HIGH PRICES START TO WEIGH ON ECONOMIES, DEMAND

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5th October 2018

Rising oil prices and global trade worries are pressuring emerging economies, International Energy Agency Executive Director Fatih Birol told Reuters.

India faces an “economic crisis” due to its huge oil imports, two local TV channels cited Transport Minister Nitin Gadkari as saying. India also has been hurt by a slide in the rupee against the dollar.

A strong dollar makes dollar-denominated oil more expensive for buyers using other currencies.

“We have argued recently that reaching the $100 market would be a tall order,” PVM Oil Associates strategist Tamas Varga said.

“About the end of November, we will have a good idea as how many barrels will be lost due to the launch of the second round of the Iranian sanctions. By that time all the bullish news will be in the market.”

Reuters

Oil falls from four-year highs; Wall Street weighs

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5th October 2018

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Oil prices fell on Thursday as the prospect of increased crude production from Saudi Arabia and Russia prompted profit-taking the day after futures hit four-year highs on a boost from imminent U.S. sanctions on OPEC’s No. 3 producer Iran.

Brent crude futures fell $1.71, or 1.98 percent, to settle at $84.58 a barrel. On Wednesday, Brent rose to a late 2014 high of $86.74.

U.S. West Texas Intermediate (WTI) crude futures fell $2.08 to settle at $74.33 a barrel, a 2.72 percent loss.

Market participants took profits after Brent on Wednesday climbed to the most technically overbought level since February 2012. WTI was the most overbought since January. The relative strength index (RSI) for both Brent and U.S. crude rose this week to above 70, a level often regarded as signaling a market that has risen too far.

On Thursday, both contracts’ RSI retreated to below 70.

Weighing on oil prices, U.S. stock market indexes broadly fell, with the benchmark S&P 500 on pace for its biggest one-day drop since late June. Crude futures at times track with equity markets.

Also pressuring oil prices, crude inventories at the U.S. hub of Cushing, Oklahoma, rose about 1.7 million barrels from Sept. 28 to Tuesday, traders said, citing a report from market intelligence firm Genscape.

“Today’s pullback appeared heavily influenced by the sharp decline in the equities and looked like a deserved correction given the magnitude of the recent upside price acceleration,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

Oil prices have risen as the market braces for sanctions on Iran that kick in on Nov. 4. Saudi Energy Minister Khalid al-Falih said on Thursday the Organization of the Petroleum Exporting Countries was able to raise output by 1.3 million barrel per day, but offered no signal that the producer group would do so.

The kingdom plans to invest $20 billion to maintain and possibly expand its spare oil production capacity, and currently has a maximum sustainable capacity of 12 million bpd.

Reuters reported on Wednesday that Russia and Saudi Arabia struck a private deal in September to raise output.

Ibe Kachikwu: Refineries To Be Fully Functional Before 2019 Ending

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5th October 2018

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Waltersmith Launches 5,000-bpd Capacity Modular Refinery in September

The Minister of State for Petroleum, Dr Ibe kachikwu, has said that it would be sad if the nation’s refineries are not functional by the end of 2019.

According to him, the present administration is committed to ensuring that the importation of petroleum products is curtailed.

Kachukwu stated this on Thursday in Ibigwe-Ohaji in Ohaji\Egbema council area of Imo during the ground-breaking for construction of the 5,000BPD Modular Refinery, by Walter Smith petro-chemical limited.

The project is being partnered by the Nigerian Content Development and Monitoring Board (NCDMB)

He said that the Buhari administration was committed to ensuring that the nation’s refineries became functional by the end of 2019.

“It would be sad if by the end of 2019 we are still importing fuel from abroad.

“So, we are committed in repairing the refineries; by that we can at least process about 500,000 barrels of crude per day.

The policy of this administration is `go back to refining about 20 per cent of our crude which will move to 50 per cent in the next five years’.

The Minister who commended management of Walter Smith for partnering the NCDMB to realize the project said that he was hopeful that in 18 months the modular refinery would be inaugurated.

Also, the Executive Secretary of the NCDMB, Mr. Simbi Wabote, said the Board invested US $10 million to catalyze the development of the Modular refinery and took 30 per cent equity in the project.

He added that the NCDMB would divest when the modular refinery was fully developed and operational.

Wabote pointed out that NCDMB was promoting the Walter Smith Modular refinery as part of its capacity development mandate.

He said that the investment was also in line with the Nigeria Content 10- year strategic plan.

The Chairman of Walter Smith, Mr. Abdulrazaq Isa, said that the Walter Smith 5,000 BPD Modular refinery was conceptualized in 2011 to mitigate the frequent outage of the third-party export trans-Niger pipeline.

He added that it was to optimize the full value of the country’s produced crude through in-country products for the domestic market.

“When operational in 18 months time we will produce per day: Naphtha – 24,643 liters, Kerosene – 54,691 liters, Diesel – 300,168 liters, HPFO – 409,710 liters.

“The refined products will be sold and evacuated from the refinery via dedicated trucks from bay five truck rack where products are loaded into the tankers.

NNPC, agencies set to improve oil sector output

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4th October 2018

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Oge Obi.

As part of their commitment to boost the country’s oil and gas sector, some strategic government agencies under the Federal Ministry of Petroleum Resources have indicated their willingness to improve the digitalisation of their systems.

Speaking at the Huawei Nigeria Digital Oil and Gas Industry Summit in Abuja, with a theme, “Leading new Information and Communication Technology, higher safety and efficiency for oil and gas industry” the Group Executive Director, Downstream, NNPC, Ikem Obih, noted that the oil and gas sector had faced tough challenges since 2015.

Calling for an urgent technological transformation in the sector, Obih said that adequate digitalisation of the oil and gas sector will lead to significant improvement in monitoring, predictive maintenance and operation optimisation.

He said, “The nation is currently at a turning point where the required urgency for repositioning the oil and gas sector is more critical than ever. Today, technology is playing a key role in the growth of the global oil and gas industry.

