Category Oil & Gas

LPG penetration: FG gives marketers 2 months to weed out illegal retailers

LPG
By Edith Ike-Eboh
Abuja, Feb. 6, 2020(NAN) The Department of Petroleum Resources (DPR) has given marketers two months to weed out illegal retailers of Liquefied Petroleum Gas (LPG) also known as cooking gas for the safety of lives and property in the country.
Mr Abubakar Buba, Abuja Zonal Operations Controller, disclosed this at the DPR 2019 Annual Stakeholders’ General meeting, held in Abuja, on Thursday.
The theme of the meeting is “Safety awareness as a panacea to accident free operations in the oil and gas sector”.
Buba said that the DPR and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) had agreed that the union must ensure that all illegal retailers were weeded off the system.
According to him, the agreement takes effect Feb. 6.
“Yes, we have this understanding effective today, we agreed that they are going to flush out all the unregistered retailers that are all over Abuja and the country at large.
“We also agreed that the ones that are going to regularise will come and regularise within these two months, so that they get their licence.
“The union and the Nigeria Security and Civil Defence Corps (NSCDC) have agreed that they are going to flush them out completely,” he said.
He noted that the DPR also agreed with the union to sensitise its members to the dangers of illegal retailers of LPG in uncertified environment.
He reassured that the DPR was ready to issue licences to those who were willing to regularise or register their businesses after due compliance to the policy.
“Site suitability is very important for LPG retail,” he said.
Commenting on the meeting, Buba, said that the theme of the meeting was apt considering the recent happening in the country and the need for safety in the oil and gas sector.
“The Department has noticed during routine inspections that some companies make use of untrained attendants or use unaccredited vendors to train their attendants.
“This is unacceptable and I will like to use this opportunity to advise that only accredited vendors can be used for such training,” he said.
According to him, the need to enforce safety in the system remains paramount to the DPR.
He said that the Department would soon launch an initiative called Minimum Industry Safety Training for Downstream operators (MISTDO).
This, he said, was part of initiatives to improve the safety of lives and property in the downstream operations in the industry.
Mr Alexendria Stephen, Principal Organising Secretary of NUPENG , said that the group identified the issue of safety while in discussion with the DPR as a major concern to both the public and the operators.
“So, we have agreed that there are quacks amongst those in the business, who because of loss of jobs in the informal sector came to join the business.
“Those people require training but where they locate their facility is not licensed by DPR; we know them and we have agreed with DPR to assist in getting those people off the streets.
“We have asked for time, our suggestion is to give us three months but DPR is insisting that two months should be enough to achieve that.
“But the bottom line is to start first, wherever we get to in two months we will let them know,” he said.
In his remarks, Mr Sarki Auwalu, DPR Chief Executive Officer, said that DPR was committed to ensuring effective management of the value chain through facilitating a safe, secure and enabling business environment.
He said this would ensure sustainable development of the sector in a professional, accountable and transparent manner.
He noted that Nigeria with its population needed to exploit existing business options and continue to create new business values.
“This is the reason for this year’s theme which is of immense importance.
“It is not only apt but indeed timely and relevant to contemporary developments in the industry,” he said.(NAN)
ENO/MAM/DCU
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Edited by Modupe Adeloye/Donald Ugwu

