Category: Energy

  • ‘ExxonMobil obeys Supreme Court order on sacked spy policemen’

    Contrary to claims by the protesting spy policemen that ExxonMobil has not complied with the Supreme Court order to reabsorb its sacked officers, the oil giant has obeyed the  order and fully paid the officers’ entitlements after they were disengaged, The Nation has learnt.

    An official of the oil firm stated that it reabsorbed the spy police officers in compliance with the apex court order, but had to disengage them later for operational reasons and due to the business model of Mobil Producing Nigeria Unlimited (MPN), an affiliate of ExxonMobil.

    The Nation also gathered that the spy policemen were paid their benefits with some getting as much as N20 million. According to the source, the package was communicated to the affected workers on their disengagement contrary to some reports that they were disengaged without entitlement.

    Also, following the Supreme Court judgment of last April 20,  directing MPN, an affiliate of ExxonMobil, to recognise the spy policemen as employees, the company not only accepted the ruling, but proceeded to comply and acknowledged the number of years the affected officers had spent in the organisation in line with the company’s human capital policy.

    “We understand that it was on this basis that the compensation package, which reportedly totalled over N1.2billion, was arrived at and communicated to the staff on their disengagement last weekend,” the source said, adding that on individual terms, this translated to about between eight and 10 times the yearly basic salaries of the affected personnel.

    “In addition to this package, the disengaged staff were also paid their July and August salaries and would also receive pensions in line with the company’s pension policy. The 860 spy policemen to be paid these benefits comprised about 500, who were in the MPN system as at last weekend and 360 others, who had been disengaged from the services of MPN long before the Supreme Court judgment.

    “Prior to the Supreme Court ruling, the spy policemen’s salaries were being paid through the Nigerian Police Force, with some augmentation by MPN monthly,” the source said, adding that this was the structure of the third party engagement from inception.

    In view of MPN’s business model, calculating their emoluments and benefits was a challenge. Most of them have secondary school certificates as their highest qualification.

    Reflecting how the spy policemen came into the oil company, the source said: “They were recruited and trained by the Nigeria Police and deployed to Mobil Producing Nigeria. The company has been paying them through the police.

    “Administratively, they were being managed by the police, including their promotions and other benefits. Most of the spy policemen, who joined the service in the 1990s, have put in a minimum of 12 years of service. They took MPN to court demanding to be absorbed as full staff members to be entitled to full benefits like every other MPN employees. The case went all the way to the Supreme Court and was decided in their favour.

    “However, due to the peculiar nature of the oil and gas industry, ExxonMobil was compelled to terminate their appointments, despite agreeing to pay all their benefits, gratuity, leave allowance arrears and pension going back to when they began to work for the company.

    “ExxonMobil is an oil and gas producing company, and not a security services provider. In all, they were about 900. Of this number, a lot of them have either retired or moved on to other jobs or even died. Those who are still active are about 500, more than all the engineers.

    “As an operator of a joint venture with the Federal Government, management thought it would be difficult to defend their status as employees on the payroll of the company. The time they were issued letters of employment as directed by the Supreme Court, they were informed the company would not be able to carry them in the company’s books as employees going forward. They were told that those who were strong enough to continue working would be absorbed through a third party security provider to the company for them to continue working for MPN.”

    The spy policemen had shut ExxonMobil’s operations in Lagos and Eket, Akwa Ibom states, simultaneously over the alleged denial of their entitlements.

    The Chairman, Security Workforce ExxonMobil, Okon Johnson, said the protesters, some of whom put in about 22 years, accused the management of refusing to comply with Supreme Court order to absorb them as employees of the company.

    However, the Media & Communications Manager of MPN, Mr. Oge Udeagha, disowned the accusations. He didn’t comment fully on the compensation packages for the disengaged spy policemen.

    He said the management had fully complied with the Supreme Court order by providing compensation packages for the affected personnel.

    Udeagha said: “Following the recent judgment of the Supreme Court of Nigeria, Mobil Producing Nigeria (MPN) has provided compensation packages for the affected personnel. The compensation packages cover all categories of affected personnel, including those in active service, and others who had already left the services of the Company before the judgment.

