The Nation Newspaper

Category: Energy

  • Ikeja Disco’s 13-month blackout

    SIR: In October 2018, when the faulty transformer at Akinbaiye Street, Isolo was removed by Ikeja Electricity Distribution Company, subscribers’ expectation that the transformer would be quickly replaced was high. That hope has been dashed with the area is still in darkness more than 13 months after.

    Ikeja Electric turned deaf ear to all pleas of power subscribers as if it has no obligation or corporate responsibility to deliver service (power) to consumers.

    At a point, the community development association took the quest for the replacement of the transformer to the traditional ruler of the town, Oba Kabiru Agbabiaka, requesting his intervention. The Oba’s palace is on Akinbaiye Street one of the fives streets affected.

    Ikeja Electric authorities didn’t ignore the Oba. It said that each electric meter in the five streets affected should pay N18,000 to supplement payment of a new transformer. The Oba, it was learnt promised to add his royal gesture to ensure that electricity supply returned to the area. Subscribers largely complied. It is on record that more than 65 percent of meters in the area paid in May 2019 and surprisingly, more than four months after the payment, the area is still in darkness. If this is not height of callousness, insensitivity and gross dereliction of obligation, what is it?

    Power consumers in the affected area have suffered and are still suffering untold inconvenience and agonising discomfort. Most people cannot iron their clothes or use the services of their electronic gadgets. If not for the present wet season, old, young and especially children would have been denied their night sleep because of heat.

    Those who use electricity in their small-scale enterprises such as hairstylists, barbers, fashion designers, photo studios, corn millers, pepper grinders, beer parlours to mention a few have lost millions of naira income and contribution to the gross domestic product (GDP). The cost of running electric power generator if they could afford it is prohibitive and raises cost of production that directly depletes profit.

    On the part of Ikeja Electric, it must have recorded a huge loss of revenue too that subscribers would have paid into its coffers if darkness is not what it serves Akinbaiye instead of power. This is not a mark of entrepreneurial outfit that is out to generate huge income and make profit for its sponsors. There are subscribers at Akinbaiye that do not owe. Such subscribers deserve constant supply of electricity whenever it is available.

    Elasticity of subscribers’ patience is being stretched to the extreme. We urge Ikeja Electric to take quick steps to restore supply to foster good supplier-consumers relationship to stop the suffering of subscribers.

    • Tajudeen Adigun

    Isolo Lagos.

  • NCDMB’s roadmap yielding results, says Wabote

    The Nigerian Content Development and Monitoring Board has set a 10-year roadmap for the development of local content, indigenous capacity and skills. Its Executive Secretary, Simbi Wabote, unveiled the plan, saying the body will liaise with the National Assembly in its quest to amend the board’s Act, reports Assistant Editor (Energy) EMEKA UGWUANYI.

    The Nigerian Content Development and Monitoring Board (NCDMB) has put fundamentals in place for the attainment of its 10-year roadmap, which will enable the nation to start reaping the full benefits of its oil and gas resources, with clear linkage to other sectors of the economy.

    Its Executive Secretary,  Simbi Kesiye Wabote, who stated this in Abuja, at the third quarterly briefing organised to keep stakeholders abreast of the activities and achievements of the board, said he was impressed by the accomplishments of the board within the two and half years he has spent as the helmsman.

    He said one of the first frameworks the board put resources into was the development of the Nigerian Content 10-year strategic roadmap, adding that roadmap documents the short, medium and long-term targets aimed at increasing Nigerian Content performance from 28 per cent to 70 per cent by 2027.

    He said: “The key rewards from the implementation of the 10-year roadmap are the creation of 300,000 jobs from industry activities and the retention of US$14billion in-country out of the US$20billionspent annually in Nigeria’s oil and gas industry.

    “The 10-year-roadmap has five pillars. They are Technical Capability Development, Compliance and Enforcement, Enabling Business Environment, Organisation Capability and Sectoral and Regional Market Linkage. It has four enablers, namely Funding, Regulatory Environment, Collaboration and Stakeholders Engagement and Research and Development.”

    On the Technical Capability pillar, Wabote said the board has “moved the Nigerian Oil and Gas Park Scheme (NOGAPS) from mere plans on paper to actual construction in two pilot locations – Odukpani in Cross River and Emeyal 1 in Ogbia Local Government of Bayelsa State. Each of the parks will create employment for 2000 persons when they are fully operational and will spur manufacturing of critical oil and gas equipment, tools and spare parts close to oil fields”.

    He noted that the board was spearheading the Project 100 Initiative, pointing out that the project is a Federal Government’s initiative that targets genuine firms that are committed to developing the sector’s  local capacity and capability for job creation. He said the government would assist such firms by helping them access funds locally and internationally. He said the board has identified 60 oil and gas start-ups, which are being sponsored through the deployment of special interventions for their incubation, maturation and growth into world class service companies. This intervention would include capacity building, funding and access to market, he said.

