Paris, France, December 3, 2015 – Eight multilateral development banks today issued a joint statement, committing to accelerate their efforts to mitigate transport emissions and recognizing the need for more action on the resilience of transport to climate change. The sector accounts for about 60% of global oil consumption, 27% of all energy use, and 23% of world energy-related CO2 emissions.
In their statement, the African Development Bank (AfDB), Asian Development Bank (ADB), CAF-Development Bank of Latin America (CAF), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), Islamic Development Bank (ISDB), and the World Bank (WB) pledged to speed up action on:
Climate Finance: MDBs have recently committed to substantially increase financing for climate change mitigation and adaptation over the next few years. Transport is expected to play a key role in that commitment.
Low-carbon Transport Solutions: The MDBs will increase their focus on low-carbon transport solutions and will continue to harmonize tools and metrics to assess transport-related GHG emissions.
Adaptation: The MDBs will jointly develop a systematic approach to mainstream climate resilience in transport policies, plans and investments.
“We, the multilateral development banks, believe that climate change is a defining challenge of our time. Actions to reduce greenhouse gas emissions and stabilize warming at 2 degrees Celsius will fall short if they do not include the transport sector. We commit to support countries in the implementation of sustainable transport solutions by providing critically needed financial and technical support to assist them in responding to rising aspirations for greater mobility and connectivity, in a sustainable and resilient way,” said Luis Alberto Moreno, President of the Inter-American Development Bank.
Moreno presented the statement on behalf of the eight MDBs during the Transport segment of the Lima Paris Action Agenda. Among the Intended Nationally Determined Contributions (INDCs) submitted as of November 12, 2015, about three quarters explicitly identify the transport sector as a mitigation source, and more than two thirds propose transport sector specific mitigation measures. In 2012, the MDBs pledged $175 billion by 2022 in financial resources for more sustainable transport.
Find the Progress Report (2014-2015) of the MDB Working Group on Sustainable Transport here.
Quotes:
“Transport infrastructure investments made in rapidly growing rapidly growing African cities need to be low-carbon and climate-resilient. The African Development Bank, leading financing institution in the transport sector in Africa, always takes climate issues into account. Global cities produce three-quarters of the greenhouse gas emissions. Therefore, the Bank going forward will put greater emphasis on improving urban transport and mobility through innovative public transportation systems, and efficient traffic management systems,” said AfDB Vice-President Vice-President for Infrastructure, Private Sector and Regional Integration, Solomon Asamoah.
“Asia’s burgeoning cities and remote communities alike need low-carbon, climate-resilient transport systems to thrive. ADB will prioritize bus and metro systems in cities, pedestrian and cycle pathways, and long distance railways to reduce emissions and congestion while providing safe and efficient transport in Asia,” said Bambang Susantono, ADB Vice-President for Knowledge Management and Sustainable Development.
“Transport plays a key role in the climate change agenda worldwide, but Latin America´s engagement becomes a more critical factor in developing sustainable solutions given the high motorization rates the region is facing. Today, Latin America is suffering the most challenging impacts of climate effects; today not 2050 or 2100. Our countries, emerging economies, carry greater challenges and responsibility into building faster solutions understanding that we are becoming a larger player in emissions,” said Enrique Garcia, President and CEO of CAF -Development Bank of Latin America.
“Transport is a core sector in our climate finance activities. With the adoption of a Green Economy Transition approach, the EBRD will aim to increase its environmental financing to 40 per cent of total annual finance by 2020. Low-carbon transport solutions will continue to play a crucial role in boosting our contribution to global efforts to combat climate change,” said the EBRD Managing Director for Infrastructure, Thomas Maier.
“Investment to ensure more sustainable transport is crucial to cutting greenhouse gas emissions and delivering environmental, social and economic benefits. The European Investment Bank is committed to supporting schemes that transform national mobility and cut congestion in growing cities. Transport is the second largest source of carbon emissions and sharing experience from projects elsewhere around the world and greater cooperation amongst the world’s public banks will ensure that new sustainable transport projects can make a more effective contribution to fighting climate change. We look forward to increasing cooperation with key partners to make this possible,” said Jonathan Taylor, European Investment Bank Vice President responsible for climate action.
“Supporting our member countries to develop efficient transport systems that are climate smart and resilient is a major goal for us. We will work together with other MDBs to ensure that we come up with innovative solutions that will help reduce carbon emissions,” said Dr Ahmad Mohamed Ali, President of IsDB.
“Transport must be a significant piece of the climate solution. We have the opportunity to transform transportation services so they are low-carbon and resilient to climate impacts. Now is the time to turn our commitments into action and we stand ready to work with countries as they develop low carbon and climate-resilient transport activities,” said Laura Tuck, World Bank Vice President for Sustainable Development.
“Evidently, the sector does have lots of potential”
“Gathering all the stakeholders to discuss the challenges and the way forward in Nigeria’s mining sector has been a huge boost in confidence for the industry and mining professionals in the country are very optimistic about the sector’s imminent rejuvenation.” This is according to Nicole Smith, event director of the inaugural iPAD Nigeria Mining Forum in partnership with PwC Nigeria, where more than 200 mining professionals gathered in Abuja in November.
Nigeria’s vastly underexploited natural resources include about 44 varieties of minerals in over 500 locations. iPAD Nigeria Mining Forum in partnership with PwC attendees included current and prospective investors, legal advisors, regulators, mining professionals and other stakeholders. The Federal Ministry of Solid Minerals was an official supporter of the event.
PwC Nigeria’s Mining Sector Leader and Head of Consulting, Cyril Azobu, says he is “very pleased with the fruitful interaction that took place at this inaugural forum. As leading advisors to the mining industry, PwC works with clients to unlock opportunities in this industry. It is clear that mining is facing an exciting future in Nigeria.”
More feedback from high-level attendees at the iPAD Nigeria Mining Forum in partnership with PwC:
“The Forum provided a platform for interactions between most stakeholders in the mining industry, particularly the private sector players and government institutions. It has created a better understanding on the roles expected to be played by both the government and the private sector in the development of a productive mining industry”
– Sanusi Jibril, Head of Minerals and Metals Promotion, Ministry of Solid Minerals Development
“An elevating experience. Nice to network with the core drivers of the Mining and Minerals sector in Nigeria. Evidently, the sector does have lots of potential.”
– Ikpi Ununo Ugot, The Nigerian Institute of Mining and Geosciences
“I commend the organisers for such a well put together event. Key players in the industry were present which gave me the confidence that each company in attendance benefited from the discussions and presentations. The numerous breaks and networking sessions also added to a memorable and profitable experience.”
– Sophie Ejegi, Advocaat Law Practice
“The Forum afforded me the opportunity to learn new things as it relates to the solid minerals sector”
– Udhedhe J. Orogun, Bank Of Industry Ltd.
“The conference was inspiring, interesting and motivating”
– Lami Ahmed, Chrisanbeth Investment Ltd.
“A very exciting and worthwhile experience”
– Ahmed Damagum, Mining Cadastral Office
“Wonderful experience”
– Augustus Emeasoha, First Bank Nigeria
“A good forum for a realistic check on the sector”
– Olufade Adeleke John, Total Business Solutions Ltd.
“I had a rewarding experience attending, it’s a worthwhile experience”
– Jacob Akuma, Ministry of Solid Minerals Producing Communities, Ebonyi State.
iPAD Nigeria Mining Forum in partnership with PwC also enjoyed widespread support from the industry including the Miners Association of Nigeria as well as the Nigerian Mining and Geosciences Society. Silver sponsors for the event were Bank of Industry and MRI Trading, while Advocaat, Anthracyte, Banwo & Ighodalo, Carl Dave Consultants Ltd, Kian Smith Trade & Co, Natony Limited, Nigachem and SBOG signed up as bronze sponsors.
The event was organised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK in partnership with PwC Nigeria.
Website:
ENGIE currently supplies 760 MW of power in Africa and aims to become one of the major energy leaders on the continent by 2025
PARIS, France, November 27, 2015/ — Stéphane Richard, CEO of Orange (www.Orange.com), and Isabelle Kocher, Deputy CEO and Chief Operating Officer of ENGIE (www.ENGIE.com), today signed a partnership covering two projects – the expansion of the rural electricity grid and ENGIE’s optimisation of energy supplied to Orange’s telecoms infrastructure in Africa.
The deal between Orange and ENGIE––both official partners of COP21––reasserts the companies’ willingness to use their technological knowledge to achieve sustainable progress and economic and social development in Africa.
