An Australian student has filed a lawsuit against her government for failing to make clear climate change-related risks to investors in government bonds.

It is thought to be the first such case in the world.

Katta O’Donnell, 23, filed the civil action in the Federal Court on Wednesday.

A spokesperson for the Australian Treasury said it was aware of the case, but could not comment on the specifics.

Government bonds are an investment where you lend money to the government.

In return, it promises to pay back a certain sum of money in the future, as well as interest in the meantime.

What is Australia doing to tackle climate change?
How fire burnt through half of Kangaroo Island
The suit comes after wildfires killed at least 33 people and millions of animals last year.

What does the lawsuit say?
“Australia is materially exposed and susceptible” to climate change risks, according to the statement filed with the Federal Court of Australia in Victoria state.

It alleges that the country’s economy and the national reputation in international financial markets will be significantly affected by the Australian government’s response to climate change.

The risks are crucial to an investor’s decision to trade in government bonds and an investor is entitled to be informed of those risks, it adds.

The student is seeking a declaration that the government breached its duty of disclosure and an injunction pausing further promotion of such bonds until it complies.

“O’Donnell the Commonwealth is the first case in the world dealing with climate as a material risk to the sovereign bond market,” her lawyers say on their website.

Who is Katta O’Donnell?
The fifth-year law student, who owns Australian government bonds, studies at La Trobe University and grew up in Healesville in the Central Highlands in Victoria.

Australia fires were far worse than any prediction
How the blazes ‘will be normal’ in warmer world
The area’s forests are vulnerable to the impacts of climate change, particularly higher temperatures and reduced rainfall.

“I want the Australian government to tell the truth about the risks posed by climate change,” she told the Financial Times.

“I don’t want to look towards a future where these types of bush fire are a common occurrence.”

BBC

The Director, Department of Petroleum Resources (DPR), Mr Auwalu Sarki, has enjoined Nigerian lubricant producers to look beyond the country’s shores  and target the export market in the distribution of their products.

The Head of Public Affairs, DPR, Mr Paul Osu in statement on Wednesday, said Sarki gave the charge when he hosted members of the Lubricant Producers Association of Nigeria (LUPAN) in a virtual meeting recently.

According to Sarki, members of LUPAN have the capacity and resources to produce for exports, as was done in the past.

He assured LUPAN that the Department for Resources would provide adequate support through its robust regulatory framework to enable them to achieve the mandate.

“The value created by LUPAN for the Nigerian economy is immeasurable.

“The DPR, as the regulator of the oil and gas industry in Nigeria, places high premium on its relationship with the association as partners in the realization of government’s aspiration for the sector,” he said.

He advised LUPAN to see DPR as a business enabler that is always ready to ensure investment success and sustainability for all stakeholders in the oil and gas sector.

Sarki also emphasized the need for better strategic partnership and continuous collaboration between DPR and LUPAN.

He reiterated that DPR was working with relevant government agencies to check the influx of sub-standard lubricants into the country and that solution would soon be provided for LUPAN members.

The DPR boss informed the members that the department would soon begin the implementation of a digital solution, using the short code messaging system to check for adulterated lubricants in the country.

On his part, the President of LUPAN, Alhaji Mustapha Adio, said that the association would continue to partner with the DPR for the development of the lubricant market in Nigeria.

He also commended the positive interventions of DPR in the creation of an enabling business environment for its members.

Peace Obi

The Minister of State for Petroleum Resources Chief Timipre Sylva has explained that the recent that the deregulation of the downstream oil sector embarked upon by the Federal Government was to ensure economic growth and development of the country.

Sylva made this known recently said it was unrealistic to continue to subsidise the Premium Motor Spirit (PMS) also known as petrol as it had no economic value.

He urged Nigerians to ignore recent misguided comments and insinuations on the issue.

“It has become expedient for the Ministry of Petroleum to explain misconceptions around the issue of Petroleum Products Deregulation.

“After a thorough examination of the economics of subsidising PMS for domestic consumption, the government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of Nnaira every year.

“More so, the subsidy was benefiting in large part the rich rather than the poor and ordinary Nigerians.

“Deregulation means that the Government will no longer continue to be the main supplier of Petroleum Products, but will encourage private sector to takeover the role of supplying Petroleum Products,” he said.

According to the minister, the removal of the subsidy cum deregulation of the downstream paves way for market forces to determine the price at the pump.

This, he said was in line with global best practices adding that government would continue to play its traditional role of regulation; to ensure that this strategic commodity was not priced arbitrarily by private sector suppliers.

