The Nation Newspaper

Category: Energy

  • NPDC’s production hits 170,000 bpd

    The Nigerian Petroleum Development Company (NPDC), the exploration and production subsidiary of the Nigerian National Petroleum Corporation (NNPC), has increased its oil production from 140,000 barrels per day (bpd) to 170,000 bpd.

    NNPC Group Managing Director, Andrew Yakubu said NPDC also produces over 570 million standard cubic feet per day (mmscf/d) of natural gas, which makes it the fifth largest crude producing company in the country.

    He said: “As of today, NPDC is proudly the fifth largest producer of crude oil as well as the leading gas supplier in the country. Its production increased from 70,000 bpd when we came in to over 170,000 bpd and with reserves of over 2.1 million barrels. Similarly, NPDC has significantly increased its gas contribution to the domestic market to over 570 million standard cubic feet per day (mmscf/d).”

    The Managing Director of NPDC, Victor Briggs, told reporters in February while unveiling the company’s programmes and targets that it was producing 140,000 bpd and intended to increase it to 300,000 bpd by 2018, while gas production will rise to 900 million standard cubic feet per day in the same period.

    Briggs said that the company is expected to increase its oil production from the 140,000 bpd to 160,000 bpd by end of the year, while its gas supply, which was 410 million standard cubic feet per day (mmscf/d), would be scaled up to 600mmscf/d.

    He noted that the company plans capital expenditure budget of $1.8 billion per year for this year and 2015, and between $700 million and $800 million in 2016 and 2017, adding that the oil blocks the management acquired from Shell Petroleum Development Company Limited (SPDC) Joint Venture, significantly boosted NPDC’s output.

    With the production, the company has exceeded its production target for for the year by 10,000 bpd.

    The NNPC chief also explained that the growth in NPDC’s oil and gas output was achieved through a combination of measures including drilling of additional assets and acquisition through the assignment of Federal Government’s interests in some fields at a consideration.

    “NPDC plans to sustain the growth process through consolidation of the existing assets, reopening closed assets and investment in new assets development. The focus is to grow NPDC to a medium sized exploration and production (E&P) company, with the capacity to produce over 250,000 barrels of oil per day the year 2020,” he added.

    Yakubu also said since he took over the leadership of NNPC two years ago, the management has escalated the exploration of its subsidiaries, the Frontier Exploration Service (FES) and the Integrated Data Services Limited (IDSL), which resulted in acquisition of a total of 6,102 square kilometres of seismic data including 818 square metres acquired for FES operations in Chad Basin in phases 3, 4 and 5 combined.

    There is also acquisition of 266 square kilometres of seismic data in the phase 6 that is ongoing by IDSL in the Chad Basin even at the height of the security challenges. We have also grown IDSL land acquisition capacity by additional three seismic party crews, he added.

  • ‘How to solve power problem’

    A renewable energy campaigner, Prince Adekola Timothy Okedele, has urged Nigerians to embrace renewable energy technologies to address the power problem.

    Speaking in Lagos after a  tour of some Southwest states on the need to adopt alternative power sources.

    Okedele said a state of emergency would be declared in  power sector to reap the fruits of the unbundling of the sector.

    He said in 2012, his company to support renewable energy actualisation, advised the Bank of Industry (BoI) to finance its renewable energy sensitisation, adding that the BoI and the United Nations Development Programme (BOI/UNDP), support about 30 small and medium scale enterprises (SMEs) in renewable energy promotion.

    Wondering why his firm did not benefit from that grant, he said it had become necessary for the bank to make public the criteria for benefiting from such grants.

    He explained that the grant would have catalysed moves that would have led to the invitation of some of his technical partners that have superb global records in renewable energy development, installation as well as energy saving technology.

    Okedele, however, lauded BoI for assisting the beneficiaries of the scheme in 2012, pointing out that such grants should continue.

    He said he promoted renewable energy technology in Nigeria on self- finance since 2010. He urged the government to abolish obsolete policies, which hinder smooth public-private partnerships, adding that such policies constitute bureaucratic impediments to getting grants for research and development from the government. These policies slow down the wheel of economic progress, he added.

    The ex-Customs officer, who was in South Korea to participate at  last year’s Energy and Technology Exhibition (ENTECH), said a new vista of opportunities iwas opened for Nigerians to be part of ENTECH 2014 and International Symposium on Alcohol Fuels (ISAF).

