The Nation Newspaper

Category: Energy

  • Forte Oil expands business into solar energy

    Forte Oil expands business into solar energy

    An integrated indigenous oil firm, Forte Oil Plc, has expanded operation into the renewable energy with the inauguration of its solar energy solution tagged ‘Green Energy’ solution.

    Speaking during the launch, its Group Chief Executive Officer (GCEO), Mr. Akin Akinfemiwa, said: “We are foremost integrated energy provider with footprints across the value chain of the energy sector including upstream, downstream and power generation. Today, that we are launching our solar system, we always look for formidable partners to bring our vision to fruition.

    “We sat with our partners and created bespoke solutions and achieved sustainable, reliable and cost-effective solar solutc ion. The solution is mobile, cost effective and devoid of service charge.”

    He said it is very efficient and is targeted at medium income group that rely on generators to provide power.  “We will design an array of energy solution,” he said.

    Forte Oil’s Group Chief Financial Officer (GCFO), Mr. Julius Omodayo-Owotuga, said: “The solar energy solution comes with four panels, four 100 amps, 12 volts batteries with free installations. It will cost N700,000 per unit and wholesalers will be entitled to discounts depending on the number of units purchased.”

    He further said the product has a year warranty while the panels have 20-25 years lifespan.

    The Lagos State Commissioner for Energy and Mineral Resources, Mr. Olawale Oluwo, said: “The partnership and introduction of the energy solutions came at a time when Lagos State Government is targeting 3000 megawatts (MW) of power dedicated to Lagos State alone, which will be off-grid and independent of Niger Delta gas. It is complementary to what we are doing and we will give it the necessary support.

    “We will key into the solar energy solution by Forte Oil which is very vital to our programme and now that Forte Oil has put its brand to solar, we are now sure that we have a reliable partner in solar energy.”

  • Supply fuel to your depots, NNPC told

    Supply fuel to your depots, NNPC told

    The solution to the lingering fuel crisis is for the Nigerian National Petroleum Corporation (NNPC) to stop supplying fuel to Depots and Petroleum Marketers Association of Nigeria (DAPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN) National President, Chief Chinedu Okoronkwo, has said.

    He said the scarcity was caused by the decision of the marketers not to sell fuel to motorists, among other users, due to its high costs.

    While many outlets that opened for business in Lagos, Sokoto and other states, are selling fuel above the official price of N145 per litre, others are not. This development has further compounded the sufferings of many Nigerians.

    Okoronkwo said the government could help solve the fuel scarcity and its attendant problems of panic buying by ordering the NNPC to change its channel of distributing the product.

    He urged the government to direct the NNPC to distribute fuel through its depots across the country, as against a situation in which the state-owned corporation is using private depot owners.

    Okoronkwo said: ‘’The issue of supplying fuel to DAPMAN first by the National Oil Company (NOC) has done more harm than good.Through this, marketers who need the product most, are unable to get it for distribution to their outlets across the country. When I said that independent marketers need the product most, I’m talking in relation to numbers of marketers that are members of IPMAN. The number of outlets owned by members are more than the outlets belonging to Major Oil Marketers Association of Nigeria (MOMAN).

    He added: “If NNPC-owned deports are made to control the supply and distribution of fuel in the country, the issue of short-changing the marketers by giving the product to them, at a price that is not competitive, would not arise. Once marketers are getting a good profit margin, coupled with the fact that there is enough fuel in the country, the better for users and the downstream sub-sector of the petroleum industry.”

    According to him, the claims by the NNPC’s Group Managing Directors, Dr Maikanti Baru, that the Corporation has over one billion litres of fuel in reserve for use during the Christmas and New Year, should not be disregarded.

    Okoronkwo said NNPC is not only a regulator, but also the sole importer of fuel in Nigeria, stressing that the agency cannot lie about its operation.

    It would be recalled that marketers are planning to embark on strike from next Monday. But it appear they have started the strike, as they are not selling fuel.

     

  • SNEPCo sponsors Nigerian, Chinese suppliers to boost Nigerian content

    More than 20 Nigerian and 60 Chinese suppliers have met in Shanghai in China on how to boost the capacity of indigenous vendors in the oil and gas industry.

