The Nation Newspaper

Category: Energy

  • NCDMB, Agip partner on OPL 245 floating vessel project

    NCDMB, Agip partner on OPL 245 floating vessel project

    The Nigerian Content Development and Monitoring Board (NCDMB), Nigerian Agip Oil Company (NAOC) and key stakeholders in the oil and gas industry are collaborating to achieve high Nigerian Content in the Zabazaba oil field development project.

    NAOC is developing the Zabazaba and Etan deep water integrated project with Shell Nigeria Exploration and Production Company (SNEPCo) on Oil Prospecting Licence (OPL) 245.

    The company and the Board have organised a workshop on the Nigerian Content opportunities on the Floating Production, Storage and Offloading (FPSO) platform to be deployed in the project.

    According to NCDMB, the opportunities in the FPSO package are in engineering, procurement, construction and integration (EPCI) and that the workshop was organised to discuss the project’s scope and opportunities, harness  capacities and develop new capacities to meet the project requirements. It also provided a platform for international and local contractors to discuss possible collaborations ahead of the preparation of EPC tenders.

    The Board’s Acting Executive Secretary, Mr. Daziba Patrick Obah expressed the Board’s determination to ensure that the FPSO package is delivered in accordance with the provisions and targets set in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010.

    He noted that the Board learnt lessons from the evaluation and compliance monitoring carried out on Total’s Egina deep water project and intends to build on those lessons on the Zabazaba and Etan deep water project.

    He said the industry recorded significant capacity development initiatives on the back of Egina project, the most prominent being the FPSO Integration yard being constructed at LADOL in readiness for the Egina FPSO integration in 2017.

    “This legacy investment is a clear demonstration that major EPC projects can be leveraged to expand capacities and develop new capabilities for the benefit of the industry,” Obah added.

    NAOC’s Vice Chairman, Mr. Massimo Insulla said the company was embarking on the project “when everybody is scared of investing in the oil and gas business around the world due to low oil prices as well as factors related to global economic downturn.” He solicited the cooperation of  stakeholders to the success of the project.

    He said other workshops would be organised for other packages of the project, including the supply of line pipes for gas export, EPC for umbilicals, EPCI for pipelines, flowlines, risers and installation, EPC for SPS and wellheads and EPC for Calm buoy offloading.

    House of Representatives Committee on Local Content Chairman, Emmanuel Ekon praised NAOC for investing in the industry at a time of recession.

    He noted that indigeneous contractors had demonstrated capacity on the Egina project, expressing confidence that they would deliver on the Zabazaba project if given the opportunity.

    He assured foreign EPCI contractors that the Nigerian Content Act was not designed to exclude foreign participation in the oil and gas industry, but encourages partnership with local players, capacity building and in-country domiciliation.

  • National grid power deficit hovers around 13,843Mw

    Consumers connected to the national grid require additional output of 13,843 megawatt (Mw) of electricity to  meet their needs a report from the Transmission Company of Nigeria (TCN) has shown.

    According to TCN’s report for August 12-15, average daily output was 13,843Mw national peak demand forecast was well above 17,000Mw with output remaining below 4,000Mw.

    The report showed that within the four days, power generation averaged 3,877Mw while the national peak demand forecast was 17,720Mw reflecting a shortfall of 13,843Mw. Power generation to the national grid, according to the report, has been above 3,000Mw since last month when attacks on gas pipelines by the Niger Delta militants started reducing.

    It stated that peak generation on August 12 was 3,866.9Mw. On August 13 and 14, peak generations were 3,733.4Mw and 3,686.3Mw, while othe following day, it was 3,921.4Mw, an average of 3877Mw.

    The TCN also said the nation has an installed transmission capacity of 11,165.40Mw while the functional facilities, if optimally, utilised can supply 7,139.60Mw. The shortfall may be due to several constraints, including facility breakdown.

    Also contrary to allegations of poor capacity levelled against the transmission firm, including inability to wheel more than 5,000Mw to electricity distribution companies (Discos), TCN said its transmission capability was 7,000Mw while the network operational capability was 5,500Mw.

    The  Research and Advocacy, Association of Nigerian Electricity Distributors (ANED) Executive Director, the umbrella body of the electricity distribution companies in Nigeria, Mr. Sunday Olurotimi Oduntan, said the estimated national peak demand forecast of about 17,000Mw by the TCN was only a fraction of the national demand as the huge energy-consuming firms are not connected to the grid.

    Oduntan said it was difficult to determine national consumption as most of the big consumers are off-grid.

