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.
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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. “Total has demonstrated its commit- ment to Nigeria with significant investments over recent years on our Joint Venture (JV) as- sets (OML58 Upgrade and Ofon Phase 2 in particular) in addition to the much acknowledged Egi- na. We are keen to continue to invest in Nigeria and to contrib- ute constructively to the ongo- ing debate about the Petroleum Industry Bill (PIB). “We welcome the efforts being made by the authorities to define a long term framework for the Oil and Gas In- dustry that provides clarity and Mike Sangster certainty, provides competitive terms and a win/win solution for the country and investors. We support the desire of the Hon- the start-up of the deepwater empowerment; health care de- ourable Minister to modernise Egina field with a production ca- livery, education, sports, and Petroleum Legislation, and wel- pacity of 200,000 barrels daily. infrastructure development in come the opportunity to engage “In addition to reducing the communities across the length with the authorities. A progres- carbon emissions from our oil and breadth of Nigeria. Our an- sive PIB could be the catalyst and gas activities, we are also nual spending on Corporate needed for a new wave of invest- investing in solar projects in Ni- Social Responsibility (CSR) is ment in Nigeria instead of other geria. “Along with NNPC and our in excess of 40 million USD. countries and hence contribute other partners, we have a robust Typically, last November, we to the sustainability of the Oil Corporate Social Responsibili- commissioned various projects and Gas Industry. ty portfolio that includes youth in all parts of the country, and
7 Industry 02:20 NCDMB, National Assembly brainstorm on Local Content …Board to record US$360m Annual Turnover from Partnerships
–By Danlami Nasir Isah
he Nigerian Content De- to current industry realities and velopment and Monitoring expand its scope to cover oth- TBoard (NCDMB) recently er key sectors of the economy. organised an onboarding capac- “Their report will be submitted ity building workshop for mem- and considered by our Commit- bers of the Senate Committee tees for further legislative ac- on Local Content and House of tion,” he added. Representatives Committee on In his remarks, Chairman of Nigerian Content Development the House of Representatives and Monitoring. Committee on Nigerian Content The two days retreat was held Development and Monitoring, Rt. in Lagos, with the theme “Build- Hon Legor Idagbo underscored ing Capacity for the need for improvement in the Effective Oversight Towards implementation of the Nigerian the Realization of the Objectives Content Act, with a view to in- of the Nigerian Oil and Gas Indus- creasing the contribution of the try Content Development (NOG- oil and gas sector to the nation’s ICD) Act) and its Amendment.” Gross Domestic Product (GDP). In his address, Chairman of Idagbo noted that the House the Senate Committee on Local Committee had a robust relation- Content, Senator Teslim Folar- Engr. Simbi Wabote ship with its Senate counterpart in stated that the retreat was and expressed hope that it would organized to enable the legisla- lead to tangible benefits for the tors have an in-depth knowledge of knowledge transfer, deepen- country. on the mandate of NCDMB, its ing in-country technical capacity, He announced that the com- governing Act, identify areas of increasing industry contribution mittees will commence their amendments and understand to the National Gross Domestic oversight functions immediately their oversight functions. Products (GDP) and facilitating after the retreat, so that Nigeri- He posited that effective en- access of Nigerian-made goods ans can derive maximum ben- forcement of the NOGICD Act and services to regional markets efits from Local Content imple- will enhance in-country value among others. mentation. creation and retention and gen- He promised that the National The Executive Secretary erate employment for Nigerians Assembly will continue to collab- NCDMB, Engr. Simbi Kesiye across the industry value chain, orate with NCDMB to understand Wabote remarked that it was rare especially now that revenue ac- its challenges and that of the in- for members of the two arms of cruable to the Federal Govern- dustry, with a view to providing parliament to come together for ment from other key sectors of necessary legislative support for capacity building. He said the the economy is dwindling. the Board to enforce the NOGICD positive dynamics exhibited by Folarin commended NCDMB Act. the legislators was a confirma- for recording landmark achieve- The committee chair con- tion they would work together ments in the last 10 years, which firmed that the two chambers for the advancement of Nigerian included the creation of an en- of the National Assembly have Content implementation. abling environment for indige- set up a Technical Committee to Delivering his paper which fo- nous companies to thrive in the commence a review of the NOG- cused on the “Implementation of Oil and Gas industry; promotion ICD Act, to increase its relevance Nigerian Content Act: the story
