The Nation Newspaper

Category: Energy

  • Chevron Nigeria votes $1.4m for PROMOT

    Chevron Nigeria votes $1.4m for PROMOT

    Chevron Nigeria Limited (CNL), operator of the NNPC/CNL Joint Venture (JV), has launched a $1.4 million, two-year project called PROMOT (II) aimed at preventing the transmission of HIV from mothers to their newborn babies.

    The community-based Prevention of Mother-to-Child Transmission project (PROMOT II) is coming on   the heels of PROMOT (I), a four-year project, which was implemented in Bayelsa State between September 2012 and March, this year and to which Chevron committed $5.3 million.

    Both phases of the project are implemented in partnership with Pact, an international non-governmental organisation with active programming in Nigeria for more than a decade.

    The General Manager, Policy, Government & Public Affairs Deji Haastrup said PROMOT (II) project was officially launched on July 12, 2016 by Governor Seriake Dickson of Bayelsa State, who was represented by Chief David Serena Dokubo-Spiff the Secretary to the Bayelsa State Government (SSG), at Yenagoa, Bayelsa State.

    The Governor thanked Chevron for providing additional funds for the extension of PROMOT for another two years. “Chevron is a good company and I commend the firm for providing additional fund for the extension of PROMOT for another two years, in spite of the harsh economic climate,” he said.

    He noted that PROMOT (I) was a great success, as it contributed to the reduction of Bayelsa State’s HIV prevalence rates from 9.1 per cent in 2010 to 3.8 per cent by the end of the project’s third year in 2015.

    The Chairman Managing Director, Clay Neff, explained that the PROMOT (II) project is part of the company’s social investment efforts in the Niger Delta.

    “Chevron invests in programmes aimed at improving access to healthcare to support the communities where we operate. Working with partners globally and at local levels, we dedicate our capabilities, resources and people to support initiatives that build local capacity and deliver real, lasting gains in the fight against devastating diseases – particularly  HIV/AIDS,” he said.

    Haastrup said: “Fighting AIDS is not our core business, but it is essential to the success of our business. As a company, we depend on a healthy society. We, therefore, promote healthy communities and improved access to health care aimed at eradicating diseases.”

    The PROMOT (II) project, being implemented by Pact,  will focus on promoting health care-seeking behavior among women of reproductive age (15–49) – including those living with HIV- to utilise antenatal care (ANC) and Prevention of Mother-To-Child Transmission (PMTCT) services in three Local Government Areas (LGAs) of Bayelsa State: Ekeremor, Brass and Southern Ijaw. Additionally, PROMOT (II) aims at strengthening community structures to advocate for accessible, quality ANC, PMTCT, and broader health services in Bayelsa State.

  • NDDC’s appointment sparks row

    NDDC’s appointment sparks row

    The Ilaje World Congress, the host community of oil producing area of Ondo State, has kicked against the appointment of a non-Ilaje person by the governor to represent the state on the Board of the Niger Delta Development Commission (NDDC).

    Its spokesman, Mr. Ola Judah, told The Nation that the appointment was improperinhuman. He said Governor Olusegun Mimiko, over the years marginalised the Ilaje and did not involve them in the management of oil activities.

    Ola said: “Ilaje World Congress with the largest number of Ilaje sons and daughters both in Nigeria and in Diaspora, has strongly and unanimously condemned the appointment of one Olatokunbo Ayotunde Ajasin, designated to represent Ondo State on the NDDC board. We demand for the immediate withdrawal of Ajasin and his replacement by an indigene of oil producing communities of ilaje enclave.

    “The thought of appointing someone outside the ilaje nation in itself is malicious, ungodly and it reveals the extent to which Ilaje people have been dehumanised, marginalised and treated with no respect by the leadership of various governments.

    “The inclusion of Ajasin Olatokunbo and the submission of such name to the Senate is a criminal offence as it is against the law and parliamentary Act 2000, section 2.1b, that established the Board of NDDC. The provision stipulated that an indigene from the oil producing area shall be appointed not and indigene from Owo, a non oil producing area. From our record, ilaje communities are the only producing communities in Ondo State, and for convenience sake, the Ese-Odo, our neighbouring communities can be considered.”

    Ola said members of the Congress would not watch the injustices perpetuated on the Ilaje communities by the government to continue.

