The Nation Newspaper

Tag: shell

  • Shell awards scholarships to 60 Niger Delta pupils

    A new batch of 60 pupils from the Niger Delta has been awarded the special secondary schools scholarship of The Shell Petroleum Development Company (SPDC) Joint Venture’s Cradle to Career, covering tuition and  other bills for six years in four of the topmost private secondary schools in Port Harcourt.

    Brookstone Secondary School, Jephthah Comprehensive College, Archdeacon Brown Educational Centre (ABEC) and Bloombreed High School in Port Harcourt will receive 60 beneficiaries yearly from difficult terrains of the Niger Delta on scholarship for their secondary education, after a two-week orientation  with introductory courses in academics, character and psychology.

    The pupils are the seventh set of beneficiaries and they bring the total number of beneficiaries since inception of the Cradle to Career programme to 410.

    SPDC Managing Director and Chairman, Shell Companies in Nigeria, Osagie Okunbor, represented by the General Manager External Relations said: “This year, the first set of beneficiaries completed their secondary education and the report we have is that about all of them recorded excellent performance in the school certificate and unified tertiary matriculation examinations. It means the aims of the programme are being achieved.”

    Speaking at the ceremony in Port Harcourt, the SPDC chief said Shell and its joint venture partners had sustained the scholarship initiative despite the economic challenges because they see education as a right for every child and not a privilege.

    Dr Patricia Ogbonnaya, Mrs Elizabeth Alagoa and Dr Moses Onoriode Bragiwa, representatives of the Rivers, Bayelsa and Delta states Commissioners for Education, extolled the scholarship scheme for complementing their governments’investments in education. They praised the transparent selection and the human capital development benefits of the programme to the region.

    “SPDC has a passion for investing in people and we are happy to report that students in the programme have over the years been on the top of their classes in their respective schools. We thank Shell and their joint venture partners for helping to ameliorate the problems of the Niger Delta,” said Dame Christie Toby, the proprietress of one of the implementing schools.

    The SPDC JV launched the Cradle to Career initiative in 2010 to provide for bright indigent students and improve on the positive results of its other portfolio of scholarship schemes for local and international undergraduate and postgraduate studies.

    Shell Companies in Nigeria support education through scholarships and other initiatives. In 2015, SPDC Joint Venture and Shell Nigeria Exploration and Production Company (SNEPCo.) invested $10.1 million in scholarships.

    Grants were awarded to 930 secondary school pupils and 638 university undergraduates last year, with a total of 10,401 (secondary) and 3,532 (university) grants given over the last five years.

  • Omisore recoils into shell

    Omisore recoils into shell

    IF the only permanent thing in life is change, one of the most affected commodities is power. It is as transient as the people who wield it; a lesson many in the corridors of power refuse to learn until it is too late and they are cast out to roam the lonely wilderness alone like once mighty lords banished and bereft of their high estates.

    Wherever he is now, former Osun State deputy gobernor and defeated governorship candidate of the PDP in Osun State, Senator Iyiola Omisore, must be pondering the tides of life that has reduced his once mighty name into a byword for expired glory. Gone are the days when his utterances carried the force of law and both the powerful and the powerless scurried around like intimidated rats to do his bidding.

    Like the biblical Nebuchadnezzar, the erstwhile strongman of Osun politics must have thought that his reign would last forever. During the administration of former President Goodluck Jonathan, Omisore loomed large like Mount Everest over the people of his state. Now the times have changed and the tough-talking former governorship candidate, unable to contemplate his fall from relevance, has burrowed into his desolate shell.

  • Shell trains youths on plant operations

    Shell trains youths on plant operations

    The Shell Petroleum Development Company (SPDC) has trained 15 engineering graduates on the operation and maintenance of combined cycle power plants.

      The graduates were drawn from the communities, which host Afam  VI power plant at Oyigbo in Rivers State.

    Th engineers were the second set of 30 graduates from the communities to benefit from the initiative,  which incorporates training in Nigeria and the United Kingdom (UK).

    “We can confidently say that the trainees are the best set of engineers in the Nigeria’s  electricity industry today,” Afam Power Project Manager, Ben Agbajogu, said during a ceremony in Port Harcourt to mark the end of the one-year training.

    “The trainees have been adequately equipped theoretically and practically on how to operate and maintain modern power plants, and can compete favourably with their counterparts anywhere in the world,” he added.

    SPDC’s Corporate Media Relations Manager, Precious Okolobo, said the training included exposure of the graduates for 11 months at the Afam VI Power Plant to operate and maintain a combined cycle power plant and one-month specialised certificate training at the Osborne Training Services Newcastle, United Kingdom.

