The Nation Newspaper

Category: Energy

  • Workers assured of job security

    The management of NIPCO Plc, one of Nigeria’s major downstream companies, has said the firm’s Corporate Social Responsibility (CSR) investments in 2019 will be  increased and assured employees of job security despite challenges in 2018.

    NIPCO’s Managing Director Sanjay Teotia, stated this in his New Year message to  members of staff. He maintained that the company will “continue to create opportunities for more vibrant and experienced personnel that will achieve efficient workforce to guarantee peerless service delivery.”

    He said: “Fourteen years of operations in an industry that is anything but tempestuous is a great achievement worthy of applause. I have no illusion that there is still a lot to be achieved as the company climbs the ladder to the very top.”

    It is instructive to note that in spite of the “daunting challenges in the hydrocarbon industry, the organisation has ensured the security of staff employment even as we strive to continually improve on your wellbeing.

    “My management will also continue to focus not only on productivity and a healthy bottom-line but also to staying relevant in the industry.I wish to assure that the company’s Corporate Social Responsibilities (CSR) initiatives would be stepped up .The initiatives underscore the fact that we care for host communities and not just the bottom line.

    In a review of his administration, Teotia said: “Since my assumption of duty as the helmsman in January 2017, I am particularly happy of the crop of employees and other stakeholders that I have worked with.

    “As employees of the company, you remain the backbone of the organisation pitched against the background that a company stands and works efficiently proportionate to the output of its employees.

    “NIPCO’s performance during the year is a testimony to the growing faith in me and the entire management team, even as I wish to intimate you that your contribution is pivotal to the company’s success.

    “You have demonstrated- individually and collectively – hard work, perseverance and utmost dedication and of which I am proud of.

     

  • Marketers to access N234b subsidy arrears in December

    Oil marketers would have to wait till the end of 2019 to access N234billion subsidy arrears, which the Federal Government paid them in December 2018, through promissory notes.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    MOMAN’s Secretary, Mr. Clemens Isong, in an interview with The Nation on phone,  said the promissory notes through which the government paid the marketers will mature December 31st, this year, adding that marketers are not in a hurry to sell the promissory notes to avoid more losses.

    He said marketers chose not to sell the promissory notes at discounted rates as approved by law because they do not want to lose more money.

    Isong said: “The government stated it explicitly in the promissory notes’ certificate that the notes would mature December this year and we (marketers) have resolved to wait to avoid further losses.

    “The banks in which the marketers borrowed money from to finance their operation have accepted the promissory notes. Right now, reconciliation process is going on between the banks and the marketers, with a view to ascertaining the amount borrowed by marketers,” he said.

    The development, Isong said, means that marketers should wait for some time in order to access the cash for operation, adding the issue is having undesirable consequences on their activities.

    According to him, many marketers have either closed shops or died due to the debts owed them by the Federal Government, urging the banks to fast-track the issue of converting the promissory notes into cash.

    He said it was DAPPMAN, which threatened to go on strike over non-payment of the subsidy arrears, adding his members have never done so.

    Similarly, DAPPMAN’s Executive Secretary, Mr. Femi Adewole, said the promissory notes are yet to be accepted by some financial institutions, let alone commencing the process of converting them into cash for use by the marketers.

    He, however, failed to mention the names of the affected banks in order not to strain the relationship existing between them and the marketers.

    “Not all the banks have acted on the promissory notes given to marketers by the Federal Government, which serves as payment for the subsidy arrears owed them for importing petroleum. Some of the banks are waiting for what they described as ‘policy documents’ from the Central Bank of Nigeria (CBN), before they start processing the promissory notes for onward conversion into cash. Nobody can say precisely when CBN would provide the so-called policy documents,” he added.

    Adewole said there is lull in the activities of many marketers despite the payment of the first tranche of the subsidy arrears and plans by the Federal Government to settle all outstanding debts owed the marketers.

    He said some DAPPMAN members are still afloat, by working to withstand the competition in downstream, while the operation of many marketers are in limbo.

    The issue of payment of subsidy arrears owed marketers was enmeshed in controversy. The controversy culminated into different figures as the marketers had different amount and the government a different amount.

     

  • Dangote Refinery gets key component

    The Dangote Oil Refining Company (DORC) Limited said it just took delivery of one of the major components of its refinery equipment; the regenerator for the Residual Fluid Catalytic Cracker (RFCC).

