The Nation Newspaper

Category: Energy

  • Shell launches health crusade

    The Shell Nigeria Exploration and Production Company (SNEPCo) has launched its first medical outreach at Gidan Mangoro community of Karu in Abuja.

    Over 4,000 people got medical supplies in five primary schools. This is the latest phase of Shell’s Health-in-Motion programme which was rolled out in the Niger Delta in 2005.

    At the opening  of the two-day event in Abuja, SNEPCo Managing Director Bayo Ojulari said the programme aimed at taking free promotive, preventive and curative health services to the hard-to-reach communities.

    He said: “we hope to be able to support the efforts of government at all levels in providing accessible healthcare to the people.”

    Ojulari, represented by Shell’s Regional Community Health Manager, Dr. Akinwumi Fajola, advised against ignoring early signs of health challenge, which could make it difficult for prompt and effective management by medical officers.

    The Minister of Health, represented by Dr.  Adebimpe Adebiyi, praised the initiative, adding that the Federal Government was willing to collaborate with SNEPCo to take the programme to other communities.

    One of the beneficiaries, Mrs. Iyke Judith, a widow, said: “My heart is full of joy to know that all the services – eyes screening and glasses; drugs; laboratory tests; everything is free.  I am so happy; may God Almighty bless the company. I believe it is because of me that the company came here because I have been sick for some time now especially after my spinal surgery and had no money to visit the hospital.  This programme has just solved my health issues.”

    About 4,224 persons from the community benefited from various health services including include eye, dental, mass deworming, cardiovascular screenings, HIV & malaria testing and breast and cervical cancer screenings services. Three women were treated with cryotherapy.

    On the spot for early stages of cancer of the cervix while 17 women with breast lumps had free mammograms done. 600 people with impaired vision received reading glasses while those requiring further management were referred to the General Hospital Karu.

    The medical outreach was held in collaboration with the Abuja Municipal Area Council (AMAC) and had in attendance representative of the FCT Minister, Dr. Mathew Ashikeni; the traditional ruler of Karu, His Royal Highness, Emmanuel Kyauta Yewp; and Chairman of AMAC, Mr. Abdullahi Adamu Candido.

  • OVH Energy, Interswitch, others partner on fuel retailing

    The partnership between Interswitch, an integrated payment and transaction switching firm, and EVSL, developers of FuelVoucher, in 2015, has been expanded to include  OVH Energy Marketing and other oil marketing firms.

    The distribution network of the electronic fuel purchasing solution was broadened further with the partnership of three oil marketing firms – OVH Energy Marketing, Forte Oil and RainOil.

    The pacts were signed at an event in Lagos, which involved key executives of Interswitch, EVSL, OVH and Forte Oil.

    At the ceremony, OVH Acting Chief Executive Officer Mrs. Olaposi Williams said: “As a customer-focused organisation, we are excited about this initiative as we are constantly seeking new opportunities to provide innovative solutions that offer convenience, flexibility and security for our consumers. With the fuel voucher, our consumers can make purchases with ease at key Oando filling stations nationwide.”

    Interswitch’s Divisional Chief Executive Officer for Industry Vertical Markets, Chinyere Don-Okhuofu, explained the rationale driving Interswitch’s partnership with Fuelvoucher, and the tremendous potential for accelerating distribution of the service offered by the alignment with leading downstream marketing organisations in Nigeria.

    According to her, as a business focused on providing products and services that are highly tailored to the African market, ‘’Interswitch has partnered with EVSL to launch this initiative in line with our desire to develop innovative payment products and services, facilitate transactions and strengthen the Central Bank of Nigeria (CBN) cashless initiative’’.

    Following this alliance, FuelVoucher’s online and mobile fuel purchasing systems have been integrated with PoS terminals deployed by Interswitch to service stations across the country, she added.

    “This initiative will allow consumers to make payments for petroleum products on all Interswitch payment channels including Quickteller, ATMs and Mobile, and vouchers can be redeemed at every petrol station with the Interswitch PoS. As a result, anybody can easily buy fuel, gas or kerosene on-the-go via the FuelVoucher mobile app at any time of the day and FuelVouchers can be remotely sent to friends, family, domestic staff or drivers with ease,” Don-Okhuofu added.

    Essentially, the solution will also enable petrol stations around the country run overnight by mopping up cash and accept Fuel Vouchers thereby eliminating cash handling costs and risks. Because everything is automated and electronic, establishments no longer need to print paper vouchers with associated costs and reconciliation headaches.

