Tag: Alison-Madueke

  • FG to reduce gas flaring to two per cent

    The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, on Tuesday said government would reduce gas flaring from 11 per cent to two per cent in 2014.

    The News Agency of Nigeria reports that the minister said this at the ongoing 13th Nigerian Oil and Gas Conference in Abuja.

    She said that currently, the ministry had reduced gas flaring to less than 11 per cent as against 30 per cent in 2010 which she said was still not adequate.

    “This year conference gives us great opportunity to discuss and address the oil and gas business, challenges and government’s plan to the sector in the next five years.

    “The ministry of petroleum had played a critical role in transforming the oil and gas sector which has been the primary objective of the ministry.

    “The oil and gas sector had witnessed tremendous renewal performance level in the last three years ago under the leadership of President Good luck Jonathan, which has placed the industry in better development, “the minister stated at the conference.

    Alison-Madueke said that in the upstream sector, the ministry had continued over the last 12 months to maintain its production of 2.4 million barrel per day.

    She said that gas production in the country had also increased from 6.3 billon Standard Cubic Feet per day (SCF) to 7.8 billion SCF per day in 2012.

     

  • Alison-Madueke: A minister and her passion

    Alison-Madueke: A minister and her passion

    Vilified and often attacked for being responsible for the rot in the nation’s oil and gas industry, the minister of petroleum resources, Diezani Alison-Madueke, has borne everything with strong equanimity and an unwavering determination to deliver the goods. In this report, a look is taken at those areas where the minister has acquitted herself well in the face of daunting challenges and limitations.

    While ‘bashing’ public officials seems to be the pastime of Nigeria’s criticising public, only very few public officers have been subjected to attacks, both personal and official, like Diezani Alison-Madueke. While some had said she is the most corrupt minister, some said she is so powerful to the extent that she dictates to the president. She has also been accused of being behind the recent crisis that has bedeviled the oil and gas sector in the last few years. Recently, she was accused of being behind the ugly drama that characterised the submission of the report of the committee set up in the wake of last year’s subsidy protests and headed by former chairman of the Economic and Financial Crimes Commission, EFCC, Mallam Nuhu Ribadu. But come to think of it, what have they not accused her of since she joined government? Some members of the committee had openly disagreed with the version of the report being presented to the President. Critics said Diezani and some Presidency officials actually colluded with the ‘disgruntled’ members of the committee to discredit the report so as to protect some friends of the president.

    While these and other such debilitating criticisms have been made against the woman, they have not in any way prevented her from recording some modest achievement which even her staunchest critics could not deny her. In fact, observers of the oil and gas sector have singled her and her Aviation counterpart, Stella Oduah, another female minister, as two ministers who are really executing President Jonathan’s transformation agenda

    The local content champion…

    Determined to ensure that there is greater participation of Nigerians in the oil and gas sector, the minister has been pushing for creating the enabling environment for more Nigerians to come in into the capital intensive but lucrative upstream sector of the petroleum industry. Diezani is said to be so passionate about this that she is more or less a lone soldier pushing the Petroleum Industry Bill, PIB. Though the bill has faced a lot of opposition both from politicians and some foreign oil interests, sources said this has not deterred the woman from trudging on. Observers also state no past oil minister has helped local indigenous companies like the current minister who always jumps at any opportunity to help any indigenous company in the sector to succeed.

    That the nation may have adequate fuel.

