The Nation Newspaper

Category: Energy

  • Kaduna, others to build solar-powered mini-grids

    Five states are to build solar-powered mini-grids to aid the Federal Government’s efforts at improving electricity generation and supply.

    The states are Kaduna, Imo, Rivers, Delta and Ogun. They are partnering with GreenElec, a France-based solar energy solution provider, for the people.

    Kaduna State Governor, Nasir El-Rufai said at the inauguration of the solar-powered mini-grids in Kaduna that the initiative  would enable communities without access to national grid, to access solar power for improved economic growth. He said the inauguration of a pilot study for the state’s  mini-grids  signifies hope for communities without light.

    GreenElec’s President, Marvel Hochet, in an interview with The Nation in Lagos, said the use of solar-powered mini grids, would help in increasing access to electricity in Nigeria, as well as boost the energy mix initiative introduced by the Federal Government to encourage the use of both traditional and non-traditional means of generating electricity in the country.

    He said pilot studies on the use of solar power on major highways, bridges, and streets have been conducted in Imo, Delta, Rivers and Ogun States, adding that efforts are ongoing to provide solar-powered mini-grids in many communities in the states, which will enable them use solar power for growth.

    He said the firm was developing a mini solar system to provide electricity for medical centres in six local government areas (LGAs) in Ogun State, adding that it is targeting urban communities far from national grid and industrial clusters with banks, hotels, and factories to improve supply.

    He said building mini-grids in the five states would reduce pressure on the national grid, which, according to him, has suffered neglect over time. He said the solar-powered mini-grids would be fitted with panels produced in France, strong batteries, poles and network, among other components, adding that they cannot be broken.

    Hochet said there are about 5,000 people are in each community, adding that the people will be divided into homes to know the number of grids the community will need, before it can access solar electricity.

    “Investigation conducted by GreenElec reveals that a community on average boasts of 5,000 people and that the community would need two solar powered mini grids to function well. A home boasts of five people and when you divide it by 5,000 people, you will have 1,000 homes. A mini grid will serve 500 homes, while two mini grids would take care of 1,000 homes,” he said.

    According to him, there are at least 10 communities in each of the states, which are not connected to the grid, adding that the development means that the states would spend a lot of money to provide the grids for their people.

    He said a greater percentage of people in rural areas were unable to access power, stressing that their problem would be over soon.

    On cost of the grids, he said it costs a lot of money to produce and fix a mini-grid, adding that it is only the government and other high net worth groups that can bear the cost. The country is facing problems such as poor generation and supply of electricity, a development, which made the government to advocate for the use of renewable energy sources.

    The National President, National Association of Energy Economists (NAEE), Prof Wunmi Iledare, said themajority of Nigerians still lack access to electricity. He said 45 per cent of the 170 million Nigerians do not have access to the national grid, while the remaining 55 per cent can make do with little or no electricity.

  • SNEPCo trains medical workers in emergency care

    SNEPCo trains medical workers in emergency care

    Shell Nigeria Exploration and Production Company (SNEPCo) has facilitated the training of medical workers from hospitals in Anambra State on emergency resuscitation, delivering a critical component of its commitment to providing skilled and timely response to emergencies in the state.

    The training of the 70 workers on Basic Life Support and Advanced Cardiac Life Support which took place at the Iyi-Enu Mission Hospital, Ogidi, according to Shell’s spokesman, Bamidele Odugbesan, was delivered by Emergency Response International, a body accredited by the American Heart Association for this specialised skill building.

    “SNEPCo is pleased to carry out these important trainings in Anambra State,” said Regional Community Health Manager, Dr. Akin Fajola. “Timely response to emergencies is a matter of life and death, and even then, deploying an unskilled medical staff to an emergency is itself an emergency. We now expect the 70 skilled responders to positively impact their areas of work in the state.”

    Speaking at the graduation ceremony, the Commissioner for Health in Anambra State, Dr. Josephat Akabuike, thanked SNEPCo for helping to save lives in medical emergencies by improving the skills of healthcare professionals.  A participant at the training, Dr. Nathan Elochukwu Ojekwu, said: “This initiative requires a lot of resources, but SNEPCo did it for free. I promise to put this training to good use by saving lives.”

