The Nation Newspaper

Category: Energy

  • Lumos to Nigerians: use solar to meet electricity needs

    Lumos Nigeria, one of the leading solar power and off-grid solar home systems provider and pioneers of Mobile Electricity Service in Nigeria, has called on Nigeria’s urban centres to adopt solar energy as part of an effective energy mix option for their critical and basic electricity needs.

    This, according to the company’s Vice President Marketing, Mr. OlufemiAshipa, will help solve to a very large extent, the country energy crisis.

    Speaking at the Solar Future Nigeria 2018 conference held in Abuja, Mr. Ashipa, who represented Lumos Nigeria CEO, Houssam Azem, noted that while power supply remained a major issue across Nigeria, it is encouraging to note that the adoption of solar solutions is growing across urban, semi-urban and rural areas; a situation that is being driven by an increased awareness on the benefits of using solar for long term cost savings, ease of use and the significant reduction in recurrent expenditure that would have otherwise been expended fuelling and servicing generators.

    He said adopting the Lumos Mobile Electricity Service can save you money, adding that “our most recent survey data shows that 61 per cent of MSMEs in Nigeria spend between N500 to N1000 per day on fuel and as many as 85 per cent of micro and small businesses rely on generators for the supply of electricity.

    The same survey showed that users experienced an increase in profit and revenues by an average of 70 per cent compared to those who had not yet adopted Lumos Mobile Electricity Service,” Mr. Ashipa said.

     

  • SPDC JV spends N14.85b on GMoUs in Rivers State

    About N14.86 billion has been invested by Shell Petroleum Development Company of Nigeria Limited (SPDC) operated Joint venture on Global Memorandum of Understanding (GMoU) clusters in Rivers State. This has given communities a highly-valued opportunity to decide and implement projects and programmes that have lasting impact on people’s lives.

    The funding, since the GMoU concept took off in 2006, has enabled the 19 clusters in Rivers State to embark on  projects covering health, education, water and power supply improvement, sanitation and infrastructure development, Shell’s spokesperson, Bamidele Odugbesan, said.

    “The GMoU initiative has opened a new and exciting chapter in the relationship between SPDC JV and communities and empowered the people at the grassroots to take charge of their own development,” said  SPDC’s General Manager, External Relations, Mr. Igo Weli at a presentation of the 2018 Shell Nigeria Briefing Notes to journalists in Port Harcourt.

    Weli, who was represented by the Manager, Social Investment/Social Performance, Ms. Gloria Udoh, said the success of the GMoU initiative proves what can be achieved when the government, international oil companies, communities and NGOs work together for the common good.

    Under the GMoU terms, SPDC JV provides secure five-year funding for communities to implement development projects of their choice, which are managed by Cluster Development Boards (CDBs) under the guidance of mentoring NGOs. There are 37 active GMoU clusters in Rivers, Delta, Bayelsa and Abia states, which have been funded to the tune of more than N41 billion since 2006.

    GMoU clusters in Rivers State have recorded landmark achievements, including setting up a Community Health Insurance Scheme (CHIS) at Obio Cottage Hospital in Port Harcourt, where the average number of patients increased from about 600 to about 7,500 per month in 2017, making it one of the most utilised health facilities in the area. Other clusters have awarded foreign and Nigerian tertiary scholarships, set up transport schemes and built roads.

    In another social investment initiative in Rivers State, SPDC JV has trained more than 800 young men and women under the Shell LiveWIREprogramme, which was introduced in 2003 to help young entrepreneurs to convert their bright ideas into sustainable businesses, creating wider employment and income opportunities for communities. SPDC JV also implements a robust health intervention scheme, supporting10 hospitals in the state.

    In 2017, SPDC JV established Nigeria’s first centre of excellence in Marine Engineering and Offshore Technology at Rivers State University in Port Harcourt, which has commenced programmes leading to the award of Masters’ degrees in Marine Engineering (Power Plants), Naval Architecture and Offshore and Subsea Engineering. This and other educational interventions build on a pioneering scholarship programme that was introduced by SPDC since the 1950s.

  • How Shell assists contractors, creates jobs, others, by Okunbor

    Shell companies in Nigeria – Shell Petroleum Development Company Limited (SPDC), Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas Limited (SNG), said they have boosted Nigerian contractors’ operations and supported community development projects with N312.3 billion in 2017.

    Country Chair, Shell Companies in Nigeria and SPDC Managing Director, Osagie Okunbor, disclosed this yesterday at the 2018 Shell in Nigeria Briefing Notes’ presentation in Lagos. The briefing unveiled shell companies’ activities and contributions to the nation’s economy in 2017.