    One of the reasons adduced for the rise of oil subsidy thieves and the attendant fleecing of the country that went with it was the fact that the federal government did not have adequate storage facility and even when the Nigerian National Petroleum Corporation, NNPC, imported fuel at times, it had to rely on private tank firms to store the commodity. But the minister of petroleum resources seemed to have noticed this when she initiated the refurbishment of the Benin Depot of the Pipelines and Products Marketing Company, PPMC, which was commissioned last week. The facility was first constructed in 1978 and was commissioned the following year. But since 2005, the facility has been dormant due to lack of adequate maintenance. The depot has a combined capacity of over a hundred and twenty thousand litres of petrol, kerosene and auto mobile gas oil. Apart from this, the facility has nine loading arms which make it easy for trailers to come in and take products simultaneously. The depot was meant to serve the evacuation of products from the Warri refinery through a gas pipeline that spans almost ninety kilometres. Speaking at the re-commissioning of the depot, an elated Alison-Madueke said she was delighted that government of President Jonathan was living up to its promise of ensuring adequate fuel supply. “I am delighted that under the administration of Dr. Goodluck Ebele Jonathan, the depot has been put back in operation and able to deliver products to the good people of Edo State and its teaming consumers. Also, I am pleased that through the concerted effort of NNPC Management and Staff, under my leadership, we are steadily yielding the desired outcomes.” Not done yet, the minister informed her audience that “the Depot we are re-commissioning today has the capacity to hold 59 million litres of PMS, 32 million litres of DPK, and 28 million litres of AGO. The resumption of commercial activities to this very important facility is a major milestone towards the restoration of steady products supply to Benin and its environs.”

    Alluding to the menace pipeline vandalism had become in the country, the wife of the former military governor of old Imo State, Rear Admiral Alison Madueke said it was worrisome “that the menace of pipeline vandalism has now become a national security challenge with the latest example being the incident in Arepo, Ogun State which forced the shut-down of an entire line segment that serves as the gateway for petroleum products supply and distribution of over 60% of national requirement. Furthermore, the cost of products losses and repairs due to vandalism has continued to grow to an alarming level. In addition, the consequential cost of environmental remediation from the resulting spillage associated with vandalism and the loss of lives and properties of innocent Nigerians are unnecessary burdens we should not have to bear as a nation.”

    An obviously impressed former Labour leader and incumbent governor of Edo State, Comrade Adams Oshiomhole, said he was impressed by the re-commissioning of the depot in Benin, the Edo State capital. He said he was now sure that the trips he usually made to Warri to solicit for the supply of petroleum products to Edo State was no over with the commissioning of the depot.

    “The honourable minister has demonstrated that indeed good things can come from the petroleum industry as well as the NNPC. I thank God that I don’t have to make such long walk to Warri again because the Benin depot is back to service,” he said. Another major milestone in the minister’s stewardship was the commissioning of the Oredo Gas Handling Plant last week. Speaking at the event, Alison-Madueke said the facility, its construction and commissioning were an indication that the nation has arrived in the production of gas and allied products.

    “It is of interest to note that NPDC is now the major gas supplier to the nation’s domestic market, with a current supply of approximately 400MMscfd and an expected growth to 600MMscfd by year end. Today’s commissioning of the Oredo Early first gas phase, which is currently delivering 65MMscfd to the domestic market clearly demonstrates this growing capability of NPDC to take a leading role in the Federal Government’s quest to rapidly increase gas supply, and it is my hope that by the end of this year, the complete Integrated Gas Handling Facility (IGHF) which will deliver 100MMscfd of lean gas, and about 330 tons of LPG per annum to domestic consumers will have been completed.”

    The announcement by PPMC Managing Director, that the Maiduguri Depot will be rehabilitated in the next 60 days is another cheery news for people of that zone. A it will significantly ease the fuel challenge the people of that zone face daily.

    Jobs for teeming youths.

    As earlier stated, one of the things dear to the heart of the petroleum minister was greater participation of Nigerians in the oil and gas sector. While she has pursued this vigorously, little did critics of the government know that as at today, the participation level of Nigerian-owned companies in the oil and gas sector has moved up to an impressive eighty-seven percent. While this might not mean so much to the man on the street, the fall-out of this is that about thirty thousand jobs have been created out of this. Speaking at a meeting, the Nigerian Content Development and Monitoring Board, Diezani said by asking companies to do the ‘right thing’, they have succeeded in getting more and more Nigerians to be involved in the oil and gas industry “just by insisting on using Nigerians in the industry, we have deepened the local supply chain.”

    The minister said the jobs were generated in the engineering, fabrication, marine transportation, logistics and exploration and production sub-sectors of the oil and gas industry, and expressed optimism that the job growth would be sustained.

    “I have no doubt that more jobs will be created in 2013 and we shall achieve greater localisation of the industry services, manufacturing and fabrication in 2013,” she said.

