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OPEC, allies agree on 500,000bpd oil cuts

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The Organization of Petroleum Exporting Countries (OPEC) and its allies led by Russia yesterday in Vienna agreed on additional output cuts of 500,000 bpd. It is said to be one of the deepest output cuts this decade to support crude prices and prevent a glut.

Reports said however that the members are still debating how long the curbs will last into next year. The global oil body is also meeting on Friday (today) with non members and other producers – a grouping known as OPEC+.

Russian Energy Minister Alexander Novak said a panel of key energy ministers – including those from Saudi Arabia and Russia- had recommended that the OPEC+ group deepen existing supply curbs of 1.2 million barrels per day (bpd) by another 500,000 bpd. The cut of 1.7 million bpd would amount to 1.7 percent of global supply.

Novak said cuts would last through the first quarter of 2020, a much shorter timeframe than suggested by some OPEC ministers, who have called for extending cuts until June or December 2020. OPEC could in theory decide to approve a longer timeframe than OPEC+.

“We concluded that in order to safely go through the seasonal demand period in the first quarter of 2020, it could be recommended that countries additionally cut up to 500,000 barrels per day,” Novak said.

Online reports said OPEC+ has agreed to voluntary supply cuts since 2017 to counter booming output from the shale fields of the United States, which has become the world’s biggest producer of shale. Washington has forced an even steeper reduction in supply through sanctions on OPEC members Iran and Venezuela aimed at choking both countries’ oil export revenue.

As OPEC members continue their meeting Thursday and Friday, they will consider how to balance their supply with another year of rising output from the US in 2020. Other non-OPEC countries such as Brazil and Norway are also expected to pump more oil.

There were reports that ministers from Saudi Arabia, Russia, Kuwait, the United Arab Emirates, Oman and Algeria had their pre-OPEC meeting yesterday when the OPEC meeting still not started. The reason was not clear

Saudi Arabia said it needs higher oil prices to support its budget revenue and the pending initial public offering (IPO) of state-owned oil giant Saudi Aramco with pricing of the debut share sale expected on Thursday. OPEC’s actions in the past have angered US President Donald Trump, but Trump has said little about OPEC in recent months. That might change if oil and gasoline prices rise ahead of the US presidential election set for November 2020.

“OPEC’s actions have supported oil prices at around $50 to $75 per barrel over the past year. Brent crude futures on Thursday extended this week’s gains to trade above $63 per barrel,” AlJezeerah reported yesterday  

The report quoted OPEC sources saying Saudi Arabia was pressing Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000 bpd.

By Chibisi Ohakah

NNPC Assures Product Supply Despite Lagos Pipeline Fire

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Nigeria’s Oil Industry Needs More Privatization to Flourish

Fire caused by oil thieves and pipeline vandalism

Nigerian National Petroleum Corporation (NNPC) yesterday assured members of the public of seamless supply and distribution of petroleum products supply in the country throughout the Yuletide season and beyond.

The company said despite the pipeline oil fire in along Atlas Cove-Mosimi, part of the System 2B pipeline in Baruwa Swamp area of Lagos, members of the public will not experience any disruption of production and distribution of products in any part of the country

The corporation said preliminary reports of the incident indicated that the fire outbreak might have been caused by an act of vandalism by suspected oil thieves who had hacked into the line to intercept flow of petrol.

A spokesman of the Corporation said the NNPC in conjunction with the Lagos State were able to manage and contain the fire, while repair works have commenced, which will lead to speedy restoration of the pipeline operations. The corporation commended all stakeholders for their prompt response,

NNPC assured the general public that the pipeline will be put back into operation shortly, while the breach has no impact on petroleum products supply in the area.

The corporation confirmed that it has 116million litres of PMS in Mosimi Depot, 7.5million litres in Satellite Depot and 35million litres in Ibadan depots, all within System 2B network.

By Chibisi Ohakah

UK court stops $526m oil spill enforcement against Shell

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Dutch oil giants, Shell, has won a UK court ruling preventing London authorities from enforcing a $516 million Nigerian judgment for damages caused by an oil spill half a century ago.

A Nigerian court had in 2010 ruled against Shell, compelling them to pay $516 million to a Nigerian community, Ejama-Ebubu community in Rivers state, as damages caused over 50 years ago. But World Oil reported yesterday that Judge Jason Coppel on Thursday overturned the attempt to carry over the 2010 ruling by a Nigerian court to the UK, stating that the proceedings were unfair because Shell was denied an opportunity to present a defense.

Shell’s Nigerian units have been beset by lawsuits, many of them in UK courts, for their part in oil spills on the Niger Delta. The oil conglomerate has often sought to transfer the cases to Nigeria, with one even going to the UK Supreme Court to decide its jurisdiction.

Thursday’s case originated from a claim brought in 2001 by the Ejama-Ebubu community. They claimed that an oil spill by Shell had made their water sources unfit for human consumption. Shell disputed responsibility for the spill and said it had made substantial progress clearing it up.

After nine years of wrangling, in which Shell was alleged by a Nigerian judge to have tried to frustrate proceedings, the court awarded the community the damages plus interest, which by that time had increased the award to more than 10 times its initial value of 33 million pounds.

Shell’s appeal to the Nigerian Supreme Court was dismissed. A further hearing is due to take place in January. Meanwhile, the claimants had the original Nigerian award registered in London using a century-old law, allowing the UK courts to enforce the award if necessary. Thursday’s judgment sets aside the registration, preventing its enforcement in the UK

World Oil quoted the lawyer representing Ejama-Ebubu community, Nicholas Ekhorutomwen, saying they were “disappointed” with the decision in London and would therefore appeal. Shell said in a statement that the matter was still subject to legal proceedings in Nigeria and that it remained their position “that no payment was due.” It also said the company completed a clean-up of the spill sites in 2013.

Oil Cuts: Saudi accuses Nigeria, others of cheating

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………Threaten to overproduce if the cheating continues

Saudi Arabia has threatened to rubbish the global oil market if members of the Organisation of Petroleum Exporting Countries (OPEC) continue to cheat on oil cut agreements. The global oil body is meeting Thursday and Friday in Vienna to review global oil policy agreements among others.

World Oil reported that Saudi Arabia appeared to be on track to forge a new quid pro quo with fellow OPEC+ members: If you stop cheating, we’ll keep on cutting, it said  

A few hours before OPEC’s meeting in Vienna, a committee that oversees its deal with non-members, including Russia, recommended the wider group adopt the Saudi proposal and reduce its output quota by 500,000 barrels a day, delegates said. “The kingdom has explicitly communicated to OPEC that it will no longer tolerate under-compliance,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd. said before the committee meeting. “If it continues, Saudi Arabia can easily return to producing at or above its current quota.”

However, the panel left key details unresolved — such as how much Saudi Arabia will pump under the new regime — leaving the oil market to wonder whether it was a genuine supply reduction. A change of that magnitude, depending on how it was distributed, could simply formalize the deeper supply curbs the group has already been making for most of this year.

What was becoming clear was new Saudi oil minister Prince Abdulaziz bin Salman’s reluctance to endorse the status quo, in which countries including Iraq, Nigeria and Russia have consistently failed to implement their pledged output cuts, leaving the kingdom carrying most of the burden of supporting crude prices.

The new quota is contingent on all countries implementing 100% of their pledged cuts, said the delegates. For the oil market, a new deal could be a psychological boost as traders fret about possible oversupply next year, but may take relatively few barrels out of the physical market.

Saudi Arabia has already been pumping significantly below its official OPEC level, and few are likely to believe that nations such as Iraq, Nigeria or even Russia, which have barely complied with the deal so far this year, are about to start.