    Wabote also confirmed that the board has  started International Certification programme for 20 marine personnel, saying the cadets were already on board foreign vessels for training in 12 months, which would qualify them to be awarded the Certificate of Competence (COC), with which they can work in the Nigerian waters and overseas. The programme will address the deficit of trained cadets in the maritime and oil and gas industries and reduce the dependence on foreign personnel in  marine operations.

    He said the board’s provision of equity investment to catalyse the establishment of 5,000barrels per day modular refinery by Waltersmith Refining & Petrochemical Company Limited in Ibigwe, Imo State and in the 12,000 barrels per day Hydroskimming Modular refinery by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State, were as envisaged.

    ”The Waltersmith refinery is on track for completion by May 2020, while the Azikel Refinery would be completed in 2021. We expect about 300,000 litres of diesel daily in addition to various volumes of naphtha, kerosene, and fuel oil from Waltersmith, while Azikel will produce about 1.5million litres or 50 trucks of petrol daily, including 170,000litres of diesel and other products,” he added.

    Modular refinery projects have huge prospects for job creation, value retention, petroleum products availability and the development of in-country capability that fit perfectly with our vision to serve as a catalyst for the development of Nigeria’s oil and gas sector, he said.

    On the second pillar, Compliance and Enforcement, the NCDMB chief said the Board has put in place seven firms to assist in carrying out specific and specialised monitoring and compliance functions in the upstream, midstream and downstream sectors of the industry. The Board also deployed chartered accounting firms to carry out forensic audit of Nigerian Content Development Fund (NCDF) remittances.

    Wabote said the forensic audit started last November, saying the outcome has revealed huge amounts of non-remittances from operating and service companies, saying at the moment, some companies have owned up to their indebtedness and have started addressing their infractions. “A few companies have remained recalcitrant and we have concluded plans to hand over such companies to the Economic and Financial Crimes Commission (EFCC) for prosecution,” he said.

    On the pillar for Enabling Business Environment, Wabote stated that the Service Level Agreements (SLAs) NCDMB signed with the Nigeria LNG Limited, International Operating Companies under the aegis of the Oil Producers Trade Section (OPTS) and Independent Petroleum Producers Group (IPPG) have helped to shorten the NCDMB interface on the tendering cycle in the oil and gas Industry from 36 months to nine months.  “it has also enhanced broad compliance with the requirements of the Nigerian Content Act and led to significant reduction in the unit cost of oil production in Nigeria.

    “During the last review held in May this year, major operating companies, including SPDC/SNEPCo, Chevron, Total E&P and First E&P, all rated NCDMB very high on the implementation of the SLA,” he said.

    On funding, Wabote said NCDMB has disbursed US$160million out of the US$200million Nigerian Content Intervention Fund (NCI Fund) to qualified firms, as part of our efforts to provide credit for Nigerian oil and gas service firms and community contractors with single digit interest rate and one year moratorium.

    He said the board is working to promote relevant and reliable data and statistics to establish a collaborative framework with the National Bureau of Statistics. ”We intend to shortly commission specific data collection projects to counter some of the unverifiable data being bandied around our national discourse,” he said.

    He assured that the Board would collaborate  with the Ninth National Assembly to complete the amendment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, so as to extend it to key sectors, such as Power, Construction and Information Communication Technology.

    He advised against the creation of multiple regulators of Local Content in Nigeria, noting: “NCDMB can modify its template to suit other sectors. In our view, this is the prudent way to expand and entrench local content regime in Nigeria.”

  • ‘Lack of geophysical survey tools hampers mining’

    The Managing Director, Double Dee Industrial Services, a mining company, Mrs. Anobo Ann Ajoku, has identified lack of requisite equipment as one of the major drawbacks to the growth of the mining sector. She believes that the Federal Government’s intervention through the provision of equipment for lease to miners at subsidised rates will accelerate the sector’s growth, reports AMBROSE NNAJI.

    Lack of geophysical survey equipment is the bane of mining and the quest to drive the industry towads growth, the Managing Director, Double Dee Industrial Services, a mining company, Mrs. Ann Anobo Ajoku, has said.

    Mrs. Ajoku lamented the absence of equipment and obsolescence of geophysical surveys, saying some of them were carried out by colonial masters.

    She argued that the government would only be paying lip service to the development of the mining sector, adding that even with the various interventions by the government to develop the mining business, without the necessary equipment, the sector will not attain the expected growth.

    According to her, if the government can provide the necessary equipment for leasing at subsidised rates, it will quicken the growth of the sector.

    For miners to get materials any mineral, whether gold, barite or any extractive mineral, there should be proper geophysical survey. Mrs Ajoku noted that the geophysical surveys presumed to be already in place were not actually what are needed but rather what obtains when one goes to the subsurface.

    The impact of mining goes beyond mineral extraction and processing. Mining is interrelated to many other industries and sectors in the economy, including transportation, construction, equipment manufacturing, environmental management, geological services, education and research.

