Nigerian National petroleum Corporation (NNPC) says 19 pipeline points vandalised in month of March representing about 47 per cent decrease from 32 points recorded in February 2020.

The Nigerian National petroleum Corporation (NNPC) has disclosed that 19 pipeline points were vandalised in the month of March representing about 47 per cent decrease from the 32 points recorded in February 2020.

The corporation disclosed this on its Monthly Financial and Operations Report (MFOR)for the month of March released in Abuja, on Wednesday.

It said that of the pipelines attacked, Atlas Cove-Mosimi accounted for 53 per cent, while Mosimi-Ibadan recorded 21 per cent and Suleja-Minna accounted for the remaining 26 per cent.

The report assured that NNPC, in collaboration with the local communities and other stakeholders, would continuously strived to reduce the menace to the barest level.

It said that  218.37billion Cubic Feet (BCF) of natural gas was produced in March, translating to an average daily production of 7493.65million Standard Cubic Feet per day (mmscfd)

It added that  3,119.89BCF of gas was produced from the period of March 2019 to March 2020, representing an average daily production of 7,912.05mmscfd during the period.

It explained that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and 8.95 per cent, respectively, to the total national gas production.

“Out of the 218.37BCF of gas supplied in March, 120.73BCF of gas was commercialised, consisting of 33.45BCF and 87.28BCF for the domestic and export market respectively.

“This translates  to 1,235.56mmscfd of gas to the domestic market and 3,817.40mmscfd of gas supplied to the export market for the month,” it added.

The report further said that  55.63 per cent of the average daily gas produced was commercialised, while the balance of 44.37 per cent  was re-injected, used as Upstream fuel gas or flared.

“Gas flare rate was 9.08 per cent for the month under review i.e. 679.54mmscfd, compared with average gas flare rate of 8.43 per cent i.e. 666.90mmscfd for March 2019 to March 2020,” it said.

During the month under review, the report also noted a trading deficit of ₦9.53billion for March 2020 compared to the ₦3.95billion surplus posted in February 2020.

The report revealed that the over 300 per cent decline in March 2020 earnings was due primarily to the huge decrease of 181 per cent in the National Oil Company’s Upstream Subsidiary, Nigerian Petroleum Development Company’s (NPDC).

This, it added, was due to the decline in crude oil prices precipitated by  the Coronavirus-induced global slowdown.

The pandemic,  it said, led to reduction in exports and dwindling world oil consumption; combined with deficits posted by the refineries, among others.

The NNPC MFOR further  indicated a total crude oil & gas export sale of 256.19million dollars  in March 2020, which decreased by 30.89 per cent, compared to last month’s.

” Of the total sales, crude oil export sales contributed 184.59million dollars (72.05 per cent) of the dollar transactions compared with 281.14million  dollars contribution in the previous month; while the export gas sales amounted to 71.60million dollars in the month.

“The March 2019 to March 2020 crude oil and gas transactions indicated that crude oil & gas worth 4.95billion dollars was exported,” it said.

In the Downstream, it noted that  1.73billion litres of Premium Motor Spirit (PMS) also known as petrol, translating to 59.72mn liters/day were supplied for the month.

The corporation in the report noted that it had continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.

The March 2020 MFO report of the NNPC is the 56th edition in the series that began in 2016.

(NAN)

The Nigerian National Petroleum Corporation (NNPC) has said that 218.37 billion Cubic Feet (BCF) of natural gas was produced in March 2020, translating to an average daily production of 7493.65Million Standard Cubic Feet per Day (mmscfd).

This was contained in its Monthly Financial and Operations Report for March, 2020, a release by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru said.

According to the report, 3,119.89BCF of gas was produced for the period March 2019 to March 2020, representing an average daily production of 7,912.05mmscfd during the period.

It explained that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and 8.95 per cent, respectively, to the total national gas production.

Out of the 218.37BCF of gas supplied in March 2020, according to the report, 120.73BCF of gas was commercialized, consisting of 33.45BCF and 87.28BCF for the domestic and export market respectively, translating to 1,235.56mmscfd of gas to the domestic market and 3,817.40mmscfd of gas supplied to the export market for the month.

The report said 55.63 per cent of the average daily gas produced was commercialized, while the remaining 44.37 per cent was re-injected, used as Upstream fuel gas or flared.

