Tag: fields

  • More marginal fields set to hit first oil

    It is cheery news that three more marginal fields will hit first oil soon. Century Energy Exploration and Production (E&P) is on course to bring the Atala Marginal Field on stream, while Excel E&P has formally started to inject about 800 barrels of crude oil per day from Eremor field into the Trans Forcados pipeline and sources at Millenium Oil and Gas said it has less than two months to complete all the remaining hook up and commissioning facilities for the startup of the Oza field.

    According to Africa oil+gas Report, the licences for these fields were part of those awarded by the Federal Government in 2003. It said the Atala field is actually held by the Bayelsa Oil and Gas Company, one of the three state companies that won an asset in the 2003 marginal field bid round. Century is only a technical and financing partner, but its economic interest is higher than 50 per cent, it added. The field development project is funded by Eunisell Solutions, a service company which will realise its investment from proceeds of the crude output.

    “What remains are minor permitting issues and installation of sales line metres for evacuation purposes,” said sources close to the Atala field production procedures. Africa oil+gas Report also stated that 2,000 barrels of oil per day (bopd) from two reservoirs will be delivered into barges and ferried into a floating storage and offloading vessel (FSO) for export. The offftaker is Monaco, it said, adding that part of the cash flow from Atala-1 production is expected to fund the drilling of Atala-2.

    “Millenium’s partners on Oza field are Hardy Oil and Emerald Resources. The field’s Early Production Facility (EPF) and tie-in at Shell Petroleum Development Company (SPDC’s) Isimiri flowstation, pipe laying of 27.5km of 3inches inter well flowlines and 3inches and 6inches test and crude delivery pipelines from the Oza manifold to Isimiri flow station are all done. Well test on Oza-2 short and long strings gave results suggesting productions of as high as 1,500bopd to 10,000 bopd. Oza field’s production is the least certain of the three, it added.

  • Rivers killing fields

    Rivers killing fields

    • Residents on edge as vicious cult gangs seize state

    It was a danger waiting to happen. Those who expected the violence that characterised the 2015 general elections in Rivers State to abate were proved wrong soon after the election, with the violence exacerbating every day, as different cult groups remained locked in supremacy battles.

    Last Saturday, yet-to-be identified gunmen murdered Franklin Obi, an APC chieftain, his wife, and 18-year-old son in their residence in Omoku, Ogba-Egbema-Ndoni Local Government Area of Rivers State.

    The gunmen invaded the house at about 9pm, beheaded the lawmaker, who was the chairman of ward 4 in Omoku.

    While the state was still mourning the killing, another member of the APC, Ofinijite Amachree, was burnt alive in Buguma, Asari-Toru Local Government of the state midweek.

    Amachree was beaten up and burnt. Five persons were clubbed to death between last Saturday and Sunday.

    Before the latest killings, vicious cult gangs in the state had consistently attacked communities in Ogba/Egbema Ndoni, Abua/Odoni and Ahoada East, Ahoada West and several other local government areas of the state.

    During a recent attack in Ogba/Egbema Ndoni, Abua/Odoni and Ahoada East, Ahoada West local government areas, about 25 people were allegedly killed during the violence, with some of the victims beheaded. The governor of the state, Nyesom Wike, acted swiftly by suspending the three council caretaker committee chairmen whose local government areas were affected by the violence. Their suspension was lifted after one week.

    Despite the suspension order, many residents of the state have described it as a little drop of water in the ocean. According to them, suspending the council leaders without a corresponding strong security policy to checkmate the activities of cult members and their sponsors in the state would be meaningless.

    The upsurge in the activities of cult members in the state started shortly after the take-off of civil rule in 1999. Back then, residents of the state lived in fear. For them, the fear of a cult member was the beginning of wisdom.

    Business activities ended in most parts of the state by 5:30pm, as the people struggled to get to their various homes before darkness falls. By 6pm, the streets are deserted, and whoever dared the cult groups did so at the expense of his or her life.

    During the period, cult members assumed more powers, with greater authorities than even the monarchs, who themselves were left at their mercy. And for most residents, it was no longer strange to wake up in the morning and see headless bodies on the street. And sometimes, the cult members go from house to house in broad daylight to dispossess the people of their belongings, and those who resisted them were killed or maimed.

