Tuesday, April 23, 2024
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COVID-19: JUMEME Supports Tanzanian Govt With Free Electricity

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A mini-grid operator in Tanzania co-funded by the European Commission, has launched a “COVID-19 Relief Program” to support the Tanzanian government and local populations in their effort to fight the COVID-19 pandemic.

JUMEME in a statement on Tuesday said the company would deploy its local solar-hybrid mini-grids to provide 10 healthcare facilities in the Lake Victoria Islands with free electricity services for the coming three months.

According to the energy company, its kind gesture is hinged on the fact that free and reliable electricity supply will help keep operations run smoothly, adding that it will also free up much needed financial resources to better prepare the local healthcare facilities to fight COVID-19.

In addition to its 12 solar-hybrid mini-grids already in operation in the Lake Victoria area, JUMEME is also finalizing the implementation of 11 mini-grids on the shores of Lake Tanganyika, in the Northwest of Tanzania, which will connect 10 more health centres once operating. JUMEME intends to extend its relief program to this area to support their local health centres as soon as the new project is completed. 

The Chief Physician at the Bwisya Hospital, Dr Kole, said: ”We are grateful to JUMEME for the (electrification) services they offer to Bwisya Hospital for 24 hours a day without fail. We also appreciate the availability of electricity which enables us to conduct clinical procedures, surgery, and other essential health services to the people of Ukara island.’’ 

Health centres are common in Tanzania’s remote rural areas. Patients rely on these facilities to receive first aid and treatments for common infections, before being referred to larger, better-equipped facilities if needed.

In JUMEME’s project areas, which were selected for their remote, off-grid location, only one healthcare facility can be deemed a hospital, which is located in Bwisya on the island Ukara. These smaller facilities are especially vulnerable, as they receive less funding than larger hospitals.

Peace Obi

COVID-19: Why FG Won’t Pay Over ₦100bn Electricity Bill For Nigerians

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Nigeria Minister of Power, Alhaji Saleh Mamman has given reasons why it is not feasible for the federal government to pay a two-month electricity bill for Nigerians as part of the palliatives to citizens to cushion the effect of the lockdown due to the outbreak of COVID-19.

Mammam in an interview with BBC Hausa said that though the matter was yet to be concluded, however, explained .that the complexity around who benefits from the two-month free electricity being proposed by the members of the National assembly will make it difficult for government to implement.

According to him, with over 80 million without access to electricity in the country, the government would end up paying electricity bill for “120 million people; the question is who are you paying for, those privileged people in Maitama.”

He said ” this matter has not been concluded yet, we are only looking at the possibility of doing so, the fact is, you see this power supply the first thing we do when the government declared this lockdown because of COVID-19 is to ensure there is a stable power supply for people to be more comfortable staying at home.

“You see, there are first those generating this power, then those transmitting it as well as those distributing the power to various household, those generating this power are hundred business private business people that own all of their equipment and it is strictly business.

The Minister further explained that ” if you talk about paying the electricity bill for citizens, the first question you ask is who are those that fall under the category of beneficiaries, you know we have over 80 million people who don’t have access to electricity in Nigeria and we have over two hundred millions Nigerians so if you decided to pay bill for one hundred and twenty million people, the question is who are you paying for, those privileged people in Maitama, Victoria Island and other highbrow areas or those with companies and doing businesses and making profits while you abandoned the less privilege who don’t even have access to the electricity.

He said “you see this free electricity bill will be paid with taxpayers money and you want to serve the interest of the privileged Nigerians, then the less privilege and the vulnerable what are going to do for them? He queried.

The minister also affirmed that it will be a very difficult task for the government to pay the two-month electricity bill for citizens, stressing that putting the bill together will amount to over a hundred billion naira.

He said “every month what we pay as electricity bill, I mean what the distribution company are paying with the little support from government is a little above fifty billion naira monthly.

Mamman said he has explained to members of the National assembly that initiated the idea of free electricity for Nigerians citizens and if they insisted, they should come up with ideas to go about the action.

Peace Obi

FG Considers Opening Up Fuel Importation To Private Businesses

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Europe Faces Renewed Lockdowns, More Refineries Risk Closures

The Petroleum Products Pricing Regulatory Agency (PPPRA), yesterday, said it is engaging with the Central Bank of Nigeria (CBN) to open up the importation of petroleum products to private businesses.

The ongoing engagement is believed to usher the downstream sector into a liberalized and market-determined pump price for petroleum products.

For several years now, only the Federal Government, through the Nigerian National Petroleum Corporation, NNPC imports the products due to the pricing regulation which entailed fixed and uniform pump price across all locations in the country.

The pricing regime had shot out private businesses as profit margins are wiped out by in-built subsidy in the pump price.

The Executive Secretary of the PPPRA, Mr. Abdulkadir Saidu, in a statement on Monday disclosed that the engagement with the CBN was aimed at determining the applicable Foreign Exchange (forex) rates for the importation of petroleum products and modality for accessing the forex window by the oil marketing companies.

“This rate is reflected in the pricing template to determine the expected open market price of the product. This means that going forward, the guiding price to be advised, will be determined based on the rates quoted by CBN. “The price is expected to guide the sale of PMS in Nigeria.

“In fact, we plan to extend the same pricing mechanism to Aviation Turbine Kerosene (ATK), Automotive Gasoline Oil (AGO), among others. The whole essence of the price band is to ensure price efficiency that is beneficial to both the consumers and oil marketers.”

Saidu further stated that the country’s existing refineries were expected to play key roles in the current fuel pricing regime, adding that the policy would also create immense opportunity for increased private sector participation in the industry.

He said, “The Nation’s refineries are required to key into the new pricing regime just like all other operators both private and public. The new regime will open up the Oil and Gas Sector for more private players and investments in refineries, storage facilities and transportation. 

“At the end of the day, we expect to see more private players operating in the industry. The liberalization of the entire industry will make it possible for private investors to recoup their investments, leading to a more vibrant downstream sector.”

Peace Obi

E/Guinea Plans New Local Content Legislations

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..Contracts and Projects to become 100% Equatoguinean

Equatorial Guinea has Local Content Policy plan for a new legislation that will compel IOCs and NOCs to operate contracts and projects that will have to be 100 percent Equatoguinean. 

The country’s minister for Mines and HydroCarbons (MMH), Mr Gabriel Mbaga Obiang Lima who dropped the hint in South Africa yesrerday during a webinar hosted by Africa Oil & Power in partnership with the African Energy Chamber and the Ministry of Mines and Hydrocarbons of Equatorial Guinea, said this will be implemented in the upstream, downstream and petrochemicals sectors.

Obiang provided key insight on the country’s plans in working through the current state of global oil markets and the COVID-19 pandemic.

According to him, considering 2020 and 2021 ‘the lost years’ amid the low oil price and COVID-19 pandemic, Obiang stressed the importance of flexibility and taking a realistic approach in order for oil producers all over the world and, especially in Africa to recover from the downturn – a message in line with the African Energy Chamber’s Commonsense Agenda for the Oil & Gas Industry, released yesterday in South Africa said.

He said moving ahead, the MMH will push three key messages to national oil companies (NOCs) and international oil companies (IOCs), namely, the need to maintain shareholder value which will benefit the people of Equatorial Guinea and ensure that revenue generation is maintained. 

Also, ensuring the safety of operations for the workers who have continued amid the COVID-19 pandemic. He hinted on the importance of maintaining and supporting the relationships between NOCs and IOCs, stating that both sides work through the challenges together.

With a central focus on now being the time for local industries to enter the business of oil and gas, the minister said for Africa to be competitive in the global oil and gas industry, it needed to get in control of its resources.

“We could take this opportunity and not just be involved in the extraction of our resources but in the processing and the marketing sectors because, very few Africans are involved in this aspect of the oil and gas business,” explained the minister.

With 2020 having been declared as Equatorial Guinea’s Year of Investment (YoI), the MMH had maintains that the initiative is still important for the country’s development and it will continue and lead into 2021 focusing on its petrochemical advancement.