    As part of its benefits, mining supplies raw materials for construction of roads and hospitals or manufacturing of products, such as automobiles, employment creation, source of income, and foreign exchange. Mined substances are used to build houses and make computers and satellites.

    Mining of minerals accounts for only 0.3percent of the country’s gross domestic products (GDP) due to the influence of its huge petroleum resources. The domestic mining industry is underdeveloped, leading to Nigeria having to import minerals that it could produce domestically, such as salt and iron ore.

    She said the government apart from ensuring that the environment is conducive for miners to operate, should build modern geophysical survey equipment to make mining sites accessible. She added that a such step would help to drive the expected growth in the sector.

    Mrs Ajoku, a geologist, said geophysical survey equipment are needed to know the depth of the mineral in the ground and that a good geophysical survey could tell the grade of a mineral. “You need a proper geophysical survey to know what you have in the ground and the extent to which it goes,” she stated.

    Mrs Ajoku, specialist in Barites production, sells gravel/powder grinding machines, gemstones, ore beneficiation equipment, and leases mining equipment.

    A member of Miners Association of Nigeria (MAN), she noted that Nigeria is one of the African countries that could boast of vast deposits of barite.

    According to her, Cross River State has the highest quality and quantity of barite. Other states include Benue and Plateau.

    She said barite is used in the petroleum industry for formulating drilling mud and it increases the hydrostatic pressure of the drilling mud, allowing it to compensate for high-pressure zones experienced during drilling.

    It is important in the manufacture of paper and rubber. Barite, she added, is also used in radiology for x-rays of the digestive system. When crushed, it is added to mud to form barium mud, which is poured into oil wells during drilling.

    “Before I went into mining business, I went to the mining cadastral in Cross River site, I got the list where to get various grades, but I was misled because I later discovered that what they had were what those colonial masters surveyed. That’s what most of them still have in their archives and they tell you they have this or that grade, but by the time you go there to do your survey, you find out it’s a different thing all together,” she said. So, most of the time we do the little we can and get to work, she stated.

    She said some countries have very high grade barite and and their governments had assisted in geophysical survey, thereby reducing the cost of mining.

    “Mining is highly capital intensive. It’s not anything an individual can just get in and get all right easily, it takes a lot of money.

    “There are international companies that are doing it very well, whatever they tell you is underground that’s the correct thing but it’s expensive. During our interactions with the government, we emphasised the challenges miners face and advised the government to get domiciled geophysical survey equipment in Nigeria; maybe partner with some international companies. They should come here and run it for three to four years and then hand over to Nigeria,” she said.

    But the government has to fund that and be at the forefront because what we have now is not the real thing. The companies here are not doing it well, she added, but advised operators in the industry to go into partnerships so as to be able to offset some of the financial challenges in the sector.

  • What NNPC/Shell partnership does for society

    Aside exploring and producing oil and gas, Shell companies in Nigeria – Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Petroleum Development Company (SPDC) – and their senior partner, the Nigerian National Petroleum Corporation, have been undertaking key activities to ensure the well-being of Nigerians. In this report, EMEKA UGWUANYI looks at critical interventions of the oil giant in the health sector and the need for other firms to follow suit.

    Corporate social responsibility (CSR) is considered very important by corporate organisations, especially in the oil and gas industry. Besides their core competences which is exploring, producing and processing hydrocarbons, giving back to the society where they operate has become part of formal and informal aspects of their operations. This responsibility, sometimes, goes beyond their host communities to national or humanitarian issues, such as finding  solutions to the increasing cases of cancer, preventions of diseases at Internally Displaced Persons (IDP) camps and training of medical personnel. Such interventions have not only helped the not-so-rich Nigerians to access quality health care but have also substantially reduced export of  much-needed foreign exchange through medical tourism.

    For instance, SNEPCO recognises the value of a healthy nation and has adopted a targeted approach to improve access to health and strengthen health care system in the country. Over the last few years, SNEPCo has demonstrated its commitment by investing in shared value community care and sustainable health initiatives, including medical emergency, centre of excellence and strengthening health facilities.

    Only recently, the NNPC/SNEPCo partnership installed a new cutting-edge cancer treatment machine at the National Hospital, Abuja, which, according to the hopital, Chief Medical Director, Dr. Jaf Momoh, would reduce patients’ treatment waiting time from 16 to two minutes.

    The cancer machine ‘Elekta Synergy LINAC’, which offers unique radiation therapy technique that shapes the radiation dose to the tumour with very little or no adverse effect on other organs, was inaugurated by Vice President Yemi Osinbajo through Federal Ministry of Health Permanent Secretary Alhaji Abdullahi Mashi.

    The project aims at establishing a sustainable Centre of Excellence in Cancer Care, in partnership with the Federal Ministry of Health and National Hospital, Abuja. It targets early identification and treatment of cancer to improve access to affordable quality treatment for the average Nigerian.