The strength of the partnership is based on Orange’s expertise as an international telecoms carrier present in 19 countries in Africa and the Middle East, and ENGIE’s know-how as an international player in the the energy sector.
Orange is keen to take part in such a major challenge to expand the electricity grid in Africa and encourage responsible power consumption on the continent based on the expertise of ENGIE, one of the world’s leading energy companies.
ENGIE currently supplies 760 MW of power in Africa and aims to become one of the major energy leaders on the continent by 2025 with several major projects planned. To reinforce its position as the leading independent producer of electricity in Africa, ENGIE has created a dedicated Business Unit with around a hundred employees.
Orange and ENGIE bring electricity to rural Africa
Based on Orange’s expertise as a telecoms carrier and ENGIE’s experience in renewable energy production, aggregation and maintenance, the two Groups will trial a range of domestic power supply solutions for rural populations that could then be marketed by Orange.
These solutions could, for instance, include individual solar kits and small-scale, local electricity networks. The service could then be billed via mobile using Orange Money.
The trials will allow the companies to validate the technical solutions, the sales and distribution models, and the economic feasibility of the service before making it available on a larger scale.
Orange and ENGIE are keen to play their role as socially responsible players in Africa, where an estimated 69% of the population in sub-Saharan Africa and 90% of the rural population in the same region have no access to the electricity grid(1).
ENGIE helps to optimise the supply of Orange telecoms towers
ENGIE supports Orange with its ongoing project to optimise the power supply of its technical infrastructure in Africa. ENGIE will offer its expertise to improve Orange’s energy efficiency.
Orange’s objectives are to pursue its stable and secure power supply program, reduce its energy footprint, and contain costs despite rapidly growing energy requirements.
The aim of the meeting is to drive forward strategic partnerships between investors, project developers, governments, utilities and regulators to achieve the goal of bringing power to Africa
CAPE TOWN, South Africa, November 24, 2015/ — EnergyNet is to host the second annual Powering Africa: Summit (www.PoweringAfrica-Summit.com) at the Marriott Marquis, Washington, D.C. from 27-29th January 2016.
Industry leaders from the USA and Africa who have confirmed to attend include H.E. Hon Minister Jeannot Matadi Atadi Nenga Gamanda, Minister of Energy and Water Resources, DRC, H.E. Hon Minister Obeth Kandjoze, Minister of Energy and Minerals, Namibia, Andy Herscowitz, Co-ordinator, Power Africa and Trade Africa, Anita Marangoly George, Senior Director, Energy and Extractives, The World Bank Group and Karen Breytenbach, Head of IPP Office, Department of Energy, South Africa.
The Powering Africa: Summit (PA:S) is an investment conference where African ministers of finance and energy and US government agencies behind the Power Africa initiative meet with private sector investors and power developers from across North America and Africa. The first meeting, held in January 2015, saw 17 African countries represented with 57% of attendees originating from North America.
Programme Manager Veronica Bolton-Smith commented, “PA:S is a valuable platform as it enables dialogue between key stakeholders and developers, chiefly heads of African utilities, US-based private equity houses and wealth management establishments.”
The aim of the meeting is to drive forward strategic partnerships between investors, project developers, governments, utilities and regulators to achieve the goal of bringing power to Africa.
Following a surge of private equity interest across Sub-Saharan Africa, PA:S will explore the power & infrastructure projects currently piquing the interest of investors, including the gas to power supply chain. Attendees will also receive an update on the South African Gas IPP programme and the opportunity this presents to investors. Industry and agriculture will feature on the 2016 agenda, examining the role transmission plays in the success of these industries.
Targeted workshops will examine the landscape for investment in Morocco, South Africa and Nigeria, as well as exploring industry-specific themes such as Public Private Partnerships and “Innovation time”- a workshop for innovators to meet with private equity investors.
The 2016 Summit will launch a networking app to enhance participants’ experience by allowing them to set up private meetings and meet with the right contacts more easily.
A full list of confirmed speakers can be found at www.PoweringAfrica-Summit.com
SONAGAS to market its share of LPG production to international buyers
Negotiations with offtakers ongoing, SONAGAS to determine best bidder
SONAGAS is 20 percent shareholder in LPG operations at Punta Europa
MALABO, Equatorial Guinea, November 25, 2015/ — The Ministry of Mines, Industry and Energy of Equatorial Guinea has announced that national gas company SONAGAS (http://SONAGAS-ge.com) will begin marketing the State’s share of liquefied petroleum gas (LPG) produced at the Alba Plant, on Bioko Island. SONAGAS has now opened negotiations with offtakers and will begin marketing its LPG production stake to international buyers from January 1, 2016.
SONAGAS is a 20 percent shareholder, alongside Marathon Oil (40 percent) and Noble Energy (40 percent), in LPG production at the Alba Plant, situated at the Punta Europa gas complex. The Alba Plant partners, SONAGAS and the Government of Equatorial Guinea have agreed that SONAGAS will market its 20 percent share of LPG production on behalf of the State.
The Government believes this is a major step for local content in Equatorial Guinea. H.E. Gabriel Mbaga Obiang Lima, Minister of Mines, Industry and Energy, stated: “SONAGAS marketing its share of LPG fulfills one of the major objectives envisaged by the State in creating the company a decade ago – that of a national gas company with capacity across the spectrum of gas activities. SONAGAS is evolving to take on more of the gas business, not only as a shareholder at Punta Europa, but throughout the entire value chain.”
The LPG production plant began operating in 1991 and was modernized in 2003-2005. The plant produces 8,000 barrels per day of butane, 14,000 barrels per day of propane and 6,000 barrels per day of condensed gas.
Sociedad Nacional de Gas G.E., known as SONAGAS, was set up in 2005 to develop gas projects on behalf of the Government of Equatorial Guinea and to maximize the value of natural gas to the country. The company is owned fully by the Government. It acts as a promoter of natural gas sector activities in Equatorial Guinea and is the state’s representative and stakeholder in national projects.
Following speculations making the rounds with regards to Amnesty international’s decision to release a new report indicting Shell over the Ogoni cleanup, the Anglo-Ducth Oil giant has denied any wrongdoing in the clean-up process and insisted that no clean up is possible while illegal bunkering and pipeline vandalism remains a regular practice in the area.
According to shell “you cannot mop or clean the floor while the tap is running, as all attempts in that regard would remain futile”.
The Company stated further that the UNEP report was very clear in its recommendations to bring about a sustainable clean-up exercise in Ogoni land. The report stated that the federal government should take the lead in a multi-dimensional clean-up approach involving all stakeholders including Shell, but Shell is expressing worry over Amnesty international’s decision to single it out for the clean-up when the UNEP report was very clear on its recommendations.
Speaking on the development, spokesman of SPDC, Precious Okolobo said: Without having access to the report it is difficult to respond to these issues in a thorough manner.
“Implementation of the UNEP report is part of a wider programme of remediation, pipeline protection, community engagement and social investment activities being undertaken by the SPDC JV with its government, community and civil society partners in Ogoniland.
These include grassroots campaigning on the health and environmental impacts of crude oil theft and illegal refining in all four local government areas of Ogoniland; implementation of alternative livelihoods programmes, including an agricultural entrepreneurialism scheme focused on Ogoni youth; and technical support to the Eleme water project, which is now administered by the Rivers State Government.
“SPDC JV is committed to cleaning up all spills from its facilities, irrespective of cause. This is equally the case in Ogoniland, despite the fact that we ceased producing oil and gas there in 1993. As the UNEP report stated, it is crucial to put an end to the widespread theft and illegal refining of crude oil, which continue to cause new spills and impact on the environment. Ensuring long-term sustainability remains a challenge that will require coordinated and collaborative action from all stakeholders.”
A group known as Oil and Gas Environmental Professional of Ogoni (OGEPO) has advised Shell Petroleum Development Company (SPDC) to deal directly with them in the discussion of OML 11 licensing and acquisition so as to forge ahead in its business transaction.
The Public Relations Officer (PRO) of the professional body, Mr. Dumbari John gave the advice while speaking with newsmen at the end of a 3day retreat held in Port Harcourt.
Mr. John Dumbari disclosed that the group and Ogonis are aware of plan to involve unwanted agent, claiming to be acting on behalf of the Ogoni people in the discussion and negotiation on OML 11 licensing and acquisition, adding that the Ogoni people had not mandated the purported agent to act on their behalf, and that the group took this position at the end of their meeting in Port Harcourt.