“The United States oil production has surged to an all-time high of 10 million barrels per day. This achievement was due to technological advancements and digitalisation. The ongoing reforms in the NNPC represent a new dawn. They will provide huge investment opportunities and infrastructure development across the oil and gas value chain.”

Obih noted that NNPC was committed to digitalisation and improved technology that would enable the corporation increase its output.

“It will also enable us to increase oil production from our new matured and marginal fields, expand our frontiers and improve our local refinery capacities. It will assist our target to increase our crude oil reserves by one billion barrels year-on-year from the current 37 billion barrels to 40 billion barrels by 2020.

“So, the integration of technology into the oil and gas sector will lead to significant improvements in planning, monitoring activities such as predictive maintenance and operation optimisation. As more oil and gas industries integrate, this will enable the field workers to optimise its monitoring and production.”

Also speaking, the Managing Director, Huawei Nigeria, Tank Liteng, said with the challenges the oil and gas industry is facing, there is need for a more secure, efficient and cost-effective way of production in order to reduce operational costs.

“And so Huawei believes that the ICT and digital technologies are the answer. In Nigeria, Huawei has provided services to the NNPC; the PEF; the Petroleum Technology Development Fund; just to mention a few. Together, we will share our insights and practices on digital oil and gas transformation,” he said.

FG increases penalty on gas flaring

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3rd October 2018

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Oge Obi,

The Federal Government has increased the penalty on gas flaring from N10 per thousand standard cubic feet of gas to $2 – equivalent of N612.8 at the current official exchange rate of N306.4 to one dollar per thousand standard cubic feet of gas.

The new rate was contained in the gazette “Flare Gas (Prevention of Waste and Pollution) Regulations 2018”, circulated yesterday in Abuja by the Ministry of Petroleum Resources.

The report was made available by the Program Manager, Nigerian Gas Flare Commercialization Programme (NGFCP), Office of the Minister of State, Petroleum Resources, Mr. Justice Derefaka. It also disclosed that the Federal Government has also stipulated a fine of N50, 000 or a six months jail term or both, for anyone who provides inaccurate flare data.

It stated that the new regulation stipulates that for any company producing 10,000 barrels of oil or more, the gas flare penalty has now been increased to $2 per thousand standard cubic feet of gas and, for a company producing less than 10,000 barrels of oil per day, the rate had been increased to $0.50 per thousand standard cubic feet of gas, whether it is routine or non-routine flaring.

According to the new regulation, a producer would not be liable in a situation “where the flaring was caused by an act of war, community disturbance, insurrection, storm, flood, earthquake or other natural phenomenon which is beyond the reasonable control of the producer.”

“The current meagre flare payment (penalty) of N10 per thousand standard cubic feet is increased, in the case of any one producing 10,000 barrels of oil or more, to $2 per thousand standard cubic feet of gas; and in the case of anyone producing less than 10,000 barrels of oil per day, to $0.50 per thousand standard cubic square feet of gas.

“There are mandatory additional payments by the producer of $2.50 for failure to produce accurate flare data; failure to provide access to flares or flare sites; failure to sign a connection agreement; in the event of continuous or egregious breaches, there is a possibility of suspension of operations, or a termination of the producer’s license”, it stated.

Also, the new regulation, however, stated that the producer would not be liable in a situation “where the flaring was caused by an act of war, community disturbance, insurrection, storm, flood, earthquake or other natural phenomenon, which is beyond the reasonable control of the producer.”

Also, that in a situation where a producer failed to provide flare gas data to a request made under the regulation, or fail to supply accurate or complete flare gas data, such producer would be forced to pay a fine of$2.50per day for every 1,000 SCF of gas flared or vented within the oil field or marginal field.

It further stated that a penalty of $2.50per day also applies to a situation whereby the producer fails to install metering equipment within the time required to do so by the Department of Petroleum Resources, or fail to agree to enter into a concession agreement with a permit holder.

“In the event of the continued failure of the producer to comply with any of the requirements of this regulation, the minister may direct the producer to suspend the operations or revoke any Oil Mining Lease or marginal field awarded to the producer,” it added.

The new regulation requires gas producers to maintain daily log of flaring and venting of natural gas produced in association with crude oil and submit same to the DPR within 21 days following the end of each month.

According to the document, all gas flare logs must be based on data retrieved from metering equipment installed at the various producers’ facilities, while the logs must be kept by the producers in safe custody for no less than 36 months.

2018 to 2040: OPEC projects 14.5mbd oil demand increase

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OrientEnergyReview

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2nd October 2018

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Oge Obi

The Secretary-General, Organization of the Petroleum Exporting Countries, OPEC Mohammad Barkindo has said that oil remains relevant for over a long period of time; Forecasting an increase in oil demand by around 14.5 million barrels a day between now and 2040 to approach close to 112 million barrels a day.

Delivering his keynote speech at the Committee of the World Energy Council in Madrid, from the perspective of oil and gas, Barkindo said that the fact remains that oil and gas will remain central to supplying the growing global population with the critical energy it needs in the decades ahead. This invariably relegates every other forecast that oil and gas will soon go out of relevance.

“Of course, you may say to me, “well you are the OPEC Secretary General.” But I am also a realist. I do not see any outlook predicting that other energies will come close to overtaking oil and gas in the decades ahead.

“In terms of oil, specifically, I think the key message from our Outlook is that there is no doubt that oil will remain a fuel of choice for the foreseeable future”.

Barkindo said OPEC sees oil demand increasing by around 14.5 million barrels a day between now and 2040, to reach close to 112 million barrels a day.

He noted that for the second consecutive year, OPEC has raised its oil demand numbers for 2040.

According to him, in terms of sectors, transportation has a major incremental demand, stressing that the expectation for an increase on the sector is more than 8 mb/d, mostly in the road transportation sector, which sees a growth of 4.1 million barrels a day.

