The Nation Newspaper

Category: Energy

  • ‘Allsort Shop, TCP partnership target 7013MW’

    A project called Go Green Nigeria, Light up Nigeria, being undertaken by the Technical Consumer Products Incorporated of United States, world’s largest manufacturer of energy lighting bulbs and a Nigerian company – Allsort Shop Warehouse Limited- will add 7013 megawatts (MW) of power to the grid.

    The two companies plan to inject 100 million energy-saving bulbs into the power sector to check undue wastage of the limited power in the country and to save the climate and environment through reduction of carbon emissions from power generating plants.

    The partnership’s pilot scheme carried out in Oduduwa community in Kosofe Local Government Area, Lagos State showed a tremendous success, which necessitated the drive to apply the initiative nationwide. Similar initiatives had been carried out in other countries including Ghana and have proved to be both successful and sustainable.

    The President of Go Green Nigeria Project, Oyebode Oyeneye, a former director in the Federal Ministry of Power, told reporters in Lagos that the project is predicated on the outcome of the Oduduwa research and success story. He said his experience as a power engineer who handled some strategic responsibilities in the power sector, showed the Go Green Nigeria project would significantly complement government’s efforts and help in achieving the Federal Government’s road map on electricity and its power sector reforms.

    This, he said, would be achieved without building new power generation plants, adding that the result is instant and measurable.

    On the pilot scheme in Lagos, he said the community was having gross electricity supply challenges and after the partnership conducted study of the community and changed the incandescent lamps with the TCP energy saver bulbs, the supply improved substantially.

    He said: “The Oduduwa community was known for very poor electricity supply and as a result could not enjoy power supply because the feeder pillar and fuse of the transformer would cut off on account of overloading of the transformer. It is interesting to note that with injection of just 500 TCP energy saver bulbs in the community the load on the 300kva transformer serving the community dropped from 151 per cent to 131 percent. The amazing thing was the fact that the result was instant, without gestational period as usually experienced in power generation.”

    The Chairman of Oduduwa Residents Association, Dr. Onobule, who spoke on the development, said: “We are very delighted on the outcome of the study. The community is better informed on the need to embrace energy conservation and efficient use of energy. The community is better lit and the transformer has not broken down since the intervention which reduced the load on the community transformer.

    “If all the incandescent lamps in the country are replaced with TCP energy saver bulb, the electricity power crisis will come to end. This type of intervention was adopted by Ghana and today electricity is no longer a challenge to Ghana’s economy and it only distributed six million lamps to end her power crisis. The country saves over $3 million per month and $39 million per annum as a direct benefit of this venture.

    “Attaining the goal of distributing 100 million TCP energy saver bulbs through private sector-driven mechanism in the economy will achieve 7013MW, without building power generation. It will save Nigeria N1.3 trillion over the next 10 years. The project will also mitigate the effects of climate change by avoiding the generation of 101,760,000 pounds of carbon dioxide. This is equivalent to taking 430,000 cars off the road or planting of 17,354,000 trees. This project will impact positively on the economy.

    “To facilitate the take-off of the project, he confirmed that a memorandum of understanding has been signed with Technical Consummer Product Inc. on the designing, manufacturing and supply of the 100 million lamps under special arrangement with their partners in Nigeria. This fact was also confirmed on telephone by Mr Thomas Leucke, the president of TCP for Europe, Middle East and Africa. He said TCP manufactures the highest quality energy saver bulbs in the world, adding that their product leave very minimal environmental foot prints.

    He said that TCP accounts for over 70 per cent of energy saver bulbs in USA and Canada market. The company, he said, produces over 1.5 million lamps daily. He also said arrangement is underway with the Go Green Nigeria on recycling disused bulbs.

    Oyeneye also said the team is reaching out to relevant agencies of governments and institutions for endorsement, partnership and sponsorship of the project. The distribution of the 100 million lamps is planned for four years and the earlier this initiative is achieved the better for the country, he added. He said more information on the project can be obtained from its website www.gogreenng.com.

  • Siemens to install power plant at BUA’s cement

    Siemens Limited Nigeria has secured the contract for the BUA Group’s Edo cement factory power plant located at Okpella, Edo State, Nigeria.