He admonished the multinational oil company not to transact any business with the said agent and stressed that contrary, the exercise would be in futility, recalling that they learnt that the aid agent, who is an ex-staff of Shell, had a closed door meeting with the leadership of the multinational oil giant on behalf of Ogoni people and the land owners of the Ogoni oil block.
The group affirmed that the said agent played a negative role in the Ogoni struggle when their leader, Ken Saro-Wiwa was alive and therefore should not reap from here he did not sow.
Mr. John Dumbari said that they support stakeholders’ engagement in the planned acquisition of OML 11 and encouraged Ogonis to be players and not just onlookers. His words: “we condemn the purported meeting between the multi-national companies, operator of the OML 11 on September 28, 2015 in the morning hours with the said agent. We distance ourselves from the purported meeting.
“We welcome the drive by the present Buhari administration towards the implementation of the UNEP report. We ask that plan be expedited while the proposed $1billion be reviewed to reflect current realities similar to the $2.7billion for North East habilitation”.
“We also appeal to all Ogoni sons and daughters at home and in Diaspora, interested in operating the OML 11 to come out for bidding. We also call concerted efforts from the Ogoni environmental consultants /contractors to move to the next level in bringing to bear international best practices in restoring the environment for sustainable development”, the group stated.
They declared that Ogoni professionals must chart the road map for successful implementation of UNEP report so as to bring about even development to all parts of Ogoni land.
In bid to fulfil its corporate social responsibility to the communities that fall under its jurisdiction of OML58 category, Total Exploration and production multinational oil company have carried out a free health awareness programme for the people of Rumuogba in Obio/Akpor Local Government Area.
The free health programme tagged “2015 Healthy Living Awareness for host communities” carried out medical tests and educate the people on healthy living, how to prevent some common Diseases physical fitness among others, while members of the communities had the opportunity to be tested for their blood sugar level, HIV/AIDS, hypertension.
Speaking at the ceremony, the Deputy General Managing Director, Port Harcourt District, Mr. Nicolas Brunet said Total E & P was committed to touching the lives of the host communities so as to correspond with the overall objectives of the company. According to him, “To ensure healthy living for staff and families and as part of our Corporate Social Responsibility (CRS) for our host communities, TEPNG will continue to demonstrate commitment to the comprehensive well being of our communities, the overall objective being to draw attention to very easily overlooked health condition and lifestyles that can deprive us of our wellness and continue to do the sickbay or hospital, sometimes with attended total consequences”
The Deputy General Manager, who was represented by the Senior Advisor Community Affairs, Mr. Charles Edouard noted that the health awareness programme was designed for the company’s host communities in Rivers and Akwa-Ibom States, saying that, “the company had earlier donated drugs and medical consumables to Health centres across communities that fall within the OML58 category”.
He explained that members of the community should endeavor to embrace change of habits and lifestyle in order to promote their overall wellness and healthy living’ pointing out, early identification of signs and symptoms would help people in seeking medical help before they become too late for diagnosis and effective treatment’.
He said further, “This awareness campaign, we hope will engender effective and sustainable lifestyle and habit changes that will help in preventing most medical emergencies and deaths” he added.
Speaking earlier, the tradition ruler of Rumuogba His Royal Highness, Eze Temple Ejekwu, said that Rumuogba is a luck community, being the first host community to benefit from 2015 health awareness programme. In his words, “I call on my subjects to always be conscious of their health status by going for medical test. Many people think they are healthy because they go out and come in, they do not know about their health status”.
Eze Ejekwu commended the oil multinational Total E & P for the health awareness programme and called the people to take advantage of the screening to know their health status and assured that the awareness campaign would be brought to their doorsteps. I will continue to appeal to those who had not participated in the screening to do so”.
He called the TEPNL to make provision for administration of drugs next time they were organizing healthy living awareness programme for the host communities. Among those who benefited from the programme were, children, women, chiefs of the community and the paramount Ruler Eze Ejekwu.
The Nigerian Content Development and Monitoring Board (NCDMB) has called Multinational Oil Companies operating in Nigeria and the managements of the refineries to patronize indigenous oil services companies.
Executive Secretary of the Board, Mr. Denzi Kentebe, made the call at the opening of the first indigenous Masoneilan – approved repair centre at Onne, in Eleme Local Government Area of Rivers State, said the step was necessary in order to boost local content.
Kentebe said where the indigenous companies have the capacity to satisfactorily carry out services in the sector, there was every need to reserve such jobs for them and stressed that it was by doing that the wisdom in the establishment of the local content initiative could be achieved.
By encouraging local content in the activities of the multinational oil and firms, Kentebe said local capacity would be enhanced while more employment and wealth creation would be achieved in the sector in view of its diverse nature.
The NCDMB scribe who was represented by the coordinator, Legal Services of the Board, Mr. Adetunde Adelana, commended the initiators for the centre, saying the project would be for the benefit of Nigerians in terms of training, employment and infrastructural development.
According to him, “For us in NCDMB, these are some of the things we have tried to push in the country so that Nigerians can begin to play better roles in the oil and gas industry”, he said.
The centre was built by an indigenous oil procurement and engineering company, Manuex Company Nigeria Limited and certified by GE Oil and Gas for the assembling, repairing, sizing and actuating of values.
The successful implementation of the Nigerian Content Act is fundamental to the sustenance of national security because it engages thousands of citizens in productive activities and contributes significantly to the gross domestic product, the Executive Secretary, Nigerian Content Development and Monitoring Board, (NCDMB) Mr. Denzil Kentebe has said.
Delivering a lecture on Wednesday to the participants of Course 22 of the Nigerian Defense College in Abuja, the Executive Secretary described Nigerian Content as a national security imperative, noting that the Nigerian oil and gas industry must depend on Nigerian owned assets and personnel to avoid a scenario where the sector that generates 85 per cent of government revenue is forced to shut down because foreign owned assets or expatriates have to be withdrawn owing either to insecurity in the Gulf of Guinea Region, diplomatic tensions or break out of an epidemic in the country.
He regretted that the Nigerian oil and gas industry suffered capital flight in the region of $300bn in the first 50 years of operations, while 300,000 Nigerian jobs were exported to the detriment of the local economy. That era did not record the establishment of any legacy investment from major industry projects, rather little attention was paid to oil producing communities, forcing some persons to take to militancy, thereby cutting crude production output by one million barrels per day, he rued.
He explained that the Nigerian Content Act was introduced in year 2010 to correct such mistakes and it focusses on maximizing the utilization of Nigerian resources in the operations of the oil and gas industry, integrating oil producing communities into the industry value chain and fostering institutional collaboration.
Other areas of interest include linking the oil and gas industry with other sectors of the economy, maximizing the participation of Nigerians in the sector and attracting investments. He stressed that Nigerian Content was not about ‘Nigerianisation’ of the oil and gas industry but about adding value in-country.
Kentebe further explained that the Board’s strategic initiatives had in five years recorded substantial growth in the number of Nigerians trained and employed by the oil and gas industry, increase in the quantum of goods sourced from Nigeria and rise in the number of Nigerian owned assets operating in the industry.
He added that over $5bn had been invested in the Nigerian oil and gas industry between 2010 to date in the establishment and upgrade of fabrication yards, acquisition of marine vessels, rigs and other assets by Nigerians and setting up of manufacturing facilities by original equipment manufacturers.
Other positive developments included the increased patronage of SCC pipe mill in Abuja by operating companies and ongoing arrangements to set up four new mills, emergence of several maintenance facilities for vessels and rigs, rise of indigenous players in the exploration and production sphere of the industry and inclusion of capacity development initiatives as major components of projects.
Expounding on the success of the policy, Kentebe stated that countries like Kenya, Gabon and Ghana had started to introduce local content regulations and the Board was supporting their efforts just as the Board had collaborated with the Ministry of Power and Ministry of Communications and Technology in developing their local content policies.
He expressed optimism that over $10bn would be invested in the Nigerian economy between 2015 and 2018 in new fabrication yards, floating, production, storage and offloading vessels integration yards, establishment of shipyards and dry docks supporting the construction and outfitting of marine vessels and support of indigenous companies venturing into deep-water exploration. Other expected investments within this period include the umbilicals and gas cylinders manufacturing facilities, establishment of Training Centers of Excellence (TCE), Research and Development Centers of Excellence, operation of Nigeria oil and gas parks to manufacture critical goods and promotion of youth empowerment programs targeted at50,000 youths.