Speaking further, Barkindo noted that the growth in demand is driven by the expected increase n the total vehicle fleet for passenger and commercial vehicles. He it projected to increase by over 1.1 billion vehicles to hit close to 2.4 billion by 2040.

The OPEC Secretary General hinted that OPEC said it is important to underscore that the majority of the growth continues to be for conventional vehicles.

Stating that the OPEC sees the majority of the growth to be for conventional vehicles, Barkindo noted that the Organisation does not see the long-term share of electric vehicles in the total fleet expanding and reaching a level of around 13% in 2040, supported by falling battery costs and policy support; Adding that the figure for all alternative fuel vehicles is 18%.

Stating that figure is certainly an impressive expansion for electric vehicles, Barkindo noted that the levels were well below 1% in 2017 and it does need to be placed in the context that conventional vehicles, including hybrids, are still expected to make up 82% of the vehicle fleet by 2040.

Taking cognisance of various sensitivities that could shift these numbers, noted that conventional vehicles will remain the mainstay of the road transportation sector, adding that there are clearly possibilities to further improve the efficiencies of these engines and the fuels they use.

“It is also important to note the expected oil demand growth in the petrochemicals sector, which for the first World Oil Outlook sees more growth than in the road transportation sector over the forecast period to 2040”.

“Global demand in this sector is estimated to expand by 4.5 million barrels a day by 2040. The largest increase is projected for developing countries, most notably Asian countries and OPEC Member Countries, driven by demand for petrochemical products and the availability of feedstock in these regions”.

NNPC records trade surplus in May

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OrientEnergyReview

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2nd October 2018

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Oge Obi.

The Nigerian National Petroleum Corporation (NNPC) has disclosed that it recorded a trade surplus of N18.12 billion in the month of May, a higher earning than the N17.16 billion in April 2018.

The Corporation made the disclosure in a statement signed by its Spokesman, Ndu Ughamadu in Abuja on Monday.

He said the details of the transaction were published in the corporation’s May 2018 edition of the Monthly Financial and Operations Reports.

He noted that the report indicated that the additional monthly trade surplus of N0.96bn was mainly due to increased performance of some of the corporation’s subsidiaries.

He named the subsidiaries to include the Nigerian Petroleum Development Company (NPDC), Petroleum Products Marketing Company (PPMC), Nigerian Pipelines and Storage Company (NPSC) and Marine Logistics.

“Within the period, the NNPC Group performance was mainly impacted by NPDC’s performance which recorded a favorable variance of N18 billion due to increase in revenue with parallel decrease in expenses.

“This resulted in N20.93billion net increase in the upstream gas and power surplus,’’ he said

He added that the report indicated that the increase in performance was bolstered by relatively high production volumes of 1.97 million barrels per day in April, which was sold in May, thereby reducing cost per unit.

Under the national crude oil and natural gas production, lifting and utilisation segment, Ughamdu said the report noted that 58.96 million barrels of crude oil and condensate were produced in the month of April.

This, he said, represented an average daily production of 1.97 million barrels.

A breakdown of the production figure indicated that Joint Ventures (JV) and Production Sharing Contracts (PSC) contributed about 32.82 per cent and 41.77 per cent, while Alternative Financing (AF), NPDC and Independent producers accounted for 14.68 per cent, 7.65 per cent and 3.08 per cent.

Ughamdu noted that the report also indicated that the NPDC cumulative production from all fields within the period amounted to 47,759,229 barrels of crude oil which translated to an average daily production of 120, 909 barrels per day.

On national gas production, the report highlighted that, 231.59 Billion Cubic feet (BCF) of natural gas was produced in the months of May, translating to an average daily production of 7,785.01 Million Standard Cubic Feet per day (MMSCF/D).

“In the downstream sub-sector, NNPC continued to ensure increased petrol supply and effective distribution across the country.

“In May, 1.19 billion litres of petrol was supplied by NNPC, translating to 40.59mn litres/day to sustain seamless distribution of petroleum products which resulted to zero fuel queues across the nation.

“In the month under review, the corporation continued to monitor petrol evacuation figures from depots across the nation, and engaged, where necessary, the Nigeria Customs Service (NCS) and other stakeholders through existing Joint Monitoring Team,” he added.

NUPENG, PENGASSAN warn Chevron against disengaging workers

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2nd October 2018

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The National Union of Petroleum and Natural Gas Workers, NUPENG, and the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, have warned the management of Chevron Nigeria Limited, CNL, against the disengagement of its members under her employment after the end of their contract.

The warning is coming amidst an industrial face-off between oil workers’ unions in the country and CNL over workers casualisation in the company as well as CNL’s disclosure that contracts with all its manpower services providers would expire by October 2018.

Lamenting on the manner Chevron’s contractual staff are structured, the oil workers called for a review of the issue of casualisation of Nigerian workers.

PENGASSAN Chairman, Port Harcourt Zone, Mr. Azubuike Azubuike had told Sweetcrude that the bone of contention of the was Chevron’s penchant for hiring and firing contractors and contract workers at will, adding that the labour unions have efforts to dialogue with the company on the matter have not yielded the desired result.

Azubuike disclosed that the two unions will be meeting with the Minister of Labour and Employment, Dr. Chris Ngige, and the management of Chevron, warning that should the company fail to meet the demands of the unions, they will withdraw their services indefinitely. A situation which will affect the upstream, midstream and downstream segments of the oil and gas industry.

The PENGASSAN Chairman explained that Chevron gives contract jobs to contractors, but, withdraws such at will and gives to another contractor. “So, people will be on contract jobs for years without improvement.

“Now, instead of staffing these contract workers, they will close the contractual agreement and go ahead to give the contract to another contractor. The new contractor will now have a new set of workers to hire.

“So we said, even if you don’t want to continue with contractor A, you’ll have to roll the workers into the new contractor and they said no, the new contractor should hire whoever he wishes,” Azubuike explained.

NLC suspends warning strike

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1st October 2018

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The Nigeria Labour Congress (NLC) has suspended its seven-day warning strike following promises by the Federal Government to reconvene the tripartite committee on national minimum wage on October 4, 2018.