“A regulatory function not unlike the role played by the Central Bank of Nigeria in the banking sector; ensuring that commercial banks do not charge arbitrary interest rates.

“Petroleum Products are refined from Crude Oil. Therefore the price of Crude (the feedstock) for the refining process will affect the price of the refined product,” he added.

Sylva noted that when Crude Oil prices were down, government, through its regulatory functions ensured that the benefits of lower Crude Oil prices were enjoyed by Nigerians by ensuring that PMS price was lowered.

He noted that government at that time indicated that increase in Crude Oil prices would also reflect at the pump.

“This is a necessary action taken by a responsible government in the overall interest of Nigerians.

“Indeed, one of the reasons we have been unable to attract the level of investments we desire into the refining sector has been the burden of fuel subsidy.

” We need to free up that investment space so that what happened in the Banking Sector, Aviation Sector and other Sectors can happen in the Midstream and Downstream Oil Sector.

” We can no longer avoid the inevitable and expect the impossible to continue. There was no time government promised to reduce Pump Price and keep it permanently low.

“Let us therefore ignore the antics of unscrupulous middlemen who would want status quo ante to remain at the expense of the generality of Nigerians.,” he added.

The minister noted that in addition to attracting investments and creating jobs and opportunities,the policy direction would free up trillions of Naira to develop infrastructure instead of enriching a few.

He said that government was very mindful of the likely impact higher PMS prices would have on Nigerians.

“To alleviate this, we are working very hard to roll out the auto-gas scheme, which will provide Nigerians with alternative sources of fuel and at a lower cost,” he said.

Peace Obi with Agency Report

A lethal combination of disease, extreme climate events and economic crises is threatening the smallest and most vulnerable nations of the world. To tackle it, we must overhaul how we understand and address economic vulnerability.

The COVID-19 pandemic has already triggered a massive global recession. Meanwhile, a record number of super cyclones have wreaked havoc in Asia and the Pacific while the Caribbean braces itself for up to six major Atlantic hurricanes over the coming months.

There is good reason to feel anxious. When Hurricane Maria struck my native Dominica in 2017, it obliterated 226 percent of annual economic output, to say nothing of the emotional and psychological pain of having communities destroyed and lives lost.

More recently, Cyclone Harold ploughed through Vanuatu, Tonga and Fiji, incurring US$750 million of damage, while exacerbating the risk of exposure to COVID-19.

Very often after hurricanes, countries must borrow heavily to rebuild their crippled economies, pushing them further into debt.

For the 32 disaster-prone ‘small states’ in the Commonwealth – most of whom have a population of 1.5 million or less – the reality is that COVID-19 profoundly compounds the ongoing risks they already face on a daily basis. Not only are they highly vulnerable to climate change and natural disasters, but their remote locations, high levels of debt, scant domestic markets and limited range of exports further expose them to other external shocks.

Within a few months, COVID-19 has ravaged their tourism industries, which contribute up to 50 per cent of national income in countries such as Maldives and Grenada, while slashing a fifth of vital remittance inflows. Overall, Commonwealth small states are set to lose 8.6 per cent of projected economic growth, with knock-on effects such as unprecedented levels of unemployment and disruption to social services.

Yet, despite the patent vulnerabilities they share, many small states are excluded from vital international financial support designed to help cope with COVID-19, including debt relief. This is due to outdated eligibility criteria based mainly on per capita income which classifies them as ‘middle’ or ‘high income’ countries, without fully taking into account their current challenges.

For example, the IMF has offered USD213.4 million worth of COVID-19 related debt relief to 29 of the poorest and most vulnerable nations. While commendable, the initiative will only benefit six of 54 Commonwealth countries – The Gambia, Malawi, Mozambique, Rwanda, Sierra Leone and Tanzania. It will not cover any of the 25 small island developing states in the Commonwealth, which remain prone to the existential threat of climate change.

Similarly, the G20 has offered to temporarily suspend debt repayments for more than 70 countries classified as ‘least developed countries’ or which meet certain criteria under the World Bank International Development Association. In this case, 30 Commonwealth countries are eligible, but a number of small vulnerable states such as Jamaica, Belize and Eswatini do not qualify because their average annual income per person is above the US$1,175 threshold, or they are deemed creditworthy enough to borrow from other funds.

So, while acknowledging these huge efforts of the global community to deal with the financial impacts of the pandemic, it is clear the nature and size of the support on offer is simply not enough.

Still, the extraordinary circumstances brought about by COVID-19 offer a rare opportunity to reform the international debt architecture so it is more fit-for-purpose.