“By the fourth quarter of this year, I should be able to announce the different projects that we will be doing. For example, the [gas] backfilling, we will have the first production of [gas] backfilling in November and we expect to have the groundbreaking on some of our refinery projects,” he revealed

Lima said Equatorial Guinea is actually launching new petroleum regulations to support its hydrocarbons industry with emphasis on improving local content. According to him, the country is pushing forward with its Year of investment initiative and plans to make project announcements in Q4 2020.

Maintaining his optimism, the minister said to the attendees of the webinar that: “I believe this pandemic presents new opportunities for the African continent. It is a new opportunity because some of the historical service operators are leaving countries with the resources and they are having to realize that they have to do the work themselves.”

“This is a chance for African entrepreneurs to enter the market and operate their installations themselves rather than waiting for the pandemic to end. It is a great opportunity but, with this great opportunity, we still need to be realistic,” he added.

In taking a realistic approach, the minister said with the second half of the year rapidly approaching, small African oil producing countries needed to focus on research and development, give license extensions and look at 2021 as the year of rethinking. In doing this, the minister provided that Equatorial Guinea would see new legislation announcements which would include the limitations of expatriates which will be for three years and, encouraging the national service industry to take responsibility and prepare for the rebound.

“The other regulation that we are planning to launch this week is mineral and petroleum regulation,” the minister announced. The launch of this regulation will allow the MMH to develop on its mining industry and see that there is a good deal of local participation in the sector.

Next month, the MMH will also release a new petroleum regulation that will focus on its downstream sector. “This is really what we believe will be the future for our oil and gas industry. The refining and downstream is key because it can create a lot of jobs and it is about time that we processed our resources in-country,” said the minister.

Chibisi Ohakah 

Buhari Extends Lockdown by One Week, approves gradual easing

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Special report on the Presidential Amnesty Programme

The lockdown imposed on Abuja, Lagos and Ogun states as part of the measures adopted by the Federal Government to contain the spread of the Coronavirus in the country has been extended by one week.

President Muhammadu Buhari announced the extension in a national broadcast on Monday night, adding that he has also approved a phased and gradual easing of the lockdown from May 4.

“Based on the above and in line with the recommendations of the Presidential Task Force on COVID-19, the various Federal Government committees that have reviewed socio-economic matters and the Nigeria Governors Forum, I have approved a phased and gradual easing of lockdown measures in FCT, Lagos and Ogun States effective from Monday, 4th May, 2020.

“However, this will be followed strictly with aggressive reinforcement of testing and contact tracing measures while allowing the restoration of some economic and business activities in certain sectors,” Buhari said.

New Measures Announced

Announcing new nationwide measures including dusk-to-dawn curfew and mandatory use of face masks in public from May 4, Buhari said, “There will be an overnight curfew from 8pm to 6am.

“This means all movements will be prohibited during this period except for essential services.”

The President also imposed a ban on non-essential inter-state passenger travel until further notice.

However, he said that partial and controlled interstate movement of goods and services would be allowed for the movement of goods and services from producers to consumers.

“We will strictly ensure the mandatory use of face masks or coverings in public in addition to maintaining physical distancing and personal hygiene. Furthermore, the restrictions on social and religious gatherings shall remain in place.”

He urged state governments, corporate organisations and philanthropists to support the production of cloth masks for citizens.

While stating that the lockdown in the FCT, Lagos and Ogun States would remain in place until these new ones come into effect on Monday May 4, Buhari said the Presidential Task Force would provide sector specific details to allow for preparations by governments, businesses and institutions.

He however said state governors may choose to adapt and expand the guidelines, based on their unique circumstances provided they maintain alignment with the guidelines issued above.

Total lockdown in Kano for Two Weeks

The President also ordered the enforcement of a total lockdown in Kano State for a period of two weeks effective immediately. He said the purpose of the lockdown was to curtail the spread of the Covid-19 pandemic to other neighbouring states.

“The federal government shall deploy all necessary human, material and technical resources to support the state in controlling and containing the coronavirus pandemic and preventing the risk of further spread to neighbouring states.”

Peace Obi

Highlights of FG’s new measures in fighting COVID-19

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FG Can No Longer Bear Electricity Tariff Shortfalls – Buhari

The highlights of the new nationwide measures announced by President Mohammadu Buhari during his third national broadcast on Monday night as part of the Federal Government’s efforts at curbing the spread of the novel Coronavirus in Nigeria are as follows;

  • The lockdown imposed on Abuja, Lagos and Ogun states has been extended by one week.
  • FG has approved a phased and gradual easing of the lockdown from May 4.
  • Selected businesses and offices can open from 9am to 6pm
  • There will be an overnight curfew from 8pm to 6am.
  • This means all movements will be prohibited during this period except for essential services;
  •  There will be a ban on non-essential inter-state passenger travels until further notice;
  • There will be partial and controlled interstate movement of goods and services from producers to consumers; and
  • We will strictly ensure the mandatory use of face masks or coverings in public in addition to maintaining physical distancing and personal hygiene.
  • The restrictions on social and religious gathers remain in place.
  • A total lockdown in Kano State for a period of two weeks effective immediately

Note also that State Governments, corporate organisations and philanthropists are encouraged to support the production of cloth masks for citizens.

For the avoidance of doubt, the lockdown in the FCT, Lagos and Ogun States remains in place until the new ones come into effect on Monday, 4th May 2020 at 9am.

The Presidential Task Force shall provide sector specific details and timing guidelines to allow for preparations by Governments, businesses and institutions.

State Governors may choose to amend adapt and expand based on their unique circumstances provided they maintain alignment with the guidelines issued on public health and hygiene.

Peace Obi

COVID-19 Lockdown: President Muhammadu Buhari’s Full Speech

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Full text of the president’s speech:

ADDRESS BY H.E. MUHAMMADU BUHARI,
PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE CUMULATIVE LOCKDOWN ORDER OF LAGOS AND OGUN STATES AS WELL AS THE FEDERAL CAPITAL TERRITORY ON COVID- 19 PANDEMIC
AT THE STATE HOUSE, ABUJA

MONDAY, 27th APRIL, 2020

1. Fellow Nigerians    

2. I will start by commending you all for the resilience and patriotism that you have shown in our collective fight against the biggest health challenge of our generation.

3. As at yesterday, 26th April 2020, some three million confirmed cases of COVID nineteen have been recorded globally with about nine hundred thousand recoveries. Unfortunately, some two hundred thousand people have also died as a result of this pandemic.

4. The health systems and economies of many nations continue to struggle as a result of the coronavirus pandemic.

5. Nigeria continues to adopt and adapt to these new global realities on a daily basis. This evening, I will present the facts as they are and explain our plans for the coming month knowing fully aware that some key variables and assumptions may change in the coming days or weeks.

6. Exactly two weeks ago, there were three hundred and twenty three confirmed cases in 20 States and the Federal Capital Territory.

7. As at this morning, Nigeria has recorded one thousand two hundred and seventy-three cases across 32 States and the FCT. Unfortunately, these cases includes 40 deaths.

8. I will use this opportunity to express our deepest condolences to the families of all Nigerians that have lost their lives loved ones as a result of the COVID nineteen Pandemic. This is our collective loss and we share in your grief.

9. Initial models predicted that Nigeria will record an estimated two thousand confirmed cases in the first month after the index case.

10. This means that despite the drastic increase in the number of confirmed cases recorded in the past two weeks, the measures we have put in place thus far have yielded positive outcomes against the projections.

11. The proportion of cases imported from other countries has reduced to only 19% of new cases, showing that our border closures yielded positive results. . These are mostly fellow Nigerians returning through our land borders. We will continue to enforce land border arrival protocols as part of the containment strategy.

12. Today, the Nigerian Centre for Disease Control (NCDC) has accredited 15 laboratories across the country with an aggregate capacity to undertake 2,500 tests per day across the country.

13. Based on your feedback, Lagos the State Government and the FCT with support from NCDC is have established several sample collection centers in Lagos and the FCT. They are also reviewing their laboratory testing strategy to further increase the number of tests they can perform including the accreditation of selected private laboratories that meet the accreditation criteria.

14. Several new fully equipped treatment and isolation centres have been operationalised across the country thereby increasing bed capacity to about three thousand. At this point, I will commend the State Governors for the activation of State-level Emergency Operation Centres, establishment of new treatment centres and the delivery of aggressive risk communication strategies.