    The event was sponsored by Shell Nigeria Exploration and Production Company (SNEPCo).

    Coming shortly after the fourth edition of the Global Nigerian Forum in Aberdeen, Scotland, the  event, offered the Nigerians an opportunity to engage their Chinese counterparts on issues, such as transfer of technology and cost leadership.

    In his opening speech, the General Manager of Shell China Strategic Sourcing Development, Ding, Hiu Kwong said local content development is global, and not limited  to Nigeria, adding that Shell will continue to focus on safety, quality and cost reduction in China, as part of efforts to imp

    The Nigerian Content Development and Monitoring Board (NCDMB)  Monitoring and Evaluation Director, Tunde Adelana, commended Shell Companies in Nigeria for pioneering the collaboration between Chinese and Nigerian suppliers. He challenged the Chinese to establish their presence in the Nigerian oil and gas industry and compete with the other international companies that are taking the lead in major projects.

    Adelana, who represented NCDMB’s Executive Secretary, Simbi  Wabote, said Shell has done well in local content development in Nigeria.

    The Petroleum Association of Nigeria (PETAN) Vice Chairman Geoff Onuoha said Nigerian companies were keen on developing partnerships and effective collaborations for better service delivery lauded Shell “for the tenacity and commitment in pioneering a game changing initiative”.

    Onuoha, who is the NAPIMS Group General Manager, represented by Alexander Chukwu, said: “We expect to see the birth of new joint ventures and collaboration between Nigerian and Chinese suppliers.”

    He advised the delegates to look beyond the event and take advantage of the opportunity to deploy technologies and solutions that deliver quality services and reduce cost.

    SNEPCo’s Nigerian Content Development Manager, Austin Uzoka, said there were many areas in which Nigerian and Chinese suppliers could collaborate in the oil and gas company and that Shell would continue to provide the required opportunities within its resources.

    The Nigerias also visited some companies, among them, Neway valves, the world largest valve manufacturer, Sulzer Pumps, Hilong and MSP Drillex facilities, to deepen their appreciation of best practices.

    The Chinese suppliers, on their part, obtained guidance on business development and capital investment in Nigeria.

    SNEPCo’s Contracting and Supply team tracked the cost opportunities and work to embed them as part of an overarching cost reduction drive and faster supply chain transactions.

  • ‘How govt plans to get $5.2b World Bank loan’

    ‘How govt plans to get $5.2b World Bank loan’

    The Federal Government  is adopting ‘’home-grown’’ strategy, to seek  $5.2billion loan from the World Bank, the Minister of Power, Works and Housing, Mr Babatubde Fashola, has said.

    He said the loan will be used to improve  electricity generation, distribution and transmission in the country, when finally approved  by the World Bank.

    Speaking at an interactive forum with the media and members of civil society in Lagos recently,  Fashola said the loan will help the economy to recover from its contraction, once it is well utilised.

    Under the terms for seeking the loan,  Fashola said the private sector  arm of  World  Bank would invest $1.3 billion in power projects and electricity distribution companies, while the bank’s political insurer known as the Multilateral Investment Guarantee Agency would provide equity of $1.4 billion for gas and solar power programmes.

    Also, the lender will provide $2.5billion ro improve distribution of power, expand transmission capacity and increase access to electricity in  rural areas.

    According to him, the home-grown strategy requires that government present a paper on the problems, inhibiting the growth of  the sector.

    He said the idea has endeared the Federal Goverrnment to the World Bank, which has promised to support the sector financially, when times come.

    He said the bank was impressed   that the government understands the peculiarities and the magnitutude of the problems facing the industry and the capacity to proffer solution to them, when the matter was tabled before it.

    Fashola said: “The home-grown initiative has paid off, as the World Bank was satisfied with the level  of  understanding of the challenges in the sector by the Nigerian government and has in the process  promised to support the Nigerian  govenment on the issue. The bank  told the government that it knows the problems facing the sector and that it would not be out of place, if the government is left to provide a home-grown soution to the problems. It is on the basis of this that the government hopes to get the needed loans for the sector soon.”

    He said the government  hopes to continue to leverage on its understanding of the probelms in the industry to get the World Bank loan.