    ‘’The Mimiko-led government has  dealt with the ilaje people by withdrawing the 40 per cent of the 13 per cent oil derivation that was meant for the development of the oil producing communities to fund his own agenda at the detriment of ilaje people. Ondo State Oil Producing Areas Development Commission (OSOPADEC) has become Mimiko’s pocket portfolio. Ilaje people suffered for eight years under Mimiko despite our loyalty to him. The governor played the Ilaje people to the gallery,’’ Ola added.

    He said: “Why is it that there is no Ilaje person considered fit to be at the centre where consultations and decisions that affect Ilaje people are made? Why must we be treated and marginalised like this? Enough is enough. We demand to be treated with respect and be given what rightly belongs to us. Appointment of an indigene from the oil producing area of the state should be effected and a credible Ilaje man appointed to the NDDC Board as the law stipulates. We shall continue frown at any attempt by any person or group of persons trading with the general interest of the Ilaje people for personal agenda. We appeal to the leaders of the APC-led government to intervene and reverse the appointment, and do the right thing.”

  • Reps committee backs firm on local capacity

    The House of Representatives Committee on Local Content has called on International Oil Companies (IOCs) to patronise marine support base and shipyard of West African Ventures (WAV) in Warri in Delta State.

    The lawmakers made the call when they visited the firm as part of their oversight function to inspect and verify the company’s local content capacity. During the inspection, they saw new boats awaiting purchase by oil and gas firms.

    The House Committee on Local Content Chairman, Hon. Emmanuel Okon, lamented underutilisation of the company’s facilities by IOCs. He advocated patronage by oil firms to encourage sustainable investment needed to build capacity and enhance indigenous companies to compete internationally.

    He expressed satisfaction with the standard of passenger boats, tug boats and investment in the dry-dock, assuring that the House would ensure sustainable patronage of the multi-billion naira yard  of West African Ventures and facilities of other indigenous companies by the operator companies in the country.

    Okon said: “I am impressed by what I saw and I believe the community is impressed too with your local content deliverables. Even though the facilities are not utilised as they should be, we will try our very best to get people, marketers who can market this company and give the products the level of patronage that they deserve.”

    He said the lower chamber will  ensure that the crisis in the oil and gas sector doesn’t weigh down the business. He noted that the global crisis was affecting related markets and other local companies at this time. “As a responsive legislature, we will make sure that we continue to legislate and come out with laws and legislations that will force other companies and other users of light boat like this to consider getting it from companies like WAV, which have huge investment in the country to create jobs,” he added.

    The committee said the Local Content Law since its creation in 2010 has encouraged steady investment in various regions of Nigeria, adding that it law has promoted immeasurable investments and achievements in terms of job creation and skill acquisition in the oil and gas sector. He noted that local companies have done well as a result of the law, adding that more investments are expected when the economy takes a stable position.

    West African Ventures Limited Executive Director, Alhaji Ibrahim Sambo, agreed that there were crisis, which prompted developments, such as redundancies for survival in the system.

    He said the firm embarked on three redundancy exercises in the last quarter to manage cost in view of dwindling revenue.

  • Concern on oil price recovery

    There are fears that oil demand has fallen short of expectations as production increases and rig counts rise, dampening hope of price recovery in the short term.

    Analysts said price recovery may take a year or more in the future because findings show that the demand response has been slower than bulls had hoped. U.S. drivers have covered fewer miles than expected this summer, and as they speed toward the Labor Day holiday in September, the overhang of gasoline in storage may put downward pressure on crude and refined product prices.

    “Right now, the only thing that would drive prices higher is robust demand,” said John Paisie, executive vice president at Stratas Energy Advisors, a Houston-based consultancy. The growth must be across the board, for products including distillates like diesel and jet fuel, as well as gasoline.

    “Demand just can’t be made up by one product,” he said, and demand for diesel has been lagging.

    Instead of seeing $60 a barrel, which would support an increase in production, the demand questions, and ongoing supply concerns, mean oil could fall further. “Demand is growing very moderately,” said veteran oil economist and independent consultant Phil Verleger. “There’s no real surge to it, call it the great moderation.”