Investor
By Edith Ike- Eboh
Abuja, Dec. 10, 2019 (NAN) Mr Godwin Izomor, the Managing Director, MG Vowgas Group has called on President Muhammadu Buhari to remove the power sector from the exclusive list to ensure improved electricity supply.
Izomor made disclosed this after a facility tour of MG Vowgas Fabrication yard in Port Harcourt to mark the end of the 2019 Practical Nigeria Content Forum.
The News Agency of Nigeria (NAN) reports that MG Vowgas is an Indigenous fabrication company dealing in Engineering, Procurement, Construction and Installation (EPCI) servicing the oil and gas and marine sectors of the economy.
He said that there was an urgent need to unbundle the nation’s power sector for improved power supply to drive businesses.
He noted that if there was regular power supply, many businesses would thrive and jobs created for the huge youth population.
“The first thing the government of Nigeria should do is to remove power sector from the exclusive list for local companies to start investing in different localities.
“When the power generation is removed from the exclusive list, you will see investors taking every aspect of the country.
“You will see investors coming. Nigeria is a huge country and a huge economy that anybody is ready to invest and power is one of the key areas.
“Nigeria must unlock the power sector for investors to come. If they did not unlock NITEL, nobody would have had GSM up till now.
“So, we have to break the power sector for businessmen to come in to invest. That is the only way we can achieve power generation in Nigeria.
“If anybody tells you that you have to award contracts for transmission lines and power generation that Nigeria will get power in the next 20 years, it is a lie,” he said .
He said that government must create enabling environment for investors to come into the country to invest.
According to him, with enabling environment, businesses will thrive, economy will grow, revenue generation will increase and jobs will be available for all.
Izomor said that his company spent so much to fund six megawatt of power to power the fabrication yard.
He said if there was adequate power supply, the money could be invested in other areas that would help boost the economy.
“ If we have a standard generating system in Nigeria, the money I am spending in providing power to run this place would have been part of the money we would have used to create jobs for the economy,” Izomor noted.
He said that MG Vowgas was collaborating with Schneider Electric, a French multinational corporation specialising in electrical equipment, to support power generation in the fabrication yard.
Izimor reiterated the need for government to encourage the private sector to invest in power generation. (NAN)
ENO/JCE
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Edited by Chukwudi Ekezie

Insecurity
By Edith Ike- Eboh
Abuja, Dec. 10, 2019 (NAN)  Mr Godwin Izomor,, the Managing Director of  MG Vowgas Group, says insecurity remains a major hindrance to the growth of indigenous firms.

Izomor spoke in an interview with News Agency of Nigeria (NAN) in Port Harcourt after the  2019 Practical Nigeria Content Forum, adding that many companies spent huge sums  to ensure security of staff and property in locations.

MG Vowgas is an Indigenous fabrication company dealing in Engineering, Procurement, Construction and Installation servicing the oil and gas and marine sectors of the economy.

He said insecurity discouraged local and international investors from investing in the country.

“The challenge of security is massive, we spend money even going to the location where we work, we spend heavy money on security.

“ Where I am working in Agip we have two gunboats and 15 personnel, in Chevron, we have two gunboats and 15 personnel.

“ So, constantly we are spending and those things are not cheap,’’ he said.

Izomor noted that MG Vowgas Group spent more money on security than payment of staff salaries every month.

“ What I pay my workers is about N53 million monthly while my expenses for security is almost N50 million every month,’’ he said.

He called on government to ensure improved security in the country to help both indigenous companies to grow and attract foreign investors.  (NAN)
ENO/JCE
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Edited by Chukwudi Ekezie

Vowgas
By Edith Ike-Eboh
Abuja, Dec. 10, 2019 (NAN) MG Vowgas Group will launch the first made in Nigeria fabricated airboat before the end of January 2020, the Managing Director, Mr Godwin Izomor, has said.

Izomor made the disclosure in an interview with News Agency of Nigeria (NAN) after a tour of the fabrication yard in Port Harcourt.

MG Vowgas Group is an Indigenous fabrication company dealing in Engineering, Procurement, Construction and Installation (EPCI), servicing the oil, gas and Marine sector.

He said that the company was working with the research department of the Ministry of Defence for the fabrication of the boat.

He noted that everything about the airboat was constructed in the country.

“Presently, we work with the research department of the Ministry of Defence to build the first made in Nigeria airboat.

“The air boat has the capacity and speed of 100km per hour and it will use the propeller that is used for airplanes to power it.

“ Between now and January we are going to launch it and we will be inviting the Chief of Army Staff to come and commission it,’’ he said.

On construction of the made in Nigeria modular refinery, he said that the project would be top priority of the company in 2020.

“We are concentrating as from next year, building the first modular refinery. That is one. Two, we are going to invest heavily with our partners in shipbuilding.

“Our partner is considering whether Bonny has the land mass for that investment, and our investors are considering that too.

