Sahara Group To Explore Angola’s Energy Sector

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12th August 2019

IEA, OPEC Cite Caution About Global Oil Market, Post Covid19 Recovery

The International Energy Agency [IEA] has said that the noticeable economic slowdown and a ratcheting up of the U.S.-China trade war have caused global oil demand to grow at its slowest pace since the financial crisis of 2008. In its monthly report, the agency said the situation is becoming even more uncertain

“Global oil demand growth has been very sluggish in the first half of 2019,” Reuters quoted IEA recent report. The Paris-based agency said that compared with the same month in 2018, global demand fell by 160,000 barrels per day (bpd) in May – the second year-on-year fall of 2019.

From January to May, oil demand increased by 520,000 bpd, marking the lowest rise for that period since 2008. “The prospects for a political agreement between China and the United States on trade have worsened. This could lead to reduced trade activity and less oil demand growth,” the IEA monthly report said

Lowering its global demand growth forecasts for 2019 and 2020 to 1.1 million and 1.3 million bpd, respectively, the IEA cited China as the only major source of growth at 500,000 bpd for the first half of this year. Demand growth in the United States and India was just 100,000 bpd from January to June, it said.

“The outlook is fragile with a greater likelihood of a downward revision than an upward one,” the report said. According to Reuters, supply curbs by the Organization of the Petroleum Exporting Countries [OPEC] and its allies, meanwhile, had tightened the oil market, helped by slower non-OPEC production.

But the IEA said that balance would be temporary as it forecast robust non-OPEC production growth in 2020 at 2.2 million bpd, predicting the global oil market would be “well supplied”.

The IEA said economic concerns were overshadowing geopolitics, but the oil market continued to watch closely the tensions between the United States and Iran in the Gulf.

U.S. sanctions drove down Tehran’s July exports of crude oil by 130,000 bpd to 400,000 bpd, the lowest since the 1980s, Reuters said.

New Gas Discoveries Strengthen Egypt’s Global Presence

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12th August 2019

Egypt’s petroleum ministry has announced a new gas discovery in the Nile Delta region with an estimated production of 20 million cubic feet per day.

Officials believe that recent events in the country’s natural gas sector of the country is putting it on the world map as an energy hub in the African region

The discovery of gas-carrying layers was made by Petrobel-Belayim, an Egyptian petroleum company which manages gas and oil projects in the area, a statement from the ministry said recently. The company commenced exploration in the El Qaraa area of the Nile Delta which began in May.

The statement said that with the major discovery, Petrolbel-Belayim will further develop and put the well on stream once it is linked to production facilities. Egypt has been making spirited efforts towards pushing its gas sector to world stage and become a regional gas hub for the trade of Liquefied Natural Gas (LNG). After major gas discoveries in recent years, including the Zohr gas field in 2015, Egypt announced self-sufficiency in natural gas consumption last year with a gradual increase in local production.

“The plan is to develop major gas fields in the Mediterranean in cooperation with giant international companies,” the statement said. After the completion and operation of the gas field projects nationwide, Egypt’s natural gas output is expected to reach eight billion cubic feet per day during the fiscal year 2019/2020, officials say

The eight billion cubic feet target was decided a few months after officials said the country’s natural gas output had reached 6.6 billion cubic feet per day due to an increase in production at Zohr. The field represents the largest natural gas discovery ever made in Egypt and the Mediterranean, with an estimated 30 trillion cubic feet of gas.

Also on Tuesday, Italy’s oil giant Eni announced that production from South West Meleiha Development Lease, located in the Egyptian Western Desert, has started. The current production through two wells stands expected to reach 7,000 BOPD in September, Eni said in a statement.

More exploration wells are now planned to be drilled on the nearby prospects within the exploration area, it added. Another oil discovery was made in the Gulf of Suez on the Sidri South exploration prospect, with up to 200 million barrels of oil potential

Eni has been present in Egypt since 1954 and has estimated overall investments of 13 billion U.S. dollars in Egypt since 2015.

Egypt is Africa’s largest oil producer outside of the Organization of the Petroleum Exporting Countries (OPEC) and the third-largest natural gas producer on the continent (following Algeria and Nigeria). The North African country has the sixth-largest proved oil reserves in the continent, over half of which are offshore.

Although the North African nation is not a member of OPEC, it belongs to the Organization of Arab Petroleum Exporting Countries [OAPEC].

