DAVIS, California – FMC Technologies has delivered its seventh UHD-III ROV to C-Innovation. The eighth UHD-III is scheduled for delivery in October 2015.
In addition to the new ROVs, FMC Technologies Schilling Robotics will upgrade all of C-Innovation first-generation UHD ROVs to increase efficiency, horsepower, reliability, and automated features. The work is scheduled to be done over the next 18 months. FMC Technologies Schilling Robotics has delivered the first of two new UHD-111 ROVs to C-Innovation. (Photo courtesy FMC Technologies)
ABERDEEN, UK – The Faroese Earth and Energy Directorate (Jardfeingi) is looking to rekindle interest in exploration offshore the Faroe Islands.
In May, the Faroese government announced it would open the islands’ 4th Licensing Round in 2017. Currently the same areas offered under the previous rounds – east and south of the islands – are likely to be made available, although this has yet to be rubber-stamped.
Of the nine wells drilled to date offshore the islands, most have been relatively close to the various discoveries west of Shetland in UK waters. Six have encountered oil or gas in varying degrees: although none have so far proven to be commercial, the results have confirmed that an active hydrocarbon system is present, said Jardfeingi director Petur Joensen.
The most promising result to date remains Amerada Hess’ Marjun oil discovery from 2001 which is deemed a technical discovery. DONG Energy, the current license holder, has an ongoing program to reappraise Marjun, Joensen said.
Among the other wells, Eni’s on the Annemarie structure intersected 400 m (1,312 ft) gross of gas within three intervals, but no reservoir, while the Svinoy well drilled in 2001-3 encountered light oil.
However, the disappointing results and the high costs of drilling in the region have caused most of the participants to relinquish their acreage, notably Statoil and ExxonMobil.
Statoil’s last well, on the deepwater Brugdan structure, was also the most northerly off the islands to date. It had to be suspended for the winter season, and following re-entry, the partners opted to terminate operations prior to reaching the target after struggling to drill through hard rock and shales underneath.
One of the main problems in this part of the North Atlantic is the widespread layer of basalt and the difficulties in imaging below this level. Imaging techniques have improved, but there is still a long way to go, Joensen admitted.
In 2013, Chevron’s Lagavulin well, drilled in more than 1,500 m (4,921 ft) of water on the UK side, was abandoned after encountering oil but no workable reservoir system – and a huge expanse of basalt.
However, some geophysical contractors remain interested in clarifying the region’s prospectivity. According to Malan Ellefsen, a geologist at the Faroese Ministry of Trade and Industry, there have been talks with Spectrum on processing some of the existing 2D offshore data and integrating that into a 3D grid. Dolphin is also considering a new initiative.
Schlumberger’s most recent 2D survey in the region was mostly on the UK side, although one line extended into Faroese waters. Resultant data was apparently of good quality, and the company is thought to be confident that its imaging techniques have developed to the extent that it can now detect seals and the base of the basalt.
Earlier studies off the Faroes revealed the presence of numerous other large structures, Joensen added, “which we think should be investigated in more detail.”
Mr. Wole Adefilais the Operations Director, Frontier Oil Limited. He started his career as a Seismologist while working with a number of international seismic acquisition companies like Shell. He spoke with Margaret Nongo-Okojokwuat the end of a facility tour to the company’s oil and gas fields in Eket, Akwa-Ibom State, on the impact of crude oil prices on marginal field operation and more. Excerpts…
Mr. Wole Adefila
A lot of people got licenses to operate marginal fields in Nigeria but not all of them are producing, some are not even operational right now. I’ll like you to tell us your experience so far as a Marginal field operator and what advice you would give to other operators who have not been able to come up or achieve as much as you have?
We got this field through a competitive bid in 2003; of course the journey has not been very easy. We didn’t start any appreciable development until 2005, effectively 2006/2008, and the reason is that as old field that has been abandoned by Shell for a long time, we had no information, if anything, minimal information about the field. So the first thing we had to do is to go back to Shell to collect as much information as we could from Shell and being an old field with the first well drilled in 1958, there was no real information about the field. What we did if I can recall in 2005, I championed collecting those data from Shell especially seismic data, and meter was not relatively useful, and we had to bring in Schlumberger to reprocess that data for us but of course we really couldn’t do much with the data and so we had to take a strong decision to come out to the field and acquire our own 3-D seismic data by ourselves in 2006/2007. Of course, some other companies were luckier than us in the sense that they had existing wells which were producing so they could just go out there and start pumping the crude and sell but we didn’t have that opportunity, it was a tough one that we got 3-D seismic data which we processed and from there we drilled 2 wells.
For marginal companies like us, it is always a tough one; it is always very difficult at the beginning. With all due respect, we know that most of the companies that won the bid in that round, I correct myself I won’t say most, some of them actually had no inkling about oil business, they didn’t, and that is why we read in the papers that some of these things were sold off then, and that is why most of these companies are not able to come on stream to live as we are living today. First you need people who understand the business, not only understanding, you need full commitment by the owners of that business. If I use Frontier for example, of course we have quite experienced number of people on the Frontier board who have been in the business, some of them for more than 40 years, and we were lucky also that they were very committed.
You can imagine people who used their lively savings to pay for these fields. And then, this is 2015, 14 years down the line we are still not making profits, it is not easy in Nigeria to find people like that who will put in their money and not withstanding that they are not making profits they are still committed to improving the business, most of them are old, most of the board members are actually very old and nothing stops them to have sold off these fields, make their money and then enjoy their money in the Caribbean’s. But they have been committed so it is not the usual buy and selling stuff, you want to sell this today, you want to make your profit the following day in lips – No, so that is why the commitment comes in. If they don’t have the interest and the commitment I don’t think we will be here today.
When you look at it we started this company with Engr. Dada Thomas and myself, just the 2 of us in 2005 when serious business started and of course, when we moved to Eket in 2006, it was myself, a driver and a youth Corp member, but I can tell you today we have senior staff at the range of 95, and if we have now put everybody together we are looking at about 150 staff, and those board members are still not making money, because we are not making profit but they stood by us all the way. Throughout 2008, this company did nothing, we were just coming to this office to come and close and do little things, why because we didn’t have fund, and that is another important thing – funding – it is a very important and a key aspect in developing marginal fields, if you don’t have the fund to do it of course you cannot come up to where we are today. That is the challenge of funding; we had our own challenge too, for instance in 2008 that we did nothing, it was all because we had no funds.
So for the up and coming marginal field operators we need that commitment from management, and like I said earlier on we need sound expertise, people who understands the business, commitment in the sense that you don’t just want to make your profit tomorrow. So those are the major things – the commitment, expertise and then you need funding. And if the fund is there then the management of that fund is very important because if you don’t manage your fund properly then of course it doesn’t take much to filter away.
This Central processing plant has achieved one year of production after being commissioned by former President Goodluck Jonathan, what has it achieved so far and what has been your challenges?
