Category: Energy

  • ‘We‘ll expand bio-bean technology to Nigeria’

    ‘We‘ll expand bio-bean technology to Nigeria’

    Arthur Kay is the founder and vice chairman of bio-bean, the world’s first company to industrialise the process of turning coffee waste into advanced biofuels and biochemicals. He is also a recipient of Shell’s LiveWIRE Innovation Award. Kay explained to reporters how waste from coffee grounds could be used as alternative source of fuel to power buses, saying:  “There’s nothing like waste, but resources in the wrong place.” EMEKA UGWUANYI  was there.

    How relevant is the project to a country like Nigeria where Shell has been operating for many decades?

    We’re launching bio-bean buses by using biodiesel to power 100 of London buses.Though this is currently used only in London, in future we hope to bring it to a country like Nigeria, where they drink about 275million cups of coffee a year. It’s a huge amount of coffee drunk in Nigeria, so the potential to apply a similar solution in Nigeria is massive. Naturally, what we try to do with this project is to do it here in London, but we’re thinking about applying the same concept in far different places and locations.

    What sort of energy challenges will this address?

    Bio-bean will address two key problems: the first is a waste problem, because, coffee drinking creates a lot of coffee grounds and in the UK alone we drink tens of tons of millions of coffee and that produces a lot of waste bags. That means a lot of waste out there, which is currently being sent to landfills.What bio-bean does is that we work with a lot of waste management companies and coffee factories to collect coffee grounds and bring them into our factory and thereby save a lot of Carbon Dioxide being sent to landfills. The second thing that we do is that instead of leaving them out there, we then turn those coffee grounds into a range of energy products such as pellets. So, what we’re launching today is to showcase how the alternative source of energy we created by diesel extracted from the oils of those coffee grounds and which were then blended to be used for London buses. In essence, there are two elements to today’s event, one is saving waste and the second is displacing conventional fuel and replacing it with renewal energy sources.

    Is the technology limited to arctic country like the UK, as not so much coffee is relatively drunk in Nigeria? 

    I don’t think it is limited. The bio-bean project is not solely about coffee or biodiesel, it is a broader insight into the context that there’s no such thing as waste, but resources in the wrong place. So, it is to get us to think of our waste and energy process as being connected. What that does is that it helps us come up with some great and bright energy ideas to solve them. Even if Nigeria is not a cold climate like the UK, they still drink a lot of coffee – 275 million cups a year – so it’s not a small amount, it’s a significant amount. So, there’s still an opportunity for a company like bio-bean to, one day, expand to Nigeria.

    What’s the quantity of coffee consumption in the UK?

    We produce about tons and tons, and there’s a lot of waste from that.

    How much of energy is that converted into in terms of powering buses?

    In London, specifically, it’s about 200,000 tons of coffee being drunk. That’s enough to power roughly one third of buses on the London network if we’re able to get our hands on every single cup dumped as waste. In essence, what we’re launching today is a smaller demonstration – working with the London fleet – of the potential of this idea and how it can be exciting if we unlock waste and see what we can do with it.

    What number of buses will it take off with?

    We’re currently producing about 6000 litres, that’s being blended with a lot of fats and oil as we’re working with some partners to produce that fuel. Of course, we’re supported by Shell which actually delivered that budget. To answer your question, it’s difficult to give a specific number of  buses, but when we use 6000 litres, that’ll be enough to power one London bus for the entire year.

    How soon will something to identify entrepreneurs like Arthur take place in Nigeria? 

    Shell has been very supportive to entrepreneurs in different countries to nurture creative ideas and I understand that in Nigeria as well, Shell is also working to identify entrepreneurs like me. I know that in Nigeria, just as in the UK, there’s the Shell LiveWire programme, which supports entrepreneurs and start-ups to come up with bright energy ideas in addition to helping them to run successful businesses.

    It was indeed through Shell LiveWire that one of our first products got a bit of funding in 2013. That was when it was just me with an idea. We’ve now developed two ideas since then and this is now the third product we’ve produced through the support of Shell. In terms of relevance to Nigeria, it is using that support that Shell provides and its networks in bringing this idea across.

    How cost-effective is it?

    Our main focus is on saving money for the producers of the waste coffee bags rather than just sending it to landfills. The thinking behind it is that to be environmentally friendly doesn’t have to be that costly.