    But the tide changed with the entrance of Governor Chibuike Amaechi in 2003. He went to work by putting a task force that not only curtailed the activities of the cult groups but also made their activities unattractive to young men.

    Part of the brief of the task force was to arrest and hand over any suspected cult member to the police for prosecution. And within a short period, normalcy returned to the capital city, as the members of the cult groups fled to seek refuge in the neighouring communities.

    Soon after, some of self-confessed cult members came out and denounced their membership of the various groups. One of them, Kennedy Johnson, better known as Coffin, said: “When Governor Amaechi came on board, he did not only declare war against the cult groups, he also ensured that their activities discontinued,” noting that so many cultists at that period were killed, while some repented and others ran away from town to their various communities.

    He continued: “I thank God that today,  I’m  no longer in the system, though I had a close shave with death before I surrendered. Before Amaechi became the governor of Rivers State, cultists were being pampered, we had a lot of prominent individuals with interest in our activities. Then, only two groups, Degban and Dewell, were operating. We didn’t kill innocent people and we punished our members who go against the law or who work against us. But at a point, our activities and the fact that the people were afraid of us, made us attractive to some of the politicians in the state. That was how cult groups became involved in politics and we were provided all the necessary instruments to deliver clean deal.  And when the job is done, the man won’t be able to retrieve all the arms he had supplied us.”

    He disclosed that cult activities became lucrative as a result of the sophisticated weapons at their disposal. “It is simple logic, you don’t give a man the kind of weapon in the hands of cultists today and expect that he will not go mad when he knows that some of the security men  don’t have such weapons. It was from here that they became interested in kidnapping, armed robbery, attacks on oil pipelines and other illicit activities.

    “And, no amount of war against the cultists can stop them, because they have tasted money. Do you know how much they make during election periods? Do you know how much they make from kidnapping?  Some are working as private security officers to some of the top business men and politicians in the state. Some of the mansions you are seeing in Port Harcourt today are owned by kidnappers who are also members of cult groups.”

    Investigations by The Nation also revealed that when Port Harcourt city became too hot for cult activities during Amaechi’s administration. So, many of the cult members moved down to the villages where they became lord of the local politics and decided who became the monarchs and chiefs in the communities. A study of the activities of the cult groups in few local government areas showed how cult groups have terrorized and destroyed many communities in the state.

     

    Ikwerre LGA

    Ikwerre Local Government Area, which has the ancient city of Isiokpo as its headquarter, is made up of 14 communities. Among these communities, about nine have been colonized by cult groups. Many  young men have been killed, while others remain missing as a result of a supremacy battle among them. The cult groups that terrorise Ikwerre are Degban and Islander.

    Amadi Gift, one of the youth leaders in the area, told The Nation that Ubima community was turned to a ghost town on October 28, 2005, when cult groups turned the community into a battle ground. “Ubima people will never forget in a hurry how cult activities started in the area. On October 28, 2005, our people relocated to the neigbouring community over a cult clash.  The supremacy battle started with serious shooting in the morning, and they came back in the night when some members of the rival groups were still sleeping with their families. They descended on them and set their houses on fire.

    “The next night, the other group whose houses were set on fire, retaliated and demolished over 30 houses belonging to their rivals. Many members of the community were rendered homeless because some of the houses destroyed were family houses. Till today, some families have not been able to rebuild their houses. That was how the crisis started. And, till today, the community has recorded more killings due to cult clashes.”

    An Ikwerre man, who pleaded anonymity for security reasons,  said after the killing that took place in 2005 and 2007 in Ubima community, the cultists were able to maintain peace in the various communities of the local government. He said the cultists resurfaced again four years ago with sophisticated weapons when politicians in the area began to see them as a means to achieve their political goal.

    “For the past four years, when the cultists resumed their activities in our various communities, more than 100 residents of Ikwerre have been murdered, while more than 50 are missing. Take a look at cult activities in Ubima community alone, it was reported that over 15 persons have been killed and seven missing. As I‘m talking to you now, the residents of the community are living in anxiety over incessant killings. The recent killing of one of the leaders of Degbam, popularly known as Juju, has become another problem to the people of the community. This was because the rival cult group in the area has vowed to avenge the death of Juju with 50 heads.

