The Nation Newspaper

Category: Energy

  • ‘Nigeria needs local content for growth’

    Nigerian Content Development and Monitoring Board (CDMB) will not relent in its efforts to propagate the use of local contents in every aspect of the economy for growth, its Executive Secretary, Simbi Wabote, has said.

    He said the need became imperative in order to encourage the use of local contents, by successive administrations in the country, urging research institutes and oil companies to play key roles in this regard for the growth of the economy.

    Speaking during its induction as a fellow member of the Institute of Petroleum Studies (IPS) Port Harcourt, recently, he said the institute is partner in progress in the search for quality materials, needed to achieve a truly grown nation.

    The institute awarded him for his exceptional accomplishments in engineering, strategic management and local content leadership in the Oil and Gas Industry. The award was part of the flagship programme of the institute’s 15th Induction Ceremony/Exhibition which took place at Ebitimi Banigo Auditorium, University of Port Harcourt.

    He said Wabote was one of the two persons admitted to fellowship of the institute this year, while the second  person was Hervochon Joel, a French national and Executive Director, Deep Water District, TUPNI, Lagos. Both  were inducted for their distinguished career in the oil and gas sector, spanning nearly 30 years.

    IPS was established 15 years ago in collaboration with Institut Francais du Petrole et Energies Nouvelle (IFP/New Energy), the Ecole du Petrole et des Monteurs (IFP School), Paris, France.

    The school was established primarily as a Centre of Excellence in Geosciences, Drilling and Production technology, petroleum economics, policy and strategic studies, in order to provide topnotch academic and hands-on education for young professionals.This is to meet the needs of the Nigerian petroleum industry through a commitment to excellence in training, applied research, continuing education and capacity building.

    The main sponsor of the institute is the Nigerian National Petroleum Company (NNPC)/Total E & P Nigeria Limited (TEPNG) Joint Venture.

    In the citation read by the Institute, Mr. Wabote was described as an “experienced and excellent professional  who has recorded huge successes in the various assignments so far carried out, making him an effective and resourceful manager who is able to groom and manage divers and high performing teams”.

  • Aspen Energy roundtable coming

    Aspen Energy, an integrated energy consultancy company will host the second Aspen Energy Roundtable in January  in Lagos. The event, a platform for thought leadership in Nigeria’s energy sector, attracts leading operators in the energy sector in the country as well as top policy makers.

    The theme of the proposed Roundtable is: “Gas Business in Nigeria: Challenges and Opportunities”.   It will feature deliberations on the full spectrum in Nigeria ranging from the Nigerian gas master plan- the journey so far, to financing natural gas projects in Nigeria among other topics.

    The first Aspen Energy Roundtable event held in July 2017 attracted key players in the industry, which included Mr Austin Avuru (MD/CEO of Seplat Petroleum), Dr. Lai Fatona (MD ND Western), Mr. Osten Olorunsola (Former DPR Director), Mr. Seye Fadahunsi (MD Pillar Oil), Mrs. Pat Maseli (Head Upstream Monitoring & Regulation representing the MD Department of Petroleum Resources), Mr. Olusegun Olujobi (MD Vertex Energy), Mr. Bunmi Toyobo (Executive Director- Oil Producers Trade Section) and Dr. Mason Oghenejobo amongst several others.

    In his opening speech at the inaugural Aspen Energy Roundtable with the theme: Growing Nigerian Independents to World Class E&P Companies, Mr. Opadere stated that with over 60 years of petroleum operations in Nigeria and the advent of indigenous oil and gas companies, the Nigeria’s Petroleum industry has both the capacity and the opportunity to be a catalyst for investments and economic growth in Nigeria, creating employment for several thousands of Nigerians.

    The Managing Director of Aspen Energy, Sir Benjamin Ofodile, reiterated that the Roundtable aims to articulate the organising logic for building a vibrant and sustainable energy sector in Nigeria. He said that the intellectual content is usually very rich, adding that the output is distilled and communicated to various stakeholders, including government.