The labour movement said the suspension took effect from Sunday, and further directed its affiliate unions and state councils to maintain “a high level of mobilisation and readiness until the struggle for a reasonable minimum wage is achieved.”

Announcing the decision in Abuja on Sunday, the NLC President, Ayuba Wabba, stated that the labour action was suspended to enable the tripartite committee to hold its crucial meeting and conclude its work.

The workers are demanding a new minimum wage of about N50,000 instead of the current national minimum wage of N18, 000.

Wabba, who was flanked by other labour leaders, said the unions had received a formal invitation to a meeting of the tripartite committee scheduled for October 4 and 5.

He stated that the two-day meeting would be the final session of the committee after which a final report would be submitted to President Muhammadu Buhari.

The NLC President said, “We invite you here today (Sunday) to inform you that we have received a firm and formal invitation to a reconvened meeting of the tripartite committee scheduled for the 4th and 5th of October, 2018.

“We demand that this shall be the final session of the committee and that a final report will be submitted to Mr President immediately.”

He added, “In order to avail the committee the necessary conducive environment to hold this crucial meeting and conclude its work, organised labour has, after obtaining the mandate of their necessary organs, decided to suspend the strike action with effect from Sunday, September 30, 2018.”

The labour leaders had held a meeting with the Minister of Labour and Employment, Senator Chris Ngige, last Wednesday where they were informed that the tripartite committee on minimum wage would reconvene on October 4.

But the labour leaders were unimpressed as they refused to suspend the strike which the NLC, Trade Union of Nigeria and the United Labour Congress had ordered shortly before the parley with the minister in Abuja.

The union leaders subsequently held a meeting with the Chief of Staff to the President, Abba Kyari, at the Presidential Villa last Thursday, where they were prevailed upon to call off the strike.

The Judiciary Staff Union of Nigeria has directed its members to resume work on Tuesday.

Shortly after NLC suspended the strike on Sunday, President of JUSUN, Mr Marwan Adamu, said, “The Judiciary Staff Union of Nigeria has asked all its members across Nigeria to resume work on Tuesday, October 2nd, 2018 following the suspension of the strike by the organised labour.”

Nigeria will be great again, FG assures

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1st October 2018

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The Federal Government on Sunday assured that Nigeria would be great again, adding that the country was set for a season of prosperity and progress.

The Vice President Yemi Osinbajo stated this at the 58th Independence Day Interdenominational Church Service at National Christian Centre, Abuja.

In what he described as prophetic declaration over Nigeria, he said: “This anniversary is an opportunity to bless our nation. This 58th year of Nigeria’s independence will mark a great new beginning of peace, prosperity, abundance.

“Nigeria, you will be exalted, you will not fall, you will excel, you will rise beyond the imagination of the world, you will be a pride to Africa and the world.

“This is the season of your exultation, Nigeria, the season of your renewal, season of your restoration.

“All that we have lost will be restored; where we have failed, we will succeed. We declared that deaths and destruction, every device of Satan have failed over Nigeria.

Dangote Refinery receives its first ship, BBC Naples

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25th September 2018

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The Dangote Oil Refinery jetty located at the Lekki Free Trade Zone, Lagos has received its first ever ship call. The ship named BBC Naples berthed at the new jetty on Sunday evening to deliver essential equipment for ongoing construction work at the Dangote Refinery.

The 132 metres long, 9,755 tonnes general cargo ship is operated by BB Chartering, while Hull Blyth Nigeria Limited is the ship agent.

The ship, which arrived the Dangote Refinery jetty at 18.18 hours on Sunday after a 40-day voyage, loaded its cargoes for the Dangote Oil Refinery at Jebel Ali, United Arab Emirates and Richards Bay, South Africa.

Commenting on the historic ship call, the Managing Director of BBC Chartering Mideast Ltd, Mr Denis Bandura, said, “Today our vessel ‘BBC Naples’ arrived at the Dangote Lekki Jetty. It is the maiden call at the newly constructed jetty, and BBC Chartering is very proud to have partnered with Dangote Group to make this milestone a reality.

“The vessel is delivering essential equipment for the construction of Dangote Oil Refinery, and BBC Chartering remains committed to provide its full capacity at a strategic level to ensure the successful delivery of this very important project.”

The Managing Director of Hull Blyth, Mr. Christian Holm also expressed delight at the berthing of the ship.

He said, “Hull Blyth is honored to oversee the first vessel – ‘BBC Naples’ – at the Dangote Lekki Jetty. The unrelenting effort of Dangote Group, Nigerian Ports Authority, and BBC Chartering has made the opening of the jetty a reality, and it starts a new important phase in the construction of the Dangote Oil Refinery.

“Hull Blyth has a long history of logistic support to Dangote Group, and the oil refinery project has utmost priority as it will provide decisive benefit to Nigeria for many years to come.”

With a projected capacity of 650,000 barrels per day, the Dangote Refinery is expected to be the world’s biggest single-train facility upon completion in 2020.

The multi-billion dollars refinery will produce various petroleum products including Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene.

The refinery project, which is expected to end Nigeria’s dependence on imported petroleum products, is projected to generate an estimated 9,500 direct and 25,000 indirect jobs.

The President of Dangote Group, Alhaji Aliko Dangote, recently said he had mobilized more than $4.5bn in debt financing for the project.

Culled from Ships and Ports

Condemnation continues to trail appointments in Customs

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25th September 2018

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Oge Obi.

For the umpteenth time, a voice of condemnation has risen against the alleged lopesided appointments in Nigerian Customs Service, observed by stakeholders to favour officers from the northern extraction of the country.

A retired Comptroller of Customs, Ralph Nwadike, in an interviews with Ships and Ports added his voice to the condemnation trailing the Comptroller General of Customs, Hameed Ali’s appointment of mostly officers of northern extraction to head the major Customs commands across the country.