    Alison-Madueke noted that the Nigerian content implementation had increased the level of participation of Nigerians in oil and gas contracts to 87 per cent. “The board has to a large extent achieved consensus in most aspects of Nigerian Content implementation to the extent that there has been no major dispute amongst stakeholders on interpretation of provisions of the Nigerian Content Law.”

    Suddenly everything seems to be coming together under her leadership for the good of country. Now there is no denying the fact that she has done quite well; especially in the area of ensuring more local participation in the oil gas industry. Even if critics would never give her the credit.

     

    Affia wrote in from London

     

  • Okonjo-Iweala’s, Alison-Madueke’s, Sanusi’s absence stalls probe

    The absence of five ministers and Governor of the Central Bank of Nigeria (CBN) has forced a postponement of a public hearing by a joint probe panel of the National Assembly into the implementation of the Subsidy Reinvestment and Empowerment Programme (SURE- P).

    One hundred and eighty billion Naira was budgeted for the SURE-P last year, but the committee was allocated N273.52b for the 2013 fiscal year.

    The Chairman of the House committee, Dakuku Peterside, described the absence as an intentional disrespect for the parliament and its proceedings.

    Describing the act as a ‘deliberate contempt’, Peterside said it was regrettable that it was only the Chairman of SURE-P, Dr. Christopher Kolade, who notified the joint committee of his absence.

    Those that failed to appear are the Minister of Finance, Dr. Ngozi Okonjo-Iweala; Petroleum Minister, Diezani Alison-Madueke; minister of Labour and Productivity Chief Emeka Wogu; Minister of Transport Idris Abdullahi Umar; CBN Governor Lamido Sanusi and the Accountant-General of the Federation (AGF), Jonah Otunla.

    Following their absence, February 12 has been fixed for the hearing.

  • Alison-Madueke praises Net-Work  Oil for Oredo gas project

    Alison-Madueke praises Net-Work Oil for Oredo gas project

    The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke has commended Net-Work Oil and Gas Limited, and indigenous oil service company, for the completion of the construction of the first phase of the Oredo Integrated Gas Handling Facility (IGHF).

    The facility owned by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), is located at the Oredo oil field in oil mining lease (OML) 111 in Edo State, has begun to deliver 65 million standard cubic feet per day (scf/d) of gas for domestic use, especially the power plants under the National Integrated Power Project (NIPP).

    When the project is completed, it will have the capacity to deliver 100 mmscf/d of gas.

    The minister commended the Managing Director of Net-Work Oil and Gas, Mr Clifford Osawaru and the NPDC for exceeding the government’s expectation in the project’s delivery. The facility is a 100 per cent local content facility.

    The Minister said since the Nigerian Content Act was signed into law in 2010, indigenous marketers, operators and service providers in the downstream sector of the oil and gas industry have developed capacity. She said: “I think the Oredo gas plant is a fantastic example of this sort of indigenous enterprise where a wholly indigenous crew has worked with the NPDC to bring a gas plant to fruition within the shortest possible time; and to make good Mr. President’s 12 month emergency gas supply plan.

    “It is wonderful for us and very satisfying for me and the Group Managing Director of NNPC to see that by the end of 2013, this plant alone will be supplying to the domestic gas market a hundred million standard cubic feet of gas per day. Already, as we speak, it has ramped up and is supplying 76 mmscf/d of gas, and I think that is quite amazing.”

    She stressed that with the commissioning, the country will be getting gas for power supply as well as liquefied petroleum gas (LPG) for domestic consumption. The spin off effect will further assist in moving the economy forward by opening up the service sector to indigenously owned companies to be able to produce a facility like the IGHF.

    The Group Managing Director of NNPC, Andrew Yakubu, said the Oredo IGHF is unique and dear to NNPC because it is the first major gas development project which is aimed at the realisation of a strategic road plan of being an integrated and oil and gas company. It is also special because it symbolises our response to the Federal Government’s gas to power initiative.

    He said: “NPDC produces an average of 130, 000 barrels per day and ranks as the fifth largest oil producer in the country. NPDC is poised to surpass its target of 250 barrels of oil equivalent per day by 2015.