    “In addition, the company is also offering Human Resources consulting services to assist with employment opportunities with third parties. MPN typically retains security services through third parties who are best positioned to provide these core competencies.

    “We thank these individuals for their prior service in supporting the safety and security of our operations in Nigeria.”

  • BEDC hails Edo community for vandals’ arrest

    The management of Benin Electricity Distribution Plc (BEDC) has praised Ovbiogie Community in Ekiadolor area of Benin, Edo State for apprehending electricity vandals.

    Chief State Head, Edo State, Fidelis Obishai, made commendation at the appreciation ceremony hosted by BEDC in Benin. He stressed that vandalism and other forms of electric equipment thefts were serious threats to the country’s sustainability and economic growth.

    He said vandalism impacts negatively on revenue, as funds that should be used for electrical infrastructure projects are being used to repair damaged installations and also stolen equipment.

    The vigilante of Ovbiogie community assisted BEDC in apprehending vandals who vandalised two transformers in the community.

    He said the fight against electricity vandals “is a collective responsibility that can only be sustained through increased partnership. Obishai, who spoke on behalf of the Managing Director, Mrs. Funke Osibodu, noted that increasing vandalism would force the company to spend money meant to improve electricity infrastructure on repair or to replace damaged and stolen installations.

    “If a pole is damaged, wires are carted away and transformers are vandalised, the community remains in darkness. It behoves on all of us to ensure that these equipment are protected for our common good”, he said.

    Obishai pointed out that electricity generated in the country was not sufficient to give 24 hours power supply to all customers thereby causing load-shedding to enable equitable distribution of power so as to satisfy supply needs of all classes of customers, adding that “BEDC is only allocated nine per cent of what is generated from the national grid daily, still some communities were deprived of their share because of those who vandalise transformers and other installations.

    Obishai presented cartons of energy-saving bulbs to the community, saying they would help them pay less for power use.

    He enjoined other communities to emulate Ovbogie and take ownership of BEDC assets in their various localities “since they are the direct users of these facilities”.

  • ‘Oil, gas free zones vital for economic growth’

    The Managing Director/Chief Executive Officer, Oil and Gas Free Zones Authority (OGFZA), Umana Okon Umana, has said the OGFZA is a channel for conveying the nation’s growth opportunities.

    Umana stated this in an exclusive interview on the sidelines of the Africa Trade & Investment Global Summit (ATIGS) in Washington DC, United States.

    He said: “Nigeria is business ready and our oil and gas free zones are conduits of economic prosperity. Nigeria is the largest producer of oil and gas in Africa and the sixth largest in the world. The real growth of its oil sector as at first quarter of 2018 was 14.77 per cent year-on-year. In addition, we are the largest economy in Africa, the only country in Africa with dedicated oil and gas free trade zones and we are open for business.”

    Also, at an oil and gas forum in Abuja, Umana said: “The country is on a growth trajectory with a GDP growth of 1.95 per cent year-on-year as at first quarter of 2018 with a projected growth rate of 4.8 per cent.

    “The Federal, State and Local Governments are committed to maintaining this growth trend.  The Nigeria Economic Recovery and Growth Plan (ERGP) is the encapsulation of this commitment; and since its implementation, Nigeria has moved 24 points up in the ease of doing business ranking according to the World Bank Ease of Doing Business Index for 2018.

  • Fraud allegation rocks Nigeria’s LPG sub-sector

    The Nigeria Liquefied Petroleum Gas Association (NLPGA) is fighting an integrity battle to regain the confidence of its global body – World LPGA, the government and the public.

    This is coming after its planned fifth Africa LPG Summit 2018 scheduled for June 19 and 20 in Lagos failed as a result of alleged misappropriation of funds set aside for the summit.

    The botched summit would have been the first in Nigeria as the first and second summits were successfully held in Nairobi, Kenya in 2014 and 2015, the third in Tanzania in 2016, the fourth in Johannesburg, South Africa last year and the fifth in Nigeria but which eventually flopped.

    At a fact-finding stakeholders’ meeting in Lagos to discuss the issue, the members noted that there is a huge reputation challenge before them, which requires urgent solution.