Lesotho To Unlock Power, Renewable At Cape Town 2019 Conference

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12th August 2019

Electricity Grid Collapses 27 Times in Three Years

Lesotho plans to be at the centre of discussions during the Africa Oil & Power 2019 coming up between October 9 and 11 in Cape Town, with a comprehensive expose on the southern African country’s energy investment opportunities.

The Lesotho government also hopes to use the Africa Oil & Power 2019 conference to launch an energy investment and diplomacy drive later this year. Minister of Energy and Meteorology Hon. Tsukutlane Au hopes to discuss new hydropower, wind and transmission projects with African ministers and over 1,000 investors at the conference.

A release from APO said Lesotho’s 2015-2025 Energy Policy commits the government to provide universal power access, up from just over one-third of households today. It said that in line with the AOP 2019 theme, EnergyWork, the government intends to use energy to create new jobs, stimulate private sector involvement and increase Lesotho’s competitiveness within the Southern African Development Community region.

“Through the Africa Oil & Power conference, the Ministry aims to significantly raise the profile of Lesotho in the international and pan-African energy dialogue, to promote Lesotho’s petroleum and power projects, and to bring attention to the great work of Lesotho-based companies,” the release quoted the Minister’s letter addressed to the nation’s energy sector actors. “We are proud to endorse this conference.”

Key projects to be discussed include the building of new hydropower and wind generation facilities, and transmission infrastructure to meet increased demand. New transmission lines would also link Lesotho with South Africa, and potentially make Lesotho an exporter of energy.

The Ministry of Development Planning will attend AOP 2019 alongside the Ministry of Energy and Meteorology in order to promote national infrastructure development projects. All domestic generation is renewable with abundant further potential for wind, hydro and solar power.

The Ministry of Energy and Meteorology is committed to building greater trade and investment ties in particular with South Africa and Angola, but also with global renewables, power and oil and gas companies. The Lesotho Electricity Company, Lesotho Electricity and Water Authority, Lesotho National Development Corporation, Fantique Trade, Nedbank Lesotho, Matekane Group of Companies, Citrus Investment Holdings and other national entities will all meet delegates and provide project briefings at AOP 2019.

AOP 2019 is Africa’s Energy Conference, held under the theme #MakeEnergyWork, and it is the official event of the Department of Energy of South Africa. The conference and exhibition takes place at the CTICC 1 in Cape Town on October 9-11.

US Shale Muscling Nigeria’s Crude Out Of The Market

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12th August 2019

Venezuela’s oil and gas sector sees worst crisis during 2020, says GlobalData - Orient Energy Review

Nigerian crude has reportedly suffered its slowest sales in August as U.S. exports of competing light, sweet grades flood traditional global markets. But the Nigerian National Petroleum Corporation [NNPC] group managing director, Mele Kolo Kyari, told Reuters that the quality of Nigeria’s products will swerve the market later.

“I think the advantage we have had is the quality of our crude. We know (buyers) will come,” Kolo Kyari said.

Meanwhile, traders say this is bad news for the country as budget estimates were made with every hope on oil earnings.

International observers are saying that US President, Donald Trump, is sure making real his threat to dominate world energy turf and reshape oil markets worldwide. Reports said U.S. oil exports surged 260,000 barrels per day in June to a monthly record of 3.16 million BPD.

Reuters had reported that Nigeria’s crude has largely been pushed out of the U.S. market in the last decade due to booming domestic output. Exports to the United States slid to zero for three weeks in July, the U.S. Energy Information Administration said of the Nigerian crude.

Shale oil from the U.S. Permian basin is pouring ever more into traditional strongholds for Nigerian oil in Western Europe, India and Indonesia, reports say. Both Nigeria and the United States are big producers of the kind of light, sweet grades that are ideal for refining into gasoline.

According to IHS Markit, Europe has imported around 46% of Nigeria’s oil since the beginning of 2019, India nearly 18%, and the rest of Asia about another 10%. “They’re facing bigger competition from the U.S., and in the last few weeks, U.S. exports have really picked up,” one major buyer of West African crude told Reuters.

As many as forty cargoes for export in August were still in need of buyers when Nigeria began publishing its preliminary programme for September exports beginning on Jul. 18. It was the largest oversupply so far in 2019, with about 25 cargoes the monthly norm.

Though the excess has begun to clear, in part due to energy majors absorbing much of the excess into their own refining systems, the discounts sellers made to attract interest has lowered price expectations for Nigerian exports for September. “They’ve got a big volume still remaining, and though the number of cargoes left for August is in the single digits, it seems to be taking longer and longer to clear lately. It’s not a pretty picture,” the crude buyer said.