    Historically, Nigeria has six government- designated centres of oncology and only one of its nine radiotherapy centres are fully functional (UCH Ibadan), despite the existence of another (Abuja) requiring upgrade for full functionality.

    According to World Health Organisation (WHO), cancer remains a leading public health issue affecting one in 20 Nigerians (WHO 2002). In 2017, SNEPCo partnered the Federal Ministry of Health to improve the capacity of the National Hospital, Abuja to provide effective and efficient health services in the prevention and treatment of cancer as part of its corporate social investment strategy. The mantra for the centre is “investment to reach- the right people; right equipment/infrastructure; right skills and right processes”.

    In 2015, SPDC joint venture trained 300 midwives to support the government’s effort in getting more skilled health workers to rural communities in six states of the Niger Delta region. The initiative was carried out in collaboration with the governments of the beneficiary states – Rivers, Bayelsa, Delta, Imo, Abia and Akwa Ibom.

    Also, SPDC last month delivered the Oloibiri Health Programme (OHP), an integrated health project for Oloibiri and adjoining communities in Ogbia Local Government area of Bayelsa State. The project included the remodelling and equipment of General Hospital in Kolo.

    According to the Managing Director of SPDC and Country Chair of Shell Companies in Nigeria, Osagie Okunbor, the OHP is part of the three programmes by Shell in commemoration of Nigeria’s centenary celebrations in 2014. Besides the remodelled General Hospital, Kolo, the first phase projects of OHP that have been inaugurated are: a water treatment plant; medical laboratory equipment at the College of Health Technology, Otuogidi; and a dental chair at the Demonstration Clinic, Otuogidi.

    The second phase includes the Oloibiri Health Campus at Oloibiri Town, comprising the Oloibiri Health-for-Life Centre, Ward Health Centre, and a Knowledge Management and Research Centre.

    Other components of the second phase are the 0.4km Oloibiri Access Road to the Health-for-life Centre and the establishment of the Oloibiri Health Foundation to drive the  sustainability of the projects.

    Okunbor noted that the third phase would be the establishment of the Ogbia Health Insurance Scheme to be modelled after the successful pilot health insurance scheme catalysed by the SPDC joint venture in partnership with Rivers State Government at the Obio Cottage Hospital in Port Harcourt. Phases 2 and 3 are planned for completion by the end of the year, he added.

    In 2016, SNEPCo led a multi-stakeholder framing workshop of government, academia and health development bodies to identify gaps in the healthcare system and define development opportunities to address the gaps. This workshop culminated to become SNEPCo’s health priorities for intervention with five signature health intervention projects: Lagos Medical Emergency Response Improvement Programme (Lagos MERIP), Health System Strengthening project at Ogijo Primary Healthcare Centre (PHC) in Ogun State, Integrated Humanitarian Assistance Project (IHAP) for IDPs in Dikwa, Borno State, Centre for Cancer Care project at the National Hospital, Abuja, Community care programmes tagged “Health in Motion” across Nigeria.

    With the investment in health, SNEPCo aims to improve access to quality health in rural and semi-urban locations by supporting the provision of integrated services, reducing out-of-pocket expenses for health care and up-skilling the capacity of health care providers, delivering excellent initiatives to bridge the gaps and reduce mortality incidents around cancer care in the country, supporting the establishment of an efficient, effective and sustainable medical emergency response for health. These objectives are achieved through the implementation of strategic programmes.

    In the Ogijo PHC System Strengthening Project, SNEPCo partnered the Ogun State Government to improve access to health care and quality health services, using the maternal and child health for the various communities served by Ogijo PHC. This project was an offshoot of the “ARAYA” project, which covered six PHCs in the state. The project led to the construction of a model comprehensive PHC for Ogijo community, donation of medical equipment/furnishing of the PHC, capacity building for health workers, improvement in drug revolving scheme and medical emergency care. The establishment of a sustainble community-based health insurance prgramme is some of the long-term plans for Ogijo.

    For the IHAP for IDPs, it was in response to this humanitarian crisis. SNEPCo, in partnership with Family Health International (FHI 360) – a global relief agency providing humanitarian assistance to IDPs in the Northeast and the Borno State government, co-designed a two-year humanitarian relief programme aimed at providing IDPs in newly liberated areas in Dikwa Local Government Area of Borno State with health care, food, water, sanitation, livelihood support, education and shelter materials.

    In addition, the programme was also designed to improve the well-being of vulnerable groups through the provision of PHC services; psychosocial support; integrated gender-based violence support and resilience training.

    Since 2014, the Northeast has experienced several spikes in conflict due to intensified activities by the Boko Haram insugents, which coupled with counter-insurgency efforts by the  military, led to a severe humanitarian crisis and significant displacement. Dikwa, a newly liberated LGA in Bornu State, experienced high influx of internally displaced persons in dire need of humanitarian assistance.