    According to a report on the failed  Africa LPG Summit, members of NLPGA stated that the Association broached the idea of hosting the summit in Nigeria after South Africa and mandated the Executive Secretary of NLPGA, Mr. Joseph Eromosele to drive the planning and work with the acting Director of the LPG summit, Vincent Choy.  Eromosele was supposed to arrange visas for those coming from outside Nigeria as well as make arrangements for the speakers, pecial guests of honour, accommodations, exhibition and conference spaces.

    Unfortunately, the money paid by member-companies and affiliates of NLPGA for the venue, hotel accommodation of some VIPs, as well as cash transferred to Eromosele were allegedly diverted by him.

    NLPGA Deputy President, Mr. Felix Ekundayo, told the LPG stakeholders that the association discovered the fraud committed by Eromosele when the intending participants who paid could not access their bookings online and reported to the association’s executive.

    Ekundayo said the executives of the association at various meetings asked Eromosele about the summit, but he was always coming up with excuses. “When we heard about the issue, we constituted an emergency meeting. Eromosele was immediately cut off from all communications and all the platforms of the NLPGA, and sent out disclaimers,” he said.

    He noted that Eromosele had been suspended, and the case reported to the police, adding that the Special Fraud Unit of the Police would take up the investigation after required processes are completed.

    This was also confirmed by other top officials of the NLPGA.  Ekundayo further said $11,000 has been recovered from Eromosele so far.

    According to the report made available to The Nation, the organisers of the Africa LPG Summit, All Events Group Pte Limited, was working with Eromosele through Vincent Choy, who collected and transferred the money to Eromosele.

    The report also said Eromosele advised intending foreign participants to apply for a visa on arrival (VoA) and that they should submit applications of over 70 participants. “Up to the day of our flight, the 15th June 2018, the letter of approval for the visas was not issued and we were forced to cancel our flight.

    “We advised all the participants who had been relying on NLPGA to organise the VoA that they were not now going to be available, and we had no option but to cancel the event.

    “All the other exhibitors and speakers who were asked to apply for their own visas because they submitted their applications late were able to obtain their visas,” the report quoted the intending foreign participants as saying.

    The report also said the organisers noted that NLPGA President, Mr. Nuhu Yakubu, was unaware that the association had been working with them as a co-organiser.

    The report said: “The VIPs, including the Minister of State for Petroleum Resources whom Eromosele, has confirmed and asked us to pay for his accommodation, had no knowledge that the event was taking place.

    “Several other speakers who were confirmed by Eromosele to be on the agenda were also unaware they were on the agenda. We highly suspect that the executive secretary of the NLPGA was acting alone and that the visas were not submitted properly to the immigration office and all the planning for the event  we thought was in place, had not been done.

    “As a result, we were forced to cancel/postpone the event and suffer significant costs and claims from exhibitors for cancelled flights and other costs because they had been unable to travel.

    “Also, the funds which have already been transferred to Eromosele, the executive secretary of the NLPGA, are at this moment unaccounted for,” the report added.

    The vice president, eminent industry chiefs, such as the Minister of State for Petroleum Resources and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), among others, said they were unaware of the summit, with all the loopholes in the planning, the summit was cancelled.

    The participants at the stakeholders’ meeting were not convinced by the presentations of the NLPGA executives, noting that they have failed for allowing an employee of the Association to drag its name and integrity in the mud nationally and internationally.

    The stakeholders agreed on setting up a five-man committee cutting across all the segments of the LPG sub-sector.They include Mr. Gbenga Falusi, Chairman, Jacob Wale Coker, Mr. George Ebubechukwu and Mr. Monday Nwatu.

    It was learnt that the money allegedly misappropriated by Eromosele ran into tens of millions of naira and the Singaporean,  Choy, who was working with him to facilitate the participation of foreigners at the summit, according to the stakeholders, was naïve to have placed his trust on just one individual (Eromosele) for the event. With multiple red flags happening throughout the organisation of the event, more due diligence should have been conducted and further clarification sought from the association.

    Choy, The Nation learnt has resigned as a result of the fraudulent transactions.

