The Nation Newspaper

Category: Energy

  • BEDC restores power to Ogwashi-Uku seven years after

    Ogwashi-Uku, the headquarters of Aniocha-South Local Government area of Delta State, was aglow at the weekend with the restoration of electricity in the area, by the Benin Electricity Distribution Company (BEDC) after seven years of power cut from the national grid.

    According to BEDC, the power supply will be extended to all residents of Ogwashi-Uku in due course as more transformers will be installed and energised in the next few days as enumeration revalidation, network rehabilitation and safety checks continue in earnest.

    The restoration process started with a town hall meeting organised by members of Ogwashi-Ukwu D-Forum in collaboration with the management of BEDC led by the Chief State Head (Delta), Mr. Ernest Edgar, the Business Manager, Asaba Business Unit, Adekola Abiodun and his technical team, among others.

    The town hall meeting, which had in attendance delegates from the various quarters and sub-clans that make up Ogwashi- Uku and environs, was meant to brief the residents on the extent of job done so far,  which include the completion of re-enumeration in some areas, the installation of transformer statistical meters as initiated by the company at no cost to the community.

    Edgar expressed shock at the level of vandalism of the network in spite of rehabilitation work carried out by BEDC in June 2016 and pleaded with the community leaders to work with the company to educate the public on the need to protect the equipment.

    He further emphasised the need to re-orientate and sensitise the residents through safety lectures as delivered by BEDC Safety Manager, Mr. Gilbert. Nweke who enlightened the delegates on basic safety tips to be disseminated to their people in readiness for the gradual restoration of power in phases to the various areas.

    The Director-General of D-Forum Pastor Joseph T. U. Nwadiashi while acknowledging the meters, praised BEDC for keeping fate with the community in line with Nigerian Electricity Regulatory Commission’s (NERC) directive after many years of waiting. He pleaded that the company should keep to its promise of ensuring that within a short period all parts of Ogwashi-uku will be supplied with electricity.

    Edgar also seized the opportunity to educate the people of Ogwashi-Uku on the NERC directive on the methodology for estimated billing, said  that individual estimated bills would be delivered to each customer based on the global readings from the statistical meters installed on each transformer feeding the respective customers connected to the same transformer.

    He explained the “Weighted Average Cluster load” approach and urged for cooperation with the enumerators currently carrying out revalidation and load audit as customers were under-stating their load capacity and in some cases out-rightly refusing access to the enumerators to assess their homes.

  • OPEC secretary discusses enhanced cooperation with IEF

    OPEC secretary discusses enhanced cooperation with IEF

    The Secretary-General of Organisation of Petroleum Exporting Countries (OPEC), Mohammad Sanusi Barkindo, has met with the Secretary- General of the Riyadh-based International Energy Forum (IEF), Dr. Sun- Xiansheng, to discuss enhancing fruitful cooperation between the two bodies.

    The meeting held at the OPEC Secretariat in Vienna, Austria, enabled the two bodies to discuss specific ways of deepening the strong relationship and shared activities. These included joint participation in various upcoming events and multilateral fora.

    Barkindo extended an invitation to Dr. Sun Xiansheng to attend the OPEC-China energy dialogue, to be held in China in April, and the OPEC-Russia energy dialogue, expected to be held in June as a guest of honour.

    “It would be important that the IEF participates,” Barkindo said. “It is the essence of the IEF to bring all parties, producers and consumers, together in the interest of sustainable stability in the oil industry and the global economy.

    “You have an important role to play,” he said. “It would be good if our joint cooperative efforts can be made manifest here,” he added, in line with the spirit of the 2010 Cancun Declaration, which encourages consumer-producer dialogue.

    OPEC and the IEF already collaborate on the IEF-OPEC-IEA Symposium on Energy Outlooks, the Joint IEA-IEF-OPEC Workshop on the Interactions between Physical & Financial Energy Markets, the IEA-IEF-OPEC Technical Meeting on Advancing the Comparability of Energy Outlooks, the IEA-IEF-OPEC Annual Symposium on Gas and Coal Market Outlook and the Joint Oil Data Initiative (JODI).

  • ‘Nigeria has capacity to produce 2.2m bopd without Bonga’

    Nigeria will be able to produce 2.2million barrels of oil per day (bopd), even with the shutdown of Shell’s 225,000 bopd Bonga oil field and Forcados terminal, industry stakeholders have said.