    The training is a key aspect of the intervention of SNEPCo – with the active support of the Nigerian National Petroleum Corporation (NNPC) and co-venture partners – in strengthening the quality of healthcare services at the Iyi-Enu Mission Hospital and emergency skills in Anambra State, which began in 2013. The intervention has also seen the commencement of breast cancer and dialysis services and the donation of medical equipment worth over N120 million.

    In addition to the project at Iyi-Enu Mission Hospital, SNEPCo developed the capacity of health workers in seven states in the South West and South South regions, and supported the BEARS Foundation for the repair of congenital cleft lip and palate. Late last year, thousands of residents in Lagos benefitted from a health outreach organised by SNEPCo, which offered free medical services and education at strategic areas in the mega city.

    In the past four years, SNEPCo worked with an NGO (Extended Hands) to undertake corrective surgery and treatment of over 150 women suffering from Vesical Vaginal Fistula (VVF) across the six geo-political zones.

  • Minister woos multinational firms to boost investment

    Minister woos multinational firms to boost investment

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, is engaging international oil companies (IOCs) to deepen investment in the oil and gas industry.

    In one of such investment drives to ExxonMobil headquarters, Kachikwu had a robust discussion with top executives of the oil firm. He praised ExxonMobil for its enduring partnership with Nigeria which has grown stronger over the years.

    According to the Director, Press, Ministry of Petroleum Resources, Mr. Idang Alibi, the minister restated the Federal Government’s efforts aimed at reducing importation of petroleum products.

    The effort will be boosted if major IOC partners operating in Nigeria invest in building signature refineries to be run on joint venture basis with the Federal Government providing the necessary incentives, he said.

    Reiterating the gains that have been made through the signing of the repayment agreement for the Joint Venture cash call in 2016, Kachikwu further clarified that the initial payments to IOCs would be made by the end of this month, and that it would be expedient if the IOCs reciprocated the Federal Government’s gesture and commitment by ensuring that they ramped up investments in the industry.

    He also encouraged ExxonMobil to invest in more practical deliveries in human capital development and investment in local growth of skill sets required in the industry.

    ExxonMobil recognised the valued partnership with Nigeria and noble work of the minister to ensure the development and growth of Nigeria’s oil and gas industry. ExxonMobil also reiterated its commitment to help deliver power to Nigeria and support the gas commercialisation programme of the Ministry Petroleum Resources.

    Alibi said the meeting was part of the ongoing investment drive initiative embarked on by the Minister of State to International Oil Companies, adding that the first of these was with Italian IOC giant, Eni, in January 2017 where the Italian firm pledged to work with Nigeria to revamp the Port Harcourt Refinery. Other IOCs scheduled to be visited include Shell, Chevron and Total.

    In furtherance to this, the minister will be would be leading the country’s delegation to the Offshore Technology Conference (OTC) in Houston, Texas in May 2017 with the objective of ‘showcasing the opportunities, processes & reforms in Nigeria’s oil and gas sector.’

  • NLNG chief now NESG board member

    NLNG chief now NESG board member

    The Managing Director and Chief Executive, Nigeria Liquefied Natural Government (NLNG), Mr. Tony Attah, has been appointed to the Board of the Nigerian Economic Summit Group (NESG).

    NESG is a leading private sector Think-Tank and Policy Advocacy Group committed to the development of a modern globally competitive Nigerian economy

    The group is the convener of the Nigerian Economic Summit, an annual event and a platform for Chief Executives and experts from the public and private sectors to brainstorm and build consensus on policy options and implementation frameworks.

    The NESG engages government, the private sector and civil society on key development issues and economic policies in Nigeria. The strategic roles of the group include those of being a dialogue partner, shaping policy through public debate, instituting change through influence, shaping policy through research and advocacy, and instituting change through influence that mobilises action.

    According to NLNG spokesman, Kudo Eresia-Eke, Attah brings with him, over two decades of oil and gas industry experience to the NESG Board. Before his appointment as NLNG chief executive in September 2016, he was the Managing Director and Board Chairman of Shell Nigeria Exploration and Production Company (SNEPCo), Vice President Health, Safety and Environment (HSE) and Corporate Affairs, Vice President Human Resources (HR) as well as other technical & non-technical roles in operations and major projects at Shell.