    “Where we are standing today in Oredo covers a block of about 460 square kilometres consisting of three fields with an average production of 6, 000 barrels per day and with more prospects for further development. The average production from this field in the past 15 years was stagnated at less than 1,000 barrels per day. This facility also has the capacity to eliminate gas flaring in compliance with the Federal Government environmental requirements. Furthermore NNPC, NPDC are pursuing with vigour the development of more resources in order to provide gas to Pan Ocean Oil Company limited to optimise the utilisation of its Ovade Ogharefe gas plant.”

    Osawaru thanked the minister and the NNPC chief for giving the company the opportunity to prove that Nigerian companies have all it takes to excel. “I want to express my appreciation to President Goodluck Jonathan, the minister, the NNPC group managing director and the Federal Government for giving us the opportunity to showcase our capabilities. With this plant, there will be no doubt that Nigerian companies have come of age in the oil and gas sector.”

    The Managing Director of NPDC, Victor Briggs said the oil and gas reserves in the Oredo asset has increased by almost 400 per cent. “Today, NPDC has two rigs on location. One completing the Oredo South well, which is part of the 100 million scf/d of gas that will be supplied through the Pan Ocean facility. The other rig is in our offshore location in OML 119. By the end of 2013, a total of four drilling rigs, that is one offshore, two land and one swamp will be working for us. We are set to meet the target set for us to attain 250,000 barrels per day of oil production by 2015.”

  • Why Delta gas project’s site was changed, by Minister

    Why Delta gas project’s site was changed, by Minister

    THE Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has explained why the Federal Government relocated the proposed site for its multi-billion dollar gas-based industrial park in Delta State from its original location in Koko to Ogidigben. She said the need to create a competitive gas-based industrial park that could attract global players in the gas market informed the shift.

    Mrs. Alison-Madueke, who spoke at the Nigerian Gas Association (NGA) conference in Abuja, said the move became unavoidable due to the need to optimise the potential in the project which were factored  in its gas revolution agenda that President Goodluck Jonathan launched last year.

    The Minister, who was represented by the Group Executive Director (GED), Gas and Power of the Nigerian National Petroleum Corporation (NNPC), Dr. David Ige, said the new  projects at the new site will start in the second quarter of 2013 and completed between 2016 and 2017.

    She said: “Basically, what we are trying to do is to ensure that we are creating a gas-based industrial agenda that is going to be competitive globally. A lot of factors came into play. We have considered various locations. Koko was the desired location; originally, it is land-based, accessible and has a port of its own but as the agenda started to grow, it was evident that for the size of fertilizer that we are now beginning to look at and the size of petrochemical that is beginning to materialise, the kind of vessels that you will require to evacuate those products becomes a lot bigger than what we even started with.

    “We started with a smaller capacity fertiliser and petrochemical plant but the investors are stepping up the game and when you do that and look at 50,000tonnes dead-weight vessels, then the Koko channel becomes a problem because it requires a significant amount of dredging over a long distance to the coast and that informs an optimisation of location,”

  • Why some people want me sacked – Alison-Madueke

    Why some people want me sacked – Alison-Madueke

    The Minister of Petroleum Resources, Mrs. Deziani Allison-Maduekwe, has attributed the call for her sack to her insistence on doing things the right way.

    The minister argued that the few individuals calling for her sack were doing so because she has refused to continue the “business as usual” tradition in the oil and gas sector of the economy.

    Besides, she described those labelling her as corrupt and inefficient as people simply afraid of the ongoing reform in the sector.

    She also vowed that never again will the government allow the return of the age-long cartel in the country’s oil and gas sector.

    Madueke, who spoke to journalists in Abuja on Thursday assured that the attack notwithstanding, she would continue to push for the transformation agenda of President Goodluck Jonathan in the oil and gas sector.

    She said those fighting the government in the media “were doing so because we have been able to frustrate their efforts in strangulating the economy through their devilish black market and questionable profiteering at the expense of the Nigeria people.”

    “I would not want to join issues with those criticising me because they are crying foul that through us Mr. President has broken the old order where things are done without coordination. What is hurting them is that we have put policies in place where they can no longer cheat the government and cause untold hardship for millions of Nigerians.”

