Tag: Mobil

  • Time to look beyond NLNG, Shell, Mobil

    Time to look beyond NLNG, Shell, Mobil

    Bonny Island is regarded as the richest Island of its kind in the country and sub-Sahara Africa on account of being host to the Nigeria Liquefied Natural Gas (NLNG) Limited, Shell Petroleum Development Company (SPDC) and Mobil Producing Unlimited. But the Island’s needs, which are beyond the companies’ reach, must be attended to so that it does not pose future threats, writes OLUKOREDE YISHAU

    Shell Petroleum Development Company (SPDC) was the first to see the light in Bonny Island. Mobil Producing Unlimited saw it later. Nigeria Liquefied Natural Gas (NLNG) Limited did not see it until some two decades ago when work started on Africa’s largest LNG plant. They all liked the place and its potentials. The Federal Government, which has interest in all of these ventures, also knows what the country stands to gain from Bonny Island, which hosts the country’s only port of origin.

    The people were happy that the companies came. They had good times at the peak of the construction of the companies. The skilled and the unskilled were employed to get the companies ready.

    When work on the NLNG seventh train reaches its peak, thousands will be employed too.

    On November 5, 1998, the Island signed a Memorandum of Understanding (MoU) with the three major companies there. This has seen the Island benefiting in the form of roads, water and free electricity.

    But Bonny Island still needs help. Plenty of it. That was why at the weekend, its traditional ruler, the Amayanabo of Grand Bonny Kingdom, King Edward Dappa Pepple 111, spearheaded a pan-Bonny Sustainable Development Conference. An area the Island must be helped so that its youths do not become threats to the companies and the elite is education.

    A World Bank consultant, Dr. Rosemary Nwangwu, spoke of the sorry human capital state of the community.

    Dr. Nwangwu said: “The number of teachers in Bonny primary schools is inadequate. There are no teachers even in the core subject areas: English Language, Mathematics and the Sciences. There are 21 public primary schools in Bonny Local Government Area. These 21 schools have a total of 5,949 pupils (male, 3010, female, 2939) taught by 139 teachers. This gives a teacher-pupil ratio of 1:44 as against the policy stipulated ratio of 1:35.

    “The secondary schools are no better staffed. There are four public junior and four public senior secondary schools in the Island…The junior secondary schools have 1,949 students… and are taught by 27 teachers. The senior secondary schools have 1,896 students and are taught by 71 teachers. Also at this level, there are no Mathematics, English Language or Science teachers.”

    The result of these, she said, was poor performance in terminal examinations.

    Dr. Nwangwu said in the last 10 years, the oldest school in the Island has recorded only 12 per cent pass with five credits in WAEC.

    She said: “These young people have been processed into nothingness and are not equipped to do anything. A more dangerous reality for the community is that the young people who are unable to make the pass mark are unable still to get into any other system that can enable them acquire skills. They are lost in the education system and lost to their families in terms of income generation and survival skills. These persons who dropped out from the system cannot help themselves or the system.”

    King Pepple said things have to change. He said there was still a long road to travel. He said the time had come to attract more partners to drive its development other than the NLNG, Shell and Mobil.

    According to him, the Island must be steered to the shores of development and prosperity for the sake of the future generation.

    He said: “We raise our voices to governments, the private sector, all international development agencies, all friendly corporate organisations that Bonny is open for business and to work with all well-meaning people to grow a project that we can all be proud of as partners.”

    The Executive Director of the Rivers State Sustainable Development Agency (RSSDA), Mr Nobel Pepple, said the people must look beyond oil and gas for the development of the community. He said alternative livelihood could be found in fishing and agriculture.

    This position was also canvassed by the Netherlands Ambassador to Nigeria, Mr Bert Ronhaar, who said with the sea in the Island, it can supply fishes to the rest of the world and make money.

    NLNG Managing Director Babs Omotowa, who represented the three oil and gas firms operating in the community at the conference, said a lot of work still needs to be done. He said the NLNG, Shell and Mobil would support the community’s drive for sustainable development.

    He said: “There seems to be the absence of a new direction for development after the exhaustion of the MoU items signed by the community with Joint Investing Companies (JIC). There are also issues of community ownership and programme/project sustainability as well as the need to broaden the support base of development in a holistic manner for the greater involvement, empowerment and enjoyment of the community as a whole. There we hope this conference will address and possibly encapsulate a workable plan for the future.