Gas flare rate was 9.08 per cent for the month under review i.e. 679.54mmscfd, compared with average gas flare rate of 8.43 per cent i.e. 666.90mmscfd for March 2019 to March 2020.

During the month under review, the report also announced a trading deficit of ₦9.53billion for March 2020 compared to the ₦3.95billion surplus posted in February 2020.

Orient Energy Review

The huge and unprecedented oil market imbalance that faced the industry in April in the wake of COVID-19 pandemic required an unparalleled response from producers, according to His Excellency Mohammad Sanusi Barkindo, Secretary General of the Organization of Petroleum Exporting Countries (OPEC).

Underlining the importance of the two-year agreement, signed by OPEC and non OPEC oil producing countries in the Declaration of Cooperation (DoC) on April 12, and revalidated earlier this month on June 6, Barkindo said he was confident that more stability would return to oil markets in the second half of the year, but more work is required to draw down existing oil inventories to help rebalance markets. 

“As we see countries begin to open up, we will see demand start to come back,” Barkindo said. “I remain optimistic but cautious the worst is over and a recovery will be in full swing in the second half of this year, with stocks beginning to be withdrawn. However, what shape the recovery will take, whether a V shape, W or inverted hockey stick, is still uncertain. 

“Nevertheless, I am hopeful by the end of this year we will begin to see some further semblance of stability restored to oil markets. Then we will be in a position to move into the next phase of sustaining that stability. Hence the importance of the two-year duration of the historic agreement signed by the OPEC Plus group of countries and non OPEC producers.” 

Setting out the scale of the “unprecedented demand destruction” suffered by oil markets in April, Barkindo said oil demand had fallen by 20 to 24 million barrels a day, from a high of 100 million barrels per day, as economic and societal lockdowns, in response to the COVID-19 coronavirus, ravaged the global economy. It led to the largest single supply adjustment in history with OPEC and non-OPEC producers adjusting oil output, including from those outside of the DoC, by almost 20 million barrels a day. 

Stressing the criticality to the global economy of restoring stability to oil markets, Barkindo said he had seen projections that forecast a contraction of nearly 20 per cent, or US $1.5 trillion, in energy investments as a result of the volatility and uncertainty around markets. 

“Investors in all sectors of the economy are allergic to uncertainties. Therefore, it is important we restore stability and sustainability to oil markets, not only for producing countries but also for consuming countries. Both know a lack of investment in energy today will sow the seeds of another energy crisis in the medium to long term. That would not be in the interests of the global economy,” Barkindo explained. 

Turning to the energy transition and the environment, Barkindo said addressing carbon emissions would remain a central challenge for the oil and gas industry post COVID-19. He urged the global community to address the twin challenge of climate change and energy poverty, and added that all energy sources would be needed to meet global demand for energy in the medium to long term. 

“There are over 7.5 billion people in our world. By 2040 the global population will increase by 1.6 billion people. Climate change and energy poverty are two sides of the same coin and only the global community, working together, can tackle this issue,” Barkindo said. 

The ADIPEC Energy Dialogue is a series of weekly online thought leadership events created by dmg events, organisers of the annual Abu Dhabi International Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the rapidly changing energy market. 

ADIPEC attracts more than 155,000 energy professionals from 67 countries; including senior decision-makers and energy industry thought leaders, over 2,200 exhibiting companies and 23 national exhibiting pavilions as oil and gas companies convene to share views and best practices to address the long-term impact of the triple challenge of lower oil prices, weaker demand and over supply. 

Held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; hosted by the Abu Dhabi National Oil Company (ADNOC); and supported by the UAE Ministry of Energy & Industry, the Abu Dhabi Chamber, and the Abu Dhabi Tourism and Culture Authority, ADIPEC is scheduled to takes place at the Abu Dhabi National Exhibition Centre (ADNEC), United Arab Emirates.

Orient Energy Review

Equatorial Guinea has announced the adoption of the new Regulation of Petroleum Operations, Regulation No. 2/2020 of June 15th, 2020. The country’s Ministry of Mines and Hydrocarbons (MMH) said the new regulation modernizes the country’s existing regulatory framework, and is intended to maintain Equatorial Guinea’s attractiveness for foreign investors.

