Category Oil & Gas

Changes

By Edith Ike-Eboh
Abuja, Feb. 12, 2020 (NAN) Mr Sarki Auwalu, the Director, Petroleum Resources, Department of Petroleum Resources (DPR) says the downstream oil sector will in the next few years witness changes with government’s commitment to drive business.

Awalu disclosed this at the ongoing Nigeria International Petroleum Summit in Abuja, on Wednesday.

He spoke as the guest speaker during the Downstream and Investment forum at the summit.

According to him, the downstream industry requires new thinking to achieve the goals needed to drive the sector for growth and development.

He said that with the upcoming modular and mainstream refineries, local refining would be imminent thus bringing change to the downstream stream oil sector

The director noted that the government was looking at ways of making domestic refining of crude in the country possible.

“The efforts of the DPR as a regulator to reduce import of crude can be seen in the upcoming of some refineries and modular refineries.

“Domestic refining in two years from now will supersede the consumption in the country.

“The downstream will witness unprecedented changes in few years,’’ he said.

Auwlau said that government was supporting all efforts to ensure that business in these areas thrive with creating enabling environment.

He added that the closure of the nation’s borders had helped to know the actual daily consumption rate in the country.

“The ministry is also looking at alternative source of energy with the Compressed Natural Gas (CNG) to bring a change on energy demand.

“This year has been declared the year of Gas and we know that gas is cheaper and it will help to bring about change on the value chain,’’ he added

He noted that East West gas pipeline expansion project and the Ajaokuta Kaduna Kano (AKK) gas pipeline project were among the government’s project that would also help drive the downstream oil sector.

“The Nigeria gas Transportation code inaugurated few days ago will help open access to the downstream, create opportunities and wealth,’’ he added.

He assured Nigerians that government would continue to look at major issues like uncertainty in pricing and multiplicity of regulations and ways to resolve them.

This, he said would help to drive the downstream sector for change. (NAN)

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Edited by Nick Nicholas/Ese E. Ekama

Has
By Edith Ike-Eboh
Abuja, Feb. 11, 2020 (NAN)The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, said that by June, the oil industry would have a clear fiscal landscape for operators to be able to plan.

Kyari made this known at a breakout session for Chief Executive officers in the industry  at the on going Nigeria International Petroleum summit in Abuja, on Tuesday.

He spoke on ” Investment to achieve economic sustainability. ”

He said that the need for a new fiscal framework work was imperative adding that operators should be willing to embrace changing laws.

Commenting on renewable energy, he said that Nigeria’s drive towards transiting to renewable and green energy would be frustrated by the epileptic power situation in the country.

He argued that discussions around encouraging the use of renewable energy should also focus on providing alternatives to addressing the epileptic power situation in Nigeria and across Africa.

“We have to resolve the issue of electricity so that we can talk about the renewables in the future; so that we can reduce the use of fossil fuels that has high impact on the environment.

” However, we believe that with time, there would be less consumption of fossil fuels.

“For us here, as a country, what we need to do is to transit into getting power to our homes, to our industries, to take advantage of the enormous gas resources that we have in this country.

” Over 200 trillion standard cubic feet of gas, which everybody knows; but we know that in the books, there are potentials for additional 600 trillion and growing.

“This is an asset that we have and which we can rely on to build and develop this country. To take gas to the export market, and particularly, to develop our domestic market,” he said

According to him, doing this means bringing prosperity to West Africa, as 70 per cent of West African resides in Nigeria.

Also speaking, President, Nigerian Gas Association, Mrs Audrey Joe-Ezigbo, said that the current uncertainty in the gas sector was not attractive to investors.

She said that there was need to fix the infrastructural challenge in the gas sector by encouraging investment inflow.

She added that the funds needed to fix the infrastructure would not be attracted through removal of profit motive.

She called for a better commercial framework to encourage investment across the gas value chain, adding that the government had to do more to ensure that illiqudity in the gas sector was addressed and in good time too.

Chief Executive Officer of Chevron Nigeria, Mr Jeff Ewing, said that the company was working with the NNPC to deliver cleaner diesel from its Escravos Gas to Liquid, EGTL, plant to the Nigerian market.

He, however, noted that because the Nigerian market was used to darker diesel colour, the company would be adding colour to the diesel.

He added that the company had significantly reduced its gas flaring activities, noting that it would bring about an increase in supply of gas to the domestic market.