    Over his distinguished career across Europe, Russia and Africa, Tony has led multi-disciplinary teams across diverse cultures. He is recognised for his strong strategic and commercial mind-set which is underpinned by a solid technical background and excellent leadership capabilities. He is a member of Council for the Regulation of Engineering in Nigeria (COREN) and Society of Petroleum Engineers (SPE), and a fellow of the Nigerian Society of Engineers (NSE), Eresia-Eke aadded.

  • SON to shut sub-standard LPG storage tanks

    SON to shut sub-standard LPG storage tanks

    The Standards Organiastion of Nigeria (SON) has warned owners of uncertified Liquefied Petroleum Gas (LPG) storage tanks across the country to get the standardisation and certification of the facilities or have them shut down.

    SON has in view of the warning, given a two-week ultimatum to all owners of such LPG storage tanks nationwide to begin the process of SON certification or have the tanks dismantled.

    A statement from the office of SON Director-General, Mr. Osita Aboloma in Abuja, stated that the organisation has since observed and is worried by the sharp rise in the installation of LPG storage tanks in petrol filling stations across the country, many of which could not provide evidence of SON certifications of the vessels.

    The SON chief has, therefore, directed all officers of the organisation to intensify the surveillance of all installed LPG storage tanks in their areas of coverage to ascertain those that have undergone SON certifications before installation as required by the Department of Petroleum Resources (DPR) regulation.

    Aboloma stated that all imported and locally fabricated LPG storage tanks are required to undergo SON certification to assure conformity to the requirements of Nigeria Industrial Standards (NIS) 419:2000, specification and testing of unfired pressure vessels for the storage of liquefied petroleum gas. These according to him, include safety and performance requirements.

    According to the SON chief, locally manufactured vessels are required to undergo certification under the SON Mandatory Conformity Assessment Programme (MANCAP), while imported vessels are required to undergo the offshore Conformity Assessment Programme (SONCAP) certification.

    He appealed to the public to be vigilant and report any installation of LPG storage tanks in their vicinity to the nearest SON office for verification of compliance to standards requirement in the interest of public safety.

  • Local content impaired by non-passage of PIB

    Local content impaired by non-passage of PIB

    The Nigerian Content Act is being impaired by the non-passage of the Petroleum Industry Bill (PIB) that was supposed to be a veritable complement to the local content and also ensure the success of vision 2020, the Managing Partner, J.O Adidi & Co, John, has said.

    The PIB was  designed  to complement the Nigerian Content Act in 2010. It was meant to drive the vision of the Nigerian Content Act. However, the Nigerian Content Act has since been passed while the PIB, which should complement it is yet to see the light of the day.

    Local content is about local capacity development and transfer of technology to ensure that Nigerians participate effectively in the oil and gas industry and also enable new investments to come in.

    John Adidi said it was only when new investments come in and jobs are created that local content could be effective. According to him, these new investments are not coming in because of lack of clarity and certainty in the laws guiding the oil and gas operations.

    As a result, local content was being disadvantaged. He recalled that PIB started in the year 2000 when the Nigerian Oil and Gas Sector Reform Implementation Committee (NOGIC) was inaugurated.

    According to him, that committee produced what was called the National Oil Policy. That policy covered all the aspects of the petroleum sector including the upstream, downstream, gas, petrochemicals and many others.

    Adidi said several versions of that bill were produced including Senate version and the inter-agency  version; at least about five different versions of the bill were produced blaming it on the general problem of the country.

    Speaking with The Nation on telephone, he said the PIB needed to recognise Nigerians that should be protected against the operations of the international oil companies (IOCs). Owners of marginal fields need to be protected because they don’t have the financial muscle, he said, adding you cannot be talking about local content when you cannot encourage the development of your little players.

    He stated that the only way that can be done is to give marginal field players some little incentives over and above what are given to the IOCs. “So they need the protection of the law and that law is not there. Local content cannot be said to be effective when local players are not there and the law that should give them that muscle has not been passed.