We started operating that plant before the commissioning, we are proud to tell you that this is the first of its kind in Sub-Sahara Africa that will be operated by an indigenous company; I think the only companies that can beat us to it are the IOCs are the likes of Shell, Agip and the rest of them. If I tell you it’s been easy, it is not; but with the doggedness and commitment of Frontier’s management we have been able to ride the rough waters and we are here today, even though we are not making money, but we are proud of what we have achieved so far because we have contributed immensely at least to improve power supply in the country.
In terms of operating the plant, we are also proud to tell the whole world that yes, we have very experienced hands and what we have done in this case is to prove to the whole world that Nigerians can manage complicated processes like this in the oil and gas industry, when you went out there yesterday did you see any expatriates? No, in Frontier we don’t have a single expatriate, we are all Nigerians and that is one step we have taken to prove to the whole world and Nigerians too, that yes, when properly sourced, Nigerians are capable of delivering good and effective results from plants like this and that is what we have done. So through that plant we have managed to improve the local content, bring our people together to also develop them, because we are sure that if we have another asset today of course we have the capacity to also develop that asset from within us. It has not been an easy journey but I think we have done quite pretty well as a local company.
Ok, just a follow up on that question, for me this is the first time am seeing two indigenous companies coming together – Frontier Oil and Seven Energy for a JV of this magnitude and achieving this kind of feat, I want you to tell us about going into Joint ventures with an indigenous company and then the FUN (Frontier, Universal and Network) group also. How has that been for you?
What makes a joint venture works? If you have – let’s keep it simple, if you have just two partners, first there must be mutual trust and respect between the two parties once that is established it will be easier to get other things done. Once the two parties are also able to fulfill their obligations, for example, if Seven Energy is able to fulfill its obligation as the funding partner and it’s the meeting cash call requirement as at when do, then you expect that joint venture to succeed, but if Seven Energy have difficulties in sourcing for fund then of course it becomes difficult. Funding is important but what is much more important is mutual trust and respect, the two bodies must be able to work collaboratively because it is a symbiotic relationship. If one party keeps to his own agreement and the other doesn’t, the JV will definitely fail if it is not carefully handled. Once you have that mutual respect, truth and proper funding, and of course you have personnel that are well trained and are committed to giving out their best, you will definitely get the best out of that JV.
Having gone through all these difficulties in handling your marginal field and all that, given another opportunity, would you take up another marginal field?
We are ready to, but we don’t want to be a one asset company, we are looking at taking up other fields available and we are really working towards that. It’s not just taking up other assets on our own, we know that there are other assets that has not been developed probably because the owner doesn’t may be have the expertise, we are ready to partner such bodies in a joint venture to provide the technical capability which we know we are having now to help them develop that field and make the best out of them.
Does this mean that Frontier Energy will go into joint ventures as an operator? And going with the operation of the local plant and what you have said, how long does it take before you see a break-even period, that is if for instance someone wants to come into the gas industry and wants to take a clue from you; how long should they be looking at before they break-even?
That is a very fluid word, you can’t put a figure to it because there are a number of factors that can control that, and how long do you think you can breakeven? A number of factors – when you start from the operations, you as the operator of that field, let’s assume you have done your own job well and your field is producing like we are doing now; the question is ‘do we have the customers, if we take the Nigerian environment for example, ‘do we have enough customers to take the gas off us? Of course, if you do not have enough customers you cannot make money to pay your bills, to pay your credits and then breakeven quickly. Am sure when you went out yesterday you saw that we still have enough space to expand that plant even to the fourth train, that is only possible if we have off-takers – customers, and not only off takers, the pricing too is very important. If the gas pricing is not right, of course it takes you a longer period to break even, and with what is happening in Nigerian now, I won’t say we have enough consumers, right now the focus is on power generation but we need a lot more than that, we need industries that can actually take a lot more of this gas to power their machineries, how much of that we have I can’t give you any figure but we need more than power generating companies to take our gas, with that we can make more money. If we have them like we have in the middle-east, off course we can expand the plant to as many as 6 trench or 10 depending on the demand. So if the demand is there and the pricing is right, of course you breakeven quickly. But if you don’t have the off takers and the pricing is poor, it will take you quite a long time to breakeven, so it is a combination of a number of factors, so if i tell you ‘you can breakeven in 2 to 5 years but you need to take all those factors into consideration.
On your second question, of course I told you that Frontier Oil Limited is looking for additional opportunities, we don’t want to be a one asset company so if you have other assets that we can operate on our own, manage on our own, then of course as Frontier we are ready to do that and we are working towards that. However, if there are owners of other marginal fields like our own but are unable to develop it on their own we have the expertise to partner with them and help develop those fields, in that case we will be the operator, so we are ready to do that and we are looking forward to that.
How is your equity partnership structure like?
You mean in Uquo?
Yes
Of course we are the operators of that field, Frontier own 60 percent equity while Seven Energy has 40 percent.
Oil price has been dropping from less than 100 dollars to less than 40 dollars as at Tuesday this week and the gas pricing is not becoming too friendly to indigenous operators; how has this situation affected your operations?
Well, oil price, gas price, maybe we are lucky now that we are not fully into oil even though that we need it, like I said that we need the oil but what has happened now has not affected the gas price as such, so our gas price still remain as it is; remember that the gas business is not like the oil where you wake up today and you say that tomorrow and one week down the line the price drops, in gas business you have an agreement with your customers that lasts for 10 to 15 and sometimes 20 years. As at when you have that agreement the price is fixed so you don’t expect any change except if the 2 parties come together to say ‘let’s take it up or bring it down,’ otherwise I don’t see any change. The oil price has gone down but that has not affected the gas price as such.
What about its effect on your operations?
Of course it has affected us, I will give you an example; the operation is not only based on the gas price, there are other things we do that are affected by the fluctuating oil price, we have been affected and we are still being affected; for instance, last year our budget for this year was premised on 80 – 100 dollars per barrel and here we are today, we are looking at 40 dollars. The question is how ‘do you manage your budget and operation that was based on 80/100 dollars by the reality of the day of less than 40 dollars’? It becomes very difficult but what we have to do is to re-jiggle and do those activities that are a must and of course we have to drop some because the money is not there, the fund is not there to manage them, so we have been affected not only internally but the oil drop also has affected us in our relationship with our service providers, because you know funding is not easy now because of the oil price drop, we are having difficulties meeting up with agreements in terms of payments to our contractors and that has affected us. You saw Well 9 yesterday, we finished drilling that Well in March this year and because we do not have enough fund we had to suspend it, so you can imagine if we had fund then, if we had completed that well then between March and August, you can see that we would have made quite some money but as it is now the oil and gas in that Well are all just knock down, so that is one of the losses we have suffered this year, but we have been unable to make money because we haven’t completed that Well, so once you don’t have fund it is difficult to achieve your goal.
What are your expectations from the new administration?
We need to revisit the gas pricing, the pricing we have now is not really encouraging, there is need for the government to help and encourage the indigenous companies, not only by improving on the pricing but by also giving us equal opportunities and more opportunities to perform more. We have the capability to go out and do more, we need more assets from the government, we (Frontier) have proven that Nigerians can do it and we can do a lot more but the government needs to encourage companies like us who are in the marginal field and the local companies, they have given us the encouragement to go out for assets and of course other Phases that come with that, so our hope is that the government of the day will smile at us and give us equal opportunities like the IOCs to do more.
