The Nation Newspaper

Category: Energy

  • Consumers knock DisCos for excess billing, poor performance

    It was a no-holds-barred talk in Lagos when customers hit the electricity distribution companies (DisCos) hard for giving them (consumers) outrageous bills without commensurate or power supply. Some customers called for a review of the power sector privatisation as, the DisCos, according to them, lacked the capacity and competency to handle power.

    The event was the hearing of complaints and petitions from various customers sent to the House of Representatives and anchored by the House Ad hoc committee on Electricity Customers’ Complaints with representatives of the DisCos in the Southwest geopolitical zone and Nigerian Electricity Regulatory Commission (NERC). Unfortunately, Ekiti State customers covered by the Benin Electricity Distribution Company (BEDC) did not have their service provider present as it is located in Benin, Southsouth. However, The Nation learnt that they chose to come to Lagos instead of Port Harcourt as Lagos is closer to them.

    The ad hoc committee chairman, Hon. Israel Ajibola Famurewa, said: “We have received a lot of complaints, petitions from Nigerians about outrageous billing and poor services rendered by the DisCos. It has got to a stage that if the House doesn’t do something about the matter, it may lead to a breakdown of law and people may take laws into their hands.

    “The House in its wisdom constituted this committee to interface with the consumers, DisCos and the regulatory body (NERC) and find lasting solutions to the problems. We had an interactive session with some stakeholders in Abuja and decided to have proper interactions with consumers, DisCos and NERC in different geopolitical zones. We have started with Lagos in Southwest, from there to Enugu in the Southeast, Port Harcourt in South-south, Yola in the Northeast, Kano in the Northwest, Nasarawa in the Northcentral before we have a proper public hearing in Abuja.

    “At the end of this exercise, hopefully we believe, I will tender our report in the House. We will look at the laws that guide the sector holistically. If need be to repeal some laws and re-enact, we do, or amend some laws, we do.  We are representatives of the people, we will do everything possible within the legislative framework to protect the interests of Nigerians we are representing and make sure their rights are adequately protected.”

    The committee, he said, is required to report to the House in six weeks and they (committee) will ensure they deliver within the timeframe.

    On the complaints, the various customers from Ikeja, Eko and Ibadan DisCos that cover the Southwest urged the Federal Government to carry out holistic review of the activities of some distribution companies in the Southwest region over non-performance.

    Chairman, Community Development Association, Magodo Phase 1, Mr Bode Ojomo, urged the committee to enact a law that would restrain distribution companies from carrying out estimated billing without reading of meters.

    “We are battling with overbilling and estimated billings from distribution company, despite non-supply of power to the estate in the last three months. Ikeja DisCo has failed in its responsibility to customers. I urge the electricity regulator to attach stiffer sanction to non-performing Discos. Enough is enough; we cannot continue to be paying for darkness. We are paying over N35,000 monthly on three bedroom apartment,” he said.

    He added that the Ikeja DisCo does not read meters, querying how houses in the estate could get the same amount on the bills issued. “Do they have the same consumption level? It is not possible to have the same bills, it is fraud,” he added.

    Another consumer, Mrs Ladun Lawal, a retired civil servant in Ife, Osun State, condemned Ibadan Electricity Distribution Company (IBEDC) for persistent high bills given her by the company without corresponding energy supply. Lawal said the phenomenon of crazy bills had become a monthly ritual, which she had to contend with.

    She urged DisCo management to train their workers on manners and how to attend to customers, adding that the DisCo lacked service delivery, customer relations and is known for issuing fictitious bills to consumers.

    According to her, installation of pre-paid meter by IBEDC to customers has become a taboo as they live fat on estimated billing. “I paid over N80,000 for meter since 2016, but I am yet to receive the meter and they keep sending bills of over N200,000 monthly to my place. It is painful that this is happening in this country. How will one access light from the IBEDC for just three hours in the entire month and the bill is mind-boggling,’’ she said.