    “Let there be laws because oil and gas is a long term investment. You need the laws so that Nigerians who have the money seeing the laws and incentives, opportunities, and the environment, will venture into oil and gas and own oil blocks,” he added.

  • Nigerdock delivers fabricated structures for Egina FPSO

    Nigerdock delivers fabricated structures for Egina FPSO

    • Firm rebrands training, development academy

    Leading indigenous energy services company, Nigerdock, has successfully fabricated and loaded out structures for the Total operated Egina Floating Production, Storage and Offloading (FPSO) vessel.

    The structures were fabricated at Nigerdock yard located at Snake Island Integrated Free Zone (SIIFZ) Lagos, by the company’s professionally-trained Nigerian workforce. With the completion and load out of the structure, Nigerdock has done a substantial tonnage for the floating vessel surpassing other energy services providers locally.

    The structures include the Riser Porch, Flare Tower, Helideck, Protection Structure, Access Tower, Crew Boat Bathing, Crane Pedestal, Telecom Mast, Living Quarter Blocks, Laydown Area Blocks, Muster Station, Work Boat Structure, and Vertical Caissons, among others, with a combined weight of 7336 tonnes, were loaded out in phases at Nigerdock’s industry facility, renowned as West Africa’s largest shipyard.

    Nigerdock fabricated and loaded the 732-ton Flare Tower Structure for the Egina FPSO in March last year, which sailed away to Korea for initial integration of the fabricated structures onto the FPSO.

    Speaking at the loadout ceremony of the structures, Group Managing Director, Jagal Energy, Chris Bennett, praised the management and staff of Nigerdock for their contributions towards the accomplished project. He said the timely delivery of the fabricated structures for Egina FPSO was another significant achievement and boost to the local content initiative in Nigeria.

    “Nigerdock remains the foremost local content champion, committed to the vision of building the country’s local capacity and delivering value to the economy. Our capacity and capabilities have been reaffirmed through the success of Egina FPSO Project. It gives our clients and the government a measure of confidence, trust and reassurance that Nigerdock, can operate with global best practice.

    “We continuously set the highest standards, which is why we have recorded a series of firsts in the industry. Remarkably, these projects were executed in Nigeria without any lost time injury (LTI), which compares with best in class in Europe and America,” he said.

    A prime advocate for developing Nigerian Content, Nigerdock epitomises the values of the Nigeria Oil and Gas Industry Content Development (NOGICD) Act 2010, which emphasises the development of local skills, technology transfer, local manufacturing and use of local manpower to upgrade Nigeria’s manpower capacity, with results that benefit the government, private companies, and Nigeria’s economy.

    The FPSO is being developed for deployment in the Egina Oil field, located 150km off the coast of Nigeria. The field is currently under development and production is scheduled to begin in 2018. Nigerdock was selected by Samsung/ Total for critical in-country fabrication works and training services as the provider of choice.

    Also Nigerdock in line with its commitment to enhance Nigeria’s local capacity and provide competent indigenous workforce for the energy services sector, unveiled its re-branded Training and Development Academy, the foremost indigenous institution offering the highest quality and competence needs-based training for its workforce and clients in the sector.

    The fully-equipped academy, which was unveiled last week, is a globally recognised centre that has been training tradesmen and professionals for over three decades, recording over 6,000 trainees in various skills including project management, quality assurance, occupational health and safety, welding, fitting, painting and coating, machining, lifting, rigging and scaffolding, among others.

    Representatives of the Nigerian Content Development and Monitoring Board (NCDMB), Oil and Gas Trainers Association of Nigeria (OGTAN), Nigerian Institute of Welding (NIW), International Oil and Gas Companies (IOCs) as well as business partners, graced the occasion and commended Nigerdock for its consistent efforts to bolster local content and put Nigeria on the global map in terms of complex oil and gas projects delivery.

    Group Corporate Affairs Director, Jagal, Joy Okebalama, noted that by re-branding the centre, the company will be able to replicate its excellent quality footprints in the industry. It will also be able to increase its accreditation portfolio, enable partnerships with relevant public and private organisations, equip Nigerian youths with skills for employment and life and will ultimately be franchised across Nigeria with the bid to offering internationally accredited qualifications in various disciplines.

