Nigeria, Germany Enters Pact on Hydrogen Exploration Project

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10th September 2020

Nigeria and Germany have agreed to partner in the establishment of a hydrogen exploration project in West Africa.

West African Science Service Centre on Climate and Adapted Land Use

German Federal Research Minister, Anja Karliczek and her Nigerian counterpart Yahouza Sadissoun signed the agreement on behalf of their respective countries.

The agreement covered packages of measures to expand the hydrogen strategic partnership into West Africa.

This hydrogen partnership will work through the joint research centre the West African Science Service Centre on Climate Change and Adapted Land Use (WASCAL).

[Also Read] EU, Germany Launch Support for Nigeria’s Renewable Energy Development

The West African Science Service Centre on Climate Change and Adapted Land Use was established by the German Federal Ministry of Education and Research (BMBF) in 2021 as part of the German Federal Government’s Africa Strategy.

A total of 11 African countries – Nigeria, Benin, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Mali, Senegal and Togo are integrated into the WASCAL network and each country pursues regionally adapted research priorities based on different aspects of sustainable land management under the influence of land use and climate change.

The BMBF has assured continuation of the graduate school programme and a commitment to hydrogen as an energy carrier of the future.

Nigerian research minister Sadissoun said: “WASCAL and the BMBF have been working together successfully for almost ten years and have already enabled 200 young scientists to quality in ten interrelated topics on climate change, to support hydro-meteorological observations stations and to provide customised models and information for politics and local adaptation strategies to work.”

[Also Read] Hydroma Launches Industrial Production of Hydropgen-based Electricity in Mali

The WASCAL network has also launched a research biogas laboratory at Lomé University meant to deepen knowledge on climate change and its impact on land use in West Africa.

Karliczek explained that Germany sees Africa as a continent of opportunity and green hydrogen as the oil of tomorrow.

“I am therefore very pleased that we laid the foundation for a hydrogen partnership today. It holds great opportunities for everyone involved: for West Africa, for Europe and for Germany.”

“We launched an atlas of potentials on green hydrogen in West Africa and expert teams have started their work in the 15 ECOWAS countries. We want to publish the potential atlas by the end of the year,” explained Karliczek.

She said Germany wants to intensify the cooperation between her country and West African countries through the WASCAL network.

“This includes our successful graduate school programme, which has so far produced around 350 graduates in disciplines such as food security and water management.

[Also Read] Siemens Upgrades 105 Power Substations, Builds 70 New Ones in New Energy Deal

In addition, with the new construction of the WASCAL competence centre in Burkina Faso we will set up a high-performance research infrastructure of climate and environmental data,” said Karliczek.

Also last month, the BMBF launched the broader H2Atlas-Africa project in partnership with a consortium of various African research institutions to explore the potential of green hydrogen production from the vast renewable energy sources on the African continent.

The Southern African Science Service Centre for Climate Change and Adaptive Land Management a partnership between Angola, Botswana, Namibia, South Africa, Zambia and Germany will be doing exactly the same project, establish where hydrogen projects would be feasible on in the southern part of Africa.

By Chibisi Ohakah, Abuja

More Oil and Gas Industry News on Orient Energy Review.

Autogas: MOMAN Seeks Special Fund for Conversion of Vehicles

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Peace Obi

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10th September 2020

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Autogas: MOMAN Seeks Special Fund for Conversion of Vehicles

The Major Oil Marketers Association of Nigeria (MOMAN) on Wednesday urged the Federal Government to create a special fund to facilitate the conversion of more vehicles in the country from using petrol, otherwise known as Premium Motor Spirit (PMS), to autogas.

The Chairman of MOMAN, Mr Tunji Oyebanji, told the News Agency of Nigeria that the move would deepen gas utilisation in line with the objectives of the National Gas Expansion Programme (NGEP).

Oyebanji noted that creating an alternative source of energy for Nigerians was imperative especially as Nigerians grapple with increasing PMS prices due to the deregulation of the petroleum downstream sector.

He said, “For a car to start using autogas, it requires conversion switch which costs over N100, 000. Government should make funds available to assist car owners who want to switch to autogas.

[Also Read] Automobile Owners to Pay N250,000 for Conversion from Fuel to Autogas, FG Says

“The people doing the conversion will convert a certain number of cars and ask government for refund. Other countries have had deliberate policies to encourage use of gas and I know Bangladesh is one of them.”

According to him, government should look at the possibility of granting tax holiday to investors in gas facilities and also grant waiver on importation of gas equipment to accelerate the process.

He said that gas pricing should also be right to encourage switch by vehicle owners while domestic allocation to the market should be increased by the Nigeria LNG Limited (NLNG).

Oyebanji commended the government for inaugurating the NGEP chaired by Dr Mohammed Ibrahim, noting that it had already begun engagements with stakeholders, including MOMAN.

[Also Read] Deregulation Will Make Nigeria Become Refining Hub – MOMAN

“I believe that the programme will reform and implement the promotion of a market structure which would ensure the utilisation and development of gas infrastructure, assets and facilities on a common carrier and co-sharing basis.

“The ultimate goal is to deepen the use of gas across the country by promoting its advantages as a cheaper and cleaner alternative source of energy.

” MOMAN supports the gas initiatives of the government and is keying into the autogas space to give Nigerians across the country a cleaner and greener alternative to power their automobiles, homes and other equipment.

“The idea of deepening the use of gas comes at a very auspicious time as we grapple with increasing PMS prices due to the deregulation of the petroleum downstream sector.”

[Also Read] Autogas Scheme to Create 2m Jobs Annually, Sylva’s Aide

Oyebanji said new policies on alternative energy, the total deregulation and liberalisation of the petroleum downstream sector and the coming on stream of new mega and modular refineries would be great for Nigeria.

He said that the country could quickly develop into the refining hub for West and Central Africa, becoming a net exporter of refined products.

By Peace Obi

AKK Gas Pipeline Procurement: NNPC Followed Due Process – BPP Clarifies

By

Peace Obi

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10th September 2020

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NNPC Sells $120.49m Worth of Crude Oil, Gas in September

The Director-General, Bureau of Public procurement (BPP), Alhaji Maman Ahmadu has said that the Nigerian National Petroleum Corporation (NNPC) followed due process in procurement of the Ajaokuta, Kaduna, Kano (AKK) gas pipeline project contract.

Ahmadu made the clarification on Wednesday in Abuja when NNPC delegation led by the Group Managing Director, Malam Mele Kyari paid him a courtesy visit.