    The member representing Oyigbo constituency in the Rivers State House of Assembly, Chisom Dike, said the initiative is a dream come true, recalling how SPDC accepted his proposal as a youth leader about 12 years ago to train over 100 youths in various skills.

    “The success story of that initiative today is that our youths are major participants in virtually all construction and fabrication projects undertaken anywhere in Oyigbo Local Government Area and beyond,” he added.

    Rivers State Commissioner for Chieftaincy and Community Affairs, John Bazia, advised the graduates to make the best of the opportunity, by exploring entreprenuial avenues in it.

    The traditional ruler of Ayama community, Eze Elijah Adiele, thanked SPDC for the idea, which has given bright future to graduates from Afam Power Plant communities.

    The Power Plant Operations and Maintenance training programme began in 2013 with a set of 15 graduates of engineering trained in Bangkok, Thailand.

    Afam VI Power Plant, which commenced operations in August 2008 contributes 650-megawatt (Mw) to the national grid. It requires only two-thirds of the gas needed by many power plants to generate each unit of electricity.

    The United Nations Framework Convention on Climate Change (UNFCCC) issued the plant about 541,537 Certified Emission Reductions (CER) credits last year, the first energy efficiency project on power generation registered from Nigeria.

  • Shell declares force majeure on Bonny Light crude liftings

    Shell’s Nigerian unit has declared force majeure for Bonny Light crude oil liftings due to a shutdown of a Niger Delta pipeline following a leak.

    The declaration came just over a month after the company ended its most recent new force majeure on Bonny Light after repairing another leak on the same pipeline.

    “SPDC declared force majeure on Bonny Light liftings effective 1000 hours (Nigerian Time) today due to shutdown of the Nembe Creek Trunk Line (NCTL) by the pipeline operator, Aiteo, following a leak,” Reuters quoted Shell as saying in a statement issued on Friday.

    The Shell Petroleum Development Company of Nigeria Ltd (SPDC) is Shell’s local unit.

    A spokeswoman said Bonny Light exports were continuing via the Trans Niger Pipeline, which had reopened after being closed since early June.

    Sources told Reuters the pipeline resumed pumping oil last week.

     

  • Shell declares force majeure on gas to NLNG

    Shell declares force majeure on gas to NLNG

    Royal Dutch Shell said its local unit, Shell Petroleun Development Company (SPDC), has declared force majeure on gas supplies to Nigeria Liquified Natural Gas (NLNG) plant because of a leak, potentially exacerbating a decline in exports for the Organisation of Petroleum Exporting Countries (OPEC) member that’s suffering from militant attacks on energy infrastructure.

    “The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs,” Natasha Obank, a Shell spokeswoman, said in a statement. The leak occurred on the Eastern Gas Gathering System (EGGS-1) pipeline which supplies the bulk of Shell’s gas to the NLNG plant on Bonny Island. However, some supply continues through other pipelines, Shell said

    Nigeria’s government has resumed payments to former militants and is attempting to establish talks to end attacks on pipeline infrastructure in the oil-rich Niger Delta that has sunk crude production to almost a 30-year low. Output has fallen to 1.4 million barrels a day, Minister of State for Petroleum Resources Emmanuel Kachikwu said earlier this month.

  • Bonga spill: Shell compensation not transparent, say communities

    Bonga spill: Shell compensation not transparent, say communities

    Some victims of the 2011 Bonga oil spill in the Niger Delta have accused Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Petroleum Development Company of Nigeria Limited (SPDC) of underhand practices in the payment of compensation.

    They said the oil firm sought to avoid its obligations by describing the spillage as a ‘mystery spill’ and afterward signed a General Memorandum of Understanding (GMoU) with unauthorised representatives of the 350 impacted communities.

    In a statement signed by six representatives of South Ijaw, Ekeremor and Brass Local Government Areas (LGA) they alleged that the firm convinced the unauthorised representatives that the compensation would be converted to infrastructure “with ten percentage of the infrastructure money to go to the GMoU members as administrative cost.”

    They warned that this could “incite the people against the Federal Government and/or intra-ethnic violence in the Niger Delta thereby undermining the national security.

    “Sometime in July 2016, Shell invited GMoU chairmen of 24 communities to sign nefarious agreements on behalf of the impacted communities, with a view that the Federal Government’s case at Abuja, will not succeed because the Federal Government is Shell’s principal with respect to the Bonga field.

    “Secondly, the Federal Government agent, National oil Spill Detection and Response Agency, (NOSDRA), through a scientific report said that the Bonga spill did not impact the shores. Thirdly, money paid into the federation account may not get to the communities.

    “We wish to inform the whole world that the GMoU chairmen/members are not invested with any authority to discuss land acquisition and/or oil spill compensation as well as convert compensation to infrastructure on behalf of impacted communities especially the 2011 Bonga Spill in any manner whatsoever.,” the statement said.