15. Over ten thousand healthcare workers have been trained. For their protection, additional personal protective equipment have been distributed to all the states. Although we have experienced logistical challenges, we remain committed to establish a solid supply chain process to ensure these heroic professionals are can work safely and are properly equipped.

16. In keeping with our Government’s promise to improve the welfare of healthcare workers, we have signed a memorandum of understanding on the provision of hazard allowances and other incentives with key health sector professional associations. We have also procured insurance cover for five thousand frontline health workers. At this point, I must commend the insurance sector for their support in achieving this within a short period of time.

17. Nigeria has also continued to receive support from the international community, multilateral agencies, the private sector and public-spirited individuals. This support has ensured that critical lifesaving equipment and materials, which have become scarce globally, are available for Nigeria through original equipment manufacturers and government-to-government processes.

18. The distribution and expansion of palliatives which I directed in my earlier broadcast is still ongoing in a transparent manner. I am mindful of the seeming frustration being faced by expectant citizens. I urge all potential beneficiaries to exercise patience as we continue to fine tune our logistical and distribution processes working with the State Governments.

18.19. I have directed the Central Bank of Nigeria and other financial institutions to make further plans and provisions for financial stimulus packages for small and medium scale enterprises. We recognise the critical role that they play in Nigeria’s economy.

19.20. Our Security Agencies continue to rise to the challenge posed by this unusual situation. While we feel deeply concerned about isolated security incidents involving hoodlums and miscreants, I want to assure all Nigerians that your safety and security remains our primary concern especially in these exceedingly difficult and uncertain times. As we focus on protecting lives and properties, we will not tolerate any human rights abuses by our security agencies. The few reported incidences are regrettable, and I want to assure you that the culprits will be brought to justice.

20. I urge all Nigerians to continue to cooperate and show understanding whenever they encounter security agents. Furthermore, for their protection, I have instructed the personnel of the security agencies be provided with the necessary personal protective equipment for their own protection.
21.

21.22. As we continue to streamline our response in the epicenters of Lagos and the FCT, I remain concerned about the unfortunate developments in Kano in recent days. Although an in-depth investigation is still ongoing, we have decided to deploy additional Federal Government human, material and technical resources to strengthen and support the State Government’s efforts. We will commence implementation immediately.

22.23. In Kano, and indeed many of other States that are recording new cases, preliminary findings show that such cases are mostly from interstate travel and emerging community transmission.

23.24. Drawing from these, I implore all Nigerians to continue to adhere strictly to the advisories published by the Nigeria Centre for Disease Control. These include regular hand washing, social physical distancing, wearing of face masks/coverings in public, avoidance of non-essential movement and travels and avoidance of large gatherings remain paramount.

24.25. Fellow Nigerians, for the past four weeks, most parts of our country have been under either Federal Government or State Government lockdowns. As I mentioned earlier, these steps were necessary and overall, have contributed to slowing down the spread of COVID nineteen in Nigeria.

25.26. However, such lock downs have also come at a very heavy economic cost. Many of our citizens have lost their means of livelihoods. Many businesses have also shut down. No country can afford the full impact of a sustained lockdown while awaiting the development of vaccines or cures.

26.27. In my last address, I mentioned the Federal Government will develop strategies and policies that will protect lives while preserving livelihoods.

27.28. In these two weeks, the Federal and State Governments have jointly and collaboratively worked hard on how to balance the need to protect health while also preserving livelihoods, leveraging global best practice while keeping in mind our peculiar circumstances.

28.29. We assessed how our factories, markets, traders and transporters can continue to function while at the same time adhering to the NCDC guidelines on hygiene and social distancing.

29.30. We assessed how our children can continue to learn without compromising their health.

30.31. We reviewed how our farmers can safely plant and harvest in this rainy season to ensure our food security is not compromised. Furthermore, we also discussed how to safely transport food items from rural production areas to industrial processing zones and ultimately, to the key consumption centers.

31.32. Our goal was to develop implementable policies that will ensure our economy continues to function with while still maintaining our aggressive response to the COVID nineteen pandemic. These same difficult decisions are being faced by leaders around the world.

32.33. Based on the above and in line with the recommendations of the Presidential Task Force on COVID-19, the various Federal Government committees that have reviewed socio-economic matters and the Nigeria Governors Forum, I have approved for a phased and gradual easing of lockdown measures in FCT, Lagos and Ogun States effective from Monday, 4th May, 2020 at 9am.

33.34. However, this will be followed strictly with aggressive reinforcement of testing and contact tracing measures while allowing the restoration of some economic and business activities in certain sectors.

34.35. The highlights of the new nationwide measures are as follows;
a. Selected businesses and offices can open from 9am to 6pm;
b. There will be an overnight curfew from 8pm to 6am. This means all movements will be prohibited during this period except essential services;
c. There will be a ban on non-essential inter-state passenger travels until further notice;
d. There will be partial and controlled interstate movement of goods and services from producers to consumers; and
e. We will strictly ensure the mandatory use of face masks or coverings in public in addition to maintaining physical distancing and personal hygiene.

Furthermore, the restrictions on social and religious gathers shall remain in place. State Governments, corporate organisations and philanthropists are encouraged to support the production of cloth masks for citizens.

35.36. For the avoidance of doubt, the lockdown in the FCT, Lagos & Ogun States shall remain in place until these new ones come into effect on Monday, 4th May 2020 at 9am.

36.37. The Presidential Task Force shall provide sector specific details and timing guidelines to allow for preparations by Governments, businesses and institutions.

37. The above are guidelines. State Governors may choose to amend adapt and expand based on their unique circumstances provided they maintain alignment with the guidelines issued on public health and hygiene.

38.39. These revised guidelines will not apply for to Kano State. The total lockdown recently announced by the State Government shall remain enforce for the full duration. The Federal Government shall deploy all the necessary human, material and technical resources to support the State in controlling and containing the pandemic.

39.40. I wish to once again commend the frontline workers across the country who, on a daily basis, risk everything to ensure we win this fight. For those who got infected in the line of duty, be rest assured that Government will do all it takes to support you and your families during this exceedingly difficult period. I will also take this opportunity to assure you all that your safety, wellbeing and welfare remains paramount to our Government.

40.41. I will also recognise the support we have received from our traditional rulers, the Christian Association of Nigeria, the Nigerian Supreme Council for Islamic Affairs and other prominent religious and community leaders.

Your cooperation and support has significantly contributed to the successes we have recorded to date. I will urge you all to please continue to create awareness on the seriousness of coronavirus among your worshippers and communities while appealing that they strictly comply with public health advisories.

41.42. I will also thank the Nigeria Governors’ Forum and the Presidential Task Force for all their hard work to date. Through this collaboration, I remain confident that success is achievable.

42.43. I also wish to thank corporate organisations, philanthropists, the UN family, the European Union, friendly nations, the media and other partners that have taken up the responsibility of supporting our response.

43.44. And finally, I will thank all Nigerians again for your patience and cooperation during this difficult and challenging period. I assure you that government shall continue to take all necessary measures to protect the lives and livelihoods our citizens and residents.

I thank you for listening and may God bless the Federal Republic of Nigeria.

Recapitalise Discos To Avoid Complete Power Sector Collapse –TCN Warns

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TCN to Fix Overloaded Sokoto Transmission Line Before Yuletide

The Transmission Company of Nigeria has called for the recapitalization of the power Distribution Companies (DisCos), warning that failure to take necessary steps to ensure that the DisCos recapitalise would lead to the nation’s power sector complete collapse.

The Transmission Company of Nigeria stated this while announcing a drop in the amount of electricity taken by Abuja Electricity Distribution Company on Saturday night.

It said, “As at 7:00pm on April 25, due to rainfall, Abuja dropped load and was off-taking only 0.5MW and 16MW from TCN’s 330kV substations in Katampe and Gwagwalada respectively.

“Meanwhile, the average load AEDC usually takes from Katampe and Gwagwalada Substations are 250MW and 150MW respectively.”

