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Tag: Chevron

  • Oil field inferno: Ondo urges Chevron to protect lives

    Ondo State Government has urged Chevron Nigeria Limited to prioritise the safety of lives and properties of citizens, following a fire outbreak at Oju Imole Oil Field in Ilaje Local Government

    The inferno started last Thursday after an explosion.

    Deputy Governor Agboola Ajayi, while receiving a delegation from Chevron in his office in Akure, the state capital, called on the company to deplore all necessary resources to ensure the fire was put out on time and forestall recurrence of such incidence.

    Ajayi said the company must act fast to ensure that the community is safe again for the residents since they do not have any other home.

    He said the oil deposit in the community should be a source of blessing to residents rather than a source of worry.

    The deputy governor stressed the importance of the oil producing areas to the state’s economy.

    The leader of the Chevron delegation, Mr. Brikinns Esimaje, said the company was doing everything possible to put out the fire as well as addressing both the immediate and remote causes of the inferno.

    Esimaje said the visit would allow them to work with government in the interest of the host community’s safety.

    He said: “The reason for coming here is to really have a face-to-face discussion with government and to update the government on the incidence,” he said.

    Commissioner for Environment Mr. Funso Esan said the report of the inferno at Oju Imole Oil Field was received during Easter holidays and government had been working hard to ensure the safety of residents.

    Esan said the meeting with Chevron would allow the government to iron out issues of safety of residents in the oil exploration area.

     

  • Oil Field Inferno: Ondo urges Chevron on safety of residents

    Ondo State Government has charged Chevron Nigeria Limited to prioritise safety of lives and properties of citizens following a recent fire outbreak at Oju Imole Oil Field in Ilaje Local Government

    The inferno started last Thursday after explosion.

    The State Deputy Governor, Agboola Ajayi, while receiving the delegation from Chevron in his office in Akure on Monday, called on the company to deplore all necessary resources to ensure the fire was put out on time and forestall recurrence  of such incidence.

    Ajayi said the company must act fast to ensure that the community was safe again for the residents since they do not have any other home.

    He said the oil deposit in their community should be a source of blessing to them rather than a source of worry.

    The deputy governor stressed the importance of the oil producing areas to the economy of the state.

    Read also: UPDATED: Fire guts five oil wells in Ondo riverine community

    The leader of the Chevron delegation, Mr Brikinns Esimaje, said the company was doing everything possible to put out the fire as well as addressing both the immediate and remote causes of the inferno.

    Esimaje said the visit would allow them to work with government in the interest of the host community’s safety.

    He said” The reason for coming here is to really have a face to face discussion with government and to update government on the incidence,” he said.

    Earlier in his remarks, the State Commissioner for Environment, Mr Funso Esan, said the report of the inferno at Oju Imole Oil Field broke out during Easter holidays and government had been working hard to ensure the safety of residents.

    Esan said the meeting with Chevron would allow government to iron out issues on safety of residents in the oil exploration area by Chevron.

  • Lonadek, Chevron partner to train 12 drilling engineers

    For six months, Lonadek Oil and Gas will be training 12 drilling and completion engineers to boost local expertise in that field of endeavour.

    The training tagged, ‘’The Human Capital Development Initiative (HCDI) in Drilling and Completions’’ is being supported by Chevron Nigeria Limited under its Joint Venture Partnership with the Nigeria National Petroleum Corporation.

    At the opening ceremony of the training held at Lonadek’s Office in Yaba last week, Principal Consultant, Lonadek, Dr Ibilola Amao, said the trainees would be upskilled in the area of well and drilling services such that they would be able to take on jobs that would otherwise have gone to expatriates.

    Dr Amao, said the purpose of the programme was not to compete with expatriates but to boost improve the performance of local professionals.

    She said the firm, in collaboration with various stakeholders in the oil and gas sector, developed an internationally-acceptable curriculum for the programme.

    She said the trainees, who are early-mid career well engineers with at least five to eight years of experience, would be able to find Nigerian role models, mentors and coaches online, who will support them throughout their six month training and the five-year certification programme that would follow.

    Beyond the training, Dr Amao said the HCDI participants would continue to enjoy a lot of mentoring as they rise in their jobs.

    Ultimately, Amao said the aim of the HCDI is to foster a relationship between town and gown that would lead to the development of robust industry-fit training in tertiary institutions.

    “The programme would also bridge the gap between industry and academia, as it sets to strike top-notch centers of excellence to upgrade designing curriculums and industry interventions to improve the quality of graduates.