  • Firms partner to leverage new technology for local content

    Kings Industrial Tools Limited, a company that specialises in marine and vessel support services, said it is partnering Krill Systems to bring cutting-edge technology to support the offshore oil and gas industry.

    The technology would also provide engineering contracting, including fuel monitoring to its clients.

    Krill Systems is an Electronic Fuel Monitory System (EFMS) provider to the International Oil Companies (IOCs) in Nigeria.

    The Chief Executive Officer of the company, Abdulrahman Ahmed, said the company had obtained Chevron’s approval to install the Krill Systems on their chartered vessels for their upstream operations.

    In an interview with The Nation during an oil and gas forum in Abuja, Ahmed said the company also handles vessels  construction on behalf of the Nigerian National Petroleum Corporation (NNPC), Glenco, Trafigura, Addax Petroleum, adding that the company has been working on about 300 tankers yearly, including products and crude oil tankers.

    He said: “Our Electronic Fuel Monitoring Systems (EFMS) uses cutting-edge meters that have accuracy threshold of plus or minus of about 0.1 per cent and we have been able to use it to locate vessels at any given time including the fuel consumption of the vessel, work quality, the quality of bunkers the vessel has received and when it has received it. They are all backed up on our Microsoft cloud.

    “We are also able to do geo-fencing. If your vessel is operating in the offshore environment and the vessel is going outside a pre-determined longitude and latitude bearer, you will get an email to inform you that your vessel is outside of your geo-fence, which isn’t where it is supposed to be and you will be able to run all the analysis of the vessel directly from the office where there is satellite connection.”

    According to him, Kings Industrial Tools was registered in Nigeria in 2002 to provide cutting-edge technology solutions to the oil and gas industry. It provides engineering and technology solutions, with after sales maintenance, adding the company is the sole representatives to Krill systems for Africa and the Middle East.

    Krill systems, he said, is a leader in electronic fuel monitoring systems (EFMS), bunker, emissions and liquefied natural gas (LNG) re-gasification efficiency monitoring.

  • Nigerian content fund hits $650m

    The Nigerian Content Development Fund (NCDF) has grown to $650million from the previous figure of $600million, the Nigeria Content Development and Monitoring Board (NCDMB) has said.

    NCDF General Manager, Mr. Obinna Ofili, told reporters in Lagos that it has $200 million  with the Bank of Industry (BoI) and $450 million in its purse.

    Ofili said he was aware that between January and April, the Fund made $45million.

    He explained that the NCDF is being funded from one per cent deductions all contracts awarded in the upstream sector of the oil and gas industry, adding that currently about 157 operators contribute to the Fund. The Fund is meant assist  to grow indigenous capacity and skills.

    According to him, the Board is  trying to be self-sustaining as it tries to exit receipt of subvention from the government. He said by so doing, the Board would make substantial money for the government yearly.

    Ofili also said the Board had been able to retain $5 billion yearly in-country from the yearly $20 billion industry-wide spend in Nigeria’s oil and industry. “The board targets to achieve about 70 per cent, which translates to $14 billion in-country retention in the next ten years,” he explained.

    According to him, the Fund will also promote development of the Nigerian Content activities connected with sectors of the industry.

    “The Fund will also deepen the creation of linkages to other sectors of the national economy and boost industry contributions to growth of national Gross Domestic Product (GDP), among others.

    He said the Nigerian Content Intervention Fund (NCIF) is a pool of funds made available by NCDMB, which is managed by the Bank of Industry (BoI). The aim of the fund is to tackle funding needs of indigenous manufacturers, service providers and other key players in the oil and gas industry.

  • ‘Flared gas enough to generate 3000Mw’

    Flared gas in Nigeria is enough to generate between two and three gigawatts (Gw) of electricity, The Nation has learnt.

    Nigerian Gas Association (NGA)President, Dada Thomas, spoke while speaking on natural gas under-utilisation to power the economy.

    In a document titled: “Natural gas as a catalyst for Nigeria economic transformation: Technical challenges and opportunities”, Thomas, who is also the Chief Executive Officer, Frontier Oil Limited, said the country with 192 trillion cubic feet (Tcf) reserves, has the world’s ninth conventional gas reserves. However, Nigeria only ranks about 22nd in terms of gas production and even lower consumption.