TCN in a statement said that the load in Katampe substation was 288.0MW at 5:00pm, but dropped to 174MW at 6:00pm, 9.9MW at 6:30pm and 0.5MW at 7:00pm.

“The load offtake by AEDC then increased to 33.2MW at 8:39pm,” it said.

The TCN said all AEDC 33kV feeders were out due to poor distribution network, adding that this would certainly create high voltage that might damage TCN’s terminal equipment.

It said, “This kind of situation will be more dangerous if the rain falls in most parts of Nigeria.

“The TCN management is seriously disturbed because if nothing is done quickly to capitalise the Discos, the power sector will completely collapse.”

In its response, the AEDC admitted some of its 33kV feeders tripped on Saturday evening as the rain began.

“This is certainly not our desire as such interruptions would have impinged on the comfort of our customers, including TCN staff within Abuja. We regret this and we apologise for it.”

The Disco, however, said one principal factor that aided the tripping of feeders at any voltage level was the relay setting of such feeders.

It said, “For a very long time, the TCN has resisted a coordination of the setting of their relays in such a way that it will allow for professionally determined tolerance level.

“For reasons best known to them (TCN), this coordination has been resisted till now. Thus we ask – is it a case of funds or expertise?

“We have seen a consistent attempt by the TCN to engage in blame game and denigrate the Discos, especially AEDC, by diverting attention from the main issues.

“One of the weakest links in the value chain today is the TCN and this is manifested through the poor protection of its equipment.”

Citing an example, the AEDC said TCN’s 132kV line 2 from Katampe Transmission Station to Central Area had been off supply since June 2019.

“Despite several letters and verbal communication, this has not been resolved. As a result of this fault, AEDC is forced to embark on massive load-shedding of customers in the affected areas, which include Central Area, Maitama, Garki, Jabi and environs,” it added.

Peace Obi with Agency report

NCDMB, Rungas Hold Inaugural Board Meeting

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NCDMB, Waltersmith Host Min of Information at Ibigwe Modular Refinery

The Nigerian Content Development and Monitoring Board (NCDMB) on Thursday participated in the inaugural Board of Directors meeting of Rungas Prime Industries Limited, in furtherance of the partnership to establish a 400,000 units per day LPG (cooking gas) cylinders manufacturing plant at Polaku, Bayelsa State.

The meeting was held via video conference facility in line with NCDMB’s firm commitment to ensure business continuity despite the disruptive effect of the coronavirus pandemic in the country.

The Board of Directors approved elements of the business plan that will enable the commencement of the project within the constraints of the COVID-19 lockdowns.

NCDMB and Rungas signed the partnership agreement in December 2019 in Yenagoa, Bayelsa State, at the Practical Nigerian Content Workshop. In January 2020, the Executive Secretary NCDMB, Engr. Simbi Wabote announced that Rungas had been allocated two hectares of land at the Board’s land at Polaku for the establishment of the factory.

He also stated that Chief Timipre Sylva, Minister of State for Petroleum Resources was desirous for the project to start immediately because of his mission to drive the penetration of cooking gas to all Nigerian homes.

The Executive Secretary said the project will generate up to 200 direct and indirect jobs during construction phase and about 350 direct and indirect jobs during the full operations phase, in addition to other induced employment and economic activities.

The project received further boost in March when NCDMB signed an agreement with Shell Nigeria Gas (SNG) for the lease of one hectare of the Board’s land at Polaku, for the development of a Pressure Reduction and Metering Station. Shell will use the new plant to distribute part of the gas from its  Gbarain-Ubie Gas Plant for domestic utilization in Bayelsa and environs.

Shell’s investment will ensure that Rungas Prime and other businesses that would sprout on the Polaku corridor can easily access natural gas for power and other needs.

Collaborate Aith AU To Scale Through Coronavirus Crisis – MD LADOL Advises

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The Managing Director of LADOL Free Zone (LADOL) Dr Amy Jadesimi called for a collaborative effort in the fight against the spread of Coronavirus across the countries of the world. Adding that working with other African countries can help in winning the battle against COVID-19 pandemic.

Dr Jadesimi, a Supergroup founding member of the African Influencers for Development Initiative (AIDI), a coalition set up with the United Nations Development Programme (UNDP) disclosed recently.

African Influencers for Development Initiative is a coalition of current and future development champions in African business, academia and the arts, supported by the UNDP, focuses on co-discovering and co-implementing innovative solutions for some of Africa’s biggest challenges

She said, “Working with the African Union, AU and or otherwise collaborating with other African countries will help us get through this crisis. We should help our smaller neighbours, both because this is the right thing to do morally but also because from an epidemiological perspective, if we don’t eradicate this virus or the threat it poses, every country in Africa remain at risk.”

“The economic ramifications may be as devastating for us as the health crisis, which is why the Government’s quick action in setting up funds to protect SMEs and Nigerian jobs is very reassuring.”

LADOL’s MD further said that working with the AU will also enable the coming together of the best minds on the continent to work together to come up with the solutions Africa needs in the short, medium and long-term.

She said “We could also collectively bargain for the materials, equipment and machinery we need and disseminate the same across the continent. Negotiating as the AU or a regional collective would greatly strengthen our ability to purchase the right preventatives such as sanitizers, gloves, face masks and even test kits.”

Adding that Africa could as well manufacture the machinery and equipment needed for treatment.

“In fact, some materials and equipment can be manufactured locally today in African countries which will be easier for us to purchase and learn from, to increase our local manufacturing capabilities.”

“I often say to people that being a Nigerian is what maintains my faith in humanity and times like this really reinforce that belief – despite the fear, the challenges and the uncertainty we are coming together as a nation and supporting each other through this,” she said.

Jadesimi believes that Nigeria as the most populous nation in Africa has unique challenges, responsibilities and opportunities.

She commended the Federal and state governments for rising and acting far quicker than some western governments to the challenge of COVID-19.

Peace Obi

COVID-19: AfDB President Calls For Sustainable Partnerships To Overcome Pandemic

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NGOs Tasks AfDB against Support for Fossil Fuels in Africa

 …Says Our collective humanity is at stake

African Development Bank Group President Akinwumi Adesina said that accelerated global health and economic effort is needed to overcome the COVID-19 pandemic in Africa.

Stating that “one death is one too many” and that “our collective humanity is at stake,” Adesina urged U.S. and African government officials and corporate executives to forge new and sustainable partnerships that would endure beyond the pandemic.

He made the call during a global Corporate Council on Africa (CCA) webinar. The CCA is a leading U.S. business association that promotes business and investment between the United States and Africa. 

Urging participants to be their brother’s and sister’s keepers, Adesina said there was a compelling need to pay attention to underlying global inequalities, and the impact on rich and poor countries.

Corporate Council on Africa President and CEO Florie Liser lauded the African Development Bank’s proactive leadership role in responding to the crisis in Africa.

The COVID-19 pandemic threatens to erase Africa’s unprecedented growth and economic gains over the last decade, she said. 

The webinar was moderated by Citi Bank’s Peter Sullivan, who said the pandemic was unprecedented in terms of its health, social, economic, and financial impact. “The crisis has significantly hurt economic activity across multiple sectors, including tourism, transportation and commodities.”

Adesina highlighted the Bank’s recent $3 billion “Fight COVID-19” bond, the largest ever US dollar-denominated social bond. The bond, oversubscribed at $4.6 billion, is listed on the London Stock Exchange. The Bank also launched a $10 billion COVID-19 Response Facility to assist African governments and businesses.

The Bank’s response package includes $5.5 billion earmarked for African governments, $3.1 billion for countries that fall under the Bank’s concessionary African Development Fund and $1.4 billion for the private sector.

Fielding several questions about Africa’s healthcare system, Adesina said the region needs to more than double spending in the sector. He cited the acute shortage of facilities and pharmaceutical companies on the continent as development and investment opportunities.

While China is home to 7,000 pharmaceutical companies, and India 11,000, Africa, by contrast, has only 375, even though its population is roughly equal to half of the combined population of both Asian giants.

Adesina urged multilateral institutions to align and step up their collective efforts with regard to Africa’s debt, manage their ratings, and work together with rating agencies.