    “It would also promote lecturers skills to provide improved lectures, laboratories, courses and research development and facilitate meaningful durations of equipment sort as materials by higher learning institutions,” she said.

    In her remarks, General Manager, Nigeria Content Development, Chevron Nigeria, Anike Odunlami, expressed hope that by the time they are done with the training, the participants would be world class drilling and completions professionals in well planning and design, management of well operations, and project management.

    “This recent development and initiative is actually in compliance with the requirements of the Nigerian Oil and Gas Content Development Act, which was passed into law in 2010 and reflects Chevron Nigeria’s commitment to Nigeria content development.

    “Chevron in partnership with the Nigerian Content and Human Capital Development (NCHCD) division of the Nigerian Content Development and Monitoring Board (NCDMB) has continued to train and equip Nigerians to deliver value in the oil and gas industry through exposure to executive and management trainings, and professional skills trainings during project executions,” she said.

    She congratulated NCDMB on its contribution to the Nigeria content development, especially in developing and harnessing in-country capabilities.

    Mrs Odunlami counselled the trainees to be active participants in all the trainings and make use of all opportunities it provides to enhance their skills.

  • Chevron bags NIPS awards

    Chevron Nigeria Limited (CNL), operator of the NNPC/CNL Joint Venture, has won two awards at the   industry dinner and awards night, organised by the Nigerian Nigerian International Petroleum Summit (NIPS) in Abuja. The awards were in recognition of the company’s outstanding performance.

    The awards won by CNL are: “for contributions to the hydrocarbons industry, and the Foreign Investment Network’ (FIN)“.

    CNL Chairman and Managing Director, Jeff Ewing, received the two awards. The first award was presented by the Nigeria’s Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, while the second was presented by FIN Chief Executive Officer, Michael Dragoyevich.

    The event was attended by dignitaries such as Kebbi State Governor Abubakar Atiku Bagudu; Petroleum Ministers from other countries, including Equatorial Guinea, Sudan, Cote D’Ivoire, Chad, Niger Republic, Togo and Norway. There were others such as NNPC representatives, industry regulators, participants from other African countries, and other industry players.

    CNL General Manager, Policy, Government and Public Affairs (PGPA) Esimaje Brikinn, who spoke at the event, expressed joy over the awards.

    He explained that the NNPC/CNL Joint Venture is a major oil and gas producer and has provided substantial revenue to NNPC, the Federal Government and state governments for over 50 years.

    He also said the company is the leading domestic gas supplier and has made great strides in putting out gas flares and increasing supply to the domestic market through its integrated gas development projects.  “Chevron is the largest domestic gas supplier in Nigeria,” he said.

    On corporate responsibility, Mr. Brikinn said CNL has demonstrated its commitment to the ideals of meeting the needs of the community in health, education, economic development areas.

    “CNL has provided thousands of scholarship awards worth billions of naira to Nigerian students. CNL has also established the scholarship for the Blind to cater for the visually-impaired students,” he noted

  • Pay more to flare less? Calculating the costs of flaring gas in the oil and gas sector

    It’s been 60 years since Nigeria joined the World Oil Producers and reaped riches from its oil production. It made its first oil discovery at Oloibiri, Bayelsa in 1956. In 1958, its first oil field came on stream, producing 5,100 barrels per day. By the late sixties and early seventies, Nigeria had attained a production level of over 2 million barrels of crude oil a day.  In 2016, the country could boast of 37 billion barrels oil and gas reserve as reported by the Nigerian National Petroleum Corporation (NNPC), the State’s oil company. Today, Nigeria’s crude oil production is at 2.2 million barrels per day.

    Since 1956, a good number of oil and gas companies (foreign and local) have set up shop in Nigeria. Shell Petroleum Development Company (formerly known as Shell BP) was the first oil and gas company in the country. It drilled 12,008 feet at Olobirin Well No.1 (now dried up). Today, Chevron Nigeria Ltd, ExxonMobil, Nigeria Total, Nigerian Agip Oil Company are some of the other key players in the Nigerian oil market.

    What we got from oil and gas in 15 years

    Data from the Nigeria Extractive Industries Transparency Initiative (NEITI) shows that companies in the oil and gas sector in Nigeria paid about $347 trillion revenue from 1999 to 2014. This amount was paid to government agencies through a variety of revenue streams such as extraordinary taxes on income, profits, and capital gains, royalties, bonuses, emission and pollution taxes, and general tax on goods and services etc.