    According to the minister, prior to  meeting the World Bank on the issue, he, the State Minister of Power and the Permanent Secretary in the ministry met and asked questions on the probelms inhibiting the growth of the sector and how to solve them.

    “After seeking the inputs of other stakeholders in the value chain, we arrived at the conclusion that the sector has not delivered on its promise, four years after it was privatised. Everbody knows that the power distribution companies (DisCos) are facing problems such as shortage of meters, huge bills, among others. They know that the DisCos do not have enough money to provide meters, transformers and other equipment needed to supply power to the customers. They know that the sector has not delivered on its promise, since privatisation,” he added.

    Fashola said the government, armed with these information presented them to the World Bank.

    He said the issue of understanding the structures of World Bank, is another factor that the government is banking on to get the loan.

    He said, prior to the evolvement of home-grown method, the sector held a wide consultation with stakeholders, including the government.

    He said through the consultation, stakeholders were able to understand the peculiarities and magnititude of the problems in the electricity industry, adding that the development has helped the sector to provide a formidable force to the World Bank on the issue of accessing  the loan.

    ‘’ Our knowledge of the industry is one thing that has endeared us to the World Bank. The bank has promised to assist us financially, after seeing the level of our understanding,’’ Fashola said .

    According to him, the government knows that it is only the private arm of World Bank that can easily provide loan to the power sector and, did not waste time in approaching the section for the $5.2billion loan.

    The minister assured that the government would get the loans for the power sector, as its able to provide strategies that cannot be easily ignored by the bank.

    Fashola said the power generation companies (GenCos) are planning to leverage on solar to improve electricity supply to customers.

  • Reasons for $600m investments in solid minerals

    The Federal Government is planning to invest $600 million in solid minerals sector, in order to deepen exploration activities, the Minister, Mines and Steel Development, Dr Kayode Fayemi, has said.

    Other reasons, he said, include the need to deepen the knowledge of practitioners in the Nigerian mining space, explore both old and green fields, and firming up the relationship between miners and the Nigerian Mining Geoscience Society (NMGS), in order to ensure that the solid minerals reforms are sustainable.

    The government is also planning to facilitate a Memorandum of Understanding (MoU), between Nigeria and highly advanced mining countries such as Australia, China, Morocco, South Africa and Britain, with a view to encouraging capacity building and exchange programmes, among the affected nations, he said.

    Speaking at the 2017 edition of the Nigerian Association of Petroleum Explorationists (NAPE) Conference in Eko Le’ Meriden Hotel, Lagos recently, Fayemi said the government has also provided N5 billion loan for artisans and miners, as part of efforts to encourage the growth of the sector.

    He said the development became necessary in order to fully harness the potentials in the sector for improved economic growth, adding that the sector is key to the economic diversification programmes of the government.

    He said the government is not leaving any stone unturned to maximise the gains of the sector and further move the economy forward. He spoke on the topic:  Exploitation of Nigeria’s Mineral Resources: Hope for Economic Diversification.

    He said the sector has immense potentials, stressing that the development informed the decision of the government to provide funds for the sector.

    Fayemi said: ‘’ We the ( government) have discovered that the opportunities in soild minerals industry  can match that of the oil and gas sector, if they are well tapped. This informed the plans by the Federal Government to create mining investment funds of $600 million for the sector. The government has reached advance stage on the issue of providing the funds. When the funds are ready, they would cater for the needs of those that engage in mining, exploration and allied areas. The government, has also, partnered with the Bank of Industry (BOI) in order to facilitate a mining fund of N5 billion for the use of artisans and small-scale miners in the sector.’’

    He said Burkina Faso spends $400 million annually to search and explore more solid minerals, as against a situation where Nigeria is voting $100million for the same purpose.

    ‘’Nigeria has earmarked about $100 million for exploration activities, being the largest percentage of the money realised so far in the sector. Even at that, Nigeria is behind Burkina Faso and other jurisdictions in this area. For instance, Burkina Faso, is believed to be spending $400 million annually for geological prospectivity, as against Nigeria, which earmarked about $100 million for the same purpose’’ he added.

  • DisCos, EFCC, others collaborate to fight corruption

    DisCos, EFCC, others collaborate to fight corruption

    The Association of Nigerian Electricity Distributors (ANED), the Economic and Financial Crimes Commission (EFCC), the police and other security agencies, are collaborating to rid the power sector of corrupt officials.