    Through the IHAP initiative, SNEPCo has touched lives and redefined hope to the people in Dikwa. A fully functional PHC in Dikwa was upgraded and equipped which hitherto was absent in the LGA. More than 50,000 in Dikwa benefited from a broad range of activities that cut across health, security, water, sanitation, hygiene and nutrition services. Over 44,960 persons have benefitted from services at the SNEPCo-supported PHC in Dikwa, with over 826 children delivered.

    In addition to this, 22,527 people in the community have been educated on gender-based violence (GBV), leading to reduction in discrimination of GBV victims and improved assimilation of victims back into the society. 618 girls/women also received GBV support, with 111 provided dignity kits, among others.

    For the Lagos Medical Emergency Response Improvement Programme (MERIP), in view of the fact that medical emergencies can be life-threatening, timely and effective Medical Emergency Response (MER) saves lives, reduces injuries and disabilities and improve the prognosis of rehabilitation.

    MER is a major gap in health care delivery in Nigeria; however, Lagos State desires to not only bridge the gaps but to excel in this sector. In the last five years, SNEPCo has been working with the Lagos State government to improve the quality of medical emergency response.

    In response to the weak system, its initial LASAMBUS project has transited to MERIP. It aims to strengthen medical emergency response system for the state in partnership with  stakeholders through the establishment of safety, effectiveness, efficiency, time bound and equity model.

    The Lagos MERIP has produced a DVD in English and local dialect to provide guidance on how to act in an emergency for public awareness, trained 60 medical staff in first aid skills, mentoring and supervision of LASAMBUS staff since 2015, procured a vehicle and two tricycle ambulances, provided training to General Hospital, Odan staff to improve customer satisfaction and staff attitude. SNEPCo’s aspiration is to make Lagos better equipped to manage emergencies and reduce the mortalities associated with poor response time and mismanagement of medical emergencies.

    On the Community Care Programme (CCP), in 2016, SNEPCo launched its community care programme. The objective of the programme is to provide quality free health care to people in far-flung and under-served communities who will otherwise have had difficulty affording/accessing it. Most recently, the programme extended its services to include cancer screening for women (breast, cervical) and for men (prostate). A total of 117 men have been screened for prostate cancer; 1,602 women screened for breast and 1,572 women for cervical cancer in 2017. 34 had breast lumps, 13 were positive to VIA; 7 had cryotheraphy treatment immediately while others were referred. This has provided some of the country’s least financially buoyant population with opportunities for early diagnosis and treatment. The community care programme is also able to link patients diagnosed in the field to referral facilities for further treatment/follow-ups. Since inception, the community care programme has been implemented in four communities Lagos (Lagos Island, Agege and Ojota) and Abuja (Gida Mangoro) reaching more than 13,000 people, embedding health care culture at the grassroots.

    SNEPCo supports two static health facilities in Nigeria – Iyi-Enu Mission Hospital in Anambra State and Ogijo Health Centre in Ogun State. In 2014, SNEPCo invested N300 million to upgrade and provide equipment to institute a kidney dialysis and breast screening centre at Iyi-Enu Mission Hospital. The choice of Iyi-Enu was born out of the hospital’s record as one of the oldest hospitals in the Southeast after its establishment in 1907 and its large patient pool and the commitment of the management in rendering health care services to the people. Today, the Iyi-Enu kidney dialysis and breast screening centre stands tall as it has screened over 879 since 2016 and capable of managing medical emergencies.

    Last year, SNEPCo invested millions of naira to rebuild and rehabilitate the Ogijo Primary Health care centre. The rehabilitation involves the renovation of the infrastructure as well as provision of equipment, installation, training of medical personnel and provision of medical consumables.

    On health insurance, health insurance in the country is relatively expensive when compared with the earning power of the average Nigerian and the calibre of jobs that provide health insurance to their employees.

    However, SNEPCo is collaborating with the government, the community and Health Maintenance Organisations (HMOs) to bring community health insurance to the people. It’s usually a pro-poor programme, which improves access to affordable quality to the people at affordable yeraly premium.

    In 2016, SNEPCo launched its first Health Insurance Programme at Iyi-Enu Mission Hospital. Today, it covers 410 individuals in Ogidi community, who can access various services at a yearly subscription of N20,000.

    Capacity development is at the very core of these interventions- ensuring that the healthcare personnel are better trained and positioned to delivery across all streams.

    Several medical donations have been made to support infant health and surgical medicine. Notable amongst these are the donations of incubators and other health equipment to the health centre at the SOS Village, Isolo, Lagos and Federal Medical Centre in Yenagoa, the Bayelsa State capital and in partnership with BEARS Foundation to perform 50 congenital cleft lip and palate reconstructive surgeries.

    SNEPCo also equipped and supported a neonatal hearing screening programme at the University of Ilorin Teaching Hospital in Kwara State. These initiatives support the government in delivering effective health care with the communities taking ownership of the facilities and programmes.

    SNEPCo continues to identify potential areas of collaboration with government, non-governmental and community stakeholders.