FRONTIER VS. HOST COMMUNITIES
Mr. Samuel Atara
Mr. Samuel Atara, Community relations manager for Frontier Oil Limited, speaks on his company’s relationship with her host communities.
Samuel Atara.
How does Frontier relate with her host communities having in mind that it is an indigenous company?
Our relationship with the host community is cordial and this is because we have been able to gain their goodwill and confidence, and that has to do with how we started. We got a development consultant that has worked in the Niger-Delta for more than 13 years to engage the community and then create a profile, he was able to identify potential conflict issues, the governing structures of each community and that report was submitted to us, based on that report we were able to get the community development plan, and we have intervention areas of skill acquisition, micro credit and income generation, improve access to community, improve access to health, and then improved access to basic education, the plan was built on that, and then to help us articulate and implement the plan, they came up with a model called community development foundation which is a community based organisation. We have members drawn from our immediate host communities that are working there; we have 14 graduates and 6 support staff that have helped us.
We have a governance structure and also a BOT. What the BOT does is to access fund so that they are not only depended on Frontier, so we built that confidence and that has helped us. We did not stop at that, we also have a functional Memorandum of Understanding -MOU, which has every expectations of the host communities, we have an understanding so the MOU is not just there as a document, we have an implementation committee, and we have regular meetings with the implementation committee selected from the host community, and we also have a third party, the government is also part of the MOU implementation committee, and members of the company, so we have regular communications and what could be conflict issues are discussed and are handled, with that we are able to maintain a good relationship with our host communities. When we did the completion of, it was without any crisis, only when we went to the first completion of that Uquo 9, that was the first time they saw a rig in their community so their expectations were high even though we tried to bring them in, they were like No, so we just had one incidence, apart from that we have not had any issue, why we don’t have is that confidence we have established.
Was it the same Uquo 9 where you had an incident with a security operative?
No, that is Uquo 3 and 8.
How do you resolve issues like that?
We engage them, we have done the same thing for our drivers and it was hitch free but to a security man he has no skill, his belief is that we want to relieve him but that is not the case here, so to ensure that we resolve that amicably, we are going to meet with stakeholders of the host communities and the meeting is arranged between us and the traditional rulers, the traditional council is the apex traditional institution here, so all of them will come and we will explain to them, though we have done that on a one on hand, but this time, we will explain to all of them and these are the respective sponsors of those people you saw yesterday. Now giving information to the sponsors directly in a public forum, making them get back to their people will enable them embrace it, but in natural situation you must have a resolutions like that, it is normal.
Mr. Wole Speaking: Going back to when we started, our source that we have today is premised on a different approach that Frontier adopted from the word go, different approach from what we were all used to as a way it was done by the IOCs. Right from the word go we told ourselves that we would do it differently, we only had what the practice was like in those days of Shell and the rest, it used to be a divide and rule approach, those you called the High Chiefs that had the control, the belief is that they can carry their people along but things has changed and that was why there were so much problems in the Niger-Delta because the youths’ and the rest of the people’s eyes got opened and they saw that the big people were just cheating them. In our own case, we said we would do it differently, we would involve the people in taking decisions in things that will benefit them, and because we didn’t have the capacity that was why we had to source for a community expert to help us develop that model, in our own case we don’t impose things on our host communities, we don’t say we will give you a block of classroom or maternity ward and at the end of the day they end up not being managed, we went out and said ‘decide what you want by yourself’, we challenged them and said ‘decide what is beneficial to you’, that is why we came up with this idea that they could identify areas that they would want us to address in terms of schools, health, good road or skill. So it was the people that actually decided what they wanted for themselves, then we said ‘Ok, let us look into our purse to see how much can we solve of this’. That was what has helped us and really by building the confidence of our host communities, it has been working for us.
You talked about technical development and you said when you came here you came with a corp member. Over the years that the Frontier Gas has been running, have you continued that plan of bringing in a Nigerian youth Corp member especially those ones that studied engineering and how many have you brought in to Frontier Oil Ltd?
You saw it down there in the field when they said about 90 to 100 senior staff that we have are all Nigerians. Let me tell you how we started, what we did at the initial stage was to look for capable hands that can lead a team of operators in that field, I think initially we employed about 6 people, they were those we called team lead; what we did when that plant was not ready was to send these 6 men out to Singapore on 3 weeks training in a plant which is comparable to what we would eventually build, that site was still under civil construction then, so we took that step, notwithstanding that we are not making money, sent people out and let them gain experience from live plants and then come back and use that experience to help us run our plants. Not only that we don’t believe in you having expertise only in this fields, we believe in our skilled staff, and that is why when that plant was being built we went further to recruit those that will operate the plant, the people you saw there. About 50 percent of the people you saw there were recruited when that plant was being built, the idea was that they should be part of that construction phase right from the start until the plant was completed so that way they will be exposed to how the plant was built and every part of it how it functions because you were part of the construction too, and that has helped us today, these are couples of steps we have taken to actually integrate our people to train them into the expatriates that we have today and can handle the plant, and that is why we don’t have expatriates in there, so having done that, others come in we just train them up.
Frontier Oil Limited (FOL ) is an indigenous oil and gas production and development company with a proven track record of developing and bringing into production both crude oil and non-associated gas (NAG) from the Uquo field. The Company was formed in 2001 to participate in the first Federal Government of Nigeria Marginal field programme through which Frontier Oil acquired the Uquo Marginal Field located in OML13, onshore Akwa Ibom State in 2003.
FOL and its joint venture Financial and Technical partners, have successfully brought the formerly stranded Uquo Marginal Field into production and, in doing so, created a brand new gas development, supply and distribution infrastructure in the South East Niger-Delta. In addition, FOL is the Operator of a 3 company joint venture developing crude oil delivery infrastructure from 3 marginal fields located in OMLs 13 & 14 to the Mobil Qua-Iboe crude oil terminal.
FOL’s experience, as Operator of the Uquo Marginal Field, spans the entire hydrocarbon value chain, from seismic acquisition all the way through to production of crude oil and non-associated natural gas.
FOL is a professionally managed and committed indigenous operator with ambitions of becoming one of the leading indigenous E&P companies in Nigeria and a mid-size regional player.
The journey of the Uquo Gas Processing Facility Plant started in 2003 when the Department of Petroleum Resources (DPR) awarded the Uquo Marginal Field to Frontier Oil Limited as part of the Federal Government’s Marginal Field Programme aimed at increasing reserves, production, employment, local content and indigenous participation in the upstream oil and gas business. Uquo Field, located in OML13, onshore Akwa Ibom State, was among the 24 marginal fields that were awarded to indigenous companies in that maiden edition.