8 Industry 02:20
ES NCDMB, Engr. Simbi Wabote and Chairman Senate Committee on Local Content, Senator Teslim Falorin, Chairman House Committee on Local Content, Hon. Legor Idagbo and other members of Senate and House Committees observing National Anthem so far,” the Executive Secretary oil from used engine oil. sanctioned in the industry every indicated that NCDMB targeted Wabote also remarked that two years interval to ensure con- an annual turn-over of US$360m the Board’s implementation of tinuous use of capacities and ca- from its various partnerships in the Act had resulted in the reten- pabilities established in-country commercial ventures. tion of about US$9bn annually and sustainability and growth. These ventures include the from the average $20bn indus- He also canvassed for the 5,000 barrels per day Walter- try spent. He added that about involvement of relevant agen- smith Modular Refinery in Ibig- 9 million man-hours had been cies by government and private we, Imo State and the 12,000bpd achieved in training while indige- sector entities while negotiating Azikel Hydroskimming Modular nous players now own about 40 terms of foreign loans, to ensure Refinery in Bayelsa State. Other percent of marine vessels that due consideration of Local Con- partnerships include 400,000 operate in the oil and gas sector. tent requirements in the foreign units per day LPG Cylinders man- Dwelling on current issues af- loans and the attendant projects. ufacturing plant at Polaku, Bayel- fecting Local Content develop- The two-day workshop fea- sa state, a 168,000 metric tonne ment and ways to mitigate them, tured presentations on varied per annum loading and off-load- the Executive Secretary regretted topics around the Nigerian oil ing LPG terminal in Koko, Delta the drought of Final Investment and gas industry, Local Content State and 48,000 liters per day Decisions (FID) on major oil and initiatives, identified loopholes in facility in Port Harcourt, Rivers gas projects. He recommended the NOGICD Act and suggestions State for the production of base that one major project should be to address them.
He added that about 9 million man-hours had been achieved in training while indigenous players now own about 40 percent of marine vessels that operate in the oil and gas sector.
9 Industry 02:20
Aiteo Group: Local Conglomerate with International Pedigree
–By Gideon Osaka
he pivotal role oil and gas ment, average production was plays in the Nigerian econ- 23,000 bpd. But the company has Tomy is immeasurable. The since tripled this figure with peak sector contributes an estimated production of 90,000 b/d in just 56.8% of National revenue accord- one year after its acquisition of ing to the Central Bank of Nigeria OML 29, said to be sub-Sharan Af- (CBN) Quarterly Economic Report rica’s largest onshore oil bloc. Q4 2017-Q3 2019 and about 88% Aiteo Eastern E&P has been of foreign exchange earnings ac- the operator of the 97-km Nembe cording to the KPMG’s Industry Creek Trunk Line (NCTL), an indus- Insight report April, 2019. try-wide evacuation pipeline for Nigeria is therefore not isolated produced fluids covering much of from the current wave of global the country’s Eastern Delta region. energy transition that has largely The NCTL has become a strategic been driven by three key factors Dr. Benedict Peters national oil delivery infrastructure namely environmental, technolog- transporting crude from 6 produc- ical advancements and national Midstream and Downstream as- ers to the Bonny Crude Oil Termi- policy realignments. sets. nal. However, given the diverse ap- The company’s main subsidiary The company’s CEO, Benedict plications of hydrocarbon and its Aiteo Eastern Exploration and Pro- Peters recently highlighted several derivatives in support of human duction Company Ltd (Aiteo E&P) existing and developing projects civilization and industrialization, started up as an SPV to participate that could potentially grow Aiteo’s fossils will continue to play a dom- in the international oil companies asset production to over 150,000 inant role in the global energy mix (IOC) asset divestment exercise of b/d and 200 million standard cubic in the foreseeable future. 