    “The two dreaded cult groups in this area are being protected by political parties. That is why the police find it difficult to arrest some of them. It was because of their alliance with the political parties and community leaders that made them to have access to sophisticated weapons. And with these weapons, they were able to diversify into kidnapping, robbery and other forms of crime. Of course, cultists are becoming stronger and fearless in the state today because some of their leaders are today public office holders.”

     

    Emohua LGA

    Emohua is a sister local government to Ikwerre, and the two have many things in common. They have almost the same tradition, with similar language and have one supreme council, called Ogbakor Ikwerre, the highest decision-making body in Ikwerre ethnic nationality. Some of the residents of the area, who spoke to The Nation, said Ikwerre Local Government is suffering from the activities of the cult groups. It will be recalled that the people of Ogbakiri were sacked from their community seven years ago by cult groups in the area. Properties were destroyed and human beings were slaughtered. The crisis kept them out of their communities for more than five years before returning home recently to rebuild their damaged homes.

    On January 18, 2016, Elibrada community in Emohua Clan woke up to discover that their community was on fire, following a clash between two rival cult groups in the area. The following day, members of the community went after the cult members, killing two of them.

    A community member, who pleaded anonymity, said: “It was a relief that the cultis were killed. The people of the area openly rolled out their drums, singing and dancing when the news broke that the terror cultist, popularly called, DD the White Lion, has been beheaded. In the third week of December 2015, a close friend  of DD the White Lion, who was also an alleged cultist, was killed and beheaded. DD the White Lion was the leader of one of the cult groups that have been terrorizing Emohua people.”

    Elder Ohiakwe Amaechi, a community leader in Emohua, said cult activities in the area have inflicted pains and agony on the residents. “What happened in Rumuekpe, Ibaa and Ogbakiri  should discourage people from patronising cultists. These three communities have more dreaded cultists than you can find in other parts of the state. The insecurity in Ibaa,  Ogbakiri  and Rumuekpe communities, which started seven years ago, degenerated to such a level that community members abandoned their homes and became refugees in another man’s land for years.  Ogbakiri, for instance, experienced a total breakdown of law and order that resulted in massacre and deadly chieftaincy tussle in the area.”

    It will be recalled that on the 3rd of February, 2014, some cultists suspected to be members of Islanders and Degbam fraternity, clashed at Ibaa community, killing nine persons, while properties worth several millions of naira were destroyed over territorial control. The fight led to the Joint Military task force taking over the community for more than one month, during which the residents were forced to relocate to neighbouring communities for safety.

    A brother of one of the killed victims in Ibaa, Anthony Davies, told The Nation that the situation in the community during the clash was akin to a war front.

    “My brother was among the nine people killed, though he was not a member of any cult group.  When we heard gunshots that early morning, he was frightened, and he stepped out to find out who were shooting. That was how one of them called him by name and shot him point blank. He bled for about 30 minutes before he gave up the ghost.”

     

    Ogba/Egbema/Ndoni LGA

    The incident of February 12, 2016 will linger for a long time in the memory of residents of Omuku, Ogba/Egbema/ Ndoni Local Government of Rivers State. On that day, cult members went on the rampage. And by the time the smoke from their guns cleared, several young men lay dead, with many of their heads cut off and taken away by the cult members.

    According to sources in the area, kidnappings and secret killings are the major business of young men. Abductors are said to collect between N40,000 and N200,000 as ransom from indigent parents whose kids are kidnapped.

    About 12 persons, including Chief Christopher Adube, the All Progressives Congress (APC) chieftain, and his family, were murdered in one day in the area.

    However, when our correspondent visited Onelga, it was observed that there are many companies operating in the area, putting a lie to the excuse by many that joblessness and idleness are responsible for the high rate of crime in the area. And recently, 25 people were reportedly killed in the area, with 10 of the victims’ heads cut off and taken away.