The fire and explosion on June 21 which shut down the Philadelphia Energy Solutions (PES) refinery – a consistent buyer of Nigerian oil – only added to the marketing challenge.

W/Bank Sponsors Nationwide, Solar Power Light-up For Togo

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12th August 2019

The Togolese authorities have constructed a 30 MW solar power plant in Blitta in the centre of the country that is expected to reduce the country’s dependence on electricity exports.

The Blitta solar plant is one of four similar power plants of 30 MV each to be built in other regions of the small West African.

The objective is to provide access to electricity for the entire population of the West African country by 2030. This strategy is supported by the World Bank, which has launched the “Scaling Solar” programme.

The idea, according to Afrik21, aFrancais online, is to encourage private companies to invest in solar energy, in order to supply energy to the national electricity grid of the country concerned, and to ensure the rapid execution (maximum two years) of electricity projects, in particular through public-private partnerships (PPP).

The provision of the power plant is led by the International Finance Corporation [IFC], the World Bank’s corporate finance subsidiary. The “Scaling solar” programme will provide 90 MW to Togo’s national electricity grid.

The recently constructed solar photovoltaic power plant will be installed in Blitta, a locality located at least 260 km from Lomé, the country’s capital. According to the report, the project has long been well developed, having already undergone an environmental and social impact assessment (ESIA).

“The implementation of this project will affect the landholdings of the populations living in the direct project area (…) Given the importance of this project for the country and the need to carry out the expropriation procedure in order to ensure fair and prior compensation of the affected persons, it is essential to declare the project to be in the public interest”, says the ESIA report.

The Blitta solar power plant will be added to a similarly large facility to be built in Dapaong, in the Savannah region of northern Togo. This other project is already on track since the Togolese State already has two financial partners. These are the Abu Dhabi Development Fund (ADFD) and Amea Power, a company based in Dubai, United Arab Emirates.

The latter is also said to be building a 120 MW solar power plant near N’Djamena, the Chadian capital. The Togolese government reports that the Blitta solar project is part of the National Development Plan (NDP).

NNPC-NSChE Partnership To Make Nigeria Net Exporter Of Refined Products

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12th August 2019

The Nigerian National Petroleum Corporation (NNPC), has stated that its proposed partnership with the Nigerian Society of Chemical Engineers, NSChE, to build condensate refineries will make the country a net exporter of refined petroleum products.

This was disclosed by the Group Managing Director of the NNPC, Mallam Mele Kyari when he received the National Executive of the NSChE, led by its President, Engineer Onochie Anyaoku.

According to Kyari, the Corporation was willing to tap from the abundant expertise and experiences of the Society in order to ramp up the refining capacity of the country.

Noting that this will be done through collaboration with the Society to build a skilled workforce for the Corporation and the entire country through capacity building workshops and seminars, NNPC GMD said, “We will keep the flag flying and take the NNPC to the next level by delivering value to the Nigerian people. The NNPC Group is willing and ready to work with NSChE to ensure that the corporation remains a going concern. We look forward to every support that we can get from you,” Kyari stated.”

On his part, Engr. Anyaoku who expressed delight over the development, congratulated Kyari on his new appointment.

He added that the society will work with NNPC to tackle the challenges facing the nation’s oil and gas industry. “It is therefore appropriate, that we seek ways to support your group not just to heighten awareness of numerous NNPC’s achievements, but also to find a suitable framework to leverage your efforts,” Anyaoku said.

Elizabeth Uwandu

Revert To 50% Derivative For Oil States – Ijaw Youths To FG

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12th August 2019

The Ijaw Youth Council (IYC) has called on the Federal Government to increase the derivation to oil-producing states in Niger Delta from 13 to 50 per cent.

According to IYC president, Pereotubo Oweilaemi, the government should put this into consideration as it is set to review the sharing formula of the country.

Oweilaemi explained that “As the Federal Government is proposing to review the revenue sharing formula in the country, IYC while commending the government on this also demands for an upward review of the 13 per cent derivation to the oil-producing states.

“We demand that the revenue committee should be guided to what it used to be in the 60s. In the 60s, the revenue sharing formula was 50 per cent to the producing states; 20 per cent to the central government, while 30 per cent was kept in a pool from which distributions were made to all regions in a proportion of their population size.

“Let us, therefore, revert to this sharing formula being practised in the 60s before the civil war. We are certain that an upward review of the meagre 13 per cent derivation to 50 per cent will aggressively address the perennial oil crisis in the Niger Delta.