    Fluid catalytic cracking (FCC) is one of the most important conversion processes used in petroleum refineries. It is widely used to convert the high-boiling, high-molecular weight hydrocarbon fractions of crude oils into more valuable gasoline, olefinic gases, and other products.

    The Nation also learnt the company has commenced installation of equipment for the 650,000 barrels per day crude oil refinery being built in the Lekki area of Lagos State.

    The refinery has continued to receive heavy equipment through the Dangote jetty located close to the refinery in the Lekki Free Trade Zone.

    The jetty, constructed by Dangote Oil Refinery, received its first ship of 132 metres long, 9,755 tonnes general cargo last year to deliver essential equipment for the ongoing construction.

    The refinery is being designed to accommodate multiple grades of domestic and foreign crudes, which will be processed into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro V emissions specifications as well as polypropylene.

    The refinery also has a crude distillation unit, single-train residual fluid catalytic cracking unit, diesel hydro-treating unit, continuous catalyst regeneration unit, alkylation unit, and a polypropylene unit and will also be able to adjust its production of different products to match market demands.

    The Head of Quality Assurance/Quality Compliance and Construction, DORC, Mr. Rama Putta, said the sand filling of the site has been completed, adding that 60 per cent of the land was swampy.

    “The refinery equipment comes in semi-finished shape and we will finish them off here at the site. The remaining components are being manufactured in various countries including China, India, America, South Korea, Singapore and Malaysia,” he added.

    The Executive Director, Dangote Group, Mr. Devakumar Edwin, said the refinery would stimulate economic development in Nigeria. He said the refinery was designed to process a variety of light and medium crude grades and produce extremely clean fuels that meet Euro V specification.

    The Dangote boss said: “Usually, the sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment, adding that the Dangote plant has invested in most advanced technology to produce Euro V fuel to help Nigeria meet the European Standard of gasoline.”

    He said the project would provide thousands of direct and indirect jobs and will add value to the Nigeria’s economic development, noting that the refinery will lead to significant skills transfer and technology acquisition opportunities in the country.

     

  • Firms partner to fund climate Launchpad

    All On, an off-grid energy company backed by Shell and Nigeria Climate Innovation Centre (NCIC) has sealed a grant funding partnership to support the 2018-2019 climate launchpad winning teams’ incubation; the NCIC’s inaugural incubation programme.   The Nigeria edition of the World Bank’s Climate Launchpad (CLP) -Global Idea Challenge Competition, selected 15 clean technology businesses to be incubated by the NCIC after a nationwide application and rigorous selection process.

    The Nigeria Climate Innovation Centre (NCIC) is set up by the World Bank Group as part of a global network of Climate Innovation Centres located in Asia, Africa, and the Caribbean. Hosted in the Pan-Atlantic University’s Enterprise Development Centre (EDC) in Ajah, Lagos and established through a partnership between the World Bank and the Federal Government of Nigeria, the NCIC seeks to accelerate access to energy in Nigeria by supporting and accelerating innovations and early stage enterprises.

    Through the CLP, the NCIC has identified 15 early stage Nigerian companies with innovative ‘green’ business ideas and is providing incubation support to ensure they move from the ideation and proof of concept phases to market entry and venture scaling phases. The funding from All On will be used to support the incubation of these 15 selected clean tech businesses. Some of the companies being incubated include Ubabio Energy, Energija and Eco-LiFe Now.

    “It’s a great pleasure to partner with All On to kick-off the NCIC’s incubation programme,” says the inaugural CEO of the NCIC, Mr. Bankole Oloruntoba. “This is the first of many partnerships that will help in creating a pipeline of viable, clean energy innovation driven ventures and expand the viability of the Nigerian green economy.”

    According to Dr. Wiebe Boer, the CEO of All On; an off-grid energy impact investment company backed by Shell, “We are proud to be partnering with the NCIC on the maiden edition of the Climate Launchpad (CLP) in Nigeria. This partnership will enable All On to identify, accelerate, and scale new indigenous clean energy innovations in the country.’’

    Co-founder of Eco-Life Now, one of the businesses from the Climate Launchpad competition, Tosin Jolaoye,  acknowledged this partnership stating that “the efforts of All On and NCIC in creating a sustainable energy solution through building viable small businesses in Nigeria has come at the right time.

     

     

    and will lead to positive impacts in Nigeria’s alternative energy and power sector”.

     

  • Dangote Refinery gets key component

    The Dangote Oil Refining Company (DORC) Limited said it just took delivery of one of the major components of its refinery equipment; the regenerator for the Residual Fluid Catalytic Cracker (RFCC).