    He said: “Some 48 per cent is associated gas (AG) and 52 per cent non-associated gas (NAG) with 42 per cent located offshore and 58 per cent onshore distributed over a large geographical area and largely in small pockets of less than 1Tcf. thus harnessing Nigeria’s gas resources is neither easy nor cheap.

    “About 73 per cent of our gas reserves are controlled under Joint Venture (JV) contracts, largely by International Oil Companies (IOCs), 12 per cent under Production Sharing Contracts (PSCs) and 15 per cent under sole risk contracts by indigenous companies, including two per cent by marginal field operators.

    “The distribution of control of gas resources is considered by many as a major impediment to accelerated development of the domestic gas (Domgas) market.”

    According to Thomas, the domestic gas market has grown over the years, but still only 13 per cent or 1.01 billion cubic feet (Bcf) of total gas production of 7.5Bcf per day is consumed locally, while 43 per cent is exported via liquefied natural gas (LNG) and West African Gas Pipeline, 34 per cent is used for gas injection and 10 per cent flared.

    He said: “The growth in production is encouraging, but the reality is that we found ourselves engulfed in darkness generating less than 5Gw of reliable grid power while flaring enough gas to generate 2Gw to 3Gw of electricity while some power plants are starved of gas.

    “We export 43 per cent of our gas production and only have three gas based industries adding value locally and barely any meaningful gas transportation infrastructure compared to our peers.”

    Thomas said the failure to harness gas resources effectively and equitably for the benefits of all Nigerians and investors, is not an option. With a population, which according to World Bank, is growing at three per cent per annum and projected to reach 233 million by 2025, and GDP growth lagging at 2.7 per cent per annum, failure is not an option.

    He said: “If we fail to do the right thing to grow our economy, we are likely to experience societal upheavals the like of which may have never been seen before by mankind.

    “More than 70 per cent of domgas is consumed by power plants within an illiquid and poorly regulated gas-to-power value chain that is threatening to cause systemic bankruptcy of all parts of the value chain and possibly the banking sector

    “We, therefore, must conclude that we haven’t optimally exploited our gas resources for domestic use for the benefit of our nation or our people and those brave enough to invest in our country’s development.

    “The forecast demand for gas is ambitious with a target of 8Bcf per day to 10Bcf/d in the long term, the bulk of about 60 per cent planned to be used for power generation. Given the relatively poor performance so far in developing the domgas sector over the years how then do we propose to achieve these ambitious targets and the transformation of the Nigerian economy using gas, given the various impediments and issues that have bedeviled and continue to plague the domestic gas industry?’’

  • Total fuel leakage: Station, others clarify remediation, restoration

    The remediation by the Akoka, Lagos Total filling station management in fixing its underground tank, which leaked fuel that polluted residents’water sources last year, has received commendations from government agencies and residents. They praised the firm’s management for its swiftness in addressing the leakage. However, a resident seems not happy and complains about the job which he describes as unsatisfactory. But the management of the filling station sees the complaint as an effort to sabotage its determination to make the area better than it was before the incident. EMEKA UGWUANYI examines the issues.

    Few months after the reported incident of an accidental fuel leakage at Total filling station in Akoka, Lagos State, which resulted in contamination of the water sources of some houses, Total officials said they have since carried out a thorough remediation and fixed all that was necessary to bring the environment to its original state.

    Various documents seen by The Nation and eyewitness accounts confirmed that the French oil giant met all requirements as well as restored normalcy to the affected water systems in the area.

    The document obtained from Lagos State Emergency Management Agency (LASEMA) and the Lagos State Environmental Protection Agency (LASEPA), dated June 15, noted that contamination of water due to petrol leakage from the station’s underground tank was cleared. Some landlords in the area said the community was free from any form of contamination, praising the swift response of the management of the filling station after the leakage was reported.

    Three landlords confirmed that the environment was safe. One of them, Mr. Razak Odufuwa, who claimed to be the landlord of No. 57, St Finbarrs College Road, Akoka, whose house was affected, admitted that there was an incident but commended the reaction of the company, which he said, acted swiftly to mitigate the effect.