    The stakeholders, including the Chief Operating Officer, First Exploration and Petroleum Company, Dr Saka Matemilola, and the Chief Executive Officer, Abuja Power Station, Mr. Jameel Jammal, said with sustainable peace in the Niger Delta, oil production will go up rapidly.

    Matemilola said the country can produce 2.2million bopd, despite the fact that  its output has dropped to 1.875bopd from 2.1 million bopd, following the decision by Shell to shut down its Bonga field in order to carry out a maintenance check on the facility.

    He said once stakeholders including the Federal Government are able to guarantee peace in the region, the country would not have problem in increasing its oil production and exports.

    According to him, production disruption at Bonga cannot hinder Nigeria from increasing its oil output. He  added  that a sustained peace initiative in the Niger Delta, is what Nigeria needs to achieve growth in the petroleum sector.

    He said Shell decided to shut down the two facilities temporarily for strategic reasons, stressing that Nigeria has the capacity to increase its oil output considerably, whether Shell resumes activities in the two facilities or not.

    Matemilola said: “The problem in Bonga is short-termed, which means that solution can be proffered shortly by Shell. Had it been that the problems affecting the two facilities are major ones, I would have said that more time would be required to fix the problem.

    “It is not that Shell does not want to fix the Forcados facility. It is afraid that the facility may be bombed again. Considering the cost of repairing such a big facility, it does not make economic sense to fix it immediately it is attacked.’’

    Matemilola, who is also, the Chairman, Society of Petroleum Engineers of Nigeria (SPE-Nigeria), said Shell can complete the turnaround maintenance in the Bongo’s oil field within a short period. According to him, resumption of production activities in Bonga’s oil field would happen very soon in view of its contribution to the country’s oil output.

    Also, Jammal said a sustained peace initiative and a friendly operating environment is what Nigeria requires to produce 2.2million bopd or more in order to re-establish its position as the largest oil producer in Africa. He said the country can produce 3million bopd, provided the right environment is in place.

    “While it is regrettable that the country’s oil output has dropped to 1.875million bopd, following Shell’s decision to carry out turnaround operation on its Bonga field, Nigeria can make up for the loss and even surpass 2.2 million bopd without relying on production from Bonga, he said.

  • NCDMB benchmarks deepwater projects on Total, LADOL record

    NCDMB benchmarks deepwater projects on Total, LADOL record

    The Nigerian Content Development and Monitoring Board, (NCDMB), has directed international oil companies (IOCs) and promoters of new deepwater projects in Nigeria to exceed the benchmark attained by Total Exploration and Production Nigeria Limited.

    Lagos Deep Offshore Logistics Base (LADOL), is fabricating and integrating part of Total Egina field’s floating production, storage and offloading (FPSO)  vessel at its yard in Lagos.

    The Executive Secretary, NCDMB, Simbi Wabote, who spoke in Lagos after inspecting facilities of Samsung Heavy Industries (SHI), the main contractor for the Engineering, Procurement, Construction and Installation (EPCI) of the FPSO scope on the Egina project at LADOL base, said IOCs and promoters of new deepwater projects in Nigeria should deliver Nigerian Content milestones that would exceed in-country integration of FPSO platforms. This is because Total Nigeria’s Egina deepwater project, which will be integrated at the LADOL Free Trade Zone, has become the benchmark for Nigerian Content on deepwater projects, hence forthcoming projects have to break new records, he added.

    He said in-country integration of the FPSO and fabrication of six modules of the vessel created, 5000 direct jobs and 5000 indirect jobs. Increased domiciliation of future FPSO projects through the fabrication of more modules would create additional jobs, estimated to reach 30,000, he added.

    According to Wabote, the Board would not rest on its oars with regard to the implementation of the Nigerian Content Act, adding that “new projects must look at doing FPSO integration and more; we must add something to our achievements.”

    Six modules of the Egina FPSO were fabricated in-country across some yards, whereas 12 modules were welded at Samsung’s base, Geoje, South Korea. He stated that “for next FPSO, more modules must be fabricated locally.”

