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Tag: OML

  • OML 25: Wike gives parties 7 days to resolve issues, reopen facility

    Rivers State Governor, Nyesom Wike has directed all parties in the dispute relating to Oil Mining License (OML) 25 to within 7 days resolve all issues and reopen the oil facility. He also directed the Secretary to the Rivers State Government, Dr. Tammy Danagogo, to convene a meeting of all key stakeholders for the host communities to outline their grievances to Shell Petroleum Development Company (SPDC), and for the company to address such developments.

    He spoke at a meeting with the management of the SPDC, Belemaoil Limited, host community leaders and Security Service Commanders at the Government House, Port Harcourt yesterday. Traditional rulers, elected leaders, Youth leaders and Chairmen of Community Development Committees from Kula, Belema, Offoin-Ama, Opu-Kula and Ibiame of Akuku-Toru Local Government Area attended the meeting. Wike said he called the meeting because the closure of OML 25 is negatively affecting Federal, State and Local Government funds.

    “OML 25 has been shut down for one reason or the other. Some persons in the community are hauling insults at me. No matter the insult, nothing will make me not to perform my duty to the area. The Federal government, the State government and the Local government are losing funds with the continued closure of the OML 25. If Shell is behaving wrongly, tell them and if Belemaoil is behaving wrongly, tell them. It is wrong for anyone to say that the Federal Government is handling the matter.  When conflicts of this nature affect the communities, it is for the State and Local Government Area  to resolve them”.

    Read Also: Photos: Wike receives Osinbajo in Rivers

    The Governor said he has no hand in the drilling of oil or the issuance of licenses, but he is committed to peace and security in communities for the development of the state. He said that the issue is on the economic development of the host communities, Rivers State and Nigeria and should not be politicised. Speaking at the meeting, Managing Director of SPDC, Mr. Osagie Okunbor said that the company operates the OML 25, with the operating license renewed by the Federal Government for another 20 years.

    “We operated in a cordial environment until 10th August, 2017 when some community people entered the facility. The information that was given to us was that they were unhappy over issues of social amenities and employment. We listened and we were keen to address these issues. But at some point another element entered the equation, which was that we should relinquish and hand over to Belema Oil, that is from the community,” he said.

    Chairman of Akuku-Toru Local Government Area, Mr. Rowland Sekibo, said Belema Oil management created the impression that they bought the OML 25 from Shell Petroleum Development Company, but the company refused to transfer the operational right.  He said that a meeting with stakeholders at NNPC Abuja, it was discovered that the license of OML 25 was still under the ownership of Shell. He said though the owner of Belema Oil  is from the area, it was illegal  to shut down the oil production  facility in order to arm twist the system to sell it to Belema Oil.

  • Why we exposed corruption in OML 30 pipeline contract, by firm

    Eraskorp Nigeria Limited (ENL) has said it exposed the controversial re-award of the Trans Forcados Pipeline (TFP) surveillance Contract to Ocean Marine Solutions (OMS) Limited for national interest and its belief in the anti-graft war of President Muhammadu Buhari.

    ENL is an indigenous oil and gas service company providing security for critical production facilities and sundry services.

    In an earlier statement, Eraskorp explained how the Nigeria National Petroleum Company (NNPC) planned to re-award the contract to OMS “in violation of laid-down procurement procedures, and against the counsel of stakeholders in the Oil Mining License (OML) 30, including the JV Partners, Operator, and the 111 communities in the oil field”.

    It exposed the alleged inflation of the contract from $1.5 million per month to $3.69 million, and catalogued alleged non-performance by OMS in the oil industry.

    But OMS denied any wrongdoing, accusing Eraskorp and Shoreline Natural Resources of “smear campaign orchestrated by desperate factions fearful that their lucrative abuse of the TFP will be over if OMS takes over the responsibility for security and surveillance.”

    But Eraskorp said OMS and its owner embarked on a “macabre dance” to “launder their battered image and douse the stench of the raging contract scandal.”

    Eraskorp insisted OMS failed to answer the most critical questions, but instead engaged in “media shadow boxing”

    The firm described as “redundant falsehood”, allegation by OMS that it ”was responsible for the loss of 11 million barrels of oil or $800 million in revenue while it provided security surveillance for OML 30 pipelines.

    “We challenge OMS and their collaborators in NNPC to provide Nigerians with cogent evidence of this spurious claim. The truth is that Eraskorp is not in charge of Operation and Maintenance (O&M) services in OML 30, and a surveillance contractor cannot be held liable for production shut-ins due to technical hitches.

    According to the firm, the questions begging for answers included – how much is NNPC paying OMS monthly to protect Escravos-Warri and Bonny–Port Harcourt, which are non-functional pipelines?