Gas form the Frontier Oil operated Uquo field is currently being supplied to three independent power plants– Ibom in Akwa Ibom State, Calabar in Cross River State and Alaoji in Abia State. Our gas also powers the UniCem Cement plant and serves as feedstock for the Notore Fertilizer plant. Gas, that is currently being supplied to Alaoji, Calabar and Ibom independent power plants, has resulted in an increase in the estimated cumulative power generation of eight per cent of the total power supply from the national grid. This contribution is expected to shoot up to 1,000 megawatts when at least two of these power plants commence generation at full capacities.
SPE Offshore Europe, Aberdeen, UK: Sand production and erosion can have significant financial and safety consequences for both production and assets, estimated by experts to run into tens of billions of dollars annually1. Now DNV GL has developed industry guidance to enable operators to develop a strategy for optimising the production rate, while at the same time safely managing the sand production and thereby potential erosion damage.
The Recommended Practice (DNV GL RP-0501) describes a safe and cost-effective approach to sand management and handling the consequences of sand production from oil and gas reservoirs through production wells, flowlines and processing facilities.
Lars Even Torbergsen, Senior Principal Specialist in DNV GL – Oil & Gas says: “Sand production is a major issue for the industry. Typical failures include erosion, sand accumulation, plugging and contamination. This can lead to unplanned shut-downs and loss of product to the environment. DNV GL’s Recommended Practice (RP) provides guidance on how to safely and effectively manage this challenge through the different stages of the design and operation of oil and gas production facilities.
“Statoil’s Gullfaks development applied the sand management RP’s principles a few years ago. Due to potential sand production, about 50% of the Gullfaks wells had to be choked back. The new sand management strategy reduced this by about 50%, adding a significant amount to the revenue stream. With an oil price of about 50 USD/b, this is equivalent to around £175 million per year. The knowledge we obtained from this work is encapsulated in the updated RP.”
First issued in 1996, the updated RP now includes new guidance on the development, implementation and follow-up of a high-level sand management strategy. It also provides more background material for erosion response models. The RP includes the following main updates:
An outline and list of considerations for a sand management strategy
New guidance on the erosion model for flexible pipes with interlock carcass
New erosion models for choke valves
Erosion model validation cases
Guidance on computational fluid dynamics (CFD) erosion modelling
The RP was initially developed as a result of a joint industry project (JIP) involving DNV GL, Amoco Norway Oil Company, Conoco Norway Inc., Norsk Hydro AS, Saga Petroleum AS and Statoil. The 2015 update reflects the collaboration between DNV GL and Statoil on the development of sand management strategies for the operator’s North Sea activities.
Elisabeth Tørstad, CEO, DNV GL – Oil & Gas, says: “DNV GL runs joint industry projects (JIPs) in collaboration with its customers to develop new solutions, standards and recommended practices that strip back complexity and can help manage costs without compromising on safety. We continuously lead approximately 100 joint industry initiatives, providing the sector with an independent arena for collaboration and innovation.”
The Recommended Practice can be downloaded from here.
Global Pacific & Partners hosts the 22nd Africa Oil Week in JV with ITE Group plc 26-30 Oct, Cape Town, South Africa
CAPE-TOWN, South-Africa,September 10, 2015/ — Global Pacific & Partners hosts the 22nd Africa Oil Week (http://www.africa-oilweek.com) in JV with ITE Group plc 26-30 Oct, Cape Town, South Africa.
Meet Africa’s Governments, state oil firms, licensing agencies, and the key officials and corporate players from super-majors to independents across the Continent, including foreign national oil companies, now shaping Africa’s upstream future.
Government & Country Presentations and participation includes: Equatorial Guinea with Minister, Gabon with Minister and Ministry Delegation, Ghana, Mocambique, Egypt, Kenya, Uganda, Nigeria-Sao Tome & Principe JDA, Somalia with Minister, South Africa, Seychelles, Madagascar, Morocco, Ethiopia, Senegal, Namibia, AGC (Senegal-Guinea-Bissau), Burundi, Malawi – plus with Bid Rounds and Roadshow Announcements from: Republic of Congo, with Minister, Government Delegation and SNPC-DGH, Sonangol and Angola plus Government Delegations from Madagascar, South Sudan, Sao Tome & Principe, and many others, with Speakers Africa-wide, on Cameroon, Nigeria, Tanzania, Comoros, Mauritania, Sierra Leone, Liberia, Chad, Zimbabwe, India in Africa, Japan in Africa, China in Africa, Statoil in Africa, United States in Africa, Canada in Africa, and African Development Bank, IFC, TSX, JSE, and Nipex.
Secure and cement your “one-stop E&P” insights and Government connections inside and outside Africa.
This landmark annual event, once again, has it all, with 120 speakers, quality exhibition, intimate high-level social networking across the week, and much more.
Dr Tony Hayward, Chairman, Genel Energy, and Chairman, Glencore (Xstrata), is Keynote Guest Speaker.
The 22nd Africa Oil Week includes: 22nd Africa Upstream conference, 13th Africa Independents Forum, 17th Scramble for Africa Strategy Briefing (Presentations by Dr Duncan Clarke, Chairman, Global Pacific & Partners) and 71st PetroAfricanus Dinner In Africa – with social networking occasions, breakfasts, luncheons, dinners, cocktail receptions through the week.
Confirmed Sponsors
ACAS-LAW, Africa Finance Corporation, Africa Oil Corp., Africa Petroleum Corp., AirFrance / KLM, Anadarko Petroleum Corporation, Centurion LLP, Chevron, Discover Exploration, ENI, Erin Energy, ExxonMobil, GEPetrol Equatorial Guinea, Greenberg Traurig, IHC Mercedes Holdings, Impact Oil & Gas Ltd, MidWestern Oil & Gas / Regalis Petroleum, Nedbank Capital, Noble Energy, Oando, Ophir Energy, Petroleum Agency SA, Petrolin Group, PGS, Pluspetrol, Polarcus, RPS, Rystad Energy, Salama Fikira, Saldanha Bay IDC, Seplat Petroleum, Seven Energy, Shell, TMX / Toronto Stock Exchange, Tullow Oil plc, Total, Veolia, Woodside Energy, Folawiyo Petroleum Co. Ltd, Zenith Bank Plc.
Distributed by APO (African Press Organization) on behalf of Global Pacific & Partners.
The 4th Annual Africa Infrastructure and Power Forum will take place in Beijing, China 15-16th October 2015
BEIJING, China, September 9, 2015/ — 2015 marks a turning point for African investment. The need to address the continent’s energy deficit, and the critical requirement to connect those living without access to electricity, is undisputed – 13% of the world’s population live without electricity, versus 48% of the global population who live in Africa.
This year Africa will have witnessed 19 elections, and the formation of many new governments. Many of these administrations will seek to improve living conditions through access to electricity, and subsequently, added employment opportunities. Despite the headwinds caused by lower oil and commodity prices, and weakening currencies across sub-Saharan Africa, progress continues to be made. Nigeria witnessed the most notable investment deal in recent weeks, with Africa’s largest privately held business – Dangote – signing a $4.34 billion deal with China’s Sinoma, an indication of Nigeria’s infrastructural ambition. In the same period, another of the world’s fastest-growing economies, Kenya, has earmarked $55.6 billion for infrastructure development. Kenya’s road network urgently needs improvement – essential for trade and tourism, indispensable lines of inward investment.