The so-called OPEC+ alliance has an agreement to reduce output by about 1.2 million barrels a day since the start of the year in order to eliminate a surplus and bolster crude prices. That deal expires at the end of March, right in the middle of what looks to be a tricky patch for the oil market. Demand growth is slowing and another big expansion in rival production is coming down the pipeline.

Together those factors could create another oversupply that drives international prices back down toward $50 a barrel. That’s too low for most OPEC members to balance their budgets, and would make an unfortunate epilogue for the record-breaking initial public offering of Saudi Arabia’s state oil company, Aramco.

Crude prices jumped 4.2% in New York on Wednesday, the biggest gain since September, as speculation swirled that a deeper OPEC+ cut was coming. West Texas Intermediate crude traded 0.8% higher at $58.91 a barrel as of 9:44 a.m. local time on Thursday.

Prince Abdulaziz has offered little clarity about his intentions. Reports said he declined to answer specific questions when he arrived in Vienna on Wednesday, saying simply that the market outlook was “sunny” like the weather. On Thursday, he told reporters he felt good about the meeting. Ministers from the United Arab Emirates and Kuwait, the kingdom’s closest allies, also had little to say.

On Thursday, Nigeria’s minister of state for Petroleum Resources Timipre Sylva said OPEC would discuss the possibility of further cuts and it would be a “tough decision.” Iran, which is exempt from making cuts because of U.S. sanctions, will support any decision by the other members of the group, oil minister Bijan Namdar Zanganeh told reporters.

By Chibisi Ohakah

African Energy Chamber Urges African OPEC+ To Focus On Energy Poverty

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African Energy Chamber has urged African OPEC and non-OPEC members to commit themselves to the Declaration of Cooperation and ensure compliance. Global oil producers are convening today in Vienna, Austria for the 177th OPEC Meeting. Through the meeting, the producers are aiming to determine the management of oil production in 2020.

The African Energy Chamber and non-OPEC has urged members to commit to the Declaration of Cooperation and ensure compliance. This is of key importance as it keeps the path to dignity and prosperity for African economies open. The meeting falls amidst the climate change debate which has put pressure the global energy industry to implement less carbon-intensive energy solutions.

Attending the 177th Meeting, the Africans see this gathering as an opportunity for OPEC members to focus on the realities of energy poverty on the African continent and provide a solution that allows Africa to still meet its objectives of improving power access and building competing economies while participating in the dialogue about addressing climate change.

“Climate change is real. At the African Energy Chamber, we do not reject its existence and impact on the environment, instead, we are determined to express the importance of Africa’s progress not being halted particularly when it is progressing towards its summit,” said NJ Ayuk, executive chairman of the African Energy Chamber said

“There must be a dialogue between businesses and governments about the future of the global energy industry, but, African business must be on the table. Accounting for 7.3% of global oil reserves and 7.2 percent of global gas reserves, Africa should have a voice” added Ayuk.

Last week, it will be recalled that the African Energy Chamber launched a petition against the proposition that in the wake of the climate change debate, Africa should limit the development and exploration of its full hydrocarbon potential. This, it has done not as a means to reject the realities of climate change, but rather as a plea to be given the same opportunity as our western counterparts to develop and industrialize our countries.

In tune with the African Energy Chamber’s plea for a gradual energy transition that does not enforce a swift change from one source to another, H.E. Mohammad Sanusi Barkindo, Secretary General of OPEC said earlier this year that: “The oil industry must be part of the solution to the climate change challenge.

The scale of the challenge means that no single energy source is a panacea; nor can the contribution of an entire industry or group of countries be overlooked. This is not a race to renewables alone; it’s a race to lower greenhouse gas emissions,” he said

By Chibisi Ohakah

Africa Oil & Power Conference Press Release

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Africa Oil & Power Conference / Press release

Africa Oil & Power supports Angola with year-long FDI campaign in 2020 to promote capital inflow into bankable projects; Angola Oil & Gas Conference & Exhibition (AngolaOilAndGas2020.com) returns to Talatona June 16-17, 2020; “Angola: African Investment Capital 2020” will capitalize further on the critical reforms passed by Angola President H.E. President João Manuel Gonçalves Lourenço

Africa Oil & Power (AfricaOilAndPower.com), the continent’s premier platform for energy investment and policy, will return to Angola in 2020 for a year-long campaign to promote and attract foreign direct investment in one of Africa’s biggest economies. ‘Angola: African Investment Capital 2020’ will capitalize further on the critical reforms passed by Angola President H.E. President João Manuel

Gonçalves Lourenço to bring attention to the investment opportunities that exist in Angola’s economy.

Endorsed by the Ministry of Mineral Resources and Petroleum and in partnership with the African Energy Chamber, the Angola Oil & Gas (AOG) Conference & Exhibition will return for a second year as the focal point of an international investment drive aimed at bringing new deals to the table and signing up new entrants to Angola’s oil and gas sector. The next edition will be held June 16-17, 2020 in Talatona. Surrounding the conference will be a year-long global drive to present opportunities to a targeted audience of relevant investors.

Also Read: Angola Oil & Gas 2019 Conference & Exhibition, launch pad for new investments

“Thanks to the President’s sweeping reforms, Angola has embarked on an ambitious drive to attract foreign direct investment,” said Guillaume Doane, CEO of Africa Oil & Power. “Africa Oil & Power is proud to support those ongoing efforts with a global promotional campaign. The AOG Conference & Exhibition, which has become an unmissable, unrivaled national investment event, will provide a strong anchor point for the 2020 initiative.”

Capital inflows into bankable projects will be a primary objective of the 2020 effort. Ongoing initiatives being promoted include the 2020 oil and gas licensing round, marginal field development, gas monetization, Sonangol’s Regeneration Program and attractive projects across the value chain, including the international tender for the Soyo refinery and the ramp-up of the Cabinda and Lobito refineries.

The AOG Conference & Exhibition is the second edition following a highly successful inaugural event in June 2019 that brought more than 1,700 delegates, 67 speakers and nearly 50 exhibitors.

Officially endorsed by the Ministry of Mineral Resources and Petroleum, AOG 2019 gathered key government officials and C-suite executives from across the energy value chain for a week of keynote presentations, moderated panel discussions, exhibitions, networking gatherings and investment facilitation.

With two days of conference and exhibition, and one day of workshops led by Microsoft, PwC, Centro de Apoio Empresarial, Friburge and Administração Geral Tributária, Angola Oil & Gas 2019 was one of the most highly attended events in Angola’s oil and gas history.

H.E. President Lourenço and H.E. Diamantino Pedro Azevedo, Minister of Mineral Resources and Petroleum, opened the conference, with speeches delivered by H.E. José de Lima Massano, Governor of the National Bank of Angola, Eng. Seabstião Pai Querido Gaspar Martins and Eng. Paulino Jerónimo, CEO of ANPG.

Private sector keynotes and appearances were given by Total CEO Patrick Pouyanné and ExxonMobil’s Senior VP of Upstream Oil & Gas Deepwater Hunter Farris, among others.

The event received strong support from the Angolan oil and gas industry, with major players including Sonangol, Total, ExxonMobil, Chevron, Eni, Equinor, BP, Schlumberger, Baker Hughes, Halliburton and other international companies participating as sponsors, exhibitors, speakers and delegates.

The 2020 event aims to expand in size, scale and prestige. Anchored by a VIP program of senior government officials and global CEOs, AOG 2020 will be the premier gathering for deal making and networking.