    Corporate customers can also broaden their loyalty point’s redemption options to include fuel vouchers, and they can also easily manage and control fuel purchase with analytical insights to help in fleet management.

    This partnership further buttresses the industry leading position of Interswitch on the attainment of a cashless Nigeria through the innovative use of technology. The fuelvoucher solution is currently available across OVH and Forte Oil stations in Lagos, with aggressive plans for national coverage before the end of the year.

  • NCDMB warns against single sourcing, selective tendering

    NCDMB warns against single sourcing, selective tendering

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has warned companies against engaging in single sourcing and selective tendering, stressing that reasons for such decision must be justifiable and discussed with the Board ahead of execution.

    Wabote spoke when he led the NCDMB management to the headquarters of ExxonMobil in Lagos. He also cautioned oil firms against irregular spot hiring and utilisation of vessels under the guise of emergency.

    The NCDMB chief also explained that the visit was in line with the b oard’s efforts to encourage and support operating companies to introduce and execute new projects needed to sustain and grow Nigerian Content in the oil and gas industry. He reiterated the Board’s determination to shorten the industry contracting cycle, which informed the adoption of definite timelines for statutory approvals and pioneering the development and use of Service Level Agreements (SLAs).

    The first SLA was signed between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) and it commits the parties to comply with Nigerian Content Act and timely approvals of documents. The model will soon be replicated with other operating companies, he added.

    Wabote also advised ExxonMobil to begin early to engage the Board on the development of its Owowo field to enhance utilisation of in-country capacities.

    On the status of the Nigerian Content Intervention Fund (NCIF), Wabote said the disbursement to deserving companies was yet to start because the board is working to perfect the governance process, adding that the funds would only be disbursed through a banking process, after proper risk assessments so as to create the needed confidence and trust.

    The Managing Director of ExxonMobil Nigeria, Mr. Paul McGrath, said compliance with the provisions of the Nigerian Content Act is not only a legal and moral obligation for operating and service companies but also a good strategy for improving profitability and sustainability of operations.

    He promised that ExxonMobil will collaborate with the board to achieve its mandate, assuring that “together we can transform things.” He admitted that the company had defaulted in complying with some provisions of the Act in the past.

    McGrath who was appointed in March 2017, assured that the oil giant would henceforth comply with all provisions of the Act alongside associated regulations. He added that the company would also seek the Board’s guidance and assistance when faced with difficulties and exigencies of business.

    “The new leadership has zero tolerance for Nigerian Content violations and non-compliance issues. If we must do, we have to first discuss with NCDMB for guidance,” he said.

    He also underscored the collaboration ExxonMobil had enjoyed from the NCDMB overtime, which contributed to the company’s successes. He pledged the company’s total support for the Board’s initiatives, stating that it is open to staff exchange between the two organisations and is working to open a liaison office in the board’s new headquarters, in Yenagoa, Bayelsa State when completed.

  • NERC to customers: get DisCos’ approval before buying transformers

    NERC to customers: get DisCos’ approval before buying transformers

    The Nigerian Electricity Regulatory Commission (NERC) has warned individuals and organisations against buying and installing transformers  without the approval of the power distribution company (DisCo) that supervises the community, its Head, Consumer Affairs Division, Hardley Jack, has said.

    Speaking at a stakeholders’ forum in Lagos, he said it was wrong for anybody to bypass the laws guiding the operation of the sector as contained in the Act for the privatisation of the power sector by the government.

    He said the sector may be facing problems such as metering, transformers, and other key components, but it did not give customers the right to do whatever they like.

    He said there are laws, which NERC, the Nigerian Bulk Electricity Bulk Trading Company (NBET), the power generation companies (GenCos), electricity distribution companies and other critical stakeholders in the value chain must comply with for the growth of the sector, adding that actions that are contrary to this, amount to disobedience.

    He said the DisCos can solve the metering problems as they affect them directly. He, however, said that gas, power generation and others should be jointly addressed by the stakeholders.

    He said the Commission is flooded with complaints from the customers, just as the DisCos are battling with the same complaints. According to him, DisCos and the customers need to work together to solve problems as partners.

    The Chairman, MEMCOL Nigeria Limited, Mr. Kola Balogun, said the issue of provision of meters can be addressed if stakeholders in the industry are committed to do so. He said the dependence on foreign meter producers by the power firms makes it difficult for many consumers to get meters.