  • Govt owes multinationals $10b in crude oil over-lift

    Govt owes multinationals $10b in crude oil over-lift

    • ‘Debt major investment disincentive’

    The Federal Government through the Nigerian National Petroleum Corporation (NNPC), is owing International Oil Companies (IOCs) about $10 billion in unpaid crude oil over-lift bills, The Nation has learnt.

    The huge debts build-up in the last few years, were as a result of  over-lifting of crude oil due to the government as royalty from the oil fields. It was learnt that the NNPC that superintends government’s interests in these oil acreages, often comes to these facilities with vessels to lift crude with a promise to reconcile the transactions with the operating companies, but in most cases, it never did.

    A source who spoke on condition of anonymity, said the oil majors in Nigeria have been battling this problem over the years, saying the worrisome aspect of the issue is that the crude oil being lifted comes from oil fields developed under the Production Sharing Contracts (PSCs) arrangement.

    Under this arrangement, the oil firms bear the total risk of exploration and development. When the field begins production the oil firm, depending on agreed terms, pays royalty to the government with oil. The royalty oil is the quantum of oil allocated to the NNPC that will generate proceeds equal to the actual royalty payable each month and the concession rent payable each year.

    The source stated that in the PSC arrangement, government and operating companies committed to settling any issue that may arise through an arbitration panel where three lawyers would be present each representing the government or NNPC, the oil firm and, the remaining, an independent lawyer.

    He said the government always abandons the decision of the arbitration panel and goes to a local high court to get judgment in its favour. “This is bare-faced bullying. How can the government flagrantly disregard contractual agreements, send a vessel to lift oil without considering the operator of the asset. They (government) will ask you to go to arbitration and will refuse to abide by the judgment of the arbitration panel.

    “This attitude of the government is a major disincentive to investment in the oil and gas industry. Imagine where a company sources funds, takes the entire risk of exploration and if eventually oil is found, takes the entire risk of developing the field in challenging environments such as deepwater. This happens only in this country and I must let you know it is a major constraint to attracting global investible funds into this country.

    “We all know other existing challenges in operating in this environment such as militancy, joint venture funding issues and the current state of the global oil industry. We hope this administration will address this issue of crude over-lift, among other problems,” the source said.

    When The Nation contacted the Group General Manager, Group Public Affairs Division of NNPC, Mr Ndu Ughamadu, for comments, he said the issue was channelled to the appropriate department of NNPC for response and the division said it is untrue. He said: “The appropriate unit said it is not true.”

  • LADOL, Immigration to check influx of expatriates

    LADOL, Immigration to check influx of expatriates

    Lagos Deep Offshore Logistics (LADOL) and the Nigerian Immigration Service (NIS) are seeking ways to curb influx of expatriates into the oil and gas free trade zones across the country.

    The development resulted in a meeting between the Nigerian Immigration Service and LADOL management in Lagos. The discussion centred on how to improve the operation of the nation’s oil and gas by improving indigenous participation in the sector.

    The Nigerian Immigration Service, Comptroller General, Mohammed Babandede, said the command would help in promoting the participation of Nigerians in the energy and other sectors.

    He said NIS would tighten its noose on Oil and Gas Free Trade Zones (FTZs) to make it difficult for expatriates to unduly come into the zones.

    He said the body has decided to embark on strict monitoring of the zones after seeing the job potentials in some of the Oil and Gas Free Trade Zones in the country, especially LADOL Free Trade Zone.

    He said the agency is taking this step  to prevent immigrants or foreigners from taking over some oil and gas jobs, and further promote the local content policy of the Federal Government.

    According to him, it is imperative to look into the activities of foreigners that are coming into Nigeria in order to ascertain their level of fitness.

    Babandede said Nigeria has enough experts to work with, adding that the country should by 2040 be exporting its labour to other countries instead of allowing illegal expatriates to come and take its jobs.