However, Chief Executive Officer of Lekoil, Mr Olalekan Akinyanmi, called for a relaxation of standards for Africa, in terms of carbon emission, arguing that Africa should be allowed to grow its economy using fossil fuels as was the case with other regions of the world.

“Other developed parts of the world had grown using fossil fuels and now that it is Africa’s turn, the world is saying we should stop using fossil fuel.

” During these periods of their development, Africa paid for others, so I believe the standards should be relaxed for Africa,” he noted. (NAN)
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edited by Sadiya Hamza

Grant
By Edith Ike-Eboh
Abuja, Feb. 11, 2020 (NAN) The Federal Government and United State Trade and Development Agency have signed a 1.1million dollar grant to support electricity infrastructure development in Nigeria.

The agreement was signed at the ongoing Nigeria International Petroleum Summit in Abuja, on Tuesday.

The theme of the summit is :Widening the integration Circle :Technology, Knowledge, Sustainability Partnership.

Mr Thomas Hardy, Director, U.S Trade and Development Agency said that the agency was proud signing the grant with Nigeria.

He said that the grant was another demonstration of the American government’s commitment to ensuring infrastructural development across the globe.

“Nigeria is the largest population in Africa and we are proud investing in the energy sector in the largest African nation to provide power to the rural communities,” Hardy said.

He added that the grant would be used for feasibility study of the Independent Power Projects (IPP) and other infrastructure development in the energy sector.

“The grant is part funding for the NNPC Abuja IPP modelled to generate 1,350 mw,” he said

According to him, the money will be released in tranches depending on the particular project in the sector.
He said that General Electric (GE) would provide all the technology for the IPP project.

Hardy reiterated the agency’s commitment to partner with Nigeria to ensure electricity was accessible to all Nigerians.

In his remarks, the Group Managing Director of the Nigerian National Petroleum (NNPC), Malam Mele Kyari, said that the Nigerian energy deficiency could be corrected with partnership among stakeholders.

He said the grant would help to ensure that power was delivered to Nigerians for economic growth and development.

He said that the NNPC and the oil and gas sector had all it takes to deliver power with relevant framework in place.

According to him, gas remains the cheapest source of power and efforts must be made to stop flaring it in the country.

” We have gas in abundance, we must create infrastructure that will help create gas for power generation.

” We need power to create jobs and we must create prosperity, so that we can have peace in our country.

” We are grateful for this grant,” he said.

Also, the U.S. Ambassador to Nigerian, Ms Mary Leonard, said the grant would help to open up the energy sector in the country.

” The grant will provide the in depth technical economic and financial analysis necessary to develop a major new source of energy and exciting one thousand three hundred fifty megawatt natural gas power plant here in Abuja.

” I am excited about this project for many reasons, the first is what successful completion of this project would mean for the greater prosperity of Nigeria. Egerius gas reserves have to date been largely untapped.

“Creating an incredible opportunity for additional production, increased domestic utilization and eventually export to the global marketplace.

” when completed this power plant will take advantage of this new domestic resource and help address Nigeria’s existing critical energy needs,” she said.

The envoy noted that the project demonstrated the U.S. government’s commitment to strengthening Nigeria’s energy sector and the partnership with the government of Nigeria.

‘The project will join dozens of other high profile energy sector projects that the U.S. TDA is supporting across the country.

” In addition to numerous meaty greed and off grid solutions,’ she added

News Agency of Nigeria (NAN) reports that Leonard signed on behalf of the U.S. and KyarI signed for the Federal Government. (NAN)
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Edited by Bayo Sekoni/Sadiya Hamza

Aiteo
By Edith Ike-Eboh
Abuja, Feb.10, 2020 (NAN) The Group Managing Director, Aiteo Eastern Exploration and Production Company Limited, Mr Victor Okoronkwo said robust fiscal framework was key to boosting investors’ confidence in the oil, gas sector.

Okoronkwo disclosed this while delivering a goodwill message at the ongoing Nigeria International Petroleum Summit, in Abuja, on Monday.

The theme of the summit is: “Widening the integration circle: Technology, Knowledge, sustainability partnership”.

” The imperative of success is depending on other factors like creating a stable operating environment as well as establishing robust regulatory and fiscal frameworks.

“Key energy industry reforms will be critical in boosting investor’s confidence and attracting otherwise elusive investments into Nigeria.

” To put our current reality into perspective, in 2018 the Foreign Direct Investment to Africa rose 11 per cent to 46 billion dollars,” he said.

