The Nation Newspaper

Tag: DPR

  • Stakeholders seek coordinated regulation

    Stakeholders have called for coordination in the regulation of practices in the oil and gas industry so as to engender the needed growth.

    They made the call at the PSRG-Richardson Health, Safety, Security and Environment (HSSE) forum held in Lagos.

    The forum noted that the establishment of various regulatory agencies who are working at cross-purposes was not in the best interest of the industry.

    It therefore suggested that the Department of Petroleum Resources (DPR) be adequately equipped and empowered to effectively perform its regulatory functions in the oil and gas sector.

    The forum also recommended that a division of the Nigeria Police Force, which is to be dedicated completely to the oil and gas industry should be created and well equipped to enhance security of operations, installations and assets.

    In his presentation entitled: “HSSE: Confronting the Challenges in the Nigerian Oil and Gas Environment,” Emiy Ikuru, Managing Director of Foisi Global Investment Ltd urged the development of a measurable and sustainable HSSE management system in the oil and gas industry. He called for the implementation of a security policy that meets the challenges of increasing crime and effective response strategies to emergencies that threaten the safety of staff, assets and the general public.

    Also speaking on the “Challenges of protecting oil and gas industry assets: An operator’s perspective,” Capt. Albert Oti (rtd) said an effective approach to pipeline protection would involve local communities in guarding the pipelines. It will also require the deployment of technology such as sensors, which are globally used to monitor pipelines.

    On the types of security breaches and threats prevalent in the Nigerian oil and gas industry, he listed them to include facility vandalisation, armed attacks on personnel and installations, kidnapping and hostage taking and the disruption of operations. Others are community protest action, crude oil theft and illegal bunkering, cyber crime and electronic infractions.

    To address these challenges, Oti urged operators to develop an effective oil and gas infrastructure protection strategy and acquire risk assessment and warning capabilities. He said there is the need for an integration of information sharing and control in the security of oil and gas infrastructure between operators and relevant security agencie.

    Head of HSE at the Department of Petroleum Resources (DPR), Dorothy Bassey,who was represented by Ijeoma Onyeri, spoke on approaches to sustainability in her paper entitled: “Developing a winning formula for sustainability in the oil and gas industry.

    She listed innovation, transparency, taking responsibility and maintaining standards as some of the key elements required to develop a winning and sustainable business in the oil and gas industry.

  • DPR moves to transform operation

    DPR moves to transform operation

    •Shell, Chevron, Total, Dubri licences for renewal

    The Department of Petroleum Resources (DPR) has begun the deployment of equipment and strategies that will enhance its operation and make it compete effectively with other oil industry regulators in the world.

    The Director, DPR, Mr Osten Olorunsola, said the Department is deploying new approaches and equipment to ease and standardise its operation.

    These include the introduction of gas network code, deployment of remote systems, offshore personal accountability system, trucking policy, and marine locator device.

    The new introductions are part of the Olorunsola’s transformation plan to move the Department to the next level. He said the new ideas and applications have become imperative because the DPR personnel would not be everywhere at the same time to monitor activities.

    He also said the regulator is focusing on renewal of expired licences of shallow offshore assets of some oil companies having done that of ExxonMobil early in the year.

    He said: “One of the core things we are looking at this year was to renew expired licenses, especially in the shallow offshore. We have concluded for ExxonMobil early in the year. We are doing the same for Shell Petroleum Development (SPDC), Chevron, Total as well as Dubri.

    “Gas is becoming a very exciting place both in terms of development and for revenue generation. We are actively working toward what we call – a gas network code – which is purely a protocol that will regulate how the players as well as the molecules interplay within the pipelines. We will also regulate that, and we are just trying to conclude the code tighter with the Nigerian National Petroleum Corporation (NNPC) and the industry.

    “We are increasingly investing in real time monitoring systems because we cannot be everywhere. Facilities are around the whole country and rather than just keep them or keep people there on permanent basis, which is also not the right thing to do, we are investing quite a lot in remote systems where we can actually monitor them right from the office.

    “We have been able to install in five locations along the area to monitor the Escravos-Lagos Pipeline System as far as gas production and transmission is concerned. We have commenced implementation of the offshore personal accountability system, which is a device to make sure we have firm control on all personnel that go offshore. Without data there is no way you can own regulator control. This is our first attempt and it is a global best practice to make sure we have the right equipment and protocol – managing all those who go for offshore activities. We will also introduce the marine locator device – specialised equipment that I can call a departure from manual safety jacket to intelligent jacket because if anything happens, it would be save you.

