Inside Waltersmith Modular Refinery –By Gideon Osaka
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FEBRUARY 2020 VOL. 3 NO. 02 CONTENTS 28 4 EDITORIAL INDUSTRY 5 Why IOCs are Reluctant to Produce Gas National Gas Network in Nigeria 6 Egina is a Technology Game Changer Code Activates ...Total MD 8 NCDMB, National Assembly Brainstorm on Local Content 10 Aiteo Group: Local Conglomerate with Gas Development International Pedigree 12 No Reform, No Cash: IOCs Hold out for PIB 14 Capacity Utilisation Bane of Local Content —Stakeholders ...As NASS plans to amend NOGIC Act 15 Provision of N450bn Fuel Subsidy Stokes Fresh Deregulation Fire 18 Special Focus: Inside Waltersmith Modular Refi nery 26 Despite Disruptions in Nigeria, Libya, Global Oil Demand Expected to Drop First Time in a Decade 34 How we’ll Terminate Fuel Importation – Kyari 44 FEBRUARY SHORT TAKES HEALTH 38 Common Workplace Problems LIFE 42 A-Z of Personality Branding INTEGRITY 40 AVIATION ENTERTAINMENT 46 Trouble Brews in Nigeria’s Aviation Sector Excitement as Davido, PROPERTY Olamide Drop Studio Albums 48 Still on the Search for Affordable Homes MOTORING 50 Nigeria Automotive Industry Development Plan Bill: NADDC, Stakeholders Plan ‘executive Bill’ for NASS 23 SPORT Star of the Industry 52 Buhari Appoints Amokachi Nigeria’s Captain Emmanuel Football Ambassador Iheanacho (rtd) Executive Chairman, Integrated Oil and Gas Limited he 3rd Nigerian Interna- The signifi cance of these tional Petroleum Sum- two developments is; while Tmit (NIPS) which took the National GasTransporta- place in Abuja 2nd week of tion Network code launched February has come and gone will give way for a level play- leaving stakeholders in the ing fi eld that will allow the global oil and gas industry flow of the much-needed in- with pleasant memories of a vestments in the country’s world-class event. growing gas sector, the re- The annual oil and gas vealed one billion barrels of gathering, which was the 3rd crude found in the north-east in the north is viable in terms in series is the African equiv- has laid to rest the insinua- of commercial venture. alent of the popular Offshore tion of whether the oil search It is our hope that these two Technology Conference (OTC) developments will usher in a which normally holds in more standardised industry Houston, United States. that will attract investments This year’s summit will be globally to the benefi t of the remembered for so many citizens of the country. reasons, paramount among Publisher/Editor-in-Chief Most of the reports in this Musa Bashir Usman which is the two major pro- edition emanated from the Acting Editor concluded NIPS. We have nouncements that came Benjamin Ike out of the event which are reports extracted from vari- Deputy Editor the launch of the National Fred Ojiegbe ous sessions of the summit Gas Transportation Network where technocrats bared Contributors their mind on the current Code, and the announce- Gideon Osaka ment of the much-awaited Ironhand S. Chukwuemeka happening in the oil and gas, Hauwa Muhammad Lawal and related industries such commercial viability of the oil Emmanuella Edun-Adedeji search in the north in which it as maritime and Insurance. was revealed that about one Graphic Consultant We also have for you oth- billion barrels of crude was Theresa Ogbonna er reports from Sports, Mo- found as a result of the Kol- Business Dev. Executives toring, Health, Aviation and Adeniyi Onifade (South) Property pages as usual. Do mani River II drilling. Both the Abdulkarim Sani (North) launch and announcement have a great time reading. Circulation Manager were made by the Hon. Min- Danlami Nasir Isah ister of State Petroleum Re- Online Editor sources, Chief Timipre Sylva Saidu Abubakar M.B. Usman on the opening and closing NB. Feel free to send in your views Photo Editor and have your say @ [email protected] ceremonies of the summit Bashir Bello Dollars respectively. Head Offi ce: Abuja Liaison Offi ce: 1-2 Abu-Rayyan Street, New NDC Layout, Kaduna. SF 3, Rhema Mall, Ahmadu Bello Email: [email protected] Way, Opp. NAF Conference & Contact: 08032324370, 09071492222 Suites, Abuja. [email protected] @thevaluechainng.com thevaluechainng.com 4 Industry 02:20 Why IOCs are Reluctant to Produce Gas in Nigeria –By Fred Ojiegbe he international oil compa- that when we have a power pur- nies, IOCs may not be keen chase agreement, PPA. At the Tto fully harness the gas moment the PPA has been sus- potential of Nigeria unless there pended because of free eaters in is a guaranteed sustainable pay- the system who do not want to ment for the product, Engr. Yusuf pay. We are coming out with a Usman, Chief Operating Officer, solution because we understand (COO) Gas & Power, Nigerian the