    -How can OMS claim to have eliminated illegal bunkering and oil theft on those lines when refineries are inactive, and crude is not transported through the lines?

    -Why is OMS (with no history of job execution for IOCs) the only company approached by NNPC and invited to “help” with surveillance contracts?

    -Is NNPC’s refusal to follow due process in re-awarding the contract anchored on the knowledge that OMS cannot meet the eligibility criteria for public tender, as provided in the Public Procurement Act (since its directors cannot pass the fit and proper test)?

    -Why is OMS waging a smear campaign against NNPC’s JV Partners in OML 30, on account of the latter’s refusal to sign a contract which makes neither economic nor business sense?

    Eraskorp added that ”since the deal became public, OMS has deployed resources to wage a fierce media campaign to justify a deal perceived as a serious dent on President Muhammadu Buhari’s anti-graft war.”

  • Communities shut OML 30 in Delta over neglect

    HOST communities to Oil Mining Lease (OML) 30 in Delta State yesterday took over two flow stations to protest the alleged lack of faith by operators of the lease.

    Men, women and youths from Orogun and Kokori, under Cluster 4 of OML 30, occupied and sealed off  the access into the Erhoike Flowstation in Kokori, Ethiope East Local Government Area.

    Also, women from Oleh in Isoko South occupied the Olomoro Flowstation.

    At Olomoro, three protesters were reportedly beaten up by soldiers and their leader arrested.

    But it was different at Erhoike, as the protesters demonstrated unchallenged.

    The communities said they were angry at various alleged inhuman activities of  the operator; Heritage Energy Operational Services (HEOS).

    This, they listed as unfulfilled commitments and an attempt to circumvent a direct interface, by using a non-government organisation and by-passing the Community Development Board (CDB), a body mandated to interface for them.

    Secretary of Cluster 4 Pastor Adese Andy, at Erhoike, said Heritage had been given a seven-day ultimatum to address their grievances, adding that the flowstation will remain inactive until their call is heeded.

    He said: “Heritage should listen to us because the host communities have suffered enough.

    “If they don’t come, we will remain here and there’ll be no operation until they answer us. As of now, this flowstation is not operating, it is shut down. Not just here, but the entire OML 30 fields.”

    A youth leader in Erhoke-Kokori, Mr. Oghenero Onuhwo, said besides CDB, they would have nothing to do with anyone, saying CDB had always represented them.

    Chairman of Oleh Community Development Committee (CDC) in Olomoro, Chief Ekokobe Obaro, said they had always been sidelined as no Oleh name appeared in operations of the oil firm.

    Efforts to reach the firm’s Executive in charge of Community Relations, Richard Cutts, were unsuccessful.

  • OML 58 FOOTBALL TOURNAMENT: Sponsor, LOC chairman chide teams

    OML 58 FOOTBALL TOURNAMENT: Sponsor, LOC chairman chide teams

    The 2014 OML 58 football tournament is in its second week and lots of matches have been decided between the sixteen communities that are vying for honours.

    Players of the respective teams have been showcasing their skills and interpreting the instructions dished out by their coaches. Competition has been intense because of bragging rights between the competing teams.

    However, it must be mentioned that the matches have been played in good and brotherly atmosphere, as fair play has been the watchword.

    Members of the Organising Committee have been up to speed, making sure that every logistic is in place to ensure a hitch-free tournament. Chairman of the Main Organising Committee, Goodnews Mbonu said that sponsors of the tournament ,TOTAL E and P always striveto improve the standard.

    Mbonu also charged players and officials of the competing teams to continue to adhere to the rules governing the game of football, and the competition rules of the annual OML 58 football tournament.

    Manager, Community services, TOTAL E and P, Okechukwu Obara charged the players to continue to turn on the style, as scouts are taking notes and keeping tabs on exceptional players who will be helped to have a possible future career in football.

    The 2014 OML 58 Football Tournament will end on January 16.

  • Addax Petroleum set to develop $1.3b OML 137 project

    SINOPEC-owned Addax Petroleum has finalised arrangements to begin work on its Ofrima-Udele oil wells located in oil mining lease (OML) 137 offshore Nigeria and south of Port Harcourt in Rivers State, it was learnt.

    The assets, which have undergone exploratory and appraisal stages, are set for development and if work progresses as scheduled, production is expected to start early 2016.

    An industry source told The Nation that the company had submitted the development plan to Nigeria’s oil and gas industry regulator – the Department of Petroleum Resources (DPR) since March. The regulator and other relevant authorities had given approvals to Addax to go ahead with the projects development, he said.

    OML 137 is one of Addax’s notable flagship projects on which it banks the realisation of its aspiration to attain a daily production well in excess of 100,000 barrels per day (bpd). The oil mining lease is 100 per cent owned and operated by Addax.

