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Tag: Gas

  • ‘Gas revolution is inevitable in Nigeria’

    ‘Gas revolution is inevitable in Nigeria’

    Dada Thomas is founder and Chief Executive Officer of Frontier Oil Limited, operator of Uquo Marginal Field, the first marginal gas field in Nigeria with over 37 years of experience in the oil and gas industry. Thomas has managed a variety of increasingly complex engineering projects and general management roles in both Nigeria and Holland before setting up shop. In this interview with Ibrahim Apekhade Yusuf and Ambrose Nnaji, he speaks on the pros and cons of attaining a gas revolution in Nigeria. Excerpts: 

    Much has been said about Nigeria’s enormous gas reserves. Is this a fact or fiction?

    I believe that Nigeria should understand that gas revolution has started slowly but from now it will begin to gather momentum.  I think in the next 10-15 years, you will see a major improvement in the way gas is being harnessed and used in Nigeria to ensure that you can grow the Nigeria economy. It means improvement in the quality of life for Nigerians. For instance, if you turn gas into power, it means that the hair dresser can do her business properly; the welder can do his work properly. It means that the factories can produce goods, it means that people can be employed locally to generate wealth and that can only be well for the Nigerian nation. It means that when you finish your work, you can go to your house and turn the same power for you to cook, on your air conditioner, television set and relax before you go back to work the next day. It means a major improvement in the quality of life of every individual in the country.

    Your company won the contract for the first marginal gas field. What has happened after then?

    Yes, 24 marginal fields were awarded in 2003 and as today, eight or nine are in production. We became the 8th, when we commenced production in January 2014. I think the fact that we are successfully producing today is due to our belief in what we are doing; a belief in the Nigerian economy and system, and a belief that what was supposed to be an oil project turned out to be a gas project, but we did not run away – we did not abandon it, which is what most people have done in the past. We saw that there is a potential for gas to unleash the Nigerian economy if gas became a viable thing to do. We persevere; we took a chance and along the journey, gas pricing improved.

    In 2010, the Minister of Petroleum Resources and this current regime increased gas pricing from the $0.5 per thousand standard cubic feet to $1.5. So, that made our budget more hopeful but that was not enough. We persevered and we were able to sell gas on the willing-buyer-willing -seller agreement, first of all, with the Ibom Power Plant and then secondly, with Calabar National Integrated Power Project (NIPP). That allowed us to progress the project on the basis, which is not hugely profitable but, at least, can see some light at the end of the tunnel. I think that the fact that the Minister of Petroleum Resources has again announced an increase in price from $1.5 to $2.5 per thousand cubic feet – you guys should not keep on mixing the units. MSCF is a thousand standard cubic feet; MMCF is million.

    That success tells you the fact that yourself and our partners persevered in what we believed in. We managed to secure the gas contracts and our partners managed to raise the money because their job is to raise the money for this project; our job is to operate. The success of that dream and that perseverance paid off on August 14, 2014, when President Goodluck Jonathan himself came to formally inaugurate the Uquo Gas project and the gas plant. We are truly thankful to God that we have achieved something, which really nobody else in Nigeria has achieved; which is to successfully bring on stream the largest non-associated gas project in sub-Sahara Africa and, of course, Nigeria. We are proud of that. It is the first marginal gas field; every other marginal field has been oil. This is the first marginal gas field development; this is the first gas-to-power project by an indigenous group; this is the first development of a gas supply value chain in the south east Niger Delta – completely brand new. All those are the major firsts, which this project has recorded and we are very proud of that.

    I believe there is a future for gas in Nigeria. As for Frontier Oil, we have been in the forefront to develop gas for domestic use and we also want to develop oil as well. As an integrated oil and gas company, we believe in doing the work professionally with integrity because that is the only way to truly grow in the gas field in Nigeria.

    I can tell you that the other marginal fields’ operators that are not producing will know what will be their fate in 2015 when the government will decide whether or not to revoke their licences. My prayer is that the government will look at each case individually or on its own merit. By the end of March, we will know which marginal fields’ company retained what and which one has not lost their licences. I think they should increase their efforts to bring the fields into production. This has shown that marginal fields can contribute to the development of oil and gas industry in the country.

    Considering the onerous task of managing the kind of assets you have, how has Frontier Oil been able to cope thus far?

