Akselos has announced the successful deployment of a structural Digital Twin for Shell’s Bonga Main Floating Production Storage and Offloading (FPSO) vessel, located in the Niger Delta in Nigeria.

Akselos is a Swiss company which provides an engineering simulation platform based on reduced-basis finite-element analysis.

The platform is used to create digital twins of energy infrastructures in order to improve their design, maintenance, reliability and lifetime.

The Digital Twin is a physics-based model of the asset, which represents its entire physical counterpart in absolute detail and accuracy.

The model is updated with loading conditions and inspection data on a regular basis, providing the ability to carry out structural assessments based on the ‘as is’ condition, from anywhere and at any time.

A statement from Akselos on Tuesday said the structural Digital Twin, which is based on the company’s patented RB-FEA technology, was selected by Shell Nigeria Exploration and Production Company (SNEPCo), Shell’s deepwater company in Nigeria and operator of the 225,000 oil barrel capacity FPSO, “because of its unique ability to realise a number of operational objectives.”

These include the identification of critical areas for prioritised inspection, maintenance and repair; a reduction in personnel on board the asset; reduced necessity for physical inspections in hard-to-reach areas such as cargo tanks; and to support scenario planning for extreme weather events and asset modification.

Akselos also said the deployment of the breakthrough simulation technology will also enable safe asset life extension by replacing the over-conservative estimates made with conventional simulation software, with accurate assessments that reflect actual remaining fatigue life.

Asset Manager for Bonga, Elohor Aiboni, explained that the Bonga Main FPSO heralded a number of innovative ‘firsts’ when it was built back in 2004. Adding that it’s fitting that the first asset of its kind to deploy something as advanced as a structural Digital Twin.

“We are very excited about the new capabilities that Akselos brings and believe it will create a positive impact on the way we manage structural integrity. It is also a great example of digitalisation coming to life,” he said.

The Bonga Main FPSO, which became operational in 2004, has a capacity of 225,000 barrels per day and weighs over 300,000 tonnes, making it the largest asset in the world to be protected by a structural Digital Twin, the statement from Akselos said.

“We are very proud to have reached this important milestone, which represents many months of complex engineering work between SNEPCo and Akselos.

“To have the opportunity to deploy our breakthrough technology on a 300,000 tonne asset is the kind of technical challenge that Akselos was founded to solve.

“I woild like to thank the SNEPCo team and the wider team within Shell for sharing our vision and for their commitment to digital transformation,” the statement quoted Akselos founder, David Knezevic.

The integrated energy company has supported Akselos’ technology deployment on many of its assets and become a minority shareholder through its venture capital arm Shell Ventures.

The partnership has played an important role in Akselos’ development to become an international scale-up operating across the energy sector.

By Chibisi Ohakah, Abuja

As the Organisation of Petroleum Exporting Countries (OPEC), and its allies eased oil supply cuts, just as the global economy and demand began to recover from the Corona virus pandemic, a survey has discovered OPEC oil output has risen by about 1 million barrels per day (bpd) in August.

The survey by Reuters said that OPEC pumped 24.27 million bpd on average in August up 950,000 bpd from July’s figure and a further boost from the three-decade low reached in June.

The report further said that the easing of lockdowns and lower supply from OPEC, Russia and allies, known as OPEC+, have helped oil (LCOc1) climb above $46 a barrel from April’s 21-year low of below $16.

“Now we are on better ground, but a full recovery is not there yet. We must continue to monitor the market and coronavirus situation very carefully,” Reuters quoted an unnamed OPEC delegate.

OPEC+ from May 1 made a record cut of 9.7 million bpd, or 10% of global output, after the virus destroyed a third of world demand. From Aug. 1, the cut tapered to 7.7 million bpd until December, of which OPEC’s share is 4.868 million bpd.

The news agency said that in August, OPEC countries bound by the deal delivered 99% of the pledged reduction. It put compliance in July was revised up to 95%.

August’s increase is similar to that seen in July and means OPEC is now pumping almost 2 million bpd more than June’s figure, which was the lowest since 1991 based on Reuters surveys and OPEC data.

The biggest rise in supply in August came from Saudi Arabia, which pumped 9 million bpd, up 600,000 bpd from July and close to its new quota, the survey found.

The second-biggest rise came from the United Arab Emirates, which pumped more than its quota after hot weather and people holidaying at home boosted local demand.