    Fluid catalytic cracking (FCC) is one of the most important conversion processes used in petroleum refineries. It is widely used to convert the high-boiling, high-molecular weight hydrocarbon fractions of crude oils into more valuable gasoline, olefinic gases, and other products.

    The Nation also learnt the company has commenced installation of equipment for the 650,000 barrels per day crude oil refinery being built in the Lekki area of Lagos State.

    The refinery has continued to receive heavy equipment through the Dangote jetty located close to the refinery in the Lekki Free Trade Zone.

    The jetty, constructed by Dangote Oil Refinery, received its first ship of 132 metres long, 9,755 tonnes general cargo last year to deliver essential equipment for the ongoing construction.

    The refinery is being designed to accommodate multiple grades of domestic and foreign crudes, which will be processed into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro V emissions specifications as well as polypropylene.

    The refinery also has a crude distillation unit, single-train residual fluid catalytic cracking unit, diesel hydro-treating unit, continuous catalyst regeneration unit, alkylation unit, and a polypropylene unit and will also be able to adjust its production of different products to match market demands.

    The Head of Quality Assurance/Quality Compliance and Construction, DORC, Mr. Rama Putta, said the sand filling of the site has been completed, adding that 60 per cent of the land was swampy.

    “The refinery equipment comes in semi-finished shape and we will finish them off here at the site. The remaining components are being manufactured in various countries including China, India, America, South Korea, Singapore and Malaysia,” he added.

    The Executive Director, Dangote Group, Mr. Devakumar Edwin, said the refinery would stimulate economic development in Nigeria. He said the refinery was designed to process a variety of light and medium crude grades and produce extremely clean fuels that meet Euro V specification.

    The Dangote boss said: “Usually, the sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment, adding that the Dangote plant has invested in most advanced technology to produce Euro V fuel to help Nigeria meet the European Standard of gasoline.”

    He said the project would provide thousands of direct and indirect jobs and will add value to the Nigeria’s economic development, noting that the refinery will lead to significant skills transfer and technology acquisition opportunities in the country.

  • Workers assured of job security

    The management of NIPCO Plc, one of Nigeria’s major downstream companies, has said the firm’s Corporate Social Responsibility (CSR) investments in 2019 will be  increased and assured employees of job security despite challenges in 2018.

    NIPCO’s Managing Director Sanjay Teotia, stated this in his New Year message to  members of staff. He maintained that the company will “continue to create opportunities for more vibrant and experienced personnel that will achieve efficient workforce to guarantee peerless service delivery.”

    He said: “Fourteen years of operations in an industry that is anything but tempestuous is a great achievement worthy of applause. I have no illusion that there is still a lot to be achieved as the company climbs the ladder to the very top.”

    It is instructive to note that in spite of the “daunting challenges in the hydrocarbon industry, the organisation has ensured the security of staff employment even as we strive to continually improve on your wellbeing.

    “My management will also continue to focus not only on productivity and a healthy bottom-line but also to staying relevant in the industry.I wish to assure that the company’s Corporate Social Responsibilities (CSR) initiatives would be stepped up .The initiatives underscore the fact that we care for host communities and not just the bottom line.

    In a review of his administration, Teotia said: “Since my assumption of duty as the helmsman in January 2017, I am particularly happy of the crop of employees and other stakeholders that I have worked with.

    “As employees of the company, you remain the backbone of the organisation pitched against the background that a company stands and works efficiently proportionate to the output of its employees.

    “NIPCO’s performance during the year is a testimony to the growing faith in me and the entire management team, even as I wish to intimate you that your contribution is pivotal to the company’s success.

    “You have demonstrated- individually and collectively – hard work, perseverance and utmost dedication and of which I am proud of.

  • Nigeria’s investment prospects in oil, gas high

    James Shindi is the Chief Executive of Brevity Anderson, organisers of the annual Nigeria Petroleum International Summit (NIPS). In this interview with reporters, he talks about the investment prospects Nigeria has in the oil and gas industry and NIPS 2019, among others, EMEKA UGWUANYI was there.

    How attractive is Nigeria for oil and gas investment?

    If you take into account Nigeria’s condensates production, the daily average production is over 2 million barrels. There is a very realistic capacity to upscale the country’s proven reserves to 40 billion barrels within the next few years, so this market will continue to remain attractive for a long time.