    Frontier was formed with a very clear vision. The vision was to build a Nigerian E & P company that would have the demonstrated capacity and ethical approach to developing an oil and gas business entity. So, we have always been very focused; we are not rent seekers; we did not form our company to be rent seekers. We formed our company to grow from a little income into a mighty oak. Frontier was formed by a group of like-minded people; I am the founding Chief Executive Officer. The Chairman is Chief Odoliyi Lolomari, who is a former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) in the 1980s and represented Nigeria at the Organisation of Petroleum Exporting Countries (OPEC). There are also ex-directors of Nigerian Agip Oil Company (NAOC) – professionals with considerable oil industry experience and non-oil industry experts to broaden the capability of the board. We have a diverse board but mostly oil industry experts and we formed Frontier Oil to grow from a little company to a regional company, making use of Nigerian expertise, knowhow, capability and, of course, you mix that with international knowhow because that is the nature of the oil and gas industry. That is our objective. We were formed in 2001 to participate in the first marginal field round and we won it in 2003 in the most competitive marginal field round. We came out on top and we are very proud of that. As I said before, we won it 100 per cent – some of the fields have two or three people joined together but only Frontier Oil won this field. As at today, we have a very broad-based shareholding. There are more than 30 shareholders in Frontier Oil and they are all Nigerians. We are 100 per cent owned and managed Nigerian company. We have grown from staff strength of only me in 2001 to over 130 Nigerians as at today. There is no single expatriate in Frontier Oil. The Uquo Gas Processing Facility was inaugurated and is being operated by 100 per cent Nigerian Frontier personnel. There is no single expatriate in Frontier Oil or in that plant. So, we are very proud that our vision of 2001 is still valid. What we want to do now is that having brought Uquo to life, we want to grow the business- we want to grow the company because our vision is to become a regional company that will be listed on the Nigerian Stock Exchange and possibly, either London or Toronto, or whichever other bourse suits our objective.

    The International Oil Companies (IOCs) are not keen in investing in domestic gas because they said that the price is not economic to justify the investment. How are you coping with the current price of $2.5?

    I think you have to look at the context of everybody. The IOCs are very different from indigenous companies. The reason that they exit marginal fields in the first place is that within the portfolios of the IOCs, those fields are not just economic to develop because their cost structure, their overheads, is just too large to make such fields profitable. In any business, you have to look at cost-benefits ratio. If the benefit is low compared to the cost, you will leave it. So, you don’t blame them based on their own criteria for not wanting to do certain things.

    Remember, they have one thing they call choice. They are sitting in The Hague or London or in New York on San Ramon or wherever it is with a $10 billion and they have the whole world to look at. If the cost per unit of operation is X there and 2X there and 3X in the other place, you will naturally go for X. So, the IOCs have the power of choice to make a decision because they have global reach.

    If Nigeria continues to make itself unattractive, we will continue to lose investments. Small players like ourselves – our cost structure and overheads – are completely different. That is why we can make marginal fields successful. That is why there are nine marginal fields producing today, from fields the IOCs would have never produce. But coming to gas – why are we able to make a success of it? We are not in the heaven yet with Uquo. The Managing Director of Total spoke in your paper recently, saying that they have spent $900 million to build gas pipeline from Oil Mining Lease (OML) 58 to supply Alaoji Power Station and that the current gas price will not make the project economic, despite the fact that they have done it and that to make sure that the project is economic, they need between $5 and $7 per thousand standard cubic feet of gas. I fully agree with her. The current increase from $1.5 to $2.5 per thousand standard cubic feet is very good but we are not yet near where we ought to be. We are still well below world market price. What it means for us is that it is encouraging that slowly, instead of digging ourselves into 50 feet grave, may be, we are in a 23 feet grave and with time, things will change that will allow our project to become totally economic.

    We need to get gas pricing domestically as attractive as may be, Henry Hub in the United States; I am not saying as in Korea because in Korea, that is the highest gas price paid in the entire world. Henry Hub is about $5, $6 or $7 right now in the United States and that is in spite of Shale gas. We need to get gas pricing moving in that region in Nigeria for you to have absolutely no reason to beg anybody to invest in gas. They will invest so much in gas; you will have so much gas that we won’t know what to do with it. This current price of $2.5 per thousand standard cubic feet is nice but is not going to have people screaming to invest in gas. There is another impediment, which is the infrastructure for distributing gas and transmitting gas. It is expensive to build pipelines and there is not enough gas grid to make it attractive for people to just be developing the infrastructure. The fiscal regime for gas in Nigeria is under threat as we sit here now. What do I mean by that? Here is an industry you want to grow and my simple-minded concept is that to grow an industry, you should incentivise it. Instead, in the proposed Petroleum Industry Bill (PIB), they propose to increase gas taxation from 30 per cent Company Income Tax (CITA) to 80 per cent. How does that incentivise an industry? So, you are going to nearly triple the tax and yet you think people and going to run and put their money in that. Secondly, royalty on gas is steep. Why do you want to put additional royalty on top of the proposed 80 per cent taxation? You have royalties on gas. Those policies do not seem sensible to me. To me, what I would expect is to incentivise people to bring their money and put it into gas, which is a long term investment. It is not like oil where people expect to make their returns in two years. Gas is a long term investment. Therefore, you need to incentivise people – either decrease or retain the current tax rate, which is 30 per cent; you need to make the royalty regime far less stringent. Relax it, okay. Thirdly, I think you should give people tax break on gas development. This is what any sensible nation that wants to incentivise a sector to grow by people bringing their money and putting it in that sector. I don’t think we should be increasing their taxation on gas. I don’t think we should have stringent royalty on gas. I think we should have tax holidays. Why shouldn’t we? Remember that when Liquefied Natural Gas (LNG) was being built, they got massive tax break; massive tax holidays. When Chevron was building, the Escravos project, which has just produced its first liquid, they were given massive tax break. Why is it now that indigenous operators like us, who are going to provide all your new gas in the next five years – ourselves, Niger Delta, Seplat – those are the new gas that will come on stream in this country, not from the IOCs. Why are we facing penalties rather than incentives? If you could incentivise IOCs for Bonny LNG; for Chevron’s Escravos, why are you not incentivising us, your home-grown players? It does not make sense to me. I will call upon the government to truly look at incentivising gas by reducing or retaining current tax; relaxing royalties; giving tax break and giving gas access to people like us, who have proven that we are not jokers and that we are real. Total came; Shell came – Shell used to own the entire country. When they come, they have may be, only one field but over the years, they have 20 or 30 fields.