Kuwait also raised output, remaining in line with its new target. Smaller increases came from Angola and Algeria.

Iraq and Nigeria, laggards in previous months of the OPEC+ deal, both reduced output, the survey found, with Iraq reaching its highest compliance in recent years.

The cut from Iraq, though, was less than the volume pledged and Nigeria, while boosting compliance significantly, remains short of the 100% level according to the survey.

Iranian, Venezuelan and Libyan supply was little changed. All three are exempt from voluntary cuts because of U.S. sanctions or internal issues limiting output. Libyan output may begin to rise if proposals to lift a months-long oil blockade are adopted.

The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from tanker-trackers such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.

By Chibisi Ohakah, Abuja

The Department of Petroleum Resources (DPR) said it generated the total sum of N673.7 billion in the first half of this year.

The regulatory agency in a statement by its spokesman, Paul Osu, said the Director of DPR, Mr Auwalu Sarki, disclosed this during the visit of the Federation Allocation Accounts Committee (FAAC) Post-mortem Sub-Committee to the department on Wednesday.

The FAAC delegation was led by the Chairman of the committee, Mr Kabir Mashi.

Stating that DPR was a revenue collection agency for accrueable to government from oil and gas industry operations, Sarki assured it would surpass its revenue target for 2020.

Acording to Sarki, DPR operates a cashless revenue system which enables all revenue remittances to be paid directly to the federation account in compliance with the Treasury Single Account (TSA) policy of government.

Adding that the agency conducts comprehensive quarterly and annual reconciliations of revenue payments to ensure accurate and timely remittances to the federation account.

Sarki further stated that DPR was responsible for the collection of oil and gas royalties, which he said represented proportional value of oil and gas production and sales from oilfields, gas flare penalties imposed for gas flaring.

Adding that the agency also collects concession rentals paid for grant of oil and gas acreages by exploration and production companies and miscellaneous oil revenue.

This consists of statutory application fees, licence and permit fees and penalties.

According to him, DPR conducts comprehensive quarterly and annual reconciliations of revenue payments to ensure accurate and timely remittances to the federation account.

In his remarks, Mashi commended DPR for putting in appropriate measures in ensuring timely and accurate collection of revenues for the federation.

Mashi said their visit was to strengthen collaboration with revenue collection agencies of government to ensure seamless analysis of revenue inflows into the federation account.

He encouraged DPR to continue its positive revenue collection drive and to initiate policies that would continue to stimulate the economy to significantly increase current oil and gas contribution of 10 per cent to Gross Domestic Product (GDP).

Peace Obi with agency report

The minority caucus in the House of Representatives has condemned the latest increment in the pump price of Premium Motor Spirit (petrol) from N148 to N151.56k per litre.

The Petroleum Product Marketing Company, on Wednesday, announced that the Nigerian National Petroleum Corporation retail outlets would now sell petrol for N151.56k per litre, while the Independent Petroleum Marketers Association of Nigeria had directed its members in the South-West to sell at N162.

The Minority Leader of the House, Ndidu Elumelu, in a statement issued on Wednesday and titled, ‘Reps Caucus Demands Halt in N151 Fuel Price Increase’, described the increment as unacceptable.

Elumelu warned that it would result in an increase in the already high cost of consumer goods and services and worsen the current economic hardships being suffered by Nigerians.

He said, “The minority caucus in the House of Representatives rejects the announced increase in the pump price of fuel.

“This is because such increase will directly result in more hardship on our citizens, particularly at this critical time when a majority of Nigerians across the country are struggling to survive under the burden of high cost of living and low purchasing power occasioned by the prevailing economic challenges.

“Any increase in the cost of an essential commodity like fuel will, therefore, bring more hardships to the people and, as such, should not be contemplated.”

The opposition lawmakers challenged the All Progressives Congress-led Federal Government to come up with strategies that would lead to decrease rather than an increase in the cost of fuel, including revamping our nation’s refineries, “instead of always resorting to price increase to the detriment of Nigerians.”

The minority caucus, therefore, directed the PPMC to “immediately rescind its announcement and revert to the former price, with a view of a downward review.”

Peace Obi with Agency Report

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has directed its members in the Southwest region of the country to now sell Premium Motor Spirit (PMS) also known as petrol at N162 per litre.