    Even if there are no new oil finds, you are looking at another 45 years or so of supply at current rates. However, when you start to look at the huge gas reserves of well over 5 trillion cubic metres, which ranks Nigeria as possessing Africa’s largest gas reserves, the picture looks even better. This surely has to be the investment destination of choice and will continue to be.

    What is the Federal Government’s objective for organising the annual international petroleum summit?

    The Federal Executive Council (FEC) took the decision to approve the event in its current format with a private sector operator to create an international platform for high-level discussions around the hydrocarbons sector, which helps lead Africa’s response to the current and future challenges in the sector. It is one of the ways Nigeria continues to provide leadership in the sector on the continent.

    The event, being the property of the Federal Government, also means that all key government decision makers attend to network, provide answers to burning questions and also, listen to feedback from stakeholders. And with a focus on technology and innovation, the aim is to grow the event into a must attend meeting for unveiling of major technological breakthroughs. We are already starting to see this happen and we at Brevity Anderson feel absolutely delighted to be on this journey with the Federal Government.

    What is the main thrust of this NIPS2019?

    Issues around oil market stability continue to be on every stakeholder’s front burner. When you speak to both producers and consumers, you soon get the sense that price volatility hurts both sides. This sort of market instability means that investment decisions are either delayed or in some instances scrapped. Since 2014, we have been seeing more and more producers turning exclusively to short-cycle projects, the long-term effect of this will definitely have an impact beyond just oil markets.

    Within the context of Organisation of Petroleum Exporting Countries (OPEC) and African Petroleum Producers Organisation (APPO), Nigeria continues to play a leading role in driving talks to help stabilise the market. I would like to stress here and at the same time, commend the Federal Government for deliberately taking concrete steps as part of a bigger strategy of bringing down production costs while initiating the right policies to attract additional investment.

    For example, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, announced a roadmap to attract an additional $10 billion worth of new investment into the sector in Nigeria alone. We are seeing a real shift from just talk to tangible action.

    Against this background and the technological advancement (or lack of it in some regard), geo-political activities and other very existing topics, the event creates the perfect platform to engage stakeholders as the event will take place at different levels; Government-to-Government, Business-to-Business and Government-to-Business. Nigeria International Petroleum Summit (NIPS) 2019 will certainly be the place to be between January 27 and 30, 2019.

    ‘’We are glad to report to you that we have received significant amount of interest from both local and international players including national delegations from seven countries, headed by top political and economic leaders.

    For example, Khalid al-Faliih, the Saudi Energy Minister, during his recent visit to Nigeria, specifically mentioned that Africa and in particular, Nigeria, remains a key partner in forging partnerships and he is looking forward to returning to our great country in 2019 both to the NIPS event and to further deepen the special relationship between both countries.

    Amongst other international delegates, the Norwegian State Secretary (Deputy Minister) for International Development Jens Frølich Holte also confirmed his participation at the NIPS 2019.

  • Marketers to access N234b subsidy arrears in December

    Oil marketers would have to wait till the end of 2019 to access N234billion subsidy arrears, which the Federal Government paid them in December 2018, through promissory notes.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    MOMAN’s Secretary, Mr. Clemens Isong, in an interview with The Nation on phone,  said the promissory notes through which the government paid the marketers will mature December 31st, this year, adding that marketers are not in a hurry to sell the promissory notes to avoid more losses.

    He said marketers chose not to sell the promissory notes at discounted rates as approved by law because they do not want to lose more money.

    Isong said: “The government stated it explicitly in the promissory notes’ certificate that the notes would mature December this year and we (marketers) have resolved to wait to avoid further losses.

    “The banks in which the marketers borrowed money from to finance their operation have accepted the promissory notes. Right now, reconciliation process is going on between the banks and the marketers, with a view to ascertaining the amount borrowed by marketers,” he said.

    The development, Isong said, means that marketers should wait for some time in order to access the cash for operation, adding the issue is having undesirable consequences on their activities.

    According to him, many marketers have either closed shops or died due to the debts owed them by the Federal Government, urging the banks to fast-track the issue of converting the promissory notes into cash.

    He said it was DAPPMAN, which threatened to go on strike over non-payment of the subsidy arrears, adding his members have never done so.

    Similarly, DAPPMAN’s Executive Secretary, Mr. Femi Adewole, said the promissory notes are yet to be accepted by some financial institutions, let alone commencing the process of converting them into cash for use by the marketers.

    He, however, failed to mention the names of the affected banks in order not to strain the relationship existing between them and the marketers.