    “The actual national energy demand may be difficult to determine because many organisations, industrial concerns and rural communities, such as the Redeemed Christian Church  of God and Winners Chapel headquarters as well as Dangote Industries Limited, among many others, are not connected to the grid.

    “There is huge power deficit in Nigeria but going by the number of customers captured on the grid, 20,000Mw would be able to give the stable electricity supply expected by Nigerians. However, it is a herculean undertaking to generate the 20,000Mw that I feel will enable industrial firms to comfortably connect to the national grid,” he said.

  • IPMAN, NIMEX partner on 100,000mt of fuel import

    Independent Petroleum Marketers Association of Nigeria (IPMAN) is collaborating with NIMEX Petroleum Group to import 100,000 metric tonnes (mt) of petroleum products to boost supplies, The Nation has learnt.

    IPMAN National President, Chief Obasi Lawson said the association has signed an agreement with NIMEX Petroleum Group for the importation of  petrol Diesel and  kerosene to complement the Federal Government’s effort in driving the downstream sub-sector.

    Lawson said the products would be imported by NIMEX while  IPMAN members would distribute them across the country to augment supplies by the Nigerian National petroleum Corporation (NNPC) and other sources.

    He said with the deal, products would be available, especially petrol, adding that at the moment, the NNPC’s supplies to members of the association was insufficient.

    Lawson said: “IPMAN is not unmindful of the positive effect its complementary effort to bring in petroleum products to service the dire needs of our members. The strategic relationship with NIMEX Petroleum Group will also support to improve the supply chain of petroleum products in the country and positively drive the deregulation policy.

    “IPMAN has grown to occupy a pride of place in the downstream sector of the oil and gas Industry. With a membership of well over 10,000 marketers across the country, it controls well over 87 per cent of the petroleum products retail outlets in Nigeria with a reach to every nook and cranny.

    “This commendable spread of IPMAN members’retail outlets across the country requires a steady supply of petroleum products for easy access by Nigerians.

    “The NIMEX Petroleum Group founded by Azmat Mahmoud, an astute German businessman, is a global name in the provision of solid services in the petroleum sector.The company has a global footprint in more than 15 countries in Africa with three decades experience in the provision of services in petroleum-related trading.

    “It is in recognition of this global reach by NIMEX, that IPMAN decided to partner with it in order for it to bring its huge experience to support IPMAN in capacity building. Mr Kanwar Ratra, the President of NIMEX, has assured us of their preparedness to satisfy the yearnings of our members for products.”

    The IPMAN chief praised the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and the Group Managing Director of NNPC, Dr Maikanti Baru, for their wonderful job in the oil and gas industry reform.

    According to him, Kachikwu and Baru through the NNPC and the Products and Pipeline Marketing Company (PPMC) are responsible for the peace that IPMAN and other Nigerians are enjoying today.

  • Oando begins training of 500 mechanics

    Oando begins training of 500 mechanics

    Oando Marketing has commenced the 2016 edition of its Oleum Academy Initiative with the induction of 500 mechanics. The initiative is meant to bridge the gap between the number of professional mechanics and the requisite skills needed in the Nigerian auto-mechanic industry.

    Launched in 2014, the Oleum academy was designed to support the alternative learning and skills development project, an initiative of the African Development Bank which provides high quality vocational training and mirrors the Millennium Development Goals (MDGs) for poverty reduction and the development strategy in the country.

    Selected participants were shortlisted through nominations on online media platforms and by recognized mechanic associations; Nigerian Automobile Technician Association (NATA), and Motor Mechanic and Technician Association of Nigerian (MOMTAN).

    This year’s edition of the initiative will offer 500 mechanics a three-month programme of diverse learning mediums including in-class instruction on subjects comprising auto diagnosis, electromotive and workshop management. Facilitation is done in partnership with Automedics, a renowned automotive mechatronics outfit that specializes in automobile training and education, vehicle diagnosis, maintenance and sales of spare parts. Successful trainees are awarded a certificate in Automotive Mechatronics Training upon completion of the programme.

    Speaking on the initiative, the Chief Executive Officer of Oando Marketing Limited, Yomi Awobokun said: “Oleum Academy is aimed at improving the expertise level of Nigerian auto-mechanics and ensuring the skill acquisition rate is up to par with the evolution in the auto industry.

    We expect this project to contribute to the Nigerian economy by creating more opportunities for the mechanics and car owners. We remain committed to the goal to train 5000 mechanics by the year 2020.