    “Finally, there is also a need for mid to long term outlook by the community in conceiving and initiating development programmes against the current short term yield expectations. The community needs to leverage on its latent and available resources to drive development from within.

    “On its part, JIC will support this transition and, in partnership with other external agencies, also support the development of this new way of thinking- and working. This will engender self- regulating development, communal confidence, and encourage external investors and international organisations to contribute to the socio-economic development of the island.”

    A communique at the end of the conference said the community must seek new partners to work with existing ones for its development in the areas of human capital and so on. It also agreed to set up an Economic and Social Development Fund to finance an updated Master Plan, service infrastructural and social development.

    The need to look beyond oil and gas for sustainable development of the community, said observers, is strengthened by the changing global oil needs.

    A day before the conference, it emerged that the country’s oil exports will remain well below last year’s average in July. The country plans to export 1.92 million barrels a day of oil in July, according to details of crude shipments provided last Friday to Dow Jones Newswires by traders in the market. Next month, the country will export 1.76 million barrels a day, which is below the country’s average export volume of 2.24 million barrels a day last year.

    In the past, the drop in supply would have pushed up price. But not anymore.

    This is attributed to the booming production in the U.S. shale oil fields.

    Managing Director, Swiss consultancy Petromatrix Olivier Jakob said:

    “It used to be that supply disruptions were a problem. Now (Nigerian supply cuts) are welcome to balance the market, and that says something about the structural change.”

    In April, Shell was unable to fulfil contractual deliveries of Bonny Light crude oil named after the Island, where it is sourced, after a high number of thefts forced it to close the Nembe Creek pipeline for repairs. Shell said around 150,000 barrels a day of production was deferred because of the shutdown. This did not affect price.

    Torbjorn Kjus, an analyst, said: “It’s not only the supply now, but it’s also the demand from all of the key sources. The U.S. is kind of slipping away.”

    Speaking at a conference in Oxford, United Kingdom, Minister of Petroleum Mrs. Diezani Alison-Madueke said: “Shale oil has been identified as one of the most serious threats for African producers.”

  • Mobil signs Qua Iboe 500MW power project agreement

    Mobil signs Qua Iboe 500MW power project agreement

    Mobil Producing Nigeria Unlimited (MPN), operator of the Nigerian National Petroleum Corporation (NNPC) / MPN Joint Venture, has signed a seller’s representative agreement (SRA) for the 500 megawatts (MW) Qua Iboe power project, located at MPN’s Qua Iboe terminal, in Akwa Ibom State.

    In a statement, the General Manager, Public and Government Affairs, Paul Arinze, quoted the Managing Director of MPN, Mark Ward as saying that the project is a demonstration of MPN’s commitment to Nigeria, and supports President Jonathan’s priority of providing electricity to the country.

    The signing of the SRA, it explained, is a critical part of the overall commercial framework that enables MPN to undertake power activities and facilitates the sale of power by MPN to the Nigerian Bulk Electricity Trading Plc for itself and on behalf of Nigerian National Petroleum Corporation.

    He explained that the Front End Engineering Design (FEED) and Environmental Impact Assessments (EIAs) for the project, have been concluded, while commercial tenders for Engineering, Procurement and Construction (EPC) are nearing completion.

    Exxon Mobil Corporation is the largest publicly traded international oil and gas company, and uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil is one of the largest oil producers in Nigeria through the operations of two upstream affiliate companies – Esso Exploration and Production Nigeria Limited and Mobil Producing Nigeria Unlimited.

    The two companies have notable history, proven experience and a strong record of contribution to Nigeria’s development, the statement, added.

    Meanwhile, the National Executive Council Committee on Reinvesting Plan for Power Sector is to submit its report to the Vice-President today, Anambra State Governor Peter Obi has said.

    The Governor, who is a member of the Committee spoke after the meeting held to review the reports of the Committee at Transcorp Hilton, Abuja.

    Obi, who declined further comments on the issue, insisted that it is only the Chairman of the Committee, the Cross River State Governor, Liyel Imoke that should address the press, if need be.

    He said the Committee was set up as part of efforts by the government to find lasting solutions to power problem in the country.

    He said President Goodluck Jonathan and the Governors are committed to resolving the problems of power in the country, and are doing everything possible to find lasting solutions to the issue. “In view of how serious the President as well as the Governors take the matter, I assure you that the power problem will soon become a thing of the past,” he said.

    On snippets from the report, Obi said: “ I am not the Chairman of the Committee. It is only the Chairman that can do that. In any case, the report will be presented tomorrow (today). why not wait and the entire report will be made available to the press,” he added.