    It added that the Accredited Representative/Attorney “of all the shoreline communities remains Gbutse Property Limited and any negotiation without the presence and/or signature of their said Attorney shall be deemed null and void, and of no effects whatsoever.”

    The communities also warned that if the firm failed to follow the National Assembly’s recommendation of September 30, 2014 to commence negotiation with their Representative/Attorney, they would “definitely file a separate claim against Shell in any court of law.”

  • Only 25% of Nigeria’s gas reserves is utilised, says Shell chief

    • ‘How to optimise resource monetisation’ 

    Only 25 per cent of the country’s gas reserves is being utilised, the Managing Director of Shell Petroleum Development Company (SPDC) and Country Chair of Shell Companies in Nigeria, Mr. Osagie Okunbor, has said.

    He spoke at the Nigerian Gas Association’s Business Forum in Lagos.

    Okunbor, who represented  Oil Producers Trade Section (OPTS) Chairman, Clay Neff listed some of the problems of the sector’s development to include gas producers debts, poor gas infrastructure, insufficient funding and lack of a conducive business environment.

    The Shell boss regretted that though Nigeria has  proven gas reserves of 181 trillion standard cubic feet (tscf) as at last year, in excess of oil, the resource is being underutilised as output of gas acreages producing, or being developed is  about 46tscf, reflecting just a quarter of available volume.

    Okunbor, who spoke on “Re-evaluating the development of the Nigerian gas industry: A prerequisite for re-energising and maximising its potential,” said as  a country that has the largest proven gas reserves in Africa, the level of exploitation is very low compared to some African nations that have much less reserves.

    He told The Nation on the sideline that the solution to the challenge, lies in “repaying outstanding gas invoice arrears,” adding: “without the assurance of repaying gas invoice arrears, investors will be reluctant to commit additional investments to grow domestic gas production.

    “It is vital to settle outstanding debts and establish bankable credit support facilities for future gas sales,” he said.

    In addition, he said: “Developing adequate gas infrastructure is critical. Infrastructure remains inadequate along the value chain. Pipelines to deliver gas to off-takers for power generation and other users are important. Therefore, there is need to attract investment in infrastructure development, unbundle the Nigeria Gas Company (NGC) into separate pipeline and gas marketing companies, and complete the critical National Integrated Power Project (NIPP) transmission lines.

    He said ensuring sufficient funding is vital, pointing out that unresolved Joint Venture (JV) funding issues limit gas development and production. He said due to the persistent shortfall in funding, viable new projects could not make progress, adding that there was need to implement sustainable solutions which will fully fund the JV budgets, including gas.

    He also noted the importance of providing an enabling commercial and fiscal terms, stating that with such terms, gas prices and fiscals must be competitive to appropriately cover development, production and transportation costs and make commercial returns possible.

    He said this would promote willing-buyers and  willing-seller market place. It would also ensure a power tariff level that provides a commercial return. Government should set globally competitive fiscals for gas, he said.

    On conducive business environment, Okunbor said such environment was essential to attract investments and have reliable operations, with efficient and effective regulatory bodies.

    He said the government should maintain stable laws and policies, maintain Nigeria’s reputation for honouring contracts, and eliminate structural factors that increase costs as well as ensure security of life and property.

  • Why Niger Delta is polluted, by Shell

    Why Niger Delta is polluted, by Shell

    Oil giant Shell Petroleum Development Company Limited (SPDC) has blamed crude oil theft, sabotage and illegal refining for about 85 per cent of the oil spills from its pipelines last year. These incidents, it said, were the main causes of pollution in Niger Delta.

    These are contained in Shell’s last year’s Briefing Notes, highlighting the firm’s activities at the end of each financial year. It said 25,000 barrels of oil were stolen from the firm last year.

    SPDC listed other problems as insecurity in the Niger Delta, criminality, threats from militants, violent host community agitations and offshore piracy. Others are armed robbery and kidnapping for ransom, crude oil theft, and damage to oil and gas facilities. It said  oil and gas operations in parts of the region are severely impacted by the oil bearing criminalities.

    “Theft of crude oil on the pipeline network was 25,000 bopd in 2015, which is less than the 37,000 bopd in 2014. The number of sabotage related spills declined 93 incidents compared with 139 in 2014. In 2015, the decrease in theft and spills was also in part due to divestments in the Niger Delta. However, theft and sabotage are still the cause of 85 per cent of spills from SPDC Joint Venture (JV) pipelines.