    He condemned a situation where good proposals meant to develop a sector as significant as power, are left untreated for as long as three years in an administration with just four’s years tenure. He emphasised the need for all hands to be on deck to accelerate development.

    He advised government agencies and ministries to eradicate the culture of treating invitations to foreign technology summits with levity, as they are necessary to equipping the youths with the basic technical insight into technology development in the country.

  • Mobil gets nod for N6b community projects

    Mobil Producing Nigeria Unlimited (MPN), operator of the Nigerian National Petroleum Corporation (NNPC)/MPN joint venture (JV),  has received the approval of the National Petroleum Investment Management Services (NAPIMS) execute its special community assistance projects worth N6 billion in Akwa Ibom State.

    The projects, according to the firm’s General Manager, Public and Government Affairs, Paul Arinze, would address areas, such as education, health and capacity building and would be executed in eight local government areas as part of the JV’s long term, multi-year N24.6 billion Social Investment Package (SIP) for the state, which was announced in July, last year.

    “We acknowledge the leadership of Akwa Ibom State government in moving discussions on these projects forward,” said Nolan O’Neal, chairman and managing director of MPN.

    “We are confident that, through mutually beneficial relationship with communities where we operate, and the many businesses and vendors that provide necessary products and services, will we see the benefits of oil and gas operations multiplied as wide as is possible,” he added.

    Following the announcement, MPN started with naming the first three project managers responsible for supervising the execution of the community-nominated projects: E & T Integrated EMS Limited, Union Consultants and Bil Integrated Systems Limited.   These firms were selected following a competitive technical bid and evaluation, supervised by NAPIMS and MPN.  They would manage execution of projects in the Ibeno, Eket and Onna Local Government Areas, with their service covering verification of the community-nominated projects and engagement of local contractors, Arinze said.

    Selection of Project Managers for the five other local government areas would be initiated after planned discussions with the state government and representatives of the communities.

  • BPE: Sale of refineries will take two years

    BPE: Sale of refineries will take two years

    It will take two years to privatise the four refineries, the Bureau of Public Enterprise (BPE) has said.

    BPE Director-General Benjamin Dikki said  the explanation became necessary to enable Nigerians understand the complexities of selling the Kaduna,Warri and Port Harcourt 1 &2 refineries, which have combined capacities of 445,000 barrels per day (bpd).

    He said the 10 investors that got licences have not done anything because of poor investment climate.

    Last January, this year, the government privatise the refineries but later changed its mind, following an outcry.

    The organised labour, including the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and National Union of Petroleum and Natural Gas Workers (NUPENG), kicked  the plan because the government did not  follow due process.

    Dikki told The Nation that the government has not decided on whether to privatise the refineries or not because the issue is multi-faceted. He said there are various stages in privatisation, adding that each stage requires at least two months to enable the Bureau do a good job.

    He explained that a committee comprising representatives of the fiscal agencies would be set up to provide modalities for selling the refineries. The committee, he further explained, would request for expression of interests from prospective financial advisers, who will submit their proposals, which will be opened by the committee who will evaluate them and announce the preferred advisers. This exercise alone, Dikki said, would last about three months.

    The successful advisers, he said, would after the processes of expression of interests and submission of bids by prospective investors, carry out due diligence on the bidders.

    According to him, the advisers will look at the technologies/equipment the bidders are using, their technical capability, viability, drilling, piping, and pipeline network at their disposals, among other factors. The advisers will also study the dynamics in the sector, after which they will submit their recommendations to the committee for necessary actions.

    Dikki said the due diligence will capture these variables, adding that the exercise would last about nine months.

    He said: “The committee will review the reports of the advisers, and determine the options needed to make them workable. The committee would submit the reports to the National Council on Privatisation (NCP) who will provide the recommendations to the President.  The actual privatisation starts after the President has approved the recommendations.

    “Even if we start the process today, privatisation would not start until next year. Thereafter, we determine the transaction structures/modalities and advertise for expressions of interests. At this point, we would give investors six weeks to express interests and shortlist those we think have the capabilities to run our refineries, and pipeline networks for oil and gas. Besides, we will reach an understanding with labour and that would also take some time. We are still a long way off.The implementation of the privatisation procedures will take a longer period of time.”

    According to him, failure to reach an understanding with the labour would affect the transition from public to private ownership of refineries.