    How sustainable is it?

    If we specifically look at this bio-bean project in terms of bus routes, if you take mineral diesel and compare it to second generation diesel, you have an 80 to 85 percent savings and that’s the figure from the recent Transport for London of June 2015.

    How much of cleaner energy can it deliver? 

    It’s pretty significant based on the Transport for London report.

    Considering that Nigeria has more buses by virtue of a higher population than the UK., does the amount of pollution being emitted make the country an attractive destination?

    Firstly, what we’re doing is to  prove the concept of bio-beans being a cleaner concept, a new technology and a new way of thinking about waste and demonstrating it in the market by working with Shell and our partners. Once we’ve proven it here we’ll be glad to expand it outside the UK and Nigeria will be a great place

  • Oil and gas: The good, the bad and the unpredictable

    Oil and gas: The good, the bad and the unpredictable

    For stakeholders in the oil and gas industry, the outgoing year is a mixed bag of blessing. AKINOLA AJIBADE examines events that shaped the sector during the year.

    Increase in crude oil prices

    The year started on a very good note, as prices of Brent crude, rose to $58 per barrel from $44. 73cent per barrel, a development which excited stakeholders as well as rekindled hope in them that better days were ahead in the global oil sector. Though the price slipped to between $45 per barrel in August, that has not in any way doubted the future of the market, as the price hits an all-time high of $65.88 per barrel this December. As usual, the issue elicited positive response from stakeholders, including the government, as they projected that crude oil price will hit  $68 per barrel by the first quarter of next year.

     

    Pipeline vandalism

    Like a recurring decimal, pipeline vandalism kept on resonating in the Nigerian petroleum sector. In the first two quarters of 2017, cases of destruction of oil and gas installations by militants were on the increase, a development which necessitated the declaration of Force Majeure on such facilities, by the Federal Government. The issue made crude oil output to fall below 2.2 million barrels per day, even as a group known as Movement for the Emancipation of Niger-Delta (MEND) claimed responsibilities for some of the attacks.

    In November, Nigeria’s crude oil output slipped to 70,000 barrels per day (bpd) as exports of Bonny Light crude were under force majeure for part of the month. This, no doubt, affected earnings since Nigeria derived 70 per cent of its revenue from oil imports. In all these, the Federal Government, local and foreign oil companies were badly hit by the development.

    For example, Seplat Production Development Company reported a net loss of $98 million (N24 billion) in the first nine months of 20I6, compared to a net profit of $69 million (N14 billion) in 2015, following the shut–in of the Forcados terminal and suspension of exports from mid-October, and combined with the effects of lower prices of crude oil.

    Also, Oando Energy Resources (OER) during the nine months, which ended on September 30, 2016 recorded a 20 per cent decrease in total production of 12.0 million barrels oil equivalent (MMboe) (average 43,617 boe/day), compared to 15.1 MMboe (average 55,154 boe/day), in the company’s gross profit, which decreased by 52 per cent, N28.7 billion compared to N60 billion it recorded in the previous year. The company said it faced operational challenges due to the unrest in the Niger Delta. Lekoil also recorded a net loss of $8.1 million during the first half of 20I6.

    Besides, oil majors including Exxon Mobil and Royal Dutch Shell Plc in 2016, reported their lowest quarterly profits since 1999 and 2005, respectively, due to attacks on their operation and other issues.

    The former country President, National Association of Energy Economists (NAEE), Wunmi Iledare, said incessant attacks on oil facilities affected operations in the industry in 2017, adding that production and exploration activities are worst hit. He added that despite talks on how to end unrest between leaders in the region and the Vice President, Yemi Osinbajo in May, attacks on oil facilities persist.

     

    Passage of Petroleum Industry Bill

    The passage of the Petroleum Industry Governance Bill (PIGB) by the Senate has rekindled hopes in the sector. The bill, which suffered delays in the National Assembly for almost 17 years, due to bureaucratic bottlenecks, is expected to  transform the industry in future.

    Through the PIGB, a new agency, known as the Nigeria Petroleum Regulatory Commission (NPRC) will be established with a view to take over the functions of the Petroleum Inspectorate (PI), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA). The Commission will also administer and enforce  policies, laws and regulations relating to all aspects of petroleum operations as  spelt out in the provisions of the Act.