    The contract, according to Siemens, involves the supply of three units of Siemens Gas Turbines SGT-500 manufactured by Siemens Industrial Turbo Machinery AB in Finspang, Sweden.

    The project is unique because Siemens will be installing the SGT-500 for the first time in Nigeria in its 50 years existence. The SGT-500 turbines are unique for the African market because they offer flexibilty in optimising investment returns, extremely low maintenance costs, high reliability and limited number of personnel required for their operation and maintenance, Siemens said in a statement.

    BUA Group acquired Edo Cement in 2010 and has since then been committed to improving the state of the factory to a world class standard and its move towards backward integration. The contract between the BUA Group and Siemens is to further buttress this commitment.

     

  • Shell makes $1.7b from upstream divestment

    Shell makes $1.7b from upstream divestment

    The Royal Dutch Shell raked in $1.7 billion from divested upstream assets in the fourth quarter of last year while $7 billion was realised from the total upstream divestments.

    In its fourth quarter and full year financial report, the Shell Group said the revenues were realised from the divested assets in the Niger Delta, Gulf of Mexico and Canada

    It said: “Upstream divestment proceeds totalled some $1.7 billion in the fourth quarter 2012. Divestments mainly included Shell’s 30 percent interest in Oil Mining Lease 30 where Shell’s share of production was 11,000 barrels of oil equivalent per day (boe/d) in the Niger Delta, Shell’s 50 per cent interest in the Holstein field, where the company’s share of production was 5,000 barrels of oil equivalent per day (boe/d) in the Gulf of Mexico and Shell’s interest in the Seal area, where its share of production was 2,000 boe/d within the Peace River oil sands of Alberta, Canada.”

    The report said during the fourth quarter of last year, Shell participated in the Arnhem-1, Pinhoe-1 where it has 50 per cent share in gas discoveries in the outer Exmouth and the Satyr-4 where it has 25 per cent share in gas discovery in the Gorgon area offshore Australia and the Zabazaba-3 oil discovery offshore Nigeria where it has 50 per cent share.

    The report also noted that Shell had successful drilling programmes in liquids-rich shales in North America and coal bed methane in Australia. “As part of its global exploration programme Shell added new acreage positions during the fourth quarter last year, including the Zitong tight-gas block onshore China, deep-water positions in the Gulf of Mexico and offshore New Zealand. New acreage positions were also added offshore Canada, Colombia and Malaysia, onshore Egypt, Russia and in liquids-rich shales in North America.

    Proceeds from downstream divestment, according to the report, totalled some $0.2 billion. Divestments mainly included Shell’s Liquefied Petroleum Gas (LPG) business in Malaysia and the majority of Shell’s shareholding in its downstream businesses in Botswana, Kenya and Namibia, the report said. Therefore, proceeds from the Group’s divestments in upstream and downstream sectors in the last quarter of 2012 were $1.9 billion.

    In the downstream also, Shell agreed to acquire Neste Oil Corporation’s network of 105 retail sites in Poland. “The transaction, which is subject to regulatory approvals, is expected to be completed in 2013,” the company added.

    Speaking on the financial report, the Chief Executive Officer, Royal Dutch Shell, Peter Voser, said: “With the first year of our 2012-2015 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year.

    “Shell is competitive and innovative. We are delivering a strategy that others can’t easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment.”

    Meanwhile, Shell Group’s fourth quarter of last year’s earnings, on a cost of supplies (CCS) basis, were $7.3 billion compared with $6.5 billion in the same quarter a year ago while full year 2012 CCS earnings were $27.0 billion compared with $28.6 billion in 2011.

    The report also said that net capital investment for the fourth quarter 2012 was $10.9 billion, bringing the full year 2012 total to $29.8 billion. Capital investment was $12.8 billion for the fourth quarter 2012 and $36.8 billion for the full year.

     

  • Electricity consumers seek more use of MoUs

    The Association of Electricity Consumers of Nigeria (AECN) has called for a greater use of the Memoranda of Understanding (MoU) in the power sector signed between the Federal Government and leading international firms when Prof. Bart Nnaji was the Minister of Power.