    “The Oleum Academy initiative is positioned to address several issues. To begin with, car technology is constantly evolving and vehicle features are becoming more advanced than ever. As a result, vehicles can prove either interesting or difficult to work on depending on the mechanic’s level of training.

  • OPEC, others head for oil output freeze

    OPEC, others head for oil output freeze

    Members of the Organisation of Petroleum Exporting Countries (OPEC) and other oil producing countries are in discussion to strike an output-freeze deal next month in Algiers, Algeria as OPEC’s biggest producers are already pumping flat-out, the group’s former president said.

    While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, Chakib Khelil said in a Bloomberg Television interview. Khelil steered OPEC in 2008, the last time it implemented an output cut, which was announced in Algeria in December of that year. In a separate interview, former Qatari Energy Minister Abdullah bin Hamad al-Attiyah was convinced there is a need for an accord.

    “All the conditions are set for an agreement,” Khelil said from Washington. “Probably this is the time because most of the big countries like Russia, Iran, Iraq and Saudi Arabia are reaching their top production level. They have gained the entire market share they could gain.”

    While oil prices have advanced since OPEC announced it would hold informal talks in the Algerian capital next month, analysts from UBS Group AG to Commerzbank AG doubt any freeze deal will be completed, and comments from Saudi Arabia and Nigeria have kept expectations low. Talks collapsed in April as Saudi Arabia insisted Iran would have to limit its production, a condition the country rejected as it ramped up exports previously curbed by sanctions.

    As producers are almost pumping at full-tilt, the impact of any accord to prevent further increases would essentially be “psychological,” Khelil said. That would nonetheless have a benefit for the market, according to the Algerian, who was also the country’s energy minister from 1999 to 2010. The global crude oversupply is already diminishing, and markets will probably reach “complete equilibrium” next year, Khelil said.

  • Firm launches e-learning portal for engineers, technicians

    Caterpillar has introduced technicians for Africa project, an e-learning website for engineering graduates, who desire to become technicians in Nigeria and other African countries.

    The website leverages Caterpillar’s  e-learning solutions and makes them available for anyone that has the interest to develop a career as a heavy equipment technician. It is expected to bridge the gap that exists between human labour and required skills.

    In Nigeria, three of the candidates, who successfully completed the Caterpillar e-learning modules, were honoured and given their certificates and Caterpillar kits by the company at their head office in Lagos.

    The Managing Director of Mantrac Nigeria Limited, Edmund Martin-Lawson, who described the initiative as giving back to the society, said the training would help the “beneficiaries to upgrade their skills and foundation knowledge of Cat products and their operations”.

    He said two other candidates, who successfully participated in the scheme in Port Harcourt, would also be honoured. Mantrac Nigeria Limited, he stated, was the sole authorised dealer for Caterpillar products and services in the country. According to him, the company supplies and supports machines for a wide and varied application in infrastructural, agricultural and mining development sectors as well as range of Forklift Trucks for material handling.

    He also told The Nation that the company also provides Caterpillar engines and generators for the oil and gas industry, industrial users as well as small range of generators for small scale industries and residential application.

    He congratulated the participants on being part of the pilot phase of the Caterpillar’s corporate social responsibility initiative.

    Technical Training Manager, Lateef Adenle said the free e-learning curriculum contained 18 modules of easy-to-understand, technical insights into safety and basic fundamental systems like electrical, hydraulics and power train.

    He said Caterpillar recognised the technicians by giving them certificates of completion, adding that the first five persons, who completed the modules, were equipped with Caterpillar special tools to aid their work in future. Their experiences would be shared on Caterpillar’s website, he added.

  • 208 open oil blocks up for grabs

    208 open oil blocks up for grabs

    Two Hundred and eight open oil blocks are up for grabs by firms and investor, it was learnt.

    A report by the Department of Petroleum Resources (DPR), the oil and gas industry regulator, obtained by The Nation, shows that 184 others have been awarded.

    According to DPR, there are seven basins in the country. They are in Anambra, Benin, Benue, Bida, Chad, Niger Delta and Sokoto. However, some of the basins are more buoyant than others as shown by the number of producing acreages in the Niger Delta basins.

    Sokoto, Bida, Benue and Chad basins are the most uneconomic  as there are no productive wells or those with proven commercial reserves of hydrocarbon.

    According to the report, Anambra basin has 19 oil blocks. Of these, six are operated under the oil exploration licence (OPL) while one is under oil mining licence (OML), leaving 12 blocks for offer. Benin basin has 48 oil blocks with eight OPLs, three OMLs and 37 open blocks. The Niger Delta basin has 191 oil blocks with 52 OPLs, 105 OMLs and 34 blocks open for bid.