The southwest Zonal Chairman of IPMAN, Alhaji ‘Dele Tajudeen made this known on Wednesday in Abeokuta, Ogun State.

The latest increment in the pump price of premium motor spirit by the IPMAN’s South-West chapter is the immediate response from the petroleum products marketers in the zone to the latest ex-depot price fixed at N138.62 per litre by the Federal Government.

Tajudeen explained that his members were left with no other option than to dispense the product at N162.

He noted that the directive followed the increase in the deport loading price of the product by the federal government, which placed a new price regime of the product at N151. 56k.

According to the IPMAN South-West chapter, its members have no option than to sell at N162 to be able to meet up with the overhead cost, since the federal government has decided to fix the price of the product at N151. 56k.

Enumerating some of the costs the marketers bore in ensuring that fuel made available at the fuel stations, Tajudeen said IPMAN members would have to make provision for the cost of diesel to run generator that will power the dispensing machines.

Adding that they also bear the cost of transporting the fuel from the depot to their respective filling stations and also settle their statutory levies with the appropriate regulatory agencies, among others..

According to him, by the time they finish paying all these levies, the cost of discharging fuel at the petroleum filling stations would have shored up to N160, hence dispensing the product at N162 will enable IPMAN members to be able to pay the staff bills and the stations’ gains.

By Peace Obi

      …PETROAN says filling station owners are being run out of business
Petroleum pump price in Nigeria has been increased to N151.56 per litre, with effect from yesterday, September 2, 2020.

This new price is up from the N138.60 it sold in August. Meanwhile, the Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) and other major stakeholders insist that under deregulation, government has no business fixing fuel prices, not without the knowledge and participation of major stakeholders.

The Nigeria National Petroleum Corporation (NNPC) downstream subsidiary, the Pipeline and Product Marketing Company (PPMC), issued a directive yesterday to all stakeholders and depots nationwide bringing new development to their notice. 

An internal memo at the Ibadan depot, to all the stakeholders on September 2, 2020, signed by the Depot Manager, D.O. Abalaka, read. ‘’Please be informed that a new product price adjustment has been effected on our payment platform.

“To this end, the price of premium motor spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (N151.56) per litre. This is effective 2nd September 2020.”

In a recent interview, the Managing Director of 11 Plc (formerly Mobil Oil Nigeria Plc), Adetunji Oyebanji, who also doubles as the Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), predicted that the pump price of petrol in September may be as high as N155 per litre.

The marketers had been selling petrol at a retail price of between N148 and N150 per litre, while the NNPC through its retail outlets have been selling at N145 per litre in August as the Petroleum Products Pricing Regulatory Agency (PPPRA) remained silent.

Following the deregulation of the downstream sector and the removal of fuel subsidy by the Nigerian federal government, the PPPRA had said that it would on a monthly basis, advise the NNPC and the oil marketers on the guiding retail price at which petrol would be sold across the country.

But some oil marketing groups have been arguing against this role of the PPPRA. Last week, President of the Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry said that government has no business determining prices of petroleum products, adding that the current regime in the hands of the Petroleum Product Pricing Regulatory Agency (PPPRA) comes with expensive frustration in the retail end of the value chain where members of PETROAN operate.

In an exclusive interview with Orient Energy Review, Dr Harry said the international standard is for the major stakeholders to meet with government agencies like, the Nigerian National Petroleum Corporation (NNPC), the PPPRA, the Department of Petroleum Resources and the Ministry of Petroleum Resources, and consider the succeeding price bands.

The downstream major stakeholders include, Nigeria Union of Petroleum and Natural Gas (NUPENG), Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), etc.

He said the idea of government representatives sitting away from the stakeholders, especially fuel station owners, and fixing the petroleum pump price at will is counterproductive.

“When a products buyer buys today at and buys at N128 per liter, but wakes up tomorrow and he is told the price band has jumped to N148, he thinks the product seller is dishonest. He hardly listens to the story of government fixing the price.

“August is gone. The feeling and tendency that Pipelines and Products Marketing Company (PPMC) and the Petroleum Product Pricing Regulatory Agency (PPPRC) may be coming up with another price band that will be inimical to the retail outlet owners and marketers, is killing,” he said in the interview last week.