It Regulation notably covers key matters such as the extension of the productive life of mature fields though mechanisms allowing operators to generate greater value from these assets; the exploration of marginal and onshore fields along with investments in deep and ultra deep water acreages; the monetization of gas and the development of the petrochemicals industry, along with further integration of the national workforce and local companies across the value-chain.

The new Regulation is seen as a pillar of Equatorial Guinea’s recovery strategy post Covid-19, and clarifies several aspects of petroleum operations in the country. It also comes as Equatorial Guinea pushes for additional local participation across the value-chain, and is developing several gas monetization and downstream projects. The Regulation notably stipulates that refining, petrochemicals and commercialization activities can be realized under a specific license granted by the MMH (Article 93) on the basis of technical and financial capabilities notably.

It also strictly prohibits gas flaring, except under very specific circumstances, and stipulates that Field Development and Production Plans must always be designed in such a way as to allow the use, conservation or commercial exploitation of associated gas (Article 149). It also clarifies new rules and frameworks on exploration and production from mature and marginal fields, defining the former as a field that has entered into decline and is no longer economically viable, and the former as a field that has produced 90% of its proven hydrocarbons reserves (Article 41). Such fields will benefit from 10-year contracts, which can be renewed every five years after study and assessment by the MMH.

“This new Regulation gives an opportunity to the Republic of Equatorial Guinea to continue being a world reference in the hydrocarbons sector. To maintain our position, we must be prepared, with updated norms and policies, to respond to the great challenge that the recovery of commodity prices, the creation of employment and the execution of projects after the Covid-19 pandemic will pose for the sector,” declared Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.

“It is for this reason that the Ministry of Mines and Hydrocarbons, in its desire to continue betting on the growth and economic diversification of the country, has decided to update the regulations to answer all the questions of the industry, as well as create a space of trust with all the actors in the country’s hydrocarbon sector,” he added.

Chibisi Ohakah, Abuja

JERA and Tokyo Gas will co-host the Japan LNG & Gas Virtual Summit on 8-9 July 2020.

A statement yesterday said the virtual summit will be held with the support and participation of the Ministry of Economy, Trade and Industry (METI) and the Institute of Energy Economics (IEEJ).

The convening platform for the global industry will be opened by a keynote from Takeshi Soda, Director, Oil & Gas Division, METI. As the world’s largest LNG importer, Japan depends on the fuel for 40% of its electric power generation.

Tokyo Gas recently announced their intentions to maintain LNG purchasing levels, as well as their overseas investment plan in infrastructure projects and key opportunities continue to exist for collaboration within the industry.

“We are seeing a renewed appetite from the regional community to reconnect following a period of lockdown and restrictions. Key Japanese players are ready to start reconnecting with peers locally and regionally.

The regional piece is really interesting in part due to South East Asia being a key region for the re-sale of LNG and future trading activities, but also due to the wider opportunities within lower carbon energy resources.” says Nina Febo, Conference Producer of the Japan LNG & Gas Virtual Summit.

Renegotiation of long-term LNG supply contracts are well underway and Host Sponsors of the Virtual Summit– JERA and Tokyo Gas – will be discussing the need for greater flexibility to be instilled into contracts particularly to ensure security of supply and a strong economic recovery. Jonty Shepard, Head of Global LNG, BP will be one of the major suppliers speaking at the Summit and will be discussing different solutions available for collaboration moving forward.

The subject of LNG demand creation in Asia Pacific is as important as ever given the unprecedented low levels of demand experienced throughout the first half of 2020.
The topic of demand stimulation will be tackled by Gen Kunihiro, President & COO, Diamond Gas International Pte. Ltd. and Tetsuya Furuhata, Director General, Research and Analysis Department; Director, LNG Information Team, JOGMEC. They will assess what infrastructure and regulations are needed in Southeast Asia to encourage greater LNG usage.

dmg Events, along with its partners JERA and Tokyo Gas, invite all key stakeholders seeking to play a role in the region’s economic recovery to join the Japan LNG & Gas Virtual Summit, which will reconvene the global LNG & Gas community. Attendees from across the world will have the opportunity to network and host private meeting, in addition to resuming collaborative discussions at a critical point for the industry and the world’s economic recovery and sustainable future.

Chibisi Ohakah, Abuja

Taking cue from a landmark U.K. Supreme Court ruling last year against a London-based miner, Thousands of Nigerians are reportedly asking British judges to give them permission to sue Royal Dutch Shell Plc in London over environmental damage caused by oil spills 3,000 miles away in Africa.