  • Nigeria needs over $3b for oil, gas infrastructure

    Nigeria will  need more than   $3 billion to fix oil and gas infrastructure

    in the next 20 years,  Oilserve Group’s Managing Director, Dr Emeka Okwuosa, has said.

    He said the money would be used

    to repair and build infrastructures that would put the power, petroleum and allied sector in shape.

    In a paper titled: “Infrastructural Development: A Key to Economic Growth and Development In Nigeria” and delivered at the 48th convocation ceremony of the University of Nigeria, Nsukka,  he said the investment would also help to optimise the collective contributions from operators in oil and gas, power, maritime and other sectors of the economy.

    According to him, the World Bank ranks Nigeria lowly as viable destinations for doing business in Africa, adding that the poor state of the nation’s infrastructure has nullified the reports.

    “The 2017 World Economic Forum (WEF) Report ranks Nigeria, out of 137 countries, as follows: Roads Quality: 127th, Airport Quality: 125th,  Electricity Supply: 132nd, education system: 120th,  Math & Science: 118th, Innovation: 112th. How do we respond to these negative and retrogressive occurrences,? he asked.

    According to him, Nigeria needs to invest over $3 billion on  infrastructure in the next 20 years,  in order to fix into the ranking done by the World Bank.

    Okuwosa said:  ‘’Where can we source for this funding? It is evident that government alone can not provide these resources, he asked.

    He advised Federal Government to  leverage  on the private sector capital to fix the infrastructure and the economy in particlar, stressing that the government must develop public-private partnership to move the country forward.

    He said that government can play a key role in the economy, by creating an enabling environment needed to grow the power and oil sector of economy.

    Okwuosa said that the National Sovereign Wealth Fund should act as a catalyst for the provision of funding needed for development.

    He said the government and the private sector must, as a matter of urgency respond to these deficiencies in the economy by accelerating infrastructure development.

    “By this, I specifically refer to power, roads, rail, ports and telecommunication (especially broadband technologies).Also equally important and in alignment, is the development and implementation of the legal and regulatory frameworks and environment and all other related processes that will enhance the ease of doing business in Nigeria.’’ he said.

    He said the total value of Nigeria’s infrastructural stock (road, rail, power, airports, waterways, telecoms, and seaports) represent only 35 per cent of Gross Domestic Products (GDP).

    “ In consideration and comparison to other peer emerging markets countries whose average is 70 per cent of GDP, Nigeria is way below expectation for an appreciable development for economic growth and prosperity,’’ Okwuosa added.

    He said that the massive underinvestment in infrastructural development had been the result or bane to achieving the nation’s vision of becoming a top 20 economy by the year 2020.

    The Oilserv helmsman said that in reality, the present infrastructural deficit in Nigeria would continue to adversely impact on its economic growth.

    According to him,  the purpose of the lecture is to expose the reasons why this potential has remained relatively unachieved.

    This, he said, was apart from the widely held opinion that Nigeria had the potential to become a major power and player in the global economy by virtue of its human and natural resources endowments.

  • NNPC to deliver gas projects by 2020

    The Nigerian National Petroleum Corporation (NNPC) will deliver its seven critical gas development projects(7CGDP) by 2020. This would ease gas supply to the power plants across the country.

    It said the projects were designed  to leverage the immense gas potential in the country, and further help in meeting the target of generating at least 15,000 megawatts (Mw) of electricit, by 2020

    Its Principal Manager, Public Affairs, Ndu Ughamadu, said the corporation is relying on the projects to generate 50,000Mw by 2020, in order to improve the supply of electricity in Nigeria.

    In a telephone interview,   he said NNPC is working to nurture the projects to fruition by 2020.

    He said when this happens, the country would be able to transport gas to power plants seamlessly and boost power supply.

    NNPC, he said, is working in line with the mandate given to it by the Federal Government to deliver the projects by 2020 and further boost power supply in the country.