A recent deployment by the Comptroller General of Customs which elicited complaints from different quarters saw officers of northern origin deployed to head major Customs commands.

The deployment approved by Ali last month saw Abubakar Bashir moved from Port Harcourt 11 Onne to Apapa; Musa Jibrin from Apapa to Human Resources Development department Abuja; Sa’idu Galadima from Information Communication Technology (ICT) to Port-Harcourt Area II (Onne) while Mohammed Aliyu of Seme Command swapped positions with Mohammed Garba of Federal Operations Unit Zone ‘A’, Lagos.

Reacting to the deployment, Nwadike described the development as an attempt to politicize Customs “for a hidden agenda”.

According to him, it is regrettable that a retired army colonel whose rank is equivalent to an Assistant Controller of Customs, appointed to head the NCS has failed to represent the agency well.

“This is just politics. In the first place, why is the man (Ali) the Comptroller-General of Customs? Is there any experience he got from the Army that made him better than every other customs man? If they are looking for experience, they should look for retired Customs officers that will put the Service in order. That man is there doing nothing and they have politicized the civil service,” he said.

Speaking further, Nwadike called for the immediate resignation of Ali for leading the Buhari Support Organization.

“When the Comptroller-General is Chairman of the Buhari Support Organization, has he not politicized the whole system? So I think all we are running now is political game. So he should resign. There are so many things he has done that require his resigning. If he cannot wear Customs uniform, then he should leave. Is he ashamed of an organization he is heading? What is more? The man is a retired colonel, which is equivalent to an Assistant Controller. So why should he be there? He should have resigned,” he said.

On his part, President, International Freight Forwarders Association (IFFA) Sam Onyemelukwe stated that appointment of officers under Ali has been lopsided in contravention of the federal character principle.

“The lopsided appointment in the customs has been like that for a long time. From statistics, the number of Controllers from the North West alone is higher than what we have in the South-South and South East together. Check from the rank of Assistant Comptrollers downward. Are we still putting the federal character into consideration in doing all this?

“Most times, they (Customs) will say the appointment is based on merit but when you look inward and check out the turnout of the school certificate result on yearly basis and the type of scores they used in gaining admission into university, put them together and find out which section of the country is educationally backward. Yet if appointment is to be made, they will say it is on merit. Who is deceiving who? Yet we say we are practicing federalism.

“It is very common that you see an officer from a geographical zone being in a particular zone for over two decades. If the person is not in Tin Can, he is in Apapa command. If he is not in FOU, he is in Seme and vice versa.

“Meanwhile, another person can come to a zone and spend only three years before he is redeployed to far north or outside the zone. The earlier we address this, the earlier we move forward as a country.

“If true federalism can be put in place in Nigeria, we can then begin to compete with other Western world,” he added.

Pirates Kidnap Ship’s Crew In Nigeria, Destroys Communications Equipment

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24th September 2018

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Pirates have kidnapped 12 crew members from a Swiss cargo vessel in Nigerian waters.

Massoel Shipping said its vessel, MV Glarus, was carrying wheat from Lagos to Port Harcourt when it was attacked on Saturday.

“The pirate gang boarded the Glarus by means of long ladders and cut the razor wire on deck,” the firm told AFP.

The intruders struck 45 nautical miles from Bonny Island in the Niger Delta, taking 12 of the 19 crew hostage.

A spokesman for Geneva-based Massoel said the pirates had “destroyed much of the vessel’s communications equipment”.

Seven of the crew members are from the Philippines, with a national from each of Slovenia, Ukraine, Romania, Croatia and Bosnia, Reuters reports, quoting Nigeria’s maritime agency.

The Massoel spokesman said the crew members’ families are being closely informed of the situation.

Specialists are en route to ensure the hostages’ “speedy and safe release”, the shipping company said.

Switzerland’s foreign ministry said Massoel had confirmed that none of those kidnapped were from the country itself, Reuters reports.

Kidnapping for ransom is common in Nigeria, with foreigners and high-profile Nigerians frequently targeted.

There has been a slight increase in hostage-takings off the coast of Nigeria, according to a 2017 report by the watchdog Oceans Beyond Piracy.

-BBC

INTELS donates health centre to delta community

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OrientEnergyReview

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24th September 2018

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Oge Obi,

INTELS Nigeria Limited, a leading port operator/oil and gas logistics service company has built and handed over a modern, fully equipped Health Centre to the Aruakpor-Umah Community, in Uvwie Local Government Area, Delta State.

Built in the Warri area of Delta State, the multimillion naira Health Centre according to INTELS, is part of the company’s corporate social responsibility to the Warri community. Adding that it is set up to provide high quality, comprehensive primary and preventive medical care to the community.

The General Manager of INTELS Nigeria Limited, Mr. Silvano Bellinato, who was represented at the handover ceremony by Philip Embledon, commended the community for cooperating with the company in the actualization of the project.

He said, “It is a great honour and a pleasure building this Health Centre. I would like to thank you for the spirit of cooperation that made it possible. I hope we can continue this spirit of cooperation and partnership for a long time to come.”

Also speaking, the Manager, Government and Public Affairs of INTELS, Mr. Rexford Asaikpuka, said the company embarked on the project after carrying out a need analysis of the Aruakpor-Umah community.

He said, “We decided that the best thing to give to this community is a Health Centre as the nearest Health Centre is far away from here. Amenities like this are important in the Niger Delta due to the nature of the environment. We need facilities like this to improve on our health.”

Asaikpuka disclosed that the company adopted has Integrated Partnership Approach (IPA) to its CSR. The approach, according to him, enables the adoption of the active participation of host communities.

He said the approach is hinged on three objectives of empowering host communities through the provision of employment and welfare to the people; planning and executing integrated community development programmes with full community participation; and adopting best practices that guarantee community friendly relationship and peaceful co-existence.