The Executive Secretary recalled that the Nigerian Content subsector and the security sector had cooperated in the past through the use of the Naval Dockyard in Lagos to construct security vessels that support the oil and gas sector, the use of the Naval Dockyard by Dormanlong Engineering to fabricate oil and gas structures and the utilization of Naval Base Warri by the Board for machinist training of young Nigerians.
He however, called for the deepening of such relationship, identifying possible areas of collaboration to include information sharing, inclusion of security personnel as members of the Essential Services Working Group of the Nigerian Content Consultative Forum (NCCF), local manufacture, assembly and maintenance of security equipment, software development and assembly of ICT hardware and production of security clothing.
Listing factors critical for improving Local Content and enhancing national security, Kentebe canvassed for Nigerian Content to be championed at the highest level of government and integratedinto the national development agenda with various agencies of government collaborating.
He also harped on the need for improved infrastructure and fiscal incentives to attract new investments, aligning university curriculum to the needs of oil and gas sector so as to maintain a healthy pipeline of talents and integrating entrepreneurs from oil producing communities into oil and gas value chain in a bid to maintain the peaceful environment in those communities.
THE development of indigenous manpower for the oil and gas industry received a boost last Friday as 40 engineering and geosciences graduates passed out from a one-year internship programme organised by the Shell Petroleum Development Company of Nigeria (SPDC) operated Joint Venture and Petroleum Technology Association of Nigeria (PETAN), a group of indigenous oilfield service companies.
The milestone occurred on the same day that SPDC JV performed the ground-breaking ceremony of its Original Equipment Manufacturers (OEM) domestication initiative, whereby the manufacturers and their Nigerian partners have been allocated land to set up local assembly plants and service centres at the Shell Industrial Area in Port Harcourt.
A cross section of the 2014/2015 beneficiaries of the Shell Petroleum Development Company of Nigeria Limited JV Internship programme at their graduation onFriday, October 30, 2015. The Annual Programme is sponsored by the SPDC JV in collaboration with the Petroleum Technology Association of Nigeria, PETAN, to build capacity of Nigerian Geology and Engineering graduates. Photo courtesy: SPDC
The internship programme introduced by SPDC JV in 2014 to support manpower development in critical disciplines equips graduates with vital industry experience for employment and continues with another batch of 40 graduates who are now attached to 20 PETAN companies.
In an address at the ceremony, Managing Director of the SPDC and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, said: “I’m pleased at the successful completion of the programme by the first batch of 40 graduates who worked with 12 PETAN member companies. I’m even more pleased that, as envisaged, a number of them have been employed by the partner companies and others.” The MD was represented by SPDC’s General Manager, Projects, Toyin Olagunju.
Guy Kent, Senior Procurement Manager, Shell Upstream Nigeria said: “We are committed to developing Nigerian capability not because it feels good, but because it also makes good business sense. The partnership with PETAN is about giving the right people the chance to learn and actually start to contribute to the industry. It is the first rung of the ladder of development.”
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) represented by the Deputy Manager Human Capital Development, Mrs Michele Aiyegbusi, commended the SPDC JV for the internship initiative. She said: ‘What we see here today is the sort of thing that NCDMB will want to see in the industry—the collaboration between the operators and the service providers. NCDMB also runs an internship programme specifically in the earth sciences.”
Meanwhile, three foreign equipment manufacturers and their Nigerian partners participated in the ground-breaking ceremony. In 2012, SPDC entered into an agreement with the original equipment manufacturers and their Nigerian partners. Subsequently, land was allocated to them at the Shell Industrial Area in Port Harcourt. The ground-breaking ceremony marks site readiness and construction of the first three assembly and service facilities for valves, low voltage electrical panels, switch gears and instrumentation equipment.
“The ground-breaking ceremony is a significant head start towards the development of mini industrial parks,” said Mr. Okunbor at the ceremony. “It is a major milestone in our aspiration to domesticate our sources of supply as part of our Nigerian content journey to keep them closer to our operations and benefit from the shorter supply chain.”
The Executive Secretary, NCDMB, Mr. Denzil Kentebe, said: “SPDC was one of the first stakeholders to obtain approved from the Board for the OEM domestication programme. The vision ties into a similar plan by NCDMB to establish industrial packs in Yenagoa, Owerri and Calabar.”
The General Manager, Nigerian Content Development of SPDC, Mr. Chiedu Oba, in his remarks described the internship and the OEM domestication initiatives as a demonstration of “the long term commitment of Shell Companies in Nigeria to Nigerian content development. It is a key sourcing principle that is woven into the fabric of our business”.
THE Nigerian National Petroleum Corporation, NNPC, and Shell Petroleum Development Company of Nigeria, SPDC, have reiterated their commitment to promoting sustainable development in the area of their operations across the country.
Speaking at the 2015 SPDC Joint Venture External Relations Road show and Exhibition in Abuja, the Group Executive Director, Exploration & Production, NNPC, Dr. Maikanti Baru, emphasised the need for organisations to operate and deliver services in a manner that is efficient and effective, with minimal impact on the environment.
Baru, who was represented by the General Managing, Planning, Nigeria Petroleum Investment Management Services, NAPIMS, Mr. Dung Gwom-Bot, maintained that while businesses should strive to be socially equitable and economically viable, they should also focus on meeting the basic needs of the population and future generation.
He said: “It is imperative to take into cognisance that for any growth or development to be successfully sustainable, it must be all encompassing and inclusive, that is, economic growth, environmental stewardship and social inclusion must be inherent. “Opportunities abound for organisations to do more in areas of sustainable development, while we on our part would continue to invest and optimally utilise resources to preserve the environment, provide clean energy, reduce waste and support local businesses for economic stability.”
Also speaking, the Managing Director, SPDC/Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, said the journey towards sustainability is a continuous process, adding that Shell views sustainability as delivering energy in a responsible way to meet the world’s growing needs.
Okunbor, who was represented by the General Manager, Business and Government Relations, SPDC, Mr. Simbi Wabote, said that a responsible approach to sustainability as practiced by Shell is not just viewed as a matter of principle, but also as making good business sense.
According to him, sustainability allows the company to share benefits with the communities in which it operates, while increasing trust and building lasting and positive relationships.
A Survey put together by United Kingdom based Maritime Experts, Moore Stephens, has predicted that vessel operating costs are expected to rise before the end of this year and in 2016.
According to the new survey, crew wages, repairs and maintenance, and dry-docking are the cost categories likely to increase most significantly within the period.
The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to rise by 2.8% in 2015 and by 3.1% in 2016.
It explained that Crew wages are expected to increase by 2.4% in 2015 and by 2.3% in 2016, with other crew costs thought likely to go up by 2.0% and 1.9% respectively for the years under review. The cost of repairs and maintenance is expected to escalate by 2.3% in 2015 and by 2.4% in 2016, while dry-docking expenditure is predicted to increase by 2.6% and 2.3% in 2015 and 2016 respectively.
The cost of hull and machinery insurance is predicted to rise by 1.8% and by 1.9% in 2015 and 2016 respectively, while for P&I insurance the projected increases are slightly lower – 1.7% and 1.8% respectively.
Expenditure on spares is expected to rise by 2.3% in 2015 and by 2.2% in 2016, while for stores the corresponding projected increases are 1.8% and 1.9%. The increase in outlay for lubricants, meanwhile, is predicted to be 1.1% and 1.7% in 2015 and 2016 respectively, and that for management fees 1.7% in each of the two years under review.
The predicted overall cost increases for 2015 were highest in the offshore sector, where they averaged 3.4% against the overall survey increase of 2.8%. For 2016, it was the tanker sector which was predicted to experience the highest level of increases – 3.4% compared to the overall survey average of 3.1%. The container ship sector, meanwhile, was not far behind at 3.3%.
One respondent said, “We expect costs generally to increase as charter rates creep up, although they will probably lag behind the latter. With charter rates generally low at present, the provision of services to the shipping industry needs to remain competitive, with suppliers reluctant to put up charges too soon for fear of losing business.”
Elsewhere it was noted, “Future operating costs will increase exponentially due to innumerable new regulations, the low competence of seafarers, the high bargaining power of the oil majors, stricter rules regarding maintenance and repairs carried out in ports, the advent of more sophisticated onboard machinery, and increasing consolidation in the marine equipment and services sector, resulting in more bargaining power for fewer, larger companies.”
Another respondent highlighted the fact that ship managers are under increasing pressure, pointing out, “Overcapacity within the markets is driving charter rates down, owners are facing higher costs to finance vessels, and operators are fighting much harder for cargo. Ship managers are now required to look after much more for the same management fees.”