  • Petroleum Ministry holds 3rd annual summit

    Federal Ministry of Petroleum Resources is preparing for its 3rd Annual Nigeria Petroleum Summit (NIPS 2020).

    According to the Permanent Secretary, Ministry of Petroleum Resources, Dr. Folasade Yemi-Esan, the countdown for the 3rd edition of the annual NIPS conference/exhibition has officially begun.

    The event which will take place in Abuja, has grown to become Africa’s premier business and technology conference for not just oil and gas but for also automobile, banking and finance, power (electricity), pipelines, LNG, infrastructure, engineering and construction, amongst others.

    Like the previous editions, the Federal Ministry of Petroleum Resources has the responsibility of hosting the next edition of NIPS from 9th to 13th February 2020 on behalf of the Federal Government.

    The summit draws as much as 3,000 top-level international and national oil executives together every year to dig deeper into the awesome potential of a region in order to increase the participation of anyone doing business and investing in Nigeria and the rest of Africa’s oil and gas upstream, midstream, downstream, power, and services industries.

    The theme of NIPS2020 is “Widening the Integration Circle: Technology, Knowledge, Sustainability and Partnership” and will seize the momentum of the country’s historic 60 years of independence, to showcase the rich culture of the most diverse country in the Africa along with new oil, gas, and energy technologies, platforms , major contract signing and strategies for growth.

  • ‘Shell JV, SNEPCo have paid $2b to NDDC’

    The Shell Petroleum Development Company (SPDC) Joint Venture, Shell Nigeria Exploration and Production Company (SNEPCo) and its co-venture partners have contributed $2 billion to the Niger Delta Development Commission (NDDC).

    The Media Relations Manager, Shell Nigeria, Bamidele Odugbesan, stated this while reacting to the allegation that the oil giant was among the 50 oil firms that owe the NDDC.

    Shell was named among the oil companies that owe the Niger Delta Development Commission (NDDC). Some oil companies operating in the Niger Delta region owe the Niger Delta Development Commission (NDDC) N1.2 trillion due to their failure to pay their dues to the commission.

    The Principal Partner, Paris Trust Limited, Timothy Bagwams, who said his firm was authorised by the NDDC to serve letters to the defaulting oil companies that owe the Commission, noted that Shell was among the defaulters.Oil companies in Nigeria statutorily are mandated to pay three per cent of their annual budget to the Commission. However, Bagwams stated that  the Nigeria National Petroleum Corporation (NNPC), National Liquefied Natural Gas (NLNG), Chevron, Shell, Agip, Pan Ocean oil, Petrobras, Seplat, Moni Pulo Petroleum Development, South Atlantic Petroleum and Slumberger, among others, owe the commission.

    According to the Bagwams, since 2015, the majority of the oil companies have failed to remit the statutory three per cent to the Commission, which affects the efficient operation of the Commission and the development of the Niger Delta region.

    Shell’s spokesperson Odugbesan said the company is current in payment of its dues to NDDC. He said: “The Shell Petroleum Development Company of Nigeria Limited (SPDC) is up to date in the payment of all levies payable to the Niger Delta Development Commission (NDDC) in compliance with the NDDC Act.

    “SPDC’s remittance till the end of 2018 has been acknowledged and signed off by NDDC. We are awaiting NDDC’s receipts for payments from January to June 2019. SPDC, therefore, has no outstanding sums due and owing to the NDDC up to June 2019, and we have communicated this to the commission in response to their demand notice.”

    Odugbesan also stated that between the inception of NDDC in 2002 and the end of 2018, SPDC JV parties, SNEPCo and its co-venture partners contributed $2 billion to the NDDC.

    The Group General Manager, Group Public Affairs Division of NNPC, Mr Ndu Ughamadu, in his reaction, confirmed that the Corporation owes NDDC. However, he stated that NNPC has started the repayment some months ago.

    He said: “There is nothing wrong in being indebted to someone or an organisation. We are indebted to NDDC, but we have reached an agreement with them (NDDC) on repayment and we have started the repayment few months ago.”

    Bagwams reiterated that Section 14(2)(b) of the NDDC Act, 2014 stipulates that three per cent of the total annual budget of any oil producing company operating onshore and offshore the Niger Delta region including gas processing companies shall be paid and credited to the fund established by the NDDC for the defrayal of all expenditure.

    “But as I speak with you, the companies are owing NDDC more than N1.2 trillion, and this is why the Commission is achieving little in addressing the developmental needs of the region,” he said, adding that Paris Trust Limited is undertaking the facilitation and payment of the debts owed NDDC by oil firms and would be left with no option than to resort to legal action if at the end of a seven-day ultimatum the oil companies fail to make the remittances.

  • Axxela emerges Midstream Company of the Year

    Axxela Limited has been chosen as ‘the Midstream Company of the Year’ and its Chief Executive Officer, Bolaji Osunsanya, as the ‘Innovative CEO of The Year’ at the 2019 Nigerian Business Leadership Awards.