    Wabote expressed satisfaction with level of investment and the utilisation of local workforce at the LADOL base, describing the project as an example of possibilities, and assured that the Board will continue to work with industry stakeholders to develop new projects and domicile more work in-country.

    The Chief Operating Officer, SHI Nigeria, Mr. Frank Ejizu, explained that the Quay side was ready to receive the FPSO, noting that the tracks have been certified. On the workforce, Ejizu stated that 364 Nigerian welders have been qualified and awarded international certifications with which they can work anywhere in the world.

    The NCDMB chief also visited the facilities of Dover Engineering, JC International and Thompson and Grace Limited, all located at Port Harcourt, Rivers State. He explained that his visits to oil and gas facilities across the country were aimed at assessing capacities and confirming that Nigerian companies have firm footing in their  areas of operation.

    According to Wabote, information and observations gathered from the visits will be used during tenders and in planning for capacity development. He also promised to enlighten IOCs and project promoters on existing in-country capacities and ensure their utilisation during projects.

    At Dover Engineering, Wabote noted that experts in offshore designs, FSPO designs and detailed engineering were in high demand and engineering companies must develop strategies to retain them so their competences will not be lost. He praised the company for forming a consortium with other engineering firms to deliver major projects, charging other service companies to emulate the model.

  • ExxonMobil boosts women empowerment with $100m

    ExxonMobil boosts women empowerment with $100m

    American oil giant, ExxonMobil, has made investments worth over $100 million in initiatives and projects, aimed at empowering women, it was learnt.

    This emerged during an event to mark this year’s Women’s Day in Lagos titled: “Women in Nigeria (WIN) exhibition & conference.” It was rganised by WEConnect International, a non-governmental organisation focused on women economic empowerment and sponsored by ExxonMobil with other global partners of WEConnect such as Procter & Gamble, IBM, Accenture and Ernst & Young, ExxonMobil was said to have spent multi-million dollars on issues that concern women.

    In a presentation titled: “Nigeria – The Journey So Far – Marketplace & Opportunities,” ExxonMobil Nigeria’s Operations Procurement Manager, Judith Mbonu, said the company had invested over $100 million in support of women empowerment initiatives in over 90 countries around the world, including Nigeria.

    Mbonu said the investments made under the firm’s Women’s Economic Opportunity Initiative (WEOI), were aimed at helping women achieve their economic potentials towards improving the socio-economic conditions of their respective communities, adding that it had benefitted tens of thousands of women in those countries.

    She also said the ExxonMobil upstream companies in Nigeria transacted business with women-owned companies in 2016 to the tune of over $24 million in furtherance of this economic empowerment objective. She added that ExxonMobil’s support for women economic empowerment stemmed from the firm’s strong belief that “when women move forward, the world moves with them.

    “We also know that when women control their income, they usually invest in the health, education and well-being of their families and communities, thereby benefitting the entire society.”

    She said ExxonMobil supports WEConnect at global and local levels, adding that the firm had implemented a number of other intitiatives aimed at the sustainable economic empowerment of women in Nigeria.

    Mbonu, who is also the Chairperson of the WEConnect Advisory Council in Nigeria, urged women to use networking towards making their businesses more competitive and successful. “You need to network locally, regionally and internationally,” she said.

    She also gave some tips to women business owners on improving their success rate with multinational companies and large corporate organisations. The tips included safety, building specialised skills, good business ethics, willingness to adapt to change and disciplined execution of contractual obligations.

    ExxonMobil’s Global Sustainable Procurement Manager, Nancy Swartout, who was the international guest speaker at the WIN event, in her presentation titled: “Global Support for WEConnect International,” offered more insight into ExxonMobil’s global strategy for women empowerment.

    Swartout said ensuring diversity was a key aspect of ExxonMobil’s operations, adding that the corporation spent $33 million on its Global Supplier Diversity Programme outside the United States (U.S.) in 2016, exceeding its target of $25 million. According to her, the $24 million business volume achieved with women-owned organisations by ExxonMobil affiliates in Nigeria, represented 74 per cent of total spent.

    The Keynote Speaker at the event and Executive Vice Chairman of Famfa Oil Limited, Mrs. Folorunsho Alakija, who spoke on the theme of the conference “Bold Steps for Big Change,” lamented that “half of the world’s greatest resource are being blocked from reaching their potential due to the fact that they belong to the female gender”.