Another still emphasised, “Due to the high financial costs involved in operating a newer world fleet, and to an over-supply of tonnage and depressed freight markets, there will be increasing pressure to maintain or freeze operating cost levels in order for owners to remain competitive. This is likely to change between 2017 and 2020, however, with significant capital expenditure required for regulatory compliance.”
One respondent predicted, “Crew costs will continue to be the main area of increased operating expenditure,” a sentiment echoed by another, who referenced the effect of the Maritime Labour Convention 2006 in this regard to support this supposition. Elsewhere, however, it was noted, “Crew costs will remain stable because the workforce will always be recruited from cheap countries.”
Staggering’ cost increases due to redundancy in electronic navigation and communication equipment, and increased port dues, were among other issues deemed by respondents in the survey to be likely to result in an increase in operating costs.
We also asked respondents to identify the three factors that were most likely to influence the level of vessel operating costs over the next 12 months. Overall, the most significant factors identified by respondents were finance costs at 22% (compared to 21% in last year’s survey) and competition also at 22% (up from 18% last time).
Crew supply was in third place with 17% (down 3 percentage points on last time), followed by demand trends (down by one percentage point to 16%) and labour costs, unchanged at 13%. The cost of raw materials was cited by 8% of respondents (compared to 10% in last year’s survey) as a factor that would account for an increase in operating costs.
Shipping partner Richard Greiner said:”The predicted increases in ship operating costs for this year and next compare to an average fall in 2014 of 0.8% in operating costs across all main ship types recorded in our recent OpCost report. Nevertheless, the level of increases anticipated for 2015 and 2016 are low in comparison with many we have witnessed in recent years. Shipping has seen much worse, and prevailed. For example, many of the companies which endured a 16% rise in operating costs in 2008 are still operating successfully today.
It is no surprise that crew wages feature near the top of the predicted operating cost increases for both 2015 and 2016, not least because of the entry into force of the Maritime Labour Convention 2006, which mandates the manner in which seafarers must be paid. For shipping, as for every industry, investment in good people will always be money well spent.
Expenditure on repairs and maintenance, meanwhile, is expected to increase over the two-year period by the same aggregate amount as crew wages. Again, this is not a surprise. According to OpCost, repairs and maintenance expenditure was marginally down in 2014 on the previous year, attributable in part to world steel prices dropping to their lowest level in a decade during 2014/2015 and to disappointing freight rates. But things are likely to change. Steel prices are predicted to rise steadily over the next four years, there are realistic prospects of an improvement in the freight markets, and regulatory requirements are set to bite even harder. All these developments are likely to increase the industry’s repair and maintenance bill and will doubtless impact, also, on drydocking costs, which are predicted to be the subject of some of the biggest increases in 2015 and 2016. Lube costs are also set to increase in 2016 on the back of recovering oil prices.
In addition to traditional operating costs, the level of which can generally be predicted to a certain degree, shipping has other potential costs hanging over its head which are more difficult to budget. For example, ratification of the Ballast Water Management Convention has seemingly stalled at the finish line. It has more than enough signatories, but still needs slightly more than an additional 2% in terms of tonnage to get itself on the books. Whilst the ratification is tardy, nobody doubts that it will cost owners and operators a lot of money once the convention enters into force.
The Manufacturers Association of Nigeria (MAN) has opposed the Nigerian Shippers’ Council bid to reintroduce the Cargo Tracking Note that was discarded by the Federal Government on the request of the operators within the Nigerian manufacturing sector in 2013.
MAN Director General, Remi Ogunmefun, said in a statement that the CTN, if reintroduced, will drive up the cost of cargo clearance at the nation’s ports and have a negative trickle-down effect on businesses.
The statement said, “In the interest of the manufacturing sector and the Nigerian economy, the Nigerian Shippers Council and by extension the Federal Government should jettison the reintroduction of the CTN as currently crafted until the issue of where the cost burden of its implementation will rest.”
According to him, despite weighty reservations expressed by manufacturers at different forum and at a special meeting with the management and Governing Board of NSC and a follow-up technical review session on August 11 and 20, 2015, respectively, NSC was bent on reintroducing the CTN.
“This position was reached based on observed limitations, and other yet to be addressed observed lapses that motivated the call for its cancellation few years ago. The rationale for our dissatisfaction was expressed at the afore-mentioned meetings and formally communicated in writing to the Executive Secretary of the Nigerian Shippers Council on September 15, 2015,” Ogunmefun said.
Consequently, he said that manufacturers recommended that NSC should convene a broader stakeholders’ forum that will afford all operators on the maritime value chain, especially those that would carry the cost burden of CTN to technically x-ray its proposal to reintroduce CTN and agree on a mutually beneficial implementation guideline.
He said, “The NSC is yet to address the concerns of manufacturers or those raised by other stakeholders, amend observed lapses, provide alternative remedies or convene a maritime stakeholder’s forum but has resorted to the pages of the newspaper expressing the plans to go ahead with the reintroduction.
“In consideration of all of above, necessity is laid on MAN as the voice of manufacturers in Nigeria to publicly express our dissatisfaction and objection to the reintroduction of CTN in any form as well as place balanced information in the public domain in the interest of the real sector and the Nigerian economy.
“However for avoidance of doubt, it is expedient to restate the position of MAN National Council as follows:
“That the limitations and technical lapses that rendered the CTN unacceptable to maritime stakeholders and real sector operators that led to its previous rejection are very much present in the ACTN (advanced cargo tracking note).
“That all the information required and data that the proposed ACTN intend to collate, as the basis for its reintroduction, are currently available within the domain of government, specifically Nigeria Customs Service single window platform, Standards Organization of Nigeria, Nigeria Port Authority, National Agency for Food and Drug Administration and Nigeria Maritime Management (Administration) and Safety Agency.
“That the reintroduction of ACTN for the purpose of providing information/data already available with other Government Ministries, Departments and Agencies would amount to mere duplication and at an enormous cost to the manufacturers, importers and other port users.
“That the ACTN implementation comes with associated cost that will further increase burden of exorbitant cost of doing business for manufacturers who rely on imports for raw materials and machines.
“This will automatically add to the already suffocating cost structure and renders locally made goods uncompetitive.”
Maersk Line is to cut 4,000 shoreside staff positions, and will not be exercising options on eight newbuildings as it seeks to cut costs in a difficult market.
The Danish container line said that it would be reducing its shoreside staff of 23,000 worldwide by some 4,000 by the end of 2017.
Maersk Line said it aimed to minimize redundancies through “managing natural attrition”, but gave no figures on expected numbers, although Soren Skou, CEO of Maersk Line did say in media call that natural attrition could be quite large in orgnanisation of their size.
He added lay-offs would be worldwide with the company present in 116 countries. “We are fewer people today than a year ago. We will be fewer next year and the following year. These decisions are not taken lightly, but they are necessary steps to transform our industry,” Skou said in a statement.
The company is aiming to cut its Sales, General & Administration (SG&A) cost run-rate by $250m over the next two years with increased standardization and digitalization.
According to Skou, most this reduction will come from reducing the number of people employed and a “bit of reduction” in IT costs.
Maersk also announced it would not be taking up options for six second generation 19,630 TEU newbuildings and two 3,600 TEU feeder vessels. It will also postpone the decision on eight optional 14,000 TEU vessels.
“We are basically reacting to the fact market demand is signficantly weaker than was forecast just six months ago,” he said.
Over the next four quarters Skou said Maersk’s overall capacity will decrease slightly. The line is also cancelling a further 35 sailings in the fourth quarter on top of previously announced capacity cuts.
Two weeks ago Maersk announced it was cutting its 2015 full year profit forecast for its container line from $2.2bn to around $1.6bn.
Shipments from Asia to the U.S. are reaching unprecedented levels, but the overcapacity of container vessels has sunk cargo fees, leaving shipping companies worried they might not profit from the uptick in activity.
“We like to think current shipping rates have hit bottom, but…,” said a frustrated executive of a major Japanese marine transport company. Spot fees for shipments from Asia to the U.S. East Coast stand at about $2,400 per 40-foot container, 40% less than a year earlier.
Shipments to the West Coast fetch around $1,400, down 30%. Both rates fall well below the shipping industry’s break-even line. Ocean freight rates have fallen to the lowest levels for the summer-fall demand season since current fee mechanisms were established in October 2009.
Container shipping volume between Asia and the U.S. rose 4% from a year earlier during January-September, on track to exceed the record for the whole of 2014, according to the Japan Maritime Center.
The organization says only freight from Asia to the U.S. has run counter to the downturn in global trends.