    While gasoline prices have declined, the lower cost at the pump has only a moderate effect on consumer’s buying habits, Verleger said. Instead of racing out to fill their tanks, consumers are using the savings to pay down debt, he said.

  • Gas development key to 40,000mw attainment, says oil producers

    For the Federal Government to achieve its 40,000megawatts (mw) power generation target from the current 4,000mw, it must develop its gas resource, experts have said.

    The Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry, which consists of exploration and production firms stressed the need to expand domestic gas as a key enabler to power sector growth.

    In its presentation, the oil firms said OPTS is the cornerstone of the exploration, development and production of Nigeria’s petroleum resources, adding that in 2016 its 24 members accounted for 90 per cent of Nigeria’s oil and gas production – either in partnership with the Nigerian National Petroleum Corporation (NNPC) or with other local and international lease holders.

    The Managing Director of Shell Petroleum Development Company Limited (SPDC) and Country Chairman of Shell Companies in Nigerian (SCiN), Mr. Osagie Okunbor, who represented the OPTS chairman Neff Clef said gas development is key to realising the aspiration of 40mw generation and requires an approximate seven-fold increase in domestic gas supply for power generation alone and even more, if we consider industrial needs. This represents a huge development opportunity for Nigeria’s gas industry, it added.

    According to him, the important role of natural gas for the development of our economy cannot be over-emphasised in our drive to become one of the top 20 economies in the world. Identifying and implementing measures that capture the potential of the gas industry requires a deliberate collaborative effort between government and key stakeholders, he added.

    He said: “With 181 trillion cubic feet of proven gas reserves, and multiples of this figure in undiscovered gas resources, OPTS believes that Nigeria has the potential to be a gas super-power. These reserves place Nigeria as the largest in Africa and the ninth largest in the world.

    “However, only about 25 per cent of those reserves is being produced or under development today. The remaining 135 trillion cubic feet of proven gas is not associated with any planned development. And, there is virtually no active exploration in search of new gas reserves.

    “The total power potential of these discovered, but undeveloped reserves represent 68 years of 40,000mw compared to today’s power generation of approximately 4,000mw. With the largest proven gas reserves in Africa, Nigeria has the potential to be a gas super-power.”

    The group noted that providing enabling commercial and fiscal terms, and ensuring a conducive business environment, which includes providing a secure operations environment, will help in achievement of that level of power generation.

    It also noted that the Central Bank of Nigeria (CBN) has taken a commendable step of providing a mechanism for partial repayment of gas invoice arrears. However, since this mechanism was announced in August 2014, power sector gas invoice arrears have actually grown from a reconciled N40 billion of undisputed arrears in December 2014, to about N100 billion according to NNPC’s estimate of May 2016. The current system is simply not working. It is vitally important to settle the outstanding debts and establish bankable credit support facilities for future gas sales. Without these assurances, it is unreasonable to expect investors to commit additional investments to grow domestic gas supply, it added.

  • Meter manufacturers sack 50% of workforce

    No fewer than 600 workers of meter manufacturers have lost their jobs in the past six months. Reason: lack of patronage in the power sector, The Nation has learnt.

    The firms, under the umbrella of the Electricity Meters Manufacturers Association of Nigeria (EMMAN), resorted to sack because of poor revenue, it was learnt.

    The manufacturers said they couldn’t cope with their overhead costs in view of the prevailing industry challenges, including low patronage of their products by the electricity distribution companies (DisCos), weak exchange rate of the naira to dollar and other foreign currencies.

    A source at one of the local meter manufacturers told The Nation that the meter manufacturers  sacked between 50 and 55 per cent of their workers.

    The source said the meter manufacturing firms, including MOMAS Nigeria Limited, sacked about 220 workers, Unistar Nigeria Limited (100); Mojec Nigeria Limited (100), and Emcon Nigeria Limited (100).

    The Nation learnt that due to low patronage, the firms have been laying off their staff.

    EMMAN’s spokesman Ibrahim Muhideen who, confirmed the staff downsizing, said more workers would go except something was done to address the meter manufacturers’ problems, such as poor patronage to enable them boost their income.

    Muhideen said the companies were operating below capacity, a development, which rendered many of their workers redundant. Describing the development as rather unfortunate, Ibrahim urged the Federal Government to intervene by liberalising the meter market to allow EMMAN members sell to individuals and corporate organisations by the vendors approved by the Nigerian Electricity Regulatory Commission (NERC).

    Muhideen said: “The government should liberalise the meter market so that individuals can also buy meters from approved NERC vendors and installers. If the market is liberalised, more electricity consumers will be metered and it will go a long way in addressing problems such as “crazy” and estimated billing system that is currently being battled by consumers.

    He urged the government to allow meter manufacturers sell meters to the consumers because some distribution firms were not willing to give meters to customers.

    The Chief Executive officer, MOMAS Nigeria Limited, Mr. Kola Balogun, also said his firm retrenched over 200 workers, which according to him represents over 50 per cent of the workforce.

    He said the wage bill is high, and that the firm cannot afford to continue to pay salaries, stressing that more people would lose their jobs across board,if the situation does not  improve.

    “Despite the fact that our production lines have been improved to meet international standards, coupled with the high quality meters we produce, the electricity distribution companies don’t patronise us. Only Ibadan Electricity Distribution Company (IBEDC), Abuja Electricity Distribution Company and Port Harcourt Distribution Company (PHDC) buy from us. But that is not enough. Thousands of meters are in the store because there is no patronage,” Balogun added.

    He urged the government to create a five per cent special fund for meter manufacturers to aid their operations and enable them sell their products at competitive price.

  • Oando opens fuel retail station

    Oando opens fuel retail station

    Oando Marketing Limited has opened a retail station in Orile, Lagos.

    The quality of the station is consistent with the company’s commitment to lead in fuels retailing in Nigeria.

    With a fuels distribution capacity of over two billion litres yearly, Oando has retained its leading market share for fuels retailing and is poised to continue to expand leveraging its strong brand affinity, efficient distribution capacity and entrepreneurial heritage.

    The new station called Oando KM3, Orile boasts of modern, contemporary and eye-pleasing design with detailing infused to meet the needs of customers and travellers on the expressway.

    The station upgrade was timely done to complement the new 10 lane super highway, billed for completion in less than 24 months. It is also close to one of the passenger train stations on the new highway.

    The station can service over 2000 cars per day with ultra-fast premium fuel dispensing units configured to deliver accurate quantities at all times to ensure consumers receive value for their money. It will deliver products to customers in the Ijora, Orile and Iganmu axis.

    The Chief Executive Officer, Oando Marketing Limited, Mr. Abayomi Awobokun expressed satisfaction with the quality of the station’s upgrade, its visual contribution to the neighbourhood, the environmental considerations in its design and most important the value it would bring to customers and travelers on the Lagos-Badagry super highway when it is completed.  He acknowledged the hospitality of the host community, led by the Ojora of Ijora, Oba Abdulfatai Oyeyinka Aremu Aromire.

    He said: “Despite industry challenges, Oando Marketing is still able to compete favourably amongst its peers evidenced not only by its market share and current station footprint but also by its ability to continue upgrading and growing its network right across the country.”

  • NLNG, Warsash partner on maritime training, safety

    NLNG, Warsash partner on maritime training, safety

    Nigeria LNG Limited (NLNG) has opned a manned model of its new Dual Fuel Diesel Electric (DFDE) vessels at Southampton Solent University’s Warsash Maritime Academy, United Kingdom to contribute to the training and development of mariners globally.

    At a ceremony in Southhampton, the Managing Director and Chief Executive of NLNG, Babs Omotowa, said the introduction of the manned model was “a deliberate strategy to upscale NLNG’s world-class safety and operations records and achievements”.

    The  External Relations General Manager, Kudo Eresia-Eke, said the manned model will join other model used by Warsash Maritime Academy, a world-leading marine technology and training academy, to provide training, consultancy and research to NLNG and help develop mariners in the art of handling a ship. The models are tools of simulation and are built to the correct power to weight ratio as its full sized counterpart.

    The model was built to the 1:25 scale after one of the six DFDE vessels recently inaugurated by Bonny Gas Transport (BGT), a subsidiary of NLNG. The company, in 2013, signed $1.6 billion deal with Samsung Heavy Industries (SHI) and Hyundai Heavy Industries (HHI) to build six vessels.

    Omotowa said: “NLNG’s current goal is to sustain growth and build upon it, safely. And that is precisely why we are here today. NLNG’s partnership with Warsash Maritime Academy helped us to obtain the required design specification for the manned model, which was delivered from South Korea last month.

    “The partnership will also deliver the highest quality ship handling training for NLNG fleet officers and authorised third-party personnel. This is in addition to specialised consultancy services required for the planned NLNG Marine Resource Centre at Bonny Island.

    “Our two companies may be separated by the oceans and great distances. But I have no doubt that we are united in our joint ambition to be the very best at what we do. It is no big surprise therefore that Nigeria LNG and Warsash have a relationship dating back many years.”

    He added that through integrity, team work, excellence and caring, NLNG has been built to be a safe, reliable and profitable company. NLNG and Warsash Maritime Academy have a long-standing relation in the training and skills development of ship personnel manning NLNG vessels.

    The  Southampton Solent University’s School of Maritime Science and Engineering Director, Dr Syamantak Bhattacharya, said: “This most recent addition to the fleet demonstrates the importance placed on this type of training by the shipping industry. Our Ship Handling Centre is internationally renowned and Nigeria LNG’s latest investment represents a significant addition to our fleet. “

  • Oil Block:  Lawmakers to revoke licenses of erring firms 

    Oil Block:  Lawmakers to revoke licenses of erring firms 

    *Promises to back indigenes of the region who have interest in oil business

    The House of Representatives has said it would revoke licenses of some operators of oil block who erred in the process of obtaining their licenses.

    The House of Representatives Ad hoc Committee on Oil Prospecting License and Oil Exploration led by Hon. Gideon Wani spoke on  Friday at Idama platform in Akuku Toru Local Government Area of the state when the committee visited Belemaoil Producing Limited

    Wani also said it would support the people of the Niger Delta to be fully involved in doing business on petroleum products.

    He said the Committee on Oil Prospecting License and Oil Exploration License is commissioned to investigate the licensing of oil companies operating in the country.

    He noted that it would be a form of encouragement to retrieve licenses that were not properly obtained by some companies and hand them over to indigenous operators, adding that when such licenses were revoked they would be given to people from Niger Delta region who have interest oil business.

    Wani said: “We have been mandated by the House of Representatives to investigate all holders of prospecting and exploration licenses. We want to know the number of licenses and the number of companies operating with them. We also want to find out if the process of obtaining the licenses were followed.

    “Niger Deltans have not been doing business on oil. We want to return some of this oil blocks to the people of this region. This is to allow people of this area to also do business. Belemaoil is in a good business to do this business because it is owned by somebody from the Niger Delta”.

    Responding, the Chairman of National Youth Council of Nigeria, NYCN, Mr. Sukubo Sara-Igbe, thanked the federal house for the agitation in favor of the people of Niger Delta.

    Sara-Igbe said if more opportunities were given to the people of the area to do business on oil that the agitations in the region would be tamed.

  •  NLNG gets new CEO as Omotowa bows out

     NLNG gets new CEO as Omotowa bows out

    The Board of Directors of the Nigeria LNG Limited on Thursday approved the appointment of Mr. Tony Attah as the new Managing Director and Chief Executive Officer of the company.

    Mr. Babs Omotowa, who has held the position for nearly five years, will be returning to Shell International in Hague, ‎Netherlands, according to a statement signed by the company’s General Manager, External Relations, Kudo Eresia-Eke.

    The NLNG said Omotowa, who was appointed CEO by the board in December 2011, would be sorely missed for his uncommon vision, professionalism, compassion and commitment.

    It said Attah, a former managing director of Shell Nigeria Exploration and Production Company, would be taking over from him after returning from an assignment at Shell’s Group Integrated Gas business as senior projects advisor, working on projects in the Netherlands and Singapore.

    Attah comes to the NLNG with a 28-year experience in the Nigerian oil and gas industry, the statement said.

    At NLNG, he will be responsible for sustaining NLNG’s top quartile performance in supplying liquefied natural gas to the global energy market and advancing the company’s expansion programmes, according to the statement.

    NLNG is owned by four shareholders, namely, the Federal Government, represented by the Nigerian National Petroleum Corporation (49 per cent), Shell Gas BV, (25.6 per cent), Total LNG Nigeria Limited (15 per cent), and Eni International (N.A,) N. V. S. a. r. l (10.4 per cent).