    “Initially, when the incident occurred, our water was contaminated and unsafe to drink or for any other domestic purposes. The station was the first to alert us; they disconnected all the water sources and gave us alternative source of water while they corrected the situation. They have corrected the situation, dug a new borehole in my house and I now have clean water as you can see (drinking water from the tap),” Odufuwa said.

    Another landlord, Olusegun Oladipo, of No. 61, St Finbarrs College Road corroborated Odufuwa’s claim, adding that the company responded beyond their expectations as their situation was now better than how it was before the incident. “We now have new borehole with cleaner water supporting the government’s commissioned water system,” he added.

    Similarly, another landlord explained that the situation has become a blessing in disguise, saying: “For sure, we were affected by the leak from their underground tank, but the situation has landed us several bore-holes with cleaner water supporting government’s commissioned water system.

    “Any accusation against the company is purely malicious and has no basis because the company has done all that was required by law to do and more for us. As such, we are grateful for their swift action to contain the incident and provide an additional water system for the community of Akoka.”

    Reports from various expert agencies, presented by the managers, indicated that the community can now go about their daily business without fear or concern. Besides, some dwellers in the area also confirmed to The Nation the swift and consistent response of the station managers towards the crisis, which occurred last August 13.

    However, a resident, Ifeamaka Umeike, expressed dissatisfaction with the effort of the station, complaining that it had not yielded good result. According to her, the company claimed to have done remediation, but the area, she said, was still polluted.

    “All we are saying is that the filling station should exhume and evacuate its fuel tank and replace it with new ones because the tank is still leaking,” she added.

    However, the station dealer told The Nation that the right steps were taken and they have also been fair to all since the inception of the crisis till date.

    Documents obtained by The Nation confirmed the steps the company said it took to manage the situation, and how it liaised with relevant stakeholders, including the Akoka Community Development Association, Lagos State Emergency Management Agency, Lagos State Environmental Protection Agency, LASEPA, National Oil Spill Detection and Response Agency (NOSDRA), the Department of Petroleum Resources (DPR) and Bariga Police station in the remediation process.

    They also presented the final certification reports declaring the area free and safe from pollution.

    In LASEPA’s document sighted by The Nation, dated June 11, the community was declared free of water adulteration arising from petrol leakage from the station’s underground tank, following several tests.

    They also presented a proof stratification certificate of conformity, dated September 29, last year, which indicated that the leakage had been fixed. In addition, the management of the station provided a document, which detailed how the management of the station held several meetings with government agencies and landlords in the area where it was formally resolved that the station should provide the affected houses with alternative source of water, conduct medical evaluation of residents of affected houses in recognised government hospitals, as well as provide affected houses with new boreholes.

    The dealer of Total Service Station, Akoka, Mr. Aleem Maruf, admitted that there was indeed, fuel leakage in the station premises, but disagreed with the claim that the community was neglected.

    He said: “On August 13, 2017, we discovered that there was fuel leakage in one of our underground tanks after we realised that 600 litres of petrol was missing. Immediately, we notified Total headquarters and our station at Apapa, which swung into action without delay.

    “We started by disconnecting all the water sources immediately. The situation was appropriately reported to Bariga police station after which we alerted and invited all stakeholders including officials of the LASEMA, LASEPA and DPR. They all toured the community and took samples from houses to determine affected areas as well as extent of damage. By the end of the investigation, it was discovered that seven houses including the station were affected.

    “Having done this, an agency, Terra Aqua Environmental Consultancy Limited, commenced remediation, which started right from the station. We were advised by LASEPA to get tank for all the affected houses and supply them water regularly for the period of the remediation. We bought Geepee tank of 2000 litres capacity for all affected houses and supplied them with government approved water four times in a week to ensure that they don’t lack water. We also made provision for medical check-up to be carried out at their convenience.

    “By May 2018, the affected areas were declared free from pollution, hence, it was confirmed safe to drill new boreholes. As instructed by LASEPA, we have dug four boreholes while the 5th one is due for completion.”