It will be recalled that a social media report had alleged that the NNPC inflated the AKK gas pipeline contract to the tune of 1.527 billion dollars.

However, in a swift reaction to this accusation, the national oil company in a statement on Tuesday denied the allegation.

The NNPC described the accusation as false, baseless and unfounded and stated that it was considering instituting legal actions against the purveyors of the false news.

[Also Read] ELPS2, OB3, AKK Gas Pipelines Boost Nigeria’s Domestic Footprint – NNPC

Dismissing the allegation, Ahmadu said, “the person who spoke to you that mentioned that NNPC followed due process was the officer who reviewed the whole process but after I read about it on the social media.

“I called on him to brief me on the relationship between the due process and what was carried on the social media.

“And he noticed a very big variation in what we did and that of the NNPC with what was on the social media.

“Then we went further to find out how they came about the information they disseminated, we saw that they picked the information somewhere else and used it in a manner that was meant to hurt what NNPC did.

“But, I think we are on top of the situation, we have our documents intact and it is available for scrutiny by anyone who is interested.

“The publication was not true from what I have already said, the publication is not reflective of what happened,” he insisted.

The D-G urged investors to jettison such irresponsibility exhibited in the report, adding that the government was committed to transparency in all its dealings.

[Also Read] AKK Pipeline Project Cost not Inflated by $1.5bn – NNPC Insists

Ahmadu, who affirmed a good working relationship with the NNPC, further commended the corporation on the AKK project, adding that when completed, it would revolutionise the gas supply chain in the country.

He noted that the project expected to be extended to other African countries, would help to further launch the country into global oil market.

He urged the NNPC to ensure the revival of the oil pipelines to help reduce the number of trucks that plied the roads.

Responding, Kyari said that the NNPC would continue to ensure accountability as a public owned organisation.

He said it would continue to follow due process according to the procurement law in the country.

He said that the establishment of the BPP Act had encouraged the corporation to do more and complied with the extant laws.

[Also Read] AKK Pipeline Project: OILSERV Ltd Commences Massive Project

“We are happy to be here, you will hear a lot but know that we will continue to do our best to be accountable, transparent in all we do.

“We are partners with the global Extractive Industries Transparency Initiative; everything we do is open to public scrutiny,” he said.

Commenting on the state of oil pipelines, Kyari said that though there were still incidents of vandalism and criminality, efforts were still on to replace aged ones.

He said that the corporation was targeting two to three years to ensure replacement of some of the pipelines to enhance products supply.

On the AKK gas pipeline, he said that it was unfortunate that people would always want to spread false news to bring down government’s efforts.

[Also Read] AKK Project Part of Next Level Agenda – Buhari

He noted that the allegation on the project was malicious and pedestrian, adding that public scrutiny was good for business but should not to be malicious.

“People should be responsible when subjecting government offices to scrutiny,” he said.

By Peace Obi with Agency Report

Get More Nigeria Oil and Gas Industry News on Orient Energy Review.

Nigeria Spent N41.98bn in Six Months on Pipeline Repairs – NNPC

By

Peace Obi

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10th September 2020

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The Nigerian National Petroleum Corporation (NNPC) has said that it spent a total of N41.98bn on pipeline repairs and management cost in the first half of this year.

The NNPC disclosed this in its latest monthly oil report, saying, “Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.”

According to the national oil company, a total of 1,067 vandalised points were recorded between June 2019 and June 2020.

[Also Read] Nigeria’s power supply remains at 3,278MW despite gas pipeline repairs

It stated that a total of 33 pipeline points were vandalised in June 2020, representing about 11 per cent decrease from the 37 points recorded in May.

The NNPC said, “Mosimi-Ibadan accounted for 33 per cent while ATC-Mosimi and Warri-River Niger recorded 27 per cent of the breaks each; other locations make up for the remaining 13 per cent.

“NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.”

[Also Read] Nigeria to seek technical assistance from India on refineries repair.

In August, the NNPC called on investors to bid for the repairs of pipelines and depots across the country, adding that the rehabilitation of the facilities would be done through a build, operate and transfer model.

Poor maintenance and vandalism have left many of the depots and pipelines idle for years, with the number of fuel tankers on the roads increasing and wreaking havoc.

A further breakdown on what the corporation expended on pipeline repairs showed that it spent N5.48bn on pipeline repairs and management cost in January; N6.74bn in February; N7.69bn in March; N7.84bn in April; N7.99bn in May and N6.24bn in June.

[Also Read] Nigeria’s Oil Output Rises To 1.9 Million Bpd Due To Repairs –NNPC

The corporation noted that over the years, the pipeline network had suffered incessant unauthorised interference, adding that this was one of the strongest drivers for the introduction of horizontal directional drilling to the scope of the project.

By Peace Obi

Get More Nigeria Oil and Gas Industry News on Orient Energy Review.

Malabu: FG Demands $1.92bn Damages from Shell, Eni

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Peace Obi

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10th September 2020

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‘Malabu Oilfield Sale to Eni, Shell Corruption Free’

The Federal Government, Wednesday asked a Milan court to order Eni and Royal Dutch Shell to pay $1.09bn as an immediate advance payment for damages it is claiming in one of the oil industry’s biggest-ever corruption trials.

Shell and Eni jointly acquired the rights to Oil Prospecting Licence (OPL) 245, a Nigerian offshore oil block, for about $1.3bn in 2011 from Malabu Oil and Gas company. Malabu is an oil and gas company owned by a former Nigerian Minister of Petroleum Resources, Dan Etete.

Reuters reported that at a hearing into alleged corruption linked to the oil majors’ acquisition of the OPL 245, Lucio Lucia, lawyer for the Nigerian government, called for a guilty verdict and an advance payment, ahead of any broader damages package set by a court at a later date.

[Also Read] ‘Malabu Oilfield Sale to Eni, Shell Corruption Free’

According to the report, Lucia did not specify how much Nigeria was seeking in damages overall but said the disputed deal had deprived Abuja of “profit oil”, adding “these are massive amounts”.

The lawyer said that calculated under two different scenarios, the profits that had been lost amounted to $4.5bn and $5.9bn respectively.

Prosecutors allege that about $1.1bn of the amount paid for the acquisition of OPL 245 was siphoned off to politicians and middlemen, half of it to Etete himself.

Shell says the 2011 agreement was a settlement of long-standing litigation, following the previous allocation of the block by the Nigerian government to Shell and Malabu.