While COVID-19 infection rates are relatively low compared to the rest of the world, there is a growing sense of urgency given the acute absence of healthcare infrastructure on the continent.

With an eye on the present crisis and beyond, Adesina called for urgent, new and resilient partnerships that will help leave no one behind.  

Peace Obi

COVID-19: NNPC, Indigenous Oil Coys Donate, Ambulance Others To South West States

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

Nigerian National Petroleum Corporation and Independent Petroleum Producers Group (IPPG) on Thursday handed over six ambulances and medical kits to the South-West states.

The gesture the group said was part of the efforts to contain the COVID-19 pandemic in the country.

The News Agency of Nigeria (NAN) reports that the donation was made by the Nigerian National Petroleum Corporation and the IPPG, comprising 26 indigenous oil companies.

The items donated to Lagos, Ogun, Ekiti, Osun, Oyo and Ondo states were received in Lagos by the Minister of State for Health, Mr Olorunnimbe Mamora and Lagos State Governor, Mr Babajide Sanwo-Olu.

Speaking at the ceremony, Minister of State for Petroleum, Mr Timipre Sylva, said the donation was part of the N21 billion intervention initiative on the COVID-19 pandemic by the Nigerian Oil and Gas Industry.

Sylva said apart from the six ambulances, the states would also get thousands of testing kits, Personal Protective Equipment including face masks, bodysuits, hand gloves and sanitisers.

He said similar donations had earlier been made by the oil and gas sector in Abuja, Rivers and Bayelsa, adding that collaboration was needed to defeat Coronavirus.

According to him, the gesture will be extended to all states of the federation in line with the mandate of the Presidential Task Force on COVID-19 within the coming weeks.

He said groundbreaking ceremonies for the construction of Infectious Disease Centres in Uyo, Akwa Ibom and Yenogoa, Bayelsa would soon take place, to help the country in tackling pandemics.

Also, Mamora commended the initiative of the oil and gas sector in the fight against COVID-19.

“I thank you very much on behalf of the PTF and I know that posterity will be kind on you for standing up to be counted during this critical period.

”These donations will help fortify our health care system. Nigeria and Nigerians will not forget you for this your noble effort,” he said.

Speaking on behalf of the South-West governors, Sanwo-Olu said the donation would be used to support the critical infrastructure that was a challenge to the health care industry.

He said: ”I want to assure you that we will put it to judicious use and we will ensure that all the items are delivered to their respective states.

“They will go immediately to the front line and will be deployed to ensure that our people get well and come out of this pandemic alive.”

IPPG Chairman, Mr Ademola Adeyemi-Bero, said the group, made up of indigenous oil firms, was working towards procuring five million face masks, 100, 000 test kits, 12 ambulances, ventilators, beddings and overalls for health workers.

He said the group would also donate one isolation unit in a location to be advised by the NNPC and the National Centre for Disease Control (NCDC), and molecular labs in some parts of the country.

According to him, IPPG members were also observing the health protocols put in place by government in their facilities in order to contain the virus.

Earlier in his address of welcome, Mr Bala Wunti, Group General Manager, National Petroleum Investment Management Services, said the initiative of the oil and gas sector was based on an informed business interest.

Wunti said: “If economic activities are down, there will be no need for oil and gas.

“We are at a crossroad today and that is why the industry made an informed decision to come together to do what is right to help Nigeria mitigate COVID-19 pandemic.”

Peace Obi with agency report

Executive Secretary Congratulates Staff On The 10th Year Anniversary

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… urges staff to brace for post-COVID-19 changes

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr.  Simbi Kesiye Wabote has felicitated with management and staff of the Board and the entire oil and gas industry on the 10 years anniversary of the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

The Executive Secretary conveyed his compliments on Wednesday during the virtual town hall meeting he held with staff of the Board to mark the anniversary.

About 90 percent of the Board’s staff participated in the meeting from different cities across the country.

The Nigerian Oil and Gas Industry Content Development (NOGICD) Bill was signed into law on April 22, 2010 and it gave birth to the NCDMB.

Wabote explained that the Board had elaborate plan to celebrate the momentous achievements recorded over the first decade, but had to postpone it alongside other scheduled programmes because of the coronavirus pandemic and escalating effects across the country and the globe.

He noted that the restriction in movement in most parts of the country has necessitated the adoption of virtual work mode by the Board to ensure business continuity. He charged every staff of the Board to start adjusting to this new reality because post-COVID-19 would entail a lot of adjustments in our way of doing business, even after a vaccine for the virus is discovered.

Wabote also used the opportunity to commend President Muhammadu Buhari, members of the Presidential Task Force (PTF) on COVID-19 and all frontline medical personnel for the diligent and courageous work they are doing to contain the spread of coronavirus in Nigeria.

He also hailed the visionary leadership displayed by Mr. President in banning the importation of rice and some other food items in 2019, a decision that encouraged local rice production that has helped the country to avert food crisis during this pandemic.

The Executive Secretary also asserted that COVID-19 has taught Nigerians the key lesson that we must urgently pursue Local Content and self-sufficiency in every sector of our national life.

What WTI Oil Price Crash Portends For Energy Transition, Future Of O&G Market

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The oil and gas market took an unprecedented turn on April 20th when we saw the West Texas Intermediate (WTI) oil traded at negative prices – producers were actually paying buyers to take their barrels.

A COMPOUND DISRUPTION of storage capacity constraints, COVID-19 related hit on short-term demand, uncertainty about long-term demand, additional barrels in the market and the particularities of how oil is traded (Tuesday was the final trading day of WTI futures contracts for physical delivery in May) are some of the key factors that led to this situation.

Although today WTI is no longer traded in the “red territory”, the pressure could mount again when the June physical delivery trading window pushes to the end. The current market context is exerting tremendous pressure across the oil and gas industry and those companies with higher break-even prices and smaller balance sheets are more exposed.

This situation does not only affect companies but many countries and their populations. For exporting countries (particularly in the developing world), oil and gas-related revenue funds all sort of activities, including health. Without a steady flow of petrodollars, governments of these nations could find that addressing the health emergency created by COVID-19 will be even more challenging. Consuming countries could see this as windfall but nations where petrol
consumption is heavily taxed at the pump will see state coffers impacted.

A further question in the minds of many is how the current oil and gas crisis will impact energy transition plans. While it is difficult to say how long the demand slump will last, it poses challenging questions to the near term trajectory of the global energy transition.”

Pedro Gomez is the Head of Oil and Gas at the World Economic Forum

Should Africa Consider The Nuclear Energy Route?

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Despite its advancements over the years particularly in the oil, gas and power industries, it is no secret that Africa is still plagued with the very real issue of inefficient energy supply. Recording nearly 600 million people with no access to electricity, the question of what it will take to eliminate poverty in Africa is prevalent now more than ever.

While the continent has enjoyed great achievements in oil and gas developments and seen the launch of numerous successful renewable energy programmes, bringing online large scale world-class projects, it still has not managed to close the power gap as it hedges forward with its goal of sustainable energy mixes. So, what’s next for Africa?

With rising populations and high electricity costs, African countries are investing in various sources for electricity generation but, one remains largely unimplemented and, not without reason.

Nuclear energy and Africa

While nuclear energy is widely unexplored on the continent with South Africa remaining the only country with a commercialised nuclear power plant.

Egypt is home to one of the oldest nuclear power programmes. Launched in 1954, the programme is responsible for the 4.8 GW El Dabaa nuclear power plant, currently in the construction phase. The project will be developed by, Russian State Atomic Energy Corporation (ROSATOM) – the biggest nuclear power player in Africa having concluded memoranda of understanding with Kenya, Nigeria, Sudan, Zambia and Uganda. 

Kenya’s first nuclear reactor is set for completion in 2027 while Uganda’s 2019 Inter-Governmental Agreement with ROSATOM to help develop nuclear infrastructure remains in place.

Though it has not made any announcements in regards to implementing nuclear in its energy mix, earlier this year, Senegal shared its readiness for nuclear energy, through its Integrated Nuclear Security Support Plan (INSSP) developed alongside the International Atomic Energy Agency (IAEA).