Independent Online (IOL) reported Tuesday that Shell, which has blocked the suit twice from entering British courts, insists that the litigation should be heard in the West African country and not in a foreign country.

The report noted that the litigation threats are coming on the heels of international oil companies still hurting from squeezed profits as the coronavirus pandemic has destroyed demand and pushed down prices.

“Adding to its worries, Shell might also face legal battles in the U.K., as well those already underway in the Netherlands, that could expose the firm to higher damages for causing pollution in the developing world,” IOL said. The agency quotes Robert Meade, an attorney at Bracewell LLP who specialises in oil and gas, recalling an April 2019 decision that allowed a group of Zambians to proceed to trial against Vedanta Resources Plc for pollution caused by a copper-mining unit clarifies the law around a company’s duty of care to those affected by operations of a subsidiary. 

Still, “it does not mean that a parent company might be liable for its subsidiaries’ actions or inaction,” he said. Daniel Leader, a partner at Leigh Day representing the Nigerian claimants, said the English courts should hold the oil major to account in English courts “for the devastating damage Shell has caused to their communities over many years.”

Nigeria is Africa’s largest oil producer, and depends on crude for about half of government revenue and 90% of export earnings. However, thousands of spills over decades have destroyed the livelihoods of fishing and farming communities in the south-south of the country, including more than 40,000 people from the Bille and Ogale communities who are trying to force Shell to pay compensation and clean up.

While the two communities have been hurt by spills, a Shell Petroleum Development Company spokesman said that most are caused by oil theft, pipeline sabotage and illegal refining. Despite preventative measures such as cages around wellheads and community engagement, SPDC says it saw a 40% rise in spills over 100 kilograms related to theft and sabotage last year compared to 2018.

Amnesty International in 2018 questioned Shell’s claims concerning the cause of spills, finding the company likely understated the number attributable to “operational” faults. SPDC, the operator of a joint venture that includes the Nigerian National Petroleum Corporation (NNPC) as the majority shareholder, denied the allegations.

Following an earlier hearing in the U.K., the judge said “the court has to be very careful before passing qualitative judgments on the legal systems of other sovereign nations.” He said he had seen no evidence the Nigerian judiciary wasn’t taking “concrete and effective steps to improve the speed with which cases such as this one are dealt with.”

But Leigh Day says there is “sadly no prospect of justice in Nigeria.” Impoverished Nigerians have minimal chance of success against deep-pocketed oil companies in overburdened domestic courts, according to local lawyers and activists.

“Our legal system is so enslaved to procedure and technicalities and, of course, the multinationals have mastered this,” said Iniruo Wills, cited as a former environment minister in one of Niger Delta states, who is representing several communities against SPDC. “It’s very rare to find a judge who can cut through and get to the meat of the matter.”

Erabanabari Kobah, an environmental scientist and campaigner, said companies are less interested in winning pollution cases than “filing frivolous processes to frustrate you, to make sure that you cannot access justice,” he said. An unnamed SPDC’s spokesperson said the accusations brought by the communities should be dealt with in Nigeria, where judges have local knowledge and where the justice system is capable of dealing with the claims.

IOL report said although two English courts ruled the Ogale and Bille communities failed to show that Royal Dutch Shell had sufficient control over SPDC, the Supreme Court’s subsequent dismissal of Vedanta’s bid to prevent a trial in the U.K. has provoked new hope.

“The Vedanta decision is entirely applicable to Shell,” Mark Dummett, Amnesty International’s head of Business and Human Rights, was quoted. Allowing the lawsuit to go ahead “would undoubtedly encourage other communities in the Niger Delta to take cases against Shell to the U.K.” Bracewell’s Meade said a ruling backing the Nigerians would provide an incentive to file in England rather than the original country.

“There will be an increase in tort-claim tourism,” Meade said. Despite the aggrieved communities’ renewed optimism, the Supreme Court isn’t guaranteed to rule once more against the multinational company accused of polluting African land.

U.K. judges look at the level of control a parent company exercises over a foreign unit in every case, and there are “some crucial differences” between the two lawsuits, according to Lucas Roorda, a postdoctoral researcher at Utrecht University’s Centre for Accountability and Liability Law. The English lower courts found Vedanta “to be much more involved in its subsidiary’s operations” than Shell’s parent company, he said.