Discussion points will include offshore oil and gas exploration and licensing, gas monetization, market entry, the ease of doing business in Angola, digitalization and oilfield technologies.

New to the conference will be a Digitalization and Technology forum, which will showcase advanced technologies pioneered in Angola on the exhibition floor.

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OPEC Meets In Vienna, Nigeria Complies With Oil Cut Agreements

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The Organisation of Petroleum Exporting Countries (OPEC) is meeting in Vienna on Thursday to among others review oil cut agreements and deal with developments in the global volatile market

The global oil market in the last month has witnessed oil price dropping from $64.30 to $61.20 in the past few days, owed to inability of members to comply with agreements

Members of include, – Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola, Equatorial Guinea and Congo, Iran, Iraq, Kuwait, Saudi Arabia, Venezuela and Qatar. Another meeting, involving OPEC and non-OPEC members is scheduled to hold the next day, December 6, 2019.

In his remarks, OPEC’s general secretary, Mohammad Sanusi Barkindo, the global market in the last five years have been marked by turbulence and recovery, by crisis and calm, by uncertainty and confidence. He said however that only cooperation on the side of members of OPEC will make the difference.

“OPEC and its non-OPEC partners have turned the tides and ushered in a new and better way of doing business. We need a strategy that involves respect, collaboration and transparency; a strategy that is defined by what we have in common, rather then what makes us different. We need an approach that embraces tolerance and openness to the views of others; a modus operandi that brings out the best in all of us,” the OPEC boss said

Meanwhile, ahead of the OPEC meeting in Vienna Nigeria’s minister of state, petroleum, Chief Timipreye Silva, has said that Nigeria is committed to full implementation of OPEC agreements, including oil cuts.  He said that Nigeria had achieved 100% compliance in November, pointing out that this has had brought stability to oil markets.

Reuters quoted Sylva saying he had assured Saudi Energy Minister bin Salman, who is OPEC monitoring ministerial monitoring committee, that Nigeria’s compliance with oil cut agreement had improved substantially.

Whereas Nigeria and Iran are two OPEC members accused of rebuffing agreements on oil production cuts, the body is meeting on Thursday to review agreements, of which deadlines are in March. The meeting in Vienna would also review the outlook for the oil market for the first half of 2020.

Nigeria’s crude production in the third quarter stood at 2.04 million barrels per day, its highest since the first quarter of 2016, which helped its economy grow 2.28% in the three months to September, Nigerian Bureau for Statistics said in its latest report.

By Chibisi Ohakah

EBRD Injects $183m To Strengthen Egypt’s Renewable Energy Inflows

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European Bank for Reconstruction and Development (EBRD) is injecting $183million to the Egyptian Electricity Transmission Company (EETC), a state-owned company, for financing and modernisation of Egypt’s electricity grid renewable energy.

The money will be used to strengthen it through the construction of new substations that will allow the integration of new energy sources, Afrik21 reported yesterday. The ultimate goal is to facilitate the injection of 1.3 GW of electricity produced from renewable sources.

Currently in this North African country, two sources of electricity are more highly valued, with large-scale production. First of all, there is solar energy, with production concentrated mainly in the Benban photovoltaic solar complex, which will eventually provide a production capacity of 1.65 GWp.

The report said the project is fully developed by independent power producers (IPPs). This is the case of the Norwegian Scatec Solar and the French EDF Renouvelables, a subsidiary of the giant Électricité de France (EDF).

They have recently commissioned their photovoltaic solar parks in the Benban complex. Work to strengthen the network is in progress in this locality located in the governorate of Aswan. They are led by the Egyptian company El Sewedy Electric. These include the installation of a 500 kV transformer, as well as the construction of a 195 km-long 500 kV high-voltage line from Benban to Upper Egypt.

The other renewable energy source used in Egypt is wind power. The projects are developed by the IPPs, most of which are concentrated in the windy locality of Ras Ghareb in the Gulf of Suez. In fact, a wind farm has already been commissioned in this area. With a capacity of 262.5 MW, it belongs to a consortium composed of the French giant Engie, the Egyptian company Orascom Construction and the Japanese company Toyota Tsusho Corporation/ Eurus Energy Holdings Corporation.

This electricity is fed into the EETC network. Other wind energy projects are being developed in the same locality to boost the capacity of the grid, hence the importance of modernising and strengthening it.

The EBRD estimates that the use of the $183 million loan granted by EETC will help to reduce CO₂ emissions by 77,000 tonnes per year in Egypt, Afrik21 said

By Chibisi Ohakah

NNPC Commits To Achieving Outcomes In Frontier Basin Exploration

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Nigeria’s Oil Industry Needs More Privatization to Flourish

Group managing director of the Nigerian National Petroleum  Corporation (NNPC), Mallam Mele Kyari, has expressed the commitment of the Corporation towards achieving desired outcomes in ongoing exploration activities in Nigeria’s frontier basins.

Speaking at the 2nd Summit on Research Activities in Nigeria’s Frontier Basin held in Abuja, Mallam Kyari affirmed the readiness of NNPC to lead the campaign which would ultimately ensure that more works are carried out in this regard, with a view to increasing the nation’s reserves, investment opportunities and create employment for the teeming youths in the country. 

He however noted that this feat could only be achieved through doggedness, consistency, creative thinking as well as innovative ideas and the deployment of new emerging technologies. Mallam Kyari said NNPC was ready to actively collaborate with competent institutions of learning to carry out exploration activities, especially in the areas of geological and geophysical data generation, environmental baseline studies, drilling location preparation, among others, saying this would bridge the gap between the academia and the industry.

He acknowledged that the industry’s position today was that expanding the nation’s reserve can only be realized through huge investment in research as an enabler for innovation and new technology.

He expressed optimism that the summit would add valuable contribution in the quest to expand the frontiers of oil and gas exploration in the country.

Also speaking at the event, the director general/CEO, Energy Commission of Nigeria (ECN), Prof. Eli Jidere Bala, expressed total confidence in the collaborative capacity of NNPC to galvanize the commitment and leadership needed to achieve the expansion drive through research and development, as part of the goals of and target of the summit.

The event was organized by the National Centre for Petroleum Research and Development (NCPRD), Energy Commission of Nigeria in collaboration with the NNPC, Nigerian Geological Survey Agency and the Abubakar Tafawa Balewa University, Bauchi.

The theme of this year’s summit was “Nigeria’s Frontier Basins: Vehicle for Reserve Growth through R&D”.

By Chibisi Ohakah

Partnership Approach Proves Crucial In Remote Healthcare

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A partnership between Remote Medical International and Tullow Oil is ensuring that the healthcare needs of its workforce are met on its Kenyan operations

Tullow has a rich heritage of discovering significant oil resources in East Africa. The group first started exploring in Uganda in 2006, successfully opening the Lake Albert Rift Basin, which has discovered resources of some 1.7 billion barrels of oil. Tullow has taken its knowledge and understanding of the geology in Uganda across into neighbouring Kenya. Since 2012, Tullow’s successful exploration and appraisal drilling campaigns in Kenya have resulted in the opening of a second new tertiary rift play in the South Lokichar Basin.

It all began in Kenya in 2010, after signing agreements with Africa Oil and Centric Energy to gain a 50 per cent operated interest in five onshore licences. In 2012, Tullow farmed in to onshore Block 12B with 50 per cent and increased its interest in Block 12A to 65 per cent.

The Ngamia-1 exploration well in Kenya marked the start of a significant programme of drilling activities across the acreage. In 2012, the Ngamia-1 well successfully encountered over 200 metres of net oil pay, the second East Africa onshore tertiary rift basin opened by Tullow. This has since been followed by further exploration success in the South Lokichar Basin at the Amosing, Twiga, Etuko, Ekales-1, Agete, Ewoi, Ekunyuk, Etom, Erut and Emekuya oil accumulations. 