“Before the INSSP, we did not consider nuclear security to be a problem that affected our country, as we do not have a nuclear power programme. In cooperation with the International Atomic Energy Agency, we are working to assess our threats,” said Ndèye Arame Boye Faye, Director General of Senegal’s regulatory body, the Radiation Protection and Nuclear Safety Authority. “Since working with the IAEA, we have also reassessed our priorities and capabilities and enhanced our competencies in the field of nuclear security,” he told the agency.

The challenges of nuclear energy

Nuclear energy is one of the more attractive options when considering a clean, reliable and cost-effective energy source. But, it does not come without its challenges.

For instance, it could take years for a country anywhere in the world to initiate a nuclear power programme and, infrastructure development could not come any sooner than 10 -15 years. Simply put, the nuclear route requires a lot of patience and dedication – especially in Africa where a number of countries are working towards development.

According to Miliko Kovachev, Head of the International Atomic Energy Agency’s Nuclear Infrastructure Development Section: “A successful nuclear power programme requires broad political and popular support and a national commitment of at least 100 years.”

100 years, a commitment that would not address Africa’s pressing power needs in the near term, especially with Sub-Saharan Africa’s population set to double over the next 30 years.

But, there is an alternative solution. Small scale nuclear reactors.
Defined by the World Nuclear Association as reactors that are generally 300MWe equivalent or less, small scale nuclear reactors are designed with modular technology using module factory fabrication, pursuing economies of series production and short construction times, making them one of the more practical solutions for African countries.

Another major hurdle of nuclear energy is financing. Due to its high cost of implementation, African countries looking at nuclear energy could be deterred. “But, there are financing mechanisms like, for instance, from export agencies of vendor countries. Tapping into a reliable, carbon-free supply of energy when vendors are offering to fund it can make sense for several countries in Africa,” said Kovachev.

American entrepreneurial firms that understand Africa are likely to succeed. IP3 International, a firm founded by retired Navy Rear Admiral Michael Hewitt, retired Army General John Keane, and Robert McFarlane, a former national security adviser to President Ronald Reagan is likely to make a strong play with an innovative approach that makes puts Africans at the foundation of it and also driven by local empowerment.

All these challenges are not ones that cannot be overcome and, Africa is ready to take them on.

“Platforms such as the International Framework for Nuclear Energy Cooperation and IP3 International are essential in opening the dialogue on the right approaches for Africa,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “Because nuclear energy is still a foreign concept to many African economies, we need to take our lessons from the rest of the world and, participate in the conversations on nuclear efficiency, safety and security ensuring that when the time comes for us to move forward with nuclear, we have laid the foundation.”

Nuclear energy and climate change debate

As the climate change debate continues and the global community seeks cleaner energy sources, the shift towards nuclear power for African countries would mean that they are able to reduce their carbon emissions as expressed under the Paris Agreement.

“African economic growth, job creation, and improved quality of life depend on affordable, abundant energy, nuclear-powered energy is clean, reliable and affordable,” said Ayuk. “It is a workable solution for Africa. Of course, it will take a lot of time, hard work and it will be challenging but, we need to look at alternative energy solutions. Our populations are rising and the gap is widening, we need to address the power issue and, we need to be open to doing it through exploring different routes,” he added.

In advancing nuclear power programmes, the African Energy Chamber encourages governments to show strong political will and create enabling environments for nuclear to take its place in our energy mixes. In getting started, African countries need to push forward with the programmes, put in place policies and regulations and, take lessons from the rest of China and Russia. If we are to close the power gap, we need to act now. Energy is the backbone of our development.

African Energy Chamber

Africa’s Energy Transition Must Be African At Heart And In Practice – Ayukegba

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Africa is at an energy cross-road. On one hand, the most talented, better educated, most entrepreneurial and competitive generation the continent has ever had is rising and taking on leadership positions that will propel African companies to become more competitive.

After many turbulent decades, most corners of the continent have found the necessary political and economic stability to strategize for a better future making use of their natural resources and wealth. Nowhere else on planet Earth are economies and populations expected to grow faster than in the mother-continent.

After such a long time dealing with the problems of the past, Africans can look to the future with the promise of a better life. After all, when it comes to natural resources such oil, gas, coal, diamonds, rare earths, woods, or agricultural potential and legacy-free technological development, there is no place like Africa. Over the last decade, most of the world’s biggest oil and gas discoveries took place on the African continent, and rapidly developing indigenous companies are ensuring these resources serve Africans and African economies more than they ever did before, resources that will power industries, light homes and create wealth.

Our time to rise is finally here

I have had the chance to witness this with my own eyes. From Equatorial Guinea to South Africa, from Angola to Mozambique and from Kenya to Senegal, the energy industry, the one I know best and the one closest to my heart, is revolutionizing life. Political leaders are willing to learn from the mistakes of the past to improve resource management, contract negotiations and environmental protection policies. 

Most of all, they have developed local content policies that potentiate the participation of Africans in these industries. Oil and gas training programmes and university degrees that cater to the industry like engineering are now more common than ever. These programs are educating and giving opportunities for numerous Africans to find work in the industry and further, to start their own companies within the industry’s supply chain. While the drive to strengthen the integration of the energy sector and other extractive industries with the rest of the economic system is far from complete, it has certainly been fundamental in developing Nigeria’s indigenous upstream sector or in building a truly native gas industry in Equatorial Guinea. In Nigeria for example, this critical mass of local talent has been instrumental in the establishment of regional energy giants like Seplat Petroleum, Sahara Energy, Atlas Petroleum International Limited and Shoreline Natural Resources, whose influence is felt more and more beyond Nigeria’s boarders.

Local content clauses in contracts are the way African leaders assure that the exploitation of the local natural resources has a trickle-down effect on the local economy, through job-creation and increasing local participation in the value chain the industry brings with it. Furthermore, most recent localization strategies for the oil and gas sector have been successful in developing truly native associated industries, particularly within the natural gas supply chain. As the Africa Energy Chamber has advocated since its establishment, we are finally seeing petrochemical plants, fertilizer plants and gas-fired power plants popping up across the continent. An African natural gas economy is growing where before the plague of flaring stood unmatched.

Intra-African trade in both natural gas and Liquefied Natural Gas (LNG) is also likely to rise significantly, on the back of rapid urbanization and development across the continent which is set to increase energy consumption on the continent by more than 50% before 2040, This will speed up wealth creation and capacity building across borders.

Following the oil price crash of 2014, many countries across Africa have sought to reposition themselves to attract investment into their energy sectors through the introduction of varying incentives. These incentives ranged from granting tax breaks to potential investors to reducing bureaucracy affecting the sector. On the other hand, the recent global climate change discourse which has also intentionally sought to demonize and simply hinder investments into Africa’s oil and gas sector, poses a new challenge to the growth of the sector in Africa.

Worryingly, these two issues are taking attention away from the need to ensure that the African energy industry benefits Africans at large and fulfils its transformative potential to raise the continent out of poverty.

The African energy transition will not be made in the West

The issue of climate change has come to dominate the global debate over the energy sector. An energy transition is necessary to tackle the effects of CO2 emissions on a planetary scale. While Africa has contributed only a miniscule part of those emissions, it stands to suffer the most from the effects of this change, and must as well prepare for a progressive shift in its energy structure. In many ways, the channelling of natural gas for power generation and the upgrading of oil and gas infrastructure and equipment to improve efficiencies and reduce the industry’s carbon footprint is already going a long way to achieve that. New renewable energy projects from Kenya to South Africa will also help balance out the continent’s energy matrix as it expands its electrification rates to reach every African in every corner of the continent.

Many international and foreign institutions have already started to share their expertise and support with African governments and many foreign investors have started to develop their own projects in the mother-continent. Wind farms, solar parks, geothermal drilling, hydropower plants, etc, are taking advantage of each region’s available resources. Here too, these renewable resources must be used for the benefit of Africans, and they must be developed with the participation of Africans and in a manner that is sustainable economically and to a scale that is capable of supporting the growth of the industry that provides for good-paying jobs.

It is fundamental that these new technologies and sources of energy suit the communities which they are meant to serve. Climate concerns cannot sideline discussions over local content and localization strategies. They must go hand in hand, be one and the same, or else we may again find ourselves dependent on foreign knowledge to provide for our energy needs. Such dependence is unlikely to lead to the mass scale of development with the potential to lift large swaths of the population out of poverty.