    She urged the women to step up and take bold, ground-breaking actions towards improving the success rate and impact of their companies, using her personal business experience. She urged women entrepreneurs to persevere till they succeed in business.

    Mrs. Alakija commended ExxonMobil’s investments in the economic empowerment of women. “We should use ExxonMobil as an example for other oil companies and organisations not just in Nigeria, but worldwide for its support to various businesses of women,” she said.

    WEConnect International Country Director of  in Nigeria, Shade Ladipo, said the organisation  partners ExxonMobil and others to train women on the workings of multinationals and large organisations. Some of the trainings are on bidding and procurement processes as well as how to compete effectively with their male counterparts in winning business from such organisations.

  • Nestoil showcases expertise, innovation at NOG confab

    Nestoil showcases expertise, innovation at NOG confab

    Nestoil Limited showcased its expertise and innovative technology at the just concluded Nigerian Oil and Gas (NOG) conference in Abuja.

    The annual conference organised in collaboration with the Ministry of Petroleum Resources and Nigeria National Petroleum Corporation (NNPC) with support from the private sector has remained the industry’s must-attend event, attracting participation from both local and international key decision makers; participating companies and exhibitors from the entire oil and gas value chain.

    This conference discussed salient issues bordering on the future of the industry. Some of the issues included Nigerian National Petroleum Corporation’s commercial strategy and priorities, the impact of legislative amendments related to the Oil & Gas industry, tackling crude oil theft and pipeline vandalism through stakeholder collaboration and how policy changes can create an attractive and viable investment environment. The Nigerian Content seminar discussed strategies for increasing national capacity, value and capital retention.

    As Nigeria’s leading provider of engineering, procurement, construction and commissioning (EPCC) services, Nestoil and its sister companies exhibited alongside over 250 companies and major players in the Nigerian energy sector, to showcase industry-defining expertise and innovative technologies.

    Nestoil leveraged this year’s conference theme “A journey towards transformation,” to showcase the growth of indigenous capacity to investors and international oil companies. Over the past two decades, Nestoil has affirmed its industry leadership through execution of technically complex projects, which have contributed to the efficiency of its clients in the oil, gas and energy sectors of the Nigerian economy.

    The company’s Group Managing Director, Dr. Ernest Obiejesi-Azudialu described the NOG as Nigeria’s version of the Offshore Technology Conference (OTC) held annually in Texas and enjoined operators to explore the opportunities afforded by the gathering to show our country’s potential to foreign investors and highlight the benefits of doing business in Nigeria.

    He said: “Let us take the Nigerian Oil and Gas Conference as our version of the Offshore Technology Conference and leverage the opportunities it presents to highlight our economic potential to the world. Nigeria is currently undergoing a process of rebirth that will bring prosperity to everyone. As Nigerians, we have a duty to help the world understand this, and showcase the opportunities that come with the transformation that occurs in every facet of our lives as a people.”

  • Ikeja Electric urges caution as rainy season begins

    Ikeja Electric urges caution as rainy season begins

    Ikeja Electric has called on the general public to exercise extra caution around electrical installations within its network as the rainy season begins to gain momentum.

    The company’s Head of Corporate Communications, Felix Ofulue, noted that the rainy season is usually plagued with increased accidents within the electricity sector as a result of heavy rainfall, windstorms and floods. He urged the public to be on guard in order to avoid being victims of any accident that could easily occur during the rains.

    He said Ikeja Electric places premium on the safety of its staffers and customers alike, hence the proactive call for caution during this accident-prone season.

    Speaking on the need to observe all safety codes and regulations, especially during the rainy season, Ofulue said the company will continue to sensitise its customers and the public on the safety measures to adopt to ensure their safety.

    He noted that the need for heightened awareness on safety measures during the rainy season is due to the hazard that the mix of electricity and water poses. He advised  the public to avoid conditions that could compromise safety around electricity, such as using wet electrical appliances; stepping in puddles of potentially charged water, coming in contact with exposed electrical wires, among others, as such actions may have fatal results.

    He also warned the public to be mindful of streetlights within the Lagos metropolis as fatal cases have been reported where road users unfortunately come in contact with exposed energised wires connected to the streetlight.