    ANED’s Executive Director, Research and Development, Mr Sunday Oduntan, said the issue had reached an advanced stage, as many workers have been investigated for bribery, stealing, extortion of innocent consumers among other untoward practices, by a highly constituted team set up by the association.

    He said workers that were involved in criminal activities were sacked by their respective DisCos, after they were found guilty.

    Oduntan said: ‘’ Some workers  of the Ibadan Electricity Distribution Company(IBEDC) and other power distribution companies, who are found guilty of grievious offences such as stealing of electricity facilities or money, have been handed over to EFFC for investigation. Also, they have been forced out of the system by their employers. Many of such people would follow suit very soon. The exercise is taking place across the country, as part of efforts to sanitise the sector. We at ANED frown at such practices and have vowed to put a stop to them, hence our decision to set up a team of people that are investigating criminal issues involving workers of the DisCos. The anti-graft agency is complementing our investigation by making the investigation more effective and stronger.”

    According to him, ANED, which is the umbrella body of all the 11 distribution companies is on top of the game, as it gets hints on where such illegal activities are taking place and promptly follow it up, with a view to ensuring justice.

    “If any member of the consuming public is extorted by any of the officials of the DisCos, we would get necessary information on the officials involved, we would report him or her to the DisCo that has employed her. The DisCo in return would carry out its own due diligence on the issue in order to find out whether the allegation levelled on such person(s) are founded or not. We work as a team, as we do not leave any area untouched in our investigation,” he added.

    ANED,  Oduntan said, has visited Abuja, Plateau and other parts of the country, with a view to monitoring the activities of the officials and get reports on their conduct for necessary action.

    He said the issue of sanitising the sector must start in the house first, before it is moved to institutions outside that are aiding corruption, by conniving with workers.

    He said, based on this, the 11 DisCos agreed to rid themselves of unscrupulous workers.

    On debts, Oduntan said the debts owed the power firms by the Ministries, Departments and Agencies (MDAs) are huge, adding that failure of the MDAs to pay back their debts that have accumulated over the years, is a problem in the sector.

    He explained that the inability of the firms to meet their obligations to customers, by supplying them electricity regularly, meters, and other equipment, was a result of the debts.

    The DisCos, he said, were lacking funds to operate, stressing that the issue is telling on their performance.He said this is in addition to the  fact that  power generation is decreasing in the country.

    He said, if the power generation companies (GenCos) produce  enough electricity for the use of the DisCos, the DisCos still need to get funds to procure modern facilities for operation.

    The DisCos need money to replace obsolete equipment with new ones, in order to record optimal level he said.

  • Meter: Don’t blame manufacturers for shortage – Nwangwu

    Meter: Don’t blame manufacturers for shortage – Nwangwu

    The Managing Director of Sebrud Consortiums, Mr Chisom Nwangwu, an indigenous Meter Manufacturing Company, says the prepaid meter producers in Nigeria were not to be blamed for the shortage of the product for electricity consumers in Nigeria.

    Reports said that Nigerians have continued to decry the inability of Electricity Distribution Companies ( DISCOS ) to provide enough prepaid electricity meters for consumers.

    He said that the prepaid meter manufacturing firms had the capacity to meet the demands for the product.

    He also revealed that the Awka-based firm with its 400, 000 installed capacity was ready to work with the 11 electricity distribution companies in Nigeria to help to realise the Federal Government’s objective of having all customers metered.

    “Capacity is not the problem, we are producing and the products are there, we have the capacity to supply whatever is demanded by the distribution companies.

    “All that is needed is for them to contact us and place orders and they will get the meters, we are ready to work with the 11 electricity distribution companies,’’ he said.

    Nwangwu assured Nigerians that the products were of international standard having been approved by the Nigerian Electricity Regulatory Commission ( NERC ) and certified by the Standard Organisation of Nigeria ( SON ).

    According to him, the meters are of high quality and they have passed the Mandatory Conformity Assessment Programme ( MANCAP ) test of SON.

    “They are 100 per cent quality assured with 10-year warranty period, our customer service department is effective,’’ he said.