    According to her, operators and stakeholders in the oil and gas sector that have the interest of Nigeria and Nigerians at heart need not be afraid of her leadership style, except those that have skeleton in their wardrobe and are scared of change and reforms.

    The minister, who commended the cordial relationship between her and top officials of the ministry including those of the Nigerian National Petroleum Corporation (NNPC), Petroleum Pricing and Marketing Company (PPMC), Directorate of Petroleum Resources (DPR) and other parastatals of the ministry, explained it was the harmonious relationship that has brought about the high level successes recorded by government in the sector.

     

     

  • Minister’s briefing delays Reps debate on PIB

    Minister’s briefing delays Reps debate on PIB

    The House of Representatives yesterday postponed the debate on the contentious Petroleum Industry Bill (PIB) to enable the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, to brief the House.

    The debate was deferred till next week. This makes it the second time the debate on the bill would be postponed. It was billed for discussion before the House went on recess. Just like the first occasion, the PIB was listed on the order paper for debate, but this was not taken.

    When she was invited to take the lead debate at plenary yesterday, the House Leader, Mulikat Akande-Adeola, said ministerial details were lacking in the bill and therefore requested for more time to enable her receive briefing from the minister.

    Sequel to the demand by the House Leader, the Speaker said: “House Leader has requested that we step down consideration until she gets briefing from the Petroleum minister.

    “We will begin debate on PIB next week. Honourable members intending to contribute are to drop their names with either of the whips.”

    The first time the House refused to debate the PIB was on the eve of the House’s two- months break.The House while rejecting the bill, wondered why the Presidency was sending it at the onset of a two-month recess, adding that the act was not only mischievous but also an effort at blackmail.

    The House yesterday resolved to merge the Petroleum Industry Bill with a similar member bill sponsored by Kaka Kyari Gujibawu, entitled, ‘A Bill for an Act to Establish the National New Frontier Exploration Agency, for the purpose of Exploration and Production of Oil and Gas in the frontier of chad basin, Dahomey basin, Imo basin, Benue trough and Sokoto Basin.’

  • ‘Alison-Madueke hasn’t given discretionary oil block’

    ‘Alison-Madueke hasn’t given discretionary oil block’

    The Association of Good Governance and Probity in Nigeria has absolved the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, of the alleged discretionary award of oil blocks and the missing signature bonuses paid for them.

    The report of Mallam Nuhu Ribadu-led Task Force on Petroleum Revenue that was submitted to President Goodluck Jonathan last week but earlier seen by Reuters, which reported that a total of $183 million realised from signature bonuses paid by oil companies to the federation was missing.

    Reuters’ report accused the Ministers of Petroleum Resources that served between 2008 and 2011 of giving out seven discretionary oil licences and which the $183 million signature bonuses allegedly realised from them got missing, which also led to calls for resignation or sack of Alison-Madueke by some groups.

    The spokesman of Association of Good Governance and Probity in Nigeria, Mr Daniel Agada, however, said the group’s investigation at the Department of Petroleum Resources (DPR), showed no discretionary award of oil blocks has taken place during this administration. It added that the most recent discretionary oil block award took place in 2008, while others are marginal fields.

    The group said the acreage allocation done in 2008 was to Addax and partners, which Addax Petroleum had 40 per cent equity; Express Petroleum 39 per cent; and Petroleum Prospect 21 per cent. The acreage, it noted was originally discretionally awarded in the 1990s but passed through protracted litigation until it was concluded in 2008. It added that the signature bonus paid for the allocation was $10 million.

    They also said it was important to distinguish between the issuing of oil blocks with that of marginal fields.“There were some discretionary award of marginal fields such as Okwok and Ebok which were awarded to Oriental Energy in May 2007 as compensation for losses due to boundary adjustment; Ubima was awarded to All Grace Nigeria Limited in 2010, as encouragement for commitment to small scale gas project; and Otakipko was awarded to Green Energy Limited, also in 2010 for the same reason.