    “Not all the banks have acted on the promissory notes given to marketers by the Federal Government, which serves as payment for the subsidy arrears owed them for importing petroleum. Some of the banks are waiting for what they described as ‘policy documents’ from the Central Bank of Nigeria (CBN), before they start processing the promissory notes for onward conversion into cash. Nobody can say precisely when CBN would provide the so-called policy documents,” he added.

    Adewole said there is lull in the activities of many marketers despite the payment of the first tranche of the subsidy arrears and plans by the Federal Government to settle all outstanding debts owed the marketers.

    He said some DAPPMAN members are still afloat, by working to withstand the competition in downstream, while the operation of many marketers are in limbo.

    The issue of payment of subsidy arrears owed marketers was enmeshed in controversy. The controversy culminated into different figures as the marketers had different amount and the government a different amount.

  • NGO warns against attacks on BEDC

    A group with 46 allied Civil Society Organisations (CSOs),  Transparency Advocacy for Development Initiative (TADI), has warned against incessant attacks on Benin Electricity Distribution Company (BEDC) by electricity consumers in Edo State.This  concerns especially those hiding under the cover of civil rights advocacy to foist unlawful conducts, and the Edo State Governor, Godwin Obaseki, saying such persons should desist from such acts forthwith or face legal actions.

    Transparency Advocacy for Development Initiative (TADI) gave the warning at a world press conference in Abuja, which was addressed by its National Convener, Comrade Solomon Adodo, at Abia House.

    He said: “We call on the Governor of Edo State to forthwith refrain from antagonising BEDC Plc and instead follow relevant rules and guidelines governed by clearly cut contract terms. The issue of power distribution in Edo State should not be unnecessarily politicised.

    “It should be made clear that all distribution companies (DisCos) are firmly protected by the contract terms and conditions under, which they were issued licences and it is on record that BEDC has not in any way breached such conditions.

    “We shall resist this evil at all costs in the best interest of sustainable business practice in order not to ward of future investors and/or frustrate the gains made thus far in the power sector.”

    On this note, we call on the Bureau of Public Enterprise (BPE), the Nigerian Electricity Regulatory Commission (NERC), the Nigeria Bulk Electricity Trading Company (NBET) and every concerned regulator to immediately come out and clear the air on the needless controversies being stirred to cripple the BEDC under its current management. “If we do not get appropriate feedback within seven days of this notice, we shall be left with no other option but to embark on peaceful procession to these offices for the sake of sanity in our power sector,” the group said.

    TADI said as stakeholders, the Federal Government has representation on the board of respective DisCos and it is totally at its discretion to appoint whoever she deems fit to represent her interest in the DisCos. “It is not the DisCos that determine who the Federal Government appoints as her representative contrary to what some naysayers would have us believe in the case of BEDC’’.

  • NNPC inaugurates 25m-litre tank at Ejigbo Depot

    Fuel depots are now loading effortlessly following the repair of 25million litre tanks at the Ejigbo Satellite depot of the Nigerian National Petroleum Corporation (NNPC).

    Prior to this period, marketers were experiencing hitches loading their trucks as those tanks were not in good shape and unable to meet demands from the depot.

    However, the story changed two months ago when NNPC concluded the repair of the tanks, as part of efforts to fix the 20 depots of the Corporation in the country.

    Independent Petroleum Marketers Association of Nigeria (IPMAN) Chairman, Ejigbo Depot, Mr. Alanamu Balogun, said repair of the 25 million litre tank was a good omen for the depot as marketers resume loading seamlessly there.

    According to him, the depot is getting supplies from Atlas Cove regularly now following repair of the tank.

    Balogun said: “During the period the tank was faulty, the depot was loading 60 trucks to 70 trucks daily, as there was not enough storage facilities to accommodate fuel in the depot. Now, the depot can comfortably load 100 trucks in a day. Currently, more than 100 trucks are being loaded daily.

    “The repair of the 25milllion litre tank is aiding supply of fuel to areas such as Suleja, Ore, Ilorin and other parts of the country. Now, scarcity of fuel is no longer prevalent in the South-Western states as the depot has taken care of that area.”

    On the issue of kerosene, he said the depot lacked capacity to supply the depot as it does not have functioning kerosene tank on ground now.

    “The petrol and diesel tanks are working well now. There are no cases of leakages from the tanks as NNPC has taken up the responsibility of repairing the tanks,” he added.

    He urged the Federal Government not to relent in its efforts to improve infrastructure in the oil and gas industry, adding that efforts to strengthen  the downstream sub-sector of the oil industry would help in ensuring adequate supply of fuel in the country.