    Okunbor said Shell operated ventures produced an average of 631,000 barrels of oil equivalent daily (boe/d) in 2017, spent $228million (about N82.3 billion) on community-driven projects from 2006 and supported Nigerian contractors with N230 billion in 2017.

    The SPDC and SNEPCo, he said, contributed $1.9 billion to the Niger Delta Development Commission (NDDC) from 2002 to 2017,  adding that some 290 Nigerian contractors, have received loans worth more than N472 billion under the Shell Contractor Support Fund, which was set up by Shell companies in Nigeria to help vendors and suppliers in the oil and gas industry secure funds at reduced interest rates, relaxed collateral requirements and quicker processing time.

    According to him, Shell companies in Nigeria awarded contracts worth over N230 billion to Nigerian contractors in 2017, representing 94 per cent of the total contracts in that year. Shell companies started their intervention in 2011 with the Shell Kobo Fund, which gave way to the Shell Contractor Support Fund the following year with seven participating financial institutions, which have since set aside more than N690 billion for contract execution by Nigerian companies.

    Okunbor listed the engaging banks as Access, Skye, Zenith  and Stanbic IBTC, as well as First Bank, Standard Chartered  and Guaranty Trust Bank.

    “We’re pleased to support Nigerian contractors to play greater roles in the oil and gas industry,” said Okunbor, adding: “As pioneers in the industry, we have taken deliberate steps to award contracts to Nigerian vendors and worked with them to grow their capacity, cost efficiency and delivery timelines.

    “We discovered, however, that access to finance has been a challenge, and the search for solution led to the Shell Contractor Support Fund,” he explained.

    Nigerian ownership of key assets, such as rigs, helicopters and marine vessels, Okunbor said, is also a focus with Shell companies providing technical and financial support to companies across a range of sectors, including transportation, manufacturing and Research and Development.

    On social investment, Okunbor said Shell companies have continued to work with government, communities and the civil society to fund and implement projects and programmes that have lasting impacts on people’s lives in the Niger Delta in particular and Nigeria as whole.

    He said since 2006, the SPDC JV  has disbursed more than N41 billion to 37 active Global Memorandum of Understanding (GMoU) clusters in Rivers, Delta, Bayelsa and Abia states, adding that a GMoU is an agreement that brings a group (or cluster) of communities together with representatives of state and local governments, SPDC and NGOs, with the SPDC  JV providing five-year funding for communities to implement development projects of their choice.

    The Shell boss said social investment activities of the companies focus on community and enterprise development, education, health, access-to-energy and road safety, pointing out that in 2017, SPDC JV, Shell Nigeria Exploration and Production Company and Shell Nigeria Gas, spent more than N18 billion on direct social investment projects. Nigeria, he noted, has the largest concentration of social investment spending in the Shell Group.

    Okunbor said Shell’s flagship oil field, Bonga, has delivered a total of 763 million barrels of oil between its first production in 2005 and end of 2017, adding that the company has expanded the field with further drilling of wells in Bonga Phases 2 and 3 and through a subsea tie-back, which unlocked the nearby Bonga North West field in August 2014.

    Also at the briefing, SNEPCo’s Managing Director, Bayo Ojulari, said Bonga‘s success story is not only that it is Nigeria’s first oil and gas production project in more than 1,000 metres of water depth, or that it increased Nigeria’s oil production capacity by 10 per cent in 2005, but that it is a Nigerian venture delivered by Nigerians, using global expertise and processes offered by Shell that have launched Nigeria into the league of notable deepwater players.

    The Bonga turnaround maintenance in March and April 2017, he said, was a significant milestone in SNEPCo’s operations. “This was the most complex and largest of the three previous turnaround maintenances in the 12-year history of Bonga, and has helped to ensure safe and sustained production and reduced unscheduled production deferments. More than 1,000 people and more than 50 Nigerian contractor and sub-contractor companies participated in the exercise,” he added.

    The SNG Managing Director, Ed Ubong, also gave scorecard of his company.

  • NNPC scrutinises applicants’ names for refineries’ financing

    The Nigerian National Petroleum Corporation (NNPC), has directed its Board to vet the lists of companies that applied to finance the revamping of the four state-owned refineries in the country, its Group Public Affairs Manager, Ndu Ughamadu, has said.

    The refineries include Port-Harcourt Refineries (PHRC) 1 &2, Warri Refinery (WRPC) and Kaduna Refinery.

    Ughamadu, who made this known to The Nation at the weekend, said NNPC has detailed its Board to announce the names of the firms that will finance the repairing of the refineries, whenever the Board finishes vetting those shortlisted for funding the refineries’ repairs.