“It will stabilise the oil industry thereby boosting our daily productions. This is an opportunity for President Mohammadu Buhari to write his name in the annals of golden history for resolving the Niger Delta conundrum,” IYC said.

It recalled that even the Governor Nasir el-Rufai-led APC Committee on True Federalism recommended 100 per cent derivation to the oil producing states, adding, “If the government cannot implement the el-Rufai committee’s recommendations, then we suggest that the country should go back to the sanctity of the original covenant entered into by our founding fathers in the 1960 and 1963 Constitutions.”

Elizabeth Uwandu

SPE Nigeria Council Recognises DPR’s Presence At 2019 NAICE With Award

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9th August 2019

The Department of Petroleum Resources (DPR) has been honoured with an award for its participation during the 2019 edition of Nigeria Annual International Conference and Exhibition (NAICE) organised by the Society of Petroleum Engineers, Nigeria Council.

The award which was presented by the SPE International President, Sami Alnuaim, the Nigeria Council Chairman Debo Fagbami and other Council members was in recognition of the regulatory agency’s presence and full participation during the just concluded annual event at Eko Hotels and Suites in Lagos.

Also, a staff of DPR, Friday Uzoigwe received an award for his excellent presentation titled “The Impact of Reservoir Heterogeneity in the Modelling of Scale Inhibitor Squeeze Treatments” during the conference.

DPR Seals 53 Filling Stations, 4 Gas Stations In Kaduna Over Non-Compliance

By

Peace Obi

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9th August 2019

The Department for Petroleum Resources (DPR) has sealed 53 filling stations and four gas stations in Kaduna state for non-compliance and sharp practices.

The Zonal Operations Controller, Kaduna Zone, Isa Tafida disclosed this in Kaduna on Tuesday, during the Department’s routine surveillance on filling and gas stations in the state.

According to Tafida, the exercise which took place in July is part of the organization’s responsibility of monitoring and supervising the activities of the oil and gas industry across the country. Adding that it was “aimed at checking product hoarding, diversion and selling of regulated products above the approved pump prices, and under dispensing of petroleum products.”

Continuing, Tafida said the exercise was also to check stations operating without a valid licence or expired licence, those operating under unsafe condition and non-adherence to minimum safety standards.

Speaking further, he explained that, “a total of 354 petrol stations were visited within the month and were found selling products below or at the approved pump prices of N143 to N145 per litre while 19 gas refilling plants were also visited.

“53 filling stations were sealed for various offences; 11 stations sealed for under-delivery to the public, one station was sealed for over-delivery, 40 were sealed for non-compliance and
adherence to safety regulations and one was sealed for diversion of product.

“Additionally, four gas refilling plants were sealed for offences varying from operating without a valid licence, installation and upgrade without approval and non-compliance to safety standards. Two plants were found to be operating illegally, i.e. construction and operation without a DPR licence and other statutory approvals of relevant agencies.

“These were dismantled accordingly in addition to a Liquified Petroleum Gas (LPG) Add-on which had installed capacity in excess of its issued approval.”

Tafida urged operators to adder to the safe operating conditions of LPG plants and in line with revised DPR Standard Operating Procedures (SOP) and guidelines issued recently.

The Zonal Operation Controller assured the general public that stringent safety measures are being applied in accordance with international best practice as the nation witnesses increased LPG demand and usage across the states of the federation.

He commended all the retail outlets and LPG plants which have been operating in compliance with applicable petroleum laws, regulations and statutory guidelines, and assured that the ongoing surveillance exercise and the tempo will be sustained to ensure petroleum operations and all facilities are kept in check in the interest of the general public.

“I use this medium to caution all operators to desist from engaging in sharp practices and activities
that contravenes the Petroleum Laws and Regulations.” He added.

Go Beyond Train-7, Focus On What Next, Kyari Tells NLNG

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9th August 2019

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, has called on the management of the Nigerian Liquefied Natural Gas (NLNG) to begin to focus on what else can be done beyond Train-7 to expand NLNG operations, assuring that the October final investment decision (FID) on the project is a done deal.

In July last year in London, the Nigerian NNPC, Shell, Total and Eni signed the front-end engineering design contract of the Train-7 of the Nigeria Liquefied Natural Gas Limited. The event also witnessed the commemoration of the repayment of $5.45 billion loan for Trains 1 to 6 by the NLNG shareholders.

The NLNG Train-7 project aims to increase the company’s production capacity by the expansion of Trains 1-6 and associated infrastructure at an estimated cost of $4.3 billion. The NNPC had put the target for the project FID date for the fourth quarter of this year.