Global investor demand for African opportunities were displayed this month when one of the world’s largest private-equity funds – The Abraaj Group – announced it had raised $1.4 billion, indicating the dawn of billion-dollar African private-equity funds searching for greater returns than offered by alternative, saturated markets. Of 119 African investor deals, there has only been one default in the past decade.
However, of all interested parties looking to invest in Africa this year, there has been one nation consistently seeking to improve infrastructure and power development on the continent – China. As of 2011, China’s investment in Africa was 4.3% of its global trade (Asia represented 60.9%, Latin America 16% and Europe 11.1%). By 2009, 45.7% of China’s cumulative foreign aid of $256.29 billion had been dispensed to Africa.
The growth of China-Africa trade is revolutionising African development, stimulating crucial upgrades of the continent’s infrastructure and power development – highlighted in June when Tanzania awarded a consortium of Chinese railway companies projects valued at $9billion.
EnergyNet are delighted to announce the 4th Annual Africa Infrastructure and Power Forum (http://www.africa-infrastructure-forum.com), taking place in Beijing, China 15-16th October 2015. This important meeting once again partners with the China Africa Development Fund, who will be seeking new projects to receive some of the $5billion under their management.
Standard Bank, Africa’s largest bank, will be joining the meeting this year as forum sponsor. David Humphrey, Head of Infrastructure and Power, Standard Bank, recently commented that “the conference brings together some of the foremost figures in infrastructure, as well as key policymakers from Africa. Continued and increasing investment in infrastructure is crucial to the development of African nations, and Standard Bank is well placed to play a leading role in connecting investors with opportunities across the continent. We are delighted to be sponsoring the conference for the second year in a row, and we look forward to seeing our customers and stakeholders in Beijing.”
At the Forum there will be 11+ project presentations featuring major opportunities, including:
• The East to West Landbridge – LAPSSET Corridor
• East African Standard Gauge Railways
• Dry port development in Ghana
• Unbundling of state utilities in Liberia
• Gas-to-Power investment opportunities in Mozambique and South Africa.
We welcome the following high-level speakers:
1. H.E Hon, Henry Rotich, Cabinet Secretary for the Treasury, Kenya
2. H.E. Hon. Matadi Atadi Nenga Gamanda, Minister of Energy and Water Resources, DR Congo
3. H.E. Hon Christopher Yaluma, Minister of Energy, Zambia
4. H.E. Hon Henry Macauley, Minister of Energy, Sierra Leone
5. H.E. Hon James Musoni, Minister of Infrastructure, Rwanda
6. H.E. Hon Obeth Kandjoze, Minister of Energy and Mines, Namibia
7. H.E. Hon Aston Kajara, Minister of Finance in charge of Privatisation, Uganda
8. Honourable Maria Kiwanuka, Senior Advisor to the President, Uganda
9. Silas Zimu, Presidential Special Advisor on Energy, South Africa
10. Chairman Mingqiang Bi, Chairman of the Board of ICBC Standard Bank PLC
11. Madam Shen Min, Deputy General Manager, Special Financing Department, ICBC Bank
Africa is to see its carbon credit exchange up and running in 2016 in Zambia. The Africa Carbon Credit Exchange (ACCE) will create a platform for individuals and firms to raise capital for various green projects. The bourse is just waiting for the cabinet to approve the process.
Once operational, the exchange will aid in providing finance and investment opportunities in the African carbon market by providing a trading platform for buying and selling instruments to undertake projects in renewable energy and forest preservation.
As the oil price further deteriorates, major oil-producing countries are looking to the future and to sustainability.
Recently, Bloomberg forecast that two-thirds of the $12.2 trillion global investment in capacity-generation to 2040 will be in the renewables sector; a signal simply of economic progression or of an increasing need for diversification in the energy mix.
The recent attention of many petroleum nourished governments has been towards renewable energy. In the past 12 months, Brazil, Egypt, the UK, Ghana, Vietnam and Poland have all introduced new policies and measures to stimulate renewables growth. More recently, at the National Clean Energy Summit in Las Vegas, President Obama pledged incentives to support renewable investments, introducing new executive actions which aid landowners and businesses to invest in green energy, in particular championing the use of solar power. These included a $1 billion increase in loan guarantees for renewable energy projects as well as new grants to the tune of $24 million (primarily for solar research).
Political drivers are motivating investment in this direction, with several major private equity funds investing in renewable energy platforms, particularly in developing countries. In Europe, total investment in clean energy reached $63.4 billion in 2014, of which a quarter was project finance driven by a strong pipeline in offshore wind and solar power.
However, global investment in clean energy has fallen in the last two quarters, though this is generally attributed to a strong dollar and uncertainty in China.
Crucially, new renewables targets have been set in the oil and gas havens of Dubai, Brazil, the USA and Mexico so far this year; now a total of 164 countries have adopted a renewable energy target, from just 43 countries in 2005. It is a sign of the times, as President Obama noted in his recent promotion of green energy, “solar industry now employs twice as many Americans as mining coal”.
While South Africa has a booming renewable power industry, it is having a hard time connecting the growing number of projects to its power grid.
State-owned utility Eskom is struggling, and failing to keep the lights on in the country even though the nation’s renewable energy program is supposed to help alleviate some of the strain on capacity.
“Connections are a problem, we have all identified that, including Eskom,” head of Independent Power Producers unit Karen Breytenbach told a news conference.
Nigeria is about to launch waste-to-energy project in its Nasarawa State, with a technology pioneered by Canadian firm NH3 Canada Inc. The project will be delivered as full turnkey solutions by NH3 Europa in collaboration with Nigerian firm Trevari Group.
The two companies executed a MoU July 3 in Abuja and the partnership will now be called Trevari NH3 Ltd. exclusively for all projects within Nigeria.
Under the project the waste will be converted into 100% renewable energy, additionally the wastes will be processed and ultimately produce hydrogen and nitrogen for green energy storage as NH3 (Anhydrous Ammonia), for an uninterrupted power supply, as well as fertilizer for agriculture.
The pair already has an understanding with the government of Nasarawa to begin the funding and development for planning as well as construction and delivery of engineering works. Renewable energy generation and distribution in selected districts in the state has been agreed upon with the donor company.
CGG has announced that, with the support of its Seabed Geosolutions joint venture with Fugro, it has successfully completed the acquisition of a3D seismic survey over the Hail and Shuweihat oil and gas fields in the Emirate of Abu Dhabi, one of the world’s most environmentally sensitive areas. The survey is part of an integrated project, including data processing and reservoir characterization, awarded to CGG by the Abu Dhabi National Oil Company (ADNOC).
Seismic operations were implemented to the highest QHSE standards to acquire the two-part survey, covering a total area of 1200 sq km and lasting over 18 months.
The first part involved acquisition of over 600 sq km of data for the Hail project located offshore and in the shallow waters of the Merawah natural reserve which has a very rich biodiversity and is a marine UNESCO World Heritage site. It was immediately followed by the acquisition of over 500 sq km of data over an offshore and onshore area of the Shuweihat field, which, due to its location on the site of various government projects and interests of the Emirate of Abu Dhabi, called for careful planning and coordination.