    Mrs Abosede Ogunyemi, a trader from Ekiti State under Benin DisCo, lamented the crazy billing in spite of epileptic power supply, adding that many had waited for years to obtain prepaid meters. Ogunyemi described the fixed and estimated system of billing as fraudulent, saying the system has also been faulted by NERC as cheating of consumers.

    She decried consumers’ arbitrary billing by Benin Electricity Distribution Company (BEDC) over the year, adding that the estimated billing system had become means of exploiting Nigerians.

    She urged the government to intervene by making durable prepaid meters available to consumers. “I stopped using public power supply since two years ago due to poor supply and unscrupulous officials of the distribution company. The officials would bring between N35,000 and N47,000 monthly when their company did not supply us power up to three hours in a whole month,’’ she said.

  • Inoyo is ExxonMobil’s Vice-Chairman, Nigerian affiliates

    ExxonMobil affiliates in Nigeria – Mobil Producing Nigeria Unlimited (MPN) and Esso Exploration and Production Nigeria Limited (EEPNL) have announced the appointment of Udom Inoyo as Vice-Chairman of the Boards of the companies, with effect from March 19, 2018.

    Until his appointment, Inoyo, was Executive Director and In-Country Human Resources Manager for MPN and EEPNL.

    Udom joined the MPN in 1989 and after several Human Resources (HR) roles in Nigeria, United States and Belgium, was appointed Manager, HR Policies & Programmes in 2001. He became the General Manager, External Affairs between 2002 and 2006, and thereafter, the in-country HR Manager. He was elected to the Board of MPN as Executive Director in 2004.

    Udom Inoyo hails from Akwa Ibom State and holds a bachelor’s degree in Political Science (1981) and LL.B in Law (1987) from the University of Calabar and was called to the Nigerian Bar in 1988. He is an alumnus of the Lagos Business School and Thunderbird School of Global Management, Arizona. Udom is the President and Chairman of Council, Chartered Institute of Personnel Management of Nigeria (CIPM).

  • OPEC June meeting to review oil production cut deal

    Organisation of Petroleum Exporting Countries (OPEC’s) next meeting in June will be a chance to review its oil production cut agreement, but the group, according to Kuwait’s Oil Minister Bakheet al-Rashidi,  will continue with cuts through 2018.

    While it will be discussed in June, a decision on whether to extend the deal into 2019, will be taken later this year, Rashidi told newsmen on the sidelines of the Kuwait Oil and Gas Summit.

    OPEC, with 10 non-OPEC allies, led by Russia, are in the midst of 1.8 million barrels per day (b/d) production cut agreement aimed at drawing down crude oil inventory levels and creating market stability, so that upstream investment can occur to meet the projected increases in demand.

    Saudi Arabia and Russia are leading discussions on extending the OPEC/non-OPEC coalition’s alliance.

    OPEC Secretary-General, Mohammed Barkindo, who spoke  at the same event, added that Organisation for Economic Cooperation and Development (OECD) commercial crude oil inventories had fallen to less than 50 million barrels over the five-year average, compared to about 340 million barrels in 2014. This trend, he said, is expected to continue in the coming months.

    Oman’s Oil Minister, Mohammed al-Rumhy, who signed the cuts as a non-OPEC producer, warned that the group should not consider its job done yet. “We have not reached the steady state conditions yet and the game is not over. The uncertainty monkey is still on our shoulder and it’s not the time to offload that,” he said at the same conference.

    Oil rose on Tuesday, boosted by investors’ growing concern over the potential for disruptions to crude supply, especially in the Middle East. Brent crude oil futures were up by 10 cents at $71.52 a barrel, while United States (US) crude futures gained 9 cents to be $66.31 a barrel.

    Traders said oil markets were receiving general support due to the risk of supply interruptions, including a potentially spreading conflict in the Middle East, renewed US sanctions against Iran and falling output in crisis-hit Venezuela.