    Accepting the award, Axxela CEO, Bolaji Osunsanya, dedicated both awards to the company’s employees. He said: “These awards validate our continuous drive to deliver value-adding energy solutions to our clients across West Africa, and our unwavering commitment to facilitate sustainable economic development in our chosen markets. Every day, our people bring unrivalled professionalism, partnership and excellence to our business enterprise, and I dedicate these awards to everyone at Axxela, and say a big thank you to BusinessDay, organiser of the Nigerian Business Leadership Awards, for recognising our efforts within the industry and across Nigeria.”

    Instituted to celebrate exceptional business leaders and organisations for their sustained commitment to excellence in enterprise and contributions to the economy, the Nigerian Business Leadership Awards are divided into two different categories: the global awards and sectoral awards.

    The global awards are bestowed on exceptional individuals whose performance and impact transcends specific industries, while the sectoral awards recognised companies that demonstrate impeccable business agility, market share growth, financial strength, leadership vision, and resilience in varying economic conditions.

    This year, Axxela became the first organisation in the Nigerian oil and gas industry to successfully achieve a trifecta certification of Integrated Management Systems: ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. Axxela was also adjudged as the ‘Most Supportive Private Sector Organisation’ by the Lagos State Parks and Gardens Agency (LASPARK) during the launch of its 2019 tree planting initiative, in recognition of its steadfast commitment towards a green and healthy environment.

  • MAP, Siemens pact positive interventions in power sector’

    The Association of Nigerian Electricity Distributors (ANED) has praised the Federal Government and Siemen agreement and the Meter Asset Provider (MAP) programme, describing such initiatives as positive interventions in the power sector.

    The Executive Director, Research and Advocacy of ANED, Mr. Sunday Oduntan, stated this while fielding questions from reporters in Abuja. He reiterated commitment of electricity distribution companies (DisCos) and the Federal Government to tackling challenges affecting retail electricity distribution in the country.

    According to Oduntan, the Federal Government and the DisCos remain committed to working together in order to address current challenges in electricity distribution to customers.

    He said: “The distribution franchise consultations and the present wrap-up of the minor electricity tariff reviews, among others, meant to provide affordable and consistent power supply for electricity customers are some of the collaborative efforts between the DisCos and government.

    “It is the hope and expectation of the DisCos that collectively the aforementioned initiatives and activities in tandem with respect for sanctity of contracts, increased regulatory and policy certainty, will provide the enabling environment.

    “That will result in a Nigerian Electricity Supply Industry (NESI) that is commercially viable and sustainable, thereby, attracting the desperately needed investment that continues to be elusive in the sector.

    “The commitment by the DisCos and Federal Government to providing electricity to customers was demonstrated by the recent Government/Siemens initiative and regulatory activities. The ongoing Meter Asset Providers (MAP) programme is another collaborative effort of the Federal Government and the DisCos.”

    Also, Oduntan stated that the recent report on government trying to pay N736 billion to investors to repossess the DisCos is sensational. He said the report itself clarified that to do so within the provisions of the Share Sale Agreement  (SSA)would require a sum in the region of 2.4 billion dollars (about N736 billion), some of which would  be paid as compensation to the investors.

    “This is not a desirable outcome. It is noteworthy that government is yet to pay the investor in Yola DisCo for its negotiated return to government,” ruling out the possibility of such a repossession.”

    Oduntan said there were doubts about the document on which the report was based, adding that such sensationalism could scare future investors from investing in the economy.

    “We are troubled that a sector that is already bedeviled with multiple challenges now has to deal with sensationalism and irresponsible journalism rather than an informed discussion of how we can move the sector forward,” he said.

  • Sahara Group’s Adesida is MIPAD

    Sahara Foundation’s Private Sector Engagement Specialist, Babatomiwa Adesida has been selected as one of the 2019 Most Influential People of African Descent (MIPAD) in recognition of his contribution to humanitarian work and promotion of the Sustainability Development Goals (SDGs).

    Sahara Foundation is the social responsibility vehicle of Sahara Group, a leading energy and infrastructure conglomerate with operations in over 38 countries across Africa, Asia, Europe and the Middle East.

    According Sahara Group’s spokesman, Bethel, Adesida’s recognition was announced by The Most Influential People of African Descent (MIPAD) 100, a global civil society initiative in support of the implementation for the International Decade for People of African Descent as proclaimed by the United Nations General Assembly resolution 68/237.

    “I am very flattered by this award and humbled by the opportunity Sahara Foundation has given me to serve humanity.  I am extremely passionate about Social Reconstruction, particularly in developing nations and nothing gives me more joy than the success Sahara Foundation has achieved in terms of transforming the lives of over 2,000,000 beneficiaries across our locations. I dedicate this recognition to Sahara Foundation as well as all our partners and stakeholders across the globe,” Adesida stated.