    In the Benue,Bida,Chad and Sokoto basins, which have 43, 17, 46 and 28 oil blocks, there are no oil mining leases. Benue and Chad basins have two and six OPLs while Bida and Sokoto do not have any.

    An oil prospecting licence confers exclusive rights of surface and subsurface exploration for the production of oil and gas in an area not more than 2590 square kilometres (sq. km) about 1000 sq. miles in size.

    The OPLs granted for onshore/land/swamp are for an initial period of three years with the option of renewal for a maximum of two years. For the inland basin and deepwater blocks, the exploration  is 10 years, broken into two five years, which automatically roll over unless withdrawn due to nonperformance.

    An Oil Mining Lease or Licence (OML) is granted to a licencee who has fulfilled the work commitment as stipulated in the petroleum drilling and production regulations.

    OML is granted if the following potential for economic production exist in an OPL, for land/shallow offshore/Inland Basin, 10,000 barrels of oil per day (bopd) and for deep offshore acreasges, 25,000 bopd. The oil mining lease or licence allows a maximum acreage of 1295 sq. km and is due for renewal on expiration after 20 years.

    Nigerian National Petroleum Corporation (NNPC) Group Managing Director Dr. Maikanti Baru has reiterated the Corporation’s commitment to continue with exploration activities in these basins to boost daily oil production and reserves of the country.

    He said: “We have a mandate of opening up new frontiers to enable production and reserve addition. NNPC is set to resume exploration activities in both the Chad and Benue Troughs. There is a high level of optimism based on recent seismic processed data from the Chad Basin that our sojourn this time around will yield successes.”

    Some multinational oil service firms, such as Halliburton and Schlumberger as well as indigenous and Chinese firms, have over the years carried out seismic and exploratory activities in the Chad basin without finding hydrocarbon in commercial quantity.

    However, the Federal Government believes that as much as there is oil in commercial quantity in the other part of the Chad basin in the Republic of Chad, there is hope to find same on Nigeria’s side of the basin, perhaps with advanced technology.

     

  • Ikeja Electric gives discount on old bills

    Ikeja Electric gives discount on old bills

    Ikeja Electric (IE) Plc has started to give discount on old unpaid electricity bills to encourage customers to pay up.

    This is contained in a statement  by the firm’s Head, Corporate Communications, Felix Ofulue.

    He said the debt discount initiative provides various percentage discount options to enable customers pay their outstanding bills and meet their financial obligations to the company.

    He added that the initiative, designed specifically for unmetered non-maximum demand (NMD) customers, was to provide an avenue to support customers, especially those who are financially constrained.

    He said: “Ikeja Electric decided to introduce this scheme as a form of financial support to our customers, who are willing to pay outstanding amounts owed us. By providing this discount to them, we also share part of the cost of the consumed energy.

    “The three tier scheme provides a 10 per cent discount for customers who owe between N50,000 and N100,000; 15 per cent discount for those owing above N100,000 but less than N200,000 and 20 per cent discount for customers, who owe above N200,000. Customers are, however, required to apply to the company, stating if they wish to participate in the outright or installment debt discount exercise.”

    According to him, interested customers are encouraged to visit the Customer Care representatives situated at Service Centres, Undertakings or Business Units closest to them for more details with regard to their application. Further enquiries can also be directed to IE Call Center on 01-7000250, 01-4483900 and 0700-0-2255-453 or to customercare@ikejaelectric.com.

    He said customers’response to the initiative has been good; a testimony to the fact that many of “our customers are responsible citizens who, given the right circumstances, will rather pay than owe”.

    Ofulue said the company’s efforts at easing transaction and payment options for customers were recently recognised at the Efficiency Awards, organised by the Nigeria Interbank Settlement Scheme (NIBSS Plc) where it bagged the Cashless Driver Merchant Award.

  • Fed Govt makes changes in NDPHC’s board

    The Federal Government has changed representatives of the six geopolitical zones on the board of the Niger Delta Power Holding Company Limited (NDPHC) that oversees the operation of the National Integrated Power Project (NIPP), The Nation has learnt.

    NDPHC is a special purpose company owned by the three tiers of the government to implement of the National Integrated Power Project (NIPP), which was established to fast-track the achievement of stable power supply.