The Vice Chairman of Uvwie Local Government Area, Chief Napoleon Newyear, who represented the Local Government Chairman, Honourable Ramsey Onoyake at the event, commended INTELS for embarking on the Health Centre project. “The construction of this Health Centre is a local government project but as INTELS has decided to assist us as part of their CSR. We are thankful.

“The management of INTELS has enjoyed a peaceful environment in this community; this is a pointer of your success in creating an enabling environment for the advancement of peace and understanding.

“I urge the community leaders and residents to do their very best in maintaining this facility and equipment. This would encourage other stakeholders and the government to do more.

“On behalf of the local government council, I pledge that we shall maintain this facility and the equipment therein to the best of our ability.”

Also speaking at the handover ceremony, the Head of Ekpan community, Chief V.E Otomiewo, urged youths in the area to jealously guard the new Health Centre and ensure that the equipment are not vandalized.

While commending the company for investing in the health care of people in the community, he said, “We must not allow INTELS to regret this gesture”.

The Ovie of Uvwie Kingdom, His Royal Majesty Emmanuel Sideso, who was represented at the event by Chief U. K. Okowe, also commended INTELS for the gesture.

INTELS Nigeria Limited, which has been in the forefront of empowering women, youths and communities in the Niger Delta, has won several awards and commendation, at both national and international levels, for its exemplary corporate social responsibility initiatives.

NNPC urge NUPENG, PENGASSAN to halt planned strike

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OrientEnergyReview

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24th September 2018

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The Group Managing Director (GMD), NNPC, Dr. Maikanti Baru, has urged oil workers to halt their planned strike over a labour dispute involving Chevron Nigeria Limited (CNL) management and the staff.
The unions are National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Baru made the appeal in a statement by NNPC’s Corporate Affairs Manager, Mr. Ndu Ughamadu in Abuja on Sunday.
The GMD, Nigerian National Petroleum Corporation, said he had directed the management to work with other stakeholders to resolve the issues raised by the leadership of the unions. He appealed to the unions not to do anything that would disrupt the industrial harmony that had pervaded the sector. The group managing director expressed fears that the gains of the recent past in the sector, if care was not taken, could be frittered away inadvertently. He however expressed optimism that the current dispute would be settled amicably. The News Agency of Nigeria (NAN) recalls that the unions had recently called on the National Assembly to intervene in the brewing impasse between CNL and its staff in Nigeria The unions further urged the Federal Ministry of Petroleum Resources, the NNPC and the Department of State Services (DSS) to also intervene. The disagreements borders on the company’s disclosure that the contracts with all its manpower services providers would expire by the end of October, 2018. Consequently, NUPENG and PENGASSAN, last week Wednesday, put their members on red alert. Meanwhile, the NNPC has allayed concerns of petroleum product consumers over possible hiccups in supply in parts of the country due to the workers’ ultimatum. It gave the assurance that the corporation had adequate storage of petroleum products the country to take care of the national demand.

Africa welcomes first ever full-stream oil, gas & energy transformation dais

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OrientEnergyReview

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9th September 2018

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The global energy industry has been experiencing a radical transformation in recent years

CAPE TOWN, South Africa, September 7, 2018/APO Group/ — Speaking on Africa’s hydrocarbon development, Niall Kramer, CEO, South African Oil and Gas Alliance (SAOGA) said, “Growing a gas economy in South Africa and regionally is imperative. We need to do this to partner and to enable renewables but fundamentally to provide the catalyst for the sorely needed growth, business activity and jobs that give us the opportunities for inclusive growth.

The wherewithal that oil and gas can bring is potentially large, but to know that we must explore for indigenous gas and import LNG. Policy attractiveness is certainty needed, as are regional partnerships.

The biggest opportunity I see is the massive proven gas resources in Mozambique alongside South Africa as the largest industrial economy in Africa. My vision is the region becomes like the North Sea. But with good weather.”

The global energy industry has been experiencing a radical transformation in recent years. Replacing large-scale nuclear and fossil fuel power stations, the energy supply of the future will be secured by millions of decentralized renewable energy plants in combination with intelligent storage, distribution and consumption solutions for existing oil & gas resources.

A new beginning

Africa’s newly launched meeting point, the Future Energy Africa Oil & Gas Exhibition & Conference 2018, propositions a power packed 3-day exhibition and conference, dedicated to advancing future oil, gas and energy solutions for the continent. With far reaching industry collaboration, under the esteemed patronage of the Department of Energy of the Republic of South Africa, the event will provide in-depth analysis and an honest reflection of Africa’s set to revolutionize the future. In addition, the event provides an intensive tour across Africa, revealing insights on the issues confronting Africa’s future commercial, business and socio-economic trajectories.

International industry support

The event is supported by numerous international industry associations including South African Oil & Gas Alliance (SAOGA), South African Chamber of Commerce & Industry (SACCI), European Association of Geoscientists and Engineers (EAGE), Association for the Development of Energy in Africa (ADEA), Power Africa (a USAID initiative), Oil & Gas Safety

Council (OGSC), Petroleum club of Romania, Nigerian Gas Association and CEDIGAZ.

Driving the conversation forward

As Sub-Saharan Africa charges towards a low carbon energy future, events such as the Future Energy Africa Oil & Gas Exhibition & Conference 2018 provide valuable forums for the international oil, gas and future energy industry to debate the issues directly with Africa’s leaders. Projected to attract over 1,500 trade visitors, 50+ exhibiting companies, 120+ conference and technical speakers and 300+ delegates, the three-day event promises to be a valuable platform for interactive networking and knowledge exchange.

For more information, download the event Brochure today! (bit.ly/2Q9kWDS)

The biggest opportunity I see is the massive proven gas resources in Mozambique alongside South Africa as the largest industrial economy in Africa

Who will you meet?