    NAN

  • CSR: We are committed to host community devt, says NIPCO

    CSR: We are committed to host community devt, says NIPCO

    NIPCO Plc has restated its commitment to host community development as part of its corporate social responsibility (CSR) initiatives, especially in education development through facility upgrade and co -curricular activities in primary schools in Lagos State.

    NIPCO’s Chief Corporate Affairs Manager (CCAM), Mr Lawal Taofeek, stated this in an address at the Lagos State Universal Basic Education Board (SUBEB) Sports Festival /Merit Award for primary school pupils and teachers in Apapa sponsored by NIPCO .

    He said NIPCO has over the years embarked on series of facility upgrade in primary schools in the state, especially in its host communities with Apapa Nursery & Primary School and Ijora Oloye Nursery & Primary schools, being some of the beneficiaries.

    “We see our interventions in education and sports as a social investment, which will pay off greatly in the standards of education and sports development in the local and state levels,”he said.

    According to Lawal, NIPCO has been a consistent sponsor of the event aside from facilitating the inter-house sports festival of its adopted school in the area – Apapa Nursery & Primary School, for years. He noted that the events provide a veritable platform for sourcing young talents that could raise the bar for the local and state governments in sports.

    Lawal, who represented the company’s Managing Director, Sanjay Teotia, at the twin event which attracted large turnout of pupils and teachers, said the sponsorship was  in line with the organisation’s long standing cordial relationship with the community

    “NIPCO places high premium on youth development through sports and good learning environment for pupils, especially at the foundation levels – nursery/primary stages,” Lawal said, adding that it was the zeal for youth development through sports and education that prompted the company to refurbish four classrooms in Apapa Nursery & Primary School and provided furniture and sporting materials to the nursery section of Ijora Oloye Nursery & Primary School.

    According to him, unearthing the budding talents in the pupils through sports is of utmost value to the company as sports play very significant role in the development of the child. He assured the teeming crowd at the event that NIPCO, as a responsible corporate citizen, will continue to associate with sports and education development through appropriate support as occasion demands.

    The Secretary of the State Universal Basic Education Authority (SUBEB), Apapa Local Government Area (LGA), Mrs. Olawepo Fausat, paid  glowing tributes to NIPCO for its consistency in supporting education and sports in the LGA, stressing that its noble gesture is worthy of commendation

    She said the event was organised to further motivate members of staff in primary schools in the area as well as provide avenue for sports development.

  • Chevron contributes $5m to Global Fund to reduce HIV infections in Nigeria

    Chevron contributes $5m to Global Fund to reduce HIV infections in Nigeria

    Chevron Nigeria Limited, (CNL), an affiliate of Chevron Corporation (Chevron), has announced the disbursement of $2.5 million to the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund). The fund will also be used for the implementation of the Chevron-Global Fund Anti-Retroviral Treatment Service Maintenance Programme (ART Programme), in Delta, Bayelsa, Ondo and Lagos states. Next year also, a final installment of $2.5 million will be disbursed to support these HIV programmes, making the total  contribution to $5 million by Chevron.

    These funds are in addition to the $6.7 million earlier donated by Chevron for the Prevention of Mother-To-Child Transmission of HIV (PMTCT) in Bayelsa State.

    “The ART Programme will help bridge a critical national health gap and continue Chevron’s work in achieving an AIDS-free generation. The programne will help reduce new HIV infections and improve the quality of life for people living with HIV and other affected people in the communities of the targeted states.

    “Additionally, it will provide Nigerians with universal access to high-quality, patient-centered prevention, diagnosis and treatment services for tuberculosis, HIV and drug-resistant tuberculosis by 2020,” General Manager, Policy, Government and Public Affairs, CNL, Esimaje Brikinn, said.

    These disbursements are part of a nine-year, $60 million commitment from Chevron to the Global Fund. The Global Fund raises and invests nearly $4 billion a year to support programmes run by local experts to fight the three diseases in countries and communities most in need.

    The Global Fund is one of the world’s largest international financier of health care programmes fighting these three diseases.

    According to Brikinn: “Chevron has learned through decades of experience that our success is tied to the health and prosperity of the communities where we operate. Chevron’s social investments are developed through a participatory process and through partnerships not only with the communities, who are living in proximity to our operations, but also with other stakeholders, who share interests in common with our business (e.g., government, non-governmental organisations (NGOs), non-profits, development agencies, among others.”