Chibisi Ohakah, Abuja

A forecast has said that global demand for oilfield services (OFS), measured in the total value of exploration and production (E&P) company purchases, is set for a massive 25% yearly drop in 2020 as a result of the COVID-19-caused downturn.

A Rystad Energy analysis released on Tuesday shows that spending is expected at $481 billion this year and take the first step on the road to recovery in 2021, when it is forecast to tick up by just about 2%.

The forecast published by Petroleum Africa, further said that the recovery will accelerate further in 2022 and 2023, with OFS spending by E&Ps reaching some $552 billion and $620 billion, respectively.

Despite the boost, purchases will not return to the pre-COVID-19 levels of $639 billion achieved in 2019,” the report said, adding that the comeback will not be visible across all OFS segments from 2021, however. It said that well services and the pressure pumping market will be the first to see a boost, while other markets will need to get further depressed before recovering.

“Despite the recovery in oil prices, it will take many quarters before all segments of the supply chain see their revenues deliver consistent growth. In case of an upturn, operators would prefer flexible budget items with production increments and high-return investments with short pay-back times. Therefore, we expect well service segments to be the first to recover, while long-lead segments will pick up much later,” the report quoted Rystad Energy’s Head of Energy Research Audun Martinsen.

Dividing OFS into six segments – maintenance and operations, well services and commodities, drilling contractors, subsea, EPCI and seismic – only the first three will manage to rise in 2021, while the latter three will have to brace for another year of falling revenues before they can expect improvements.

The Rystad Energy forecast went on to say that in absolute numbers, the maintenance and operations segment is poised for consecutive yearly rises in the next three years after slumping to $167 billion this year from $202 billion in 2019. “We expect spending in this segment to recover to $175 billion in 2021, $193 billion in 2022 and $205 billion in 2023”.

It said that the well services and commodities segment is set for a similar recovery, but only after slumping to $152 billion in 2020 from $231 billion last year – the biggest decline among segments in absolute numbers. “Here we see spending at $163 billion in 2021, $189 billion in 2022 and $210 billion in 2023.” the report said.

The same pattern also applies to drilling contractors, with the segment falling to $46 billion in 2020 from $62 billion last year, and then rising to $47 billion in 2021, $54 billion in 2022 and $57 billion in 2023. The subsea segment, on the other hand, will fall from $25 billion in 2019 to $24 billion in 2020 and decline further to $22 billion in 2021 – before starting to rebound to $24 billion in 2022 and to $29 billion in 2023.

Similarly, EPCI is set to fall to $81 billion in 2020 from $105 billion last year. It will slide further to $74 billion in 2021, before rising back to $81 billion in 2022 and growing to $106 billion a year later. Lastly, seismic is poised to decline to $12 billion in 2020 from $15 billion in 2019. It will first keep dropping to $10 billion in 2021, before rebounding to $11 billion in 2022 and to $13 billion a year later

“At best there will only be certain regions and service segments that will see their revenues grow consistently. For the whole supply chain to recover, we will likely need to wait until after 2023, when we expect service purchases to return to their 2019 levels,” adds Martinsen.

Suppliers will face a continued challenge turning their bottom lines back into black and deal with their debt. However, while the oil and gas market is expected to take years to recover, the impending energy transition could be a potential avenue of hope as it could open up new markets for OFS players to leverage their capabilities and grow.

Chibisi Ohakah, Abuja

Global leader in Drops prevention, Dropsafe, has thrown its weight behind a new virtual reality platform called DROPS VR, from Singapore-based software firm DrillingVR and global O&G industry safety group DROPS. The unique platform is designed to drive awareness and education around Dropped Objects (Drops) prevention in industries such as Oil and Gas (O&G). 

DROPS VR is a collaborative online programme that encompasses training apps, exhibition areas and virtual conference spaces – all in virtual reality. Firms will be able to access new online Drops prevention training tools for free via the system, aiding dissemination of HSE best practice on a global scale.

The virtual reality space supports continuing efforts by industries such as O&G, power generation, marine and mining to drive down fatalities and injuries from Drops. This challenge has been underlined by the Covid-19 pandemic, which has impacted operational practices, while placing greater emphasis on online collaboration, and shifting critical training functions to a digital setting.