  • DPR to implement gas transport code

    The Department of Petroleum Resources (DPR), yesterday in Lagos, said it will issue licenses to  shippers, agents, suppliers, and other operators whose roles are crucial to the implementation of the Nigerian Gas Transportation Network Code (NGTNC) soon.

    The code is a set of rules designed to guide the transportation  or movement of natural gas from producers  to users across the  value chain.

    Speaking at a stakeholders  forum  on the implementation of the Nigerian  Gas  Transportation  Network Code, the Director, DPR, George Osahon said  the code would stimulate gas investment, ensure transparency in the gas industry,  fair and non-discriminatory access to the gas industry, gas trading promotion among others.

    Osahon, who was represented at the event by the Deputy Director, Gas Monitoring and Regulation, Department of Petroleum Resources (DPR), Entigha Ekaluo said the forum was organized to seek the inputs of stakeholders in the value chain on the issue of transporting gas to domestic users such as power firms, fertilizers, petrochemical companies among others that use natural gas as a major component in their production.

    He said DPR will implement the codes in three phases, stressing that the agency would do manual implementation in 2015, transits to auto implementation in 2016 and embark on full auto implementation in 2017.

    Osahon explained that funding and infrastructure are the two problems that are going to hamper the implementation of the code.

  • More gas filling stations coming

    The Nigerian National Petroleum Corporation (NNPC) will provide more outlets that will sell Compressed Natural Gas (CNG) to users of cars that run on such gas, the Group Executive Director, Gas & Power, NNPC, Dr. David Ige, has said.

    At a stakeholders’forum in Lagos, Ige said the development became necessary to enable users get the product to fuel cars.

    He said a pilot scheme on the use of compressed natural gas for cars was initiated in Benin City, the Edo State capital by NNPC, adding that the scheme was a success.

    He said: “About Compressed Natural Gas for cars, let me give you a brief analysis of what NNPC has done.  The Corporation started a pilot project in Benin City and it was successful.  There are six gas filling stations in Benin City. There are over 4,000 cars running on natural gas in Benin. It is possible to drive a vehicle from Benin to Lagos on gas. NNPC would replicate this in other parts of the country soon. We would make sure that we make progress in that direction.”

    Ige said a new gas station was opened on the Lagos-Ibadan Expressway to enable people buy gas for their cars.  He said there was low awareness on compressed natural gas, promising that NNPC would do something on it. “It is quite unfortunate that many people do not know that there are cars that use natural gas in the country,” he added.

    He said the government is committed to the development of the nation’s gas industry, adding that more people  would  access  gas for their cars soon.

    According to him, efforts are being made to ensure that people use gas for socio-economic activities, noting that Nigeria has gas that is enough to met the growing needs of the populace.

     

  • Nigeria not benefitting from gas reserves

    Nigeria not benefitting from gas reserves

    Despite her enormous gas reserves this has not lifted the country’s economic fortunes as expected, experts have said.

    Experts who gave this damning verdict at a public forum, in Lagos, recently, stressed that if the nation’s gas reserves is well harnessed, this can help to improve the nation’s economic fortunes tremendously.

    The event was at the 12th annual Aret Adams Memorial Lecture series, with the theme: ‘Gas: An Engine of Growth for Nigeria.’

    In his remarks, the Managing Director/Chief Executive Officer, Frontier Oil Ltd,Mr. Dada Thomas, urged the federal government to strengthen its vast gas reserves to augment the losses being suffered as a result of the dwindling oil prices.

    He also urged government to pay more attention to gas production as it is one of the country’s major revenue generation sources, even as he regretted that Nigeria had not given the sector the necessary attention before now.