Safety is crucial in the oil and gas sector and the safety of oil and gas workers is paramount. It is not just protecting workers during catastrophic incidents but managing their day to day needs. When operating in regions such as Africa this healthcare provision is made more difficult by the often remote and inhospitable regions.

Partnership approach

For its operations in Kenya, Tullow turned to Remote Medical International (RMI) to provide comprehensive medical services. The operations are primarily in northwest Kenya, an area with complex geographical, political, and environmental challenges in addition to the usual complexities of industrial work in remote locations.

Remote Medical and Tullow have been successful in addressing these challenges, greatly improving the on-project health, and making a positive impact on the local communities. This has been achieved through a collaborative partnership, location-specific planning, innovative solutions to problems, and localisation programmes.

“We provide healthcare to various organisations, operating companies, governments, non-profits and the UN when they need health care for their workers in remote and challenging places around the world,” Wayne Wager, CEO Remote Medical International, says. “We provide medical care, we provide medics that go tothese remote and challenging places and take care of the workers for commercial companies, including soldiers seconded to the UN and so forth, and all the associated services in connection with providing that medical care, such as equipment and supplies.”

Local involvement

From the outset, RMI were aware that this project would be extremely dynamic, both because of the inherent challenges and the capricious nature of early stage oil and gas production. It was decided that in such an unpredictable scenario close contact was essential, so RMI opted to headquarter operations in the same office complex in Nairobi with Tullow. With operations co-located, communication was efficient, and implementation proceeded according to plans. Tullow provided 14 key deliverables to achieve within 90 days of award, all of which were hit.

RMI gets its staff from two places. “First, we have very high standards for our medical practitioners,” Wager explains. “We put them through a very strict online test that they must pass. Once they’ve passed, they go through an interview process with our medics and our Chief Medical Officer so that we’re very confident in the people that we send out.

Those people are very competent in the field and also have resources back at base. A very competent medic in the field is just one phone call away from our Global Communication Centre. They can call and get advice immediately from other medics and our medical staff. We also support them with equipment and supplies that are very high quality.

“They’re working with the best equipment and have the best pharmaceuticals available to them, all within the country constraints. As you know, the way medicine is practised on a work site in a remote area is much different than somebody showing up in an urban ER setting. Oneof the other resources that our medics have is telemedicine so that they can send physiological signals, blood pressure heart rate, ECG and video to our medics at the communications centre. We have a very, very comprehensive backup for our medics in these remote places.

Part of Tullow’s sustainability culture is to encourage local employment. Due to the capital and technology intensive nature of the industry, only a relatively small number of highly technical and specialised personnel are needed by operations. They also operate in countries where the oil industry is new and just developing and so the skills and expertise of the national workforce can be limited or still emerging.

However, they have a commitment to hiring locally and have set internal targets for increasing the proportion of staff represented by the nationals of the host countries. There are also employment opportunities in the supply chain, particularly in our onshore operations. “We try to maximise these by requiring our international suppliers to employ and source goods and services locally, as part of their contract with us,” their policy states. “We also work closely with our host governments to ensure that their expectations around skills localisation are balanced with operational and labour market realities.”

For their part, RMI undertakes rigorous screening of medical personnel to ensure project success, which is essential on a project like this one. At the height of the project RMI employed 52 people in support of Tullow, each thoroughly vetted in a multi-step process. Of those, over 65per cent were local workers – including doctors, clinical officers, ambulance drivers, and administrative staff. This met both Tullow’s and RMI’s social responsibility goals.

One standout achievement came with the ambulance driver positions. RMI created a custom training and mentorship programme in partnership with the Kenya Council of EMTs. This programme provided EMT certifications that met international standards–a first in Kenya. Within two years of starting the project, the percentage of Kenyan nationals had increased to 85 per cent.

Stay or go

A close relationship with RMI’s in-country evacuation partner, Amref, and partner hospital Aga Khan University Hospital in Nairobi was established for efficient medical evacuations when needed

although Wager was keen to point out that evacuation is a last resort.

“It’s like the cavalry coming over the hill,” Wager says of emergency medical evacuations. “It’s very exciting and when people talk about our role they talk about the evacuations, but in fact, I’m speaking for RMI, our medical team are taught to minimize the drama and minimize the complexity of the healthcare.

I emphasize very, very strongly, without sacrificing any quality of outcomes. We monitor that very carefully with an electronic medical record system, which are reviewed by medical doctors.

“Our quality of care is very high, but one of the things that I think has been abused in the industry, is at the drop of a hat, workers are evacuated and the quality of care they get is not necessarily better. We find that doing less is more so monitoring the workers, the patient, very closely with our staff on site is often the best option. They end up doing a lot better than had they been evacuated. Evacuations are, again, very glamorous, sounds cool, but it’s not necessarily the best thing for the worker.”

Reduced recordables

This comprehensive approach to care, combined with a deep and committed partnership from Tullow, allowed the two companies to achieve a remarkable 86 per cent reduction in TRIR over the course of this project.“Remote Medical International is a customer-oriented service company with innovative IT solutions to medical issues such as secure cloud-based patient notes,” Gordon Scott, EHS operations manager, Tullow Kenya, says. “They have very good training capabilities and medical support to a large project in a very challenging area. A very responsive company with an excellent project manager who maintains a very close contact to respond quickly and efficiently. They have achieved excellent results in training and up-skilling the local community, work force and medical providers.”

The Reality of Snakebites: Time is Tissue

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With at least 600,000 people worldwide killed or permanently disabled each year, snakebites are the biggest public health crisis that no one has heard of. For projects in Africa, Asia and Latin America, the Oil & Gas industry needs to consider the risks of workers being bitten and its corporate social responsibility to support local communities with this silent killer. Remote Medical International, working alongside the Asclepius Snakebite Foundation, have developed proven management and response strategies specific to the threat of snakebites.

Dealing with snakebites effectively cannot just be about limiting the impact on working hours but must also be about saving lives. The safety threat presented by snakes is very real as is the impact on workforce morale and efficiency.

Alongside a robust safety system and education that helps workers avoid snakebites, a strategy to efficiently and effectively deal with a snakebite is also needed. Even in offshore environments,sea snakes are a threat. Whatever the location, if dangerous snakes are present, a definitive treatment program will help save lives, prevent permanent disability and give workers peace of mind to get on with their jobs in an efficient manner.

Ultimately, as with a heart attack or a stroke, “time is tissue” with a snakebite and earlier antivenom administration is strongly associated with reduced mortality, morbidity, and lost time. The first minutes and hours after envenomation are critical to saving the life and limb of the patient. Whether neurotoxic, cytotoxic, or hemotoxic, fast response is critical. In all cases, the solution is the right dose of the right antivenom.

When patients are treated quickly with the appropriate antivenoms and supportive care, the progression of an envenomation can often be arrested before serious injury has occurred.The problem in remote locations is that, even if the right antivenom is available, medical personnel often lack the training to administer it.

Oil companies, should be asking if the risk of snakebites at the project stage is a concern and, if so, what should be done? Although Medevacs may appear to be a good option, there are many downsides to this approach. First, a Medevac is costly and places stress on the evacuating patient. Second, and more critically, time really is of the essence when it comes to treating a snakebite.