    According to him, the government has directed NNPC to complete the gas projects, adding that when this happens, thermal plants would not have difficulties accessing gas optimally for growth.

    He said gas remained the only feedstock used in generating  70 per cent of electricity consumed in the country and that NNPC is not leaving any stone unturned to maximise its potentials.

    To make the projects come to fruition by 2020, the state oil firm is constantly holding meetings on the issue, in order to ascertain the level of developments on the project.

    He said NNPC has fixed next week for a meeting with the stakeholders.   It has also directed the Project Management Office (PMO) to discuss with the operators of the project on their problems, needs among other things, that would help in bringing the project to fruition.

    PMO is a department charged with the responsibility of accesing the status of the seven critical gas development projects, among other initiatives spearheaded by the corporation.

    Ughamadu said:” Two issues are vital to the success of the projects, and NNPC has taken care of them.  First is the issue of engagement with the operators of the project, and NNPC has directed the Project Management Office to carry out such roles.

    “Frankly speaking, the level of engagement between NNPC and other key stakeholders on the issue is very high. The aim is to know  the status of the projects, challenges facing the projects and the institutions/facilities that would help in improving the operation of the projects. These can be referred to as enablers  that are critical to the growth of the project.

    Ughamadu said the oil firm has fixed December 10, this year for a Steering Committee Meeting on the projects.

    He said the 2020 deadline set aside for the implementation of the seven critical gas development projects is sancrosant, adding that NNPC has concluded plans to meet the deadline.

    NNPC  had put in place measures to ensure effective utilisation and commercialisation of gas in the country.This made the corporation to invest in the seven critical gas development projects in the country.

    NNPC’s  Group Managing Director, Dr Maikanti Baru said the corporation is keen on using some of the new projects such as the Ajaokuta-Kaduna-Kano gas pipeline project to open up not only the gas corridor, but to also ensure that power plants that are built can inject stability into the national grid.

  • NNPC/Chevron JV donates to IDPs in Delta, Bayelsa

    The Nigeria National Petroleum Corporation (NNPC)/Chevron Nigeria Limited Joint Venture has donated mattresses, food items, toiletries and other materials to assist flood victims in Warri Southwest, Warri North, Delta State and Igbogene in Yenagoa Local Government Area of Bayelsa State. The gesture, according to the joint venture, is another significant contribution to the wellbeing of people in Nigeria.

    At  Warri Southwest, Secretary to the Local Government, Mrs. Gabari Gladys Omare, and the state Emergency Management Authority (SEMA) representative, Mrs. Attu Evelyn, received the items on behalf of  the council Chairman, Hon Tuoyo Duke Taiye, while in Warri North, Secretary to the Local Government, Mr. Victor German with the support of Head of Department, Engineering, Jerry Atigan, received the items on behalf of the council chairman, Mr. Aduge Okorodudu. At Igbogene, the items were received by  Angus Didei on behalf of Bayelsa State Emergency Relief Committee.

    Explaining the reason for the donations, General Manager, Policy, Government and Public Affairs (PGPA), Esimaje Brikinn,  represented by Tony Emegere, PGPA superintendent, said: “This donation is in line with the NNPC/Chevron Joint Venture’s commitment and our tradition of care for the welfare of people around our areas of operation in Nigeria and beyond.  As we donate these items today, I hope they will assist in meeting the needs of the people,” he said.

  • Nigeria to consume 2m metric tonnes LPG by 2025

    To improve domestic consumption of gas, Nigeria will consume two million metric tons of Liquefied Petroleum Gas (LPG) by 2025, Matric Energy Limited’s Chief Marketing Manager, Mrs. Toyin Sowumi, has said.

    She said the development became imperative to enable Nigeria equal other countries, where LPG’s use is recognised as a healthy source of cooking.

    According to her, LPG production would be boosted in the country when consumption increases from 600 metric tonnes per annum to 2,000 metric annually.