    The AECN President, Chief Gani Makanjuola, made the call in Abuja in response to the recent Joint Development Agreement (JDA) signed in Abuja between athe Global Chairman of General Electric of the United States, Jeff Immet, and the Chairman of Geometric Power Limited of Nigeria, Prof. Nnaji.

    The pact also involves the building of a 500 megawatts (MW) of power facility in Aba, Abia State, for $450 million.

    Makanjuola commended major Nigerian power sector firms, such as Dangote, Transcorp and Honeywell, for having agreements with GE, one of the world’s leading manufacturers of electricity equipment, to use its products in power development.

    He said: “Yet commendable as the agreements are, they are a far cry from what the situation should be. In November 2011, the Federal Ministry of Power signed MoU with GE to assist build power stations to generate 10,000MW in Nigeria.

    “In other words, the agreements already signed are nothing near the production of 10,000MW.”

    Makanjuola, who is also the chairman of the Lagos State chapter of Nigerian Ports Authority (NPA) Pensioners Welfare Association, reminded investors that “Prof Nnaji within the one year he served as the Minister of Power, was able to get the American Export-Import Bank to provide credit for firms in the Nigerian power sector worth $1.5 billion, the largest amount of credit US EXIM Bank has ever agreed to any sector in Nigeria within one year.

    “Both foreign and local firms operating in our electricity sector, which make use of American products and services should quickly tap into the opportunity created by the MoUs with US EXIM Bank.

    “The amount this bank has agreed to extend to firms in the Nigerian power sector is a fortune by any standard anywhere, and it is not only big firms like Geometric Power, Transcorp, Honeywell and Dangote which should be reaping the benefits.”

    He requested players in the local electricity market not to restrict themselves to American products and services, calling attention to other MoUs, which the Ministry of Power signed with other world leading firms such as Siemens of Germany, Daewoo of South Korea and Electrobrazil of Brazil.

    In the MoU with Siemens, said Makanjuola, the German firm would lead a fresh and different effort to build power plants to generate 10,000MW. “It will, in addition, build a workshop in Nigeria, the first time it would build a facility like this in West Africa, just like GE, which has accepted to build an assembly plant in Nigeria, the first of such plant in Sub Sahara Africa,” he said.

    Makanjuola noted that both Electrobrazil and Daewoo have also accepted to assist build 10,000MW power stations in the country. This is a strategic move because it is in the country’s long term interest to diversify its sources of technology and development partnerships.

    “Besides, Nigeria as a major campaigner for Southsouth cooperation has to be seen as working for closer economic ties with such fast developing countries as Brazil and South Korea, which inspire it to attain greater development heights,” he added.

    He said he has been associated with Geometric Power since 2001 when the company built the first indigenous power station in Abuja before embarking on the 140MW Aba power project which is to be inaugurated next month. He said that research “revealed that most participants in the power sector do not have basic information on how the MoUs could be implemented.”

    Makanjuola called for symposia on how to implement the MoUs where members of the Manufacturers Association of Nigeria (MAN), National Association of Chambers of Commerce, Industry and Agriculture (NACCIMA) as well as the association of Independent Power Producers of Nigeria would be properly briefed.

  • Local meter manufacturing firm seeks govt’s support

    An indigenous electricity meter manufacturing firm, MOMAS Electricity Meters Manufacturing Company Limited (MEMMCOL), has called for the Federal Government’s intervention in that sector to encourage local production and sustenance of such companies.

    Its Chairman, Mr Kola Balogun, who spoke in Lagos, appealed to the government to stop the importation of meters to boost patronage of local manufactured meters. He also sought financial support from the government not just for his company but all meter manufacturing companies in the country to enable the stay in business and create jobs for Nigerians. He also noted that such support would enhance the growth of small and medium scale enterprises.

    He explained the imperativeness of government’s intervention noting that the inability of local manufacturers to access fund poses a serious challenge to the manufacturing prospects of the country.

    For instance, he noted that MEMMCOL, which is located at Ibafo, Ogun State, has invested over N3 billion on meter manufacturing equipments so as to enhance local production of various types of meters and electrical components and there isn’t appropriate patronage to help keep company well afloat. Government’s support would help local manufacturers improve on their production volumes and quality.