    In the PIGB, the Ministry of Petroleum Resources will be renamed Ministry of Petroleum Incorporated, while the Minister of Petroleum Resources, on the recommendation of the new Commission, can grant, amend, renew, extend or revoke any licence or lease facilities required for petroleum production, pursuant to the provisions of the Act or any other enactment.

    The bill also proposed that when the commission is created, it shall be vested with all assets, funds, resources and other movable and immovable property, which immediately before the commencement of operation of the new commission,were held by the PI, DPR and PPPRA. According to the Senate, the move was geared towards unbundling the Nigerian National Petroleum Corporation (NNPC) and the petroleum industry.

    An expert in energy law, Dr Ayoade Adedayo, said the bill will revolutionise the industry, as well as ensure competitiveness among operators. The industry, he said, will be competing with its counterparts abroad when the bill is finally passed, urging operators to prepare themselves for the task ahead.

    Adedayo, who lectures at the University of Lagos, said changes, which have eluded the sector, will start manifesting now that the PIGB has been passed by the Senate.

     

    Fuel scarcity

    Fuel scarcity in the industry has become a perennial issue and unpredictable, as Nigerians experience it yearly. The country is still going through its throes caused by both human and material factors such as distribution bottlenecks and differential prices paid by marketers for the product. The scarcity pitched stakeholders against one another as they trade blames on the issue.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) Southwest Chairman, Alhaji Debo Ahmed, said the fuel scarcity was caused by the Nigerian National Petroleum Corporation(NNPC), which according to him, connived with the  Depot and Private Marketers Association of Nigeria (DAPMAN) to shortchange its members.

    He said the problem was instigated by the NNPC, which supplies fuel to DAPMAN at N33.80 per litre, while DAPMAN sells the product to them at N42 per litre.

    According to him, the development has left little or no gains for the marketers, which he said, are struggling to survive.

    But DAPMAN Secretary, Femi Adewole, said the allegations are plausible, accusing marketers of crying foul because they are unable to get direct supply from the NNPC.

    While this lasted, the NNPC intervened by increasing fuel supply to Lagos and its environs.

     

    PENGASSAN strike

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), fixed December 18th for its nationwide strike, following inability of the Minister of Petroleum Resources, Dr Ibe Kachikwu, to broker peace between PENGASSAN and Neconde Energy Service Limited.

    PENGASSAN had demanded the re-instatement of some sacked workers by Neconde management, a request which the company was not willing to grant. This informed the decision by PENGASSAN to embark on the strike. It was, however, called off by the Association earlier in the week at government’s intervention.

     

    Power sector

    The sector is plagued by poor power generation, distribution and transmission, a development, which has worsened the situation in the industry. Generation was increased by 687megwatts(Mw) of electricity from 3,000 megawatts (Mw) in the fourth quarter of 2016 to 3,687 megawatts (Mw) in the first quarter of 2017. Similarly, the country increased its generation capacity to 6,803 megawatts (Mw) of electricity in August.

    The Power, Works and Housing Minister, Mr Babatunde Fashola, attributed it to the resolve by the Federal Government to substantially improve the sector and the economy. At the 18th monthly power sector meeting in Kano, Fashola said: “As  at August 10,  6803Mw  was  recorded  as the current available generating capability, with a wheeling capacity of 6700 Mw by the Transmission Company of Nigeria(TCN), currently constrained by the inability of the power distribution companies (DisCos) to take load.’’

    Commenting further, the Minister said the Federal Government was doing its best to ensure improvement in electricity supply, adding that the government has embarked on serious expansion of transmission capacity with some power plants already completed, while others have reached advanced stage of completion.

     

    DisCos problems

    The eleven power distribution companies (DisCos) tried their best to improve electricity supply in the country, but were limited by problems of poor distribution networks, meters supply,  shortage of transformers and other infrastructural facilities. More worrisome are issues of epileptic power supply and scarcity of meters.

    Despite the decision by power firms to conduct enumeration exercise and provide meters to their customers, the problem persists. To solve metering problem, Fashola urged operators to democratise the process of supplying meters to customers.

    He said meter provision is not a monopoly of DisCos, but is open and regulated by the National Electricity Regulatory Commission( NERC), adding that the democratisation of meter provision is intended to reduce the conflict between customers and DisCos and reduce losses to the sector.