  • Kachikwu lists gains of gas policy

    Kachikwu lists gains of gas policy

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has listed the benefits of the National Gas Policy.

    Kachikwu said the policy would make gas a hub of the economy, stressing the need to have a stream of revenues between petroleum and gas to improve the economy and leverage opportunities in the oil and gas sector.

    He said: “This policy document builds on the policy goals of the Federal Government for the gas sector as presented in the 7 Big Wins initiative developed by the Ministry of Petroleum Resources and the National Economic Recovery & Growth Plan (ERGP 2017 – 2020).

    “The policy articulates the vision of the Federal Government, sets goals, strategies and an implementation plan for the introduction of an appropriate institutional, legal, regulatory and commercial framework for the gas sector. It is intended to remove the barriers affecting investment and development of the sector. The policy will be reviewed and updated periodically to ensure consistency in government policy objectives at all times.

    “The gas policy intends to move Nigeria from an oil-based to an oil and gas-based industrial economy, which will be driven by the core principles by separating the respective roles and responsibilities of government and the private sector, establish a single independent petroleum regulatory authority, implement full legal separation of the upstream from the midstream, and implement full legal separation of gas infrastructure ownership and operations from gas trading.”

    Other benefits include realising more of the liquefied natural gas (LNG) international downstream value, pursue a project-based, rather than a centrally-planned domestic gas development approach and make a strong maintenance and safety culture a priority.

    It will also ensure the implementation of international best practice for environmental protection, establish strong linkages with electric power, agriculture, transport and industrial sectors, establish payment discipline throughout the energy chain, honour stability of contract terms, ensure security of assets and ensure compliance with the Nigerian Content Act.

    The National Gas Policy covers governance (legislation and regulation), industry structure, development of gas resources, infrastructure, building gas markets and development of national human resources.

  • ‘Fed Govt ‘ll boost economy through DSDP’

    The introduction of the Direct Sale Direct Purchase (DSDP) fuel import model by the Federal Government will boost the economy if properly implemented, Prof. Wunmi Iledare has said.

    Iledare, the Vice President, International Institute of Energy and Law,  said the initiative would spur the growth of the downstream subsector of the petroleum industry if the idea is well implemented.

    He told The Nation on the phone that the idea was a temporary measure introduced by the government to ease fuel supply, stating that the government has a long-term plan to fully develop the industry by bringing more investors into it.

    He said: “The government has plans to attract investments into the industry in the future, in order to galvanise its potentials. As part of efforts to achieve this goal, the government has introduced DSDP model through which it would bring foreign crude oil refiners into the country to invest for growth. However, the success of the idea is dependent on the ability of the government to provide infrastructure in the sector. The oil refining companies abroad are exposed to better facilities and would like to work with similar facilities in Nigeria. The government would decide whether it wants the refiners to stay in the country or not.

    “It is a fact that the four government-owned refineries are unable to operate at full capacities, the issue has resulted in poor operation of the refineries and its inability to guarantee supply nationwide. But if the government can implement the DSDP model well by making infrastructure available, which the foreign crude oil refiners would work with, the better for the country.”

    He said the initiative is better than ‘SWAP’ because it would help in attracting investors in refineries into the country in the future. SWAP, which was introduced in order to swap crude oil for petroleum products, has been abandoned by the government.

    On the take-off of DSDP model, NNPC’s spokesman, Ndu Ugbamadu, said he would clarify the time from the management, adding that the decision to implement the idea lies with the government. He said NNPC would leverage the idea to promote investments whenever the government begins the implementation.

    He said the intention of the government was to open its door to investors through DSDP model, stressing that any attempt by the foreign crude oil refining companies to invest in Nigeria, is line with the policy of the government to grow the economy.

    He said the government would not prevent any foreign crude oil refiner that operates under the Direct Sales Direct Purchase import model from investing in refineries in Nigeria, adding that such ideas would help in encouraging economic growth.

    He said the government has been calling for local and foreign participation in the economy, stressing that the oil and gas sector would help in achieving that goal.

    It would be recalled that some local and foreign oil companies have submitted bids in order to be able to operate under the DSDP model. The approval of the bids lies in the hands of the Federal Government, which would allocate crude oil to the winners of the bids whenever the model takes off.