    According to him, “The country had not paid much attention to the production of gas before now. I implore Nigerians to understand that the gas revolution has started, even though it has been slow here. I think in the next 10 years or so, we will see a major improvement in the way gas is being harnessed and used in the country.

    “This will ensure that we grow our economy and improve the quality of life of Nigerians. It is good for the country to join the success story about production and utilisation of gas around the world, so that we won’t be left out.” Speaking further, Thomas also faulted the federal government over gas price fixing, saying the development is a disincentive to gas producers in the country.

    He suggested the need for the federal government to conduct special licensing round for the sector so as to create room for more gas investors to invest heavily and unleash the potential of the sector.

    “Considering the challenges besetting the gas sector, it will not be too much for the federal government to consider tax holidays for operators in the gas sector.”

    “The passage of the Petroleum Industry Bill into law would be an added advantage to the sector in the area of growth, investment and prospect,” while noting that the dwindling oil prices was caused mainly by the development and sustenance of the United States shale gas revolution.

    He also warned that the slated March 2015, set out by the Federal Government for the withdrawal of licences of non-performing marginal field operators still loomed.

    He said, “The Marginal Field Operators who are not producing will know their fate in March 2015, when the government will decide whether or not to revoke their licences. My prayer is that government should look at them critically before they take their decisions. By the end of March, we will know which marginal field is retained and the ones that lost their licences.”

    He added that, “My message is that those who manage to retain their licences should be effective in carrying out their businesses. I think my company and some others have shown that the marginal fields could produce maximally towards the development of the oil and gas industry in the country.”

    Speaking earlier, the Group Executive Director (Power and Gas) of the Nigerian National Petroleum Corporation, Mr. David Ige said the Nigerian National Petroleum Corporation (NNPC) has said it recorded over 50 attacks on pipelines within its pipeline network in the last two months.

    He said NNPC would continue to champion aggressive campaign to nip vandalism in the bud, with a view to realising the nation’s gas needs and potential in the country.

    According to him, “Nigeria has what it takes to use gas as an engine of economic growth.”

    He, however, urged Nigerians to exercise patience for the potential of the sector to come to fruition.

    He said the government was aggressively driving the gas sector, to boost local consumption through competitive pricing as well as export of the product.

    The GED said the current growth pattern of the gas sector, which has also witnessed a phenomenal reduction in gas flaring in the country, would also add significant value to the power sector.

    In his closing remarks, Dr. Dr. Jackson Gaius-Obaseki chairman of the occasion who was represented by Bassey Omiyi, former Managing Director/CEO, Shell Petroleum Development Company, lauded the speakers for the quality insights, even as he impressed on stakeholders in the oil and gas sector to step up efforts aimed at growing the fortunes of the sector.

  • 10 power plants may get gas by June, says NNPC chief

    10 power plants may get gas by June, says NNPC chief

    The 10 power plants built under the National Integrated Power Plant (NIPP) initiative  will be connected to gas pipelines either by June or the end of the year, Group Executive Director, Gas and Power, Nigerian National Petroleum Corporation (NNPC) Dr. David Ige has said.

    Speaking on the sidelines of the 12th Aret Adams Memorial Lecture in Lagos, at the weekend, Ige said the connection would enable the plants to access gas for improved electricity generation and distribution.

    Aret Adams was former Group Managing Director of NNPC.

    Ige said the plants would add 5,000 megawatts (Mw) of electricity to the national grid upon completion.

    The plants are Geregu 11 (334Mw); Calabar (630Mw); Egbema (378Mw); and Ihonvbor (504 MW). Others are Gbarain (252Mw); Sapele( 504Mw); Omoku (252Mw); Alaoji (1030Mw); Olorunsogo II (750Mw) and Omotosho ( 500Mw).

    He said: “Plans are underway to connect gas pipelines to the 10 power plants constructed by the Federal Government to ease electricity problems and further encourage economic growth. Gas is critical to the growth of the power sector and the government is working to ensure that enough gas is channelled to the power generation plants.”

    Ige also stated that the government has made arrangement to  provide gas to the privatised power generation plants formerly owned by the defunct Power Holding Company of Nigeria.

    He said there is enough gas waiting for Omoku power plant but noted that pipeline vandalism is a major problem in the industry even as the government plans to reduce or stop it.

    “A lot has been done to bring huge volumes of gas to the power plants. But each time, we try to breach the shortfall in gas supply; our efforts are frustrated by vandals who break the pipes at will. Since the beginning of this year, we have not had one week of respite. There have been consistent attacks of pipelines. When we have these attacks, the pipeline pressure drops immediately because of the off-take. If we shut down to repair the pipelines, it takes about 10 days to repair. Thereafter, you need some days to build up the pressure. By the time you are building up the pressure, people are attacking the pipelines again,” he added.