    “With so many potential supply disruptors in play and few signs that the current market upheaval will end any time soon, traders continue to pay the geopolitical risk premium,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

  • Kachikwu among 100 most influential Africans in 2017

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has been named by a London-based magazine, New African,  as one of the 100 Most Influential Africans of 2017 in Business and Finance category.

    Director, Press and Public Relations, Ministry of Petroleum Resources, Mr. Idang Alibi, who stated this in a statement made available to The Nation said: “In a letter signed by Mr. Omar Ben Yedder, Group Publisher and Managing Director, congratulating Dr. Kachikwu, the magazine’s publishers said their organisation is ‘’dedicated to changing the African narrative and fighting for its interests, and hope to continue on this journey alongside people engaged in transformational roles across the continent such as your good self.’’

    Alibi, who quoted Yedder, said it has become the tradition of the publishing outfit to dedicate its annual year end edition to “celebrating and reflecting on what shaped the African continent in the past year and highlighting the men and women, who were change-makers and influencers in a number of sectors and industries.”

    “It is in accordance with that tradition that Dr. Kachikwu was spotlighted as one of the greatest influencers of the continent, last year,”Alibi said.

    The magazine publisher, according to Alibi, however, reiterated that Africans have excelled in many of their endeavours in the year 2017, both in terms of overcoming hurdles and looking to a positive future and congratulated Dr. Kachikwu and other Africans, who were honoured for their outstanding achievements in 2017.

  • ExxonMobil bags Sustainability Malaria Programming award

    ExxonMobil has received the Champion in Sustainability Malaria Programming award in recognition of its contributions to the fight against malaria in Africa.

    The award was presented at the West African Corporate Malaria Award Ceremony, which recognises private sector companies that take extraordinary steps to protect their employees and communities from the disease.

    According to Manager, Media and Communications, Oge Udeagha, the award is administered by the Corporate Alliance on Malaria in Africa (CAMA).

    The award was presented by Dr. Keziah Malm, National Malaria Programme Manager for Ghana, and accepted by Dr. Effiem J. Abbah, ExxonMobil’s General Manager of Medicine and Occupational Health in Nigeria. Dr Abbah noted that in addition to protecting its workforce, the company supported a range of organisations working to strengthen health systems, distribute bed nets, diagnostics and antimalarial treatments, and conduct research into new malaria innovations.

    “We are honoured by the recognition of ExxonMobil’s efforts to combat malaria,” said Kevin Murphy, president of the ExxonMobil Foundation. “Through our company’s workplace programme, 2,000 cases of malaria have been averted since 2007. Our support to communities has helped distribute almost 15 million bed nets and train 650,000 health care workers since 2000,”he said.

  • Shell lists contributions to economy

    OIL giant Royal Dutch Shell has listed its contributions to the country’s economy through payment of taxes, royalties, use of local materials and support of local contractors, among others.

    In its 2017 Sustainability Report released in the week, Shell Group noted that its companies have contributed to economic development of the country with safety and security as their top priorities.

    It said: “Shell has interests in several companies in Nigeria, which are major contributors to the economy. They produce oil and natural gas, distribute gas to industries in the country, produce liquefied natural gas (LNG) for export, generate revenues for the government and provide social investment. Shell companies in Nigeria are also working with federal and state government agencies, communities and civil society groups, such as non-governmental organisations, to try to create a safe operating environment.”

    It added that Shell in 2017 paid more than $59.1 billion in taxes and royalties to governments around the world of which Nigeria is among.

    “In 2017, an agreement between The Shell Petroleum Development Company of Nigeria Limited (SPDC), the operator of the SPDC Joint Venture and its government partner, the Nigerian National Petroleum Corporation, came into effect. This agreement provides an improved structure to finance future oil and gas projects and commercialise the country’s large gas resources. Improved funding will enable the SPDC Joint Venture to explore more opportunities, particularly in shallow water offshore and to increase onshore gas supply to the domestic market.