    Speaking during a programme titled: ‘Meet Your Customers’ Forum’ in Warri, Delta State, she said Matrix Energy supplies 30 per cent of LPG distribution in the country, adding that the firm has deployed 65 LPG trucks to deliver to customers in various parts of the country.

    Sowunmi said: ‘’To achieve the target of taking the LPG consumption rate in Nigeria from about 600 metric tons per annum to around 2 million by 2025, the company has deployed 65 LPG trucks to deliver to its customers in different parts of the country and planning to procure more for easy distribution of product, about 30 per cent supplies of LPG distribution across Nigeria with an intent for an increase.’’

    According to her, the forum was meant to deepen the interest of many people in the product, adding that the firm is supporting the on-going climate change campaign in Nigeria and beyond.

    She said the issue of reduction in greenhouse emission is key to the growth of the people, adding that the firm will not relent in its efforts to make the campaign a success in Nigeria.

    The Nigerian Bureau of Statistics (NBS), he said, affirmed that LPG is the cleanest source of energy, stressing that it is a good development for the country where 66 per cent of its population uses firewood and has the tendency to change to LPG.

    Similarly, Matrix Energy’s Terminal Manager, Mr Raphael Biu, said Matrix Energy is working to ensure the needs of the people are met, adding that the firm is committed to the growth of LPG usage in the country.

    He said LPG consumption in Nigeria is 600 metric tonnes ( about 2 kilogramme per capital), compared to Ghana (4.3 kilogramme) and Sierra Leone  (9 kilogramme) per capital, stressing that the Federal Government is working to ensure that Nigerians consume 2 million metric tonnes of LPG by 2025.

    Also, the Nigerian Association of LPG Marketers (NALGAM) president, Ogieva Nosakhare Okunbo, has urged the government to provide a friendly environment for LPG production, adding that the development would help boost consumption.

    He also urged the government to devote the subsidy on the importation of kerosene to producing more cylinders, noting that if the government is committed to injecting five million cylinders, yearly into the system for five years, gas will become the most commonly used source of energy in Nigeria.

    “Another way forward is for the Federal Government to redirect the subsidy dedicated to kerosene now to the production of cylinders. If we inject five million cylinders each year for five years to the system, gas will become the most commonly used source of energy; for cooking, power automobile, power some other things. Statistics have shown that nothing less than 5,500 persons die daily globally from the use of solid fuel. That is indoor pollution from the use of dirty fuel for cooking,” he said.

  • Shell trains Abia fire-fighters

    Shell Nigeria Gas (SNG) has retrained 30 fire-fighters in  Abia State and donated fire-fighting equipment to the state fire service. This intervention was triggered by two recent fire disasters in the state, which resulted in deaths and loss of property worth millions of naira.

    Over 150 shops in the timber and furniture section of the Nkwo Ngwa Market in Aba was gutted by fire mid-November, barely five weeks after an explosion on a pipeline belonging to the Nigeria National Petroleum Corporation (NNPC) in Umuaduru and Umuimo communities of the state killed a number of people.

    The SNG intervention, according the company’s Managing Director, Ed Ubong, was to demonstrate the company’s continued care for the people and support to Nigerians particularly those in the company’s areas of operations.

    “Some of these disasters are either avoidable or preventable. The major gaps are in training and equipment, hence our quick response to retrain the firefighters and provide them with modern equipment to support their operations,” Ubong said, adding that SNG would strengthen its gas distribution network in the Abia State to help in its rapid industrialisation.

    The equipment donated included tunics and personal protective equipment (PPE). The state’s Commissioner for Transport, Charles Chinedum Elechi, received the items with a commitment that the state would improve on its safety record in a manner that would promote industrialisation and development.

    Speaking at the donation, the state’s Fire Service Comptroller, Victor Gbaruko, described the training of his personnel, particularly in hydrocarbon fire-fighting, as an investment worthy of emulation by other big players in the state’s economy.

    The 20-year-old SNG is owned by Shell and is the first gas distribution company run by any oil major in Nigeria. SNG’s extensive gas distribution network in Abia, Ogun and Rivers states has boosted manufacturing output and helped these states to grow their internally generated revenues while providing local employment opportunities.