    “For instance, recently there was a helicopter that dished in the North Sea and the 19 people on board of the craft that were coming from a rig were all saved and it was because of the intelligent jacket they all had. It not just nice to have it, it is the way to go.”

    Olorunsola also said the Department is progressing in the implementation of the trucking policy following a successful pilot last year. He said expressed excitement over the drop in flared gas..

    He said gas flaring as at end of September dropped to 1.4 billion cubic feet per day, which is 18 per cent of total gas produced as against 25 per cent by end of last year. This is a reduction of about 5.7 per cent from volume flared last year. He said gas utilisation has risen in excess of 80 per cent of total production.

  • Nigeria lost 500,000 bpd oil output to floods – DPR

    Nigeria lost 500,000 bpd oil output to floods – DPR

    Nigeria lost around 500,000 barrels per day (bpd) of oil production due to severe flooding in recent weeks but output is now back to normal, an oil industry regulator told Reuters on Wednesday.

    Nigeria’s oil is exported to the United States, Asia and Europe and supply disruptions can affect world prices because it is priced against the Brent oil benchmark.

    The country has experienced its worst flooding in five decades this year. The Niger River burst its banks last month, submerging stretches of the swampy oil-rich region in flood waters.

    “It was as a result of the recent flooding. Around 500,000 bpd was shut down for a two to three week period but things are back to normal now,” a spokesman for the Department of Petroleum Resources said by phone.

    Shell said its Nigerian venture had declared force majeure on exports of the Bonny and Forcados crudes on Friday, citing damage caused by thieves and flooding affecting a third-party supplier it did not identify.

    Bonny Light and Forcados are two of Nigeria’s most important oil grades and in October accounted for 427,000 bpd, about a fifth of the country’s total exports of 2.048 million bpd.

    On September 30, Shell said its Nigerian unit closed the Bonny pipeline which sends crude to the Bonny terminal and stopped 150,000 bpd of production after oil thieves caused a fire.

    Separately, French oil company Total on Tuesday told Reuters it had stopped oil and gas production from its onshore OML 58 block due to flooding.

    The block, in which Total has a 40 percent stake, normally produces the equivalent of 90,000 bpd of oil.

     

  • DPR seals depots in Apapa

    The Department of Petroleum Resources (DPR) has sealed petroleum products depots in Apapa, Lagos for various offences.

    In a statement by the DPR, Deputy Director, Public Affairs, Mrs Belema Osibodu, the agency said sequel to its recent Annual General Meeting (AGM) held with depot operators and marketers, during which the Department warned that appropriate sanctions would be meted out to enforce compliance, for violations, including the sale of petrol (PMS) above approved prices, it has started action

    “We have commenced the sealing of identified depots. The PMS delivery arms of the under listed depots have been sealed indefinitely by the Department. They include MRS Oil and Gas Limited; Obat Petroleum Limited and Ascon Nigeria Limited.

    “This action was based on credible information received on the depots, which confirmed that they were selling PMS above approved prices.

    “We hereby state that this sanitization exercise by the Department is a continuous one in addition to the ongoing petrol station surveillance nationwide, to ensure compliance with approved prices of PMS.”

    At the AGM, the DPR also warned oil marketers on the construction of filling stations without its approval.

    The DPR decried the rising issue of marketers building new filling stations without seeking the statutory approval from the regulator. “The past year witnessed an upsurge in the number of marketers who began construction of filling stations with an “Approval to Construct,” and then later applied for a waiver from the Department. This is an outright violation of the laws governing the construction of filling stations, and an appropriate penalty will soon be in place for this,” the Department said.

    The agency drew the attention of the marketers to strict compliance with oil and gas industry standards as practised worldwide. On ensuring further application of global standards in local operations, it said the plans are at advanced stages for the implementation of the Trucking Policy, which is envisaged to enhance tanker trucks usage, institute orderliness in trucking activities at the depots, minimise pipeline vandalism, check diversion, theft and adulteration of petroleum products, and enhance road users’ safety, amongst others.

  • DPR commends Gulf Treasures for products delivery

    DPR commends Gulf Treasures for products delivery

    The Department of Petroleum Resources (DPR) has commended Gulf Treasures Limited, an indigenous oil and gas services company, for the delivery of quality products and services to consumers of petroleum products across the country including the Federal Capital Territory (FCT).

    The DPR made the commendations when the Managing Director of Gulf Treasures, Dekeri Anemero was conferred with the award of distinguished ambassador of the Faculty of Law of the Ambrose Ali University (AAU), Ekpoma in Edo State by the law students association.