[Also Read] Malabu: Nigerian Government wins back OPL 245

Etete, Eni, Shell and the managers accused in the Milan court case, including Eni Chief Executive Officer, Claudio Descalzi, have all denied any wrongdoing.

Eni said in a statement on Wednesday that the purchase price for OPL 245 was ‘congruous and reasonable’, considering the value of the field and investment needed to bring it into production.

In July, prosecutors in the case asked for Eni and Shell to be fined and some of their present and former executives, including Eni’s Descalzi, to be jailed.

They also requested the confiscation of a total of $1.09bn from all the defendants in the case, the equivalent of the bribes alleged to have been paid.

[Also Read] Malabu oil field: Fed govt sues Shell, Eni in London

The next hearing in the trial is scheduled for September 21, when the defence is due to present its case, according to Reuters.

Peace Obi with Agency Report

Get More Nigeria Oil and Gas Industry News on Orient Energy Review.

PPPRA Reveals Why Oil Marketers Aren’t Importing Fuel Yet

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Peace Obi

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9th September 2020

0

FG spent N9tm in oil subsidy in 10yrs – PPPRA

The Petroleum Products Pricing Regulatory Agency (PPPRA) has revealed that the non-availability of foreign exchange was the reason why many marketers were yet to start importation of petroleum products.

The Executive Secretary of the PPPRA, Saidu Abdulkadir made the disclosure during a press briefing on the deregulation of the downstream oil and gas sector, on Tuesday in Abuja.

Abdulkadir who was represented by the General Manager, Administration and Human Resources of the agency, noted that while the Petroleum Products Marketing Company (PPMC) is still the sole importer of petroleum products, PPPRA will continue to monitor development to check profiteering by marketers.

Petroleum Products Marketing Company (PPMC) is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Abdulkadir said, “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short-changed in any way in this process.

“You know how things are globally with the impact of COVID-19 on the global oil market. Accessing forex remains a challenge for marketers.

“We are hopeful that in a few months to come, Nigerians will understand what the government is doing to stabilize the downstream sector.”

Speaking further, the PPPRA Executive Secretary revealed that going forward, the price of premium motor spirit (PMS) also known as petrol will be determined by the forces of demand and supply together with the international price of crude oil.

He reiterated that the government was no longer in the business of fixing the pump price of petrol, but would monitor marketers to avoid profiteering.

He also disclosed that the PPPRA may no longer provide the monthly price band for petrol as that would run contrary to the deregulation policy.

By Peace Obi

FG Hands-Off Control Over Petrol Price, Says Marketers now Free to Fix Price

By

Peace Obi

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9th September 2020

0

Kenya Slashes Petrol, Diesel and Kerosene Prices

The Federal Government on Tuesday announced that it would no longer get involved in fixing of price band for Premium Motor Spirit (PMS) popularly known as fuel.

It said that major and independent marketers are now free to fix the retail price of the Premium Motor Spirit.

The Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Abdulkadir Saidu stated during a press briefing in Abuja. He hinted that government would no longer be releasing guiding price bands for the sale of petrol at filing stations.

According to Saidu, the downstream arm of the oil and gas sector is thus fully deregulated with this development. Adding that price of petrol would be driven by the forces of demand and supply as well as the global price for crude oil.

This is believed to be a major step by the Federal Government towards achieving a fully deregulated downstream sector of the Nigerian oil and gas industry.

[Also Read] Marketers not authorised to fix fuel price – FG

The PPPRA boss, however, stated that the agency will still exercise some level of regulation, especially to prevent marketers from overcharging customers.

“This, however, must be in accordance with our code of conduct because as a regulator, it is our duty to protect the consumer and operators must abide by our codes,” Saidu stated.

This development is coming about 72 hours after Pipelines and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, (NNPC) increased pump price from N148 to N151.56.

However, public outcry and opposition had greeted the last fuel price increment by the government.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), had called on the government to take a further step towards full deregulation of the downstream sector. This it said would enhance economic growth and development of the nation.

DAPPMAN chairman, Mrs Winifred Akpani said “we believe that full deregulation of the sector remains the most viable option for Nigeria to effectively navigate this period and ultimately safeguard the future of our economy and wellbeing of 200 million Nigerians.”

According to Akpani, deregulation will open up the sector for fresh investments, market deepening, diversification, and expansion, culminating in stable demand and supply regimes which are critical to ensuring that consumers have uninterrupted access to affordable quality products without the huge financial burden currently borne by the government.

[Also Read] Downstream Deregulation for Growth, Development of Nigeria, Sylva Explains

“DAPPMAN is aware of the considerations that have dogged the issue of deregulation over the years and we believe they are very important.

However, we believe these considerations will be duly addressed with a deregulation regime that guarantees long-term benefits and empowers the government to commit savings made in the process to infrastructure development, job creation, agricultural revolution, education and health.

“This will spur growth of Small and Medium scale Enterprises (SMEs) as well as large corporate, that would increase Nigeria’s human capacity index, competitiveness and ultimately drive inflow of foreign investments,” she added.

Trade Union Congress of Nigeria (TUC) in a statement titled, ‘Killing the dead,’ and signed by its president, Quadri Olaleye, and the Secretary-General, Musa-Lawal Ozigi, condemned the increase in petrol price and electricity tariff in the country saying: “Like the book by George Orwell, titled ‘1884’, the government and its agencies have resorted to doing the opposite of what they were set up to do.”

The labor union stated that increasing petrol prices and electricity tariffs, among others, “at a time people are losing jobs, businesses are not moving in the light of COVID-19, is, to say the least, wicked.

“Government, instead of providing welfare, is killing the people systematically.

[Also Read] Nigeria Opens Tender for Pipeline, Depot Repairs

“In droves, Nigerians flee the shores of this country. Just two days ago, we protested the hike in electricity tariff and sadly, yesterday, they slammed us with fuel [price] hike at a time when countries like Ghana and Canada are giving out palliatives to cushion the effects of coronavirus pandemic. It is difficult to cope in this circumstance.

“Do we still wonder why unemployment and insecurity have increased? This is disgustingly shameful. We urge the government to listen to the voice of reason and reverse the [petrol] price immediately.

“Stop pushing Nigerians to the wall. This is too daring. The congress is calling a meeting of its organs to take decisions on this obnoxious move. The dead are dying again; stop killing the dead!”

Meawhile, Atiku Abubakar, a former Vice President wondered why the government increased the pump price when it claimed to have deregulated the downstream sector.