    Ofulue called on residents within the company’s network coverage to also be mindful of snapped power cables and fallen poles, incidents which can occur during heavy rainfall. He said wherever such incidents occur, residents should call the company’s Customer Care help lines on 01-7000250, 01-4483900 and 0700-0-2255-453 or through the company’s social media handles immediately, while maintaining a safe distance from the point of the accident.

  • ‘Govt’s Niger Delta peace moves ‘ll boost economy’

    Nigeria’s quest to come out of recession in the next one year is achievable if the current peace moves in the Niger Delta region are sustained, oil experts have said.

    The experts which including the Technical Adviser, Propetrol Limited, Mr Olajugbe Olabisi and the Chief Executive Officer, Abuja Power Station, Mr. Jameel Jammal, said with sustained peace in the Niger Delta region, oil production will improve and government’s revenue will increase.

    Nigeria, last week, overtook Angola as the largest oil producer in Africa, based on its current production of 2.1 million barrels of crude per day (bpd) as against about 1.7million barrels of crude oil per day by Angola.

    Before now, the country was behind Angola as a result of militant attacks on oil facilities in the Niger Delta, which dipped production to 1.604 bpd in January. The recent feat, according to stakeholders, would improve the nation’s economy. If the Federal Government and the Niger Delta region indigenes would be able to sustain the peace, crude oil production, they said.

    Olabisi said the Federal Government’s decision to encourage peace in the region would help in shortening recession’s lifespan in the economy. He said growth in oil output would lead to a corresponding growth in revenue accruing to the Federal Government, adding that the development would help in building the economy.

    He noted that when this happens, the country will focus on other sectors of the economy for growth.

    He said: “The issue of ending the quagmire in the economy would not be a problem if the country would be able to sustain peace in the Niger Delta region. The reason is because a conducive operating environment in the region would lead to increase in oil output and revenue needed to manage the economy. This would help the economy to grow. Besides, the government would be able to focus more on the growth of agriculture and other sectors of the economy.

    “Peace in the Niger Delta region would enable the Nigerian National Petroleum Corporation (NNPC) to get enough crude for its Direct Sales and Direct Purchase (DSDP) import model introduced to provide crude oil for refiners abroad and in return bring fuel into the country,” he said.

    According to him, one of the causes of recession was the reliance on crude oil to the detriment of other natural resources, stressing that the problems in the Niger Delta had prevented the country from meeting its Organisation of Petroleum Exporting Countries (OPEC) production quota.

    He blamed low oil output, fall in prices and other variables for the  recession, stressing that recession would be over when the country continues to increase production of oil.

    Jammal said ramping up production to 2.1million bpd was a good development, adding that the feat must be sustained if the country must achieve the desired economic growth. He said the Federal Government would stop struggling  once enough revenue are derived from oil and related resources.

    “Now that Nigeria has re-established itself as the leading producer of crude oil in Africa, it must not rest on its oars. To achieve this, the country must guarantee total peace in the Niger Delta in order to maximise the potentials in the industry fully,” he said.

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, attributed the leap in oil production to the relative peace in the region. He said the visit by the Vice President Prof Yemi Osinbajo to the region has helped in improving crude production well.

    Also, NNPC’s Group Managing Director, Maikanti Baru, said the country would be able to increase its oil production once peace thrives in the region.

  • NCDMB, IOCs pledge to fast-track projects execution

    NCDMB, IOCs pledge to fast-track projects execution

    The Nigerian Content Development and Monitoring Board (NCDMB) and international oil companies (IOCs) operating in the country have made commitment to fast-track execution of oil and gas projects. This will lead to an increase  crude production and create opportunities for the growth and development of Nigerian Content.

    The IOCs gave the assurance when the Executive Secretary of NCDMB, Simbi Kesiye Wabote visited some IOCs in Lagos to seek collaboration and get their commitment to support upcoming projects.

    Wabote visited Chevron, Total Upstream and Shell with top management of the Board and confirmed that NCDMB had adopted mechanisms that accelerate processing time for Nigerian Content plans, technical and commercial evaluation and issuance of Nigerian Content certificates.

    He urged other entities involved in the contracting cycle to adopt similar strategies for the sector to achieve the six-month contract processing target set by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu. He also expressed the Board’s readiness to partner various stakeholders in resolving challenges they have in executing their projects.