    The Committee was set up by National Executive Council to review the technical report on the power sector and to recommend best ways for investment in the sector.

    Chaired by Imoke; the Governors of Anambra, Peter Obi; Kogi, Idris Wada; Katsina, Ibrahim Shema; Minister of National Planning, Dr, Shansuddeen Usman; Chief Executive of Transmission Company of Nigeria, Don Priestman; Principal Consultant, Energy Sector Practice, Dr. Cezley Sampson,; the Managing Director of Niger Delta Power Holding, J. A Olotu, among others, were present at the meeting.

     

  • Mobil institutes prize at UNN

    Mobil institutes prize at UNN

    Three gifted writers among students of the Department of Mass Communication, University of Nigeria, Nsukka (UNN) would earn a residency internship in Mobil Producing Nigeria Unlimited.

    The company would annually select the lucky students from those who have shown the spirit of entrepreneurship by constantly writing articles, opinions and blogs concerning the development and economy of Nigeria.

    For a particular student to qualify for selection, a national daily, blog or internet site must consistently publish or post his or her works for the year in review, with effect from 2013, the MPNU stated.

    It noted that the residency internship would not encroach on the school’s academic calendar, and stated that it is aside the mandatory industrial attachment programme for Mass Communication students.

    Mobil’s General Manager, Public and Government Affairs, Mr Paul Arinze, made this disclosure last Friday, at the 2013 Jackson Annual Lecture, usually hosted by UNN’s Department of Mass Communication.

    “We will pick up the bills and place you in a very nice place to work in Mobil where you would further improve yourself and imbibe an entrepreneur spirit that would in future enable you to be self-employed. We are making this commitment because we believe in what the faculty is doing and we would like to see it blossom,” Arinze told the students.

    Away from instituting an annual prize for Mass Communication students, Arinze said Mobil would sponsor the lecture for the next five years, “as a way to enhance communication studies in the country.”

    Head of Department, Mass Communication, UNN, Dr Nnanyelugo Okoro, praised the move and urged Mobil to help the department acquire modern communication equipment and facilities to sustain its full accreditation by 2015.

    He said the department was in need of multi-media equipment to facilitate lectures, a standard radio/television studio, and photojournalism laboratory, with modern digital cameras, among other equipment.

    “The idea is to initiate an instrument for the achievement of synergy between the academia and practitioners of communication,” Okoro pointed out.

    He also said the department is proposing the establishment of a School of Mass Communication, which, he said, is the trend in modern universities.

    “Under such arrangement, we will now have a Department of Advertising and Public Relations, Department of Print Journalism and Book Publishing, and Department of Electronic Journalism and ICTs,” Okoro added.

     

  • A/Ibom community rejects Mobil’s relief materials

    Ibeno, an oil-producing community in Akwa Ibom, has rejected relief materials presented to it by Mobil Producing Nigeria, to cushion the effect of the recent oil spill in the area.

    The News Agency of Nigeria reports that the oil company had, a few days ago, announced that it would send relief materials to communities impacted by the November 9 oil spill from its facilities.

    Many communities in nine local government areas in the state were affected by the spill and it was learnt that Mobil had distributed the relief items to more than 90 per cent of the affected area.

    But Ibeno community turned down the gift on the grounds that the company said that it was donating the materials “on humanitarian ground and not because it is liable for the spill.”

    According to Chief Ukott Esenem, head of the community, the oil company said that the donation of the relief materials to us did not necessarily mean that it is responsible for the spill.

    “If they are now claiming that they are not liable for the spill, it means that something is wrong somewhere,” Esenem said

    He added that it was wrong of the company to distance itself from the spill, and stressed “besides they sent only 60 bags of rice and some other items to the entire Ibeno local government area.”

    He lamented that the area was a major host to Mobil, adding that thousands of fishermen in the area had had their businesses disrupted by the incident.

     

  • Mobil spends N70m on oil clean up

    Mobil Producing Nigeria said it has spent more than N70 million to clean up the recent oil spill from its facilities in Ibeno, Akwa Ibom.

    The company, in a statement on Monday in Ibeno, said that the amount was used to pay youths engaged for the cleanup.

    MPN, a subsidiary of United States oil firm ExxonMobil, had earlier confirmed that 200 barrels of crude was discharged into the Atlantic from its operations on November 9.

    According to the statement, signed by the General Manager, Public and Government Affairs, Mr. Paul Arinze, MPN engaged 500 youths from its host community for the cleanup.