Delaying treatment means increased damage to surrounding tissue, resulting in greater risk of permanent disability or even a fatal outcome. The progression of necrosis can be prevented or stopped by antivenom administration, but once the damage has been done it cannot be reversed.Another question when considering the Medevac option is that, once evacuated, does the medical centre the patient is transferred to have the correct antivenom and expertise to deal with the envenomation? There is still the need for a complete care strategy.

Although Medevac may still ultimately be required, the ability to assess and treat the wound locally offers numerous benefits. First, the bite can be treated more quickly without a delay in the time to transfer the patient. This is proven to produce much better patient outcomes. The knowledge that this service is at hand also presents the workforce with greater peace of mind and can improve morale. In addition,the oil company is also opening an opportunity to provide supplementary support to remote, local communities where, previously, the chances of a good outcome following envenomation were low. This enhances corporate social responsibility (CSR) and generates good will in the local community.

Rhino Viper image

In Kenya, snakebite envenoming claims thousands of lives every year and, like diseases such as malaria, is a part of everyday life. For the oil industry, the threat of snakebites in this area is probably one of the top three risks to workers.

To support its local strategy in dealing with snakebites, International Oil Company Tullow Oil has worked alongside Remote Medical International with the support of the Asclepius Snakebite Foundation to put a robust response strategy in place for its sites in Kenya. This includes donations of medicines, and training of staff in local hospitals to systematically assess, diagnose, and treat patients with snake envenomation. The definitive treatment capability that has been developed produces better patient outcomes for anyone who is bitten in the area, and reports are already indicating a reduction in snakebite deaths and disabilities and an increase in patients seeking treatment in the area since the program began.

The response strategy from Remote Medical International includes evaluation of the local threat, identification of species of concern, assessment of the relative risk to workers, and a clear risk reduction strategy. The clinical implementation comprises assessment of which antivenom is most effective against the local venomous snakes of medical significance and the creation of advanced field treatment protocols, along with continual advisement and 24/7 consultation with medical and subject matter experts (SME) in the event of envenomation.

Andy Kimmell, Operations Director, Global Coordination & Security at Remote Medical International said: “A medical response team for an envenomation needs to be trained specifically for such an event but the overall management of snakes in the area requires cooperation through a multidisciplinary team. We work with experts in snakebites and antivenom and a senior SME is always available to oversee incidents. It is through a well thought out, robust and cohesive strategy, put together by experts in this area, that we are able to save lives and limbs.”

Prevention of snakebites is the first goal. The team works proactively with snake handlers, safety and security teams to try to remove the threat of snakebites from camps and work areas. Inevitably, however, this cannot be 100% assured and snakebites do occur. When this happens the circumstances are reviewed, and safeguarding procedures updated if appropriate.

Safe and sound asleep?

“At a remote oil and gas camp in Kenya, a man sleeping in an eight-man dormitory awoke with breathing difficulties and a pain in his hand. The on-site medics quickly identified it as a cobra envenomation and acted” recalled Kimmell.

He added, “Of course, a top priority was to administer the correct antivenom and treat the patient. The neurotoxic bite was attacking the respiratory system and quick action was needed to save the man’s life. The other priority was to get the other seven men out of the tent and to safety until the snake had been found. Snake handlers and security teams worked quickly to find the snake, humanely capture it and release it in accordance with procedures outside of the camp.

The other underlying issue for this attack, however, was that the snake entered a place that workers considered a place of rest and safety..The onsite snakebite team, including handlers, security and medical staff, worked to restore confidence among the workers and carry out due diligence to ensure there was not a bigger, unseen issue on site such as nest of cobra eggs nearby that had gone unnoticed.”

Jordan Benjamin, Founder & Executive Director of The Asclepius Snakebite Foundation said: “This example shows the complexity of dealing with snakebites in an austere environment. Every snakebite is a unique toxicological emergency that must be dealt with quickly and precisely in order to ensure the best possible outcome for the patient.

Every minute wasted after a bite occurs allows more time for the various venom components to attack their targets in the victim’s body, and there is a marked increase in mortality for every hour that passes until the right dose of the right antivenom is administered.

Companies that rely on Medevacs as their primary response to a snakebite fail to realize that they are making the situation worse. It is far more effective, both in cost and in outcomes, to invest in a robust snakebite management plan with onsite antivenom treatment capabilities.

Snakebite is an occupational hazard, and the psychological effect on others in the work area can also be significant. Robust systems need to be in place to both react to the immediate threat to life from the envenomation and deal with how and why the bite occurred, taking any actions necessary to reduce risk in the future.”

A little about antivenoms…

Developments in antivenoms have helped to reduce mortality rates from snakebites in remote areas. Treatments were previously based on using antibodies from horse serum and required constant refrigeration. This posed several problems: Antibodies from horse serum are known to produce high rates of anaphylaxis and can provoke life-threatening anaphylactic reactions to the antivenom.

Its administration required at least two advanced medics on site to deal with any reaction. Since 95% of bites occur in rural areas of the developing world, the need for refrigeration also severely limited where the antivenom could be stored, often leading to a delay in getting the antivenom to the patient.

Forest Cobra image

Modern antivenoms are much more stable and use highly purified antibody fragments that have undergone additional processing to remove the immunogenic component of the molecule responsible for severe allergic reactions. This means they can be transported without cold chain refrigeration, stored on a shelf at ambient tropical temperatures for years, and administered safely by direct intravenous push, helping reduce the time to treatment in remote locations.

“The advances made in antivenoms have helped enormously with the threat to life of snakebites in remote areas. Freeze dried serums that do not require refrigeration and have longer shelf life make treatment more accessible and more affordable, as well as providing improved safety with lower risks of an allergic reaction. With these antivenoms available, more work now needs to be done in terms of outreach and education to help remote communities deal with this threat.” added Benjamin.

Summary

Snakebites claim hundreds of thousands of lives and limbs every year worldwide. A robust strategy to deal with an envenomation is needed to reduce mortality rates and the chances of permanent disability in the oil industry. By working with subject matter experts and producing a complete plan to reduce the risk of snake encounters and procedures to swiftly and effectively treat snakebites at the point of injury when they occur, Remote Medical International has helped the oil industry better handle this threat. Medevacs, although sometimes necessary, should not be the primary approach to care of snakebites. Through education and outreach, the industry can also deliver vital support to local communities and workers to help make lives safer and better in regions where they are operating.

Dangote Refinery Listed Among ‘Top 25 Movers And Shakers To Watch’ In Africa Oil And Gas

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Covid19: Dangote Refinery Mgt Pushes Opening to Last Quarter, 2021

The African Energy Chamber has launched its inaugural ‘Top 25 Movers and Shakers to Watch’ list. The list provides a window to what key developments and advancements the African energy sector can look forward to in 2020 and beyond. It also profiles key individuals who stand to contribute significantly in shaping the continent’s energy economy.

The list made public in Johannesburg yesterday (Wednesday), yet not confined to actors in the oil and gas sector from the continent, features key industry deal makers and such as Aliko Dangote, chairman of the Dangote Group, coming up with 650,000 bpd capacity, Lagos-based game-changing refinery; United States President, Donald J. Trump, whose America-first oil politics are likely to affect global prices and the appetite of American majors to look outside; Ghana’s Kevin Okyere, who sits on one of the continent’s most promising assets after his company Springfield’s West Cape Three Points Block 2 discovery, and many more.

“With this list, we hope to put all key role players to task, we want to challenge them and pose the questions: ‘what’s next? Are you going to deliver on your plans and promises? How will you and your organization contribute to the development of Africa’s oil and gas sector?’,” said NJ Ayuk, executive chairman of the African Energy Chamber and author of Amazon best-selling book, Billions at Play: The Future of African Energy and Doing Deals.