Cargo demand for garments and toys ahead of the U.S. holiday shopping season rises annually around the July-October period, and spot rates usually go up as well. That spot rates fell this year points to how freighters have overloaded shipping routes to the U.S.
For the lengthy maritime routes linking Asia with Europe, shipping companies this year have introduced more large vessels that can carry between 14,000 and 20,000 20-foot containers. However, shipments to Europe have weakened, leaving spaces on those massive carriers unfilled.
With the supply balance skewed, spot rates between Asia and Europe have plummeted to historic lows since spring. As routes were cut or suspended, companies decided to direct some of the European-bound ships to the U.S. East Coast instead, according to Japanese marine transporter Kawasaki Kisen Kaisha.
The average carrying capacity of containerships heading from Asia to the U.S. East Coast is around 5,700 containers, while vessels bound for Europe can carry an average of 11,500 containers, says shipping company Nippon Yusen. The addition of the superfreighters to U.S. shipping lanes threw off the previously stable supply balance.
European and Japanese shipping firms are raising spot rates for U.S. routes, but the move is not having much of an effect.
Containerships face three more years of overcapacity, said British industry research firm Drewry in a report released in the beginning of October.
President Muhammadu Buhari has approved the continuation of efforts by the National Boundary Commission (NBC) to significantly expand the nation’s maritime boundaries.
According to a statement by his Senior Special Assistant on Media and Publicity, Garba Shehu, the President gave the approval after he was briefed by the commission’s Director-General, Dr. Muhammad Ahmad, on the preparations for a submission by Nigeria to the United Nations Commission on the Limits of the Continental Shelf.
Shehu also said that Buhari had approved the constitution of a presidential committee to oversee the conclusion of work on the submission, which could lead to the expansion of Nigeria’s maritime boundaries from 200 nautical miles to 350 nautical miles if approved by the CLCS.
He said the President had also directed the Ministry of Finance to provide the funds required to conduct the geographical surveys, which are essential for the submission.
According to Article 76 of the United Nations Convention on the Law of the Sea, the continental shelf of a coastal state comprises the seabed and the sub-soil of the submarine areas that extend beyond its territorial sea throughout the natural prolongation of its land territory to the outer edge of the continental margin, or to a distance of 200 nautical miles from the baseline from which the breath of the territorial sea is measured, where the outer edge of the continental margin does not extend up to that distance.
A sovereign coastal state like Nigeria can extend its maritime territory beyond 200 nautical miles, up to a maximum of 350 nautical miles, if it can prove scientifically that the natural prolongation of its land territory under the sea extends beyond 200 nautical miles.
The objective of the submission being prepared by the National Boundary Commission is to claim for the country a potentially rich maritime territory of up to 104,000 square miles without any war or litigation.
There is a strong likelihood of the presence of large deposits of hydrocarbons, gas and other mineral deposits in the extended maritime territory.
Speaking with State House correspondents at the end of the presentation to the President, Ahmad said the continental shelf project was meant to gain for Nigeria additional maritime territory of 104,000 kilometres.
He said, “The Nigeria Extended Continental Shelf Project is a project that intends to gain for Nigeria additional maritime territory of up to 104,000 kilometres, which is about one third of the land area of the Federal Republic.
“ We explained to him (Buhari) the progress of the project and its challenges. The President was positive and he has given us a marching order to go ahead and work seriously to ensure that Nigeria succeeds in the venture.”
Ahmad stated that the shelf’s extension would enable Nigeria to explore and exploit its seabed resources to enhance the country’s economy and facilitate peace and security in the Gulf of Guinea.
Oilserv Limited is an Oil and Gas Engineering and Construction company incorporated in 1992 with the mission to provide Engineering, Procurement, Construction, Installation, Commissioning and Maintenance Services to Power, Oil & Gas companies / industries. Oilserv is a vision conceived and developed by Engr. Emeka Okwuosa at a time when indigenous participation in the technical area of Oil and Gas industry was a novelty and in some cases non-existent.
Emeka Okwuosa remains the Chairman / Chief Executive Officer and has pooled the expertise of highly experienced Engineers, Technicians and other support personnel to provide Total Quality Service (TQS) to her valued customers in the Oil and Gas Industry operating both on land and in swamp. We have since extended our services to offshore.
Oilserv Limited has proven its strength in Oil and Gas Pipeline, Oil and Gas Flow Line, Oil and Gas Facilities as well as in Gas Turbine Power Generation areas. Activities in these areas cover Engineering, Construction, Repairs, Installation, Commissioning, Maintenance, Fabrication, Procurement and Project Management.
Oilserv Group comprises of; Oilserv Limited, Frazimex Engineering, FrazPower Limited, FrazOil E&P Limited, Ekcel Farms Limited and Crown Energy Resources Limited.
Oilserv Limited is ISO 9001:2000 certified, compliant to Nigerian Content Law, OHSAS 18001, ISO 14001 and ISO 260000 (CSR)
AREAS OF EXPERTISE
Our main areas of services on Land, Swamp and Offshore locations are as follows:
*EPC of Oil & Gas Pipelines/Facilities, including Gas Metering Stations, Flow Stations, Pigging Stations, Pressure *Reduction Metering Stations (PRMS), Line Break valve Stations (LBV’s), Manifold Stations, etc.
*EPC of Flow lines
*Oil & gas Pipeline & Flowline Upgrade, Repairs, Maintenance and Rehabilitation
*Oil & Gas Facilities Upgrade , Repairs, maintenance and Rehabilitation
*EPC of gas Fired Power Plants and associated facilities.
*Mechanical and Structural Fabrication
*Process Piping, including Hook-up and Tie-in works
*Associated Electrical/Instrumentation and telecommunication works
*EPC of Crude Oil/Product Storage Tanks including Maintenance, Repairs, Upgrade and Rehabilitation (Horizontal, *Vertical and Underground Storage Tanks)
*Foreign and Local Procurement/Supply of associated Materials and Equipment
*Non Oil & Gas Facilities Upgrade, Maintenance, Repairs and Rehabilitation
*Construction and Installation of Cathodic protection Systems
*De-Oiling/De-Watering
*EPC of Gas processing/stripping facilities
*Project management Services
Our Detailed Design and Front End Engineering (FEED) support is provided by our member company Frazimex Engineering Limited. Our strong determination in providing new definition to the Local Content initiatives has not only helped in putting us on the fore front of our local contemporaries but has also provided reasons for us to enhance our resource base in order to meet the status of the multinationals.
Oilserv currently has staff strength of 500 well trained staff, out of which about 25 are at management level. It is noteworthy to note that the entire staff strength is Nigerian.
With emphasis on HSE-CA, Quality Control and Quality Assurance (QA/QC), we have successfully completed and delivered several Gas Pipeline Construction/associated Facilities and Maintenance Contracts for Clients such as SPDC, NAOC, OANDO GAS AND POWER (GASLINK NIG. LTD., AKUTE POWER LTD., EAST HORIZON GAS COMPANY LTD.), TOTAL E&P NIG. LTD., GLOBAL GAS AND REFINING LIMITED, NGC, NLNG, NOTORE, GEOMETRIC POWER ABA LIMITED (GPAL), UMUGINI ASSET COMPANY LTD. (UACL) AND SEPTA ENERGY LIMITED whiles our contracts with NNPC, OANDO GAS AND POWER (GASLINK NIG. LIMITED), TOTAL E&P NIGERIA LIMITED and NLNG are still on-going.
Our goal is to deliver services to our Clients according to international Standard, Codes and Specifications, while the Health, Safety, Environment and Security concerns of our Personnel and that of our host and impacted communities and stakeholders within our areas of Operations are guaranteed.
Oilserv has undertaken numerous high profile projects since inception. Some key ones are:
Construction, Testing and Commissioning of 37.8KM X 24- INCH Oron Gas transmission pipeline system, including the associated pigging facilities. The gas transmission pipeline system transverses across diverse terrains and landmarks ranging from Rain forest, mangrove, Table land, valleys, Hill, Swamp and seasonal Swampy areas for SEPTA ENERGY LIMITED.
EPC of NIPP LOT 1 Gas transmission Pipeline system covering 16-inch and 18-inch respectively including Construction and Installation of Gas Metering station, Earth and associated Civil works for NIGER DELTA POWER HOLDING COMPANY LIMITED (NDPHC).
EPC of NIPP LOT 2 Gas transmission Pipeline system covering 18-inch for Egbema in Imo State, including Construction and Installation of Gas Metering Station Equipment/Facilities, Earth and associated Civil works for the Niger Delta Power Holding Company Limited (NDPHC).