While speaking with members of the top management of the NLNG, led by its Managing Director, Tony Attah, who visited him in Abuja yesterday, Kyari reiterated that the eight million-tons per annum (MTPA) Train-7 project is designed to expand the company’s production capacity from the current 22 MTPA to 30 MTPA.

The NNPC GMD assured of the unflinching commitment of the federal government and the NNPC management in the future expansion drive of NLNG. According to him, all obstacles that could impede the actualization of the Train-7 FID project should be promptly identified and removed ahead of the October 2019 timeline.

In his presentation, the NLNG MD, Mr Attah, said the company would be relying on the usual invaluable support from the Corporation to achieve the successful execution of the Train-7 FID project and lots more. He announced that the project would generate a projected 12,000 jobs with massive spin-offs on the nation’s economy.

Jointly owned by the NNPC at 49%; Shell, 25.6%; Total, 15%; and Eni, 10.4%, the NLNG’s journey started in 1999 with the inauguration of Train 2 ahead of Train 1, which was inaugurated in 2000.

The company grew to a six-train facility with the inauguration of Train 6 in 2007. The company sourced the principal amount of $4.043 billion from its shareholders in their respective shareholding proportions to partly fund the construction of Trains 1-6.

Community Contractors To Be Involved In NOGAPS Construction – Wabote

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9th August 2019

The Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, Engr. Simbi Wabote has stated that community participation will boost the completion of Nigerian Oil and Gas Park NOGAPS Emeyal-1.

Wabote made this known at a Stakeholders town hall meeting, held in Yenegoa, when he formally introduced the contractors of the next phase of the NOGAPS project to the community and also inaugurated the Community Interface Committee, NOGAPS CIC.

Noting that Contractors for the next phase are; Megastar Construction and OK Isokariari & Sons, Wabote explained that Megastar Construction Company will construct the Security, Administration Block, including the construction of Hostel/Mini Estate, while OK Isokariari & Sons will construct the entire Capacity Building Centre.

The Executive Secretary said, “The Community Interface Committee (CIC) for the Nigerian Oil and Gas Park in Emeyal-1 said, is a Service to the Community. The Committee comprises of the Community, the contractors and NCDMB.

“The purpose of this committee is to ensure community participation and promote compliance in the community elements of the contract. The CIC stands as the Interface between the Community, the contractor and the board.

Wabote also thanked President Muhammadu Buhari for his approval for the completion of NOGAPS. “I want to sincerely thank President @Mbuhari for giving us the necessary approvals to get this Nigerian Oil and Gas Park project to completion.

We are determined now more than ever to see that we can complete this wonderful project by the 4th quarter of 2020.”

Tanzania Invites Investors in Natural Gas

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9th August 2019

…signs 5-yr contract with Knauf Gypsum

Tanzania government has signed a five-year agreement with Knauf Gypsum Factory to supply gas to its gypsum plant currently under construction at Kisemvule area in Nkuranga District Region. The country has also invited entrepreneurs, technology providers, partners and other investors interested in natural gas.

At the signing ceremony, the Petroleum Development Corporation (TPDC), Managing Director, Dr James Mataragio, said the implementation of the agreement is however scheduled to start at the end of next year when the factor will be ready, Daily News reported yesterday

Dr James Mataragio, said they are expecting to collect 620m/-per year at the initial stage and may rise to 4.4bn/-annually as the gas usage increases. He further said the gas demand profile will grow gradually each year from 0.11 million standard cubic feet (mmscfd) in next year to 0.78 mmscfd in a year 2028.

According to him, the gas connection work to the Knauf was at 95% while testing and commissioning was expected to be done by the end of this month. “As per contract, the customer will start using the gas by 2020 as currently, the plant is under construction.

TPDC intends to extend the natural gas connection to other regions soon to reduce the cost of energy consumption,” the TPDC boss stated.

Kano DisCo Suspended Again By TCN For Non-remission

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9th August 2019

For the second time this year, the Kano Electricity Distribution Company (KEDCO) has been suspended by the Transmission Company of Nigeria (TCN) for the reason of not paying the May 2019 energy invoice in full. By the order, KEDC is off the electricity market.