    Reacting to Ifeamaka Umeike’s claim, Maruf denied neglecting the community, stating: “On the day the sad incident broke, the lady in question was not around, she came back two weeks after we had cleared the environment and done the needful by law. However, remediation exercise was still ongoing. She commended the station on the efforts taken so far and this is glaring in a letter she wrote to us.”

    The Nation saw the letter dated  August 30, last year where she (Ifeamaka) applauded the company’s swift action, stating: “I have to applaud the fact that they (Total station dealer) swung into action quickly. They provided affected residents with tanks of water, which they replenish periodically. While the filling station is quite responsive, I am yet to see any action taken by Total Nigeria Plc.”

    Maruf also alleged that “she came back to complain that her pipe connections has been polluted. And I wondered how that could have happened because I had disconnected all the pipes in the affected areas when the leak was discovered while she was away. But I heeded and changed all her pipes again. Note that while other houses have 2000 litres of Geepee tank, I gave her (Ifeamaka’s) house 7000 litres of Geepee tank with pumping machine that takes water directly to her apartment to fulfill her desires’’.

    “Three days after, she came back to my office and asked me to change her washing machine hose, which she claimed got contaminated by the leakage. Without arguing, I set out for a new hose but she was discontented with eight different hoses I brought, insisting they did not fit her washing machine. She eventually requested for a new washing machine and asked me to get her a 7kg washing machine that cost N250,000 as against her 3kg type. She came back the second day to thank me and told me I was free,” Maruf said.

    The Nation sighted a receipt of the 7kg washing machine and a picture of the old washing machine.

    Nonetheless, Maruf said: “She was doing all this after the remediation has been certified okay by the agency in charge. As a matter of fact, we have started digging boreholes, so far, we have dug boreholes in four houses, and the fifth one is ongoing. But she refused to let us dig in her apartment, but we eventually dug it with the intervention of security personnel.

    “However, she still complained that the water is not neat, whereas, water from other houses where we dug the same borehole had no issue, so we suspected she was sabotaging our efforts, especially considering the fact that there is a government borehole in the same house producing potable water.”

    Maruf also explained what led to the fuel leakage, as well as steps taken to avert future occurrence.

     

  • Why IOCs can’t invest in refineries, by Mobil chief

    The Federal Government’s inability  to fully deregulate the oil and gas sector has made it difficult for the International Oil Companies (IOCs) to set up refineries in Nigeria, Mobil Nigeria Managing Director, Mr. Adetunji Oyebanji, has said.

    He said the IOCs would have loved to invest in refineries in Nigeria, had the environment been conductive enough for them operate.

    In an interview with The Nation, he said oil majors operate refineries seamlessly across the world, adding that their inability to replicate the same in Nigeria was as a result of the government’s policies.

    He said: “The IOCs are business entities set up to increase their profitability, and to also contribute to the socio-economic growth of their countries of operation. The firms establish refineries in major countries globally and are not regretting it because the operating environment meets their needs. The companies have invested in deregulated markets, a development, which has enabled them to assume full control of their business.

    “IOCs have between 30 and 40 refineries in different parts of the world. The refineries are processing crude oil to finished products such as petrol, diesel and kerosene, as well as giving their owners returns on investment. I believe oil conglomerates could not do the same thing in Nigeria, because they met a highly regimented market in the country.”

    According to him, IOCs look at issues from global perspectives, especially issues relating to the establishment of risky businesses such as oil and gas.

    He said the development may have informed IOCs’ decision to consider the nature and peculiarities of the investments they are undertaking before they implement them.

    Nigerians, he said, are active entrepreneurs, stressing that they are ready to do everything possible to improve businesses that would add value to them.

    He said if there are refineries owned and managed by IOCs in Nigeria, the country would not have problem meeting the fuel needs of its people, noting that the Department of Petroleum Refineries (DPR) has issued licenses to investors in refineries. He added that many of the investors, who got the licences are yet to execute the project.

    According to him, the government needs to ask investors, who collected the licences why they have not been able to set up refineries, arguing that Nigeria would not have privately owned refineries, until answers are provided to those questions.

    He urged the Federal Government to commercialise its refineries’ operation, adding that by so doing the government would be able to resolve low capacity utilisation issue   besetting the growth of such refineries.