Construction, Installation, Testing and Commissioning of 51.4km x 12-inch Crude Oil Pipeline system, including other associated facilities for UMUGINI ASSET COMPANY LIMITED (UACL)
EPC of 27km x 12-inch Gas transmission Pipeline system including Construction and Installation of Gas Metering Station Equipment/Facilities, Earth and associated civil works for GEOMETRIC POWER ABA LIMITED (GPAL).
EPC of Oando 128km x 18-inch South-South Gas transmission Pipeline system, including the City Gate, PRMS, Earth and associated Civil works for EAST HORIZON GAS COMPANY LIMITED, subsidiary of OANDO GAS and POWER.
Fabrication, construction and installation of 36-inch TNP Oil Manifold at Ebubu, Eleme for SPDC. This project is the largest Manifold Station for SPDC in Nigeria and was completed in 2001 with very challenging community problems.
Leak repair of 28-inch pipeline in the swamp for SPDC, which involved the construction of 76m long cofferdam and hot tap. This project, among many of its kind already completed for SPDC in the past 9 years, was done at a record time under very difficult terrain and community challenges.
EPC and Maintenance of a total of 120km of 8-inch, 12-inch and 16-inch and 18-inch gas distribution pipelines in Lagos and Ikeja for GASLINK (a division of OANDO). We are currently commissioning the last phase of NPA Gate to Amuwo Odofin 12-inch line.
Rehabilitation of 21 nos (300,000 barrels to 600,000 barrels) crude oil storage tank in Bonny Island for SPDC. This project involves total redesign and rebuilding of the foundation, jack up of the tank, replacement of the bottom plates, redesign and replacement of the floating roofs and re-commissioning.
Construction of 15km X 12-inch and 15km X 4-inch oil pipeline from Elelenwa West to Agbada for SPDC.
Construction of 30km X 6-inch gas liquids swamp pipeline from Cawthorne Channel to Bonny River for GLOBAL GAS AND REFINING LIMITED. This project incorporates 4 major river crossings.
Various Emergency leak Repair projects for NLNG in swamp and on land, covering pipeline sizes from 12 inches to 36 inches.
Various Emergency leak Repair projects for NAOC in swamp and on land, covering pipeline sizes from 12 inches to 36 inches.
Construction and Commissioning of Greater Lagos Phase 3 Gas distribution pipeline system for GASLINK NIGERIA LIMITED, subsidiary of Oando Gas and Power. This covers 12 inch and 18 inch lines from Ikeja to Ojota, to Anthony, to Iganmu (NB Plc), to NPA gate, to Tin can and then to Amuwo Odofin.
EPC for 12MW Gas turbine Power Plant and 12 km 12 inch pipeline and facilities for AKUTE POWER LIMITED, subsidiary of Oando Gas and Power to supply power to Lagos State Iju Water Works.
SPDC Emergency Pipeline Repairs covering the entire SPDC pipelines in Eastern Swamp and Land. Oilserv has been executing similar works for SPDC since 1999 continuously (we are in the third contract since then).
EPC for the provision of 250mmscfd Pressure Reduction Metering System (PRMS) for Gas supply to Niger Delta Power Holding Company (NDPHC) Turbine Plant at Alaoji for the Nigerian Gas Company Limited, subsidiary of NNPC
Currently we are executing the following contracts:
EPC of Obiafu/Obrikom to Oben Node (OB3) Gas Transmission Pipeline System LOT B (67km x 48-inch), including the Engineering design of the entire Gas transmission System 130km x 48 inch and the associated Gas treatment Plant (GTP), for the Nigerian National Petroleum Corporation (NNPC). It is worthy to note that this Gas transmission Pipeline system is the biggest Gas Pipeline system ever to be built in Nigeria and Africa.
Construction of Greater Lagos PHASE IV Gas Distribution Network System covering a total of 8.2km x 12-inch Gas transmission pipeline with the Design capacity of 45mmscf/d and operating capacity of 30mmscf/d.
Contract for Onshore Emergency Pipeline Repair Services (EPRS) for Total E&P Nigeria Limited and NLNG
Our future plan is to continue developing these services in a way that shall make us remain the premiere Company in our areas of operation while continuing to expand our services to African Countries ( viz: Republic of Benin, Uganda and Kenya) including the Gulf of Guinea.
FMC Technologies has facilitated more than 70,000 hoursover the past two years in employee education and training. (coutesy: FMC Technologies Nigeria)
In the last 55 years since exploration activities started in the country, Nigeria has made tremendous progress in the oil and gas industry. The progress made so far is despite the challenges in the sector. From a humble 5, 100 barrels per day (bpd) in 1958, its current production stands at over two million bpd – making the country the leader in hydrocarbon development and remains the oil and gas hub in the Gulf of Guinea.
The oil and gas industry hitherto controlled by foreigners has gradually started to shift position. Indigenous firms and operators are increasingly participating in exploration and production (E&P) and in the service sector.
The divestment of oil blocks by the multinational oil firms such as Shell and Chevron, and the marginal field policy boosted local players’ equity in the E&P sector substantially. Indigenous stakes in the upstream are growing; the service sector is reasonably controlled by the locals, which is a development that should be encouraged.
Over the past five decades, about 20 oil fields have been divested by the international oil companies (IOCs), some marginal fields have been re-streamed, and this has enhanced the contribution of indigenous firms to the nation’s total daily oil production, rising from zero to about 20 per cent now. In the downstream, over 95 per cent of the sector is controlled by Nigerians.
The birth of the Nigerian Oil and Gas Industry Content, NOGIC Act, about 5 years ago heralded the increased participation of Nigerians in the oil and gas industry. The Act came into force with the sole objectives to not only encouraging the participation of more Nigerians in the petroleum industry, but also increasing the contribution of the industry to the nation’s gross domestic product, GDP. Prior to introduction of the Local Content Policy in the oil and gas industry by the administration of former President Olusegun Obasanjo, the absence of local capacity in the industry had resulted in repatriation of about 90 per cent of the $12billion yearly industry spending abroad, with its adverse effects on job creation and the growth of the economy.
This stems from the fact that the wider scope of the industry’s lucrative jobs was performed in foreign fabrication yards; while expatriate workforce dominated local strategic positions in the industry. Paucity of fund, absence of in-country capacity and inadequate manpower were identified as factors that denied the country the full benefits of her petroleum resources as only few indigenous facilities and manpower were involved in the oil and gas industry.
While indigenous facilities and manpower were yearning for oil and gas industry jobs, foreign yards were flooded with jobs that ought to benefit Nigerians and the country’s economy.
Even the attempt by the administration of Obasanjo to halt this trend by introducing the local content policy in 2003 to compel the foreign operators in the industry to domicile certain percentage of their jobs in-country recorded very minimal success because of absence of legislation to drive the policy.
The Obasanjo’s administration had positioned the country to attain a local content target of 70 per cent by 2010 but only less than 10 per cent was achieved because mere persuasion adopted under the policy could not influence the International Oil Companies (IOCs) to key into the initiative.
To drive the policy, the then Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Funsho Kupolokun appointed the pioneer Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) as the pioneer Nigerian Content Coordinator in 2004.
Upon his appointment, Engr. Ernest Nwapa successfully confronted the enormous challenge of translating volumes of recommendations by the various stakeholders in the industry into a comprehensive, implementable policy document.
This document, which was submitted to the Obasanjo administration in February 2005, provided the framework for the creation of the Nigerian Content Development (NCD) within the NNPC in March 2005 to oversee the implementation of the local content policy.
The implementation of the Nigerian Content remained under the NNPC until the Local Content Bill put together by Obasanjo’s administration through the works of the NCD was signed into law as Nigerian Oil and Gas Industry Content Development (NOGICD) Act by President Goodluck Jonathan on April 22, 2010.
The NOGICD Act of 2010 created the Nigerian Content Development and Monitoring Board (NCDMB), thus relieving the NNPC’s NCD of the task of implementing the Nigerian Content.
Since the Act, popularly referred to as the Nigerian Content Act was signed, the industry has recorded massive inflow of Foreign Direct Investment (FDI) and unprecedented boost in the development of local capacity and capability.
The Act was a bold response to the low participation of indigenous facilities and manpower in the oil and gas industry and since it was enacted with a visionary and dynamic agency, the Nwapa-led NCDMB driving its implementation, there has been a systematic but gradual reversal of this trend.