    NAN gathered that the youths received a daily wage of N7, 000 each for 20 days that the exercise lasted.

    Although company sources did not disclose the cost of the coastline cleanup, one of the community contractors said that the N70 million was just for wages.

    He explained that the amount did not include materials and machinery deployed for the mop up.

    Mr. James Etim, one of the youths engaged for the cleanup, confirmed to the News Agency of Nigeria that he received N7, 000 daily for his labour.

    “The 500 people assigned for the cleanup got N7, 000 daily, but we do not know if Mobil is paying higher than that.

    “Our concern is that the job is temporary one and has been schedule to last for 20 days.

    “We hope that they will extend the period at least for another 10 days to enable us do a thorough cleaning.

    “But a lot depends on the progress of work and the assessment of the regulators,” Etim said.

    NAN reports that a team of oil spill response workers, equipment and crude dispersing chemicals were also dispatched to the spillage site located 20 kilometres from the Atlantic Coastline in Ibeno.

    MPN attributed the spill to a ruptured 24 inch pipeline between the Qua Iboe Fields and crude processing facility in Ibeno.

    The situation compelled the oil firm to declare a “force majeure” on its crude streams.

     

  • Mobil declares `Force Majeure’ on Qua Iboe stream

    Mobil Producing Nigeria has said it could not meet its contractual obligations to crude oil buyers due to the November 9 oil spill in its field.

    Mobil is the operator at the Qua Iboe oil terminal where the November 9 oil spill discharged heavy volumes of oil into the Atlantic Ocean creating serious environmental discomfort.

    A statement from the oil firm said it had declared a ‘Force Majeure’ on its Qua Iboe crude streams.

    In the statement signed by MPN’s General Manager, Public and Government Relation, Mr. Paul Arinze, the company apologised for the inconvenience caused by the incident.

    Force Majeure frees a company from legal liabilities caused by circumstances beyond its control.

    “Mobil Producing Nigeria, operator of the Nigerian National Petroleum Corporation, (NNPC)/MPN Joint Venture today confirms that it has declared a Force Majeure due to the difficulty in meeting projected lifting.

    “This is because of repair work on a section of pipeline affected in a November 9 oil release incident.

    “We are working to minimise down-time period and have notified appropriate regulatory agencies and purchasers. We regret any inconveniences this may cause our customers,” the News Agency of Nigeria quoted Arinze as saying in the statement.

    .

     

  • Oil Spill: NOSDRA, Mobil disagree on use of dispersants

    Mobil Producing Nigeria and the National Oil Spills Detection and Response Agency have disagreed over the use of dispersants in containing the November 9 oil spill.

    NOSDRA maintained on Tuesday that the 2006 Act empowered the agency to coordinate the implementation of oil spill contingency plans.

    The NOSDRA Director, Oil Spill Response, Mr. Musa Idris, told News Agency of Nigeria that the agency never issued any approvals to deploy dispersants in the oil spill clean-up process.

    ”No approval was sought from the Director-General of NOSDRA as specified and recommended in the NOSDRA Act; the DPR approval letter is questionable and we should see it,” Idris said.

    However, Mobil’s spokesman, Mr. Nigel Cookey-Gam, told NAN that the company obtained the approval from the Department of Petroleum Resources.

    According to a statement from Mobil signed by the General Manager in charge of Government and Public Affairs, Mr. Paul Arinze, the oil firm was making progress in the mop up of the spill.

    He said that heavy equipment, including oil spill booms, pumps, aircraft, spill response vessels and some 500 response workers were deployed during the exercise.

    Mobil Producing Nigeria (MPN), operator of the NNPC (NNPC/MPN) Joint Venture provided the following update on clean-up operations in Akwa Ibom.

    ”We are working closely with the Department of Petroleum Resources (DPR), National Oil Spill Detection and Response Agency (NOSDRA), Akwa Ibom State Ministry of Environment and local community leaders, in a joint team to determine coastal shorelines that might have been affected,” the statement quoted Mark Ward, MPN Managing Director, as saying.

    ”We thank them for their cooperation and support and for the understanding of the local communities that may have been affected in one way or another.

    “Dispersants approved by the Department of Petroleum Resources (DPR) had earlier been used to disperse the oil offshore.

    “Mobil Producing Nigeria is committed to a speedy and comprehensive cleanup; our oil spill response plans have been quickly implemented in line with this objective,” the oil firm said.