    An industry source told The Nation that Northeast zone that was represented by Gombe State in the previous administration has been replaced with Taraba State, while Kebbi State replaced Kaduna State for the Northwest zone.

    Plateau State replaced Benue State for the Northcentral zone, and Lagos State represents Southwest zone as against Ekiti State while Edo State replaced Delta State for Southsouth zone.

    For the Southeast, Anambra State replaced Abia State. By the changes, the governors of the nominated states become members of the board.

    With the changes, what remains to constitute the board is the appointment of the executive directors. As a company owned by the three tiers of government, apart from the shareholders comprising representatives of the six political zones of the country, the Ministers of Petroleum Resources, Power, Finance, and Attorney-General of the Federation are also members of the board.

    However, shortly before the expiration of the immediate past administration, the number of executive directors was reviewed. The new structure created positions for four executive directors to head generation, networks, finance and accounts, and corporate services departments.

    The office of the Company Secretary/Legal Adviser was also upgraded to a director’s status. The old structure only made provision for two executive directors responsible for Engineering and Technical Services, and Finance and Administration respectively.

    The executive directors are also members of the board with the Vice President as the Chairman. Whether the current government would uphold the new structure is still to be made known.

    The non constitution of the board fully, according to the source, is delaying activities of the company. He stated that the government needs to fill the vacant spaces of the executive directors and confirm the appointment of the acting managing director to make the board fully constituted.

    Besides, the source said the new structure, which made provision for four executive directors, was to prepare ground for the implementation of the NIPP Phase 11.

    The NIPP Phase 1 focused on power generation from the thermal plants, which are powered by natural gas. The essence was to increase domestic utilisation of gas as well as reduce flared gas. The second phase was planned to centre on generation from hydro plants as part of the diversification of sources of power supply especially in the face of the rampant pipeline vandalism.

    “The project will centre on generation from hydro plants as against the Phase 1 that focused on thermal plants. The choice of hydro power is part of the diversification of sources of power supply, especially in the face of the rampant pipeline vandalism,” he added.

    The thermal power plants built under the NIPP Phase 1 include Alaoji (1,131.4Mw) in Abia State, Ihovbor (508Mw) in Edo State, Egbema (380.7Mw) in Imo State, Gbarain (253.8Mw) in Bayelsa State, Calabar (634Mw) in Cross River State and Geregu (506.1Mw) in Kogi State.  Others are Ogorode (507.6Mw), Sapele in Delta State, Olorunsogo (754Mw) in Ogun State, Omoku (264.7mw) in Rivers State, and Omotosho (512.8Mw) in Ondo State.

  • Nigeria’s grid power deficit hovers around 14,622Mw

    Electricity consumers connected to the national grid need additional output of 14,622megawatts (Mw) to meet their requirements, a report from the Transmission Company of Nigeria (TCN) has revealed.

    The company’s daily operational report showed that between Sunday and Tuesday this week, national peak demand forecast has been above 17,000Mw while output remains slightly above 3,000Mw.

    The report said that the national peak demand forecast was 17,720Mw while generation stood at 3,097.3Mw, reflecting a shortfall of 14,622.7Mw. Generation to the national grid, according to the report, has been about 3,000Mw since July, when attacks on gas pipelines by the Niger Delta militants started reducing.

    The TCN also said the nation has installed transmission capacity of 11,165.40Mw while the functional facilities, if optimally utilised, can supply 7,139.60Mw. The shortfall may be due to several constraints, including facility breakdown.

    Also, contrary to allegations of poor capacity leveled against the TCN, including inability to wheel more than 5,000Mw to power distribution firms, the TCN, as at Monday, said its transmission capability was 7,000Mw while the network operational capability was 5,500Mw.

    The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), the umbrella body of all the electricity distribution companies in Nigeria, Mr. Sunday Olurotimi Oduntan, said the estimated national peak demand forecast of about 17,000Mw by the TCN is only a fraction of the actual national demand as the huge energy-consuming firms are not connected to the grid.

    Oduntan said it was difficult to determine national consumption as most of the big consumers are off-grid. “The actual national energy demand may be difficult to determine because many organisations, industrial concerns and rural communities such as the Redeemed Christian Church and Winners chapel headquarters as well as Dangote Industries Limited, among many others, are not connected to the grid.

    “There huge power deficit in Nigeria, but going by the number of customers, currently captured on the grid, 20,000Mw would be able to give the stable electricity supply expected by Nigerians.  However, It is a herculean task to be able to generate the 20,000Mw that I feel will enable industrial firms to comfortably connect to the national grid,” he said.