Most urgent is that the moratorium on external debt repayments is extended to all developing countries – including small and vulnerable states classified as middle or high income – recognising their specific vulnerabilities.

The Commonwealth Secretariat’s ongoing work on a Universal Economic Vulnerability Index will also be vital. Still in development, this index aims to better capture different aspects of vulnerability – such as remoteness, economic exposure and proneness to natural disasters – rather than focus on per capita income alone.

We hope to build a consensus among our members on the definition and measurement of vulnerability, to help us better understand the needs of countries in crisis and propose the best solutions.

Without this altruistic approach to debt relief, many vulnerable countries are at a great risk of a debt crisis with alarming socio-economic impacts. We simply cannot afford to sit back and allow such a setback to human development.

Written by Patricia Scotland, Commonwealth Secretary-General

McDermott International Ltd. has been awarded an engineering and procurement contract from Azikel Petroleum Ltd. for the modular 12,000 barrels per day hydroskimming refinery located in Yenagoa, Bayelsa State in Nigeria.

The scope of the contract involves comprehensive engineering and design of the inside battery limits (ISBL), as well as equipment supply inside the ISBL, including all marked products. This follows McDermott’s successful completion of the front-end engineering design, having worked with Azikel Petroleum on the project since 2018.

“McDermott has been an integral part of what is one of the few refineries to be built in Nigeria and we look forward to expanding our presence further by delivering the next phase of this important project,” said Tareq Kawash, Senior Vice President of McDermott in Europe, Middle East and Africa.

“Our decades of modularization experience makes us uniquely positioned to deliver this scope and the team has done a great job of developing a simple process design that meets all of Azikel’s product specification requirements.”

Azikel will build the facility, with early construction including site recovery and backfilling, and completion of roads, perimeter wall, drainage and security gates. The construction also includes the building of administrative, maintenance and terminal operator buildings, as well as the erection of feedstock tanks. Construction is also underway on a 200m pier with shoreline protection, which will be used for the delivery of the refinery modules and other equipment.

Dr. Eruani Azibapu Godbless, President of Azikel Group, stated that the Azikel Refinery is a flagship project for Nigeria, as it is the first hydroskimming refinery to advance to this level of achievement within the modular refinery realm.

He also added that McDermott was awarded the contract based on the high level of confidence and professionalism it exhibited and aims to complete the project on schedule in 2021 within budget.

Nigerian lawmakers have begun investigation into oil spills in the Niger Delta region and the subsequent clean-up projects embarked upon by the Federal Government in the last five years.

The House of Representatives Ad-Hoc Committee on Oil Spill Clean-Ups in the Oil Producing States of Nigeria which began investigative hearing on Tuesday noted that it was a step forward in the chamber’s resolve to set up a panel to investigate the issue of oil spills in the Niger Delta and government’s clean-up programmes so far.

The Nigerian National Petroleum Corporation (NNPC) recently disclosed that it has along with its joint venture partners spent $360 million on cleaning up the Niger Delta oil heartland in the past two years.

Speaking at the commencement of the investigation, the Chairman of the committee, Amiru Tukur, recalled that on March 10, 2020, the House adopted a motion titled ‘Need to Investigate the Clean-Up of Oil Spills in the Oil-Producing States in the Last Five Years.’

According to Tukur, the terms of reference of the committee include to investigate oil spill clean-ups and remediation in the oil producing states.

He further hinted that the committee would also investigate the activities of National Oil Spill Detection and Response Agency in the Joint Investigation Visits, and to assess compliance with the Environmental Guidelines and Standards for the Petroleum Industry in Nigeria.

He said, “In the course of this investigation, we will be engaging with the Department of Petroleum Resources, which has the statutory responsibility of supervising the petroleum industry in Nigeria and centrally guaranteeing that the operations do not degrade the environment in the course of their activities.

“The National Oil Spill Detection and Response Agency, whose statutory responsibility is to among other things, coordinate the Joint Investigation Visits and ensure the remediation of impacted sites and monitor oil spill drill exercises and facilities inspection.”

Tukur also disclosed that prior to the COVID-19 lockdown, the committee had sent out invitation letters to relevant stakeholders requesting for data on the number of oil spills recorded by various indigenous and international oil companies.

He said, “Some of the oil companies we wrote to have already responded, but many have still not responded.

“I want to use this opportunity to urge all those oil companies that received our letters to ensure the requested documents are forwarded to the committee.”