    Elder Benedict Ajie, who lost two sons, said, “The gunmen entered our compound by 9: 30 pm on that day and started shooting their guns. It was after we stopped hearing the sound of gunshots that we decided to come outside to check what happened. It was at that point that we discovered that two of my sons were dead. In our street alone, more than eight young men were killed.’’

    A community leader, Mr. John Awe, said: “They killed about 25 people. It was a battle between the two strongest cult groups in the area.  Despite the presence of security agents and several check points mounted on major junctions in the area, the killers operated freely without any fear.

    “For the past two years, cultists have taken over some villages in the area. You can see me sitting here, four of my cousins were among the victims and two were beheaded by the gunmen who took away their heads. In Omoku, we are living at the mercy of cult groups. You need to be here during the election period to see how these bad boys dined on the same table with politicians.”

     

    Etche LGA

    Etche Local Government Area has been reeling under the pains of cult activities. The area is said to be under the control of the dreaded cult group, Umuoma boys, which allegedly originated from Obibi near Ozuzu Etche. Ironically, Umuoma, when interpreted, means ‘good children’. But their activities are everything but good.

    On the 5th of January 2014, Obite community was attacked by gunmen, during which scores of the residents were left injured. The attack also left one Miss Chikodi Nwankwoala dead. Her remains were found under a tree in front of her house.

    According to Chief Linus Nwankwoala, one of the elders who consulted the oracle to find out what killed her, “My sister was not sick when she retired to bed, only for us to wake up in the morning and find out that the door to her room was forced open. This is not the first time they are killing people silently in this community. The insecurity in this area is unbearable.’’

    Soon after the attack on Obite, another community in the area, Akpokwu, suffered a similar fate, during which four people were killed and 20 houses burnt down.

    Speaking on the rate of insecurity in the area, a youth leader, who pleaded anonymity, said the activities of the Umuoma Boys and other killer groups in the area started as mere support groups for politicians in the area.

    According to him, “In every election year, the young men receive visitors from other local government areas whom they work for as hired assassins, election thugs and other illicit activities. The Umuoma Boys are very powerful and deadly. Etche has become a place where residents of Rivers State find it difficult to travel to due to insecurity. Though everybody knows Umuoma Boys are responsible for most of the kidnappings and robberies in this area, nobody has been able to do anything about it. The system of using hoodlums as thugs for political gains has made Etche unsafe, especially during election period.”

     

    Ahoada East/Ahoada West

    The situation in Ahoada, whether East or West, is almost out of hand. Armed youths have for long turned the area to a no-go for most residents. The Nation gathered that residents of the area now contribute money every month to pay the cult groups in order to stave off attacks and harassments.

    Investigation revealed that on Wednesday 20th, 2016, the entire Ubeta community in Ahoada West was thrown into chaos after cultists murdered two persons, one Prince Udoma and another man, said to be from Imo State. Properties were also destroyed during the attack.

    A community leader, who did not want his name in print, said: “Here, we are living at the mercy of cultists. Two weeks ago, the cultists struck again, abducting two indigenes in the process. The two people, Elder Augustine Esukpa Achakpo and Mrs. Fyne Henshaw Eligwe, were beaten severely and taken away by the cult members. The group abducted a third victim, one Elder Emmanuel Eketu, as they fled the scene. The three were later released after days of captivity, with ransom paid by their relatives..

    “Our women no longer go to farms for fear of being raped, molested or kidnapped. Our people are now dejected and hopeless. Some of the cultists are kidnappers and some are ready to kill at the slightest provocation. They are now initiating more youths into cultism on daily basis. They have also resorted to burning people’s homes. As I’m talking to you, the community is contributing the sum of N500,000 to give to cultists in the area, as directed by their leader. We are calling the state government to urgently draft security men to protect our lives and properties. We have held a security meeting with the Police authorities in Rivers State, during which the police demanded logistics support. So far, over 100 persons have been kidnapped and 65 houses burnt.”

    Mr. Samuel Ewo, a youth in the area, revealed that the cultists now operate in camps, from where they attack the members of the community. He said the cultists are now used as fighters in land disputes, chieftaincy tussles and hired assassins.