The DROPS VR software enables personnel in all roles to train more effectively to identify and neutralise Drops hazards on offshore assets. Best practice Drops prevention technology, such as high quality, corrosion resistant steel mesh nets, can be deployed within the software. Practical application of Drops prevention products in a versatile virtual environment prepares personnel for the real world – where mistakes cost lives.

Dropsafe recognised the potential of the project early on, sponsoring the further development of the software platform. As well as providing Drops prevention expertise and digital models of its best-practice prevention systems, Dropsafe has a virtual booth in the online exhibition space. 

Joachim van der Meulen, Secretary, DROPS Asia, said: “We believe that Drops incidents can be eliminated through a combination of high-quality engineered solutions, robust and comprehensive regulations, and well-trained, competent workforce.

“Dropsafe’s expertise has been invaluable during the process of creating the DROPS VR and we invite businesses and professionals from across the HSE sphere to share their expertise and engage with the platform as we develop it further.”

Mike Rice, Commercial Director, Dropsafe, added: “Although Drops prevention has come a long way in recent years, the O&G industry must continue to push forward by adopting the latest technologies in the fight against Drops.

“We are hugely excited by what Joachim and his team have already achieved, and with further support it is clear that this platform will help to start a new chapter Drops prevention.”

Orient Energy Review

DÜRR NDT, a German manufacturer of systems for industrial radiography along with AAP NDT has developed a Non-Destructive Testing software solution that for the first time unifies the entire NDT workflow, including all test procedures in a single system.

The company in a statement noted that the software solution – DRIVE NDT in a single system, carries out all test procedures from order entry, the assignment of inspectors, equipment, instructions and standards, to test report generation, approval and archiving.

Adding that its centralized administration permits the targeted control of all workflows and provides an overview of the status of all inspection orders in real-time.

It stated that DRIVE NDT is a web-based application that it can be easily used on any tablet or smart phone allowing users to access it anytime, anywhere, and be constantly up-to-date.

According to the DÜRR NDT, a glance at the DRIVE NDT dashboard is all it takes to be completely informed about the current overall status and any upcoming tasks.

“With DRIVE NDT, individual test reports for all NDT methods can be easily created and managed. The automatic import of order and test data including from external applications and devices, facilitates order creation and avoids any transcription errors. All test reports can be viewed and edited by authorized inspectors, anytime, anywhere.

“Every change is logged and the revision status of the report is automatically updated. The integrated revision management and the seamless and transparent process chain ensure comprehensible results and peace of mind during internal and external audits. In addition, end-customers gain confidence in the test results and product quality.

“Test objects can be effortlessly set up in DRIVE NDT, for example, pipelines in refineries including their isometry, pressure vessels or turbine blades along with their drawings.

“A new order can be created from these test objects with just one click; all necessary customer specifications, test instructions, standards etc. are already assigned to the test object and pre-configured.

“Furthermore, documents of all kinds can be added and managed for inspections and orders in DRIVE NDT, as well as allocated to individual inspections and inspectors,” the statement read.

It further stated that DRIVE NDT can be used to easily manage everything related to NDT personnel. For example, the availability of employees and their assignment to orders, as well as management of certificates, radiation doses and medical examination appointments.

Adding that another powerful feature is equipment management which can be used to monitor inspection devices and consumables such as whether a device is available, where it is located, and when the next maintenance or calibration needs to be performed.

The company noted that support is provided by automatic system notifications for events related to inspection orders, as well as medical checkups due, recertification of personnel, maintenance of equipment, and process monitoring of workstations.

“You can also set up appropriate lead times and send additional email notifications which can be extremely helpful in hectic workday situations.

“Furthermore, DRIVE NDT has been designed so that it is possible for this data to be evaluated however you like, thus providing an ideal platform to support statistical evaluations such as predictive maintenance.

“DRIVE NDT is the key to digitization of the entire NDT workflow and provides unprecedented transparency and, most importantly, enormous increases in efficiency.”

Peace Obi

Cyberhawk becomes first and only drone-based operator to be granted full global aviation approval across all Shell facilities.

Global contract follows successful two-year proof-of-concept at a Shell construction project in USA valued at over $6bn.