    While extraordinary taxes on income, profits, and capital gains are paid for the sale of assets like land and properties, general taxes on goods and services are indirect taxes paid on consumption of goods and services by private individuals. Royalties, on the other hand, are paid for the exploitation of natural resources connected with land and minerals. In the oil and gas industry, royalties are pay for oil produced from a concession. he rates are set based on the location of the field. Therefore, the deeper the concession area is, the lower the applicable rate.

    Bonuses in the oil and gas industry are paid at a specific time within a project timeline. A very important one is the signature bonus. A signature bonus is paid by a concessionaire at the time an oil prospecting licence or oil mining lease is granted. Finally, emission and pollution taxes are paid for the emission of toxic particles that are devastating to our environment and harmful to health.  Oil and gas companies pay a certain amount for gas flared and oil spilled.

    In this article, because of their direct impact on host communities and the environment, we focus on the latter: emission and pollution taxes.

     

    The charts above help to identify the sources of gas flaring in Nigeria. If the assumption that the more gas an organization flares, the more emission and pollution taxes it pays is correct, the first set of companies to hold responsible for air pollution and environmental degradation in Nigeria would, of course, be Shell Petroleum Development Company and Chevron Nigeria Limited. These companies paid the highest taxes ($44,787,000 and $44,570,000) in 15 years. Addax Petroleum Development Nigeria Ltd (ADDAX/APDNL), Nigerian Agip Oil Company (NAOC), and Mobil Producing Nigeria Limited (MPNU) follow. How much volume of gas have these top emission and pollution taxpayers flared in 15 years? Let’s dig into data. A little arithmetic might also be needed.

    Charts E-I shows the top emission taxpayers, the amount paid in dollars and the exchange rates applicable in years covered by the data. Chart J shows the naira equivalent of the sum total of each company’s payments in those years. From the charts, it can be seen that Chevron appears to pay a little higher than Shell in naira while the converse is the case in dollars. It might therefore seem that one of these companies flares the most gas in Nigeria. However, a little more insight is required to draw any useful conclusions.

    In Nigeria, there are regulations governing gas flaring. Over time, there have been different penalty rates per 1,000 Standard Cubic Foot (scf). For example, N10 per 1,000scf was applicable in 1998-2008 while in 2009 – 2017, the government set $3.5 for every 1,000scf gas flared (although, a report by NEITI states that, up until now, the penalty hasn’t been enforced and adhered to). Going by the N10 per 1,000scf rate which was paid until 2018 when the rate was reviewed and set at $2 for 1,000scf, Shell Petroleum Development Company paid about N5.2 billion between 1999-2014. At N10 per 1,000scf rate, the company had flared a total of 520,392,266,400 scf gas. Using the same calculation model, Chevron Nigeria Limited flared 550,007,562,600 scf gas, Addax Petroleum Development Nigeria Ltd flared 317,890,191,000 scf gas, Nigerian Agip Oil Company 261,554,792,800 scf and Mobil Producing Nigeria Limited flared 249,794,641,300 scf gas.

    For those not familiar with SCF, the oil equivalent of the volume of gas flared might be easier to follow: If gas were to be oil, it simply means the five top companies had spilled more than 92 million, 97 million, 56 million, 46 million, and 44 million barrels of oil from 1999 – 2014 respectively. The chart below presents a clearer picture of this data.

    Making Amends

    The facts have not gone unnoticed. In 2015, the NNPC and Chevron Nigeria Limited (NNPC/CNL) Joint Venture revealed its plan to reduce gas flaring by 98 percent and it announced the completion and load-out of the topside module of the SONAM Non-Associated Gas, NAG, Wellhead Platform project in 2016. Unfortunately, the positive effect of this has not really been felt nor seen.

    It was also reported that the Federal Government’s plan to end gas flaring by 2020. It also planned to introduce the “National Gas Flaring Commercialisation Programme”, an initiative that would generate about 36,000 direct jobs, 200,000 indirect jobs in the Niger Delta and ensure the redirection of the utility of gas for cooking, electricity and other industrial purposes.

    In the meantime, Nigerians continue to suffer from the health hazards of gas flaring. The ordeal and agony of residents of Edo, Delta, Bayelsa, Imo, Akwa Ibom and Rivers states, (especially the host and neighboring communities of the oil and gas companies) are better imagined. Media reports have it that satellite images provided by the tracker located 222 of gas flaring incidents happening around 65 onshore oil wells these states.

    Respiratory problems, cardiac diseases, bronchitis (inflammation of the lungs), silicosis (lung disease contracted by inhaling impure air) skin rashes, insomnia (sleeplessness), and eye irritations are some of the frequent ailments in such communities. The residents are exposed to all kinds of airborne diseases.  Egbema and Mgbede  and many more cases were reported in the media.