    The Acting Head, Public Communication, Bureau of Public Enterprises (BPE), Alex Okoh, said the government is working hard to provide gas to the plants.

    The spokesman, Niger Delta Power Holding Company of Nigeria, Yakubu Lawal, said the company was not delaying the sale of the plants which investors bid for in 2014. He said the firm has completed the building of the plants, with Olorunsogo being the latest one commissioned a fortnight ago in Ogun State.

    “The goal of the company is to build the 10 power plants, which we have done in line with the mandates given to us by the government. It is the responsibility of NNPC to provide the gas. So, how did we cause the delay in the sale of the plants as rumoured in some quarters? he asked. Yakubu said gas supply was not part of the mandate given to the company and would not concern itself with that. He said the court would determine the fate of three of the plants that are under litigation.

  • NECA calls for deregulation of oil and gas

    NECA calls for deregulation of oil and gas

    • Employers praise reduction of fuel price

    The Nigeria Employers’ Consultative Association (NECA) has described government’s reduction of the pump price of petrol as a right action within a wrong policy framework, calling for the proper deregulation of the sector.

    In a press statement signed by the Director General, NECA, Mr. Segun Oshinowo, NECA commended government’s decision to reduce the price of petroleum from N97 to N87, adding that this demonstrated that government is sensitive to the welfare of Nigerians.

    NECA, however, said this action by government is begging the more fundamental issue of appropriate policy framework that will promote investment in the downstream sector of the oil & gas industry and put a stop to the embarrassing and shameful practice of importation of Premium Motor Spirit (PMS), also known as petrol.

    “Our expectation therefore, is that government would seize the opportunity of the current decline in the price of crude oil to commence implementation of the policy on deregulation of the downstream sector of the oil & gas industry. This is a unique timing the government cannot afford to miss as full implementation of deregulation, which in time past had led to price increase and reaction by the labour movement in form of industrial action, does not have any negative effect on the masses.

    “We are indeed, surprised that government’s announcement was limited to just the reduction in the price of fuel (PMS) as one would have expected a far more holistic announcement of a new policy thrust of deregulation of the downstream sector and privatisation of the four refineries, which have now become sink-holes.

    “We do appreciate the fact that election is around the corner and government is being unusually cautious on the possible backlash which announcement of deregulation of the downstream sector of the oil & gas industry could have on its electoral fortunes. We, however, do not share the sentiment, given the fact that this is one moment when such a policy announcement would not have any damaging impact on the populace,” Oshinowo said.

    According to Oshinowo, it is a common thing for government to weigh economic imperatives against political exigencies at moments of political engagement and political process as the country is currently experiencing. He said government is more likely to accord priority to political exigencies while relegating economic imperatives to the background particularly if the fall-out of the economic imperatives will undermine public perception of the government.

    “The issue, however, is that the government is not faced with that choice under the current circumstance as the economy stands to gain from the deregulation policy. We, therefore, call on the government to do the needful by coming out boldly and courageously to inform the Nigerian populace that it has deregulated the downstream of the oil & gas sector,’’ he said.

  • Mismanagement of oil, gas led to austerity, says TUC

    The Trade Union Congress (TUC) has said that the impunity of politicians and mismanagement of the fortunes of the oil and gas industry by successive governments in the country led to the ongoing austerity measures introduced by the Federal Government, especially following the slump in oil price at the international market.

    TUC also called on the Federal Government to review its policies that would create a conducive working environment for employers of labour and workers in the country, stressing that the nation’s labour movement may have no option than to resist any government policies that would inflict more hardship on workers after next month’s general elections.

    TUC’s President, Comrade Bobboi Bala Kaigama, who made the declarations at an interactive session with newsmen in Lagos on the adverse effects of the ongoing austerity measures on workers, noted that the labour movement is aware that government may pretend not to implement some policies that may affect their political interest in next month’s general elections until March this year.

    He said: “The impunity of politicians and mismanagement of the fortunes of the oil and gas sector by successive governments in Nigeria led to the ongoing austerity measures introduced by the Federal Government on December 17, 2014 as a result of the slump in oil price at the international market.

    “The Congress feels at this time that it is important it calls government’s attention to a number of issues plaguing employers and employees relationship to ensure a friendly working environment this year as we are also aware that Government may pretend not to implement some policies that may affect their political interest in next month’s general elections until march this year.”

    According to Kaigama, Congress laments the way and manner politicians go about their politicking. He said workers’ bravery, doggedness and loyalty to the project Nigeria in the face of gross abuse of human rights, insecurity, terrorism, arson, dislodgment and chaotic situation is an eloquent testimony to the fact that lives of Nigerians are not in the hands of the government nor the Bretton Wood institutions and their perfect policies.

