development. For example our last summit focused on security threat from cross border migration, which as you know has now become a national issue of critical importance.

    Other activities of the NPA include legislative and social advocacy, social outreaches, such as scholarship awards, mentorship and job placement initiatives, medical outreaches for rural communities, and other initiatives that represent our humble contribution to the development of our zone, our state and our country.

  • Axxela achieves IMS certifications

    Axxela Limited, a gas and power portfolio company, has achieved a triple – implementation, evaluation and certification of Integrated Management Systems: ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.

    The Standards Organisation of Nigeria (SON) said Axxela is the first  company  in the oil and gas space to hold all three certifications simultaneously, underscoring its longstanding commitment to Environmental, Health, Safety and Quality (EHSQ) management.

    An Integrated Management System (IMS) collates all of an organisation’s systems and processes into one holistic framework, enabling it function as a single unit with streamlined objectives.

    Speaking on the issue, Axxela Chief Executive Officer, Bolaji Osunsanya, said: “We constantly strive to apply global best practices across all facets of our enterprise to maintain a high standard of quality, occupational health and protection of the environment. My commendations go out to the Axxela team for continually pushing the envelope, and as we advance economic empowerment and industrialisation across the region, these integrated certifications are testament to our collective efficacy as an organisation.”

    Axxela’s EHSQ Manager, Uche Okpala, also said: “We actively engage SON, the frontline certification body and Nigerian representative of the International Organisation for Standardisation (ISO), to provide objective assessments of our management systems. Since 2009, our Quality Management System was certified in accordance with the requirements of ISO 9001:2008. This heralded subsequent efforts to consolidate this achievement with certifications in Environmental Management System (ISO 14001:2004) and Occupational Health & Safety (ISO 45001:2018). In keeping with the maintenance requirements of these standards, we have always maintained our certifications to the latest revisions, culminating in our most recent implementation, transition and certification across the three Integrated Management Systems.”