Tukur recalled that the House had noted the continued sufferings of the Niger Delta people as a result of over 50 years of oil spills and consequent pollution of the freshwater systems, degradation of water quality and lowering of food web productivity.

The House, according to him, made reference to the Annual Report of the Department of Petroleum Resources, which indicated that 5,669 incidents of oil spills were recorded, with 9,718.22 barrels spilled, and only 800.55 barrels recovered.

According to Tukur, the objective of the investigation is to understand the level of clean-ups in the last five years and the extent of compliance with the Environmental Guidelines and Standards in the Petroleum Industry.

“It is our firm belief that at the end of this exercise, this ad hoc committee will come up with recommendations that will further strengthen the existing institutional frameworks and ultimately bring succour to the people of the Niger Delta region,” he stated.

The Speaker, Femi Gbajabiamila, while declaring the event open, noted that the Niger Delta region had “long fed the nation’s coffers and paid the price in environmental devastation at a scale rarely seen anywhere in the world.”

Peace Obi

The progress of the 3,050 megawatts Mambilla Hydropower Plant has again been hampered by the issue of compensation payment by the Federal Government to land owners where the power plant is located.

Orient Energy Review gathered that while the Federal Government had made payments for survey works and sensitisation of the affected communities, the non-payment of compensation is imbedding the progress of the project.

Officials of the Federal Ministry of Power hinted that the Taraba State Government had yet to send the list of beneficiaries to be compensated several months after the request was made by the Federal Government.

This is after the Federal Ministry of Power had released N700m to the Taraba State for the survey work on the project site. The survey was to ascertain the actual land area for the project before the commencement of compensation to beneficiaries.

Officials at the Federal Ministry of Power, however, said the payment of compensation was yet to commence because of the delay in getting the list of land owners.

The Special Assistant to the Minister of Power on Media and Communications, Aaron Artimas, said, “You see the problem is that we have done our own part by releasing money for the site survey and sensitisation.

“That is where we stopped because the state government is supposed to assign other tasks to us since land is vested on state governments. So we are waiting for them to submit the list of beneficiaries for compensation so that the exercise will commence.”

The Mambilla power project had dragged on for about four decades without considerable progress in its execution.

In February this year, the Chairman, House Committee on Power, Magaji Aliyu, declared that the over 40-year-old project only existed on reports and papers.

Artimas hinted that the Federal Government would fund the compensation of beneficiaries, but  noted that the COVID-19 outbreak had slowed the sequence of events on the project.

He stated, “By our calculation, we would have been paying the compensation by now. However, the report hasn’t come to the ministry yet.

“We are waiting for the Taraba State Government to submit that report so that we can move into the next phase of compensation.”

Peace Obi

Nigeria has dispatched over 16 vessels carrying about 950,000 metric tons of liquefied natural gas (LNG) valued at N354billion in the last few months to various destinations. The country is also the fourth largest producer of LNG in the world.

The gradual lifting of the lockdown measures by countries is believed to have bolstered the demand in energy across the globe.

Orient Energy Review gathered that the consignment is the first batch of the 2020 exports by Nigeria as gas demand is on the increase in the ports of Spain, China, Portugal and Turkey.

Sines Port in Portugal alone took delivery of 141,000 cubic meters of the product. The Port had already taken delivery of 315,900 cubic meters of liquefied natural gas from Onne in the last six months.

Other vessels which included LNG Lokoja were delivered to China, Spain, and United States- 66,000 tons; Maran Gas Olympias, 70,000tons; LNG Cross River, 63tons; LNG Borno, 66,000 tons; LNG Bayelsa, 63,000 tonnes; Castillo De Caldelas, 70000tons; Valencia Knutsen, 70,000tons; LNG Bonny II, 72,000tos; Catalunya Spirit, 65,000 tons; LNG Finima II, 72,000 tons and LNG River Niger, 63,000 tons.

Nigeria LNG Limited operates six liquefaction units also known as LNG trains producing 22 million mtpa. This amounts to roughly 10 per cent of the world’s LNG consumption. Trains 1, 2 and 3 have production capacities of 3.2 mmtpa, whilst trains 4, 5 and 6 have capacities of 4.1 mmtpa each.

As of April 2020, trains 1-3 had nominal production capacities of 3.3 mtpa.

According to the International Gas Union’s World LNG 2017 report, Nigeria was the fourth largest LNG exporter by share after Qatar, Australia, and Malaysia between 2015 and 2016.

Train 7 project upon completion is expected to increase the company’s production capacity at its plant on Bonny Island, Finima, Rivers State from 22 million metric tons to 30 million metric tons per year.