    In 2017, the SNG executed a Memorandum of Understanding (MoU)with the Rivers State government for the distribution of gas to industries in the Greater Port Harcourt area and its environs. The agreement provided further opportunities for the SNG to promote gas as more reliable, cleaner and cost-effective alternative to liquid fuels in Nigeria.

  • World Bank scores Nigeria’s energy sector low 

    Nigeria does not have the energy to implement its industrialisation goals, a development which has slowed down its economic growth, the World Bank has said

    The bank, in its report titled: Inadequate energy supplies and its implications on African economy, said  electricity shortage has hindered Nigeria from meeting many of the goals outlined in its economic recovery plans.

    The report, dated 2017, listed the goals to include creation  of employment opportunities for the skilled and unskilled workforce, increasing manpower among industrial workers, provision of healthcare facilities, building of schools, among others.

    It added that the Federal Government has not been able to meet these goals due to irregular supply of electricity in Nigeria.

    In a speech delivered at the 15th edition of Future Energy  Nigeria Conference in Eko Le’ Meriden Hotel, Victoria Island, Lagos, Rosatom Corporation’s Southern and Central Africa CEO, Mr Dmitry Shornikov, said bank has given a firm verdict on the Nigerian power situation, urging Nigerian and Russian government to speed up the process of generating nuclear energy for growth.

    He regretted  that Russia and Nigeria have not been able to reach a consensus on the number of electricity megawatts(Mw) that would be generated for the over 170million Nigerian population, despite holding several discussions on how to provide nuclear for growth in Nigeria.

    Citing the report, Shornikov said absence of sustainable and affordable energy has made it difficult for Nigeria and other African countries to implement their  strategic industrialisation goals.

    He said the issue contradicts the beliefs held by policy makers in Africa, that Nigeria is witnessing growth in the rates of unemployment and infrastructurce activities in urban centres, among others, in Nigeria.

    He said irregular supply of electricity remains the major obstacle to businesses in Nigeria, adding that the issue is inhibiting the growth of more than half of the big  firms in the country.

    He said 70 per cent of the bigger firms operating in Nigeria, on the average experience 44 electrical outages in a month, coupled with the fact that the issue has resulted in loss of annual revenue,  and reduction in direct exports of many firms in Africa.

    He said the development informed the decision by Rosatom  to partner Nigeria on the issue of producing nuclear energy  in the country.

    He said inability of Russia and Nigeria to reach a consensus on the volume of electricity that would be generated through nuclear technology, hinders the implementation of the deal struck between the two nations on the use of nuclear energy.

    He noted that Rosatom signed the deal on behalf of the Russian government, while the Federal Minstry of Power stood in for Nigerian government. He said Russia and Nigeria have been holding discussions on the need to generate nuclear energy for Nigerians for sometime, adding that the two countries were expecting the discussion to be fruitful.

    Shornikov said: “Negotiations for the establishment  of nuclear technology centre and nuclear energy plants are on-going. Though the negotiations on the issue have reached an advanced stage. However, there are inherent problems in the frameworks guiding the establishment of the nuclear power plants and the technology center. Until these problems are resolved, it is not certain that Rosatom can decide on the power megawatts that would be produced for Nigerian populace.”

    Still on nuclear power,  Shornikov said nuclear energy is the most regulated and safest sub-sector in the electricity industry globally, stressing that misconceptions on what nuclear energy and how to put it to better usage have held many people down, as well making it difficult for them to embrace the idea of nuclear energy for economic growth.

  • Firm plans 400,000 barrels per day refinery

    Petrocam International ‘s plan to build a 400,000 barrels per day (bpd) refinery will hasten Nigeria’s quest for improved locally refined products.

    Also, the firm is contemplating off-grid solution to improve power supply.