In a statement yesterday, Ayuk said this year alone, the continent has seen improved cooperation and investment, large scale discoveries, world-scale projects coming online that make Africa the world’s hottest oil and gas frontier. “The next step is to find out how we can maintain this momentum and the people on this list can certainly provide answers. Africans should demand more from them” he added.

The Top 25 Movers and Shakers to Watch list forms part of the African Energy Chamber’s African Energy Outlook which has set out to provide a comprehensive overview of the oil and gas sector across sub-Saharan Africa, focusing on strategic, operational and investment trends in the industry.

“We watch developments in the industry closely and speak to a wide range of stakeholders. What we have noticed, is that a new breed of African oil men and women are playing an ever-greater role in the development of the continent’s resources, including with resources mobilized on the continent.

This is a trend we applaud. However, cooperation with international partners who still possess the technology needed to successfully undertake projects is very welcome” the statement quoted AuMickael Vogel, director of strategy at the African Energy Chamber.

By chibisi Ohakah

Four Oil Firms Sign Pact To Build Children’s Hospital At Daura

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Nigeria’s indigenous oil production company, Beleaoil has entered into agreement with three other companies to establish a one-stop children’s hospital in Daura, Katsina state, the home town of Nigeria’s President, Mohammadu Buhari.

The companies include Afdin Construction, Niya Engineering, BAABB International and Eagle Scientific and Laboratory Equipment, whose officials were on hand to sign on behalf of their companies while Chuks Izogu, Vice President, Belemaoil signed for the project sponsor.

Belemaoil, operator of Oil Mining Lease 55 in Kula, Akuku Toru local government area of Rivers state with its operations headquarters in Port Harcourt entered into the agreement with the firms to handle various aspects of the contract.

Speaking at the contract signing ceremony, Jack-Rich Tein Jr, founder and president of Belemaoil, Limited, said the provision of the hospital was a demonstration of its commitment to strengthening national unity. “We do business in the Niger Delta, but in doing so we touch lives cuts across the country. Before coming up with the hospital project, we have been providing welfare in the North including potable water which has also benefited Daura.

“What we are doing is not to display arrogance. It’s to display humility and recognise the importance of peaceful coexistence in the human race. This hospital would go a long way in helping our brothers within the Daura Emirate and Katstina state in general.

“We are saying that whether you are from North or from South, we are all one; we are not different. This is the smartest way to build bridges. You must not be full to share with the next man. I pray the contractors put out quality job so it serve as a legacy generations to come,” Tein said

The Daura Children Hospital, upon completion, would contain 100 beds in wards, two operations theaters, laboratory, scanning room, staff quarters and powerhouse among others. The project consultant, Mansur Kurfi of Multisystems, explained further that, “there can’t be a children hospital without maternity and a child might have issues before birth; so we there would also be a standard maternity with incubators and theatre for expectant mothers.”

Mr. Sani Ahmed Daura, who led the Daura Emirates delegation on the contract signing said, “We are highly impressed with Belemoil, not only for this children hospital, but with previous interventions, especially potable water.”

By Amaechi Okonkwo

NNPC Disowns Bogus ‘Annual Chemistry Competition’

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Nigeria’s Oil Industry Needs More Privatization to Flourish

Nigerian National Petroleum Corporation (NNPC) has distanced itself and its subsidiaries from a trending online advert inviting unsuspecting members of the public to submit entries for a phantom “2019/2020 Annual Chemistry Competition’’.

In a release issued yesterday, the national oil corporation described the online advert, which contrived that the exercise was organized to improve the standard of learning of Chemistry in Nigeria as phony.

NNPC advised applicants to be wary of the fraudsters behind it. In the release by the national oil company’s acting group general manager, group public affairs division, Mr. Samson Makoji, the company advised members of the public to contact the national oil corporation on any doubtful information in the public domain.

The advert had stated various fictitious monetary values to the categories of winners it was interested in luring into the fake scheme, listing eligibility of participants to include graduates of Chemistry, Industrial Chemistry, Chemical Engineering, Petroleum Engineering and other related courses.

While calling on students and stakeholders in the education value chain not to fall prey to the nefarious activities of the fraudsters, the NNPC said it had alerted the various security agencies to investigate the matter and apprehend the culprits.

By Chibisi Ohakah

Nigerian Senate Urges NLNG To Deepen LPG Reach Nationwide

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The President of the Nigerian Senate, Ahmad Lawan on Wednesday called on the management of the Nigerian Liquefied Natural Gas (NLNG) to make Liquefied Petroleum Gas (LPG) or cooking gas readily available for domestic use.

Addressing a delegation of NLNG, led by the managing, Tony Attah, the senate president called on the management of the NLNG to ensure an improved supply of the cooking gas in the country. “The LPG you bring to the country, you should bring more because if we have to move away from using the firewood and so many other things that can cause problems to the environment, we have to have more LPG for cooking.

“I believe that you have the wherewithal. If it requires a policy or legislation, I believe there is need to fast track our ability to make the LPG available to Nigerians. Today what is available to Nigerians is very low. I believe that we can do much better than that,” Lawan said.

The Senate President said NLNG is one project that is so important and critical to Nigeria. He said although so far the project is doing well but can still do much better adding that “Nigeria can benefit better from gas resource than even from oil.”

Lawan told the NLNG team to work closely with the relevant committees in the National Assembly with a view to fast tracking the realization of the objectives of the project. He underscored the fact that Nigeria is reputed to be more of a gas nation than oil adding that “we have what it takes to be very ambitious” like other leading gas-endowed nations.

Lawan said there is also a need to ensure stability in the Niger Delta to sustain uninterrupted operations in the region. “We believe that we should work to ensure stability in the Niger Delta. A lot of projections for our budget every year are based on crude availability. That requires that we should continue to have a stable Niger Delta environment where our oil and gas are produced.

“We should make every possible effort to provide amenities either through corporate responsibility and of course through government intervention to make that place stable so that we can continue to have the operations going on uninterrupted,” Lawan said.

Earlier, Mr Attah said the visit was to intimate the Senate President with the progress made by the company. According to him, the NLNG is seen as the fasted growing LNG company in the world. “We are a global player but we are 100% Nigerian company and a major source of pride to the nation.

“This year defines our 30th anniversary of safely operating and when we talk to our customers, they refer to us as reliable, responsible but most importantly trusted. “And we think that is really helping the image of our Nigeria because our ships go all over the world on a daily basis and we carry the flag to represent the country positively,” Attah said.

By Chibisi Ohakah

NNPC, China Firm Set To Commence AKK Project

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The Abuja-Kaduna-Kano (AKK) pipeline project has been holding the key to resolving the power deficit challenge of Nigeria. The managing director of the Nigerian National Petroleum Corporation, Mr. Mele Kyari, who stated this in Abuja yesterday, explained that it was the reason why the NNPC is offering all necessary support to the foreign partners on the project to deliver the project within time and within budget.

Kyari said that the NNPC, China Petroleum Pipeline Engineering Company Limited (CPPECL) and a Chinese firm, Brantex Consortium, would soon commence work on the Abuja-Kaduna- Kano pipeline project. Receiving a delegation of the partners, led by president of CPPECL, Sun Quanjun and the head of the Brantex Consortium at the NNPC Towers in Abuja, Kyari said that the AKK project was very important to the nation. He urged the China Pipeline Company to use it as a platform for other bigger opportunities in the oil and gas industry pipeline projects.

“We think you can deliver on the AKK project. If you execute the AKK project, we will also support your company to grow her imprint in Nigeria. I assure you that this partnership will be beneficial to us all and deliver value for the Nigerian people,” Mallam Kyari informed.