    Through this means the government hopes to lessen the burden of sourcing for fuel abroad and improve the participation of operators at the downstream subsector of the industry.

  • Petralon appoints strategic advisor

    Petralon Energy Limited has appointed Mr. Constantine ‘Labi Ogunbiyi as Strategic Adviser to its board.

    Ogunbiyi founded First Hydrocarbon Nigeria Limited (FHN), where he served as chief executive officer between 2009 and 2014.  Before he started FHN, he served as deputy head of American law firm Cadwalader, Wickersham & Taft LLP’s Africa Practice.

    He worked with the International Finance and Banking Department of Magic Circle law firm, Herbert Smith Freehills for four years; served as an advisor to the Banking Association PPP Unit of the Southern African Development Community (SADC) and also offered strategic advisory services to The New Partnership for Africa’s Development (NEPAD) Business Group.

    He currently serves as Director to Newrest ASL plc and Interswitch Limited and is a Special Advisor to Babban Gona (an agricultural franchise, developed by Impact Investing Firm, Doreo Partners),and several upstream (Exploration &Production) companies, oil services firms, and investment firm in Africa.

    He holds legal certificate from King’s College, London, University of Passau, Germany, and the Oxford Institute of Legal Practice.

    As Strategic Advisor, he works closely with Mr Mutiu Sunmonu, Chairman of the Board and non-Executive Directors, Ms Edith Unuigbe and Mr Aigboje Aig-Imoukhuede.

    Sunmonu has 36-year experience in the oil and gas sector, where he worked with  Shell Petroleum Development Company as Managing Director.

  • Eni seeks less gas flaring in Africa

    A delegation from Italian energy giant Eni, led by Chief Financial Officer Massimo Mondazzi, has made a presentation to the World Bank to reinforce the firm’s continued commitment to sustainable growth.

    Speaking at the World Bank’s headquarters in Washington, Mondazzi underlined Eni’s resilience in the current economic environment, and spoke of the company’s efforts to allow a wider access to energy in the Sub-Saharan region of Africa.

    One of Eni’s key strategies for the region is the World Bank’s Global Gas Flaring Reduction Partnership (GGFR), a public-private initiative involving international and national oil companies, national and regional governments, and international institutions.

    The World Bank Group is leading the GGFR’s efforts to significantly reduce the amount of gas flared globally. It estimates that flaring resulted in the burning of 147 billion cubic metres of natural gas in 2015, a figure that could generate 750 billion KWh of electricity, which exceeds the current annual consumption of the entire African continent.

    Flaring gas wastes a valuable energy resource that could be used to support economic growth and progress. It also contributes to climate change by releasing millions of tonnes of carbon dioxide (CO2) to the atmosphere.

    “Eni is proud to be a member of the GGFR and we have been in the process of reducing gas flaring at our assets. We are committed to achieving zero process flaring by 2025” Mondazzi said.

    The energy giant has cut flaring by about 75 per cent in the last decade and wherever possible, the gas is made available to the local market for electricity generation, providing access to electricity to over 18 million people in Sub-Saharan Africa.

    “The World Bank recognises that Eni is following up its endorsement of the “Zero Routine Flaring by 2030” Initiative with action on the ground, working to use flared gas for power projects and other applications that reduce CO2 emissions. We also appreciate Eni’s push to deploy and integrate more renewable energy technologies into their business model,” said Riccardo Puliti, Senior Director and Head of the World Bank’s Energy & Extractive Industries Global Practice.

  • Danvic centre boosts industry manpower

    To boost skilled manpower in the  industry, Danvic Petroleum Training Centre has traied the first set of geosciences manpower.

    The centre designs a six-month intensive programme for graduates and young professionals of geosciences to acquaint them with practical aspects of the oil and gas industry.

    The six-month course is divided into four modules, comprising general lectures and theory as well as practical sessions taught by practicing geoscientists and engineers from the oil and gas industry. The final module is the industrial attachment, where each trainee joins a group and carries out group project, using industry based software in seismic interpretation, petrophysics, and reservoir modeling, among others.

    After the attachment, the trainees are further deployed to oil and gas firms for one year internship to enable them participate in the execution of practical exploration and production projects.

    Danvic Petroleum International Corporation, Managing Director/Chief Executive,  Dr Mayowa Afe, said it was a step towards the realisation of the dream and vision of establishing a full-fledged private oil and gas university that would complement government efforts. The centre would also help to provide the necessary manpower for the oil and gas industry not only in Nigeria, but across the Africa and thereby increase indigenous participation in the oil and gas industry, he added.