“Then secondly,  Brass has a lot of land for us to play with. We are going to compare which one is the best place suitable for us because we must reduce capital  flight for us here in Nigeria,’’ he said.

He appealed to the Federal Government to hasten the revival of Ajaokuta Steel Company to help in the fabrication and construction works in the country.

“We make so much money but we import almost everything we use. We fabricate everything from steel. The steel we use today is imported either from China, Ukraine or Germany.

“We cannot continue as a country, it’s a huge amount of money that is being shipped out of the country.

“The annual expenses we use to import steel into this country are  enough to set up another steel company in Nigeria.

“So, we must encourage the Federal Government to make sure that in the next one or two years,  Ajaokuta Steel Company is fixed to produce healthy sheet plates for our fabrication,’’ he said. (NAN)
ENO/JCE
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Edited by Chukwudi Ekezie

NNPC seeks support in curbing oil pipelines vandalism

Vandalism

By Solomon Asowata

Lagos, Dec. 9, 2019 (NAN) The Nigerian National Petroleum Corporation (NNPC)  on Monday called on Nigerians and security agencies to join its effort at  curbing the menace of oil pipeline vandalism in the country.

Mr Adeyemi Adetunji, NNPC’s Chief Operating Officer for Down Stream Operations made the appeal during an inspection visit to the scene of a recent pipeline fire incident at Peace Estate, Baruwa, in Idimu axis of Lagos on Monday.

The News Agency of Nigeria (NAN) reports that an explosion occurred on Dec. 5  in the swampy area after some suspected pipeline vandals disrupted the Atlas Cove-Mosimi Pipeline, part of the System 2B Pipeline.

” We are here this morning from NNPC to assess the fire of Dec. 5 at Baruwa village, and what we have  seen is that the fire was put out within 24 hours.

“We thank the various agencies of government, the Lagos State Fire Service, the Nigeria Security and Civil Defence Corps, Nigeria Police and Oilserv, our contractors on the line.

“Everybody came here and joined hands together to put off the fire, and we have resumed pumping of products to Mosimi and Atlas Cove since yesterday.

“So, everything is now under control. We have enough products, so there will be no fear of any scarcity during the Yuletide and beyond,’’ he said.

Adetunji said that some arrests had been made in connection with the vandalism, and  investigation was ongoing.

The NNPC official also said that the particular location had become exposed to pipeline vandalism in the past, as the location last year experienced two fire incidents.

“Last year, there was fire outbreak twice in this Baruwa area, and this year, we have had incidences in November and December.

“So, this area is prone to pipeline vandalism. We are doing our best in NNPC to ensure we have security, adequate maintenance and look at our right of way in terms of pipeline integrity.

“We are appealing to the residents here, community leaders and religious leaders to ensure that they also protect our pipelines.

“These are national assets and must be protected by all Nigerians. Security is for everybody and if you see something, say something,’’ he said.

Adetunji  said that the NNPC would continue to sensitise communities and Nigerians on the danger of pipeline vandalism, adding that it was prepared to also listen to useful  suggestions.

Mr Aloga Ogbogo, the Executive Secretary, National Association of Road Transport Owners (NARTO), said that the  protection of  pipelines should be the responsibility of everybody.

“Anybody who tampers with such critical infrastructure should be apprehended and prosecuted.

“NARTO as an organisation will continue to kick against pipeline vandalism because apart from sabotaging the economy, it also creates artificial scarcity of products,’’ Ogbogo said.

The Chairman of Peace Estate Community Development Association, Mr Omojowo Adedeji, decried the nefarious activities of the vandals.

Adedeji said the community was ready to work with the NNPC and security agencies in curbing activities of oil pipelines vandals in the area.

He also enjoined the NNPC management to clear the swampy areas, to improve visibility and safety of the pipelines. (NAN)

ASO/AVU/SOA
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Edited By Victor Asije/Oluwole Sogunle

Wabote lists benefits of NLNG Train 7

By Edith Ike-Eboh

Abuja, Dec. 7, 2019 (NAN) The Executive Secretary, Nigeria Content Development and Management Board (NCDMB), Mr Simbi Wabote, has said the upcoming Nigerian Liquefied Natural Gas (NLNG) Train 7 will boost revenue generation.