     

  • Total Nigeria vs Mobil Oil Nigeria: Neck to neck

    Total Nigeria Plc and Mobil Oil Nigeria Plc are the two most capitalised petroleum-marketing companies in Nigeria. Altogether, they accounted for some 52 per cent of total market capitalisation of the downstream oil sector at the stock market. Total Nigeria leads the capitalisation table with 28 per cent while Mobil Oil Nigeria trailed with some 26 per cent. A subsidiary of French multinational and Europe-leading oil company-Total S. A, Total Nigeria is a company of considerable influence and size in Nigeria and globally. With more than 500 retail outlets, five Liquefied Petroleum Gas (LPG) bottling plants, three lubricant blending plants, four aviation depots and many other facilities, Total Nigeria is undoubtedly a leading oil-marketing company.
    Mobil Oil is the earliest petroleum-marketing company to be incorporated in Nigeria and has operated for more than six decades in Nigeria. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America and it runs a nationwide network of outlets that make the company a household brand throughout Nigeria.
    Both companies shared many similarities. With some 60 years of operations in Nigeria, they have etched their brands and stocks as blue chips. Interestingly, both companies were listed  same year, same month and within the same week.
    Audited reports and accounts of both companies for the year ended December 31, 2011 showed a similar pattern, with recovery in sales characterised with decline in profitability and returns. Where the performance trends differed, the companies intermittently switched roles. While Total Nigeria  led in terms of size of growth, Mobil Oil Nigeria made more profit per every unit of sale and its returns were quite higher than its competitor.
    Sales generation
    Both Total Nigeria and Mobil Oil Nigeria grew the top-lines in 2011 as against general declines in the previous year. Total Nigeria increased sales by 8.3 per cent in 2011 as against a drop of 10.1 per cent in 2010. Mobil grew sales by 6.4 per cent in 2011, a major recovery from the declines in the past two years when sales dropped consecutively by 7.1 per cent and 5.9 per cent in 2009 and 2010 respectively.
    Profitability
    Mobil’s gross profit grew by 4.2 per cent in 2011 but profit before tax dropped by 3.4 per cent in 2011 as against significant growth of 41 per cent. Net profit after taxes also slipped by 3.4 per cent in 2011 compared with increase of 37 per cent in 2010. Gross profit margin dropped marginally from 16.6 per cent to 16.3 per cent while pre-tax profit margin contracted to 8.9 per cent in 2011 as against 9.8 per cent in 2010.
    On the other hand, Total Nigeria’s gross profit grew by 6.6 per cent in 2011 as against a decline of 4.5 per cent in 2010, showing a two-year average growth of 1.05 per cent. The company also replaced its 6.2 per cent decrease in profit before tax in 2010 with a growth of 1.3 per cent. But as margins diminished on item-by-item basis, profit after tax caved in with a decline of 4.0 per cent in 2011 compared with negligible growth of 0.1 per cent in 2010. Underlying profit-making capacity of the company was however, generally weak. Gross profit margin dropped below average to 12.9 per cent as against 13.1 per cent in 2010. Pre-tax profit margin also decreased from 3.6 per cent to 3.4 per cent.
    On the average, Mobil still maintained its lead with higher gross margin and pre-tax profit margin. Compared with Total Nigeria’s average gross margin of 13 per cent, Mobil made about 16.5 per cent while Mobil’s average pre-tax profit margin of 9.35 per cent more than doubled Total Nigeria’s 3.5 per cent.
    Actual returns
    Mobil returned 18 per cent on total assets in 2011 as against 24 per cent posted in 2010 while return on equity slipped from 65 per cent to 55 per cent. Average return on total assets over the past two years stood at 21 per cent while average annual return on equity stood at 60 per cent.
    Meanwhile, Total Nigeria’s return on total assets was almost unchanged at 10 per cent while return on equity dropped from 44.5 per cent to 38 per cent. Average annual return to shareholders thus stood at 41.25 per cent.
    The bottom-line
    Protracted reform in the petroleum sector and continuing controversy that exacerbate global oil variables tend to undermine the potential of Nigerian petroleum companies. These compounded the almost monolithic nature of the business where little product differentiation gives less room for marginal errors. The margin of profitability, and sustainability of such, thus depends on high level of appropriate mix of often-difficult variables.
    Both companies obviously need to explore ways to accelerate sales growth and control cost to deliver higher margins and ensure better returns to shareholders. For now, it’s a neck-to-neck contest of the two oil majors.