    He noted that what is predominant today in the nation’s democratic governance is government’s use of state’s coercive power, especially the police and resort to use of touts and idle youths to molest political opponents and journalists. “In the 1970s, we had political parties with manifestos, and the likes of Awos, Ziks and Tafawa Balewas’ of this world chronicled what they planned to do and how they planned to achieve them. But what do we have today? Are we wiser now.” he queried.

    In a related development, the Secretary General of TUC, Comrade Musa Lawal stated that government deliberately refused to listen to advice on oil windfall before the oil slump. He said: “The labour movement and some fore-sighted well-meaning Nigerians have on uncountable times called on government to make utmost use of the excess dollar we got by diversifying the economy. Unfortunately, our politicians are only interested in rushing down to Abuja for monthly allocation. Government of allocation, this is certainly not our idea of social contract.”

  • When gas explosion jolted Ondo residents

    Penultimate Saturday, which ordinarily should be a happy weekend for residents and traders in Arakale area of Akure, the Ondo State capital, witnessed an unpleasant incidence of gas explosion.

    The incident, which occurred around 7: 00 p.m. was said to have been caused by a leakage at a gas retail outlet where 11 houses were burnt and eight people injured.

    Eye witnesses confirmed that it took almost two hours before rescue operation could come; thereby causing a lot of damage as countless valuables was razed.

    Many of the victims were rushed to the trauma centre in Ondo town for quick medical attention.

    Governor Olusegun Mimiko, who visited the scene of the explosion at Arakale the following day, said the state government would investigate the cause of the explosion.

    He condemned the act, stressing that it was not a bomb blast as was speculated in some quarters, adding that there was no life lost.

    Governor Mimiko said the gas outlet responsible for the fire outbreak was not approved for business.

    He warned that all illegal filling stations in residential areas and other hazardous locations would be pulled down.

    Our correspondent gathered that there was no immediate rescue operation from the fire service, even as it took a long time for many victims to be rushed to the hospital for quick medical attention.

    The delay was attributed to lack of operational vehicles and equipment.

    The state’s Police Public Relations Officer (PPRO), Wole Ogodo, said there was no record of death at the scene of the explosion.

    He said while some of the injured have been discharged, others were receiving treatment at various hospitals.

    Ogodo said: “It was very sad that this incident happened, but I want to tell you that no life was lost, only few got injured in the incident.”

    Aggrieved residents and traders lamented that all efforts to get government’s attention to move the gas plant from the area to a safe place were unsuccessful.

    Narrating her ordeal, one of the traders, Miss Ikechi Anyanwu said: ”We were standing outside the house which is close to the shop when we heard a loud noise which turned out to be gas explosion. Initially, we thought it was a bomb because of the bang.

    “The gas tank was refilled this evening but they did not know it was leaking and it just exploded after it has been exposed to air for a long time.”

    It was alleged that men of the state fire service failed to show up at the scene at the appropriate time.

    They blamed it on malfunctioned vehicles and strike embarked upon by the workers in the state.

    But their counterpart from the Federal Airport Authority of Nigeria (FAAN) later came about two hours after the explosion.

    It took the combined effort of policemen and soldiers who came to the scene later to return normalcy and to prevent hoodlums from hijacking the situation.

    Doctors at the state specialist hospital said several injured persons were rushed there and have been receiving treatment.

    They, however, said the treatment was not total because of strike action embarked upon by medical workers union.

    According to them, the victims whose conditions were critical have been rushed to the trauma Centre in Ondo for comprehensive treatment.

  • Disquiet in Lagos community over gas pipeline project

    Disquiet in Lagos community over gas pipeline project

    The Escravos-Lagos gas pipeline expansion project is under threat as Igbooye community in Epe, a Lagos suburb, insists it be paid compensation, even as it demands that Environmental Impact Assessment (EIA) be carried out. ADEBISI ONANUGA reports. 

    The Igbooye community in Epe, a Lagos suburb, is known for its peace and tranquillity which the residents relish. This state of affairs has been ageless as their forebears loathed strife. That was in the yesteryear.

    The peace and calmness that had been the features of the community got shattered few weeks back as the people of the ancient town took to the streets to protest against the Nigerian National Petroleum Corporation (NNPC) and Zakhem Construction Company Limited over their refusal to pay compensation for their lands which the two organisations encroached into in the second phase of Escravos-Lagos gas pipeline project.

    Residents of the community were also demanding that Environmental Impact Assessment (EIA) be conducted on their land encroached upon by the gas pipeline as required by law for the safety of the environment.

    The people, who are majorly farmers, claimed to have lost about 10 kilometre stretch of their farmlands to the project, including other environmental consequences they may have to contend with as a direct consequence of the project.

    The protest was spearheaded by the community’s heads of the various ruling houses and families, including Alhaji Mikhail Kadiri, Otunba Abdulwasiu Musa-Adebamowo, Alhaji Waidi Lasisi from Erelu Ruling House, Alhaji Safiriyu Bakare from Osikadewa Ruling House and Apostle Matthew Odunlami from Shamba Ruling House, among others.