    He said: “The NNPC has authorised its Board to announce the names of the companies, which would finance the repairing of the refineries.  A committee that was set up to compile the names of the firms that applied for the job has done its job, and has forwarded the names to the Board for consideration and final approval.

    “The issue of declaring the identities of the firms that would get the job of revamping the refineries is beyond me, as I am not part of the Board of NNPC. I’m not privy to the information regarding the names of the firms. But what I can say is that the management of NNPC is waiting for the Board for final conclusion on the issue.’’

    He said the development became necessary in order to ensure that the best firms emerge to do the job. He said the exercise is in line with the policy of the Corporation to allow due process take place.

    According to him, the Board of the NNPC has the prerogative right of selecting and announcing the names of the companies approved to finance the revamping of the refineries.

    On modular refineries, Ughamadu said NNPC has been advocating the establishment of modular refineries in the country, especially in the Niger Delta areas.

    He said the issue of setting up modular refineries is a good one as it would help the country process its crude oil into finished products like Premium Motor Spirit (PMS), Kerosene and Diesel, stressing that it is an issue which requires enough deliberation from the NNPC.

    He said: “The issue of whether NNPC is going ahead to set up modular refineries in the Niger-Delta region or not lies with the Corporation.  The issue of establishing a modular refinery is optional before NNPC, as NNPC may or may not set up a modular refinery in the Niger-Delta region.”

    The NNPC, he said, has improved activities in the downstream sub-sector by importing fuel that is enough to meet the needs of the entire country, adding that it is evident by the seamless operation being enjoyed by marketers in the country in recent times.

    Oil marketing firms, he noted, no longer complain about scarcity of products as NNPC imports and distributes enough fuel to prevent scarcity and its spiral effects on the economy.

  • NCDMB, OPTS seal pact on contracting cycle reduction

    The Nigerian Content Development and Monitoring Board (NCDMB) and members of the Oil Producers Trade Section (OPTS), the umbrella body of international oil companies (IOCs) and some indigenous operating oil companies have signed a Service Level Agreement (SLA) aimed at shortening the protracted contracting cycle, which unduly delays take-off and completion of projects and leads to increased costs of such projects.

    The SLA, signed in Lagos yesterday, will commit the 28-member OPTS companies to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which essentially is to submit to the NCDMB documents such as their quarterly job forecasts, Nigerian content plans, bidders lists, Nigerian content evaluation criteria, Nigerian content technical bids, among other relevant information in relation to oil and gas industry contracting and procurement cycles.

    The Board also pledged to respond on specific timelines, noting that if it fails to meet the set deadlines, the companies can proceed with their tendering processes after duly informing the Board.

    NCDMB Executive Secretary, Simbi Wabote signed on behalf of the Board, while ExxonMobil Nigeria Managing Director, Mr. Paul McGrath signed on behalf of the OPTS. Nigerian Agip Oil Company (NAOC) Managing Director, Mr. Massimo Insulla; Chevron Managing Director, Mr. Jeff Ewing and Total Exploration and Production Nigeria Managing Director, Mr. Nicolas Terraz witnessed the event.

    Other industry leaders participated in the event as well as the prior meeting to discuss areas of collaboration with operators and the NCDMB on reducing the duration of industry tendering process. They included Shell Petroleum Development Company (SPDC) Commercial Director, Mr. Martin Foley, who represented the company Managing Director and the Group General Manager of the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), Mr. Roland Ewubare.

    The SLA with the OPTS is sequel to the one entered between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) in May 2017, which was the first between a regulator and another entity in the Nigerian oil and gas industry.

    Wabote explained at the event that the SLA with the OPTS was in furtherance of the Board’s efforts to meet the target set by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu for the industry contracting cycle to be shortened to six months. Through the efforts of the NCDMB, the cycle had been cut significantly to 14 months from 24-36 months.

    He stressed that oil and gas industry operations are time sensitive, adding that a shortened contracting cycle would cut the cost of projects considerably.

    He noted that the SLA signed with the NLNG had improved the turnaround time of approvals between the two establishments, informing that the Board was working to sign a similar agreement with the Indigenous Petroleum Producers Group (IPPG).

    ExxonMobil Managing Director thanked the Executive Secretary for the wonderful initiatives he has introduced since assuming office a year and half ago, noting that OPTS members contributed in the SLA development and they will ensure compliance.

  • DPR sets new guidelines for LPG operations

    The Department of Petroleum Resources (DPR) is to engage stakeholders in the Liquefied Petroleum Gas (LPG) to fashion out new guidelines on high risk and life threatening practices being taken for granted by operators in the industry.