    Dikki explained that the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA), play regulatory roles,  stressing that the development is inimical to the growth of the gas industry.

    “There is the need to separate policy formulation from regulation to achieve results in the industry as we have done in the telecomss sector. The policy formulation lies with the Ministry of Information and Technology, while the regulation lies with the Nigerian Communication Commission (NCC); while the operators include Etisalt and MTN, among others. No person should play two roles. An operator must not involve in policy formulation; a policy formulator must not be involved in policy regulation,” he added.

  • Court jails man, son for attacking Ikeja disco worker

    •Equipment vandals remanded

    Two men, Suleiman Amusa and his son, Owolabi, have been jailed for attacking a member of staff of the Ikeja Electricity Distribution Company (IKEDC) with a machete while on duty at Agbowa-Itokin Road, in the outskirts of Ikorodu, Lagos State.

    The company’s spokesman, Pekun Adeyanju, said the conviction came on the heels of increased surveillance by security agencies who have pledged to prosecute offenders as well as safeguard the lives and property of owner companies following rising cases of assault by restive youths and groups.

    In a judgment by Magistrate P. L. Hopeto at the Badagry Magistrate Court 2  under the charge number IKD/C/24C/2010, both defendants were convicted and sentenced to six months’ imprisonment with hard labour.

    In another development, Adeyanju said three men were almost electrocuted in Ilasamaja, Lagos State while attempting to steal an erected electricity pole on Limca Road, Isolo. The leader of the suspects has been remanded at the Kirikiri Prisons awaiting trial process while the two others who were affected by electrocution are being treated in an undisclosed hospital.

    He said IKEDC had been receiving support of the law enforcement agencies in the state to protect its workers aginst assault.

    Consequently, a model for increased surveillance and rapid response support is being adopted to ensure protection of the investments and safety of workers in IKEDC and other power companies across the country.

    In one of its stakeholders’ engagement meetings with security agencies, IKEDC officials were assured of the support of the Lagos State Police Command.The Commissioner of Police, Lagos State Command, Mr. Umar A. Manko, pledged to assist the company by working out strategies to combat vandalism. He urged Nigerians to adopt an ownership approach to critical infrastructure by reporting cases of vandalism to security agencies.

    During a visit to the IKEDC Corporate Headquarters, the Director of State Security Service, Lagos State Command Mr. Ben Achu pledged to assist the company in combating vandalism.

    “Power is at the heart of all development and we are on course in achieving this in Nigeria. We will work with IKEDC in the area of monitoring and soliciting the support of community leaders in protecting electricity equipment in their domains,” he said.

    Also, the Nigerian Security and Civil Defence Corps (NSCDC) also pledged its support to IKEDC during a visit to the company. The NSCDC team led by the Commandant Critical Infrastructure Protection and Mr. J. I. Iyogho, assured that it would mobilise its personnel for monitoring and surveillance of IKEDC network and installations.

    IKEDC’s Managing Director, Abiodun Ajifowobaje, praised security agencies in Lagos, adding that the company will continue its ongoing community relations and engagement to carry along the customers.

  • Fed Govt may revive gas cylinders firms

    THE Federal Government is planning to revive the Nigerian Cylinder Manufacturing Company and Midland Cylinder Manufacturing Company, the President, Nigerian Liquefied Petroleum Gas Association (NLPGA), Dapo Adesina, has said.

    Their planned revival is to boost the production of new gas cylinders ahead of the phase out of old cylinders by the Standards Organisation of Nigeria (SON). Adesina said the revival of the  firms located in Ibadan, Oyo State and Abeokuta, Ogun State, would help in implementing the policy.

    He said the SON and the Department of Petroleum Resources (DPR) would find it difficult to achieve the policy until the firms were revived.

    He said: “We had talks with the governments on issues affecting the liquefied petroleum gas sub-sector and we were told that plans to revamp the companies were underway. The government is taking a holistic approach to revive the companies by addressing problems, such as power and materials.

    ‘’It would be difficult to regulate those that are selling sub-standard gas cylinders when we cannot produce them locally.”

    He said the cost of procuring steel, power and other components used in producing cylinders is high, adding that the development resulted in the closure of the companies.

    “The companies have divested into areas where they hope to get comparative advantage since it was not economical for them to produce gas cylinders. For them to produce gas cylinders again, the bottlenecks must be removed,” he added.