    On November 12, this year, the people made good their threat as they marched to the construction sites, forcing the workers to move their caterpillars, giant generators and welding machines out of Igbooye land to the neighbouring Ibonwon town.

    They defied the directive of the monarch of the town, the Orijeru of Igbooye land, Oba Michael Gbadebo Onakoya, who was alleged to have emboldened the NNPC and staff of the construction firm, Zakhem to carry on with their job.

    Alhaji Kadiri, who was at the head of the protest, told the construction workers that they would not be allowed to work until the Department of Petroleum Resources (DPR) meets the community’s demands.

    Kadiri alleged that the NNPC and the construction company reneged on payment of compensation to the community and the families whose lands were encroached into as a result of the gas pipeline project.

    He said the elders of the community had exchanged correspondence with the DPR, under whose supervision the NNPC operates as a subsidiary, on the issues but that the corporation has been economical with the truth.

    About five months ago, the Head of the Ewade Ruling House, Otunba Abdulwasiu Musa-Adebamowo had written the Director, DPR, Kofo Abayomi Street, Victoria Island to remind the department of an earlier letter dated March 3, this year, complaining over the refusal of the construction company, Zakhem Constructions, to pay compensation to the community.

    “It is therefore pertinent that this issue is attended to, particularly now that the laying of the gas pipeline is approaching our community which may be resisted,” he warned.

    In his earlier letter to the DPR, Otunba Musa-Adebamowo had complained that since after the September, 2012 meeting between the representatives of the NNPC led by its Community Relations/Liaison Officer on the project and elders of the community, nothing has been heard from the officer.

    “Although without the knowledge and consent of the elders and chiefs of the community, the EIA report on the project was disputed maliciously by the deposed Oba of Igbooye, M. G. Onakoya whose chieftaincy case is currently on appeal.

    “We therefore pray for your intervention as we are law-abiding citizens. The community may resist the laying of the gas pipeline if the necessary compensations are not paid appropriately,” he said.

    The letters were copied to Assistant Director, Gas, S.A. Babalola and Deputy Director, Gas Division.

    It was gathered that trouble in the community started in March 2012 when some elders of the community held meeting with representatives of the NNPC and the construction company to discuss the issue of compensation on the areas of land affected by the gas pipeline project before work would commence in the area.

    The community was alleged to have been represented at that meeting by the monarch and heads of ruling houses and at which promises of compensation were made. Aside from the name of the monarch and the Odofin, Anthony Oguntimehin, other names listed and alleged to have attended the March 2012 consultation meeting included those of Chief F.O. Adebambo; Chief F.A. Bakare; Bishop P. Odunlami; Chief Nurudeen Tomola; Hon. Afisu Amisu; Mr. Quadri Shuaib and Mr. Lekan Ajayi.

    However, more than a year after the meeting, the community was still waiting for the compensation which the company promised them.

    The monarch has, however, denied being part of the meeting, alleging forgery of his name and signature alongside others listed in the attendance sheet.

    It was gathered that when compensation was no longer forthcoming, some members of the community decided to visit the NNPC to find out the true position of things. There it was revealed to them that “compensation” had been paid to some people alleged to have claimed to be from the community. But neither does anybody knew how much was paid nor who collected the money.

    However, a chain of events, it was revealed, has led to the tensed situation and suspicions in the town.

    The Federal Ministry of Environment, acting on the strength of the compensation supposedly paid to the community, had written the chairman of Epe Local Government Area requesting for a 21-day “public display exercise on the EIA of the proposed construction of Escravos-Lagos pipeline Phase II” by the NNPC from January 14 to February 21, last year.

    The letter, dated January 7, 2013 and signed by Abbas O. Suleiman on behalf of the minister, requested the Chairman of the Epe Local Government Area to publicly display the EIA report in an easily accessible location between 8:00 a.m. and 4:00 p.m. daily for stakeholders/public comments and to forward all reactions to the Permanent Secretary of the ministry on or before February 18, 2013.

    But at the close of the exercise, nobody showed up, neither did anybody pass any comment from the community on the EIA since they were not part of it.

    It was gathered that the Igbooye community denied the EIA document at a meeting held at the instance of the Chairman of Epe Local Government Area, Otunba Agbaje at the Oba Onakoya’s palace on March 11, last year as none of its members was aware of the purported exercise.

    The view that the purported EIA may be a ruse was further reinforced by a letter dispatched by the council chairman, Otunba Agbaje dated March 11, last year, to the Commissioner, Ministry of Local Government and Chieftaincy Affairs, of its receipt of the purported EIA report.