Government Leaders
National Oil Companies
International Oil Companies
Independent Oil & Gas Operators
Financiers & Investors
Gas & LNG Companies
Integrated Energy Companies
Technology Providers
Power Generation
Transmission & Distribution
Legal & Industry Analysts

4 Reasons to Visit

Visit the exhibition & technical seminar and network with resource owners looking for partners to help them get the most from their assets through operational excellence, cost effectiveness and profitability
Register & learn about new technologies and solutions that integrated energy companies are bringing to some of the most complex challenges facing the global oil and gas sector today
Attend to explore products and services from 50+ exhibiting companies including contractors, service companies and technology providers across the full value chain from more than 20 countries worldwide
Join hundreds of trade professionals to identify new business opportunities, market trends, and potential business partners. Learn from global experts and benefit from business conducted during the event

Why Future Energy Africa?

Meet with Ministers from across Africa to address the industry on country strategies
Centre of Technical Excellence Seminar Learn about latest technologies boosting efﬁciency and lowering costs
Policy makers discuss confronting challenges of transformation
Country Market Focus with unrivalled insight from Eastern-Western-Southern Africa regions
Forge new operating models that will challenge conventional practices
FEA TV: A dedicated platform for on-stage interviews, “in conversation” dialogues, digitization megatrends, corporate commercials, knowledge sharing and industry insight.
Renewables in Africa: Tap into development initiatives and solutions supporting the advancement of renewable energy in Africa
Finance & Investment focus for equitable economic growth and enhanced bi-lateral trade
On-stage Interview with Africa’s large upstream independent explorers led by CNBC Africa
Africa’s Natural Gas inspect how the continent will succeed in it’s role to decrease the carbon footprint
Increasing & Strengthening Local Content address challenges and opportunities for capacity building
IOC-NOCs Panel Discussion reinventing strategies for a sustainable energy future
Prime networking opportunities to facilitate dialogue between senior level executives and decision makers
Global Exposure to international and domestic oil, gas & energy value chain
Power Generation meet with Utilities and IPPs, build strategic partnerships to meet Africa’s growing energy demand

Distributed by APO Group on behalf of dmg events.

Africa Oil Week 2018 announces partnership with SuperReturn Africa

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OrientEnergyReview

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9th September 2018

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Africa Oil Week welcomes the continent’s biggest investors to attend event

London, UK (06 September 2018) – Africa Oil Week (AOW) has announced their partnership with SuperReturn. This new partnership offers delegates attending SuperReturn Africa, the continent’s biggest investor conference, access to Africa Oil Week on Thursday 8 November 2018.

For operators across the continent, raising capital remains one of the biggest challenges; whether it is funding exploration and production, or financing key infrastructure projects that will secure asset monetization for the long term. Africa Oil Week, in partnership with SuperReturn Africa, will now be able to offer an enhanced environment for operators to meet prospective financial partners, as well as ministers, senior government officials, national and independent oil company executives to exchange ideas and network.

In celebration of this exciting partnership, Africa Oil Week will be welcoming SuperReturn delegates to attend AOW on Thursday 8 November. The day will kick off with a live panel debate on ‘Global Funding Strategies and M&A for the African Upstream’ broadcast on CNBC Africa. Speakers confirmed for this important panel include Samaila Zubairu, President & CEO of the Africa Finance Corporation (AFC), Solomon Asamoah, CEO of the Ghana Infrastructure Investment Fund and Paul McDade, CEO of Tullow Oil.

Following the live broadcast, AOW will host two breakout finance sessions addressing some of the key issues raised in the CNBC panel in greater detail, these include: the role of global finance in the African upstream and how to drive transactions in African infrastructure.

Through this partnership, AOW looks forward to welcoming the continent’s most active energy investors who will gain unrivalled access to the opportunities spread across Africa’s upstream oil and gas markets.

“We are really excited to announce this partnership with SuperReturn Africa. This partnership will allow us to continue to provide a business and intelligence transaction platform and meeting place for Africa’s upstream oil and gas markets.“

– Paul Sinclair, Conference Director, Africa Oil Week.

Now is the time for local investors to step up and electrify Africa

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OrientEnergyReview

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4th September 2018

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After a foreign kickstart, African investors and regulators have to take over the lead in shaping the continent’s sustainable energy future

KIGALI, Rwanda, September 3, 2018/ — For years, the African renewable energy development market has been dominated by foreign investors and financial institutions. Now is the time for African investors to step up to the plate and join the continent’s solar energy transition.

Africa is now even preparing to feed Europe’s growing energy needs through various projects, such as the TuNur CSP project. The project is currently in the early phases of development and will comprise a 2.3 GW concentrated solar power plant situated in the Sahara desert and a 2-G high-voltage DC submarine cable from Tunisia all the way to central Italy. Additional plans of building other export routes to Malta and France are on the table. The project is being financed mostly by European investors and will be constructed using the most modern technology. Europe will soon enjoy of the benefits of green energy coming straight from African soil. But while Europe seeks to power more coffee shops, chain stores and crypto mining server-farms, 50% of Africans are not electrified at all, and the other 50% are often connected to unreliable energy sources.

There are vast opportunities for local African investors present in the solar sector. The continent has an abundance of land available for project development and is home to some of the sunniest places on earth, which makes it an ideal location for solar energy development. Lydia van Os, Africa Lead at Solarplaza, believes that this is the right time for local investors to take action and get involved in Africa’s rapidly growing solar industry. She is convinced that this can only succeed if the movement of people committed to providing clean, reliable and affordable energy is inclusive, from Wall Street investors to Congolese rural households.

To fulfill its mission of accelerating the global sustainable energy transition and create the platform for international and local solar stakeholders to meet and share knowledge, Solarplaza is hosting Unlocking Solar Capital (“USC”) Africa. The third edition of this leading conference will take place on 7 to 8 November 2018 in Kigali, Rwanda. The two-day event is being organized in partnership with the Global Off-grid and Lighting Association (GOGLA), and is wholly focused on unlocking capital for new solar project development in Africa.