    “The country boasts of experts, mainly graduates that can provide services, hitherto rendered by expatriates.  Technology transfer is stimulating the growth of the economy and Nigeria is benefiting from this idea. NIS, as a service, must assist in providing jobs and safety of the country. Things have changed in Nigeria. Business is not done the way it is being done before.

    “Business is no longer based on corruption.  There is a vision that would take Nigeria to another level. As law enforcement agency, we want to be part of that vision.  We do not want to see ourselves as people who wear uniforms and berets only. We want to see ourselves as contributing to the economic development of the country.  We want to see ourselves as law enforcement agents that would provide jobs and make the society safe,” the NIS boss added.

    He said the Immigration would partner with other law enforcement agents, the management of LADOL Free Zone, technocrats, investors and other stakeholders to protect jobs in the country.

    The Managing Director, LADOL, Ms Amy Jadesimi, reiterated the need to create more jobs in the oil and gas free trade zones, adding it is imperative to move the economy forward.

    She said this can only be possible when foreigners were thoroughly screened before they were allowed into the country, noting that some foreigners do not have the required papers to stay in the country.

    She said the firm has created more jobs for Nigerians than expatriates, adding that LADOL would keep to its vision of providing jobs in the country.

  • Group seeks training to boost local content

    Group seeks training to boost local content

    • To inaugurate NEC today

    The Oil and Gas Trainers Association of Nigeria (OGTAN) has said proper training of Nigerian workers is the only  guarantee toward local content development in the oil and gas industry.

    The OGTAN’s President, Dr.   Mayowa Afe stated this, adding that domestication of oil and gas trainees would save the country billions of dollars and create more jobs opportunities for Nigerians

    Mayowa gave the advice in a statement issued and signed by the OGTANS’ Director of Media Communications, Mr. John Itua, in Lagos to sensitise stakeholders on the forthcoming inauguration of the OGTAN’S national executive council slated to hold on April 13 at Eko Hotel and Suites.

    The Inauguration will have the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) as the Guest Speaker and he will speak on the topic: “Increasing indigenous participation and capacity development in the oil and gas industry – The journey so fa.r”

    The OGTAN chief said: “There is need to standardise training to get more value; training should be domesticated to handle issues that are peculiar to our environment and generate adequate human capital for our oil and gas industry and even enough for export because training is key to local content development.

    “We want to discourage portfolio trainers – people who just walk into companies to organise trainings; invite trainers and after that, walk away,” he said.

    He said OGTAN’s vision is to develop a Nigerian oil and gas training business group that interfaces with the operators, international organisations and government, to ensure a total human capacity development in the industry and the attainment of the Nigerian Content goals. OGTAN was formed with the support of the Nigerian Content division of the Nigerian National Petroleum Corporation (NNPC) to address the manpower development needs of the Nigerian oil and gas industry.

    “If the majority of oil and gas trainees is done locally in Nigeria, it would address issues of foreign exchange challenges confronting the sector.  The issues of foreign exchange should be addressed through domestication of activities.

    “Government agencies, institutions, international oil and gas companies should partner with OGTAN to invest in developing trainers in-country,’’ he said.

    Mayowa noted that OGTAN which is the independent umbrella group of training service providers in the oil and gas sector was established by the Nigerian Content Development and Monitoring Board (NCDMB) Act of 2010.

    According to him, OGTAN represents the Education and Training Sectoral Group of the Nigerian Content Consultative Forum (NCCF) under section 58 of the NOGICD Act 2010, with the purpose to build local human capital capacity in the Nigerian oil and gas industry.

    Mayowa said the association acts as a business group that interfaces with operators, international organisation and the government, adding that national executive council will be inaugurated in Lagos at Eko Hotel on April 13.

    “The Executive Secretary of the NCDMB, Simbi Wabote, an engineer, will be presenting the keynote paper at the event. The Executive Secretaries of the PTDF and NCDMB will be honoured and decorated at the event as strategic partners of OGTAN. This is in recognition of their roles in human capacity development in the oil and gas industry in Nigeria.

    “OGTAN will also be participating in the 2017 Offshore Technology Conference (OTC) to enable our members interact with international training organisations with the aim of partnering with them in other to domesticate  more oil and gas trainings in Nigeria,” he said.