    Zonal Controller, DPR, Lagos, Oluwole Akinyosoye, disclosed this in his presentation on safety in LPG operations at NIPCO Safety week celebration to commemorate World Day for Safety & Health at Work at the company’s premises on Dockyard Road, Lagos.

    The Controller, who gave a pat on the back to NIPCO management for the high level of safety consciousness and excellent housekeeping exhibited by the company, said the feat has given credence to the receipt of best compliant HSE terminal NPA awards consecutively in the past six years.

    Akinyosoye said: “We are today talking to NIPCO, we are going to engage other players in the industry as well. We have started engaging NNPC as well to ensure we don’t just load the products but ensure that those trucks are fit for purpose.

    “’If you load trucks that is not fit for purpose and there is an explosion in your facility, God forbids, on the way to the plants or at the plants, it will be on record that the truck loaded from your company, that is why we are looking at the LPG guidelines once again.”

    He said correspondence will soon go to all operators on how to be up to speed with regards to loading and ancillary issues stressing “you know better than us because you do it every day and we may be theoretical in ways we do things but we relate to all sectors of the industry and we know where the shoes are pinching and those guidelines we are fashioning out.”

    According to him, the guidelines would spell out what need to be in place before truck loads ,ensuring that they have the right shut out valves and correctly installed as well trucks being fit for purpose.

    Recalling the sad experience of January 15, 2018 when one of the bottling plants operator lost huge investment, the DPR Controller enjoins both the investor and customers alike to adhere strictly to safety rules to avert such incident in future.

    He said NIPCO has exhibited exemplary behaviour in the area of safety and their operations generally noting that “I have not received any negative report on the company, and am saying that with all sense of responsibility.”

    The Controller also commendable the management for the investment they have put in place in terms of infrastructure for commercial gas in Nigeria.

    He launched the NIPCO safety pamphlet designed to guide users of LPG as domestic cooking fuel in a safe manner as a corporate social responsibility initiative and enjoined all stakeholders to keep safe at all times.

    NIPCO Managing Director, Sanjay Teotia, while declaring open the Safety Week events, said  good Health Safety and Environment (HSE) performance is an integral part of efficiency in the downstream sector of the nation’s oil industry. He reiterated the commitment to sustain its safety culture which has manifested in zero incidents and fatality in the entire 14 years of its operations adding that the HSE policy of company is hinged on prevention of injury to employees, assets, and environment.

  • Forte Oil, Chevron partner on Texaco lube brand

    Forte Oil Plc, has sealed a partnership agreement with Chevron Lubricants, Europe, Middle East and Africa. The agreement empowers Forte Oil to exclusively deal on Texaco – branded lubricants and engine, which will be made available at all Forte Oil retail outlets across the country.

    Chevron Lubricants is the owner of the Texaco brand and the partnership with Forte Oil will open new opportunities for Nigerian motorists to purchase the high quality engine oil.

    From its strategic manufacturing hubs, the Texaco – branded lubricants and engine oil, will be supplied to Forte Oil filling stations network across the country.

    Chevron Lubricants General Manager, Mr. Stewart Wright, who stated this at the launch of the items,  said: “We are delighted that with this agreement, motorists across Nigeria will have added choice when buying quality engine oil. It is excellent news that our Texaco-branded lubricants are now so widely available and are here to stay in Nigeria.”

    Forte Oil’s Head of Marketing, Mr. Kenneth Otaru, said at the event that the collaboration with Chevron Lubricants will allow Nigerian motorists enjoy a wider selection of engine oil and lubricants, assured of the quality guaranteed by both the Forte Oil and Texaco brands.

    “This is an exciting time for the downstream market and for the consumer. Forte Oil is pleased to join in this initiative to ensure the best available products are located at every Forte Oil filling station,” Otaru, said.

  • NEITI to address oil, gas sector challenges

    The Nigerian Extractive Industries Transparency Initiative (NEITI), said it was commited to addressing the remedial issues in the  oil and gas sector.

    These issues include metering and measurement infrastructure, crude and product losses, payment issues, Nigerian Petroleum Development Commission (NPDC), divested assets, governance and regulatory issues. Others are production sharing contracts (PSCs), expired memorandum of understandings (MoUs), as well as domestic crude allocation and refining capacity.

    NEITI challenged the civil society and the media to wake up to their responsibilities by helping to address the remedial issues in the oil and gas sector, saying it is not something that should be left to NEITI alone.