Cyberhawk, the global leader in drone-based inspection and creator of iHawk, a cloud-based asset visualization software, announced today that it has secured a five-year, multimillion-dollar software contractwith Royal Dutch Shell PLC (Shell).

iHawk will become Shell’s next generation visualization software platform for all onshore, offshore and subsea assets, as well as all global construction projects.

The contract follows the successful integration of iHawk at a construction project valued at over $6bn in the USA, where it is now being used by over 800 monthly users and has been rolled out at further sites in the UK, Central America and Africa.

Cyberhawk, which has been working with Shell since 2012, will support the super major’s digital transformation strategy, providing a central platform for all digital and visual data sources. Additionally, iHawk will provide a fully enabled IoT solution by seamlessly integrating third party sensors and APIs specifically developed for Shell.

Following the completion of Shell’s first-in-class droneaudit earlier this month, the contract accompanies Cyberhawk’s global aviation authorization within Shell.This permits drone-based inspections and surveys across all Shell facilities and marks Cyberhawkas the first and only drone operator to be approved to work on all Shell sites globally.

Chris Fleming, Cyberhawk CEO, stated: “We are particularly proud of the collaborative relationship we have built with Shell which has seen us provide a software solution that can be quickly adopted and adapted for a variety of assets, across many sectors including construction, upstream, downstream or subsea.

“This contract is further validation of the strength of our iHawk software solution, which has already been deployed by a number of customers to transform the way they manage their critical energy infrastructure across multiple sectors including oil and gas, electrical utilities and renewables. This deal further establishes our ability to set the gold standard in terms of data collection and asset management solutions.”

Orient Energy Review

Too often, the discussion about climate change — and the call to leave fossil fuels in the ground— is largely a western narrative

As African oil and gas countries struggle with Covid-19’s devastating impact on demand, two international groups seem to be celebrating it.

Earlier this month, the Organisation for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA) described the low oil prices caused by the pandemic as a “golden opportunity” for governments to phase-out fossil fuel support and usher in an era of renewable energy sources.

“Subsidising fossil fuels is an inefficient use of public money and serves to worsen greenhouse emissions and air pollution,” OECD Secretary-General Angel Gurría said in a joint OECD-IEA statement. “While our foremost concern today must be to support economies and societies through the Covid-19 crisis, we should seize this opportunity to reform subsidies and use public funds in a way that best benefits people and the planet.”

I would argue that the OECD and IEA don’t necessarily know what’s best for the people who live on this planet. Pressuring governments to stop supporting fossil fuels certainly would not be good for the African oil and gas companies or entrepreneurs striving to build a better future. And it could be downright harmful to communities looking at gas-to-power initiatives to bring them reliable electricity.

Too often, the discussion about climate change — and the call to leave fossil fuels in the ground— is largely a western narrative. It does not factor in the needs of low-income Africans who could reap the many benefits of a strategic approach to oil and gas operations in Africa: reduced energy poverty, job creation, and entrepreneurship opportunities, to name a few.

Ironically, a policy that would jeopardize Africans’ ability to realize those benefits is being recommended at the same time protesters across America are calling for equity in some of the same areas. Although police violence against people of color is at the center of the protests — a response to the horrific death of a black man, George Floyd, after a white police officer knelt on his neck for nearly nine minutes — the protests also point to social and economic disparities between the races in America.

While I don’t want to exploit the death of George Floyd, I do see parallels between the racial disparities in America and the struggles of Africans whose lives could be improved through oil and gas. I always see a common pattern of ignoring black and African voices.

Too often in America, the value of black lives was not given proper consideration until George Floyd’s death forced the topic to the forefront and rightly so. And on the global stage, OECD and IEA are dismissing the voices of many Africans who want and need the continent’s oil and gas industry to thrive. I would advise these organizations not to ignore the needs of poor people in African countries.

As it stands, African energy entrepreneurs, the African energy sector, and Africans who care about energy poverty are basically saying, “I can’t breathe.”

It’s time to get the knees off their necks.

The Dangers of Energy Poverty

Consider the impact of energy poverty. Approximately 840 million Africans, mostly in sub-Saharan countries, have no access to electricity. Hundreds of millions have unreliable or limited power at best.