    “A key priority for Shell globally is to achieve the goal of no spills. Regrettably, in addition to spills caused by criminal activity, there were 16 operational spills of more than 100kg in volume from Shell Companies in Nigeria (SCiN) facilities during 2015. This number is less the 38 spills in 2014, partly due to divestments but also reflecting continued progress on preventing operational spills. The total volume of oil spilled in operational incidents also fell to 0.2 thousand tonnes from 0.3 thousand tonnes in 2014,” SPDC added.

    SPDC JV noted that to reduce the number of spills, it would implement its work programme to appraise, maintain and replace key sections of pipeline. Forty-two kilometres of flow lines and 12 kilometres of pipelines were installed in 2015 bringing the total distance of pipelines replaced over the last four years to more than 900km.

    It said last year it sustained surveillance efforts on the SPDC JV pipeline netweek to ensure that spills were discovered and responded to quickly. There are also regular over-flights to detect new theft points and we implemented anti-theft protection mechanisms on key equipment, it added.

    “In 2014, the SPDC JV signed a series of agreements with communities in Ogoniland, which has seen some of the highest rates of theft in recent years, using the Global Memorandum of Understanding (GMoU) model. Under these GMoUs, the SPDC JV provides funding to support unarmed community patrols which report incursions and suspicious activity directly to the forces.

    “The SPDC JV also works with communities and civil society across the Niger Delta to build greater trust in spill response and clean-up processes. The principal non-governmental organisation (NGO) coalition in the Niger Delta, the National Coalition on Gas Flaring and Oil Spills in the Niger Delta (NACGONDI) is invited to join joint investigation visits to spill incidents,” it said.

  • Shell spends $195.5m on social investment in Nigeria

    Shell spends $195.5m on social investment in Nigeria

    The Managing Director, Shell Group of Companies in Nigeria, Osagie Okunbor, yesterday said the group spent no less than $195.5 million on social investments in the country last year.

    Okunbor, who is also Shell Country Chair, disclosed this in an interactive session with reporters in Lagos.

    He said the amount made Nigeria the largest concentration of social investments spending in the Shell Group.

    He said that $145.1million of this amount was paid to the Niger Delta Development Commission (NDDC) as required by law.

    “Another $50.4 million was expended on social investment projects by the Shell Petroleum Development Company of Nigeria (SPDC) Limited operated by Joint Venture and Shell Nigeria Exploration and Production Company (SNEPCo).’’

    According to Okunbor, these spend-levels have not come about by accident.

    “Shell and its partners believe they can make a real difference in the lives of Nigeria, and we have targeted our investments at the community and enterprise development, education and health.

    “Of course, we cannot take the place of government but we are keen to play our part in the development of a country we’ve been part of for more than 50 years,’’ he said.

    The country chair said that the Shell Group would continue with its contributions to developing the country’s human and contracting capacities.

    He said that $900 million had also been spent on local contracting and procurement.

    According to Okunbor, ownership of key assets such as rigs, helicopters and marine vessels is a key focus of these efforts to support Nigerian community contractors?.

    He said that Shell Companies in Nigeria were also actively involved in the development and utilisation of natural gas, pioneering its production and delivery to domestic consumers and export markets.

    “Although, the SPDC JV’s market share of domestic gas has reduced through a series of divestment since 2010.

    “This has enabled Nigerian companies to play a more strategic role; Shell companies still remain a crucial part of the national gas energy mix.

  • Shell mulls $30b yearly investment

    Shell mulls $30b yearly investment

    The Royal Dutch Shell yesterday said its yearly capital investment will be between $25 billion and $30 billion from this year through to 2020.

    Its Chief Executive Officer, Ben van Beurden stated during the firm’s 2016 capital markets with  Re-shaping Shell to create a world class investment case’as its theme.

    He said: “Capital investment will be in the range of $25-$30 billion each year to 2020, as we improve capital efficiency and ensure a more predictable development funnel for new projects. Investment for 2016 is expected to be $29 billion, excluding the purchase price of BG, some 35 per cent lower than the pro-forma Shell-plus-BG level in 2014.

    “In the prevailing low oil price environment we will continue to drive capital spending down towards the bottom end of this range; or even lower if needed. In a higher oil price future we intend to cap our spending at the top end of the range.

    “New project start-ups since end-2014 should contribute some $10 billion of annual cash flow by 2018. Investment delivers new, profitable projects for shareholders.

    “Programmes to sustainably reduce operating costs are in place across the company; we expect to reach a run-rate of $40 billion of underlying operating costs at the end of 2016, some 20 per cent lower than the 2014 pro-forma level for Shell-plus-BG with potential for further cost reduction.”

    He noted that asset sales, as planned, are expected to be $30 billion for 2016-18, adding that “we have earmarked up to 10 per cent of Shell’s oil and gas production, including five to 10 country exits, for disposal. We expect to make significant progress on the first $6-8 billion of this programme in 2016.”