    Ikeja Electric (IE) Chief Executive Officer,  Anthony Youdeweoi, said the firm has distributed meters to its teeming customers, adding that meter is a problem in the sector. He said the firm has lined up programmes in 2018 to meet the yearnings of its customers.

    ‘’We at (Ikeja Electric) are aware of problems facing customers in the industry. Of importance is shortage of meters; an area where we have been doing our best and will continue to do our best in the years ahead,’’ he said.

  • Ugwueze, Mbamalu emerge winners at innovation fair with breakthrough energy technologies

    Ugwueze, Mbamalu emerge winners at innovation fair with breakthrough energy technologies

    In a remarkable display of innovation, Martin Mbamalu’s groundbreaking work on the “Firewood Saving Stove” and Emeka Ugwueze’s “AKPAIKE (Power box) a portable hydroelectric generator” emerged joint winners at the prestigious 2017 “Ola Ndi Igbo” Inventions and Innovations Fair.

    Mbamalu’s “Firewood Saving Stove” is designed to reduce harmful environmental and health impacts associated with traditional firewood usage, offering a practical solution to clean and efficient energy access.

    “I am passionate about solving real-world problems through sustainable technology. This stove represents a leap forward in both energy efficiency and environmental protection,” said Mbamalu. Ugwueze’s “AKPAIKE (Power box), a portable hydroelectric generator” offers a renewable energy solution for remote areas with water resources.

    He said, “I believe that innovation can transform lives and communities. My work is dedicated to providing sustainable energy solutions for those who need it most.”

    The Ola Ndi Igbo Inventions Fair celebrates individuals of Igbo descent who have made significant contributions to their professions, particularly those whose work has had a global impact.

    The event provides a platform for innovators to share their ideas and attract support from sponsors and mentors. The winning projects were selected by a diverse panel of judges, including notable figures from academia, industry, and government.

    The inventions were exhibited and pitched at the fair, allowing judges and visitors to inspect the innovations firsthand and make informed decisions.

    Speaking at the event, Dr. Obiageli Ezekwesili, Former Minister of Education, in her keynote address expressed excitement at the display of innovative ideas by young Nigerians who can be seen as role models for others.

    Ezekweseli said: “I am thrilled to see our innovators recognized for their outstanding contributions to sustainable energy solutions. Their work is a testament to the power of human ingenuity in addressing critical global challenges.”

    According to Professor Barth Okolo, former Vice Chancellor of the University of Nigeria Nsukka (UNN), “The fair is a testament to the ingenuity and creativity of the Igbo people. We are proud to recognize and support innovators like Mbamalu and Ugwueze who are driving systemic change through their work.”

    CN Agulanna, Director General of the Projects Development Agency (PRODA) also commented, saying: “We are committed to supporting innovators who are addressing critical challenges in energy access, environmental sustainability, and economic development. The work of Mbamalu and Ugwueze is a shining example of the impact that innovation can have on society.”

  • NNPC may ban petrol with high sulphur content

    NNPC may ban petrol with high sulphur content

    The Nigerian National Petroleum Corporation (NNPC) may ban imported fuel with high sulphur content by December 31 this year, its General Manager, Group Public Affairs, Ndu Ughamadu, has said.

    NNPC had planned to ban petrol with high concentration of high sulphur content between July1, last year and last July 1, but was unable to do so due to some regulatory bottlenecks.

    Ughamadu told The Nation that NNPC may implement the ban, adding that the issue is of great importance to the Federal Government.

    Ughamadu said: ‘’The issue of  banning the importation of fuel, with higher volume of suplhur and other imports that contain a considerable level of harmful materials, is sacrosant. The government, through  NNPC is not leaving anybody in doubt, about its readines to outlaw dirty fuels, since they are posing threats to human lives. Yes, the banning can still take place before the year runs out, at least for the sake of safety of consumers. 2017 has not ended, as it remains two or three weeks to go.’’

    He said the process of making Nigerians use fuel, which contains lower level of sulphur is on-going, adding that NNPC has deciced to carry along quality control institutions like the Standards of Organisation of Nigeria(SON) on the issue to do a good job.

    He said switching from fuel with higher sulphur content to lower one was global and that many countries  in Europe and other continents have done so.