    CNL has also committed substantial resources over the years in implementing initiatives aimed at combating several diseases in communities close to its operations and beyond. “The initiatives include River Boat Clinic, building of community health centres, donation of medical supplies and sponsorship of health campaigns,”Brikinn explained.

    The Minister of Health, Prof. Isaac Adewole, thanked Chevron for the gesture and noted that the efforts of the company over the years have exemplified the private sector support for health intervention programmes in Nigeria.

    “We are happy about what Chevron is doing to support government’s efforts in the fight of HIV and other diseases in Nigeria. That is what we have been advocating; that the private sector should show concern about public health issues. Government cannot do it alone, and this support is needed to achieve a healthy society” Prof. Adewole remarked.

    The Global Fund’s Strategy 2017-2022 outlines results targets for the partnership. Programmes supported by the Global Fund will save 14 million lives in the three-year period, beginning in 2017, bringing the total lives saved by the Global Fund partnership to 36 million by the end of 2019.

    Those programmes will also avert up to 194 million new infections or cases of HIV, TB and malaria

  • Refineries: NNPC eyes 445,000 bpd output by 2019

    Refineries: NNPC eyes 445,000 bpd output by 2019

    The Nigerian National Petroleum Corporation (NNPC) will not renege on its plans to return the four state-owned refineries – Port Harcourt 1&2, Warri and Kaduna – to their installed capacity of 445,000 barrels per day (bpd) by 2019, its Group Public Affairs Manager, Ndu Ughamadu, has said.

    According to him, the NNPC inaugurated nine committees on the rehabilitation of refineries last September to achieve the goal.

    The committees, he said,  include rehabilitation; stakeholder management; financing; legal and procurement.

    Others are pipeline, crude oil supply, security, staffing and succession planning.

    According to him, the committees are made up of pragmatic and result-driven persons, adding that they have promised to provide  workable solutions to the problems of the refineries.

    Ndu Ugbamadu said: ‘’While the committee on rehabilitation is headed by NNPC’s Group Managing Director Dr Maikanti Baru, the committee on stakeholders management is being headed by the Chief Operating Officer, Refineries and Petrochemicals, Engineer Aniboh Kragha. The committee on stakeholders’ management deals with issues bordering on the communities, where the refineries are located.”

    He added:‘’The leaders and members of these committees have taken it upon themselves the duty to investigate, analyse and proffer solution to the numerous problems facing the refineries. They hold meeting everyday, including Sundays. As I’m talking,  this Sunday afternoon, the heads of the committees and their members are holding meetings in order to make good of their promise of returning the refineries to optimal capacity, within a timeline of two years ( 2017-2019) given them by the Federal Government.”

    He said the NNPC has mandated the committees to do a thorough job of revving the refineries.

    Ughamadu said the process of returning the refineries to good condition is a long one, stressing that the committees in realisation of this fact, are taking their time to do a good job.

    The committees, Ughamadu said, are expected to submit reports of their activities to the NNPC’s GMD, Dr Baru, for their next line of action.

    He said the NNPC is not thinking of penalising any of the committees as they have agreed to do their best on making the refineries work well.

    The country, he said,  would not have any need of sapping crude for fuel by 2019, hence the directive to the committees to return the refineries to their nameplate capacities of 445,000 barrels per day.

    It would be recalled that the Federal Government had sunk billions of naira into turnaround maintenance of the refineries  without tangible results.

    The NNPC, in a recent document, said the four refineries have gulped up to $1.746 billion or N264 billion, when using a 16-year average dollar/naira exchange rate of N150.99 per dollar.

    The $1.746 billion turnaround maintenance investments were different from the $308 million reportedly spent for the same purpose by the military governments of late General Sani Abacha ($216 million) and General Abdusalami Abubakar (rtd) ($92 million).

    To avert waste of funds, the NNPC set up committees to provide modalities on how to make the refineries work. Prior to this, the NNPC unveiled a 2019 target to end the swap of 330,000 barrels daily through Direct Sale Direct Purchase (DSDP) arrangement, a new version of crude-for-product swap.