In a publication on Wednesday, Engr. Edmund Amaobi Eje, Head of the Market Operator (MO), said the default attracted the suspension, which is with immediate effect in line with the market conditions/market participation agreements. The MO is a section of the TCN mandated to monitor compliance with the Discos

In the past two months, the Ikeja, Eko, Enugu and Port Harcourt Discos had been suspended for similar defaults. The Kano DisCo was earlier suspended in late July through an order, TCN/ISO/MO/2019/005, for not posting security deposit to pay for ancillary services involved in the wheeling of bulk electricity to its networks for onward supply to customers.

KEDCO’s franchise area covers Kano, Katsina and Jigawa states. Bulk power is also transmitted to Niger Republic through the franchise area on behalf of the Federal Government of Nigeria. On the current suspension, the MO, which is a section of the Transmission Company of Nigeria (TCN), said, “KEDCO refused to pay its May 2019 invoice in full, thereby breaching Section 45.3.1 (d) of the Market Rules.”

It said KEDCO was notified of the default in line with the provisions of the Rule and that it was expected that the DisCo would respond and remedy the default within five days or two business days after it issued the suspension notice to it on July 29, 2019.

“KEDCO did not respond to the ‘Notice of Intent to Issue Suspension Order (NIISO/2019/007)’ dated July 29, 2019 within the five days or two business days stipulated by the Market Rules,” the MO said. The order allows the Transmission Service Provider (TSP), another section of TCN to disconnect some facilities of KEDCO as a punitive measure until the default is remedied and that is running concurrently with the previous suspension.

“The orders will be lifted at the same time the events of default are completely remedied,” Eje said in the notification.

In Commemoration Of Oloibiri Oil Well: Shell Remodels Kolo General Hospital

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8th August 2019

General Hospital in commemoration of the discovery of oil in commercial quantity at Oloibiri in Bayelsa.

Speaking at the event, Managing Director of SPDC, Mr Osagie Okunbor noted that Oloibiri remains very important in the history of Nigeria and in the story of Nigeria’s oil and gas journey and which also informed the conception of Oloibiri Health Programme (OHP).

Okunbor said, “It was in Oloibiri that Shell made the nation’s first commercial quantity discovery of crude oil 1958. That discovery is what has positioned Nigeria as a key player providing energy to the world, wealth to the country and abundant opportunities to the Nigerian people.

“The relationship between the SPDC and Bayelsa state since that discovery has grown with the expected footprints of our operations and social investments spread across the state. Amidst this growth, Oloibiri remains the reference point for Nigeria’s oil and gas journey.

“It is in this light that the Shell group as part of marking Nigeria’s centenary celebrations in 2014, conceived and began the implementation of the OHP, to serve as a reference point in Nigeria for sustainable Primary Health-Care delivery. ” he said.

Speaking further, Okunbor disclosed that the first phase of the OHP being inaugurated by his company consists of the remodelled Kolo General Hospital, equipped with a water treatment plant, Medical Laboratory equipment at the College of Health Technology at Otuogidi and the Dental Chair at the demonstration clinic at Otuogidi.

In his remarks, the Bayelsa State Governor Seriake Dickson commended SPDC for its intervention, stating that it was complimentary to his administration’s efforts in the health sector.

Dickson who was represented by his Deputy, Rear Admiral John Jonah, (Rtd) applauded SPDC for the gesture and urged other oil firms operating in the state to emulate Shell.

“Let me appreciate SPDC and its partners for also prioritising healthcare in the state by initiating the Oloibiri Health Programme.

“This is a laudable development as it will go a long way in complementing the various steps and policies we have introduced to meet health needs of our citizens in Ogbia local government area,” Dickson said.

Kenechukwu Obiajuru, Yenagoa

NPDC Seeks Police, DSS Partnership On Oil Assets Protection

By

Peace Obi

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8th August 2019

Birth of A New Order: NNPC’s Gas Handling Facility Sells Gas in Naira

The Nigerian Petroleum Development Company (NPDC) – the Upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) – has sought the collaboration of the Nigerian Police Force (NPF) and the Department of State Services (DSS) towards securing the company’s oil and gas assets across the Niger Delta.

According to the Managing Director of the NPDC, Mr Mansur Sambo, the synergy between the security agencies in securing NPDC’s oil and gas assets has become necessary to enable the company explore and produce more hydrocarbons towards more revenue generation for the country.

Sambo, who was on his first official visit to the offices of the Assistant Inspector General of Police, Zone 5 and the Edo State Director, State Security Service in their various offices at Benin City, recently, said for an organization like the NPDC, nothing beats a safer and secure environment.

He said, “Our mandate in NPDC is to increase the company’s oil and gas production volume in order to generate more revenue for the country. This objective will only be achieved in a safe and secure environment,” Sambo observed.