    He said: “I feel it is important that Nigeria should stop importing electricity meters so that we can migrate from importing meters to manufacturing of meters of various types in Nigeria. In MEMMCOL alone, we have a production capacity of 50,000 to 100,000 meters monthly. This excludes productions by other companies in same business.”

    Apart from inability to access funds from the government and money deposit banks to finance the business, inadequate electricity supply had also contributed negatively to the local production, he added. He said his company, which has over N3 billion investments in the sector, was largely supported by the Bank of Industry (BoI).

    “Electricity is a major setback in our company. Since the factory was commissioned, there has not been public electricity supply to the factory. We are basically running on generator. This is one of the major complaints of some of our partners over the years because our equipment is very sensitive machine that requires uninterrupted power supply,” he added.

    He, however, lauded the government for its effort in improving the power supply across the country but urged the government to extend the electricity supply to the factory.

    Balogun said the company commenced production of prepaid meters in October 2012 but shut down in November due to government’s pronouncement of free prepaid meters to Nigerians. “Government’s earlier pronouncement that supply of prepaid metres should be free to PHCN customers affected our production. Our major challenge is that we have not seen a single order for prepaid meters from the sector since then.

    “However, our company is planning to commence full production again because of the reversal of government’s pronouncement and hopefully, there will be a huge demand for meters,” he added.

    He said the company initially had a workforce of over 600 but downsized to about 100 last year due to the PHCN’s inability to procure meters. “Our company has developed ultra modern call centres for Power Holding Company of Nigeria’s (PHCN’s) customers across the country to address customers’ complaints across the 11 PHCN distribution companies in Nigeria. This will give customers better service across the nation because it enables them interface with all the electricity distribution companies.

  • Group donates bus to Down Syndrome foundation

    As part of its corporate social responsibility (CSR), the West African Ventures Group (WAV), an integrated oil service company, has donated a brand new 18-seater bus to the Down Syndrome Foundation of Nigeria.

    Making the presentation at the foundation’s office in Lagos, Mrs. Eno Agada, who represented the company’s president, stated that the gesture was part of WAV’s effort at giving back to the society and putting smiles on the faces of the needy.

    On the choice of the foundation as a beneficiary, Eno said the foundation was found to be in dire need and the WAV Group felt honoured to meet such need.

    She said: “Their fliers got to us, and we visited the premises and based on our findings, we presented a report to the president who immediately took decision that the company should donate a brand new bus to the foundation.”

    Receiving the key of the bus, the National President of the foundation, Mrs. Rose Mordi, expressed appreciation for the kind gesture from the company.

    Mordi said: “I think I’m short of words because I’m totally overwhelmed. I least expected this, but I think it is the best Christmas gift my children have had. This is the first time we are getting this type of gift at this time of the year. Usually, people give us food stuffs or give us some money or school equipment but I think this bus donation beats all.

    “It is one of the most important items that we need for the smooth running of the foundation. The children we have here have special needs and part of the programme we have is social integration and we have to move them around because they cannot take public transport, they cannot go out for events on their own and if we don’t have a vehicle to take them out, the programme will not be effective. This gift could not have come at a better time”

    She explained that the foundation takes care of Down syndrome in children and some adults that is caused by a genetic disorder resulting from the addition of an extra chromosome in a zygote, which according to her, predisposes them to mental retardation and a few other health issues.

    “The only way to take care of them is to carry out early medical intervention, early educational intervention plus vocational training and early social integration. And if these three programmes are effectively carried out, these children can live at least a semi independent life,” she added.

    Mordi called on the government and private organisations to help the foundation put in place structures that would help provide early intervention for the affected children. “We call on the Federal and state governments as well as corporate organisations to partner with us. In advanced countries, the basic structures for such organisations are provided by the government but unfortunately there is no such thing in Nigeria.”

     

     

     

     

     

     

     

     

     

     

  • NAPTIN inaugurates training workshop

    The National Power Training Institute of Nigeria (NAPTIN) has stepped up power training technology with the installation and inauguration of electric power system simulator and mechanical training workshop in the NAPTIN Regional Training Centre in Ijora, Lagos State.