challenges the Nigerian Bulk National Petroleum Corporation, Electricity Trading Plc. (NBET) is (NNPC), has said. going through. NBET said they Speaking on the imperatives would only take gas that can be of gas production and energy se- paid for. That is looking down- curity at the 3rd Nigeria Interna- wards. tional Petroleum Summit, NIPS, “If we do that we would collec- which held in Abuja, Usman not- tively move with the entire sector ed that many Nigerians are not to deliver on power. We need to ready to pay the commensurate industrialize just like other conti- fee for their gas consumption. nents because it is our right. We “If you consume and you don’t want to advocate that Africa has pay, you destroy the economy of the right to develop and we would the country. The IOCs are ready do it responsibly with the use of to produce gas, so long they can gas and renewable energy. “We be guaranteed a sustainable pay- Engr. Yusuf Usman have challenged ourselves that ment. And that speaks to some we would move the domestic of the issues. “At a certain time in additional power to the national market from the current level of the country, we were selling gas grid. Under my mandate, I am 1.3BCF to 5BCF. We can only do at 50 cent and we ended up with a to provide additional 5000MW that if we enable new power and mountain of debts. My message of power. I have to do that. “Like people pay for power. to operators and consumers is you heard, AKK is a goal and we For Bayelsa, we would make that we should be responsible in are going to build that pipeline, sure that we build a fertilizer our consumption. If we appropri- Ajaokuta to Kano. Those pipe- plant, gas-based industries. Very ately pay for what we consume, lines must have off-takers. In the soon Bayelsa will become one the demand in the domestic mar- process of building that pipeline of the industrial hubs in Nigeria. ket will significantly increase,” he we are going to put 1,350 MW in “You can only improve domestic said. Speaking on the Presiden- Abuja and the partnership with utilization of gas with infrastruc- tial mandate to produce 10,000 the US has given the dream a ture. That is why one of our man- megawatts, MW, he said, “The reality. We are going to build 900 dates is to build infrastructure President promised Nigerians MW in Kaduna as well as 1,350 and we have done it from the that he would provide 10,000MW MW in Kano. “We can only do commercial perspective. If you consume and you don’t pay, you destroy the economy of the country. The IOCs are ready to produce gas, so long they can be guaranteed a sustainable pay- ment. And that speaks to some of the issues. 5 Industry 02:20 Egina is a Technology Game Changer ...Total MD –By Fred Ojiegbe he Managing Director with over 46 million man-hours bilities.” He also explained that of Total Exploration and worked in Nigeria, including 6 partnership and collaboration TProduction Limited, Mike FPSO topside modules being are needed to achieve maximum Sangster has described the Egi- built and integrated in Nigeria, a results in the industry. “Total is na Floating Production Storage first for Africa. As we look for- proud to have been a reliable Offloading, FPSO, as an unprece- ward, Total is actively pursuing partner to Nigeria for over 60 dented technology game-chang- digital technologies and here years and actively involved in er in Nigeria’s oil industry. in Nigeria we have launched a downstream, midstream and Speaking at the Nigeria In- Digital Transformation Project upstream sectors. Total has 577 ternational Petroleum Summit, to improve our efficiency and petrol service stations spread NIPS, which was held recently reduce our costs by leveraging across the whole country, thus in Abuja, Sangster stated that our experience in artificial intelli- meeting the energy needs of Total Plc is focussed on digital gence, the internet of things, big millions of Nigerians. In mid- technologies to improve effi- data and machine learning. stream, we are a shareholder in ciency and reduce cost in oil “With our presence in 130 NLNG, where the company has production. He said, “Egina is a countries around the world, we recently taken FID on Train 7. In game-changer in terms of tech- are able to bring to Nigeria our upstream, we have significantly nology transfer and local content experience and technical capa- increased our production with With our presence in 130 countries around the world, we are able to bring to Nigeria our experience and technical capabilities.” He also explained that partner- ship and collaboration are needed to achieve maximum results in the industry. 6 Industry 02:20 especially in the North East to alleviate some of the depriva- tions caused by insurgency in that part of the country.