    Ewo said: “Recently, unknown gunmen invaded a secondary school in the area and abducted school children for ransom. What we are asking to know is who is giving these people those sophisticated weapons that even the police do not have? When some of them are arrested, some privileged individuals would secretly negotiate for their bail. You can imagine that a monarch’s house was demolished by cultists. What do you expect to happen to ordinary innocent citizens in this situation? Something must be done to make lives safe again in our various communities.”

    Speaking on the allegation that the police are afraid of the cult groups, the Rivers State Police Public Relations officer, A deputy Superintendent of Police (DSP), Muhammad Ahmad, said there is no way a trained police officer would be afraid of cultists.

    Ahmad said: “I believe it is not true for anybody to say the police are afraid of criminals in whatever name, be them cultists or armed robbers or kidnappers.  I can’t imagine the same police that over the last one year have recovered high caliber firearms, such as AK 47 rifles, to the tune of 112 and 12,472 assorted ammunition from criminals, arrested and charged to court 391 suspected cultists and fatally wounded many of them in shootouts, can be mischievously and unpatriotically termed as a being afraid of criminals. I can’t also imagine the same police that in some instances lost their precious lives during gun duels with criminals cannot be supported and commended. Instead, they are said to be afraid of criminals.

    “My advice is, let it be known that the security of every community starts with the members of the community. There is need for mutual synergy between security agencies and the community to overcome any security challenge. Parents should counsel their children to shun crimes, and should they not listen to them, nothing stops such parents from reporting them to the police. It’s only when they have this at the back of their mind that security matters are a collective responsibility and work in concert with security agencies that we can have a situation of less crime in our communities.”

  • ‘880,000bpd of crude coming from offshore fields’

    •IOCs may divest from 12 oil blocks

    The Energy Research group of Ecobank Development Corporation (EDC) has projected additional production of 880,000 barrels of oil per day from Nigeria’s offshore fields over the next three years.

    The Head, Energy Research, Ecobank Development Corporation, Dolapo Oni gave the hint when he spoke with The Nation. He said there are about 15 major offshore oil fields, which if effectively implemented, would add about 880, 000 barrels per day over the next three years.

    The 880,000bpd, he said, doesn’t include production from divested assets, fields that will be re-entered, and output from marginal field operators and other indigenous companies.

    Oni, however, said the move by oil companies into the deepwater region will come with more costs; therefore, the industry will require a higher amount of capital and could potentially see its financing needs rise by over 40 per cent due to the higher cost of assets development.

    He told The Nation in Lagos that the upstream segment required massive investment in various oil and gas infrastructure including pipelines, flow stations, modular refineries, NLNG Train 7 and the Brass LNG. Also, the Trans Saharan Gas Pipeline, which according to him would create another exit for the Nigerian gas to Europe, will be very significant for the country in the long term.

    He said the country has about 5,000 kilometres of gas pipeline that needed to be funded adding that most of the new pipelines will be channeled towards liquefied natural gas (LNG). “The other major pipeline we have is the Escravos that will take gas from the Niger Delta to Lagos. It needs some major investment and this will manifest within the next two years,” he said.

    According to Oni, there is an indication that the International Oil Companies (IOCs) will divest at least 12 more oil blocks before the end of 2019. He said the divestment will come from onshore blocks that are in troubled areas and assets that lie close to some independents.

    Asset divestment by the IOCs, he said, will continue as there are still many oil blocks in troubled areas, adding that indigenous companies will have to play the exploration game at some point. “At the moment, indigenous companies only buy fields that already have certified reserves, and into production,” but indigenous firms have to play the exploration game,” he added.

    He said there are about 33 operational rigs, both onshore and offshore, that would bring massive change in the industry as the country starts to move into the deepwater, adding that there is need to get semi-salt terrains into the industry.

    On financing, Oni said Nigerian banks have increased their share of lending to the oil sector in line with growth in their tier 1 capital. He said though some banks are now able to provide up to $500 million to oil and gas transactions, but it is still small amount compared to the size of funding structures required in the industry. “Nigerian oil and gas companies urgently need equity. The dependence on debt is unsustainable. Debts can be used at any stage with companies that have very stable high volume production, but often through a borrowing base structure,” he added

     

  • Niger Delta Exploration plans $450m stock sale for fields

    Niger Delta Exploration plans $450m stock sale for fields

    Niger Delta Exploration & Production Plc plans to raise $450 million to acquire and develop crude fields in the country.