2014. feet per day (MMscfd). Consequently, there is still a Aiteo Eastern E&P emerged the He said: “Our outlook is bright window of opportunity for Nigeria winner of the competitive bid for with three producing oil fields and to realize its hydrocarbon target of 45% private stake held by Shell viable crude exports via Bonny 3 million barrels per day (b/d) pro- (30%), TOTAL (10%) and AGIP (5%) terminal. We also have contin- duction and 40 billion barrels of oil in OML 29 and the Nembe Creek gent resources to appraise and reserves by 2025. Trunk Line (NCTL) under the NN- prospective ones to explore in the These national objectives are PC-SPDC Joint Venture. medium-to-long term, including part of what is driving an indig- By virtue of this successful ac- full 3D coverage and 2P reserves enous integrated energy group quisition, Aiteo E&P became the at 1.6 barrels.” called Aiteo. operator of the NNPC-Aiteo Joint Valuechain reports that Aiteo 20 years ago, a Nigerian en- Venture. OML 29, located in the E&P is one of the few indigenous trepreneur, Mr. Benedict Peters swamp of the Niger Delta has 6 oil companies working assiduous- founded a company called Sig- flow stations and 4 Associated ly towards significant contribution mund Communecci trading in Gas Gathering Compressor Sta- to the realisation of Nigeria’s 3m refined products. That company tions. b/d production target and 40 bil- became the building block of what The company acquired OML 29 lion barrels of reserve estimates is today known as the Aiteo Group. in September, 2015 when oil ma- by 2025. Aiteo Group has diverse inter- jor Shell Petroleum Development Speaking in an industry address ests which cut across the energy Company (SPDC) fully exited the at the recently concluded Nigeria value chain today; with Upstream, facility. At the time of the divest- International Petroleum Summit
10 Industry 02:20
Mr Peters said: “Our outlook is bright with three producing oil fields and viable crude exports via Bonny terminal. We also have contingent resources to appraise and prospective ones to explore in the medium-to-long term, including full 3D coverage and 2P reserves at 1.6 barrels.”
(NIPS), the GMD of Aiteo Group, ulatory agencies as well as com- Victor Okoronkwo, said that with munity representatives, revealed the continued reliance and high that 98 per cent of all incidences demand for oil and gas, prices for were attributable to third-party in- these commodities will remain fractions alone. exposed to geopolitical events, cli- ‘’Over the last four years, more mate considerations, adding that than 200 shut down days have the current coronavirus outbreak been recorded on the NCTL,” the still poses challenges to the indus- company said in a 2019 state- try. ment. The imperatives for success, Despite these daunting chal- according to him, will therefore be lenges the company has set am- predicated on amongst other fac- bitious targets for the future. Ait- tors, creating a stable operating eo last year announced plans to environment as well as establish- spend as much as $5 billion to Sir Victor Okoronkwo ing robust regulatory and fiscal boost its oil and natural gas pro- frameworks. duction in the next five years. oldest football tournament, now “Key energy industry reforms The company also plans to drill renamed Aiteo Cup. On the conti- will be critical in boosting investor new oil wells and re-open existing nental stage, Aiteo partnered with confidence and attracting other- ones as it seeks to raise produc- the Confederation of African Foot- wise elusive investments into Ni- tion. Aiteo currently pumps about ball (CAF) to sponsor the African geria,” he said. 90,000 barrels of oil a day and Football Awards in January 2018. Unfortunately, the company like forecasts production of 250,000 In recognition of the company’s every other indigenous E&P com- barrels in five years under the ground-breaking contributions to pany in the country has suffered planned expansion. Daily natural oil and gas development in Nigeria its share of the harsh operating gas production would increase six- Aiteo Group has bagged several environment. fold to 300 million standard cubic national and international awards Aiteo has been hit hard by the feet in the period. like the indigenous oil and gas slew of attacks on oil and gas In the Community Corporate So- company of the year award at the infrastructure in Nigeria, which cial Responsibility (CSR) area, Ait- Nigerian Oil and Gas (NOG) con- forced overseas investors to shut eo gives back to the local commu- ference, Nigeria’s leading annual down operations occasionally. nities in which it operates through oil and gas industry event which According to Okoronkwo, shut- grants and donations, seed capital draws