    The South African-based oil trading giant is investing in the refinery to improve fuel supply for domestic consumption which is put at 41 million litres per day, according to the monthly report of the Nigerian National Petroleum Corporation (NNPC).

    Speaking after the inauguration of its seventh solar- powered fuel station in Epe, Lagos, Petrocam Nigeria Limited’s Chief Executive Officer Patrick Ilo said off-grid electricity was the way out of Nigeria’s power challenges. He urged Nigerians to generate electricity from solar, biomass and wind to complement power from the national grid.

    Petrocam, he said, was generating solar power in its retail outlets, adding that issues, such as provision of power and refining of petroleum products, must be given necessary attention.

    He said Petrocam went into crude oil refining, after appraising the country’s fuel market and realising the necessity to provide such services  to help contribute to the country’s development. Ilo said Petrocam  has  deep roots in oil trading and allied services.

    “We are looking at setting up a refinery in Nigeria. The issue is topping our agenda and we will not leave any stone unturned to achieve our objective of providing a refinery that is producing optimally in the country. We have the idea of setting up a refinery in our sleeves; we are talking of a large refinery plant, that can process 400,000 barrels of crude oil per day. May be, Petrocam can start with a modular refinery and later make it a bigger refinery plant, as our efforts are geared towards improving local fuel production and consumption in Nigeria.

    “Already, Petrocam is playing well in the Nigerian downstream sub-sector of the oil and gas industry, where it has blazed the trail, by using solar to power its fuel retail outlets and adjoining roads in communities where the outlets are located. What we do is that we ensure that  the outlets are directly facing the equator in order to generate and store enough energy, as much as possible,” Ilo said.

    Solar energy, he pointed out, offers huge benefits, as it is able to power tanks containing 270,000 litres of fuel in Epe, adding that a tank is made up of 45,000 litres and that when you multiply it by six tanks, you have 270,000 litres.

    He said the government needs to deregulate the downstream sector, if its going to achieve the objective of allowing privately-owned refineries to operate in the country.

    “ In order to enable privately-  owned and  government refineries  come on stream and operate well, the deregulation of the downstream sub-sector is necesary,” saying when this happens, owners of the refineries would be able to get enough returns on their investments. “Once investors get returns that are proportionate to their investment, they are satisfied with it. When returns are coming regularly, the issue of obtaining facility from banks by investors to move the business forward, will not be a challenge in the industry,“ he added.

    On subsidy, Ilo said the government is spending huge sum on payment of subsidies to marketers, saying the government should as well spend the money on infrastructure.

  • PTI graduates 1,039

    THE Petroleum Training Institute (PTI), Effurun, Delta State has graduated 400 National Diploma (ND) and 639 Higher National Diploma (HND) students. Forty-seven others also received General Welding Certificate.

    Of the figure, 53 students had Distinction and 356 Upper Credit.

    The Principal/Chief Executive, Prof Suny Iyuke, who broke the news at the school’s convocation, said there was reward for hard work.

    He said: “Some of you will be distinguished from your peers with special awards for academic excellence.”

    PTI, he said, would continue to deliver on its mandate by developing competent technological manpower.

    Iyuke said the institute has started a post-HND programme in Engineering and MSc in Information andTelecommunications Engineering with the first batch of interns from its partner – Interregional University of Industrial Engineering Biotechnologies and Applied Science (IRGIB African University), Cotonou, Republic of Benin -completing the programme.

    Also, he said, the institute has started the ND in Computer Science and InformationTechnology and that its Digitalisation execution was on course.

    Besides, PTI, he said, trained the Department of Petroleum Resources (DPR) workers and was set to obtain the ISO 9001 Certification.

    Iyuke listed the institute’s ongoing projects as the expansion of the road to the NDDC Female Hostel and the Business Centre Complex, construction of a swimming pool at the Offshore Technology and Energy Centre (OTEC), Aladja, renovation of the Conference Centre, workshops and laboratories.

    Iyuke listed completed works to include the Academic Block, the NDDC female hostel and tackling of the perennial problem on campus.