    “The safety of staff and contractors in Nigeria remains our top priority. We continue to strengthen our safety culture around Shell companies in Nigeria with our Goal Zero ambition of no harm and no leaks including partly through a programme to connect senior leaders with contractor CEOs to promote best safety working practices. We also continued to run campaigns for employees and contractors in our production operations to help them better understand Shell companies in Nigeria’s work culture, reflect on their leadership and suggest improvements to maintain a safe workplace.’’

    Shell said would continue to address safety and environmental challenges-related to both operational spills and illegal activities, such as oil theft in parts of the Niger Delta.

    It said though there was no damage to key oil and gas infrastructure  by militants since November 2016, the security situation remains volatile in the region.

    The report continued: “Shell companies in Nigeria continue to work closely with federal and state government agencies, communities and civil society to ensure that operations are carried out in a safe environment.”

    “We buy goods and services from local suppliers that meet our standards as part of our approach to share the benefits of oil and gas development to the wider economy. In some cases, we support businesses in developing the skills required to meet these standards. Our supplier principles integrate social considerations in the contracting and procurement processes. In 2017, we spent $42.2 billion on goods and services worldwide, of which around 58 per cent was in the United States (US), Canada, the United Kingdom (UK), the Netherlands and Nigeria.

    “In Nigeria, we use locally manufactured goods and service companies, which create jobs in the communities in which we operate. In 2017, Shell companies in Nigeria spent around $0.76 billion on contracts for Nigerian companies. Access to financing has been a challenge for suppliers to Shell companies in Nigeria. In collaboration with leading banks in the country, the SPDC Joint Venture (SPDC JV) and the Shell Nigeria Exploration and Production Company Limited (SNEPCo) continue to fund a mechanism that offers local contractors faster access to loans at cheaper interest rates.

    “To enable Nigerian ownership of key equipment, such as rigs, helicopters and marine vessels, Shell companies in Nigeria continue to support the development of local people and companies. For example, over the past seven years, SNEPCo has provided support to improve training and safety standards at Caverton Helicopters, one of the biggest aviation logistics providers in sub-Saharan Africa.

    “Nigeria also has one of our most successful Shell LiveWIRE programmes, with a total of $66,200 awarded to 60 young entrepreneurs from Ogoniland, all of whom completed its enterprise development programme.”

  • Why we ‘ll rely on Escravos, Forcados crude, by Ihenacho

    INTEGRATED Oil and Gas Services Limited Chairman, Capt. Emmanuel Ihenacho (rtd), has said the upcoming Eko Refining and Petrochemical Limited will rely on crude from Escravos and Forcados for its feedstock because they are of good quality.
    He said a refinery is based upon a particular specification, adding that this helps to determine the types and the costs of products that the refinery must produce.

    He said the Eko Refining and Petrochemical, which would refine 20,000 barrels daily will come on stream next year.
    Speaking during a tour of Tomaro Industrial Park, where the refinery will be located, Ihenacho said it would be easier to refine diesel, kerosene, petrol and other by-products of crude that is coming from Escravos and Forcados terminals.

    He said: “In conceiving the idea of setting up a modular refinery in Lagos, we considered factors, such as accessibility of crude, types of crude, petroleum products that would be derived from the crude, the cost of refining the crude, among others, and we realised that those factors can easily be met, if we get access to crude from Escravos and Forcados, that were owned by Chevron and Shell and located in the southern parts of the country.
    ‘’Based on this, Integrated Oil would not have problems converting crude oil into petroleum products to meet the needs of the consumers.”
    He said two tanks with capacity of 500,000 litres each will be built around the refinery and that the Nigerian National Petroleum Corporation (NNPC) could draw fuel from the facility for 15 days, when there are problems in fuel supply.