According to him, the FDI to Nigeria shrunk, 43 per cent to 2 billion dollars whilst Ghana received 3 billion billion. (ref. world investment report 2019).

“This is in contrast to the vast hydrocarbon resource base. Nigeria is blessed with (largest oil and gas reserves in Africa),” he said.

He expressed hope that deliberation at the summit would ponder on the burning issues.

” It is my firm belief that we will ponder on these burning issues with a view to articulating holistic solutions, the bedrock upon which the survival of our great country is hinged upon,” he added.

Also, the Director of Petroleum Resources, Mr Sarki Awalu said the summit remained an important assembly for the sector.

He said that the summit would give opportunity for stakeholders to synergize and proffer solutions to challenges of the oil and gas sector.

” I am confident that the summit will achieve its objectives and will also articulate some of the issues raised by industry players,” he said.

Also, Mr Simbi Nwabote, Executive Secretary, Nigeria Content Monitoring Development Board (NCMDB) said that the summit had opened up so much opportunities for both local and international companies.

He assured stakeholders that the board was ready to give all support to industry players to drive growth and development.

” Nigeria is open for business and our government is committed to it,” he said

News Agency of Nigeria (NAN) reports that NIPS is an annual Nigerian oil and gas conference.

The 2020 edition, which is the third in the series, had Ministers of Energy from Congo and Equatorial Guinea, OPEC, International and local oil companies among others in attendance. (NAN)
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Edited by Josephine Obute/Felix Ajide

NLNG offers 55% of procurement for Train 7 execution to Nigerians

NLNG
By Edith Ike-Eboh
Abuja, Feb. 10, 2020 (NAN) Mr Tony Attah, Managing Director, Nigerian Liquefied Natural Gas (NLNG) said that 55 per cent of all procurement for execution of the Train 7 project would be undertaken by Nigerian vendors.
Attah disclosed this at the ongoing 3rd Nigeria International Petroleum Summit (NIPS), in Abuja on Monday.
The theme of the summit is: “Widening the integration circle: Technology, Knowledge, sustainability partnership’’.
“The very quick wins from Train 7 project for Nigeria is the creation of jobs for our teeming youth, netting up to 12,000 direct jobs at the construction phase and the associated skills acquisition through technology transfer.
“Riding on the back of a robust Nigerian Content plan endorsed by the Nigerian Content Development Monitoring Board (NCDMB), 55 per cent of the Engineering activities for Train 7 will be carried out in-country
“Fifty-five per cent of all procurement for execution of the project will be undertaken by Nigerian vendors.
“100 per cent of the installations and construction will happen in Nigeria and the entire project will attract huge Foreign Direct Investment to the Nigerian economy,” he said.
Represented by the General Manager Production, Mr Adeleye Falade, he said that other benefits of train 7 included the emergence of upstream and other associated projects that would bolster the economy.
“With conversations like the ones we are having here at NIPS, there is no doubt that we can all build synergies that should propel Nigeria LNG to sustain its winning streak and support the emergence of new LNG suppliers in the country and the continent at large.
“Our motivation to build and operate Train 7 is heightened by the proven success recorded by Nigeria LNG in the past 20 years of operation,’’ he said.
On hazards, he said that at the current state the company had significantly reduced the environmental hazards arising from gas flaring.
“To date, the company has converted about 191.5bcm (billion standard cubic metres) or 6.8cf (trillion cubic feet) of Associated Gas (AG) to Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs),’’ he said.
According to Attah, the feat has reduced gas flaring by Upstream Companies from over 60 per cent.
“ln the past 20 years, Nigeria LNG has resiliently maintained top rating as a significant player and the 5th major supplier of global LNG with the export of over 4,500 LNG cargoes delivered safely worldwide.
“The addition of Train 7 to our current six-train plant will add another eight million metric tons of LNG to the current sustained 22 million metric tons production capacity of our plant.
That, he said, would keep Nigeria prominently on the list of the top 7 suppliers of global LNG.
“This is an enviable position for an African country to achieve in the face of our evolving technological advancement on cleaner energy,” he added
He noted that Nigeria’s growing response to the demand for cleaner energy sources to power the world had accentuated the critical role that the premium crude oil and natural gas resources played in that space.
He noted that the focus of this year’s conference was a pointer to the fact that Nigeria and Africa continent were conscious of the need to strategically harness all those elements.
“They will certainly give us an edge to maximally benefit from the volatile and highly competitive global energy sector,” he added. (NAN)
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Edited by Ifeyinwa Okonkwo/Donald Ugwu

Investors

By Edith Ike-Eboh
Abuja, Feb. 10, 2020 (NAN) President Muhammadu Buhari has reassured international investors that their investments in Nigeria are safe.