He described security as a major global challenge for the oil and gas industry, adding that NPDC was committed to building a safer workplace, not just for NPDC staff and installations alone but also for all our stakeholders.

“I call on you to explore more sustainable ways of ensuring the safety and security of NPDC staff and installations at all times” Sambo noted.

Speaking further, NPDC MD explained that NPDC could not succeed in isolation, adding that the company shares the challenges by building strong partnerships to further improve on its safety culture going forward.

Enumerating the numerous security challenges facing NPDC before the two security agencies, Sambo particularly called for constant surveillance on NPDC assets in Edo, Delta and Bayelsa States.

According to him, he has, since coming on board a few months ago, made security a top priority agenda for the company, which is adjudged the largest indigenous Oil Company.

Sambo also assured that the indigenous oil company as a socially responsible company would continue to discharge its duties to its host communities by providing infrastructures that would attract development within its areas of operation.

In their separate responses, the Assistant Inspector General of Police Zone 5, Mr Dibal Yakadi and the Director of the Department of Security Services (DSS) Edo State Command, Barrister Brown Ekwoaba assured the new NPDC Management of their readiness to safeguard NPDC staff and installations and thus make the company more profitable for the benefit of Nigeria.

FG Invites Military In Chad Basin, Gongola And Benue Trough Oil Search

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8th August 2019

…Chief of Defence Staff says ‘Operation Wase’ is on stand by

Nigeria government has opted to formally use the services of the armed forces in the search for oil in the Chad Basin, Gongola and Benue Trough. The step is aimed at protecting the civilian search made up of local and international oil and gas exploration experts, as well as high-tech equipment.

Oil search in the Chad Basin was suspended after a team of Nigeria National Petroleum Corporation (NNPC) Frontier Exploration Services and their consultants from the University of Maiduguri were attacked and some of them abducted on July 25, 2017. It was reported that at least about 27 people died during the attack after rescue efforts by soldiers and members of the Civilian Joint Task Force (CJTF). The victims included soldiers, CJTF members, and university staff.

The then Minister of State for Petroleum Resources, Ibe Kachikwu, who described the incident as a major setback to the quest for oil in northern Nigeria, promised that resumption of oil search in the Lake Chad Basin can only continue when the ministry gets a security clearance.

The Group Managing Director of the Corporation, Mallam Mele Kyari, said that NNPC has been assured of adequate military support when oil search in the listed Basins resumes. He made the submission when he led top management staff of the NNPC on a visit to the Chief of Defence Staff, General Gabriel Olonisakin, at his office in Abuja last Tuesday.

“Am visiting the Chief of Defence Staff as my first port of call following my appointment to seek the support of the Armed Forces to help the NNPC in re-entering the Chad Basin, Gongola and Benue Trough to enable us carry out our mandate for national development. Your support in terms of providing full security for staff and equipment is critical to us.”

He added that the corporation equally required the military to intensify efforts in the protection of NNPC’s pipelines and Right of Way (RoW) across the nook and cranny of Nigeria.

Mallam Kyari stated that the NNPC was seriously challenged due to the nefarious activities of pipeline vandals, petroleum products thieves and other economic saboteurs that breach the operations of the corporation in various parts of the country.

The GMD recounted the significance of NNPC’s contributions to the national economy, saying corporation’s synergy with the Military was critical to the well being of the nation’s economic lifeline.

Responding, the CDS, General Olonisakin, described the NNPC as a strategic corporation that would be given full military support to enable her to deliver on her mandate to the Nigerian people. “It is imperative for the Armed Forces and the NNPC to collaborate and synergize for the benefit of the country going by their various strategic roles to the nation.

“The Armed Forces operations, code-named: Operation Wase and Operations Delta Safe, along with other operations, were geared towards protecting pipelines and various oil and gas facilities,” General Olanisakin averred.

He said the military and the NNPC had been working together and the visit of the GMD would further bolster the various operations to secure the oil and gas installations, adding that the Military had devised several strategies to stem the tide of pipeline breaches in the country.

World’s Biggest Hydroelectric Project Inches Closer To Reality In Congo

By

Peace Obi

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8th August 2019

A dream of building the world’s biggest hydroelectric project in the heart of Africa may be inching closer to reality.

For decades, plans have been made and discarded to construct a series of hydroelectric power stations on Africa’s second-longest river that would generate almost twice the power of the Three Gorges Dam in China, the world’s largest.

If completed, a Grand Inga Dam could go a long way to addressing one of the most debilitating obstacles to development across Africa from Nigeria to South Africa: electricity shortages.