    Barring any circumstance that may change the schedule, the source said work on the development of the wells would begin next month, adding that the oil firm has reached reasonable level of discussion with some financial institutions for funding of the project.

    According data from Addax website, OML137 and OML126 are two contiguous blocks located 90 km offshore, south of Port Harcourt, in water depths ranging between 50 metres and 210 metres. Production from OML126 commenced in March 2005 and averaged 42,330 barrels per day. For OML137, however, there has been no production from it but Addax anticipates the presence of light oil for it similar to the crude oil produced from the Okwori and Nda fields in adjacent block OML 126.

    OML 137 was surveyed by 3D seismic in early 2006 and contains the Ofrima North oil discovery and several potentially commercial natural gas discoveries(Shokoloko, Toriye, Odum, Asanga and Ofrima), four identified oil prospects (Ofrima North, Atuma, Udele and Asa) and a number of shallow and deep leads.

     

     

    The company said: “Addax Petroleum operates in Nigeria, Gabon, Cameroon, Middle East and North Sea and employs 274 people of diverse cultures and professional backgrounds in its main service office in Geneva and encourages on-going professional training and development; 80 per cent of Geneva-based employees pursued professional training opportunities in 2013. The Addax Petroleum group, representing more than 30 nationalities worldwide, has over 1100 employees and approximately 1000 additional employees work for our joint venture companies.

  • Total moves to Ofon field OML 102

    Total moves to Ofon field OML 102

    The Ofon Phase 2 Process Platform (OFP2) is on its way to the Ofon field located in the Oil Mining Lease (OML) 102, 50km off the coast of Nigeria in 40m water depth.

    The field is owned by Total E&P Nigeria Limited (TEPNG) 40 per cent in partnership with the Nigerian National Petroleum Corporation (NNPC) 60 per cent.

    According to a statement, the sail-away for the OFP2 was performed at the Hyundai Heavy Industries (HHI) yard in Ulsan, South Korea on Friday, November 22 by the Deputy Head of Mission of the Nigerian Embassy in Korea, Ambassador Salihu Ahmed and his wife Michelle, Deputy Managing Director, TEPNG Port Harcourt District, Mr. Nicolas Brunet, Executive Director, TEPNG Port Harcourt District, Mr. Patrick NGENE, TEPNG OFON 2 P roject General Manager, Mr. Emmanuel Hyest, TEPNG OFON 2 Company Representative in Ulsan, Mr. Jean-Marc Pecquois and the Senior Executive vice President and Chief Operating Officer, HHI, Mr. J. D. Kim. The ceremony was also witnessed by other officials from Total, NAPIMS, DPR and HHI.

    Ambassador Ahmed said: “The successful completion of this platform is a further demonstration of the excellent relationship between Nigeria and the Republic of Korea.”

  • Lekoil to acquire 6.5% interest in Aje field

    Lekoil to acquire 6.5% interest in Aje field

    Lekoil 113, a subsidiary of Lekoil Nigeria Limited, an indigenous independent exploration and production company has agreed to acquire a 6.502 per cent participating interest in Oil Mining Lease (OML) 113 from Pan Petroleum Aje Limited, a subsidiary of Panoro Energy ASA.

    The asset lies within the Benin Basin, about 24 km from the coast of Nigeria, close to the route of the West Africa Gas Pipeline and 64 km from Lagos. The licence covers an area of 960 km2 with water depths ranging from 100 to 1,500 metres. It is primarily a gas and gas condensate discovery, but also contains a thin oil reserves. The 6.502 per cent interest is being considered for US$30 million.

    A statement from Lekoil stated that OML113 is located offshore Nigeria in the Benin Embayment along the West African Transform Margin adjacent to Oil Prospecting Lease (OPL) 310, in which Mayfair Assets and Trusts Limited, a subsidiary of Lekoil Nigeria, has an ultimate 30 per cent economic interest.

    The OML113 licence area contains the Aje oil and gas field, for which AGR TRACS International Limited in its recently updated Competent Persons Report (CPR), estimated Contingent Resources of 198.7 million barrels of oil equivalent (mmboe) or proven reserves.

    When the deal is finally sealed, Lekoil’s share of the 198.7 mmboe according to a statement, will be approximately 25.3 mmboe. About 50 per cent of the reserves in the Aje field are liquid hydrocarbons, comprising gas, gas liquids and condensate as well as a significant oil in one of the reservoirs.

    On 17 June 2013, Lekoil 113 entered into a binding conditional Sale and Purchase Agreement (SPA) with PPAL, Pan-Petroleum Nigeria Holding and Pan-Petroleum (Holding) Cyprus Limited to acquire a 6.502 per cent participating interest in OML113 representing cost bearing participation and revenue participation that range from 16.255 per cent to 12.1913 per cent.for activities in the Aje Field depending on the extent of cost recovery.