    “It is pertinent to note that this is standard practice and not one that was initiated by the present government. It is clear that there is not enough understanding of the difference between exploration block (OPL) awards and marginal fields awards. The report has resulted in massive confusion. The three (Allgrace, Oriental and Green Energy) are marginal field awardees and they all paid flat signature bonuses of $150,000 per field as per pre- existing marginal fields guidelines,” the group said.

    Marginal fields areacreages considered commercially unviable by the big player such as the international oil companies and are given to small exploration and production indigenous companies.

  • Ribadu committee, oil politics and test of leadership

    In unseemly disagreement broke out on Friday among members of the Petroleum Revenue Special Task Force as the committee chairman Mallam Nuhu Ribadu submitted the final report to the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, and President Goodluck Jonathan. The disagreement, which took place at the Presidential Villa, was triggered by two committee members, Mr Stephen Oronsaye and Ben Oti, who both tried to rubbish the report by describing it as one-sided, hasty and full of inaccuracies. But Ribadu and other committee members stood their ground and described the two dissenters as compromised board members of the NNPC who absented themselves from the committee’s meetings since the special panel was constituted in February.

    The substance of the quarrel was that the report was too harsh in its conclusion that Petroleum ministers since 2008, including Alison-Madueke, gave out seven discretionary oil licences, and cannot account for the $183m (N28.73bn) signature bonuses which the government should have received. The report also contained even harsher verdicts on the unprofitable way Nigeria’s oil and gas resources have been managed over the years. Though the president tried to assuage passion by calling on the dissenters to prepare a minority report, and the Petroleum minister also indicated she was neutral in the whole affair, it was clear to everyone that the disagreement suggested that far worse scandal lurks in the Petroleum ministry. In fact, Ribadu was so peeved by both the scale of indiscretions in the management of the oil industry and the attempts to cover them up that he took the unusual step of telling the public that aspects of the report leaked by Reuters to the world last week were emphatically no misrepresentation at all.

    I rejoice that the unseemly exchange happened before newsmen and in the presence of the president. As Ribadu hoped in his remarks during the presentation of the panel’s report, let us all believe that the government will have the courage to tackle the rot in the oil industry and rejigger its modus operandi. I am, however, privately pessimistic. Were it to be any other civilized country, the former oil ministers to whom the Ribadu report pointed the finger of guilt would be preparing their briefs to defend their integrity, and the current minister would be preparing to step aside.

    The open disagreement in the Council Chambers on Friday is also a testimony to the consistency of Ribadu himself. I once described the former EFCC chairman as too much in haste, too ambitious, and his judgement sometimes questionable, even wondering whether he could ever be a level-headed president were he to assume that office. But there is no question that he is a patriot and is unalterably committed to the stability and progress of his country. I was worried early in the year, when he was appointed to handle that special assignment, that the probe exercise was government’s gimmick to buy time over its fuel price hike misadventure, and to exploit the credibility of Ribadu. It is a relief that the former EFCC boss has acquitted himself well, though he sometimes finds it hard to disguise his inquisitorial tendency.

    Since his first public appointment, Ribadu has repeatedly given indication that he has the character of true leadership. It is not just honesty that fails most Nigerians when they face grave and impossible tests; what often fails them is the courage to look power in the face and say and do what is right. No matter how much the Jonathan president wants to dither over this report, I rate Ribadu’s performance as exemplary, and recommend his fearlessness and patriotism to aspiring leaders.

  • Nigeria will hold licensing round by year-end – Alison-Madueke

    Nigeria will hold licensing round by year-end – Alison-Madueke

    Nigeria will hold an oil exploration bidding round before the end of the year, while licence renewal talks with Shell and Chevron over existing onshore fields are in their final stages, the minister of petroleum, told Reuters on Tuesday.

    “We expect within the next couple of months a marginal bid round will be announced. We hope a major bid round will follow before the end of the year,” Diezani Alison-Madueke said.

    “Shell and Chevron (onshore licence renewals) are … in the final stages now, those will definitely be out before the end of the year,” she added.

    Exxon Mobil signed 20-year oil licence renewals on Nigerian onshore assets producing around 550,000 barrels per day in February but other oil majors are still negotiating terms with the government.