    MIPAD publishes a unique global 100 list that identifies outstanding individuals of African descent worldwide, pairing those based in the Diaspora with their counterparts inside Africa across four categories: Politics & Governance, Business & Entrepreneurship, Media & Culture, and Humanitarian & Religious.

    Adesida will be celebrated alongside other honorees during MIPAD Class of 2019 recognition week in New York from September 27th – October 3rd 2019 on the sidelines of the 74th United Nations Annual General Assembly, according to Kamil Olufowobi, MIPAD’s Founder and CEO.

    Babatomiwa Adesida drives partnerships between Sahara Group and international organisations such as the United Nations Development Program (UNDP) in New York and the Organization for Economic Cooperation and Development (OECD) in Paris.  Sahara Group and the UNDP recently signed an MoU on promoting sustainable energy in Africa. Adesida will play a critical role in the implementation of the project which seeks to enhance access to clean and affordable energy through collaborative interventions in selected countries for effective realisation of the SDGs.

    Adesida has over 12 years of Private Sector experience and has been involved in the development, implementation and monitoring of projects and policies through the private sector in partnership with numerous governments in different countries including Nigeria, Ghana, Cote d’Ivoire, Tanzania, Zambia, Switzerland, Singapore and U.A.E.

    Adesida received a B.Sc with honours in Sociology from the University of Ibadan in Nigeria and MSc. in Public Policy from the University of Bristol, U.K where he won a partial scholarship for international students. He has been nominated for and also received several CSR awards some of which include the Future Awards Nigeria, the Nigeria CSR awards and the 100 most impactful CSR leaders (Global listing) in India.

  • Aiteo eyes 250,000 bpd oil production

    Aiteo Group is negotiating an alternative financing package that would enable it fund about $5 billion investment to be able to increase its oil production to about 250 000 barrels per day (bpd).This  will also  grow gas output to about 3 million standard cubic feet per day (mmscfd) of gas.

    The Managing Director, Eastern Exploration and Production Company, the upstream arm of Aiteo, Mr. Victor Okonkwo, stated this at a forum in Abuja. According to him, there will be a blend of financing options depending on the alternative financing mechanism the company is working out with its joint venture partner.

    He noted that Aiteo operates key strategic business of oil infrastructures in Nigeria and a major stakeholder across the energy value chain with huge investments in the country. The company, Okonkwo said, was one of the biggest single investment decision makers up to 2014, when it invested over $2.5 billion in acquiring oil milling lease (OML) 29 asset.

    The company is Nigeria’s largest indigenous company by production and we are committed to producing between 80,000 bpd and 90,000 bpd. ‘’In the short to midterm, we are going to 150,000 bpd and in the mid to long term we are going to 250,000 bpd, we want to secure energy supply for the rest of Africa and move from fossil fuel to clean fuel’’, he stated.

    He also spoke on the challenges facing the indigenous players such as oil theft and pipeline vandalism. He stressed the need for the Federal Government to look more into securing energy assets. According to him, the company had lost over $2 billion to pipeline vandalism due to frequent attacks on its Nembe Creek Trunck Line (NCTL).  He stated that there had been a lot of intrusions in the pipeline leading to outages of the company’s production and sometimes shutdown. This pipeline, according to him, does not only deliver the company’s crude to the terminal but it carries crude for five other companies including Shell. He said the shutdown impacts the firm in financial terms. ‘’As a result of these pipe breakages and oil theft, we have lost over $2 billion in the past four years. This is what we have lost not just as a company but also as a nation’’, he added.

    ‘’The consequential royalties and other revenues that ought to accrue to the government were lost just because of the activities of these vandals. That is why we are calling on government to collaborate on finding a lasting solution to this menace’’.

    The Aiteo chief explained that the challenges in the industry call for the need for the Federal Government to conclude on the Petroleum Industry Bill (PIB) to secure oil and gas infrastructure. “If the government can do that, we will have more money available to build infrastructure for the country and save our petro dollars,” he said, adding that Aiteo as one of the pioneers of indigenous oil companies has come out strongly to invest in drilling, re-entries, and new wells.

    On gas production increase, Okonkwo stated that if the company achieves the planned production target, such quantity of gas would be enough to generate more than 1.2 gigawatts of electricity, which will contribute substantially to solve Nigeria’s power sector problem especially unstable electricity supply and frequent blackouts.

    On the downstream arm of the company, Okonkwo said the company has the largest installed storage capacity for petroleum products in West Africa, which is over 230million litres.

    Meanwhile, the company is looking at investing about N1 billion in education, health and security for its host communities in Bayelsa State. Besides several other things, the company provides power, for the communities. Okonkwo said the company plans to build 24 hours uninterrupted power in the coming years for the people.

    “Our host communities are very important to us and at this point I like to give it to the communities of Nembe who are hosting majority of our production and they have been supportive in Aiteo’s goal to achieve its objectives,” Okonkwo stated.