Earlier, the president of China Petroleum Pipeline Engineering Company Limited, Quanjun, said his company along with Brantex Consortium was prepared to deliver on the AKK project, stressing that it would deploy its new pipeline technology system capable of guaranteeing the integrity of the project for several decades to come.

Quanjun added that his company would also establish a training facility in Nigeria that would help in the training and retraining of its Nigeria employees, assuring that his company had one of the best pipeline training centers in China.

By Chibisi Ohakah

Moving To A Cementless Future For Completions

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By utilizing an innovative cementless technology, Total were able to reduce risk and increase operational efficiency for their Moho North field in The Congo.

The cementing process that isolates the various down hole formation zones as well as firmly fixing the casing in place has been core to the completion process since it was first used over a century ago. Despite its maturation as a completing technology is still presents a myriad of challenges to operators which has led them to seek new and better ways for zonal isolations.

During the drilling process, you will have to do several tests to make sure that you have correct pressure and a nonleaking well. Cementing is central to the discussion of zonal isolation and well integrity because cement typically provides at least one barrier in a well and is a component of the barrier envelope or barrier system during well construction and the operational phases of the well.

Three cementing challenges in deepwater
Part of the process of preparing a well for further drilling, production or abandonment, cementing a well is the procedure of developing and pumping cement into place in a wellbore. Most commonly, cementing is used to permanently shut off water penetration into the well. Part of the completion process of a prospective production well, cementing can be used to seal the annulus after a casing string has been run in a wellbore.

Additionally, cementing is used to seal a lost circulation zone, or an area where there is a reduction or absence of flow within the well. In directional drilling, cementing is used to plug an existing well, in order to run a directional well from that point.

Also, cementing is used to plug a well to abandon it. Deepwater is one of the most challenging cementing locations where operators face a triumvirate of challenges including low temperatures, low fracture gradient and shallow flow hazards.

A new way
That all changed last year when it was announced that Total had successfully utilized an innovative cementless completion technology in the Moho North Albian field that they had developed in partnership with Welltec.

The technology was Welltec Annular Isolation (WAI). Moho Nord is a deep offshore oil project situated 75 kilometers off the Congolese coast. It came on stream in March 2017 and is the largest oil project ever undertaken in the Republic of the Congo. The field will produce untapped reserves in the Moho-Bilondo license block, which covers an area of 320 kilometers and four reservoirs situated at water depths of 750 to 1,200 metres.

Given the challenges that cementing presents to operators they have long been searching for an alternative completion method that both reduces risk and saves operation expense. By using an innovative cementless technology it is possible for an operator to save up to $75 to $100m over a 15 to 20 wells deepwater field development plan can be achieved.

This solution is equally as viable for onshore and shallow offshore markets. Approaching it from a larger scale makes the value proposition more obvious. “We like to think that we work on solutions that are best for the well and the overall project,” Gbenga Onadeko, Senior Vice President, Welltec Africa, says.

“In most cases, our industry is integral to the economies of the oil and gas producing countries. We therefore believe that we are having a positive impact on the overall wealth of the nations we operate in.

“Total initially selected a cemented and perforated liner solution, the liner length was short and deep, implying the volume of cement was relatively small, which increases the operational risk of cementing the reservoir section.

Because of the potential of cement contamination and also to increase the success rate of placing it behind the liner, the volume of cement pumped was increased by enlarging the hole (under-reaming) and drilling deeper i.e. a longer rat hole section, which placed the toe of the well within less preferential sections of the formation increasing the drilling and production risks.

“With the liner deployed and cement in place, the WAB is expanded quickly under full surface control sealing against the formation rock, displacing the cement, providing a high integrity pressure isolation between zones. This in turn ensures that even if channels or micro-annulus are present in the cemented interval, effective isolation is still achieved within the annulus.”

The long road to adoption
Even under the long-term depressed state of the price of oil that has necessitated a drive to greatly improve operational efficiency the oil and gas sector is still risk averse when it comes to adopting innovative techniques.

The deployment of this project started four years ago when the Total team arrived in the Congo to prepare for the deployment. “Initially the Total team was not ready for a full cementless solution, so they used one of our products, which is called the WAB, in the wells in addition to the traditional cement,” Onadeko says.

“Normally, the WABs can be used without cement to isolate several sections of the well,but in this case, because they had some technical issues, they decided to go with the WABs for their isolation propertiesin addition to cement.

“For most of the wells on this project, we had already deployed the WABs. But then towards the end of 2017 amidst the height of the industry downturn when the sector was really feeling the low cost per barrel, Total realised that this project was costing far too much.

It had been sanctioned when the price of oil was much higher, and they urgently needed to cut costs, which provided us an opportunity to utilise this technology with its associated cost saving. In December 17 they invited all the service companies that had a contract with them on this project, to come and discuss how they could slash the well drilling costs by half.”

Another reason that Total had confidence to proceed with the cementless WAI solution came about by chance. “On one of the WAB operationsthey put it in a long zone and accidentally put it into a well section thereby shutting off the hydrocarbon instead of water,” Onadeko explains.

“Then they had to shoot some explosives into that hole to perforate it and the WAB was robust enough to withstand the shock; it did not impair their production. So that was another reason why they could go ahead and use the cementless solution, knowing now that they can perforate through and get a diversion.

“We develop cutting edge technologies and work extremely hard to convince our clients to deploy the value adding solutions. One of values we add to the industry is to assist our clients in overcoming their initial reluctance. We want to ensure that these technologies are included in their field development plans to avoid paying premiums later due to rush mobilizations. Including the technologies in their initial plans reduces the risk of budget variation.”

The WAB and the WAI
The WAI provides long length open hole zonal isolation, significantly reducing the free annulus space between the casing and the open hole. The removal of this annular space can be beneficial in highly layered reservoirs of varying permeability, where selective production, stimulation or water shut off is required.

Its metal expandable sleeve is hydraulically expanded, under full surface control using the rig pumps. Sealing on the open hole is achieved using a series of compliant, elastomeric seals, backed up by full circumferential metal to rock contact fins that prevent seal extrusion under high differential pressure.

While the WAI is suited to zonal isolation, the WAB for well completions can be utilised to provide solutions to many requirements throughout the completion phase of a well. Its leak rate capability, when set in cased hole, makes it ideal as a high-pressure production packer for both high pressure gas and oil well applications.

In addition to this it can rotate and reciprocate during installation and cementing operations, and then expand and seal, on demand. In horizontal applications this allows the WAB to be incorporated as a Rapid Set Liner Hanger, reducing both risk and complexity in these often-challenging applications.

“The WAB gives us a zone of isolation,” Onadeko adds. “What we mean by that is you have a seal between a liner and reservoir and then you have a distance between that packer and the well.

So, you have like an open anulus between these two packers for zonal isolation purposes. What the WAB gives you is seal integrity between the liner and the rock. Once you have established your seal then you are able to simulate, inject or produce into a certain zone.”

When cementing fails
The main competition to this technology has been cement, where liners are cemented in a well. The challenges are where the trajectories and the geometry of the wells become more difficult.

In these instances, it becomes very challenging to assure the seal when using cement, despite that the bulk of wells today are completed with cement. But because cement does not always deliver the optimum seal between the liner and the anulus it makes it very difficult to compartmentalize your well.

“What the WAI gives you is cement replacement,” Onadeko continues. “Instead of leaving either cement between the packers or an open anulus, then the WAI fills the anulus with confined compartments; each WAI will be a compartment that’s isolated from the next compartment. We have no open anulus, we have no cement, but the whole of the anulus is now compartmentalized.