    The marketers, he said, do not need to look for fuel abroad once the refineries are producing enough products for domestic consumption. He urged the government and private investors to put in place measures that will help in putting the refineries back to shape.

  • NCDMB explains SLA, other labour issues to NUPENG

    The Nigerian Content Development and Monitoring Board (NCDMB) has explained its Service Level Agreement (SLA) with Oil Producers Trade Section (OPTS) and other labour concerns raised by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG).

    NCDMB Executive Secretary, Simbi Wabote spoke during a meeting by the House of Representatives Committee on Petroleum Resources (Downstream) in Abuja.

    The committee had invited the NCDMB management to respond to concerns raised by the oil workers that the Service Level Agreement (SLA) signed by the Board and the Oil Producers Trade Section (OPTS) on May 9, would limit the duration of contracts of labour service to three months as against five years, which it claimed was previously the norm.

    The union leaders, however, sang a different tune after listening to the clarifications made by Wabote, who explained that the SLA between NCDMB and OPTS was aimed at shortening the protracted contracting cycle in the Nigerian oil and gas industry, which used to take about three years before the award of a major contract would be completed.

    The NUPENG officials pleaded with the NCDMB to examine the nature of employment agreements oil servicing firms foisted on their members. According to them, NUPENG members were often made to accept short-term contracts, with unfavourable conditions of service.

    NUPENG President, Comrade Williams Akporeha and Deputy General Secretary, Comrade Afolabi Olawale, commended the Board for teh effective implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

    Akporeha claimed that oil workers championed the Nigerian Content Bill when it was undergoing legislative processes, hence they expected the NCDMB to extend the implementation of the Nigerian Content Act to key labour issues, like the kinds and provisions of employment contracts, which operating and service companies subject employees to.

    He regretted that most operating firms no longer hire middle and lower cadre personnel on full time, instead they use casual workers. Such practices, he insisted, were against labour laws and inimical to the interests of the nation and its youths.

    Providing insight on the SLA, Wabote explained that the Board signed the first of such agreements with the Nigerian LNG Limited in May, last year and was developing the third SLA with the Independent Petroleum Producers Group (IPPG).

    He said the SLA with the NLNG improved the speed of interactions between the two organisations, leading to the timely conclusion of the recent award of a contract by the NLNG to an indigenous company, E. A. Temile Development Company for the provision of a new build Liquefied Petroleum Gas (LPG) ship.

    The executive secretary confirmed that the  SLA was aimed at accelerating the approval of  NCDMB’s activities on the contracting cycle and enhancing the ease of doing business,  a key policy thrust of President Muhammadu Buhari’s administration.

    “It is meant to shorten the time by removing all unwanted bottlenecks and red tapes in order to conclude Nigerian content reviews and approvals by NCDMB before award of contracts by NNPC-NAPIMS,”he said.

    He stressed that the SLA had nothing to do with reducing the tenure or duration of a project or contract; rather it would ensure that jobs are retained and are also created.

    “The protracted industry cycle led the IOCs to start using short term contracts which they review arbitrarily,” he said.

    Wabote promised to intervene in the complaints raised by NUPENG against operating and service companies, within the Board’s mandate. Regretting that most violators of the Nigerian Content Act were indigenous companies, he charged the union to serve as whistle blowers and report Nigerian Content infractions to the Board for sanction.

    He noted that NCDMB had extended the focus of Nigerian Content implementation to the midstream and downstream sectors of the oil and gas industry, after recording appreciable success in the upstream sector.

    On the phasing out of junior personnel by oil producing firms, the executive secretary attributed it to the use of enhanced technology by the industry. “Most junior roles and tasks are executed by technology and that is why companies employ only highly skilled workers.”

    House of Representatives Committee on Petroleum Resources (Downstream) Chairman, Hon Joseph Iranola Akinlaja, asked the Board and NUPENG to  interface regularly on labour issues. He decried casualisation and charged agencies of government to fight against it.

    A member of the House of Representatives Committee and former NUPENG President, Hon Peter Akpatason, urged firms to employ junior workers and build their capacities.