Late last year there was a sudden burst of activity around Grand Inga. Then-President Joseph Kabila signed an accord in October with two groups of Chinese and Spanish investors, who committed to funding technical studies before building and running an 11,050-megawatt facility called Inga III at a cost of $14 billion.

The consortia, which include AEE Power Holdings SL and China Three Gorges Corp., also pledged to attract lenders and find buyers of the electricity elsewhere in Africa.

That could be news of revolutionary import to Congo’s 80 million people, who make do with about 1,500 megawatts, about as much as typically needed for a city of 1 million in industrialized nations. Grand Inga could single-handedly generate more than 40,000 megawatts upon completion.

Much will depend on China’s attitude. While President Xi Jinping’s government supports the project, he’s increasingly working to ensure that his Belt and Road Initiative doesn’t leave poorer nations with unsustainable debt. The uncertainty surrounding China’s approach has caused dislocations in projects across Africa.

In Kenya, construction of a flagship railway from the coast to Uganda was halted after China withheld some $4.9 billion in funding. In Zimbabwe, a giant solar project hit a cash shortfall after China’s Export Import Bank backed out due to the government’s legacy debts.

In Ethiopia though, Chinese contractors were hired earlier this year to accelerate work on the long-delayed Grand Ethiopian Renaissance Dam, which had been mired for years in design and management conflicts.

Inga III “has to be a project that guarantees repayment of loans because the financial budget of the government is very limited,” said Wang Tongquing, China’s ambassador to Congo. “According to the information I have, the plans of this project are not yet very mature, above all the plan for the consumption of the electricity after construction.”

Not all Congolese are however convinced that the dam will solve the nation’s desperate lack of energy. In its current form, most of the power it will generate is meant for other countries.

More than 30 civil-society leaders published an open letter to the president in March, saying Inga III risks loading Congo with debt and won’t provide help for most of its people.

They urged the government to focus on connecting rural areas to the grid. And, while parliament approved a bill five years ago to liberalize the energy sector, Congo still lacks an independent energy regulator.

Source: Bloomberg

Estimated Billing Stays In EEDC Network

By

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8th August 2019

….as Disco says it needs N90bn to meter all

Hopes of customers in the Enugu electricity district to get prepaid meters as promised by the Enugu Electricity Distribution Company (EEDC), has been effectively put at risk following the company’s revelation that it needs a whopping N90 billion to provide meters to its customers. After the June 30, 2019 deadline, the company said it could only meter 30,000 customers.

The company said unless it gets the sum, the customers on its network will continue to be billed under the resentful estimated billing system. The Enugu Disco covers the South East of Nigeria states of Enugu, Anambra, Imo, Ebonyi and Abia

Addressing participants at a stakeholders’ dialogue on corruption organised by ActionAid Nigeria in Enugu recently, EEDC’s head of communications, Mr Chukwuemeka Ezeh, said the company did not invent estimated billing but inherited from the system from their forerunners, the erstwhile PHCN, and would be forced to continue with the system if it fails to raise the money.

“Estimated bills, which people often refer to as ‘Crazy Bills,’ did not originate from EEDC. It is also one of the things that we inherited. Before now, customers were billed on estimation. What it means is that the PHCN of old could not also meter all customers. We are trying our best but the bill is enormous,” Ezeh said.

He argued that it was the responsibility of the then PHCN to capture buildings, properties for metering but this was neglected. “We took over November 2013 and metering our customer was part of the responsibilities we were saddled with. We took it up. We might not have metered 100% but I can tell you that 300,000 customers were brought to our prepaid meters platform. It’s a very big and capital intensive responsibility.

“By estimation, we need close to N90 billion to meter all our customers. These are the customers we already have their data.”

Last April, the Nigerian Electricity Regulatory Commission (NERC) issued permits to Meter Asset Providers (MAPs). Section 4(3) of the MAP Regulation 2018 requires all electricity distribution licensees to engage MAPs that would assist, as investors, in closing the metering gap and thus eliminating the practice of estimated billing in Nigeria.

NERC said it is an obligation for all Discos to ensure that all their consumers are metered under Meter Asset Provider (MAP) Regulations 2018. This is consistent with their respective Licensing Terms & Conditions and Section 4 (1) of the said Regulations that provides that, inter alia, “Distribution licensee is responsible for the achievement of metering targets as specified by the Commission from time to time.”

Energy giant, PJV Secures FPSO Contracts For Nigeria, Others

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8th August 2019