    The institute also upgraded its 36-room executive hostel at the Akangba Regional Training Centre in Surulere, Lagos. The facilities were inaugurated by the Minister of State for Power, Hajia Zainab Ibrahim Kuchi.

    The minister said the facilities would not only improve training and skills acquisition in the power sector but would ensure sustainable improvement in power sector supply in the country. She said the government has intensified effort to ensure that more power plants begin operation before the end of the year to boost power supply in the country.

    She noted that one of the key priorities of the administration of President Goodluck Jonathan is the provision of adequate, reliable and affordable power supply to Nigerians.

    She said: “I want to assured Nigerians that the current improvement in power supply witnessed nationwide would be continuous improved upon towards delivering the promise of the Federal Government to Nigerians.”

    She said in delivering these promises, it is common knowledge that the most important resource would be human capital.

    She said: “We are here to witness investment in the development of human capacity required to drive the provision and sustenance of electricity supply in Nigeria. Federal Government, in pursuit of the power sector reform agenda had long realised the gap in human capital, which bedevils the industry. In this regard, efforts are being made to consolidate the stranded erstwhile Power Holding Company of Nigeria (PHCN) training centres into national training institutions.”

    She stressed that the major impediment that has continued to plague the development of the Nigerian power sector had been the dearth of skills required to undertake some of the basic tasks of maintaining the power assets. “Today, we make an important landmark in the development of the Nigerian electricity supplyindustry. The facilities we commissioned for the Nigerian Power Training Institute of Nigeria (NAPTIN) would provide system training opportunities for the workforce,” she said.

    She lauded President Jonathan’s support to the ministry of power and all associated millennium development goals (MDGs) for the discharge of the ministry’s mandate.

    The Director-General, NAPTIN National Power Training Institute of Nigeria, Engr. Reuben Okeke, said that the electric power system simulator marked the move from theoretical approach to training in power engineering to more practical approach where experimentations can be taught and simulated in real life incidences.

    Okeke said the power simulator allows technologists, engineers and electrical system operators to gain knowledge-based learning and skills-based training in all aspects of electric power system.

    He said: “This would further add to the learning potential of our institute and bring us nearer to the dream of being a world class power system training institute. With a 10-person per session capacity per week, the installation of the power simulator will ensure an annual turnout of 520 well skilled engineers and technologist.”

    He said the contract for the procurement, installation and commissioning of the electric power system simulator was signed with Messrs Tecquipment Limited/Auskan International Limited in September 2010, adding that apart from the successful installation of the facility and workshop centre, five NAPTIN engineers/instructors have been successfully trained at the contractors site in Nottingham, United Kingdom, on the use and operation of the power system simulator.

     

  • Two firms partner on safety equipment

    TO  further promote safety in the oil and gas industry, Red Wing Shoe Company, a United States-based global leader in the manufacture of safety shoes and garments, has opened an ultra-modern depot and office complex in Lagos.

    The facility, which is operated in partnership with Future Concerns Nigeria Limited, is the first of its kind in Africa.

    Speaking at the inauguration in Lagos, the Managing Director, Redwing Shoe Company, Mr Tito Warren, said the partnership with Future Concerns, which have culminated in the new facility, was meant to deepen the level of services the company has been delivering to the country’s oil and gas industry over the years.

    H said: “This major step is our first direct investment in Africa in our over 107 years of existence as a company. We recognise the need to play better, not only in the Nigerian market, but also in Africa. That’s why we are opening this facility. Our desire is to provide customised safety equipment for workers in the oil and gas industry.

    “Our company has a track record of innovation and satisfying the target market. Over the years, we have been providing customised equipment based on the needs of the market. We have been in Nigeria for a while through our partnership with Future concerns. By this, Future Concerns will be representing our interest in the whole of Africa. The company has worked with Redwing for many years and has earned our trust.

    “Future Concerns Nigeria Limited has achieved the highest level of representation of Red Wing by offering their quality services over the years. Therefore, it is entitled to sell all footwear, garments and accessory range of Red Wing Shoe Company and represent Red Wing brand in Nigeria.”