    During a programme on civil society and media consultations on remedial actions with the theme: “Fixing the gaps together: Towards a collaborative approach to extractive sector remediation”, in Abuja, NEITI stressed the importance of its collaboration with the civil society and the media to right the wrongs in the oil and gas sector by making its operation and activities as transparent as possible and add value to the lives of the people through infrastructural provision, including electricity, education and health facilities, among others.

    Its Executive Secretary, Waziri Adio, said implementation of all the recommendations would serve the country interest and its citizens. According to him, with more money coming from the sector, government will be able to attract more revenues and have more money to spend on infrastructure which will eventually benefit businesses.

    He said: “We will have a lot to gain as a country for implementing these recommendations and cleaning up our extractive sector in such a way it will be for the benefit of all Nigerians,” there is need for the sector to be run with transparency and accountability.”

    Adio, who maintained that Nigeria is endowed with abundant mineral and natural resources, questioned why poverty was still the order of the day. He noted that this has given rise to high rate of corruption, conflicts and crimes, among other social vices.

    “NEITI will do its part, we need the National Assembly to do its part, we need the executive arm of the government to do its part, we need citizens to do their own part, that is when the change that we are looking for can come,” he added.

    Civil Society Legislative Advocacy Centre (CISLAC) Programme Manager, Kolawole Banwo said the civil society was working especially for the strengthening of the Inter-Ministerial Task Team (IMTT)

    “We are engaging in advocacy to strengthen it and ensure that there is a remediation plan that will be made public for citizens to engage,”he said,  adding that part of the problems is that they are mutually self-accounting and do not usually account to any higher authority

  • ‘Nigeria has huge nuclear energy prospects’

    Nigeria stands a better chance of maximising the potentials in nuclear energy for growth, ROSATAM’s Vice President, Viktor Polikarpov, has said.

    ROSATAM is a leading Russian nuclear energy firm, with interest in Nigeria, Ghana, South Africa and other countries in Africa. Polikarpov said the country must use nuclear energy, and other energy sources to stimulate growth.

    He said: “In order to stimulate the economy, you need reliable and affordable power. The current lack of electricity is a major hurdle for African nations when it comes to achieving their full economic potential.”

    Speaking at a stakeholders’ forum, in Russia, which has Nigerian delegates in attendance, he urged the Federal Government to leverage the potentials in nuclear energy to boost power supply.

    “Nigeria and other African nations should try and utilise their natural resources, such as coal, gas, hydro, solar, geothermal and others for growth of their power sector, if they want to tap the opportunities in the energy industry for growth, saying for this to happen, they must consider adopting an energy mix for growth. Once there is a balanced and sustainable energy mix in any country, the tendency for that country to grow its economy is high,” he said.

    According to him, a modern nuclear power plant (NPP) will provide uninterrupted power supply for a country for between 60 to 80 years at a relatively cheaper price.

  • OB3 pipeline project nears completion, undergoing pre-commissioning

    Construction of the East-West pipeline project, also called Obiafu, Obrikom, Oben (OB3) gas pipeline, has reached its final stage and is undergoing pre-commissioning test, The Nation has learnt.

    The Group Chief Executive, Oilserv Limited, Mr. Emeka Okwuosa, whose company is one of the contractors handling the project, told The Nation in Houston, United States, during the Offshore Technology Conference that OB3 was undergoing pre-commissioning in the past three months.

    According to him, a project of that size, the largest gas pipeline project in Nigeria, takes time to deliver because all the necessary processes must be undertaken. He said: “The pipeline is 48-inch in diameter and 67-kilometre long. To do the pre-commissioning, you have to clean up the pipe, pressurise it. Just imagine the volume of water you have to pump to fill it. Because of the size of the pipeline, it has to be sectionalised, we fill with pressurised water and clean it to meet all industry standard before you can remove the water and dry the pipeline up.

    “To dry the pipeline alone takes time because you can’t mix water with gas, which you intend to transport, you will use a compressor with high pressure and temperature to pump air through it. Just imagine the volume of air you have to pump into 48-inch diametre by 67km pipeline. Sometimes, it can take up to three months to dry.

    “The process is long and that’s what we are doing now.  We are also doing the installation works at the end facilities because the pipeline we are building is different from ordinary pipeline you are familiar with. We have the facilities, which include the metering stations, the pigging and other heavy duty equipment. You have to install, interconnect, test, caliberate and do all those things that are required before it is put to use.

    “The project is at the terminal end, we are supposed to finish by end of July 2018. So, we are still on track definitely.”

    The multi-million dollar OB3 gas pipeline is expected to increase domestic gas supply by two billion standard cubic feet per day (bscf/d) when it begins operation later in the year. At inception, the project was estimated to cost over $400 million.