With that achieved, you can then decide if you want to leave that compartment isolated, or whether you want to perforate it, stimulate it or produce it or inject into it. The WAI breaks down your reservoir into two metre compartments. And then you’ve got control over each two metre compartments. And each department has high integrity in relation to sealing.”

There are several things to consider when removing cement from the completion process. Cement has three functions that it is trying to achieve for the well. The first as we have already discussed is to provide sealing which is not always possible as the well geometry becomes more challenging.

For the Moho project Total had a tremendous challenge in ensuring the cement was going to seal. The second function of cement is to provide an anchor between the liner and the rock. Finally cement also supports the rock formations. If the formation is unconsolidated it provides a support to the rock to make sure it does not cave onto the liner.

“When we remove the cement, we need to be sure that we’ve addressed all three, the sealing, the anchoring and support of the rock,” Onadeko explains. “The WAB delivers two of those; it gives you the anchoring or sealing, but across the open anulus you are dependent on the rock having some sufficient mechanical properties that it won’t start to fall in onto the liner.

Where the WAI will give you the sealing and the anchoring, it also gives you this mechanical support to the rock. So, WAI is really cement replacement in its full entirety, without the risk of the challenges presented by the geometry.”

Confusion Over Proposed N50 Surcharge For POS Payments At Fuel Stations

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There is confusion on the fate of purchasers of petroleum products from filling stations over a publication yesterday stating that beginning from December 1, this year, customers who make petroleum product purchases above N1000, with Point of Sale (POS) banking transaction, may be compelled to pay a N50 fee.

This is said to be a resolution the Independent Petroleum Marketers Association of Nigeria (IPMAN) conveyed in the publication. But ironically, the President of IPMAN, Chinedu Okoronkwo denied the development, saying that he personally did not authorize the publication. “It is not true. (The public notice has) no address and was not signed,” and added that the notice could be the work of fraudsters and did not emanate from IPMAN.

IPMAN members own about 19,000 out of the 25,000 registered filling stations nationwide.  They said their decision was based on a directive of the Central Bank of Nigeria (CBN) dated 17th September, 2019, to all commercial banks that charges of taxes and duties be imposed on all electronic transactions.

They quoted the CBN governor, Mr. Godwin Emefiele in the circular the apex bank issued at the time, saying, “In view of the foregoing, the general public should please note that this additional charge shall be deducted at source by the commercial banks in compliance with the directive above.”

Senate Laments Undue Delay In Brass LNG Project FID

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Senate President Flags Off NCDMB’s GSM Training for 1,000 Yobe Youths
Senate Passes Amended 2020-2022 MTEF/FSP

…summons NNPC, Brass LNG management

The Nigerian Senate has summoned the management of the Nigerian National Petroleum Corporation (NNPC) and the Brass Liquefied Natural Gas (LNG) for a discussion on the extent of implementation of the LNG project in Brass Island in Bayelsa state.

The Senate called for the immediate revival of the even as it lauded the conceptualization, design and commencement of work since 2004. It also urged the executive arm of government to create enabling environment for reputable oil and gas companies to take over the 17% shares each previously owned by ConocoPhilips and Total.

The Senate expressed worry that the project, which is said to have gulped over $1.2 billion as at 2011, covering early site works and maintenance, has remained moribund.

Senator Degi-Eremienyo, who moved the motion on the floor of the chamber, recalled that the Brass LNG is a green field project established to operate Liquefied Natural Gas Plant located in Brass Island, following an agreement signed in 2003 by NNPC with 49% shares; and Conoco Philips, Total and ENI International, with 17% shares each.

The senator regretted that it was the setbacks and delayed recorded in signing of the project’s Final Investment Decision (FID) that led to the di-investment of two shareholders, Conoco Philips and Total.

He described the moribund state of the Brass LNG project a “consciously organised sabotage by several stakeholders including NNPC through diversion of funds budgeted and provided for the execution of the project.”

The Nigerian government, he explained, conceptualized and eventually brought to stream the LNG project to convert the huge gas resources being wasted through gas flaring. He explained further that the idea behind the project was to eliminate negate environmental impact and generate revenue for faster economic growth.

Former President Olusegun Obasanjo performed the ground-breaking ceremony for the takeoff of the project in May 2007 after awarding the contract for the Front-End Engineering Design (FEED) to Bechtel Corporation late 2004 for two LNG trains with a total capacity of 10 million metric tonnes per year.

E/Guinea Announces Winners of EG Ronda 2019 Bidding Round

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Equatorial Guinea has announced the winners of the country’s oil, gas and mining concessions. According to a release by the ministry of mines and hydrocarbons Block E G-27 was awarded to Lukoil and GEPetrol and Block EG-09 was awarded to Noble Energy and Gepetrol.The announcement took place during the Gas Exporting Countries Forum 5th Heads of State Summit currently in Malabo (November 26-29). The ministry announced the winners of the 2019 licensing round for its oil, gas and mining acreage. Officially launched in April, the round received interest from 53 international and national companies, with 17 companies submitting official bids and seven companies awarded concessions for nine blocks.Block EG-27 (formerly Block R) in the Niger Basin, was awarded to Russian energy multinational, Lukoil and GEPetrol. Block EG-23 in the Niger Basin, which hosts the Estaurolita gas discovery, was granted to WalterSmith, Hawtai Energy and GEPetrol. EG-09 in the Duala Basin was awarded to Noble Energy and GEPetrol. In the Rio Muni Basin, EG-18 was awarded to Africa Oil Corporation and GEPetrol; EG-03 to Vaalco Energy, Levene Energy and GEPetrol; EG-04 to Vaalco Energy, Levene Energy and GEPetrol; EG-19 to Vaalco Energy, Levene Energy and GEPetrol; Block P to Vaalco Energy, Levene Energy and GEPetrol; and Block EG-28 to GEPetrol.The release stated that in Equatorial Guinea’s first ever mining licensing round, 15 blocks were assigned for the exploration of gold, silver, bauxite, coltan and other precious minerals. Blue Magnolia was awarded seven blocks for the extraction of copper, rare earth elements, platinum, gold, uranium, bauxite and plom; Oro Sac ACorp was awarded four blocks for the extraction of ore, silver, copper, zinc, plom and nickel; Akoga Resources was awarded two blocks for the extraction of platinum; and Manhattan Mining Investment Inc and Shefa Minerals SA were awarded one block respectively for ore extraction.“This demonstrates that Equatorial Guinea can attract significant interest of investors in the petroleum community as well as the mining industry. Hopefully, next year we will attract even more investments to our country,” the couty’s minister for mines and hydrocarbons, Gabriel Obiang, remarked.He hinted that his ministry has also signed a cooperative agreement with Russian geological research company Rosgeo and Venezuelan state-owned oil company PDVSA for the study of prospective onshore mining area on the country’s mainland. The ministry aims to sign production sharing contracts as soon as possible to enter into the next phase of negotiation. To work more collaboratively with potential investors, all of the blocks were offered on a drill-or-drop basis, with a reduction of signature bonuses to a minimum of $1 million and elimination of all pre-qualification requirements.The drill-or-drop policy provides each company with an initial two-year period to explore, process seismic data, define well locations, bring in additional investment, if necessary, and begin drilling. Only after this period, in which a company has the opportunity to evaluate and reduce its risk from the data obtained, will the company have to decide whether it wants to proceed with the exploration well or relinquish its license.Equatorial Guinea’s next licensing round will take place in 2020 and will include a different set of criteria by which to select potential blocks and new acreage on which to bid.
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By Chibisi Ohakah