Even during “normal times,” energy poverty is dangerous. The household air pollution created by burning biomass, including wood and animal waste, to cook and heat homes has been blamed for as many as 4 million deaths per year. How will this play out during the pandemic? For women forced to leave their homes to obtain and prepare food, sheltering in place is nearly impossible. What about those who need to be hospitalized? Only 28 percent of sub-Saharan Africa’s health care facilities have reliable power. Physicians and nurses can’t even count on the lights being on, let alone the ability to treat patients with equipment that requires electricity —  or store blood, medications, or vaccines. All of this puts African lives at risk.

That’s what makes gas-to-power initiatives so critically important: It only makes sense for African countries to use their vast natural gas reserves for power generation. And we’re already making progress on that front. Today, about 13 African countries use natural gas produced domestically or brought in from other African countries, and there’s every reason to believe this trend will grow.

In Cameroon, for example, Victoria Oil and Gas PLC already provides domestic gas for power generation, and its subsidiary, Gaz du Cameroun (GDC), has agreed to provide the government gas for a new power station with the potential to accommodate growing demand.

And in Mozambique, the Temane power plant, also known as Mozambique Gas-to-Power, is being developed now, and plans are underway to develop a second plant. Both will rely on Mozambique’s Rovuma basis for feedstock.

I have heard calls, including some from the OECD, for the development of sustainable energy solutions to meet Africa’s power needs. Great — let’s go for it. I’m all for renewable energy solutions, but Africans should not be forced to make either-or-decisions in this area. Energy poverty is a serious concern, and it’s wrong to make it more difficult for African countries to use a readily available natural resource to address it.

Investment — Not Aid

One of the benefits of oil and gas operations in Africa is they provide opportunities for both indigenous companies and for foreign ones. And as foreign companies comply with local content laws, they invest in the communities where they work. Africa needs those investments, particularly training and education programs that empower people to make better lives for themselves.

I want to be clear: Africa does not need social programs, even educational programs, that come in the form of aid packages. What’s more, offering Africa aid packages to compensate for a halt or slow-down of oil and gas operations will not do Africans any good. I tried to make that point recently during a friendly debate with Prof. Patrick Bond, a very bright man and a distinguished professor at the University of the Western Cape School of Government. He argued that Africa should keep all of its petroleum resources in the ground to minimize greenhouse gas emissions and prevent further climate change. Developed nations, the professor continued, should compensate Africa for that sacrifice, and Africa could use that money to develop other opportunities. No. This is not the time for Africa to be calling for more aid. Africa has been receiving aid for nearly six decades, and what good has it done? We still don’t have enough jobs.

Investment creates opportunities, meaning Africans aren’t receiving, they’re doing. They’re learning, working, building, growing, deciding. We, as Africans, must be responsible. Our young people should be empowered to build an Africa we all can be proud of. Relying on the same old policies of the past, relying on aid, simply isn’t going to get us there.

The truth is, no matter how you feel about the American Shale Revolution, Africans can learn from it. One of the reasons it succeeded is because you had small businesses willing to take a chance on new technology. They worked hard, and in the end, they boosted production. America became the largest crude oil producer in the world. Those companies made something extraordinary happen, and so can African businesses. We need more entrepreneurs willing to seize opportunities and, in some cases, make mistakes. That’s how we grow and learn. We need government leaders to do their part by creating a welcoming environment for foreign investors and establishing local content policies that result in opportunities for business partnerships, quality jobs, and learning opportunities for Africans.

Africa is capable of building a better future, of ending energy poverty, strengthening our economy, and improving the lives of everyday Africans. If we’re smart about it, and we work together with purpose, our oil and gas resources can help us get there.

And that’s why this is a horrible time for OECD, IEA, or any other outside organizations, to interfere with our natural resources.

Don’t Stand in Our Way

I understand and respect the OECD and IEA’s commitment to preventing climate change. But when you describe the chance to harm a major African economic sector as a great opportunity, there’s something wrong.

When you put independent African oil and gas companies at risk, you’re saying your objectives are more important than African livelihoods and aspirations.

American institutions are coming under fire for failing to recognize that Black Lives Matter and to work alongside African-American communities to create positive change.

I encourage the OECD and IEA to take a different approach.

This is an opportunity for all of us to join forces, to take a team approach to growing Africa’s energy sector, and to do it without dismissing Africa’s right to capitalize on its own natural resources.

NJ Ayuk is Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group, and the author of several books about the oil and gas industry in Africa, including Billions at Play: The Future of African Energy and Doing Deal.