Train 7 is expected to create over 12,000 jobs at construction, will generate more revenue to the government in dividends, taxes and feed gas purchases and will further reduce the level of gas flaring in the country.

To further boost export of the cargo this year, the Nigeria Liquefied Natural Gas Limited (NLNG) has appointed one of Japan’s leading banks and the core unit of Sumitomo Mitsui Financial Group – Sumitomo Mitsui Banking Corporation (SMBC) and Guaranty Trust Bank Plc, as financial advisers, for Train 7 project estimated at between $10 billion and $12 billion.

It was learnt that the Train 7 project would be financed partly from NLNG balance sheet and through third party corporate loans from export credit agencies and some key International and local banks.

Peace Obi

The Akwa-Ibom State government has applauded Star Deepwater Petroleum Limited (a Chevron company and operator of the Agbami unit) and its parties in the Agbami field for the donation of a  science laboratory complex to Senior Science College, Ndon Eyo, Onna Local Government Area of the State.

Star Deepwater Petroleum Limited, a subsidiary of Chevron along with other Agbami partners which includes Star Deepwater Petroleum Limited, Famfa Oil Limited, Nigerian National Petroleum Corporation (NNPC), Equinor Nigeria Energy Company Limited, and Prime 127 Nigeria Limited, made the donation recently.

The State Governor, Udom Gabriel Emmanuel who gave the commendation on Thursday, July 16, 2020 during the handover of the educational facility to the State government, assured that the donation will be put to good use.

The Governor who was represented by the Deputy Governor, Mr Moses Frank Ekpo, thanked the Agbami partners for the gesture and said that the facility will contribute to the development of education in the State.

Other dignitaries from the State included Dr Dominic Ukpong, the Commissioner for Health, Prof Nse Udo Essien, the Commissioner for Education, Mr  Charles Udoh, the Commissioner for Information & Strategy.

Commenting on the donation, Esimaje Brikinn, General Manager, Policy, Government and Public Affairs Chevron Nigeria Limited, explained that the facility, consisting of a well-equipped Physics, Chemistry and Biology laboratories, is designed to improve the study and learning of science subjects in Akwa-Ibom state.

Brikinn highlighted that the Agbami partners have built, equipped and donated 39 Science Laboratory Complexes across the country in addition to eight conventional and hybrid libraries plus the Agbami Medical and Engineering Professionals Scholarship (AMEPS) to boost education development in Nigeria.

“Since inception of the AMEPS in 2009, over 16,547 students from all the states of Nigeria have benefitted from the scholarship programme, out of which 715 students have graduated with first class degrees,” he noted.  He added that about 1,489 students from Akwa-Ibom State have benefited from the Agbami scholarship programme.

Esimaje further stated that beyond the education sector, the Agbami parties have also made substantial investments in health infrastructure, especially in the management of tuberculosis disease through the building of 28 standard chest clinics with consulting rooms; fully equipped laboratories with mobile X-ray units and gene expert machines, in health institutions across the country. “The parties have also donated nine mother and childcare centers and one medical diagnostics laboratory in some States in Nigeria”, he stated.

Peace Obi

The Nigerian National Petroleum Corporation (NNPC) has said the corporation may not achieve a swift relocation of tank farms from their current locations along Ijegun, Kirikiri areas in Lagos and other parts of the country until full rehabilitation of the refineries and the completion of the Dangote refinery. This is to avoid dislocation in the supply and distribution chain of petroleum products nationwide.

This, the apex oil company said, will enable the nation to exit fuel importation before their relocation. The corporation made the submission at a hearing by the House of Representatives’ Ad-hoc Committee on the relocation of tank farms in residential areas of Ijegun, Kirikiri.

The Managing Director of the corporation, Mr Mele Kyari, told the lawmakers that the NNPC is not averse to the relocation of the tank farms and depots sited in residential areas.

The GMD who was represented by the corporation’s Chief Financial Officer, Mr Umar Ajiya, told the committee that the tank farms and depots were a major artery for receiving and distributing imported petroleum products to all parts of the country.

According to him, the abrupt relocation of the tanker farms would trigger a crisis not only in the downstream sector but also in the nation’s economy in general.

“We are not opposed to the yearnings of the communities or the relocation of the tank farms and depots, but we want it to be done in phases because of the huge financial commitments by the stakeholders.

“If they are relocated abruptly, even the banking sector would be affected because of the loans they granted for the establishment of the depots,” he stated.

Chibisi Ohakah, Abuja