major players across the Ni- ting down the Nembe Creek Trunk and philanthropy. It has also sup- gerian Energy sector. Line (NCTL) at a time cost the ported several social investment company, as well as the Nigerian projects, including a special focus government, a huge US$2 billion in on supporting the study of engi- revenue over a two year period. neering in host communities and Despite the company’s signifi- sports. cant investment in security, tech- In sports, Aiteo has become the nology and civic engagements, the foremost financier of football in destructive pattern of pipeline van- the country after a string of con- dalism persists. tributions to the Nigerian Football For instance, Aiteo in a recent Federation (NFF) and the Super statement said that findings from Eagles. To support local football, Joint Investigative Visits (JIVs) in Aiteo took over the sponsorship 2019, comprising security and reg- of the Federation Cup, Nigeria’s
11 Industry 02:20
No Reform, No Cash: IOCs Hold out for PIB –By Fred Ojiegbe unanimous that removing regulato- ry uncertainty is crucial for invest- ment, some companies also hope a new law will make taxes and fees more transparent. Nigeria last year hiked offshore oil royalties, changes companies said rendered billions in planned investments unprofitable. A VAT increase passed last month add- ed costs too. Consultancy Wood Mackenzie said offshore projects would, at a minimum, be delayed. The changes contrast those in some other African countries that Secretary to the Government of the Federation, Boss Mustapha (middle), are making exploration terms HMSPR, Chief Timipre Sylva (left) observing the national anthem during the 3rd more attractive as they compete NIPS opening ceremony in Abuja recently for a limited pool of capital. Lower oil prices and concerns about the he Petroleum Industry Bill, cision on a multi-billion expansion, future of fossil fuel because of cli- PIB, which has been in the known as Bonga Southwest, by mate change are curbing the desire works for about 20 years ap- T Royal Dutch Shell and its partners. to invest. pears to be the major setback for Total Chief Executive, Patrick Pouy- It was gathered from some in- investment in the oil and gas sec- anne, said he took a forceful mes- dustry stakeholders that the Group tor, as international oil companies, sage to President Muhammadu Managing Director of Nigerian IOCs, complain of tax increases and Buhari, who holds the oil portfolio. National Petroleum Corporation, regulatory uncertainties. “My message there was please lift NNPC, Mele Kyari had listened to Nigeria has not carried out a full the uncertainty, because today op- their concerns. “We have given revamp of the law underpinning its erators in Nigeria are waiting, which them (the Nigerian government) a oil and gas sector since the 1960s. is not good for the Nigerian econo- tough message, and that message Piecemeal tax hikes, and a grow- my,” Pouyanne said. “It is not good has been received,” an international ing lack of certainty around terms, for investments in the country, so oil executive said, asking not to be have made companies wary. Gov- we are waiting.” named. Speaking at the just end- ernment officials say a sweeping Minister of State for Petroleum ed Nigeria International Petroleum overhaul is imminent and will be Resources, Timipre Sylva, said the Summit in Abuja, Sylva said now presented to the National Assembly revised law governing oil and gas the congress and the presidency next week, which for industry lead- - dubbed the Petroleum Industries are held by the same party, it would ers is not a moment too soon. “It’d Bill (PIB) would be presented to the be easier to avoid the bill getting be challenging,” Jeffrey Ewing, man- National Assembly this February. stuck in “quicksand”. aging director of Chevron Nigeria, The law governs virtually all terms Kyari also hinted that there would said of investing without regulatory of oil and gas from who allocates be a clear fiscal landscape by June. clarity. “They’re competing against coveted exploration licences to “Investors are not NGOs. When they the world.” Chevron is selling assets where money goes once it lands in are not sure of making their mon- in Nigeria. Total’s stake in the profit- government coffers. A draft mea- ey, they will walk away,” Kyari said, able Bonga offshore field is also on sure is circulating divided into two adding: “They will be assured that the block, while ExxonMobil is look- bills, one covering fiscal terms and when they invest they can recover ing to shed Nigerian fields as part the other the share that goes direct- their cost and they will make their of a global retrenchment strategy. ly to oil-producing communities. margins.” