The Nation Newspaper

Category: Energy

  • Seven Energy begins gas supply to fertiliser firm

    An indigenous oil and gas company, Seven Energy International Limited, has commenced supply of natural gas to Notore Chemical Industries Plc, a fertiliser and agro-allied company in Nigeria.

    The commercial delivery of gas to Notore in Onne, Rivers State, is being executed through Accugas, a wholly-owned subsidiary of Seven Energy. The company said 25 million cubic feet per day (mmcf/d) of gas is supplied as part of the feedstock to Notore’s fertiliser plant. By this supply arrangement, Seven Energy is helping Notore fertiliser plant to improve its operational efficiency and enhance the plant’s output, it said. Natural gas is a major component in the production of fertiliser.

    The Chief Executive Officer, Seven Energy, Phillip Ihenacho, said: “We are happy to announce the formal commencement of gas deliveries to Notore Chemical Industries Plc through our subsidiary, Accugas, a clear demonstration of our commitment to drive the industrialisation of Nigeria through the development of the country’s  huge natural gas resources. Through the supply of our processed gas, we are providing a new source of feedstock to meet the company’s increasing requirements, whilst directly enabling the production of fertiliser that Nigeria’s burgeoning agriculture sector desperately needs to grow.”

    The Managing Director, Accugas Stephen Tierney, said: “This milestone represents another significant step for Accugas in our effort to increase domestic supply and utilisation of gas for the good of the Nigerian people and its economy. By providing a clean, dependable, quality source of gas supply to the Notore plant, and doing so via an integrated end to end solution, we are demonstrating our clear commitment and execution performance toward enhancing domestic gas consumption for broader industrialisation.”

    Seven Energy has continued to champion the Nigerian gas and industrial revolution through the exploration and production of natural gas, and its commercialisation through processing and distribution infrastructure, where it has invested over $1 billion in the southeast region of the Niger Delta in the last five years, it added. This enables Seven Energy to reach the end-user and to support Nigeria’s evolving power sector and meet the growing energy needs of the industrial sector.In 2014 President Goodluck Jonathan commissioned the Uquo Gas Processing facility owned by Seven Energy. The facility currently supplies gas to five industrial customers.

     

  • $84m compensation opens door for oil firms in Ogoni

    Three months after Shell Petroleun Development Company (SPDC) paid $84million  compensation to Bodo community in Ogoniland, Rivers State for the two operational oil spills that occured in 2008, the community has agreed to open its door to local oil companies intending to carry out production activities.

    The oil company, a subsidiary of Royal Dutch Shell, paid the money within two months starting from December last year to January this year thus puting an end to the issue of compensation to the victims of the.

    The Chairman, Bodo Council of Chiefs, Mene Slyvester Kogbara,  said the community was ready to open its doors to welcome companies with good track records to encourage growth. He said due process shall be followed in selecting companies that will operate in the community. He noted that Shell paid his people in January. The 15,000 indigenes of Bodo community has since received N600,000 each for the loss they suffered as a result of the spills.

    He said companies intending to operate in the area must meet all set down  requirements placed for them by the community. “No company would be allowed to come to the area except we know its directors, management and the history of such company.  We would look at the profiles: where they are coming from, what they set out to achieve, among other vital information that would be of help to them and the indigenes of Bodo community,” he said.

    He said although the compensation had been paid, what is most disturbing is the cleanup of the environment as stipulated in the United Nations Environmental Programme.

    Also, Cerase Environmental Services Limited(aNon-Governmental Organisation) said hydrocarbon pollution and others are attracting global attention because they have social and psychological effects on the people.

    The firm’s Business Development Officer, Gloria Igbaji said stakeholders including Bodo community leaders have attended seminars and workshops organised to sensitise them on the issue. She said the organisation has visited the community to ascertain the level of degradation, and carried out a study to help facilitate cleaning of the area.

    She said: “The clamour by the community for cleaning of the oil polluted areas was borne out of the need to protect their source of livelihood. Cleaning an oil polluted area is not a one-off thing. Cleaning should be systematic and effective to achieve the desired results of making the natural habitats such as land and water useful for socio- economic activities again. Traditionally, the people are farmers and fishermen and inability to recover lands and waters would affect them greatly.

    “Thousands of acres of land have lost their nutrients, making it difficult to grow crops, so also the waters, which have been polluted by oil. This is not without a multiplier effect on the economy of the area.”

    She urged Shell to fast-track the process of cleaning the area, noting that further delay would compound the problems of the people. The condition of the land and water gets messier when wrong chemicals are not applied to treat them, she added.

    “Besides paying damages to the people, the multinational oil companies operating in the area should try and build roads, hospitals, schools, among other infrastructural facilities. The people would waste the money, if there are no socio-economic activities to invest it on. No matter the amount of money Shell has given them, they would remain in poverty if amenities that would improve their lives are not provided, ditto cleaning their land,” she said.

    Shell, in 2010, agreed on an out of court settlement in a case brought against it by the people of Bodo community over the oil spills from the company’s failed facilities, which had caused a damaging effect on the Ogoni environment and its people. This led to the payment of $84 million to the community by Shell as compensation with an agreement to clean the impacted areas.

  • ‘Oil firms must imbibe good governance for efficiency’

    ‘Oil firms must imbibe good governance for efficiency’

    The Executive Director, Corporate & Investment Banking, Access Bank Plc, Elias Igbinakenzua, was a panelist in one of the sessions of the just concluded Nigeria Oil and Gas Conference in Abuja. He spoke to reporters on the sideline at the event on what local oil firms should do to make their projects bankable and have easy access to financing. EMEKA UGWUANYI was there.

    Why is Access Bank interested in oil and gas financing?

    Oil and Gas is our mainstay in Nigeria. It contributes over 90 per cent of foreign exchange to our revenue and it employs the bulk of our people. Any bank that wants to encourage the industry and add value to the economy must support oil and gas. So, as a bank we have been there from inception. We have encouraged players locally as well as the International Oil Companies (IOCs). It cuts across all the chains of oil and gas companies in the downstream, midstream and upstream.

    Access Bank is one of the well capitalised Nigerian banks that have the wherewithal to support the Nigerian oil and gas industry. In terms of governance, we have the right framework to access the risks, dimension them and know the extent to go. We have also been able to help our clients to understand the risks and know how to perch against them. So, we are a core player and we think that as a key Nigerian stakeholder, we must play big in the oil and gas industry.

     You emphasised lack of corporate governance as an impediment to funding of projects. What are you doing to make indigenous firms incorporate this in their system?

    The theme of the panel session was actually to look at the independent oil companies and success recorded so far and then accesses the future. For you to sustain participation for a long term as a going concern, you must imbibe good governance. This will help to determine how to organise your activities, what risks to take and how to mitigate the risks. A player cannot attract the bank’s attention if he does not have a structure that is observed and examined as transparent and operating in line with global best practices. So, we think that for our local players that want to grow big, they must embrace good governance. We have done that for a number of players. We have actually tried to make them understand the need for governance. We have also called external parties to assist them to put the right structure in place and have good governance. This form of assistance by Access Bank has encouraged a good number of indigenous players.  It is not about coming to borrow, but when they come to us, we help to put their companies in the right perspective to follow good steps as a player for the long run.

    What are you doing to collaborate with the Department of Petroleum Resources (DPR), to address  theft  of crude oil from pipelines owned by the international oil companies (IOCs), but used by indigenous players, and the impact on cost per barrel?

    I talked about global best practices and must look at where we are going to operate as firms with the best practice, where is the deal trend that we should all focus on? Today, we have inefficiencies in the system and we can’t live and be okay with that. We want to identify what is making our production less efficient and see how we can team up and reduce the inefficiencies. When we say oil is costing $15 per barrel to produce, we are talking about removing the associated costs responsible for the inefficiency such as the militancy in the Niger-Delta, the issue of down times and all that. After the removal of these undetermined cost elements, we can then say what is the optimum production cost per barrel?

    That is what we are aiming to achieve. If you look at the cost issue, Saudi Arabia is producing for less than $10 per barrel. Even Ghana here, the cost of production per barrel is not as high as the cost production of oil in Nigeria. So, a lot can be done. I am not blaming the oil companies for what we have today but I am saying as a system we are still inefficient and we must work together to minimise inefficiency so that we can have a going concern that is sustainable.

    While speaking at the panel session, you said your bank has a window that will it do more than 10 per cent funding in the oil sector. Please expatiate on this?

    I didn’t say 10 per cent. The Central Bank of Nigeria (CBN) during the last quarter of last year issued a circular that banks total loans to the oil and gas sector should not exceed 20 per cent of their portfolio. Before then, the policy was that a bank could finance 20 per cent downstream, 20 per cent midstream and 20 per cent upstream. And because the circular was issued towards the end of the year, virtually all the banks could not comply with that policy. The CBN had to suspend the policy for now. So, as at today the old policy is still what is applying which means as a bank, you can lend 20 per cent downstream, 20 per cent midstream and 20 per cent upstream. The limiting factor today is the bank’s single obligor limit. That is to say, a bank cannot lend to one obligor, 3 per cent of the shareholders’ fund. And today we have banks that have up to N500 billion of the shareholders’ funds. So, they can lend up to a N100 billion if a particular bank so desire to lend to one obligor. That is why I am saying the banks today have the capacity. The CBN two weeks ago said Nigerian banks are well capitalised, that shows that Nigerian banks are actually strong enough to support the sector. We are ready, provided there is good governance.

    The CBN is worried over banks exposure to the energy sector – the power and the oil and gas sector and that you should reduce your exposure to the industry…

    Yes and rightly so because the oil and gas and the power sectors have issues right now. You are aware of the drop in crude prices and if an oil company is not efficient, then the drop in price of crude can make their loans to start going bad. So, if banks have not gotten their borrowers to hedge their risk, then they are exposed. And once a bank goes down, it affects the entire industry because there is what we call the ‘Contagion effect.’ We have banks that are called all CPs and non-Cps, the ones that are considered to be very important in the system. If anyone of the CPs is brought down because of oil and gas then the whole industry will have a contagion.

     Why then do you think that the current slide in oil prices is an act of God?

    No, what I was trying to say is that sometimes things are allowed to happen by God because they will teach you a lesson that you needed to learn. We are too dependent on oil as a nation. Like I said, the whole of Africa, we have only 8 per cent of the global oil reserves and Nigeria has 2.25 per cent of the reserves. So, why should that 2.5 per cent be our sole focus? It should be one of our resources. We should have a way of having a broadened income base for the economy. It calls for a rethink.  For instance, to say that we are too reliant on oil, let us think of agriculture and other areas where revenue can be earned as a nation.  That way we are better for a long run as a nation.  So, to that respect the slide in oil price is a blessing in disguise.

    Aside the corporate governance, especially in the power sector, what are your observations and what advice do you have for them?

    Power is a different issue. I don’t want to go into power because it involves a lot of issues with government doing their own part.  But I think what banks want to finance are bankable projects. Bankable implies that the risk that they can see is mitigated. In this case, the bank will tell the customer that look I can’t see my way in and out so I won’t lend to you as a customer. But note that the money banks are using to trade is not their equity, they are funds from depositors. The bank is expected to pay customers back as at when required. So, banks can’t risk their deposit so much. They must ensure that they have enough skills to appraise the risks in any sector and know the extent to go such that when depositors come and ask for their deposit they can easily pay them without controversy.

    Concerning banks ability to finance a project worth $500million, can you respond to a request from any indigenous firm asking for this amount to finance a single project today?

    Again let me restate what I said. I said some banks have enough shareholders fund to support lending half a billion dollars to any project. Access bank is one of the top four banks in the country today. The bank has huge capital to raise support for indigenous players. Whether we will lend half a billion to a company is a different ball game. I am not sure I will want to sit down today at Access Bank and lend half a billion to an indigenous company. I have a risk structure that I must comply with. In Access Bank, there is so much of good governance that is entrenched. What I do as Executive Director must be sanctioned by my risk and control team. We have a lending policy that is well entrenched in our governance framework that we must adhere to. So, the extent to which I lend must be in line with the law and in line with what I see as risk that I can take.

    What message has Access Bank  for Indigenous operators?

    There is very bright future for the indigenous producers. Nigerian banks are willing and able to support them, provided they put in place the right structures that will ensure good governance that optimises production and enhances efficiency.

     

  • NIPP plants buy gas at subsidised rate, says DPR

    NIPP plants buy gas at subsidised rate, says DPR

    The Federal Government sells gas to the 10 power plants built under the National Integrated Power Plant (NIPP) by the Niger Delta Power Holding Company Nigeria (NDPHC) at the subsidised rate of $1.8 per 1000 standard cubic feet (scf) as against the fixed price of $2.5, it has been learnt.

    The Deputy Director, Gas Monitoring and Regulation, Department of Petroleum Resources (DPR), Antigha Ekaluo, told The Nation that the government mandated gas suppliers to sell to NIPP plants at that rate.

    Antigha, who spoke on the sideline of a stakeholders’conference, with the theme: “Implementation of the Nigerian Gas Transportation Network Code (NGTNC)”, in Lagos, said the plants were buying gas from the international oil companies (IOCs) and the Nigerian Gas Company (NGC).

    The plants have the capacity to provide a combined 5,000 megawatts (MW) of electricity to the national grid. The plants include: Geregu, Calabar,Egbema, Ihovbor and Gbarain.

    Others are Sapele, Omoku, Alaoji, Omotosho and Olorunsogo.

    Antigha said the plants were built and put in the charge of the NDPHC.

    According to him, the decision by gas suppliers to sell the product to the power firms at that rate was influenced by the forces of demand and supply.

    He said: “The Federal Government pegged the price of natural gas at $2.5 per 1,000 cubic feet per day for power firms, but the price of gas to Methanol, fertiliser and other companies is $3 per 1,000 cubic feet.  We have it on good note that many of the NIPPs get gas at $1.8 for production. This marks a cut in the gas price by $.7. The decision to sell gas at a price lower than $2.5 was not from the government.The gas suppliers in their own wisdom decided to sell it at $1.8. This is market forces at play.”

    “For methanol, fertiliser and other gas-based industries, they are expected to buy gas at $3 per 1000 cubic feet. The price in actual sense may turn out to be different. This has happened before the introduction of the Nigerian Gas Transportation Network Code. We want the same thing to happen as the government begins the implementation of the code. What we are saying is that the forces of demand and supply should be ruling the gas market.

    He said the government was providing incentives to gas users, especially those that have lean purses.

    Also, the General Manager, Gas, Nigerian National Petroleum Corporation (NNPC), Sam Ndukwe,  said the corporation was leading the transformation in the gas sector, especially in marketing and use of gas for domestic purposes.

    He said the government was planning more infrastructure to help  grow the sector. “Development of investments in gas vis-a-vis, making it readily available for users across the value chain, happens to be my key portfolio. We are trying to have additional infrastructure in the next five years. We are building new pipelines. The Trans Nigeria Gas Pipelines is one of such pipelines,” he said.

    He said the issues on use and sale of gas are contained in the Petroleum Industry Bill (PIB), adding that there would be changes to be effected in the sector when the bill is passed into law by the National Assembly.

    Ndukwe said: “PIB anticipates growth in the gas sector. With the bill, stakeholders are expecting great transformation in the oil and gas sector. The issue of gas infrastructure and the impact on various aspects of the  economy are in the bill.”

    The spokesman of NDPHC, Yakubu Lawal, said gas is the major problem in the industry, adding that the company had completed the building of the power plants.

    He said it was not true that the company was delaying the privatisation of the plants by not completing the project. He stressed that the firm had done its own part of the job.

    “Everybody knows that gas is the problem in the industry. Gas is a feedstock which the power plants need to produce optimally. The goal of our firm is to build the plant, and not to provide the gas,” he added.

     

  • Abuja power station, refinery delayed by funds, others

    Abuja power station, refinery delayed by funds, others

    Lack of support from banks, bureaucratic bottlenecks, infrastructural deficit in the host communities, among others, are responsible for the slow pace of work at the proposed power station and modular refineries in Abaji, the Federal Capital Territory, the Managing Director, Jehata Nigeria Limited (owners of Abuja Power Station in Abaji), Jameel Jammal, has said.

    He told The Nation that the resolve of the company to build the power station and the refineries was borne out of the desire to improve the energy needs of Nigerians, adding that funds have hindered the project.

    He said local banks have refused to show interest in the project by not lending to the company. “One of the problems facing the project is funds. Banks are not ready to make funds available for the project. Besides, they are not ready to assist by way of standing for the company as guarantor. When you are bringing foreign investments into the country, you need a local bank to stand for you to guarantee the foreign loans you are going to use for the project.  But, this was not forthcoming,” he said.

    He said the company is awaiting  the government to approve the land for the project. “We have been waiting for approval of the land by the management of the Federal Capital Territory.  We want the Minister of Federal Capital Territory to intervene to get the land. We are not asking for the land for free.  The communities in which the land is located are cooperating with us. They have welcomed us. But getting approval is a problem.  Besides, there are no basic amenities in the area. Anytime there is a rain, the inhabitants of the area cannot come out because of environmental damages from flood. They are happy that we are coming to build a new town for them. A town that would boast of electricity, water, and gas, among others.”

    Jammel said the modular refineries will refine 25,000 barrels of crude oil per day, adding that the refineries will have five different lines of production. “There would be kerosene, Premium Motor Spirit premium motor spirit (PMS), AGO (diesel), jet fuel, and gas section. It will be a big project covering expanse of land. The stage we are is getting the land. We are just buying time on this issue. We believe that there would be a change in the FCT administration; we believe that the new administration when it comes would help us. We have gone to the Presidential Task Force on Power to lay our complaints. Till now, no positive response, the whole project is being frustrated,” he added.

  • Marginal fields operators urged to develop gas offshore in Lagos

    Marginal Fields operators have been advised to develop gas fields offshore in Lagos.

    The Managing Director, Frontier Oil Limited, owner of the Uquo Marginal Field in Oil Mining Lease (OML) 13 onshore, in Akwa Ibom State, Thomas Dada, who gave this advice, said gas revolution had started.

    He said though it is slow, it would begin to gather momentum soon, noting that there is abundant gas offshore in Lagos.

    Quoting statistics, he said about 60 per cent of power generated in the country is consumed in the Lagos, adding that there is the need for the development of gas resources to serve the needs of the people living in the state.

    Speaking with The Nation in Lagos, Dada said in the next 10 to 15 years, there would be a major improvement in the way gas is harnessed and used in the country. This, he said, would not only ensure the speedy growth of the country’s economy but would also improve the quality of life of Nigerians

    Dada said: “It means that people have to focus on sound business case to develop those gas resources. And in Lagos a consumer can pay higher price than in other places. They should find a way of linking those who have gas to those who want to generate power and be a facilitator of the process.

    “If you turn gas into power it means that the factories can produce goods, it means that people can be employed locally to generate wealth and that can only be well for the Nigerian nation. It means a major improvement in the quality of life of every individual in the country. It will have economic benefits as well as better the quality of life.”

    He reiterated the urgent need for the government to stop or curb pipeline vandalism in the country.

    He noted that Lagos gets its gas from Escravos in Delta State for Egbin Power Station and that there had been increasing capacity, urging the government to look for a way to overcome pipeline vandalism.

    “If pipelines were not constantly attacked, gas will be coming from the Delta region to Egbin Power Station, which is the biggest power station in the country, but it is not firing enough turbines because of inadequate gas. We need to solve the important problem of pipeline vandalism, because it is sabotage and there is no economic sense in attacking a gas pipeline, you cannot do anything with it. So it is pure economic sabotage and the government should take it in that manner and deal with it squarely.”

    Dada charged the operators to increase their efforts to bring the fields into production. He said the marginal fields have the potential to contribute to the development of oil and gas industry in the country. “We want more success stories because if the success story goes into the wider world it can only be good for Nigeria as a nation,” he added.

    He said Frontier Oil Limited was working towards becoming one of the leading indigenous exploration and production (E&P) firms in the country and a mid-size regional player.

  • How legal tussle is hindering acquisition of Chevron’s assets

    legal tussle is delaying the planned acquisition of Cheron’s divested oil blocks by Seplat Petroleum Development Company Plc, Amni International Petroleum Development Company Limited, Belema Oil Limited.

    The planned acquisition is expected to boost indigenous participation in the exploration and production (E&P) segment of the oil and gas industry.

    A source told The Nation that it is important for the parties to resolve the issue amicably in the interest of the industry.

    The problem started in 2013 when Chevron Nigeria Limited put up for sale three acreages oil mining leases (OMLs) 52, 53 and 55. the oil giant said it would sell the three oil blocks to one preferred bidder. Over 30 firms bidded for the assets.

    When the bids were opened, Brittania-U bidded $1.6 billion, it later revised it to $1.015 billion; while the Seplat Consortium consisting of Seplat, Amni and Belema bidded $800 million.

    The consortium, which was declared the preferred bidder, signed the Sales and Purchase Agreement (SPA) on November 28, last year with Chevron.

    Not satisfied with the outcome of the deal, the highest bidder, Brittania-U went to court, seeking an injunction to restrain Chevron from selling the oil blocks to the Seplat Consortium.

    The High Court in Lagos granted Brittania-U’s prayers; it further granted an extension while the issue of jurisdiction was pending. The Seplat Consortium went to the Appeal Court to challenge the High Court’s injunction. The Appeal court ruled in Seplat’s favour and vacated the injunction but Brittania-U headed for the Supreme Court to contest the appeal.

    But Chevron and Seplat Consortium obtained Ministerial Consent for the deal when injunction was not in effect and on February 5, last year, they  announced that they had completed the acquisition of 40 per cent interest in OML 53 with NNPC holding 60 per cent. Seplat was named as the operator. Seplat also acquired 56.25 per cent equity interest in Belema to provide financial and technical support to Belema.

    But on February 24, this year, Hon. Justice Fabiyi of the Supreme Court of Nigeria after listening to a request by Rickey Tarfa (SAN), lawyer to Brittania U, who urged the apex court to grant an interlocutory injunction requesting Chevron to stay action on the transfer of the assets, OML 52, 53 and 55 to Amni, Seplat and Belema Oil, and to Chevron/Seplat’s lawyer D. D. Dodo (SAN) told them to advise their clients to respect the court’s order and not take any action that would affect the case. The contending parties are awaiting the Supreme Court.

    The defence, however, said that since the Ministerial Consent was obtained when the injunction was vacated, the law was respected. It also added that Chevron didn’t say the assets would be given to the highest bidder but to the preferred bidder.

    Stakeholders have been asking why similar transactions were carried out and concluded by Shell without any problem while Chevron’s is enmeshed in controversy.

    Shell sold its interests in OMLs 4, 38 and 41 to Seplat, a special purpose vehicle (SPV), formed by Shebah and Platform Petroleum.

    The Chief Executive Officer of Seplat Austin Avuru said:  “Seplat as company that prides itself with corporate governance and due process will not do anything that offends the laws of this country. We went through a very rigorous process of bidding for an asset from Chevron and we signed Sales and Purchase Agreement with Chevron. We ran the full course and got the ministerial approval, concluded the transaction with Chevron. We broke no laws, whatsoever.”

     

  • Indigenous firms float aviation fuel company

    Indigenous firms float aviation fuel company

    Six indigenous oil firms have pooled resources to set up a Joint Users Hydrant Installation (JUHI 2) firm to enable them have a large chunk of the aviation fuel market, which is dominated by International Oil Companies (IOCs).

    The firms are Masters Energy Limited, CITA Petroleum Limited, ASCON Oil Nigeria Limited, ARCON Petroleum, Ibafo Oil and Techno Oil.

    Multinational oil giants, such as Mobil, Texaco, Chevron and Total built the JUHI 1.

    Shell Petroleum Development Company (SPDC) and British Petroleum, which metamorphosed into African Petroleum (AP) and later Forte Oil.

    Director, CITA Petroleum Limited, Mr. Thomas Ogunbangbe, said the building of JUH1 2 by the firms was part of efforts to establish the local oil firms in the aviation fuel business. He said foreign firms have dominated the business for decades, adding that the indigenous firms have  built  Joint Users Hydrant Installation(JUHI  2)  platform to check the dominance of oil majors  in the country.

    Ogunbangbe said the firms spent billions of naira to provide the facility, adding that they have stamped their feet in that segment of the market.

    He said the aviation fuel installation platform has boosted the market and serve as alternative to the one built by international oil firms.

    He said: “Joint Users Hydrant Installation 2 is wholly owned by the Nigerian companies as part of strategies to provide uninterrupted fuel supply to airline operators and further win more market share. The project is massive because it costs the firms billions of naira to provide it.  Six companies were behind the project. They are ARCON Petroleum, ASCON Oil, Masters Energy, Techno Oil, Ibafo Oil and CITA Petroleum.’’

    Ogunbangbe said the JUHI 2 was located a few metres to CITA fuel storage plant at the Murtala Mohammed International Airport, Ikeja, Lagos. He said that oil firms get their fuel through the pipelines constructed by the Nigerian National Petroleum Corporation (NNPC) to ensure uninterrupted supply of the product.

    “There is a pipeline from Atlas Cove to Mosimi to the airport. The first JUHI was built by foreign oil firms, while the second one was constructed by local oil companies. To protect the pipelines from destruction, NNPC has provided a station around the airport to monitor the pipelines and further ensure that fuel was distributed to the oil companies,” he added.

    The spokesman of Masters Energy Limited, Emmanuel Iheanacho, said his firm is one of the stakeholders that put up JUHI 2 to supply fuel to airline operators. A consortium of oil marketing firms provided the facility, adding: “Masters Energy is one of the partners in JUH1 2 project. The facility was in line with the aspiration of the oil firms to record growth.”

    The Lagos Zonal Trustee, Independent Marketers Branch of NUPENG, Kofoworola Oladehinde, said  Mosimi is one of the biggest oil storage facility that supplies NNPC depots in Ejigbo (Lagos), Apata in Ibadan (Oyo State), Ilorin depot and others. The NNPC constructed pipeline from Mosimi to some parts of Lagos to enable it supply petroleum products to users.

    “What I know is that pipelines were run from Atlas Cove to Mosimi depot where I work, to some designated places in Lagos. It is possible there are pipelines connecting Lagos airport with Mosimi depot. Aviation fuel is different from the ordinary fuel used by vehicles. Even if a pipeline from Atlas Cove supplies airport with fuel, it still needs to be treated to fit into use of aircraft,” he added.

  • ‘Non-passage of PIB delaying investments in oil, gas sector’

    There has not been any major investment in the oil and gas sector in the last four years, due to the non-passage of the Petroleum Industry Bill (PIB) by the National Assembly, the Managing Director and Chief Executive Officer, Frontier Oil Limited, Dada Thomas, has said.

    He said Nigerians should hold the lawmakers responsible for the non-passage of the PIB.

    Thomas said: “I don’t believe that the bill would be passed into law before this National Assembly goes. I think the PIB will have to be addressed by the incoming National Assembly.’’

    He said as long as there is uncertainty surrounding the bill’s passage, the exploration and production firms might not want to invest.

    “The damage is that there has not been any exploration in Nigeria to find new oil or gas reserves. We need to make sure that the cloud of uncertainty, which is the lack of passage of the PIB is removed so that people know, the rule of the game. With the uncertainty removed, the regulators will be able to know what their roles and responsibilities are, and every stakeholder, including the communities, will know the rules of the game in the operation of the industry,” he said.

    Thomas urged political leaders   to put politics aside and think of the economic well-being of the people and the nation. He said: “They should put politics aside and do what is good for Nigerians and investors so that we have a bill that would address all the concerns and needs of the various stakeholders including the investors. We need to show commitment to the growth of the industry.”

    Also, the Managing Director, Treasure Energy Resources Limited, Rivers State owned Oil and Gas Company, Eddie Wikina, in a telephone interview, agreed that the government is prolonging investments in the country due to the non-passage of the bill.

    He also listed corruption and insecurity as other major factors affecting investments in the sector.

    According to him, if the bill is passed into law, it will help to check corruption in the Nigerian National Petroleum Corporation (NNPC). He said that the government has  misapplied the funds appropriated to the corporation by put them in wrong priority areas.

    Since the NNPC is not autonomous of the Federal Government, it acts on instructions.

    Wikina claimed the government was aware of this and continued to play down the passage of the bill.

    “Such a bill as the PIB has been shrouded in so much secrecy that certain unscrupulous elements begin to profit from the quagmire. Such a bill should be openly debated in the Senate and passed immediately in the interest of the nation,” he stated, urging the lawmakers to pass the bill before they go in May.

  • More gas filling stations coming

    The Nigerian National Petroleum Corporation (NNPC) will provide more outlets that will sell Compressed Natural Gas (CNG) to users of cars that run on such gas, the Group Executive Director, Gas & Power, NNPC, Dr. David Ige, has said.

    At a stakeholders’forum in Lagos, Ige said the development became necessary to enable users get the product to fuel cars.

    He said a pilot scheme on the use of compressed natural gas for cars was initiated in Benin City, the Edo State capital by NNPC, adding that the scheme was a success.

    He said: “About Compressed Natural Gas for cars, let me give you a brief analysis of what NNPC has done.  The Corporation started a pilot project in Benin City and it was successful.  There are six gas filling stations in Benin City. There are over 4,000 cars running on natural gas in Benin. It is possible to drive a vehicle from Benin to Lagos on gas. NNPC would replicate this in other parts of the country soon. We would make sure that we make progress in that direction.”

    Ige said a new gas station was opened on the Lagos-Ibadan Expressway to enable people buy gas for their cars.  He said there was low awareness on compressed natural gas, promising that NNPC would do something on it. “It is quite unfortunate that many people do not know that there are cars that use natural gas in the country,” he added.

    He said the government is committed to the development of the nation’s gas industry, adding that more people  would  access  gas for their cars soon.

    According to him, efforts are being made to ensure that people use gas for socio-economic activities, noting that Nigeria has gas that is enough to met the growing needs of the populace.