    With the new law of $2 for 1000 scf gas flared, the oil companies are likely to flare less. The new penalty is aimed at discouraging gas flaring, to encourage the redirection of gas flared from waste to wealth and preserve the environment and the lives of the residents in such environments. The government might also call back the debt of companies who defaulted when the rate was at N10 and make them pay at the current rate. If this is done, the organisations involved would be made to pay heavily and as such, gas flaring would not be considered an alternative anymore.

     

  • Maritime workers threaten showdown with Chevron

    THE Maritime Workers Union of Nigeria (MWUN) has threatened to embark on a picketing exercise in all Chevron Nigeria Limited’s (CNL) locations in Delta state over alleged exploitation of its workers.

    According to a statement by Comrade Amos Popo, chairman of the union and made available to journalists in Warri, the union is embarking on the picketing because Chevron and its marine contractors have “neglected, failed and deliberately refused to recognise the rights of workers to associate and bargain collectively.”

    Comrade Popo stated that the union had earlier issued a 14-day ultimatum to Awaritse Nigeria Limited (ANL), one of CNL’s major marine support providers, to enter into collective bargaining with the union which has elapsed. The maritime workers also accused CNL and its marine contractors of continuing to thwart and suppressed all efforts by the MWUN to unionise workers providing maritime support to CNL. They added that workers representatives need free access to the workers, stressing that denying this was a violation of the union’s right to freely carry out union activities.

    “This act of aggression against the union also threatens stability, harmony and productivity in the maritime sector,” the statement reads. According to the statement, “Since CNL and its marine contractors have neglected, failed and deliberately refused to recognise the right of workers to associate and bargain collectively, the union is now poised to carry out a peaceful picketing exercise in line with Section 43(1) of the Trade Unions Act 2005 (as amended).

    “The picketing exercise is intended to ensure compliance to the rules and  tenets of employment of Nigerian Seafarers in line with both domestic and international laws, and will commence on Monday, February 4 to Friday, February  8, 2019 at the following locations: 1. Chevron Dockyard, Escravos; 2. Chevron Dockyard, Warri;3. Awaritse Dockyard, Koko; and 4. Awaritse Corporate Office, Sapele”, the statement said. The maritime workers stated that all government security agencies have been duly notified of the picketing exercise, alleging that Chevron and the management of ANL have both threatened to use the security agents attached to their operations against the MWUN should the union go ahead with the picketing exercise.  OVER

  • NNPC/Chevron JV donates to IDPs in Delta, Bayelsa

    The Nigeria National Petroleum Corporation (NNPC)/Chevron Nigeria Limited Joint Venture has donated mattresses, food items, toiletries and other materials to assist flood victims in Warri Southwest, Warri North, Delta State and Igbogene in Yenagoa Local Government Area of Bayelsa State. The gesture, according to the joint venture, is another significant contribution to the wellbeing of people in Nigeria.

    At  Warri Southwest, Secretary to the Local Government, Mrs. Gabari Gladys Omare, and the state Emergency Management Authority (SEMA) representative, Mrs. Attu Evelyn, received the items on behalf of  the council Chairman, Hon Tuoyo Duke Taiye, while in Warri North, Secretary to the Local Government, Mr. Victor German with the support of Head of Department, Engineering, Jerry Atigan, received the items on behalf of the council chairman, Mr. Aduge Okorodudu. At Igbogene, the items were received by  Angus Didei on behalf of Bayelsa State Emergency Relief Committee.

    Explaining the reason for the donations, General Manager, Policy, Government and Public Affairs (PGPA), Esimaje Brikinn,  represented by Tony Emegere, PGPA superintendent, said: “This donation is in line with the NNPC/Chevron Joint Venture’s commitment and our tradition of care for the welfare of people around our areas of operation in Nigeria and beyond.  As we donate these items today, I hope they will assist in meeting the needs of the people,” he said.

  • ‘Chevron an equal opportunities employer’

    Chevron Nigeria Limited (CNL), operator of the Nigerian National Petroleum Corporation /CNL Joint Venture, is an equal opportunities employer and does not undertake employment decisions on the basis of race, gender, religion, colour, age, ethnicity and disability, among others, the General Manager, Policy, Government & Public Affairs, Mr. EsimajeBrikinn, has said.

    Brikinn, who spoke against the backdrop of the protest by candidates of Vocational Training Programme 5 (VTP5) in Lagos, said employment into the company is dependent on organisational requirements and business needs.