    According to him, the visits were conceived to engage stakeholders, and explain strategies adopted by the NCDMB to foster projects and ensure domiciliation of work scopes and maximisation of in-country capacities.

    One of those strategies is the categorisation of service companies by their capacities, which he said, will be used in the contracting process.

    He stressed that all new projects must comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 and urged the operating companies to ensure that their contractors and sub-contractors remit one per cent of their contract value to the Nigerian Content Development Fund (NCDF) as required by law.

    The NCDMB chief praised the establishment of pipe coating facilities and steel pipe mills in-country and directed operators to patronise the facilities. He said the Board would sanction operators that award contracts without approved Nigerian Content Compliance Certificates (NCCC).

  • Oil firm okays $4b to increase output

    Oil firm okays $4b to increase output

    Aiteo Eastern Exploration and Production Company (AEEPCo) Limited has set a medium term investment of $4 billion to increase oil and gas production, The Nation has learnt.

    Its Group Managing Director,  Chike Onyejekwe, who disclosed this, noted that the fund will be channeled to declining and brown fields to boost oil and gas outputs from the firm’s oil and gas fields.

    Onyejekwe said: “Aiteo is poised to grow oil production. We will arrest declining and brown fields. We will also focus on attaining a target of producing 300 million standard cubic feet of gas per day (mmscfd) by increasing associated gas (AG), develop non-associated gas (NAG) and diversify our market.

    “The $4 billion medium term investment will also be used for infrastructure asset integrity, reduce losses and create flexibility.”

    Onyejekwe said the firm was incorporated in 2014 to participate in the SPDC/Total/NAOC asset divestment in Eastern Niger Delta. It scaled the rigorous technical, financial, credit assessment and know your customer (KYC) by both the sellers and lenders syndicate. The firm syndicated medium term acquisition facility in two tranches – offshore and onshore, and was selected successful bidder for 45 per cent oil mining lease (OML) 29 and Nembe Creek Trunk line (NCTL), referred to as assets. It reached financial close in September 2014, he added.

    The onshore tranche, he noted, represented the single largest debt financing in local oil and gas sector by indigenous banks, which makes AEEPCo a strategically important borrower to the banking industry. He stated that the resource base of the firm include 2500 million barrels of oil and two trillion cubic feet of gas, six flow stations and six associated gas gathering facilities with a capacity of 50 mmscfd.

    The firm’s major fields include Nembe, S/Barbara, Okoroba, Oloibiri. Its 97km Nembe Creek Trunk Line has the capacity to evacuate 600million barrels per day and has six injectors.

    He said Aiteo operates in a highly challenging business environment with challenges of oil price collapse and debt  service. Other external and internal challenges, he said, include vandalism and theft, changing funding landscape, ageing assets, community management issues and facilities uptime.

    Onyejekwe said: “Our growth drivers remain strong: leadership, high commitment and motivation, technical and commercial excellence and superior asset base. In the next five years, our operations will continue to be guided by these qualities as we leverage our capabilities comparable to oil majors elsewhere in the world. Indeed, the future is Aiteo.”

    The Chief Executive Officer/Chairman, Aiteo Group, Benedict Peters also said the company grew production from 25,000 barrels per day (bpd) upon takeover of operations to a peak of 90,000 bpd in one year. He also highlighted several existing and developing projects that could potentially grow Aiteo’s asset production to over 150,000bpd and 200mmscf/d.

    Aiteo acquired OML 29 when Shell Petroleum Development Company (SPDC) fully exited the facility with Total and Nigerian Agip Oil Company (NAOC). At the time of the divestment, average production was 23,000bpd.

    Peter said: “Our outlook is bright with three producing oil fields and viable crude exports via Bonny terminal. We also have contingent resources to appraise and prospective ones to explore in the medium-to-long term, including full 3D coverage and 2P NNS reserves at 1.6 billion barrels. Put simply, we have a clear vision for the future with the experience and assets crucial to providing oil and gas consistently on a regional and global scale.

    “Aiteo’s ambitious five-year objectives include tackling the power challenges in Nigeria head-on through its legacy investments in the gas-to-power value chain.

    “This is a testament to our commitment to the transformation of the entire oil & gas value chain into a world-class landscape.”