    According to him, the gains of removing the old cylinders from the market will be immediate giving the problems in the oil and gas sector.  He said it had been difficult getting the required gas for domestic market, adding that the issue has multiplier effects on the economy.

    Adesina said SON is required to monitor the marketers of gas cylinders and further ensure that they comply with the policy.

    Efforts to get Bede Obayi, the Head of Enforcement, SON, to comment on the issue proved abortive as the phone calls and short messages sent to him were not replied.

  • NIPCO gives gas cylinders free in Auchi

    To boost liquefied petroleum gas (LPG) use, the Nigerian Independent Petroleum Company (NIPCO) has given gas cylinders and accessories free to some women in Auchi community of Edo State during its ‘switch over to gas’ campaign.

    NIPCO’s Corporate Affairs Manager, Lawal Taofeek, who represented the company’s Managing Director Mr. Venkataraman Venkatapathy said the event, which took place in the palace of the traditional ruler, the Otaru of Auchi,  Haliru Momoh, was organised with a non-governmental organisation called Gas-to-Health Initiative (GTHI).

    He said the objective of the event was to strengthen calls for a paradigm shift of the market to LPG.

    The Managing Director, Pipelines & Products Marketing Company (PPMC), Prince Haruna Momoh, in his good will message to the beneficiaries of the cylinders, assured the community that the government would continue to support initiatives aimed at promoting safe and healthy use of LPG, which the nation is richly endowed with and the  interest of Nigerians.

    Momoh ,who was represented by the Manager, LPG PPMC, Betty Ugona, said the rural dwellers and the semi-urban communities are main priorities of the government in view of the large cooking they do. ‘’This initiative will encourage them to use gas for their cooking,’’ he said.

    The PPMC chief, who is also the chairman of the Board of Trustees of the GTI, praised NIPCO for supporting the initiative, stressing that the cylinders would help boost efforts of the NGO and, ultimately, deepen gas by beneficiaries.

  • Amaechi promises steady power supply by 2015

    Amaechi promises steady power supply by 2015

    The Rivers State Government  hopes  to achieve uninterrupted power supply by next year.

    It has constructed new power plants and rehabilitated old ones to realise its dream, Governor Rotimi Amaechi told participants at the just-concluded Energy Environment and Investment Forum (EEIF) in Port Harcout, the state capital.

    The forum sought to find solutions to energy challenges and also connect project owners and solution providers to investors and buyers from the public and private sectors  to promote sustainable development of Africa.

    Amaechi explained that the event is part of his administration’s efforts to learn, share, review and take stock of the actions taken in the past while realigning its policy guidelines to achieve set objectives.

    He noted that with what the government has achieved in terms of power projects and other power projects being pursued by his administration, uninterrupted power supply is possible by next year.

    The governor said no society can  reduce poverty without adequately addressing its energy needs.

    He said: “Energy is the bond that connects economic, social and environmental development. It is a launching pad for economic growth and plays a pivotal role in any attempt to achieve sustainable development.”

    Amaechi noted that as a state whose local economy is highly dependent on revenue derived from finite and non-renewable hydrocarbon extraction, there is need to be proactive in every policy decision, adding that the state government has begun work on  various power projects to increase availability of electricity in the state.

    “We have constructed new power plants and rehabilitated old ones. Our focus is to achieve uninterrupted power supply across the state in 2015,” he added.

    He said the state government embarked on massive power development targeting 715 mega watts (MW) of electricity to ensure adequate power supply and is currently discussing with the Federal Government to secure approval to distribute its power.

    Besides, the state accounts for over 50 per cent of the oil revenue of the country and holds about 95 per cent of the natural gas put at about 200 trillion standard cubic feet.

    This provides enormous investment opportunities in both the upstream and downstream sectors of the oil and gas industry in Nigeria, he added.

  • Lagos partners firm on LPG use

    The Lagos State Commissioner for Energy and Mineral Resources, Taofiq Tijani, has called for more strategic partnership with Nipco Plc to  enhance the use of liquefied petroleum gas (LPG) also called cooking gas, for rural dwellers and low income earners.

    Such partnership, he said, would broaden options for the implementation of the government’s Eko Gas Initiative launched last year, noting the company’s massive storage capacity at its LPG plant in Apapa, Lagos.

    Speaking during a visit to Nipco pavilion at the just-concluded African Outdoor Advertising Conference & Exhibition hosted by the Lagos State Signage and Advertisement Agency, he said he was delighted to see the small cylinders showcased by Nipco.