Processing of the high-quality data collected during the survey is being conducted in conjunction with reservoir characterization in CGG’s Abu Dhabi center. A good understanding of the geological targets and integration of well information at the outset of processing was key to providing reliable images over a large geological sequence for the extraction of key faults and mapping of stratigraphic traps.
ADNOC’s satisfaction with the acquisition component of the Hail-Shuweihat survey also played a part in its recent award to CGG of a contract for a 1500 sq km shallow water seabed survey over the Ghasha-Butini field to be acquired with the support of Seabed Geosolutions.
Jean-Georges Malcor, CEO, CGG, said: ‘CGG is proud to be a key player in the high level of seismic activity currently ongoing in Abu Dhabi, as part of ADNOC’s plans to implement their extensive mid- and long-term field development projects. The choice of CGG for this integrated project indicates the strength of our shallow water and seabed solutions and our ability to successfully deliver complex programs, combining acquisition and subsurface expertise. We are particularly pleased that ADNOC wishes to benefit from our acquisition experience in environmentally sensitive areas to support its commitment to protecting the Emirate’s natural environment.’
Oriental Energy Resources and Afren have concluded a transition plan for the shallow-water Ebok field offshore Nigeria.
Following Afren’s announcement of insolvency at the end of July, Oriental will take control of the field’s operations, probably by the end of this month, including the FPSO which currently delivers around 30,000 b/d of oil.
The process includes the transfer of all Afren’s duties as technical advisor to Oriental, including all obligations not already held by Oriental under the prevailing Ebok agreements.
All Ebok contracts with suppliers and contractors will have to be renegotiated and reassigned to Oriental. Oriental has already secured a framework of key personnel to staff drilling, production and facilities, and subsurface and reservoir activities during the transition.
Implementation of the Okwok field development plan continues, with the same handover process likely to be affected.
Oriental adds that any companies interested in pursuing a commercial opportunity in any of the Oriental-Afren joint venture’s properties in Nigeria, including the Ebok, Okwok, and OML115 licenses, would need prior approval from Nigeria’s Ministry of Petroleum Resources and its Department of Petroleum Resources.
Cobalt International Energy Inc. has announced that it has signed an agreement to sell its entire 40 percent participating interest in blocks 21/09 and 20/11, located offshore Angola, to Sonangol for $1.75 billion.
The transaction, which has an effective date of Jan. 1, is subject to Angolan government approvals, which are expected before the end of the year.
According to a Cobalt statement, both parties are committed to attaining a final investment decision for the Cameia development in Block 21/09 by year end 2015, in order to deliver first oil from Cameia in 2018.
Joseph H. Bryant, Cobalt’s chairman and chief executive officer, commented in a company statement:
“We are proud of the tremendous success that our partnership with Sonangol has achieved in opening the pre-salt play in the Kwanza Basin with five significant discoveries and a deep portfolio of exploration prospects. We remain committed to continuing our joint efforts with Sonangol to move the Cameia development project to sanction by year end.”
Francisco Lemos Jose Maria, chairman and chief executive officer of Sonangol, said in a company release:
“Over the past seven years, Cobalt International Energy has had outstanding exploration success in Angola’s pre-salt, which will accrue considerable prosperity to the Angolan people over coming generations. We are thankful and appreciative of their efforts and dedication to the task and wish them well in their future endeavours in the global industry.”
Panoro Energy has provided an update on the drilling of the Aje-5 production well on the OML 113 license, offshore Nigeria.
The Aje-5 well has now reached targeted depth of 3,255 metres measured depth, having been drilled with the Saipem Scarabeo 3 semi-submersible drilling rig in 300 metres water depth. The well was drilled as a deviated well targeting close to the Aje-2 well subsurface location. Aje-2 was drilled in 1997 and encountered and tested a high quality oil-bearing Cenomanian reservoir. Drilling operations at Aje-5 have been completed ahead of schedule with no safety related incidents reported and the well is now being completed as a subsea oil production well.
The Aje-5 well intersected 72 metres (true vertical measurement) of gross hydrocarbon-bearing Turonian sandstone.
The reservoir has been evaluated using data obtained from a limited suite of LWD logging tools including resistivity and gamma ray and 9 5/8″ casing was set across this Turonian reservoir interval to isolate it. The LWD data is consistent with data from the Aje-1, Aje-2 and Aje-4 wells which all intersected a condensate-rich gas column with an underlying liquid oil rim of around 9 metres. Preliminary indications are that the net reservoir over this interval in Aje-5 is slightly better than had been seen in these previous wells. The Aje Joint Venture partners are continuing to evaluate opportunities to commercialise this significant hydrocarbon resource in the future.
The Aje-5 well subsequently resumed drilling to the target Cenomanian where the well encountered 19.4 metres (true vertical measurement) of gross oil-bearing reservoir. A fuller set of LWD tools including gamma ray, resistivity, neutron and density have been run which confirm the presence of oil consistent with pre-drill estimates. The rig has now set a 7″ production liner and the Aje-5 is currently being completed as a Cenomanian production well.
After these operations the rig will be moved to re-enter the existing Aje-4 well to complete it as a second Cenomanian production well. A further operational update will be provided at that time.
John Hamilton, Panoro Energy CEO commented, ‘We are pleased to see the excellent operational results to date in the drilling of the Aje-5 well and to report that the well has been efficiently drilled ahead of schedule by the operating team. The drilling of the 2 production wells are a significant part of the overall Aje development capex and we are very encouraged by the project execution so far. We look forward to reaching first oil in the coming months and establishing a renewed platform for 2016 and beyond.’
Aje is an offshore field located in the western part of Nigeria in the Dahomey Basin close to the border with Benin. The field is situated in water depths ranging from 100 to 1,000 metres about 24 km from the coast. Panoro Energy holds a 6.502% participating interest in OML 113 (with a 12.1913% revenue interest and 16.255% paying interest in the Aje Field). The Aje Field contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.
As previously disclosed, in July 2014 AGR TRACS International calculated the gross Cenomanian oil Proved plus Probable Reserves estimate associated the Aje-4 and Aje-5 wells, and the gross Contingent Resources estimate associated with the future drilling of Aje-6 and Aje-7 wells. At that time AGR TRACS International calculated these as 23.4MMbbl and 15.7MMbbl respectively (on a gross basis), indicating a mid case expected ultimate recovery of 39.1MMbbl from the Cenomanian Oil Reservoir once all four wells have been drilled. At that time, AGR TRACS International also calculated the Turonian gas and condensate/oil best estimate gross contingent resource as 163 MMboe. Panoro will in due course commission an update to these numbers to incorporate the new 3D seismic survey and the Aje-5 well data.
Eni has made a world class supergiant gas discovery at its Zohr Prospect, in the deep waters of Egypt. The discovery could hold a potential of 30 trillion cubic feet of lean gas in place covering an area of about 100 sq kms. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea.