    According to him, the issue, among others, would help in easing fuel scarcity, adding that achieving fuel sufficiency would no longer be a problem.
    “The fuel tanks will be strategic storage and product supply tank facilities. Most tank farms rely on an arrangement where ships supply them and trucks come to pick products from the farms but because we are located on the Island as well as the function, the farm is designed to be supplied by ships and discharged also by ships. This means that smaller vessels would be used to take the products from Tomaro tank farms to those located at the ports,” he added.

    Continuing, he said: “With the capacity in Tomaro, there is no reason the park would not be the centre for tank farm operation because it would not only supply Apapa and Tin Can but also facilities in Port Harcourt, Warri and even some of the countries in the West African region like Ghana, Togo.
    “That is why this facility is an industrial park and an FTZ.”

  • Lack of investment in E&P invitation to crisis, says OPEC

    The Organisation of Petroleum Exporting Countries (OPEC) has said lack of investment in long-term oil exploration and production (E&P) projects will lead to global energy crisis.

    Its Secretary-General, Mohammad Sanusi Barkindo, in the OPEC Bulletin, notes that the drop exploration and production investment is worrisome as it portends future energy crisis, especially in view of expected global population increase by 1.8 billion people in the next 21 years.

    To the OPEC SG, though more optimism had returned to the industry following success of  ‘Declaration of Cooperation’ between 24 OPEC and non-OPEC countries, which had helped pull the industry out of what he called the “most injurious” down cycle in the industry’s industry, there is need to for aggressive investment in exploration and production.

    “Everybody has benefited” from the ‘Declaration of Cooperation’, Barkindo said, adding that the decision had also helped put the industry back on a “path of sustainable growth.”

    Barkindo attributed the ‘Declaration of Cooperation’ to the unprecedented conformity levels, which averaged 107 per cent in 2017, adding: “It is in the interest of this industry as well as consumers and we should continue with this framework in order to ensure sustainability and stability in the market and in this industry.”

    The SG said the United Arab Emirates Minister of Energy & Industry and President of the OPEC Conference for 2018, Suhail Mohamed Al Mazrouei, is leading the continuity consultations to institutionalise a longer term framework for the cooperation, and stressed that we see this as an “insurance against future volatility for both producers and consumers”.

    He underscored the importance of working together, stating: “No one can be an island in this industry, adding that the ‘Declaration of Cooperation’ remained open to all producers.’’

    On the need to step up exploration, Barkindo said: “Oil producers and consumers are equally concerned about the drop-off in investments and, in this regard, it was important to recall that both the International Energy Agency (IEA), and OPEC saw no peak oil demand in their long-term outlooks, that there is expected to be an additional 1.8 billion people on the planet by 2040, as well as the critical issue of energy poverty, with around one billion people still having no access to electricity and almost two billion having no access to commercial energy.”

    Barkindo added that the basic challenge is how to restore adequate and timely investment to meet expected future demand growth, and at the same address how this growth can be achieved in a sustainable way, balancing the needs of people in relation to their social welfare, the economy and the environment.

    Al Mazrouei also stressed the importance of the ongoing market rebalancing to the investments required to maintain future market stability, in the interests of both producers and consumers.

    He said: “Oil prices fell by an extraordinary 80 per cent between June 2014 and January 2016. From an investment perspective, this led to exploration and production spending falling by a massive 27 per cent in both 2015 and 2016. Overall, we have seen nearly one trillion dollars in investments frozen or discontinued, and many hundreds of thousands of jobs were lost.”

    Underscoring the importance of stability and balance across all time-frames to ensure that future demand growth is met, Al Mazrouei noted that in OPEC’s World Oil Outlook (WOO) 2017, oil demand is set to pass 100 million barrels  daily in 2020 and reach over 111 million bpd by 2040, an increase of around 15million bpd from current levels.

    He noted that oil producers and companies must invest heavily to offset the impact of natural decline rates.  He said OPEC’s WOO “estimates that the required global oil sector investment by 2040 is $10.5 trillion’’, adding: “Global investments did pick up slightly in 2017, and the same is expected in 2018, but this is not close to past levels. This needs to be rectified to ensure future market shocks are avoided.’’