    The letter, however, clarified the fact that “no team on EIA from Abuja ever visited the Oba of Igbooye land nor had any meeting with residents or representatives of the community at any point in time.”

    A similar letter dated same day and signed by the Higher Environment Health Officer of the Epe Local Government Area, Osunsanya, Adesola M., was also sent to the Federal Ministry of Environment in Abuja.

    The letter, which contained a six-point situation report on the disputed EIA stated, among others, that the Orijeru of Igbooye land, Oba Onakoya claimed he was at no time invited to any meeting, nor did he send any representative to the consultative forum on or after March 18, 2012 and that his name and signature were forged.

    It stated that “every other names/persons on the EIA report were faceless, unknown and fictitious as they are not residents or representatives of the community.

    It further stated that no member of the EIA team visited the monarch in respect of the project.

    It suggested that a fresh exercise of the EIA be conducted as it affects Igbooye community and that the authentic community members should be consulted appropriately to be in attendance.

    On April 25, last year, the Ministry of Local Government and Chieftaincy Affairs forwarded the letter from the Chairman of Epe Local Government Area to the Secretary to the State Government (SSG), Cabinet Office Alausa Secretariat.

    The letter, signed by the Permanent Secretary, L.A.D. Dabiri highlighted “certain anomalies bordering on communication gap between the Federal Ministry of Environment and the people of Epe as well as the displeasure of Oba Onakoya”.

    The letter urged the SSG “to play the complementary role of using her good offices to bring the development to the attention of the Federal Ministry of Environment, Abuja and having the EIA re-conducted in the concerned community as requested by the people of Igbooye land in Epe, Lagos State as well as report the case of forgery of signatures to the Minister for Environment.”

    About a month later, the SSG forwarded the letter, signed on his behalf by P.A. Dosunmu and attached documents from the Ministry of Local Government and Chieftaincy Affairs to the Commissioner, Ministry of Energy and Mineral Resources and requested him to “please look into the issue and thereafter brief his Excellency, the Governor, Mr. Babatunde Raji Fashola accordingly”.

    But events in the town, took a new turn when the elders of the town allegedly approached the monarch and asked to know if indeed compensation had been paid as demanded. It was alleged that the monarch rather urged the elders to desist from doing anything that will stop the project.

    The monarch also denied a meeting supposedly held with the representatives of Federal Ministry of Environment led by Prof. Stephen Omoregbe.

    The monarch, in a petition to the Minister of Environment dated March 3, 2013, complained that those who purportedly represented the community “were not members of Igbooye community.

    “On close examination of the minutes of the meeting of the consultative forum dated March 18, 2012, and the names and signatories on the attendance list attached, it was glaring that all signatories on the attendance list were not members of Igbooye community. Also, the Kabiyesi’s name on the list was wrong and the signature forged.”

    The letter, signed by the monarch and Odofin/Community Secretary, A.A. Oguntimehin stated further “…no meeting of such was held at all with our Kabiyesi and any of the high chiefs of the community. We would therefore suggest that a real meeting be arranged so that our community would be assured that the Federal Government meant well for our community,” it stated.

    Attempts to speak with the monarch on the issue failed as he was said to have travelled out of town when reporters visited his palace at Igbooye. His wife, Olori Adenike said only the monarch could speak on the issue.

    However, the Project Manager of the NNPC on the gas pipeline expansion project, Mr. Bello reportedly met with elders and people of the town at the community town hall few days after the protest.

    Sources said Mr. Bello assured the community that they would be compensated appropriately.

    Otunba Musa-Adebamowo, who confirmed the town hall meeting, said the community was requested to forward a fresh letter detailing their demands to the DPR.

    The community was also requested to undertake a measurement of the distance covered by the gas pipeline project within the town and forward same to the DPR while steps would be taken to conduct a fresh Environmental Impact Assessment of the affected land.

    In addition, it was agreed that the companies involved in the project would initiate empowerment programmes for youths of the town, among others.

    But, Alhaji Kadiri vowed that the community would return to trenches if the corporation and the construction company failed to fulfil their promises on payment of compensation.

  • ‘Embrace use of cooking gas’

    Residents of Oto –Awori Local Council Development Area (LCDA) have been urged to embrace the use of cooking gas in their home as it has been seen to be cleaner and safer.

    In an awareness and free gas distribution campaign, the council in conjunction with Ministry of Energy and Mineral Resources Development urged residents  to embrace the use cooking gas because it safe and cheaper.

    The council chairman, Mr Bolaji  Kayode Robert  said that the distribution of free Eko Gas Cylinder will benefit people the council.

    He said:  ‘‘Lagos State government has displayed usual determination and commitment in achieving set goal aimed at improving the quality of lives of its citizenry and I can categorically say that those of us at the grassroots are direct beneficiaries as can be witnessed here.

    ‘‘This administration has lived up to international standards of good governance found only in the developed countries.”