“I am a businessman. I look at things from an economic perspective. Questions beg answers. The price of crude is down from where it was in 2019. In the US and Europe, fuel prices are far lower than they were in 2019. If we truly deregulated, shouldn’t fuel price have dropped?, his tweet read.

[Also Read] Fuel Scarcity Looms as IPMAN Protests Fuel Price Increase

In March, the Federal Government announced the removal of cap prices for petrol. Saidu via a memo clarified that the agency would only provide monthly guiding price for the commodity.

“The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for PMS shall take effect,” he said.

London-Based, Actis Seeks More Investment in Africa’s Power Sector

By

Peace Obi

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9th September 2020

0

FG Can No Longer Bear Electricity Tariff Shortfalls – Buhari

London-based, private-equity firm Actis LLP has said that it is looking at African energy projects to add to the $1 billion it has already invested in the sector on the continent.

Actis is a global emerging markets investment firm focused on the private equity, energy, infrastructure, and real estate asset classes. It has a growing portfolio of investments across Asia, Africa, and Latin America and US$12 billion in assets under management.

“We are seeing some new opportunities that we’ve not yet approved,” Bloomberg quotes Neil Brown, a partner and head of the Investor Development Group at Actis, in an interview.

Investments will probably be spread across East and North Africa and also in South Africa, although no commitments have been made.

Africa, which has a population of 1.3 billion people, has an electricity-access rate of just over 40 per cent, the lowest in the world, according to the African Development Bank (AfDB).

South Africa, the continent’s most-industrialized economy, has battled power shortages since 2008 after the government failed to invest in new plants in time to replace aging equipment and infrastructure.

The emerging-markets investor now plans to bid for the nation’s Risk Mitigation Independent Power Producers Procurement Programme, Brown said. Bloomberg said the government wants 2,000 megawatts of capacity from independent power producers after a record year of power outages.

Actis also plans to participate in the fifth round of bidding for the country’s Renewable Energy Independent Power Producer Programme, he said.

This could either be through new plants, such as solar or wind farms, or the firm could buy existing operating facilities that can be improved, said Brown.

Actis has investments in about 25 power projects in countries including Nigeria, South Africa, Senegal, Egypt, Kenya, Mozambique and Cameroon.

By Chibisi Ohakah, Abuja

Saudi’s King Salman, Russia’s Putin Express ‘Satisfaction’ With OPEC+ Deal

By

Peace Obi

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9th September 2020

0

Saudi Energy Minister Presses OPEC+ on Fulfilling Oil Cuts

Saudi Arabia’s King Salman bin Abdulaziz al-Saud and Russian President Vladimir Putin have both expressed satisfaction with the implementation of the OPEC+ crude oil output deal.

Hellenic Shipping News quoted the Klemlin website where both world leaders reportedly spoke on phone two days ago, and discussed ways to address the global economic slump.

The call was reportedly initiated by King Salman and comes ahead of a key OPEC+ joint ministerial monitoring committee meeting on Sept. 17, which is expected again to focus on compliance. The JMMC is co-chaired by Saudi Arabia and Russia.

[Also Read] OPEC, Russia Bargain Over Oil Cuts Ahead of June Meeting

“Both sides expressed satisfaction with the progress of the implementation of the OPEC+ agreement, which made it possible to stabilize the situation on the world energy markets in general,” the statement said.

Saudi Arabia and Russia agreed to further closely coordinate their work on production cuts, trade and investments. Saudi and Russian leaders have also discussed joint ways to overcome negative consequences of the coronavirus pandemic on the world economy and finances, the statement said.

[Also Read] Russia Seeks Partnership With Nigeria In Upstream, Gas, Power Development

Earlier in the day, Russian energy minister Alexander Novak said that Russia’s adherence to production cuts in August was “close to 100%.”

By Chibisi Ohakah, Abuja

Tanzania’s TPDC Plans to Distribute Natural Gas to Households

By

Peace Obi

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9th September 2020

0

Tanzania’s TPDC Plans to Distribute Natural Gas to Households

Tanzania has expressed its commitment to distributing natural gas to households to conserve and protect the environment and reduce women’s heavy workload of searching firewood.

Yesterday, the Tanzanian Petroleum Development Corporation (TPDC) gas engineer, Dora Ernest, said TPDC was committed to ensuring households had natural gas for domestic use.

This was expressed by more than seven TPDC women engineers during the just ended Annual Engineers Day.

[Also Read] Tanzania Invites Compressed Natural Gas Investors

They also encouraged girls to opt for science subjects. During interviews with a news medium at their exhibition pavilion at the weekend, the engineers commended TPDC for availing them with all opportunities to deliver and trust them in their performance as they were more than -20 women engineers.

“We will ensure the gas reaches households as doing so we will reduce women’s heavy workload as they walk long distances to look for firewood. Using gas will help conserve the environment for present and future generations,” she said.

Another gas engineer, Ms Tumaini Daniel, was proud that she was among the team that made it possible for the distribution of natural gas to industries and Tanesco. She said if women were given an opportunity they would be self-confident and efficient at work.

[Also Read] Tanzania Extends Aminex Licence

For their part, Ms Felister Aggrey and Ms Koleta Selsi – both of them being petroleum engineers- said working on downstream and LNG distribution had been a success thus showcasing their prowess as women engineers.

“I urge other institutions where there are engineering posts they should consider women. They can work wonders and contribute to economic development,” she said. Ms Gwantwa John, said controlling pressure, temperature and equal distribution of gas and electricity was something that made her proud.

She said reliable and sustainable power supply was crucial, thus she was doing all her best to ensure she was part of national development through her work.

[Also Read] Between Extortion & The Sanctity of Petroleum Contracts In Nigeria, DRC & Senegal

Ms Florah Benedicto (Mechanical Engineer) said TPDC had shown the lead since as it had given them employment and enabled them to showcase their skills and competence. She said there was a need to change people’s mindset as most of them believed engineering was for men only.

By Chibisi Ohakah, Abuja

Sylva Blames Lawmakers in the Delay Over PIB

By

Peace Obi

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9th September 2020

0

Minister says Nigerians Should be Happy to Import Petrol from Niger

The Nigerian Minister of State for Petroleum Resources, Mr Timipre Sylva has absolved the executive arm of government from the delay trailing the Petroleum Industry Bill (PIB), adding that indeed, the timeline for the delivery of the Petroleum Industry Bill (PIB) is out of his control.

While pointing at the National Assembly, the minister rationalized that it is a matter of timeline.