    The Eko Gas scheme, he said, represents an integral part of the LPG project, aimed at encouraging the use of LPG and actualising the  administration’s efforts to ensure a safer and cleaner environment   reduce greenhouse emission.

    Tijani said Nipco’s contribution to boost LPG use has been substantial adding that the introduction of smaller cylinders would further deepen consumption as low income earners can easily afford it.

    He also solicited Nipco’s support in the provision of skids across the state to guarantee supply at all times, stressing that the government will provide an enabling environment for the actualisation of this objective. He explained that the skids were expected to serve as refilling plants for gas cylinders while also meeting the needs of the residents in the localities where they are located.

    “With Nipco and other stakeholders’ support, the skids can be placed in strategic points to guarantee    gas supply to end-users and Lagos residents can be assured of better health, a cleaner environment, more effective and faster cooking  times ,” he said.

    Nipco’s Manager Corporate Affairs, Taofeek Lawal, said the firm’s resolve to promote use of LPG  remains undaunted and that part of the strategy is the company’s participation at the conference.

    Lawal said since Nipco’s LPG plant was inaugurated in 2009, it has remained a benchmark in the sector especially in providing necessary infrastructure that aids supply of gas for domestic cooking.

    He noted that the 4,500MT storage facility with ancillary transport infrastructure to deliver gas to bottling plants across the country could fast-track actualisation of the Eko Gas initiative aimed at making Lagos residents switch to cooking gas.

    Lawal listed the precautionary measures for safety in using cooking gas to include lighting matches before switching on the burner, while cooking never leave the stove unattended to or allow children to operate an LPG appliance, ensure flexible hoses are as short as possible, fully visible and secured without joint leaks, inspect the rubber hoses regularly, replace if colour fades or when signs of wear /tear /damage are detected, and use appropriate pressure regulators and never tamper with the pressure settings.

  • Engineers to govt: fix refineries, use oil proceeds for devt

    The Society of Petroleum Engineers (SPE) has advised the Federal Government to use oil proceeds to create wealth for Nigerians and grow the economy.

    The Chairman, Society of Petroleum Engineers Nigeria Council, Bernard Oboarekpe, gave the advice at a briefing in Lagos on the activities of the society and its forthcoming yearly international conference and exhibition billed for August 5 and 8 in Lagos.

    He urged the prudent use of hydrocarbon to create wealth in order to survive the global shift to alternative energy. Oboarekpe explained that though oil reserves are depleting, there is nothing to fear about the depletion because Nigeria has abundant untapped hydrocarbon reserves.

    He spoke on the state of the refineries, which has compelled the country to depend on imported products. There must be concerted efforts by the Federal Government to return the assets to productive capacity to stop importation, he said.

    Oboarekpe said the ownership of the refineries do not matter to the Society, provided they are well run and the turnaround maintenance is done periodically.

    On the conference, he said its theme is: “Africa’s energy corridor: Opportunities for oil and gas value maximisation through integration and global approach.”

    The forum, he said, would focus on imperatives for deriving maximum benefits from the continent’s growing production capacity through growth that is laced with structural and economic transformation as well as development of infrastructure to support in-continent use; while maintaining the required balance to remain globally competitive.

    Oboarekpe said: “The conference will bring together industry leaders and experts to provide key insights, into the right strategies for resolving these imperatives. We have invited the Executive Governor of Lagos State, the Minister of Petroleum Resources; the Group Managing Director of the Nigeria National Petroleum Corporation, several heads of government organisations; Managing Directors and Chief Executives of industry corporations and companies, the academia and media practitioners to grace the opening ceremony. Outside our traditional state of the nation’s oil industry address from the leadership of the NNPC, there will be guest speakers’ presentations at the opening ceremony.

    “We are also expecting to hear from the Lagos State Government, on investment opportunities in the mega Lagos economic zone.”

    Other notable dignitaries and guest speakers include the Chief Executive Officer/Executive Vice President of SPE International, Mr. Mark Rubin; President, Dangote Group, Alhaji Aliko Dangote and Executive Vice Chairman, Famfa Oil Limited, Mrs. Folorunso Alakija.

    Other activities that would take place during the event include student chapters’ presentations contest, peer reviewed technical papers presentations (oral and e-poster), young professionals’ workshop, marginal field workshop and women development programme, Oboarekpe said.