    Ughamadu said NNPC is charged with maintaining standards in the industry, especially in fuel consumption.

    Also, the former Minister of Environment, Ms. Amina Mohammed, said the Federal Government is working with the refineries to produce fuel with lower sulphur content in the near future, adding that the issue of enforcing the ban is of major concern to the government.

    Ms. Mohammed, now United Nations Deputy Secretary, said some countries have dumped fuel with high sulphur content, pointing out that Nigeria cannot be an exemption.

    She said NNPC has issued enough notices on the matter and that it can no longer delay the implementation. She said Nigeria will commence the enforcement of the 50 parts per million (ppm) sulphur in fuel soon to enble Nigerians use safer and environmentally-friendly fuel.

    She said new refineries that are coming up in Nigeria have been directed to produce fuel at 10 ppm to reduce its sulphuric composition.

    She said when that happens, Nigeria will be consuming fuel with five per cent sulphur  lower than that of South Africa, which has 15 ppm.

    ‘‘Some of the new refineries that are coming up have 10 ppm; South Africa is 15ppm. But for us, it is a West African problem and we hope that we can lead in West Africa by reducing it. So, there is no reason we can’t do it,’’ she added.

    Ghana has slashed the sulphur content in fuel to 50 ppm for imported petrol and diesel, from 1,000 ppm and 3,000 ppm.

    By this, Ghana has taken the lead in the West African sub-region, and it beholds on Nigeria to take similar steps to gaurantee the safety of its people.

  • NERC reviews penalties for electricity theft, others

    NERC reviews penalties for electricity theft, others

    The Nigerian Electricity Regulatory Commission (NERC) has reviewed penalties for electricity theft, meter by-passing and other bad practices.

    The Commission said this would deter people from committing offences such as meter-tampering and theft.

    It said it  had been getting complaints from the power distribution companies (DisCos).

    In a circular titled: “Order on unauthorised access, meter tampering and by-pass” Order Number: NERC/REG/41/2017, jointly signed by the Commission’s Vice Chairman, Sanusi Garba and its Commissioner, Legal, Licensing & Compliance, Dafe C. Akpeneye, the Commission ordered DisCos to disconnect unauthorised distribution networks and impose a fine on the perpetrators.

    NERC added that any customer that tampered with a meter or  bypassed one would pay for the reconnection and other administrative charges.

    “Discos are authorised to back-bill customers who gain unauthorised access to electricity at the prevailing tariff of the customer for the established period of the unauthorised access,” it said.

  • ‘90% of gas cylinders in Nigeria are expired’

    ‘90% of gas cylinders in Nigeria are expired’

    About 90 per cent of the Liquefied Petroleum Gas/cooking gas in Nigeria are obsolete and need to be replaced, the Programme Manager, National Liquefied Petroleum Gas Implementation (Office of the Vice-President, Dayo Adeshina, has said.

    At the just concluded 7th Annual LPG conference and exhibition, held in Lagos,  Adehina, said obsolete  gas cylinders has become a major issue in the LPG sub-sector of the nation’s gas industry, adding all efforts to do something on it has failed.

    According to him, the stakeholders have been campaigning  for the ban on the use of old gas cylinders, with a view to make the  Federal Government revive the moribund gas cylinders in the country.

    He said the use of old cylinders is disturbing, adding that it has a negative consequence on the society, adding that it has put many families in dangers.

    Obsolete cylinders, he said, has raised an alarm over the non-testing and proliferation of expired gas cylinders in circulation across the country, saying cylinders outlive their safety after 15 years.

    He said; “We need to invest in cylinders and proudly one of the investors would have its cylinder operating plant opened in January. We also need to have cylinder re-proliferation plants.”

    He however, also faulted the regulation in the sector, saying “We need to take care of the regulatory and fiscal policy. Enforcement needs to play a big role. There is going to be ashakeup of regulation because the government has seen that if we ever have a repeat of the incident we had in Nnewi, it is dead on arrival.”

  • WAPCo to increase gas supply to Ghana, others

    WAPCo to increase gas supply to Ghana, others

    The West African Gas Pipeline Company (WAPCo) will  improve  supply of natural gas to thermal plants and industries in the sub-region, its General Manager, Corporate Affairs, Mrs Harriet Wereko-Drobby, has said.