Eni will immediately appraise the field with the aim of accelerating a fast track development of the discovery that will utilise at best the existing offshore and onshore infrastructures.
Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to update Egypt’s President, Abdel Fattah Al-Sisi, on this important success, and discuss this discovery with the Prime Minister, Ibrahim Mahlab, and the Minister of Petroleum and Mineral Resources, Sherif Ismail.
The discovery, after its full development, will be able to ensure satisfying Egypt’s natural gas demand for decades
According to the well and geophysical data available, the field could hold a potential of 30 trillion cubic feet of lean gas in place, therefore representing one of the world’s largest natural-gas finds, located in a permit where Eni holds a 100% of the Contractor’s working interest
Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to discuss the new exploration success with the Egyptian institutional leaders
Eni has made a world class supergiant gas discovery at its Zohr Prospect, in the deep waters of Egypt. The discovery well Zohr 1X NFW is located in the economic waters of Egypt’s Offshore Mediterranean, in 4,757 feet of water depth (1,450 metres), in the Shorouk Block, signed in January 2014 with the Egyptian Ministry of Petroleum and the Egyptian Natural Gas Holding Company (EGAS) following a competitive international Bid Round.
According to the well and seismic information available, the discovery could hold a potential of 30 trillion cubic feet of lean gas in place (5.5 billion barrels of oil equivalent in place) covering an area of about 100 sq kms. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world’s largest natural-gas finds. This exploration success will give a major contribution in satisfying Egypt’s natural gas demand for decades.
Eni will immediately appraise the field with the aim of accelerating a fast track development of the discovery that will utilise at best the existing offshore and onshore infrastructures.
Zohr 1X NFW was drilled to a total depth of approx. 13,553 feet (4,131 metres) and hit 2,067 feet (630 metres) of hydrocarbon column in a carbonate sequence of Miocene age with excellent reservoir characteristics (400 metresplus of net pay). Zohr’s structure has also a deeper Cretaceous upside that will be targeted in the future with adedicated well.
Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to update Egypt’s President, Abdel Fattah Al-Sisi, on this important success, and discuss this discovery with the Prime Minister, Ibrahim Mahlab, and the Minister of Petroleum and Mineral Resources, Sherif Ismail.
‘It’s a very important day for Eni and its people. This outstanding result confirms our expertise and our technological innovation capacity with immediate operational application, and above all shows the strength of the cooperation spirit amongst all the company’s units which are at the foundation of our great successes. Our exploration strategy allows us to persist in the mature areas of countries which we have known for decades and has proved to be winning; reconfirming that Egypt has still great potential. This historic discovery will be able to transform the energy scenario of Egypt in which we have been welcomed for over 60 years. The exploration activities are central to our growth strategy: in the last 7 years we have discovered 10 billion barrels of resources and 300 million in the first half of the year, confirming Eni’s leading position in the industry. This exploration success acquires an even greater value as it was made in Egypt which is strategic for Eni, and where important synergies with the existing infrastructures can be exploited allowing us a fast production startup‘, Claudio Descalzi commented.
Eni, through its subsidiary IEOC Production B.V., holds a 100% of the Contractor’s working interest in the Shorouk Block and is the operator of the concession. Eni has been present in Egypt since 1954 through its subsidiary IEOC, a company which has always been a frontrunner in exploring and exploiting gas resources in Egypt since the discovery of the Abu Maadi Field in 1967.
By adopting new exploration concepts, leading edge technologies and operational approaches, through AGIBA and Petrobel, operating companies participated by IEOC and EGPC, Eni has successfully managed to double production of oil from the Western Desert and the GOS Abu Rudeis Concessions in the last three years as well as to revamp production from the Abu Maadi plays in the Nile Delta area following the recently announced Nidoco NW 2 discovery (Nooros prospect) currently already in production.
Eni is the main hydrocarbon producer in Egypt, with a daily equity production of 200,000 barrels of oil equivalent.
An indigenous company, Niger Delta Petroleum Resources Limited, has clinched the 2015 Global Gas Flare Reduction Excellence Award.
The award conducted by the Global Gas Flaring Reduction Partnership – a World Bank Group initiative, will be conferred on Niger Delta Petroleum at this year’s award ceremony, the 4th in the series, holding September 9 to 10 in the Russian Federation.
In a statement congratulating the company over the award, the Department of Petroleum Resources, DPR, said the international award testified to Nigeria’s progress in strengthening indigenous capacity in adhering to international best practices while exploiting the nation’s natural resource.
DPR also explained that Niger Delta Petroleum’s achievement was more remarkable as the company was preparing to celebrate the anniversary of its 10th year of production in the oil and gas sector.
“We commend the relentless efforts of the management and staff of Niger Delta Petroleum Resources Limited in ensuring gas flares reduction in their Ogbele Gas Field Project, in line with government’s flare down policy, which has led to this global recognition,” DPR said.
The statement added: “We rejoice with them and acknowledge their excellent achievements as being the first indigenous company with a fully integrated oil and gas operation across the entire value chain of the Nigerian oil and gas sector.”
DPR vowed to continually provide needed support and guidance to all operators in an effort to encourage optimal productivity of their respective assets in line with global standards, noting that this would ensure a positive economic growth in Nigeria and sustainable development in the sector.
** FILE ** In this Thursday, June 21, 2007 file photo, an MQ-4 Predator controlled by the 46th Expeditionary Reconnaissance Squadron stands on the tarmac at Balad Air Base, 50 miles north of Baghdad, Iraq. The U.S. Navy lags a quarter-century or more behind the Air Force in the development of armed drones - the unmanned aircraft now used in vast numbers to fight insurgents over Iraq and Afghanistan - insisting that its "Top Gun" fighter pilots are still smarter, better and more flexible in combat. (AP Photo/Maya Alleruzzo, File)
…Says oil theft, pipeline vandalism claims 350 lives in three years
The Nigerian National Petroleum Corporation (NNPC) declared plans to deploy drones across the nation’s territorial waters to monitor the inwards and outwards movement of oil bearing vessels as the war on oil theft and pipeline vandalism reached a crescendo.
President Muhammadu Buhari had said that some top government officials moved as much as one million barrels of crude oil amounting to about $50 million per day for their personal purposes.
He told Nigerians in diaspora on July 21 that he had started receiving some documents which indicted some former ministers and other top government officials of massive fraud, including oil theft.
Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachikwu who however declared on Tuesday that his corporation would deploy drones to monitor vessels, also set a target of eight months for the corporation to end crude theft.
“Fresh vista to the fight against the perennial problem of oil theft and pipeline vandalism appeared on the horizon,” the NNPC boss said at the special conference on Security in the Gulf of Guinea organized by the Gusau Institute, adding that “the Corporation is working towards the deployment of drones across the nation’s territorial waters to monitor the inwards and outwards movement of oil bearing vessels.”
The statement signed by Group General Manager, Group Public affairs division of the NNPC, Ohi Alegbe quoted Kachikwu to have said this in a presentation at the special conference on Security in the Gulf of Guinea organized by the Gusau Institute.
“Dr. Kachikwu stated that the Corporation is working on a range of far reaching options designed to end the ugly episodes of crude and petroleum products theft within the next eight months,” Alegbe said.