“Timeline is always a difficult question because this is something that has to do with the National Assembly,” he told the audience at the Nigerian Association of Petroleum Explorationists (NAPE) discourse.

[Also Read] Security agencies trail fraudulent oil marketers, recover N771m forfeited assets

He described the PIB as an omnibus reform legislation, which “combines 16 different Nigerian petroleum laws in a single transparent and coherent document.”

The first version of the PIB was presented to the National Assembly, the country’s bicameral house of legislature, in 2007. It didn’t make it to law. It has returned, fruitlessly, to two National Assemblies after that.

Sylva explained that “For us (in the executive arm of Nigeria’s Federal Government), I would tell you very confidently that we have finished our job. The drafting process is concluded. We have discussed with some relevant industry operators as well.

[Also Read] Speaker Urges Buhari to Adopt Feasible Crude Oil Benchmark in Budget Adjustment

“At this point what is happening is that the Ministry of Justice was looking at the draft again to ensure that it is not in conflict with the existing laws in the country. And even that process has now been concluded.

“So, we have requested the National Assembly to see if they can re-convene during their recess to accept the PIB. And then after that, frankly, I cannot say how long it is going to stay with the National Assembly.

“I am sure you understand that. But, my understanding from all the consultations we have had with them is that they are going to look at it expeditiously.

[Also Read] Nigeria Needs $70 Oil Price to Sustain Budget –Sylva

“I do not think that it is going to stay for more than (I am just trying to be excessive in my estimation) six months in the National Assembly,” he said.

The discourse with Mr. Sylva, was the third of the series of engagements that NAPE, the largest body of upstream petroleum technical professionals in Africa, has been having with the policy and regulatory heads of the Nigerian Petroleum industry.

The series has included Sarki Auwalu, chief executive of the DPR and Mele Kolo Kyari, the group managing director of NNPC, the state hydrocarbon company.

By Chibisi Ohakah, Abuja

Get More Nigeria Oil and Gas Industry News on Orient Energy Review.

Nigeria Spends N1.09trln on Fuel Importation in Six Months

By

Peace Obi

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9th September 2020

0

Buhari Dashes Hope of Electricity, Fuel Price Hike Reversal

National Bureau of Statistics (NBS) has said that Nigeria spent N1.09 trillion to import Premium Motor Spirit (PMS), also known as petrol, in the first six months of 2020, indicating a difference of 42.3% when compared to N766.06 billion recorded in the same period in 2019.

In a series of reports, NBS also disclosed that the value of the country’s crude oil export dropped sharply by 38.5% to N4.5 trillion within the same period, compared with N7.32 trillion in the corresponding period of 2019.

When compared to the preceding half, second half of 2019, H2’19, the value of crude oil export also showed a massive decline of 39.02 per cent, as the country earned N7.38 trillion in H2’19.

[Also Read] NBS Says Nigerian Enjoy Electricity Only 7hrs Daily

The decline in export figure was recorded, despite the devaluation of the local currency, which could have increased the Naira value. But it also came at the backdrop of a crash in the price of crude oil in the international market.

The massive increase in expenditure on PMS import is recorded, despite the reports of the Department of Petroleum Resources (DPR), the Petroleum Products Pricing Regulatory Authority (PPPRA), and the Nigerian National Petroleum Corporation (NNPC), indicating a significant reduction in Nigeria’s fuel import and consumption figure since March 2020, due to the Coronavirus.

NBS said the lockdown can also be blamed for the drop in Nigeria’s crude oil export in the first half of 2020, as the supply glut that followed the pandemic forced the price of crude into the negative terrain in April, called ‘Black April’, while demand for crude oil crashed. In some cases to zero, with storage space causing major concerns globally, as the world seemed to run out of space to store crude oil.

[Also Read] Nigeria’s economy records 1.95% growth in Q1

The NBS said N1.003 trillion was spent on fuel import in the first quarter of 2020, Q1’20, as against N190.78 billion in the corresponding period of 2019, while in the second quarter, Q2’20, the NBS stated that Nigeria spent N87.08 billion as against N575.28 billion in the corresponding period of 2019.

Petrol import, according to the NBS reports, accounted for 2.16% of Nigeria’s total imports in the second quarter of 2020, the fourth largest import in the second quarter, topped by used vehicles import, which gulped N198.4 billion and accounting for 4.93% of total imports.

The agency went on that in the first and second quarter of 2020, crude oil export stood at N2.94 trillion and N1.55 trillion, respectively, compared with N3.38 trillion and N3.94 trillion in the first and second quarter of 2019, respectively.

[Also Read] Discos’ consumers received 93,219 prepaid meters in Q1 — NBS

NBS noted that crude oil export accounted for 70.01% of Nigeria’s total export in the second quarter of 2020, with The Netherlands emerging the highest buyer of Nigeria’s crude in the second quarter, with N221.68 billion, followed by China with the purchase of N189.91 billion worth of crude oil, while South Africa purchased N171.78 billion worth.

Nigeria also exported crude oil valued at N147.61 billion, N133.98 billion, N68.94 billion and N67.38 billion to India, Spain, Togo and Indonesia, respectively, in the second quarter of 2020.

By Chibisi Ohakah, Abuja

More Nigeria Oil and Gas Industry News on Orient Energy Review.

Siemens Best Qualified for 25,000MW Grid Expansion – FG

By

Peace Obi

-

8th September 2020

0

FG Moves to Launch ‘Energy for All’ Plan for 5m households – Minister

The Federal Government has explained that the German firm, Siemens AG was chosen for the expansion of Nigeria’s power grid because it was the best qualified company to handle the rehabilitation of the country’s dilapidated electricity infrastructure.

The Minister of Power, Sale Mamman disclosed this on Monday in a series of tweets via his official Twitter handle.

Mamman explained that the Siemens deal would expand Nigeria’s power grid capacity to 25,000 megawatts.

Nigeria’s power generation on the grid currently hovers between 4,000MW and 5,000MW.

Mamman noted that not all Nigerians had access to power, while those who had suffer irregular power supply.

[Also Read] FG Partners Germany, Siemens To Achieve 7,000 Megawatts Power Supply

“So the Siemens project is here to upgrade the national dilapidated infrastructure. The deal is monumental for this sector because the early phases of delivery will improve the grid’s operational capacity,” he stated.

The minister added, “It will open up corridors for evacuation that will greatly reduce the burden of delivered capacity, which is costing the sector so much.