    The Lagos based firm is planning a “public offer, or special placement of shares. The first tranche of $200 million will be raised before the end of 2014,” Chief Executive Officer, Layi Fatona told Bloomberg.

    Smaller Nigerian oil producers are expanding operations as international companies, including Royal Dutch Shell Plc and Chevron Corporation scale back operations amid unrest, violence and crude theft in the Niger River Delta.

    Exxon Mobil Corporation, Shell, Chevron, Total and Eni SpA, pump about 90 per cent of Nigeria’s oil through ventures with state-owned Nigerian National Petroleum Corporation.

    FBN Capital Plc and Chapel Hill Denham, have been appointed financial advisers for the fundraising, which will happen on local or international markets, Fatona said.

    He didn’t say when the rest of the cash will be sought, but said NDEP also plans to expand in South Sudan and Zambia.

  • Licensees to lose idle oil fields

    Licensees to lose idle oil fields

    For failing to develop the marginal fields allocated to them since 2003, the beneficiaries may forfeit such assets next year.

    The Director, Department of Petroleum Resources (DPR), Osten Olorunsola, told The Nation that the marginal fields awarded in the 2003 bid round but left undeveloped till date will be withdrawn by the Federal Government.

    “Marginal fields’ awards of 2003 will expire sometime next year. If the beneficiaries are not actively working on them, we will take them back. That is what the guideline says,” Olorunsola said.

    As part of measures to develop indigenous capacity in the exploration and production segment of the oil and gas industry, the government introduced the marginal fields programme. Marginal fields are those assets considered to be commercially unviable by the oil majors because of their small production level, which in usually between 1,000 and 5,000 barrels per day and with reserves of not more than 10 million barrels.

    In February 2003, the government awarded 24 of such marginal fields to indigenous firms. The belief was that such companies would re-enter at least one of the wells in no distant time from the period of award. But 10 years after, only seven out of the licensees have been able to produce from those fields.

    The DPR chief gave several reasons for the inability of most of the licensees to bring their assets on stream.

    He said: “If you look at the marginal field players, they all had problems, which include litigations and funding issues among others.

    But now, they are all maturing and are all doing well.

    “But for Nigerians that have oil blocks, especially in the frontier areas, they have also tried because they have to go through exploration, appraisal, development and then production. Many of them are still going through those stages. It is not easy because from exploration to first oil, it could take 15-20 years. Many of them are still trying and hopefully, they will come on stream soon.”

    Olorunsola, also gave reasons behind government’s efforts to develop local capacity.

    He said Nigeria currently has 388 oil blocks out of which 173 have been awarded. The other 215 were yet to be awarded. Out of the 173 awarded blocks, 90 are held by indigenous firms, which contribute only six per cent to the nation’s production, amounting to 150,000 barrels per day, while the multinational oil companies hold 83 blocks, which contribute 94 percent to total output, Olorunsola said.

    Most of the marginal fields’ licensees have complained about their inability to secure financiers, or secure credit facilities from the banks.

    Although the fields are marginal oil producers, they require huge funds to develop them.

    For instance, the Chairman/CEO, WaltersmithPetroman Oil Limited,Abdulrazaq Isa, the operator of Ibigwe field, which is in oil mining lease (OML) 16, located in Ohaji-Egbema Local Government Area of Imo State, said it took his 10 years to achieve the 4000 barrels per day production.

    He said within the 10 years, the company was able to drill five wells, do one work-over campaign and build a 15,000-barrel per day flow station.

    He said in the course of the field’s development, they had a dry hole which cost an irrecoverable $27 million, adding that it was a big challenge for the firm to continue but for the determination and entrepreneurial spirit of the promoters.

    “Because we are a small company, such an amount was very significant. But for the big international oil companies (IOCs), drilling a dry hole is a normal thing that an oil company encounters while looking for oil. Ibigwe field was one of the marginal fields awarded in 2003, but the first oil was attained in March, 2008,” Isa, disclosed.