Today, many indigenous professionals are increasingly building capacity and proving their mettle in the execution of major projects, while an increasing number of multinational players have also been compelled by the legislation to domicile certain scope of their operations in-country.
With Nigerians developing competence in jobs that were the exclusive preserve of expatriates before the legislation was put in place, the scope of oil and gas industry jobs, which were executed outside the shores of Nigeria, are now being performed by Nigerians and in Nigeria.
In the area of exploration and exploitation of hydrocarbons, Nigerian independent exploration and production (E &P) companies, which were restricted to marginal assets before the Act was enacted, now have access to larger acreages, due to the divestment of onshore assets by the IOCs to boost indigenous participation in the industry.
These efforts have led to the retention of a large chunk of the industry expenditure in- country, with the attendant positive impact on employment generation and growth of Gross Domestic Product (GDP).
Breaking New Grounds
Engr. Emeka Ene, Chairman, PETAN
According to the Petroleum Technology Association of Nigeria, PETAN, Nigerian companies have actually derived unique solutions to solve trying problems, especially in the deepwater. Engr. Emeka Ene, Chairman, PETAN, “Right now the world’s longest fibre security project is being done by a Nigerian company. It is the longest installation of such a solution.
It is a Nigerian company that is doing it not a multinational, not a foreign company “Nigerians indeed have the capacity to think through, and what is happening is that most of the research and development costs are usually funded from activity. As for that, we will follow and that is already happening.”
The PETAN boss also believes that Nigerians are unique when compared with other oil producing countries.
“Nigeria and Nigerians in the oil and gas industry are unique. They are unique in the sense that we’ve had the fastest growth in terms of hands on ability to deliver services. There are local content models across the Middle East, but the local content models are simply an agency-type model. So once you set up an agency you can do business.
“However, in our own situation we have Nigerians who have made and are prepared to make investments to grow technical service companies from ground up. That is a significant difference because what we now see is that some Nigerian companies are already able to export these capability outside Nigeria.
“There is a Nigerian company in Houston providing computer services to clients there. It is a Nigerian company that started from here and evolved over there. We have Nigerian companies who are working in Mauritania offshore FPSO’s. We also have Nigerians who are drilling in Congo.
‘We have Nigerians who are offering services offshore Angola. We have Nigerians who are doing business in Yemen, in Saudi Arabia, in Oman. “These are service companies that started in Nigeria and exported their business. In that respect, Nigeria is unique. In all of Africa, it is difficult to find the kind of momentum of Nigerian entrepreneurs or technocrats in the oil and gas industry. It just does not exist.
Our experience is partly because we have the population, partly because we have the drive, also partly because by unique combination of historical facts we have had a large population of Diaspora – Nigerians who have the experience both internal and external and are ready to take the risk involved in setting up their businesses, so in that regard Nigerians are pretty much ahead and I think the industry recognises that,” he said.
Ene also believes that indigenous participation in the nation’s oil and gas industry is evolving. “What we are seeing is that there has been an evolution of indigenous technology in the industry. In terms of breakthroughs we have some of our companies manufacture pegs for pegging pipelines. One of our members builds platforms. One of our members manufactures electronic control panels for deepwater, shallow water control panels for FPSO’s.
“One of our members just built a deepwater theatre for training safety professionals. It is the only one in Africa. This is just a few examples of some of the things you are going to see at the offshore technology conference, OTC, in terms of the technology profile of Nigerian companies that are constantly growing from year to year,” he said.
Enhancing Industrial Growth
Mr. Scott Aitken, Chief Executive Officer, CEO, Atlantic Energy, also believes that indigenous participation is critical to the growth of the nation’s oil and gas industry.
He noted that there are yet untapped potential that indigenous companies can take advantage of to push up the country’s production in the petroleum sector.
According to him, indigenous players will not only boost production, they can also provide the much needed gas to boost power generation. He said for a nation that wants to develop its economy, it must pay more attention to the activities of indigenous oil producers by providing them with enabling environment to operate.
The Atlantic Energy boss is of the view that the role of indigenous producers cannot be overemphasized in the nation’s development, and reiterates that there are Nigerian solutions to every challenge that faces the nation. He cites gas flared or compressed as LNG for export as possible areas where indigenous potential could be harnessed, saying that as indigenous producers, they needed to capture the gas, transport it safely and economically to the domestic market for highly effective and reliable power.
On the issue of funding which is one of the major problems facing the industry, Aiken was of the view that fast-tracking solutions to deliver early results will further help provide the funds required for development, thereby reducing the over-reliance on bank loans.
Mr. Ayodele Oni, an energy law and policy expert and senior associate, Banwo & Ighodalo, a Lagos based law firm, said that in the last four years, there has been improvement in the participation of indigenous companies in the oil industry due to the implementation of the Nigerian Content Act.
“After four years, there have been modest achievements and an improvement in the overall Nigerian value addition to the oil and gas industry and certain Nigerian engineering and oil service companies have benefitted from it, as there has been an increase in the volume of in-country fabrication,” he said.
He explained that the first deepwater simulation theatre (DST) in Africa located in Port Harcourt, and commissioned in April, which was built by an indigenous oil servicing company, Tolmann Allied Services Company Ltd, lends credence to the evolving indigenous technology in the industry.
E & P Exploits
The Nigerian oil industry, which has been dominated by the IOCs in areas such as exploration and production, has seen Nigerian companies now owning more than 100 blocks across oil-producing regions in the country, and at least 30 marginal fields.
By the end of this year, the major divestments by IOCs since 2010, would have transferred about 5 billion barrels of oil and 20 trillion cubic feet (Tcf) of gas to indigenous players, said Austin Avuru, managing director, Seplat Petroleum Development Company.
“The Nigerian Content Act has done so well in the last four years as many Nigerians now play active roles in the oil industry,” Tunde Adelana, Director, monitoring and evaluation, Nigeria Content Development and Monitoring Board (NCDMB) said.
“We are seeing fabrication projects, pressure vessels being built by Nigerian companies,” he said, adding that the NCDMB was working very hard to put in place formidable processes to help detect non-compliance and abuses.
Effective competition
Emeka Okwuosa, CEO Oilserv Nig. Ltd
For Emeka Okwuosa, Managing Director of Oilserv, indigenous companies have come of age and are competing favourably with their foreign counterparts. “Indigenous companies are now taking control of lucrative pipeline construction projects.
The competition is now between indigenous companies and their foreign counterparts.
For instance, the East-West Gas Pipeline project awarded to Oilserv was made possible because of the steady investment in capacity building, and the insistence of the Minister of Petroleum Resources that indigenous companies must be accorded due recognition in line with the Nigerian Content Act,” he said.
Developing Local Technology
On the possibility of Nigerians sustaining indigenous technology that can stand them out in the industry, Mr. Barry Esimone, President of Crusteam, an energy and infrastructure group, believes that Nigerians can adopt a few and indigenise them.
“We can struggle to adopt a few and indigenise them especially in the area of process or drilling material technology. In doing this, we can beneficiate the local material to meet the requirement properties/ characteristics and can then patent such formula if it brings cost or efficiency advantage over imported ones.
The Raw Material Research Institute has been working on this area and may provide our niche in the industry,” he said.
Esimone also believes that technology development starts from Universities and are refined in research institutes. He however said that government should encourage the establishment of low technology based industries to accommodate the participation of the locals in the industry.
PIC.34. MEMBERS OF HOUSE OF REPRESENTATIVES AT A SPECIAL SITTING TO MARK END OF THE 2ND YEAR
OF THE 7TH ASSEMBLY IN ABUJA ON THURSDAY (6/6/13).
The House of Representatives recently mandated its Committee on Power to investigate alleged approval of N2.7 billion severance package to members of the board of Nigeria Electricity Regulatory Commission (NERC).
This emanated from a motion under matter of urgent public importance, sponsored by Rep. Mohammed Gololo (Bauchi-APC).
In the motion, Gololo described the board’s approval of the payment of such package as unconstitutional, saying that it was not authorised by the National Assembly in the 2015 Appropriation Act.
He added that the planned payment conflicted with the recommendations of the National Salaries, Incomes and Wages Commission.
He argued that the approval also offended section 42 (1) (a) and (b) of the Electric Power Sector Reform Act, adding that NERC had no recurrent expenditure in the 2015 budget.
“This suggests that the commission either does not pay any salaries to its board members and staff or pay salaries from funds that have not been paid into the Consolidated Revenue Fund of the Federation,’’ Gogolo said.
The motion was unanimously adopted by the lawmakers, and was referred to the Committee on Power for investigation.