Education programs and employment clauses are a fundamental step of the energy transition and not a secondary aspect of it. Market-driven local content frameworks need to be designed for capacity building, employment generation and overall enforcing a value-adding multiplying effect in our economies.

This debate is now more important than ever, as Africa opens up to new industries and to greater trade integration. As more and more African nations gain the expertise to explore their natural resources for the betterment of their economies and their people, we need to see further integration and cooperation between them, so that the continent can take advantage of synergies that different regions and industries can offer.

Already, we see examples of gas-poor countries like South Africa investing in natural gas and LNG projects in gas-rich Mozambique with the aim of reducing their growing energy deficit. As demand rises, exploration will accelerate and so will the use of the vast gas resources, including those that continue to be wasted through flaring. The African Continental Free Trade Zone is an ideal platform to promote the development of an intra-African natural gas trade that will promote widespread economic growth and access to power. Again, it is fundamental that these developments are pegged to well implemented and designed local content policies, so that Africans can truly benefit from the exploitation of their continent’s resources, and by so doing, ensure that Africa’s energy transition will be driven and made sustainable by those that will transition with it.

Verner Ayukegba is the Senior Vice President with the African Energy Chamber and Director of Operations at DMWA Resources, a pan-African energy marketing & investment firm.

PTI, Training High-Skilled Manpower For Oil And Gas Industry

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Orient Energy Review editorial team met with the Chief Coordinator of PTI Consultancy Services, DR. ORIRI ASEMOTA OMORODION during the 2020 Nigeria International Petroleum Summit, which held at the International Conference Centre, Abuja.

The Chief Coordinator stated that the Petroleum Training Institute, Effurun, Delta State, is a Federal Government-owned institution that has been in training business for over 40 years, stating that in these years, the Institute has trained Nigerians for the middle manpower needs of the oil and gas industry. The Institute prides herself of producing highly skilled specialized and formidable workforce for the Nigerian oil and gas industry.  Excerpts.

What makes PTI unique?

PTI is the only training institute in Nigeria and West Africa that has

i) A drilling rig and flow station for hands-on training

ii) Drillsim: 6000

iii) Dive tank, swimming pool and hyperbaric chamber for underwater operations training

iv) Refinery Simulator, Polymer Machines etc

v) Electron microscope scanners

vi) Filling Station that is dedicated to training Petroleum Marketers

vii) Fully equipped and functional workshops in Mechanical Engineering, Electrical and Electronics Engineering, Welding Engineering and Offshore Technology etc.

With these facilities, PTI has been able to reduce capital flight by training Nigerians in core Oil and Gas processes.

In essence, PTI’s training services go beyond Nigeria

Yes. We have trained Nationals of Sao Tome Principe, Angola, Equatorial Guinea Benin Republic amongst others. Language is not a barrier to the training as they are taught English before the technical skills.

Currently, we have some participants from Niger Republic undergoing training in Petroleum & Natural Gas Processing. In this conference, countries like Mali visited us find out how they can collaborate with us in training their people because they would soon go into exploration of oil and gas. 

Nigerian Content policy implementation in the oil and gas industry has yielded some incredible results, thereby leaving Nigeria with the ‘big brother’ role as far as local content development is concerned in Africa. How is PTI positioned to complement NCDMB’s efforts in the development of quality manpower needed both here in Nigeria and other African countries?

We have been empowered by the law, and by the developments, we have gone through all these years, we are rightly positioned to train the manpower for the industry in Nigeria and Africa, generally. However, there are constraints, which at least you know. Funding is one of our major constraints.

We would appreciate it if, from time to time, the oil and gas companies could help in funding some of our needs. We need up-to-date equipment for industry-standard skills training. They should also give us the opportunity to train some of their technical staff because we know that they take many of these trainees outside the country. We are simply asking that they come to our aid, fund some of our projects, and train some of our trainers so that we can do more for them. 

There are quite a number of well-equipped private training centres offering similar services as yours here in Nigeria, how ready, equipped and confident are you about PTI’s ability to remain in the leading role in providing training services?

 With the resource persons we have in the institute, we have the confidence that we will continue to train a highly-skilled workforce for the oil and gas industry. We have a number of highly qualified trainers. However, the trainer needs to be retrained from time to time so that we can meet the dynamic changes that are going on in the world.

PTI being a federal government organisation, of course, has some limitations in financing some of these training and equipment. However, I would like to use this opportunity to appreciate PTDF for giving us lots of equipment. But there was a gap that was created, in the sense that, these equipment were provided, the follow up of training those who will use it, and how to use it was not aligned. So, the synergistic effect has not been fully accomplished because there was no hands-on training for the resource persons who are supposed to operate the equipment.

The oil companies need to also challenge PTI with their capacity development training needs. They need to challenge us and say, “we have this need, can you do it?”  Then we will now pass or fail. But they are not giving us the opportunity to do that. We are appealing that they should please come to our aid, look at our needs and help. We need a lot of exposure and training. Petroleum Training Institute is actually there to serve the industry by producing quality workforce. Let them know that to have the kind of workforce they need, they also need to develop that place that is producing this workforce that they really need. 

What is the duration of courses at the PTI?

We have the two-year program for National Diploma and then we have another two years for Higher National Diploma. We are providing specialized courses for those people who are already in the field working that need to be retrained to develop more capacity for them to be more effective in their different workplaces.

Can you enumerate these specialized training?

These include but to mention a few:

i) The PTI Mud School

ii) The International Welding Practitioner Diploma of the International Institute of Welding (IIW)

iii) International Wellhead Control Forum (IWCF)

iv)  Commercial Diver Class 1 & 2

v) Fitters and Machinists Training

vi) Liquefied Natural Gas Operations

 Our Professional and Specialized Courses Brochure for the year 2020 is on our website www.pti.edu.ng

What are the requirements for a school certificate holder to gain entry for training in the Institute?

A school certificate holder would have to get five credits in the relevant subjects because we have Petroleum Engineering, Mechanical Engineering, Electronics and Electrical Engineering, Petroleum and Natural Gas Processing Engineering, Industrial Safety and Environmental Technology, Welding Engineering and Offshore Technology, Petroleum Marketing and Business Studies and Computer Science and Information Technology.

In the relevant areas, they must have five credits including Maths and English and then, they will write the JAMB entrance examination. For the HND, a candidate must have obtained a National Diploma in the relevant areas to be able to get admission into the HND programme. 

As you know, most of the other training centres are privately-owned and they sponsor themselves for training and retraining, they mobilize the needed fund, how is PTI prepared to compete with such?

You see, those private training centres can use their resources to go buy their equipment, they can use their resources to go fund training of their personnel but sometimes they come to submit those jobs to us. Yes, they get those contracts and they come to us and then we do it for them. We have been doing that. You see as a federal government agency, all our funds come from the government and the school fees that these students pay, of course, it is highly subsidized by the government. It is not enough to take care of those training needs of our staff. You can see the difference. Because the fund coming from the federal government is not enough, we have these constraints, which l believe the oil and gas industry can take care of. Don’t give us the money, tell us to provide the staff and then with the list of equipment we need you to provide them for us, and get us trained too. We are and will continue to be there for them.

“PTI has all it takes to train the best manpower for the oil and gas industry”, is that your message?

What we are saying is that the financial help we do not get limits us but if corporate organisations can invest in the aspect of providing training for our trainers, we will do better.

RELATED: Chevron Trains 14 Nigerians To Acquire Oil And Gas Industry Skills

I am aware that many IOCs and even the indigenous companies collaborate with some of our tertiary institutions, would you not think that it is necessary to seek partnership with these companies?

That is what we want to do. The truth is that, like in Angola, there is a law stating that all oil companies should inform Angola Petroleum Institute of any new discoveries. Then the Petroleum Institute looks at it, develop a curriculum and research on that, and they now use it as a training tool for the country’s oil and gas industry workers.

But here, there is so much detachment of the Petroleum Training Institute from the Industry. In those days when l got into PTI, in the early 90s, l know that the oil and gas industry had some votes allocated for training PTI staff. It was there but over time, it just thinned out and so we were now left behind as what we get from the government cannot do that.