    Speaking on the occasion, which held in Lagos, the Chief Technical Officer of the DPR, Enilama Victor, said the company as a player in the downstream sector of the oil gas industry, had maintained quality services to its consumers. “As a regulator, we don’t see people on the side, we see people on the quality and we see quality in the management services,” he added.

    Gulf Treasures, he said, was a registered oil and gas company in Nigeria, which specialises in oil and gas exploration, trading, shipping services, logistics and manufacturing. It also engages in the importation of petroleum products including dual purpose kerosene (DPK), automotive gas oil (AGO), premium motor spirit (PMS) and liquefied petroleum gas (LPG).

    He said the company has an average turnover of 60,000 metric tons with over 50 trucks for prompt delivery to numerous customers. It also has a loading terminal located at Ibafon, Apapa with a total capacity of 45,000 metric tons and its retail outlets nationwide is known as Danco Petroleum.

    Enilama said the company was one of the major independent petroleum marketers that had maintained quality of product that had served the interest of the people so well for many years

    He said the company had petrol stations spread across the country, especially in the western part of the country, which according him, helps to ensure prompt delivery of the product to consumers and urged other operators to maintain good industry practices.

    Anemero said the award had only challenged him to further impact positively on the lives of the people, including management and staff of the company. While expressing hope for the growth of the oil and gas industry, he appealed to Nigerians to be patient with the ongoing reforms in the industry, saying the benefits in the oil and gas were yet to be tapped.

    He has also urged the youths to shun any act of unrest and vandalism and reassured the management’s commitment to creating more job opportunities for the teaming youths

    The Director of Administration, Ibru Group, Henry Muogho, said Anemero was a silent achiever and committed to adding value to the society, adding that the award was a reward for hard work, determination, honesty and discipline of character.

    The President, Faculty of Law of the university, Monday Mawah, said Anemero had contributed immensely to the faculty and Edo State.

  • DPR warns marketers on illegal construction of filling stations

    DPR warns marketers on illegal construction of filling stations

    The Department of Petroleum Resources (DPR) has warned oil marketers on the construction of filling stations without its approval.

    The DPR Director, Osten Olurunsola gave this warning at the 2012 major and independent marketers meeting held in Lagos. He decried the rising issue of marketers building new filling stations without seeking the statutory approval from the regulator.

    Olorunsola, who spoke through Mr Lanre Buraimoh, DPR’s Assistant Director, Product Depot and Jetty, said: “The past year witnessed an upsurge in the number of marketers who began construction of filling stations with an ‘Approval to Construct,’ and then later applied for a waiver from the Department. This is an outright violation of the laws governing the construction of filling stations, and an appropriate penalty will soon be in place for this.”

    He told the marketers that the construction of filling stations and fabrication of underground tanks should be undertaken only by DPR accredited consultant. Likewise all oil and gas equipment suppliers must be accredited by DPR, he added.

    He drew the attention of the marketers to strict compliance with oil and gas industry standards as practised worldwide.

    On ensuring further application of global standards in local operations, Olorunsola said the Department is in advanced stages for the implementation of the Trucking Policy, which is envisaged to enhance tanker trucks usage and institute orderliness in trucking activities at the depots. The policy will also minimise pipeline vandalism, check diversion, theft and adulteration of petroleum products, and enhance road users’ safety, amongst others.

    On the current fuel scarcity, the DPR chief said that fuel distribution has remained stable until recently when reduction in supply has been noticed probably as a result of outstanding subsidy payments to the marketers and vandalism of distribution facilities as witnessed recently at Arepo. He said that the government is making concerted effort to ensure the availability of petroleum products.

    He also appealed to the marketers to step up product supply, especially as the festive periods approach. “We are approaching the end of year with the expected usual surge in social and festive activities. The attendant elevated quest for consumption of petroleum products cannot be over-emphasised. We wish to encourage marketers to ensure product availability to the public at this critical period. Marketers are strongly advised not to engage in acts that may lead to creation of products scarcity, and other associated ills such as hoarding and product diversion for profiteering, he said.

    DPR Operations Controller Mr Gbenga Koku corroborated Olorunsola, urging the marketers to conduct their operations within the provisions of petroleum laws and regulations, adding that a lot of challenges still lie ahead towards transforming and repositioning the downstream sector for sustainable economic development.

    He said: “We will continue to monitor licensed outlets, and hand over the illegal operators to the police. We will not licence retail outlets constructed without recourse to petroleum regulations.”