    He stressed that their motivation to invest in the country was not profit driven but the zeal to offer quality service in the oil and gas sector in Africa.

    Launching one of the latest safety shoes from the company’s stables at the event, Warren said the 8231 innovation has been in existence for over 107 years. He noted that what Redwing did was to improve on the quality without changing the DNA of the product.

    According to the Managing Director, Future Concerns, Tony Oguike, Red Wing decided to partner with Future Concerns to raise the bar in safety materials innovation and to offer clients first class safety equipment.

    He said: “We are glad that Redwing has agreed to partner with us in order to improve the quality of safety equipment in the oil and gas industry. We are looking forward to an exciting time with this world class company and we are sure that the country and the continent will benefit greatly from this.”

  • Verity Geosolutions boosts seismic imaging technology

    A  SERVICE company, Verity Geosolutions Limited, has enhanced the sub-surface technology with a key tool in hydrocarbon exploration.

    The company has completed the installation of 240 central processing units (CPUs) of power edge dual core servers, several high-end workstations, high capacity two phase uninterrupted power supply (UPS) and Cisco-based telecoms systems at its Lagos office.

    The Group Managing Director of the company, Yomi Adejonwo, said the hardware would enable the company to provide its seismic imaging, interpretation, reservoir modelling and characterisation, subsurface data management and geomatic services to its existing and prospects in Nigeria and the West Africa sub-region.

    He said: “With the installation of this equipment, we are moving closer to the realisation of our vision to be the leading provider of geophysical services in Nigeria and West Africa as well as meeting the increasing demand for our technologies.”

    The equipment he said would give adequate provision of timely high quality services in support of customers’ exploration and production activities. He added that it would, among other things, provide avenue for oil and gas reserves increase and reduction in the overall cost of exploration, development and production of oil fields as well as boost local development of advanced geophysical solutions to the oil and gas business in the country.

    Adejonwo said the company was established to provide leading-edge integrated geophysical services and to develop capacity in Nigeria’s oil and gas industry. He also noted that the company offers 2D, 3D and 4D seismic acquisition support services as well as integrated geophysical processing and inversion services.

    He said the services provided by the company would allow hydrocarbon exploration and production companies create value and optimise cost by reducing exploration risks, improving oil well placements and improving understanding of producing reservoirs.

    He said the company is positioned to domesticate geophysical activities in the country through training and employment of Nigerians.

    “Having worked in the oil and gas industry for several years, we saw an area where attention had not been paid and where we had acquired skills as Nigerians having worked with the international oil companies.

    “Our emphasis is to move away from being just commercial agents to foreign companies to bringing in our skills and investing in these technologies in Nigeria. To further enhance technological advancement in oil industry, the company said it collaborating with the Department of Geosciences, and Faculty of Sciences of University of Lagos on research to better develop the technology needed for the oil and gas industry,” he said.

    The collaboration, he said, is to enhance the development of best practices, workflows and methods for geophysics in Nigeria. It is also geared towards the development and support for research objectives in Nigeria as well as developing potentials of staff and interns.

    Adejonwo said the collaboration would strengthen the use of research in developing geophysics for the oil and gas industry in the country.

  • Ikeja Disco laments rising equipment vandalism

    The Management of Ikeja Electricity Distribution Company has raised the alarm over the increased rate of vandalism of its equipment.

    The vandalism, which reduced after the conviction of two vandals to various terms of imprisonment, assumed a wider dimension in the last six months. During this period, a total number of 69 distribution substations were vandalised and various electrical items were stolen from these stations. These acts threw the communities, which the vandalised facilities supply power, into darkness.

    The management said the socio-economic effect of this dastardly act of sabotage is high. It said apart from throwing communities into darkness, the cost of replacing vandalized equipment is colossal and the management can no longer bear such cost. The company spent over N20 million to replace the equipment in the 67 vandalised substations. This amount would have been better expended on new projects for network expansion.

    The management advised Community DevelopmentAssociations (CDAs) and other well-meaning community members to be alert and assist in curbing vandalism of electrical equipment within their locality.

    The management also sought the continued support of the Police, the State Security Service (SSS) and other security agencies in putting an end to vandalism of electrical equipment.