“Investors will be more confident to participate in the sector as the grid achieves more functional operational capacity. This will also reduce financing cost in the evacuation process.”

Speaking on the timeline to complete the project, Mamman said it would be for five years, as implementation would take place in three phases, which, according to him, had already commenced.

[Also Read] Siemens Upgrades 105 Power Substations, Builds 70 New Ones in New Energy Deal

He said, “First and foremost, let me state that Siemens was chosen because they are the best in the business and have already undertaken similar initiative s elsewhere in Egypt and Iraq.

“Furthermore, they have experience operating in the local environment, which means we will have no issues in the implementation process.”

The minister said phase one of the project was focusing on measures to increase end-to-end operational grid capacity to 7,000MW.

He said phase two targets to expand the capacity of the transmission and distribution system and to enable evacuation of up to 11,000MW of electricity to end users.

[Also Read] Siemens Electricity Supply Deal: 3,800 Transformers to Be Installed – FG

“Phase three targets expanding the power grid to 25GW capacity through further expansion of the generation, transmission and distribution systems,” Mamman stated.

In order to ensure the completion of the deal, the minister said the government had to institutionalise the project and approved an institutional framework that consists of a government sponsored special purpose vehicle.

He said, “The SPV is capitalised by the Ministry of Finance to among others, serve as a regulator and guarantor of the project, representing the Federal Government in the Presidential Power Initiative negotiation.”

It was reported in July that the Federal Executive Council approved the payment of €15.21m (N6,940,081,465.20) offshore and N1.708bn onshore as part of Nigeria’s counterpart funding for the power deal with Siemens AG.

[Also Read] Nigeria Approves Funding for Siemens to Rehabilitate Country’s Power Infrastructure

The total amount approved by FEC in July this year for the deal was N8,648,081,465.2.

Earlier in July 2019, the Federal Government and Siemens had signed a Letter of Agreement on the Nigeria Electrification Road Map.

This was after the President, Major General Muhammadu Buhari (retd.), and the German Chancellor, Angela Merkel met on August 31, 2018, in Abuja.

By Peace Obi with Agency Report

Shell Dismisses Angiama 45,000 Barrel Oil Spill Report as NOSDRA Admits Error

By

Peace Obi

-

8th September 2020

0

SPDC distances itself from leadership crisis at its EA host community in Bayelsa

The Shell Petroleum Development Company of Nigeria Limited (SPDC) has dismissed a report that it spilled 45,000 barrels of oil from an incident at its facility in Nun River in Angiama area of Bayelsa State in March 2020.

“The outcome of the government regulator-led Joint Investigation Visit (JIV) into the spill incident of 27th March 2020 was published in a report that is available on the publicly accessible SPDC spill website and the volume of oil spilled from the regrettable operational incident was 43 barrels,” SPDC’s Media Relations Manager, Bamidele Odugbesan, said in a statement on Monday.

[Also Read] Bonga oil spill: NOSDRA directs Shell to pay $3.6bn to affected communities

According to Odugbesan, the spill JIV report, including photographs of the conducted on 28th March 2020, was signed off by the regulator, National Oil Spill Detection and Response Agency (NOSDRA), representatives of the community, representatives of the Bayelsa State Government and SPDC.

“Responding to an enquiry on its twitter handle, NOSDRA had erroneously said 45,000 barrels of oil were spilled from the wellhead leak, but the agency admitted the error in a subsequent tweet where it claimed that the actual volume of oil spilled should be 45 barrels, even though the official report of the investigation into the incident stated that 43 barrels were spilled, the statement said.

[Also Read] Pipeline Vandalism: SPDC Dismisses Alleged Staff Involvement

Explaining how the incident was managed, Odugbesan said, “No spill is acceptable to us and we work hard to prevent spills from occurring in our operations.

“Immediately the incident was reported on 27th March 2020, we took promptly steps to stop the spill and contain the spread within the SPDC JV wellhead slot right of way. The recovery of the spilled oil was completed on 5th April 2020.”

By Peace Obi

More Nigeria Oil and Gas Industry News on Orient Energy Review.

Foreign Firms Eye $5bn Investment in Nigerian power sector

By

Peace Obi

-

8th September 2020

0

Electricity Grid Collapses 27 Times in Three Years

A consortium of Western investors has presented their plan to invest over $5bn in Nigeria’s power sector, the Federal Government has said.

Information from the Office of the Minister of Power on Sunday, revealed that the investors would focus majorly on the renewable energy subsector of the industry.

It was further gathered that the consortium targets to also deliver 1,000 megawatts capacity of hybrid solar power within two years.

The Special Assistant to the Minister of Power on Media and Communications, Aaron Artimas, who confirmed this, stated that the presentations by the investors were made to the Minister of Power, Sale Mamman.

“They made the presentation to the minister of power and it is something that is still fresh. The process is still ongoing and you’ll get updates as we proceed,” he stated.

The minister’s aide referred our correspondent to the Twitter handle of the Office of the Minister of Power, where it was captured that the consortium would also partner government in electricity grid development across the country.

The Office of the Minister of Power in a series of tweets on its verified Twitter handle said, “A consortium of Western investors interested in investing upwards of $5bn in the Nigerian power sector, with a major focus on the renewable energy sector, pitched their proposal to the Minister of Power @EngrSMamman at the Power House.”

It stated that the main partner of the consortium, Ron Verraneault, led the presentation, while his other partners linked in via Zoom.

By Peace Obi

Kariya Energy Eyes Nigeria’s Oil and Gas Assets, Others

By

Peace Obi

-

8th September 2020

0

Kariya Energy Eyes Nigeria’s Oil and Gas Assets, Others

Kariya Energy announced yesterday that it will enter into various definitive agreement to acquire upstream and midstream oil and gas assets in African countries.

With its technology, the company said it can turn around African small-scale LNG and work with partners in addressing off-grid power generation for industrial and residential needs in remote locations and deal with issues around energy poverty.

Kariya Energy’s technical and financial strength puts it in a position to bring Canadian and American ingenuity into the growing oil and natural gas market in Africa.

[Also Read] New PIB Proposes Single Regulator for Midstream, Downstream Oil Sector

Kariya Energy and its management team’s engagements and experience with various deep and shallow water projects in Mozambique, Nigeria, Senegal, Congo DRC, Congo Republic and Gabon makes these countries great investment possibilities.

After spending 16 months reviewing data from various IOC’s, Kariya Energy will be pursuing acquisitions of various exploration and development plays either through Farm-in deals or operatorship through risk service contracts, or direct negotiations with sovereign governments.