For those who can’t wait for the conference to get an in-depth look into the African solar landscape: Solarplaza has published an exhaustive 128-page regional report (http://Africa.UnlockingSolarCapital.com/request-solar-facts-figures-africa-2018/) on Africa’s solar energy situation. The report offers an overview of the key facts & figures related to the most relevant solar PV markets in Africa. The detailed country profiles provide overviews of a range of issues related to solar PV project development and include summaries of key demographic info; insights into legislation and policy; electricity generation capacity; and assessments of the current status of the solar industries in: Morocco, Algeria, Tunisia, Egypt, Senegal, Mali, Ghana, Nigeria, Ethiopia, Kenya, Uganda, Rwanda, Tanzania, Zambia, Namibia and South Africa.

SOURCE: Solarplaza

NIMASA Seeks Synergy between Cabotage and Local Content Act

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OrientEnergyReview

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31st August 2018

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By Oge Obi,

For effective shipping logistics in the country, the Director General of Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, has called for the synergy between the Local Content Act 2010 and the Coastal and Inland Shipping (Cabotage) Act 2003.

The NIMASA boss made the call on recently at a one-day seminar on “Local Content Development in Shipping, Oil and Gas Logistics Operations in Nigeria,” held in Lagos.

Represented by the Assistant Director, Shipping Development, Anna Akpan, the DG said that shipping is strategic and very importance to the oil and gas industry.

He noted that the cooperation between the two governing acts of the maritime sector would ensure the smooth transportation of over 70 per cent of all crude oil production by ship and boost the nation’s economy.

“More oil production activities are being carried out offshore. This shows that the oil industry relies heavily on maritime industry for its smooth operations.

“In Nigeria, the maritime industry shares not only common business interests with the oil and gas sector but also common challenges.

“The most pronounced of these challenges is foreign domination. In spite of the huge revenue generated by these two industries, their impact in terms of employment and generation of economic growth had been so low.

“The oil and gas sector accounts for almost 90 per cent of the foreign earnings but contributes less than 20 per cent to Gross Domestic Product and five per cent of total employment which is a misnomer,” Peterside said.

He said that statistics have shown that the country generated an estimated annual cargo throughput of N150 million tons with freight earnings in excess of five billion dollars in international trade transactions.

Peterside said 95 per cent of the income was earned by foreigners with the attendant job deprivation to the country.

He said it has become necessary for the two agencies to identify areas of national interests and design a strategy for an effective implementation of the act.

Speaking further, he said that NIMASA had examined the provisions of the Local Content Act and came up with its implementation within the ambit of the Cabotage law.

Speaking also, the Corporate Communication and Zonal Coordinator, Nigerian Content Development and Monitoring Board (NCDMB), Ginah Ginah said that lack of vacancy has hampered active participation of trained workforce in local content development.

“We have trained 500,000 Nigerians on Local Content developments but there was no vacancy to enable them to operate.

“There is need to improve low functional steel sector to solve the immediate problem of the oil and gas sector in the country,” Ginah said.

Women Threaten To Go Naked Over SNEPCO Relocation from Onne

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OrientEnergyReview

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31st August 2018

0

By Oge Obi,

A group of community women under the aegis of Concerned Community Women of Rivers (COCOWOR) in Port Harcourt on Monday vowed to storm the Supply Base of Shell Nigeria Exploration and Production Company (SNEPCO) in the Oil and Gas Free Zone, Onne, naked over an alleged plan by the SNEPCO to relocate the supply base to Lagos.

Speaking in Port Harcourt on Monday, the leader of COCOWOR, Henrietta Edumoh, said that the women are working on mobilising more women from all over Rivers State to storm the SNEPCO Supply Base, Onne naked as a way of registering their displeasure over the company’s planned relocation.

She said, “As mothers, we cannot fold our arms and watch our husbands and children being mercilessly thrown out of their jobs.

“If SNEPCO relocates its Supply Base from Onne, it means those who work there, numbering thousands of people will lose their jobs.

“It also means that our people who try to make ends meet by doing small small contracts or trading around that facility will suffer.

“How do you want those people to cater for themselves and their families? What have they done wrong? What crime did they commit?” Edumoh asked.

Stressing, that the SNEPCO Supply Base relocation would lead to throwing more people into the labour market, Edumoh said that it is capable of rocking the fragile peace in the Niger Delta region.

“They say an idle mind is the devil’s workshop. If people don’t have jobs to do, that’s when they begin to conceive criminal ideas. We don’t want that to happen in our communities. So, we beg them not to leave Onne because Onne has been very good to them. It has been a very peaceful community which has supported their business very well for many years,” she said.

She hinted that the planned protest will only be shelved if SNEPCO assures her members that it will rescind its decision to relocate.

Not being alone in the protest against the SNEPCO relocation, about three weeks ago, some youths in the areas under the aegis of Onne Youths Council (OYC) staged a peaceful protest at the SNEPCO base. They requested the company to rescind its decision to relocate the Supply Base from the free zone to the Lagos port.

The President of OYC, Comrade Philip John Tenwa, who led the peaceful protest, had said that the planned relocation would lead to the loss of more than 5,000 direct and indirect jobs.

In the same vein, various interest groups including workers, stakeholders and community leaders have also kicked against the planned relocation of the SNEPCO Supply Base out of Onne.

In addition to staging a peaceful protest, the Onne Youth Council also said it would send petitions to relevant authorities including President Muhammdu Buhari; Rivers State Governor Nyesom Wike; the Oil and Gas Free Zones Authority (OGFZA); the Nigerian Ports Authority (NPA) and the Nigerian Content Development and Monitoring Board (NCDMB) to prevail on SNEPCO to rescind its decision because of its consequences on the economy of Rivers State and the well being of the people.

“The times are hard because in the past three years, no fewer than 15,000 people have lost their jobs at the Onne Port and the Onne Oil and Gas Free Zone as a result of the economic downturn in the country.

“We think SNEPCo should not compound this situation with the relocation of their Supply Base to Lagos,” the President of OYC, Comrade Philip John Tenwa, said.

The Paramount Ruler of Onne, King John Dennis Osaronu, also lent his voice to the call on SNEPCO to rescind its relocation decision.