If we can get back to that period, it will help. That is why l am saying, do not even give us money, just provide the equipment, provide training and then ask us to give you what you want. There was a company called ASHLAND that came to open a laboratory for us. The laboratory was for petroleum analysis. They also trained our staff but that was so many years ago. Since then, no other company has come. 

I agree  that PTI has its own role to play in bringing this thing back but l plead with the IOCs to please take PTI as their TRAINING ARM and let us come together to say “okay what do we do” this is what we need to do and then we move on.

Africa Awaits A Post COVID-19 Recession

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…Oil and gas producing countries too – W/Bank

The World Bank has said that Africa may fall straight into a steep recession shortly after the COVID-19. Oil and gas producing countries are expected to take particularly hard hit in a looming recession the World Bank predicts will be induced by the COVID-19 pandemic.

Currently, the presence and impact of the epidemic have caused an incredible drop in energy demand for oil. Demand has declined by shocking 30 million barrels per day during the pandemic, as 4 billion people across the globe have been ordered to stay home and businesses closed.

Low demand, coupled with the oil price war between Saudi Arabia and Russia in March, oil prices have fallen to record lows. According to the World Bank, Nigeria and Angola, for example, could see growth fall by more than 7%.

In the report, the World Bank said that the African continent will also face its first recession for the region in 25 years, as growth declines from 2.4% in 2019 to between -2.1% and -5.1% for 2020. The estimated costs in terms of output losses in 2020 for the continent — including oil, metals, tourism, foreign aid, FDI, etc. — range from $37 billion to $79 billion, the report said, adding that countries that import the majority of Africa’s goods, including China, the US and Europe, are experiencing economic tumult, which has halted many of country’s exports.

In February, China announced it was taking a third less oil from West Africa, with traders saying they had difficulty selling crude from Nigeria and Angola in March.

“The COVID-19 pandemic is testing the limits of societies and economies across the world and African countries are likely to be hit particularly hard,” said Hafez Ghanem, World Bank Vice President for Africa. “We are rallying all possible resources to help countries meet people’s immediate health and survival needs while also safeguarding livelihoods and jobs in the longer term.”

“From the oil perspective, COVID-19 has clearly affected demand,” said Paul Eardley-Taylor, Oil & Gas Coverage for Southern Africa for Standard Bank. OPEC has recently announced a major agreement and the industry reaction has been to cut CAPEX by around 25% across the board. Everyone is watching to see the duration of the COVID crisis.”

Crude storage around the world is expected to reach capacity in just a few weeks, putting further constraints on oversupply. The impact, on gas, however, could be different.

“From a gas perspective, falling oil prices are likely to encourage fuel switching to gas, although the demand for electricity will also be affected by the duration of the COVID-19 crisis. However, we are also seeing some delays in gas investments,” Eardley-Taylor said.

Foreign Direct Investment, especially in energy, mining and infrastructure, will also be “severely affected”, the report states, as “access to financing flows from China and capital markets become more restricted.”

“For African producers, a lot of programs are getting shut down,” said NJ Ayuk, Chairman of the African Energy Chamber. “We are seeing force majeure in Cameroon, in Senegal. Exxon Mobil is delaying a gas project in Mozambique. In Uganda, some companies are delaying exploration. Frankly, most projects are going to get delayed.

“Now you are seeing the rig counts are reducing drastically. The current market doesn’t encourage banks and financial institutions to invest, as they won’t get the right kind of return. And if projects aren’t bankable, no one is going to put money in them. This will have an impact on the African producers, even in a country like Nigeria, where you have mature and marginal fields,” Ayuk said.

Oil companies are hunkering down to weather the crisis, delaying nonessential work, cancelling projects and cutting nonessential expenses. “2020 is going to be a tough year for everybody,” said Ayuk. “Everyone needs to buckle up for the ride. 

The real question is: are we paving the road for a smooth ride in the future? That is really key to what we want to do. You have twin issues of the price war and the coronavirus — you can’t make this up. Hollywood couldn’t have written out this script. 2020 is done. So, you have to look at 2021 and form the policy that will drive you forward. You have to be in a strong position to go forward and really deal with a future that works for the industry.”

Chibisi Ohakah

AU, IREA Deploy Renewable Energy To Boost Response To COVID-19

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According to the International Renewable Energy Agency (IRENA) and the African Union (AU), have agreed to work together to deploy renewable energy solutions across the continent in order to boost its response to the coronavirus pandemic.

Renewable energy allows states to provide a fast response to the worldwide COVID-19 pandemic, as well as building more resilient energy systems. The common goal is to accelerate the development of renewable energy across Africa, including decentralized systems, and improve the rate of access to energy.

Healthcare systems have been signalled as a critical area of improvement in order to make sure rural health centres and communities are able to deal with the COVID-19 pandemic. Thanks to small renewable energy systems, hygiene can be improved through water pumping devices and critical health devices can be powered in a stable manner.

The agreement was attained during a virtual discussion between Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy of the AU Commission and Francesco La Camera, Director-General of IRENA, last weekend.

Amani Abou-Zeid stated: “The COVID-19 pandemic has shown that energy is critical for all spheres of life and is now proving to be a matter of survival. The African Union Commission has made major strides to advance energy development in Africa through various programs and partnerships. It is now even more urgent to fast track energy access efforts on the continent.”

Director-General La Camera said: “Renewable energy can cost-effectively supply the critical power needed in Africa’s rural communities to supply health centres, facilitate the provision of clean water, support agriculture and facilitate other productive sectors. Such measures are critical to the continent’s ability to deal with the pandemic.”

The AU and IRENA already collaborate on many of the AU’s current programs such as the Africa Bioenergy Policy Framework; the Program for Infrastructure Development in Africa and others. One key current area of collaboration resides in IRENA’s Clean Energy Corridors initiatives in East, West and Southern Africa which aims to increase renewable energy’s footprint through the development of bigger and stronger power markets, enhancing crosser-border trade of renewable power.

Chibisi Ohakah

Oil Prices Hit Below Zero: Analysts Insist Price Will Rebound

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Energy Transition Forces Rystard to Revise Long-Term Oil Demand Forecast

Oil prices on Monday crashed to record low as oil producers ran out of space in their storage facilities leaving US oil prices with an unprecedented fall from $18 a barrel to -$38 in a matter of hours.

The historic market collapse has been attributed to the Coronavirus outbreak which has led to a great fall in the global demand for oil.           

Also, the lockdown order in the effected countries to enable them contain the spread of the noble Coronavirus has in turn badly affected economic activities, thus leaving American energy companies with so much unused oil sloshing around that it has no room to store it.

However, on Tuesday (today) prices rebounded above above zero, with the US benchmark West Texas Intermediate for May changing hands at $1.10 a barrel after closing at -$37.63 in New York on Monday.

In recent weeks, US shale prices saw a steady decline following the biggest slump in oil demand for 25 years steps due to restrictions on travel to curb the spread of COVID-19.

The fall in oil prices has further been exacerbated by the rising fears that the global economy may be facing its deepest downturn since the Great Depression.

In an effort to salvage the market, curb oversupply elicited by the Saudi Arabia-Russia price war and the plunge in oil demand as a result of the Coronavirus pandemic, OPEC and its allies recently agreed to lower their collective crude oil production by 10 million barrels per day (bpd) until the end of second quarter of 2020.

The historical crash in the oil prices on Monday, has painfully proved that OPEC+ could not readily salvage the market.

However, analysts and some industry players are optimistic that the market recovery is but around the corner. The recovery they said is expected to pick up over the second half of the year as tight restrictions on travel to help curb the spread of the virus are lifted.

It is believed that oil prices will naturally rebound as the demand for fuels and oil increase as economic activities resumes in different countries.

According to the analysts, oil prices may not reach the same price levels recorded at the beginning of the year before the outbreak but hinted that a rebound was sure.

Brent crude reached highs of almost $69 a barrel in January before plummeting to less than $23 a barrel at the end of March. Many market experts predict the price of Brent will remain below $50 a barrel this year.

Peace Obi