    She said the firm is ready to increase gas transportation to turbines and industrial entities, if there is no further attacks on oil and gas installations and its attendant declaration of force majeure on those facilities.

    According to her, WAPCo gets   gas from N-Gas2 owned by the Federal Government, Shell and Chevron, among others.

    Wereko-Brobby said: “It has become imperative for WAPCo to increase gas supply to its customers in the sub-region, following the completion of its 678- kilometre pipeline, which is the basic infrastructural facility for moving gas. The firm built the pipeline at $1billion and the term has come to leverage it to increase gas supply to West Africa.

    “In view of the fact that gas plays a major role in electricity generation, WAPCo supplies 85 per cent of its gas to power firms, while industries get 15 per cent.”

    She said the firm is transporting gas to its customers through its pipeline network, which runs from Itoki in Ogun State to Badagry in Lagos State to Cotonou in Benin Republic to Lome in Togo and terminated at Tema in Ghana.

    The firm, Bereko-Brobby said, has entered a commercial stage, in which it has to make commercial value out of gas transportaton.

    In an interview with The Nation, at the quiz competition for secondary pupils organised by the firm in Badagry, Bereko-Brobby said making commercial value out of gas transport was key to the survival of the company.

    She said the Nigerian National Petroleum Corporation (NNPC) owns 25 per cent stake in WAPCo, making it the second largest shareholder after Chevron West African Pipeline Limited with 36.7 per cent stake.

    Others, she said are Royal Dutch Shell 18 per cent stake;  Volta River Authority of Ghana 16.3 per cent and Societe Togolaise de Gas(So ToGas- 2 per cent. She said the shareholders were motivated by the desire to make gas available for users in the sub-region and to also get returns on their investments.

    WAPCo is transporting 70million standard cubit feet of gas per day (scfd) to its customers in sub-region.

    The firm’s Chief Executive Officer, Walter Perez, attributed the feat to the drop in pipeline vandalism.

    Perez said there has been stability in product supply, as pipeline vandalism dropped significantly.

    He said the company is on the verge of meeting the demands of its customers, as it now transports 70million standard cubit feet per day of gas (scfd).

     

  • Experts proffer solutions to power problems

    The power sector requires funding, infrastructure, a mixture of gas, hydro and renewable sources of energy and cost reflective tarrifs to operate optimally, stakeholders have said.

    Other strategies, they said, are efficient transmission and distribution network, meters, and gas.

    The Chief Executive Officer, SolarCentric Technologies Limited, Mr Adetunji Iromini, the Campaign Director, Nigeria, Power for All, Mr Ifeoma Alo, the Executive Director, Business Development, Starsight Nigeria Limited, Mr Rex Adebayo, and others, spoke during the 12th  renewable energy seminar organised in Lagos, by the German Embassy, Abuja and German Chamber of Commerce and Industry.

    The seminar’s  theme was: Solar PV Development in Nigeria.

    Iromini said the industry is facing problems, such as short supply of meters, huge tarrifs and poor infrastructure, adding that the problems can be solved, when the sector is well financed.

    He said when there is huge liquidity  in the sector, it would be easier for the power firms to improve electricity supply, procure enough meters for their customers, amond doing other things that would engander growth in the sector.

    He said the power distribution companies (DisCos) interface with customers regularly, adding that it would be easier for the firms to know the problems facing them and how to proffer solution to them.

    On metering, Iromin urged power firms to conduct enumeration to know the customers that need meter and supply them meters appropriately, adding that by so doing, the firms are saving customers from the agony of estimated billing.

    Citing a report on Power Sector Recovery Programme(2017-2021), he said a unit of energy cost around N50.30, urging the Federal Government to subsidise the price, at which, people are paying for energy.

    Alo urged the government to allow prospective and exisitng investors in solar and other renewable energy build mini-grids, adding that the government would be decentralising transmission of electricity in the country.

    He blamed the Olusegun Obasanjo administration for not probing Nigerians that were guilty of corruption.

    He, however, commended the government of former President Goodluck Jonathan, for privatising the sector, despite the challenges facing it.

  • Addax plans $5b fresh investment

    Addax Petroleum Development (Nigeria) Limited is planning to inject  between $3 and $5 billion into the business.