Buhari gave the assurance at the ongoing Nigeria International Petroleum Summit (NIPS) in Abuja, on Monday.

The summit which is the 3rd edition has as its theme: “Widening the Integration Circle: Technology, Knowledge, Sustainability Partnership’’.

Represented by the Secretary to the Government of the Federation Mr Boss Mustapha, he said that Nigeria as an oil producing nation remained ready and accessible for legitimate investment from all interested countries, individuals and partners.

“Let me assure foreign delegates that their investments are well secured in Nigeria and a high return on investment is always guaranteed.

“It cannot get better anywhere,” he said

He added that towards achieving the realisation of a safe and secure investment environment, his administration had taken steps to reposition the oil and gas sector.

The steps, he said include improving the business environment and driving investments in the upstream, midstream and downstream, reviewed and gazette policies and regulations to enhance operations in the sector.

Other steps are to enhance accelerated revolution by developing infrastructure for multi domestic utilisation of LPG and CNG, commence the process of commercialising gas flare.

The rest are to increase gas to power and improve Niger Delta security through capacity building and economic empowerment, enforcing transparency and efficiency in the sector by building capacity, enabling the use of IT and automation and entrenching performance management.

The president noted that increasing refineries production capacity, improving stakeholders management, international relations and bi-lateral coordination and Carry out extensive work for the passage of the Petroleum Industry Bill (PIB) was also among the steps .

The steps he added would open up the oil and gas sector to competitiveness.

In his remarks, the Minister of State for Petroleum Resources Chief Timipre Sylva said the Summit was one of those initiatives approved three years ago and had garnered global acceptability within a short period.

He said that the attendance from the African continent and other countries of the world in the first and second editions attested to the fact that the 3rd edition would definitely raise the bar.

According to him, over 45 countries are expected to be represented at the summit.

He thanked the President Muhammadu Buhari-led administration for its support to the Nigeria’s oil and gas sector and helping it to take its place in the global energy space.

“Since this administration came on board, you have demonstrated through personal example and conduct that whenever there is a will, there will always be a way.

“This is reflected in the enthronement of discipline, transparency and efficiency in the overall management of the oil and gas sector.

“This has also propelled your appointees to toe the line of probity and accountability by ensuring that your agenda, especially for the oil and gas sector is achieved,’’ he said.

He commended all delegates and participants, adding that NIPS remained a Pan African summit that must be sustained.

He noted that NIPS was designed as a meeting point in the oil and gas industry to introduce and harness new technologies and ideas.

This, he said would lead to development of new strategies that would attract and enhance inflow of foreign investments while improving success rates of indigenous business engagements.

“The Ministry of Petroleum Resources under the leadership of Mr President has the mandate to initiate policies for the oil and gas sector and supervise the implementation of approved policies.

“This, the Ministry had relentlessly pursued since this administration came on board.

“It is gratifying to note that the 1st and 2nd Editions of NIPS have already attracted a lot of goodwill to Nigeria as Africa’s foremost investment destination in the energy sector.

“This 3rd Edition of NIPS will live up to expectation as a truly world class event and promises to take Nigeria and Africa as a whole to the next level in oil and gas business,” he said.

He urged participants to come up with ideas that would help drive the sector in Nigeria and Africa at large. (NAN)
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Edited by Ese E. Ekama

Code
By Edith Ike-Eboh
Abuja, Feb. 10, 2020 ( NAN) The Federal Government has inaugurated a new Nigerian Gas Infrastructure Network Code (NGINC) to enhance gas production and revenue generation in the country.

The Minister of State for Petroleum Resources, Chief Timipre Sylva inaugurated the code at the opening of the Nigeria International Petroleum Summit (NIPS) in Abuja on Monday.

He said that the code would help to guide gas transporters and suppliers as 2020 had been declared the year of gas.

“On Feb. 10, the Nigerian Gas Transportation Network Code shall apply to all gas transportation arrangements between gas transporters and gas shippers as defined in the Code.

“The transporter and all existing users of the transportation network shall, within six months of the date of this Directive, migrate from existing Gas Transportation Agreements to the Network Code by executing the necessary Ancillary Agreements.

“All new and intending users shall make use of the network based on the terms and conditions provided in the Network Code.