     

  • Marketers tackle govt over N650b subsidy arrears

    The Depot and Petroleum Marketers  Association of  Nigeria (DAPMA) Executive Secretary, Mr. Femi Adewole, has said the Federal Government is yet to pay members over N650 billion subsidy arrears.

    He said the failure of the government to pay the money was having negative effects on their operations.

    He told The Nation on phone that the issue had forced many marketers out of business, while others were struggling to survive.

    Adewole said there was no truth in the statement that the government had earmarked money to clear  the debts, stressing that marketers had dismissed such statements.

    According to him, such statements were not enough. He added that the government had for long been telling marketers that they would soon be paid.

    Adewole said: “Marketers have tried many options to stay in business, following the failure of the government to pay them subsidies on the fuel they imported, which have grown over the time. While some have managed to still buy and sell petroleum products, others are not. In all, marketers have accumulated debts and are getting impatient over the issue.

    “It is difficult for marketers to believe the government again. It has severally reneged on its promise to pay the money, a development, which has made marketers hope to get the money. In 2017, the government told marketers that the money has been approved for payment. Up till now, marketers have not received a dime.’’

    According to him, the government made propaganda out of the issue of the payment as its promise is yet to be fulfilled. He said the promises of the government on the payment have become endless, adding that many marketers are weary of such promises.

    Failure of the government to pay the subsidies has made the debt to increase greatly due to bank interests and other charges, he added. According to him, marketers are going to react at the right time, adding that they are keeping their plans to their chest for now.

  • NNPC to cut daily loss on fuel supply to N516m

    The Nigerian National Petroleum Corporation (NNPC) is to reduce its daily loss from N774 million to N516 million, Group General Manager, Public Affairs Division, Ndu Ughamadu, has said.

    He said the corporation would achieve this by cutting the level of fuel consumed from 60 million to 40 million litres.

    He noted that product diversion and activities of some unscrupulous marketers contributed to the high consumption and once the corporation plugged the holes, consumption level would drop.

    In a telephone chat, Ughamadu said a large portion of the fuel supplied to the market was diverted to neighbouring countries, such as Benin Republic and Togo.

    He said NNPC has partnered the Nigerian Customs Service (NCS) to check the smuggling of petroleum products.

    Ughamadu said: “Our (NNPC’s) under-recovery was N774 million as at the time the level of fuel consumed in the country rose to 60 million litres per day. We, at NNPC, discovered that the higher the level of fuel that is being consumed in the country, the higher the losses recorded by the country, as a sizeable portion of the fuel is being smuggled out of the country.

    “To reduce fuel consumption, which in most cases is smuggled out of the country, the corporation decided to partner the Nigerian Customs Service (NCS). Through this means, the Customs would help to check smuggling of petroleum products by mounting surveillance at the borders.”

    He said NNPC discovered 200 filling stations in one of the borders in the country, stressing that the partnership between it and the Customs would help in addressing problems such as hoarding and smuggling of petroleum products, which he said, contributed to the fuel scarcity last December.

    “With the joint efforts of NNPC and the Customs, all  illegal petrol stations at the borders would disappear soon and fuel consumption would reduce drastically.”

    He said the level of fuel consumption was 39million litres per day, adding that it grew to 80million litres per day during the fuel scarcity and later 60million litres.

    According to him, Nigerians are erroneously blaming NNPC for fuel scarcity that occurred recently, without considering other factors that caused it.

    On fuel scarcity, he said there was no scarcity in the country, as NNPC has supplied enough fuel to marketers for distribution to their retail outlets.

    He said there is fuel in states like Imo, Enugu, and Anambra, stressing that the rumour that those states do not have fuel was not true.

    He said there is a difference between selling fuel above the official pump price of N145 per litre by some marketers in the East and its unavailability.

    Ugbhamadu said all hands were on deck to rid the fuel market of saboteurs who were frustrating the efforts of the government to supply fuel at approved pump price.