    Its General Manager, External & Government Affairs, Dorothy Atake, said part of the company’s objectives is optimising its oil and gas operations and increasing production from its assets – onshore and offshore.

    Addax  Petroleum/NNPC Production Sharing Contract (PSC), according to her, has produced over 425 million barrels of crude oil in over 19 years when it took over the Oil Prospecting Licences (OPLs) 98/118 and OPLs90/225 operated by Ashland Nigeria Oil Company that operated the blocks for 25 years (1973-1998).

    She noted that the company as contractor to and for Addax/NNPC PSC, achieved this feat “through sustained investments in reserves and production growth, application of technology, strong NNPC/DPR strong partnership and with of host communities”.

    Atake said: “Leveraging its world-class technical expertise and application of technology, Addax/NNPC PSC has brought various fields on-stream and embarked on exploration and appraisal campaigns in its adjacent concession areas resulting in commercial oil discoveries in Ofrima  and Udele fields, a project pivotal to Addax growth plans in the country.

    “In addition, Addax Petroleum has a strong track record of developing under-exploited hydrocarbon resources and has through business drivers hinged on Health, Safety, Security and Environment (HSSE), human capital development, operations excellence and capital efficiency achieved this feat.

    “The Addax/NNPC PSC remains a socially responsible operator supporting the economy through her investments in exploration and production (E&P) and communities’ projects. Safety and care for the environment is its priority as evident in her low safety incident record and continued reduction in gas flaring from its assets since2009.”

    To increase production, Addax is drilling in the Njaba field in oil mining lease (OML) 124 area. “The first oil drilled the OML 124 campaign was completed ahead of schedule and significantly below budget. Preliminary well test results exceeded projected average oil production potential.”

    Since the 2009 SINOPEC takeover, Addax Petroleum NNPC PSC has invested over $5 billion and generated over $7 billion for the government, and created jobs Nigerians, including the host communities.

    “The company has also pioneered the institution of a micro credit scheme, where over 480 women have been empowered to develop their small scale businesses, through a revolving loan scheme initiated to empower small scale business women within OML 124 host communities.

    The Technical Skill Acquisition Programme (TSAP) has enabled youths within the host communities in Imo, Akwa Ibom and Rivers states to be trained at the Federal Technical College, Omoku, in Rivers State, on selected vocations, and after training, Addax Petroleum donated tools and equipment to assist them set-up small scale businesses in their chosen vocation. The company has spent significant amount on this scheme in addition to tertiary and post primary education scholarships and infrastructure development in the education sector.

    “Nigerian content development remains one of Addax /NNPC PSC’s critical business drivers as the company ensures compliance with the requirements of the Nigerian Content Act through the use of local materials and services. We achieved these initiatives with the tremendous support of the Nigerian Content Development Monitoring Board (NCDMB).

    “This venture has been at the forefront of building local capacity, contractors and making huge investments in training and development of Nigerians. It has 255 Nigerians in its employ as well as another 380 contract staff.

    “Addax/NNPC PSC is committed to research and development and in partnerships with the Universities of Benin and Port Harcourt.

    “Addax Petroleum has since 2009 been an affiliate of  SINOPEC, bringing this to bear on positive Sino-Nigeria relationship,” Atake added.

  • ‘JV cash calls exit ’ll end project deferments ’

    The Petroleum Technology Association of Nigeria  (PETAN) has said the exit of joint venture (JV) cash calls by the Nigerian National Petroleum Corporation (NNPC) will end the era of project deferments and cancellations by International Oil companies (IOCs).

    At a forum in Lagos, its Chairman, Mr. Bank-Anthony Okoroafor, said the new self-funding model would also open up the oil and gas sector and ensure that the service providers were paid promptly by the IOCs.

    It would be recalled that the NNPC last December exited the cash call arrangement with the IOCs and got a discount of $1.7 billion from the $6.8 billion it owed its JV partners as cash call obligations.

    Under the deal, the corporation was requested to pay $5.1 billion out of the $6.8 billion, and another $1.2 billion cash call debt owed the partners last year.

    The corporation paid the first tranche of $400 million last April  with a promise to pay the balance next April.

    With NNPC’s exit of the JV cash call model, the JV partners adopted a self-funding model to execute oil and gas projects, thereby freeing the Federal Government from budgetary allocat