“The Network Code remains the uniform protocol for users of the Gas Transportation Network and can only be modified in accordance with relevant provisions therein, the ancillary agreements are negotiated by the relevant parties,’’ he said.

The minister noted that the directives would be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance.

He reiterated the immense opportunities that Nigeria’s Gas Resource affords with our Gas Reserves position at 200.79 Trillion Cubic Feet (TCF) as at January 1, 2019.

According to him, the drive to optimally explore and produce the resource is driving government’s aspirations for energy security, economic diversification, job creation and enhanced revenue generation.

“Gas and its derivatives as envisaged in the National Gas Policy will surely catalyse our economic growth and the need for gas transportation infrastructure has to a large extent to be put in place for the sector to develop,’’ he added.

Sylva noted that the Network Code would guarantee open access to the Network, adding that the Code was a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for operation and use of the Gas Network.

He said that in line with government’s policy to reinforce and expand gas supply and stimulate demand through the National Gas Expansion Programme, the Code would provide open and competitive access to gas transportation infrastructure and development of the Nigerian gas sector.

“Also, the Code will stimulate the domestic gas market, drive gas-based industrialisation and the realisation of government’s aspiration to move 100 million Nigerians out of poverty.

“The Code in its current form has in-built modification mechanisms. Hence, all stakeholders are assured of the periodic review of the Network Code to suit the dynamics of the industry.’’ (NAN)
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Edited by Dorcas Jonah/Ese E. Ekama

Gas

by Edith Ike-Eboh

Abuja Feb. 9, 2019. (NAN) The Nigerian National Petroleum Corporation (NNPC) said that the daily average natural gas supply to gas-powered plants in November 2019 increased by 16.53 per cent to 645 mmscfd.

The Corporation disclosed this in its Monthly Financial and Operations Reports (MFOR) released in Abuja, on Sunday.

The increment, it said was equivalent to power generation of 2,178 MW.

It said that the October 2019 gas supply to power averaged 553 mmscfd to generate 2,050 MW.

It noted that national gas production in November 2019 stood at 228.65 billion Cubic Feet (BCF), translating to an average daily production of 7,621.68 Million Standard Cubic Feet per day (mmscfd).

“For the period November 2018 to November 2019, a total of 3,091.24 BCF of gas was produced, representing an average daily production of 7,882.27 mmscfd,” it said.

It added that a period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 69.50 per cent, 21.06 per cent and 9.44 per cent respectively to the total national gas production.

The report further revealed that out of the total volume of gas supplied in November 2019, 137.02 BCF of gas was commercialised, consisting of 35.29 BCF and 101.73 BCF for the domestic and export market respectively.

This, it said translated to a total supply of 1,176.40 mmscfd of gas to the domestic market and 3,391.04 mmscfd of gas supplied to the export market for the month.

It added that 59.91 per cent of the average daily gas produced was commercialised, while the balance of 40.09 per cent was re-injected, used as upstream fuel gas or flared.

The MFOR noted Gas flare rate was 8.29 per cent for the month under review, with 632.37 mmscfd, compared with an average gas flare rate of 8.80 per cent, i.e. 692.97 mmscfd for the period November 2018 to November 2019.

The report said an export sale of crude oil and gas of 504.44 million dollars was recorded in November 2019; indicating an increase of 4.39 per cent compared to the previous month.

According to the report, crude oil export sales contributes 383.89 million dollars (76.10 per cent) of the dollar transactions compared with 396.94 million dollars contribution in the previous month.

It added that the export gas sales amounted to 120.55 million dollars in the month under review.

It said that from November 2018 to November 2019 Crude Oil and Gas transactions indicated that crude oil & gas worth 5.46 billion dollars was exported.

On Pipeline vandalism, it noted that the corporation suffered 94 per cent increase in the cases of willful hacking and destruction of its pipeline infrastructure across the country.

It showed that 68 pipeline points were vandalized, representing about 94 per cent increase from the 35 points that were breached in October 2019.

The report stated that out of the vandalized points, 15 failed to be welded while only two pipeline points were ruptured.

A breakdown of the breach indicated that the Mosimi-Ibadan axis accounted for 31 per cent of the breaks, Atlas Cove-Mosimi network witnessed 19 per cent, while Ibadan-Ilorin and other routes accounted for 15 per cent and 35 per cent respectively.

The report noted that NNPC, in collaboration with the local communities and other stakeholders, would continuously strive to reduce and eventually eliminate this menace through effective collaboration.(NAN)

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Edited by Rabiu Sani Ali