    The VTP 5 group said Chevron told them at inception they were being mobilised for operators and technician roles in the company. ‘’We were informed that four sets had been mobilised before us and employed. VTP 1 to 4 have been employed, ours shouldn’t be different, they added..

    ‘’We were told that we were being mobilised for operators and technician roles in the company. We were informed that four sets had been mobilised before us and employed. We came in under the Vocal Training Programme (VTP)

    Brikinn, however, said: “CNL’s sponsorship of the Vocational Training Programme (VTP) was a corporate social responsibility initiative intended to help build the skills and capacity of the VTP trainees from the local communities in various areas of oil and gas operations.Trainees spend a portion of their time in this programme attached to a CNL facility.

    “The technical skills that the VTP trainees are equipped with are transferrable and, therefore, the trainees are capable of contributing to the oil and gas industry and various other sectors of the Nigerian economy.

    “Several of the VTP trainees have been able to get employment within the oil and gas industry. The VTP was never and is still not intended to serve as a pathway to employment in CNL for the VTP trainees. CNL never made any commitment in this regard to the VTP trainees.

    “CNL will continue to encourage qualified persons to apply to the company for employment, whenever there are vacancies,” he said.

     

  • ‘Chevron an equal opportunities employer’

    Chevron Nigeria Limited (CNL), operator of the Nigerian National Petroleum Corporation /CNL Joint Venture, is an equal opportunities employer and does not undertake employment decisions on the basis of race, gender, religion, colour, age, ethnicity and disability, the General Manager, Policy, Government and Public Affairs,   Esimaje Brikinn, has said.

    Brikinn who spoke against the backdrop of the protest by candidates of Vocational Training Programme5 (VTP5) in Lagos, said employment into the company is dependent on organisational requirements and business needs.

    The VTP 5 group said Chevron told them at inception they were being mobilised for operators and technician roles in the company. We were informed that four sets have been mobilised before us and employed. VTP 1 – 4 have been employed, ours shouldn’t be different, they added.

    “We were told that we were being mobilised for operators and technician roles in the company. We were informed that four sets had been mobilised before us and employed. We came in under the Vocal Training Programme (VTP 5).

    Brikinn, however, said: “CNL’s sponsorship of the Vocational Training Programme (VTP) was a Corporate Social Responsibility initiative intended to help build the skills and capacity of the VTP trainees from the local communities in various areas of oil and gas operations. Trainees spend a portion of their time in this programme attached to a CNL facility.

    “The technical skills that the VTP trainees are equipped with, are transferrable and, therefore, the trainees are capable of contributing to the oil and gas industry and various other sectors of the Nigerian economy.

    “Several of the VTP trainees have been able to get employment within the oil and gas industry. The VTP was never and is still not intended to serve as a pathway to employment in CNL for the VTP trainees. CNL never made any commitment in this regard to the VTP trainees.

    “CNL will continue to encourage qualified persons to apply to the company for employment, whenever there are vacancies,” he said.

     

  • Chevron spends N20.6b in Delta

    CHEVRON Nigeria Limited (CNL) invested N20.6 billion in development ventures in its host communities in Niger Delta between 2005 and 2018.

    The programme was designed in partnership with Delta State’s Jewels of Africa Foundation and Foundation for Partnership Initiatives in Niger Delta (PIND).

    The General Manager, CNL’s Policy, Government, and Public Affairs, Mr Esimaje Brikinn, who spoke at the weekend at the closing of a two-week training for teachers from selected schools in Delta, noted that the programme was part of the company’s efforts to reach out to the people.

    According to Brikinn, who was represented by the Area Manager, PGPA Field Operations, Mr Sam Daibo, the money was invested on its Global Memorandum of Understanding (GMoU) with host communities, covering projects as scholarship, schools, medical facilities, housing, agriculture and infrastructure improvement.

    “Between 2007 and 2016 over 2,900 students have benefited from the NNPC/CNL JV National Guard Scholarship, while Star Deep, a Chevron company and its partners in Agbami field have awarded over 16,000 scholarship to engineers and medical professionals since 2009.

    “Similarly, over 11,300 students have benefited from NNPC/CNL JV’s community scholarship from 2008/2009 to 2017/2018 academic session.

    “We thank Jewels of Africa Foundation (Africa chapter) under the leadership of Lara Gureje-Odernde, president, Jewels of Africa Foundation Inc. for initiating this programme.

    “In addition, there are several projects by the NNPC/CNL JV and other Chevron companies in Nigeria, which are either ongoing or have been completed across Delta State”, Brikinn said.