Kariya Energy will continue with its current and ongoing support by providing technical, financial, and operational support for oil and gas companies currently operating in Nigeria, Congo and Gabon.

[Also Read] IMG Midstream Eyes Increased Gas Supply, Create New Niche Market for Local Gas Producers

Kariya Energy’s strategy has focused on the innovation and evaluation of new opportunities for resource extraction with great technology that has produced results.

Kariya Energy will pursue profitable small-scale LNG projects across Africa, a niche that its leadership has been skilful in building and making it profitable and scalable, boasting significant potential across the African market.

By Chibisi Ohakah, Abuja

Get More Nigeria Oil and Gas Industry News on Orient Energy Review.

Global Oil Prices Drop Following Saudi Cuts, China Imports Slowdown

By

Peace Obi

-

8th September 2020

0

Oil Price Slips as New Coronavirus Strain Spreads

Oil prices fell by more than 1% on Monday after touching their lowest points since July as Saudi Arabia made the most profound monthly price cuts for supply to Asia in five months and hopes about demand recovery faded amidst the corona virus pandemic.

Brent crude was at $41.99 a barrel, down 67 cents or 1.57% by 11:28 at West Africa Time, after earlier sliding to $41.51, the lowest since July 30.

U.S. West Texas Intermediate crude slid by 70 cents, or 1.76%, to $39.07 a barrel after earlier dropping to $38.55, the lowest since July 10.

On the previous session on Friday, Bonny Light, Nigeria’s premium oil grade, shed 60 cents or 1.43% to $41.40 per barrel. Qua Iboe, another key national grade, slipped by $1.72 or 3.93% to $42.09.

[Also Read] US cuts Nigerian crude oil imports by 62% in March

The world remain saturated with crude and fuel in spite of the output cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, government’s moves to boost the global economy and oil demand.

Refiners have reduced their fuel output as a result, prompting oil producers such as Saudi Arabia to slash prices in a bid to offset the falling crude demand.

“Sentiment has turned sour and there might be some selling pressure ahead,” Howie Lee, an economist at Singapore’s OCBC bank said.

The Labour Day holiday on Monday signals the traditional end of the peak summer demand season in the U.S. and that renewed investors’ attention on the present abysmal fuel demand in the world’s biggest oil user.

[Also Read] Low Oil Price: Opportunities In The Midst Of Challenges

China, the world’s biggest oil importer which has been helping prices with record purchases, slowed its import in August and ramped up its products exports, according to customs data on Monday.

“There are so many uncertainties with regard to the Chinese economy and their relationship with key industrialized countries, with the U.S. and these days, even Europe. It’s not such an optimistic situation – that casts some shadow over the growth outlook,” Keisuke Sadamori, director for energy markets and security at the International Energy Agency told Reuters.

Saudi Arabia, the world’s top oil exporter, slashed the October official selling price for Arab Light crude it sells to Asia by the most since May, reflecting demand remains weak. Asia is Saudi’s biggest market by region.

[Also Read] Nigeria’s December Oil Output Drop, Biggest In OPEC

The OPEC+ group reduced production to 7.7 million barrels per day in August after the global oil prices rose from historic lows triggered by the pandemic cutting fuel demand. Oil is also strained as United States companies increased their drilling for new supply following the recent recovery in oil prices.

Last week, U.S. energy firms added oil and natural gas rings for the second time in three weeks, report by Baker Hughes Co on Friday.

By Chibisi Ohakah, Abuja

DAPPMAN Calls for Full Downstream Sector Deregulation

By

Peace Obi

-

8th September 2020

0

December 14: Marketers Fail to Comply With N5 Reduction in Petrol Price

Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has advised the Nigeria federal government to take a further step towards full deregulation of the downstream sector to enhance economic growth and development of the nation.

Commending the government for consistently seeking ways to reposition the sector for effectiveness and profitability, DAPPMAN chairman, Mrs Winifred Akpani said DAPPMAN, fully supports implementation of a a deregulated regime which will make the sector’s operations more seamless, enhance transparency, competitiveness and sustainable growth.

[Also Read] Downstream Deregulation for Growth, Development of Nigeria, Sylva Explains

“DAPPMAN is mindful of the commitment of the government and the functional organs managing the sector to ensuring value to every Nigerian and we salute them for this as we are indeed up against uncertain times.

“However, we believe that full deregulation of the sector remains the most viable option for Nigeria to effectively navigate this period and ultimately safeguard the future of our economy and wellbeing of 200 million Nigerians” she said.

[Also Read] Deregulation: PPPRA Assures Nigerians of Better Days Ahead

According to Akpani, deregulation will open up the sector for fresh investments, market deepening, diversification, and expansion, culminating in stable demand and supply regimes which are critical to ensuring that consumers have uninterrupted access to affordable quality products without the huge financial burden currently borne by the government.

By Chibisi Ohakah, Abuja

Get More Nigeria Oil and Gas Industry News on Orient Energy Review.

Why Past Governments Failed to Remove Fuel Subsidy ― Presidency

By

Peace Obi

-

8th September 2020

0

‘Nigeria May Lose N1.2trn Oil Revenue to Non-Compliance to Fiscal Incentive Package’

The Presidency has said that despite the fact that subsidy removal has long been acknowledged as the right thing to do, previous administrations for lack of courage failed to take the bold step to end fuel subsidy in Nigeria.

Defending President Buhari over the removal of fuel subsidy, the Senior Special Assistant to the President (Media & Publicity), Garba Shehu, in a statement said that Buhari was taking both popular and unpopular decisions as a leader because he has the courage to do so as the circumstances dictate.

The statement noted that subsidy removal had long been seen as a game-changer by successive administrations but the courage to implement the reforms was lacking.

It further stated that against the expectations of critics, history will be kind to Buhari for eliminating the evil of corruption embedded in subsidies.

On the timing of the subsidy removal, it argued that though Nigerians are faced with multiple challenges stirred up by COVID-19 pandemic, poor global oil price, among others, a good government must make decisions for the people’s good.

[Also Read] Presidency says Nigeria to attain 10,000 megawatts by December

“The All Progressives Congress, APC came to power in 2015 defeating an incumbent administration amidst very high expectations from President Muhammadu Buhari.

“Five years on, the administration has worked hard to meet many expectations, but still, there are certain tough decisions which had to be taken to put back the country on the path of sustainable development.