Harry who was former President of Port Harcourt Chamber of Commerce Industry and Commerce stressed that the incessant fixing of prices is squeezing PETROAN members out of business, and soon there may be no more bulk buyers of petroleum products.

By Chibisi Ohakah, Abuja

Asharami Synergy, a Sahara Group Downstream Company has launched the “Value for money” campaign to give all classes of customers and consumers convenient access to safe, reliable, and top-quality diesel.

News report quoted Asharami Synergy Energy Acting CEO, Foluso Sobanjo, saying the campaign will reinforce the gold standard in diesel supply to protect the well-being of customers, their assets as well as the environment, while ensuring great value for money.

Sobanjo said the campaign was an emphatic response from Asharami Synergy to raise the bar of quality that would enable the sector stamp out the activities of agents involved in the proliferation of sub-standard petroleum products.

“As a leading company in the sector, Asharami Synergy is delighted to lead the charge for global standards in the market for diesel supply.

“We are empowering our customers to do and achieve more with our diesel because we uphold the philosophy of getting value for money,” he stated.

The report further said the campaign will cover various themes including, safety, convenience, quality, reliability, performance, and environmental sustainability.

“We are using our ‘value for money’ campaign to create awareness and give the buying public the diesel option that ensures peace of mind.

“We are leveraging our pedigree as a Sahara Group company and our several International Standard Organisation certifications to reposition the sector for a greater level of transparency, corporate citizenship and competitiveness.

“Sobanjo said Asharami Synergy continues to supply diesel to the doorstep of our customers through its door-2-door delivery initiative which promotes convenience, safety, and competitive pricing in the delivery of diesel in Lagos, Abuja, and Port Harcourt.

“Our Door-2-Door initiative has been commended by customers and industry analysts as a foremost hitch-free diesel supply solution to consumers.

“Not only do our customers trust our diesel because of its quality, nothing beats the pleasure they get from receiving exceptional service from the comfort of their homes or business locations.” he added.

By Chibisi Ohakah, Abuja

The Department of Petroleum Resources (DPR), says with five refinery plants built across the country and seven in the making, Nigeria will be a net exporter of petroleum products in the next two years.

Addressing minister of information and culture, Alhaji Lai Mohammed who paid a working visit to the DPR headquarters, the director and chief executive officer of DPR, Sarki Auwalu assured that the flow of import would reverse when the new refineries come on stream in the next two years.

He said the feat would be achieved through the combined capacity of 375,000 barrels per day from 27 modular refineries, 650,000 barrels from the Dangote refinery and the 450,000 barrels from the government refineries.

Specifically, he said the Dangote integrated refinery and petrochemical project with 650,000 barrel per day, the biggest in Africa, Waltersmith refinery with 7,000 capacity per day, and others that were almost near completion would come on stream.

The existing five included the four plants owned by the Federal Government through the Nigerian National Petroleum Corporation (NNPC) and the one owned and operated by Niger Delta Petroleum Resources.

Auwalu said that the aspiration of DPR was to grow the oil reserve to 40 billion barrels and gas to 210 trillion cubic feet. 

The department would also grow oil production from its current 2.4 million capacity to three million production capacity and as well reduced cost of production.

“Currently, we have oil prospective license about 61, more than 2, 000 wells that are producing crude oil and condensate, we have about 125 wells producing gas.

“We equally have 20 floating, loading and offloading vessels. 28 oil terminals, several float stations and oil and gas processing factories,” he said.

The director said that none of the functional oil facilities stopped work because of Covid-19 pandemic and the country maintained production and export.

He took the minister and the entourage to inspect server and control rooms in the headquarters where oil production, shipping and related activities were monitored real time.

In his remarks, the minister commended the management of DPR for the measures taken to prevent the COVID-19 pandemic to cripple the nation’s economy.

The minister also commended the government agency for its role in sustaining peace in the host communities of Niger Delta which had resulted to a halt in pipeline vandalism and restiveness.

“What the DPR does goes far beyond technical because their engagement of the oil producing communities is very key.

“When we came in 2015, production had dipped because of the restiveness in the Niger Delta.

“It is not by accident that we have some stability and modicum of peace in that area today. It is because of the policies that have been put in place to continue to engage the communities,” he said.

He also commended the DPR for the accountability it exhibits in the management of the flow of revenue to the nation, which goes straight into the Treasury Single Account (TSA).

By Chibisi Ohakah, Abuja