    Afe observed that recent geosciences graduates from some of the universities were lacking in the necessary skills and exposure that could guarantee their employability in today’s multi-task world class geosciences environment.

    According to him, this development has over the years and before the advent of the local content policy, led to many international oil and gas companies (IOCs) operating in Nigeria go abroad to recruit personnel for jobs in Nigeria, or at best go to foreign universities in United States (US), United Kingdom (UK) and Europe to recruit privileged Nigerian students studying abroad at the detriment of their colleagues in Nigerian universities.

    Afe told The Nation in Lagos that the Centre was set up with the aim of bridging the gap between the university theory and the oil and gas practical knowledge requirements. This, he said, would ensure the employability of the Nigerian graduates from the geosciences disciplines and advance the local content policy objectives in the oil and gas sector. He stated that all the graduating trainees had already been fixed and accepted to carry out a year internship programme with various oil companies to execute the practical exploration and production project.

    He said: “The plan is that at the completion of this one year internship programme, all these trainess would be industry ready, and will be gainfully employed thereafter,” adding that before their acceptance in the various oil and gas companies they were rigorously interviewed and found worthy of employment.

    Afe, who is also the president, Oil and Gas Trainers Association of Nigeria (OGTAN), noted that global demand for hydrocarbons was constantly growing yet the oil and gas industry was facing challenges such as discovery of new reservoirs and better understanding of the architecture of existing reservoirs in order to optimise their development.

    “In view of these challenges, Danvic Petroleum School in the nearest future would go beyond the petroleum geosciences programme and expand to include petroleum engineering,” Afe said, adding that the Centre would continue to train students in new concepts, new technologies such as industrial software, entrepreneurship and leadership skills as well as organising appropriate field trips to fully equip them for the future.

  • Eko DisCo meters industrial customers

    Eko Electricity Distribution Company Plc (EKEDC) said it has metered all maximum demand (MD) customers within its network in line with the directive of the regulatory body, Nigerian Electricity Regulatory Commission (NERC).

    Maximum demand customers are huge electricity consumers such as industrial and some commercial concerns. Distribution companies realise substantial part of their revenues from these customers.

    EKEDC Chief Operating Officer, Mr. Sam Nwaire, who disclosed this during a Town Hall meeting held recently  with customers at the Agbara/ Badagry Business District Area in Lagos, said the firm has metered 6,834 MD customers within its network.

    The NERC on June 11 directed all electricity distribution companies to meter the MD customers and directed all MD customers that  have no meters to stop paying estimated bills.

    Nwaire said the company had completed metering all its MD customers since March 31 within the stipulated time frame. He said the company had metered about 50 per cent residential customers, adding that the company will meet its five-year metering plan when all categories of customers must have been metered.

    He confirmed that residential consumers were not included in the directive issued by the NERC on no meter no payment directive. According to him, the clarification was necessary because some customers claimed that NERC directed all consumers yet to be metered to stop paying electricity bills.

    He said: “We are happy to report that our maximum demand customers have been provided with meters as directed by NERC and are no longer billed by estimation. While we are making concerted efforts to provide meters for all our customers, we will continue to ensure the integrity of our bills and do everything within our mandate to comply with all NERC directives.

    “We, therefore, urge our non-MD customers to please avail themselves of the content of the directive and be rightly guided. Consumers should not misinterpret it to avoid paying for electricity already consumed.”

    Nwaire promised that all unmetered customers would be reached within the stipulated time, noting that it was not possible for all customers to be metered at the sametime because of the huge cost involved. He urged those yet to be reached in the meter roll-out to exercise patience, adding that no customer would be left out at the end.

    He also said Eko DisCo has an established billing methodology approved by the industry regulator for billing unmetered customers, based on a number of factors, which include the customers’ consumption pattern over time and availability of power supply within the particular month for which the customers were billed.

    The EKEDC boss urged communities to be vigilant and guard against activities of vandals in their areas. He said the company would work  with the police to ensure that the suspects and others are duly prosecuted in court.

    Nwaire said the company was only able to recover N4.8 billion out of N6.3 billion owed by customers for the month of May, adding that customers are yet to pay over N1.5 billion, which was part of the electricity consumed in May 2017.