Wabote gave the assurance in an interview with the News Agency of Nigeria (NAN) at the just-concluded 9th Practical Nigeria Content Forum in Bayelsa on Saturday.

NAN reports that NLNG would take Final Investment Decision (FID) on Train 7 before Dec. 31st.

“To the Nigerian economy, as you are aware, it will bring more revenue to the country; more taxes would be paid and, to the economy, it means a lot.

“To Nigerians, it also means a lot. It means creation of jobs. As you have heard, we will have about 10,000 direct jobs that will be created as a result of the Train 7 project.

“What that translates to is almost 40,000 indirect  jobs that would be created,’’ he said

According to him, Train 7 will rejuvenate the economy.

He said that a lot of upstream projects would also come up as a result of the project.

Wabote said that a lot would be expected in terms of activities in the economy, employment, revenue generation and ending  restiveness in the Niger Delta.

On legislation to extend local content to other sectors for economic growth and development, he said the idea would not allow proliferation of regulatory agencies in all sectors.

Wabote said that there would be no local content board for construction and another for Information and Communication Technology (ICT).

He said that the legislation on local content for the sectors would be under one umbrella with different divisions  in charge of each sector.

Wabote added that a division would be in charge of construction, another ICT and oil and gas,  among others.

“That way, you have one body responsible for regulation, but each of those divisions has their peculiarities,’’ Wabote said.

He said that amendment of the Act would put into consideration the peculiarities of the sectors for easy implemention,  instead of creating an over-regulatory regime. (NAN)

ENO/ACA/IGO

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Edited by Chidinma Agu/Ijeoma  Popoola

Train 7
By Edith Ike-Eboh
Yenagoa,  Dec.4, 2019 (NAN) Nigerian Liquefied Natural Gas (NLNG) says it is 97 per cent ready to take Final Investment Decision (FID) on its capacity expansion project, the Train 7 project.

Mr. Tony Attah,, the Managing Director/Chief Executive Officer, Nigeria LNG Limited0,
disclosed this at the ongoing 9thPractical Nigerian Content in Yenagoa.

He said that the Train 7 project was expected to expand NLNG’s production capacity by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

” t peak construction, the Train 7 project is targeted to provide direct, indirect and induced employment of about 40, 000 jobs from the Nigerian Content Development and Monitoring Board (NCDMB), perspective, if looked holistically over the next six year window,” he said.

He warned that Nigeria risked losing its market share in the international gas market as well as dwindling gas export if it failed to make new investments in gas development.

“In LNG exports and market share by market, Qatar leads the chart with 78.7 Metric Tonnes, MT,  24.9 per cent, followed by Australia with 68.6MT,  21.7 per cent, while, Nigeria sits at 5th, with 20.5MT and 6.5 per cent.

“If we do not take new FID investments in Trains, Nigeria may continue to drop from 5th to 10th position by 2025.

“We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years, it is now time to fly on the wings of gas.

“Our vision is to be a global LNG company helping to build a better Nigeria. We have four shareholders, government with 49 per cent of the company with NNPC as it representative, Shell 25.6, Total 15 per cent and Eni 10.4 per cent.

“This year we celebrate our 30^th anniversary, and 20 years of safe and reliable operation in the Niger Delta.

“We believe that gas will continue to be a strong part of the energy mix in Nigeria.

“Today we have 11 billion dollars asset base. We have six LNG trains with 22mtpa capacity. We have 23 ships going round the world,” he added.

He said added that the company had delivered over 4700 LNG cargoes across the world and  reduced gas flaring by 65 per cent lay down to less than 20 per cent.

“Nigeria is now number seven in terms of gas flaring across the world. Russia remains number one, even the U.S. is at number four on the list.

“We are the highest tax payer in Nigeria with eight billion dollars tax. The company is 100 per cent Nigerian management and 95 per cent Nigerian staff.

“The next big deal for capacity building for Nigeria through NCDMB is the NLNG Train 7,” he said. (NAN)
ENO/NN/JCE
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Edited by Chukwudi Ekezie