“To stop the mismanagement of taxpayer money, eliminate corruption associated with subsidies on petroleum products, power, fertilizer among others, the administration took the decision to implement long-delayed reforms, withdraw and allow the market to determine their prices.

“Subsidy removal in these sectors had long been foreseen by successive administrations as game changers in search of solutions to move forward with the nation’s development. These are reforms that are necessary and overdue.

“Blueprint upon blueprint, timeline upon timeline had come and gone but the courage to take bold decisions was not there.

[Also Read] No More Fuel Subsidy In Nigeria – NNPC GMD

“Over the last few days, one claim acquiring a potent resonance with the online community, sections of the labour movement and the opposition are that the actions are ill-timed and ill-advised.

“There is nothing new in the fact that the country is today fighting multiple challenges along with COVID-19, including low earnings, near-collapse of the oil market, floods, threats of terrorism and banditry but the challenges notwithstanding, a good government must make decisions for the people’s good.

“As President Muhammadu Buhari takes these difficult decisions, both popular and unpopular and as a leader because he is demonstrating the right courage to take such decisions as they become necessary in view of present circumstances.

“History will be kind to President Buhari because, in addition to his amazing ability to command votes, he will be remembered as the President who made real contributions to economic and overall national development by eliminating the evils of corruption embedded in subsidies.

“In any democracy, the most important certificate in governance is acceptance by the people and, with the support of ordinary Nigerians, President Buhari has shown a rare determination to carry out the bold initiatives as these ones driven by nothing other than the greatest good for the greatest number of people.

[Also Read] NNPC Petrol Imports Rise By 1.2bn Litres In 2months

“In carrying out the reforms, the President needs the support and understanding of all citizens-inclusive of the opposition parties, the labour movement and civil society groups.

“In these challenging times, the President is pushing development goals, not politics and history will judge him in favourable terms rather than his critics in the new media and the opposition.”

By Peace Obi

AKK Pipeline Project Cost not Inflated by $1.5bn – NNPC Insists

By

Peace Obi

-

8th September 2020

0

The Nigerian National Petroleum Corporation, NNPC has dismissed the allegation that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project was inflated to the tune of $1.527 billion.

The Group General Manager, Group Public Affairs of the NNPC, Dr Kennie Obateru in a statement described the accusation as false, baseless and unfounded, stating that the NNPC was considering instituting legal actions against the purveyors of the false news.

It stated that the attention of the Bureau for Public Procurement, BPP had been drawn to the accusation which it completely rejected as the speculative analysis of the online medium, false and not portraying the true position of the BPP’s report on the subject.

He said: “This is clearly a concocted analysis aimed at attacking the character of the Group Managing Director, GMD, of NNPC, Mallam Mele Kolo Kyari, and the integrity of the BPP.

[Also Read] AKK Pipeline Project: OILSERV Ltd Commences Massive Project

“Mallam Mele Kyari did not become the GMD until July 2019 and he is being mentioned in a process that took place in 2017 by the account of the publication.

“This is rather unfortunate and malicious, considering that a further cut of $300 million of the contract value was achieved under the Mele Kyari-led NNPC management leading to the recognition by the Federal Executive Council as an unprecedented action.”

Obateru explained that the BPP, following a detailed review and analysis of the procurement bid, confirmed that the unit costs for line pipes adopted by the NNPC for the project were reasonable when compared with current market prices for 40 inches, 36 inches, 20 inches and 14 inches steel pipes, adding that it was on that basis that BPP confirmed and granted certificate of no objection dated August 11, 2017.

He stated that the AKK project underwent a transparent and open competitive tender process that resulted in the emergence of the most competitive bidders, wondering how a competitive tender process could be inflated.

“Approval of all relevant authorities were obtained after an intense scrutiny by the various agencies. This is a deliberate attempt to mislead the Nigerian public with baseless information”, he added.

[Also Read] AKK Pipeline to Boost Nigerian Content Goals

According to the NNPC spokesperson, the AKK pipeline project was one of the key landmark projects that have had transparent processes from inception to date, with the entire evaluation exercise carried out by NNPC and Infrastructure Concession Regulatory Commission, ICRC.

He cited the various stringent due process reviews and scrutiny, internally and externally, which the AKK pipeline project was subjected to, to include: conduct of project bankability study, at project’s conception in 2013, undertaken by Standard Chartered Bank to confirm appetite for attracting financing from international community.

The other scrutiny include: “Execution of project feasibility and Front End Engineering Design, FEED, by a reputable international company, ILF of Germany, in 2014. The details developed at this phase had enough engineering design details to enable a competitive class of estimate to be submitted by the contractors.

“Advertisement of the project in both local and foreign print media in 2013. After completion of the FEED study by ILF in 2015, the prequalified bidders were issued tender documents. Competitive tendering and evaluation of the bids by both NNPC and transaction advisers, Alpine and also by a team from ICRC.

[Also Read] AKK Gas Pipeline Procurement: NNPC Followed Due Process – BPP Clarifies

“Extensive review of the project design and the final cost in 2017 by the BPP, culminating in the issuance of a Certificate of No Objection in August 2017. Receipt of due process certificates for the project, including Original Business Case and Final Business Case from ICRC and Local Content Compliance Certificate from Nigerian Content Development and Management Board, NCDMB, before presenting to the Federal Executive Council, FEC, for approval in December 2017.

“Renegotiation of the contract when financing was not to be provided by the contractors following a stalemate due to the inability of the company awarded the contract to progress financing in 2019, leading to further cut of $300 million of the contract value under the Mele Kyari-led NNPC Management

“Formation of a Steering Committee in July 2020 by Mallam Mele Kyari comprising key project stakeholders as NNPC, Ministry of Finance, Ministry of Justice, the Central Bank, Debt Management Office, Nigeria Extractive Industries Transparency Initiative (NEITI) and representative from the Presidency to ensure transparency in the implementation of the project.”

Obateru explained that after several failed attempts in the last 13 years to commence the AKK project activities, the leadership of Kyari, within one year of stewardship, brought the project on track, leading to the award of the contract at a competitive price and eventual flag off of construction that the world witnessed in June 2020.

[Also Read] ELPS2, OB3, AKK Gas Pipelines Boost Nigeria’s Domestic Footprint – NNPC

He called on all well-meaning Nigerians to give the Mele Kyari-led NNPC management the credit it deserves, even as it encouraged them to follow the execution of the project which was being undertaken in a transparent and aggressive manner in line with Transparency, Accountability, Performance Excellence agenda of the corporation.

By Peace Obi

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