“We are launching an armada of approaches which will include incorporation of drones to check movements of vessels within our territorial waters.
“We are looking at the current logistical nightmares of changing staffing at the loading bay of crude oil export terminals virtually every 90 days, We are trying to equip the navy sufficiently though they are very well equipped in terms of skill set but not in terms of arsenal for patrols within the maritime area,” NNPC’s helmsman said.
On the issue of pipeline protection, the GMD explained that though the Corporation is working assiduously with the law enforcement agencies to increase the presence of military personnel in the area, the ultimate security for the critical oil and gas assets lies squarely with the host communities.
“The best security for these pipelines lies with the communities. We are trying to create enough incentives for them to see these pipelines as their own,” he said.
Lamenting the impact of oil theft on the smooth operations of the nation’s refineries, the NNPC GMD warned that if left unchecked, the menace could invariably make it impossible for the NNPC to operate the refineries.
“Most of our product pipelines are ruptured and attacked frequently. For instance between June 2014 and June 2015, we recorded about 3, 500 to 4,000 attempts at the various products pipelines across the country. In addition to that, the pipelines that are supposed to convey crude to the refineries are perpetually hacked, ’’ he said.
Dr. Kachikwu noted that the resort to the use of marine vessels to convey crude to the refineries is coming at heavy cost.
“What this means is that no matter what we do with the refineries today, unless that is solved, we really are going nowhere, we cannot operate the refineries.”
He explained that beyond the loss of crude and products, the incidents of oil theft have also claimed a huge number of human lives. He informed that in the last three years a total of 350 persons including NNPC staff, Police officers, Community members have been killed as a result of activities of oil thieves.
“Today, I ask all of you to join us in this campaign, it is not just a campaign for NNPC but it is a campaign for every Nigerian…. So it is war time, it is business time, it is focus time and there is a lot to do. Everybody is being called to the table and everybody is being called on the state of alert but in eight months we must be able to deliver an environment that is free from the vices of oil theft,’’ Kachikwu enthused.
He informed that in executing the campaign, adequate support will be sought from the International community especially from countries that have become host nations to the stolen cargoes.
Earlier in his Keynote Address, His Excellency Patrice Emery Trovoada, PRIME Minister of Sao Tome and Principe called on the countries in the Gulf of Guinea to forge a broad based collaboration to stem the ugly tide of insecurity on all the water ways.
President Muhammadu Buhari on Wednesday July 21 confirmed that he had started receiving some documents which indicted some former ministers and other top government officials of massive fraud, including oil theft.
Buhari said the documents revealed that some top government officials moved as much as one million barrels of crude oil per day for their personal purposes.
The President stated these while speaking at an interactive session with Nigerians in the Diaspora at the Nigerian Embassy in Washington DC, United States, in continuation of his four-day official visit to the country.
He alleged that such officials also opened as many as five bank accounts abroad for the purpose of laundering money.
While describing the amount of money involved in the shady deals as mind-boggling, the President promised that his administration would use the indicting documents and others still being compiled to clamp down on the culprits and prosecute them.
Another 150 youths from the Niger Delta are to benefit from the 2015 LiveWIRE programme of the Shell Petroleum Development Company of Nigeria Limited (SPDC) operated Joint Venture, bringing the total number of beneficiaries to over 6,000 since the launch of the programme in 2003.
LiveWIRE is a flagship youth enterprise development programme which provides access to training, business development services and start-up capital.
“LiveWIRE presents a good opportunity for bright young people to bring their ideas to fruition,” said SPDC’s General Manager External Relations, Igo Weli. “We are pleased to see the youths transform to employers of labour after going through intensive business training that is reinforced with theoretical and practical sessions.”
The two-week training slated for later in September will be held for the selected youths in Rivers, Delta and Bayelsa states.
Media Relations Manager of Shell, Mr. Precious Okolobo, said in a statement recently that the programme is open to university and polytechnic graduates with innovative business ideas from the three states.
The curriculum includes Business Planning and Management and post start-up Mentoring, incubation and market linkages. Successful candidates will be linked to third parties such as NGOs, banks, and allied financial institutions and provided a volunteer mentoring programme.
In 2014, the LiveWIRE scheme was broadened to include a specific focus on people with physical impairments. Some 180 disabled people had already benefited from training and grants by the end of the year. Shell Companies in Nigeria work with government, communities and civil society to implement programmes that have a lasting impact on lives in the Niger Delta and beyond. Social investment activities are focused in particular on community and enterprise development, education and health.
No fewer than 5,139 ocean going vessels with a total gross tonnage of 61,990,999 called at Nigerian ports in the first quarter of this year. The gross tonnage of crude oil tankers recorded in the period showed a 12.21 per cent increase over the first quarter of 2014.
According to data released by the General Manager Public Affairs of Nigerian Ports Authority (NPA), Captain Iheanacho Ebubeogu, during the period, the Lagos Port Complex (LPC) recorded a gross registered tonnage of 9,298,761, indicating an increase of 10.6 per cent over 8,407,233 gross tons achieved in 2014.
A total of 372 vessels were handled in the period under review. The Tincan Island Port recorded a gross tonnage of 12,232,575, indicating an increase of 8.15 per cent over 11,310,751 gross tons recorded in the corresponding period of 2014.
According to Ebubeogu, “a total number of 435 ocean going vessels were handled within the period. Calabar Port Complex recorded a total gross tonnage of 958,288, showing a rise of 11.67 per cent over the 858,174 gross tons of 2014, leaving the port with 100 Ocean going vessels in the period under review.”
“Rivers Port Complex recorded a total gross tonnage of 1,475,864, indicating a 14.45 per cent increase over 1,288,524 gross tons achieved in the corresponding period of 2014. A total of 132 ocean going vessels were handled within the period under review.
“Onne Port Complex recorded a gross tonnage of 12,768,834, reflecting an increase of 12.99 per cent over 11,300,433 gross tons recorded in the corresponding period of 2014 with 1,025 vessels handled within the period. Delta Port Complex recorded 1,643,346 gross tons, with 2,816 vessels handled.”
The figure showed an increase of 7.20 per cent over 45,994,755 metric tons achieved within the same period of 2014. The general cargo was 6,469,022 metric tons, an increase of 6.10 per cent over the 6,097,318 metric tons in the same period of 2014, while dry bulk cargo stood at 2,276,358 metric tons.
The shipment of Liquefied Natural Gas (LNG) was 5,545,946 metric tons; depicting a growth of 0.37 per cent over 5,525,494 metric tons figure of 2014. According to the document, “Refined petroleum products stood at 4,300,852 metric tons, a drop of 6.77 per cent from 2014 figure of 4,613,567 metric tons. Laden containers that passed through all ports amounted to 233,331 twenty Equivalent Units (TEUs).
“Empty Container stood at 163,850TEUs while a total of 30,649 units of vehicles were handled in the period under review,” Ebubeogu stated.
He said in the first quarter of 2015, the level of operational activities at the port locations witnessed positive variance over the first quarter 2014.
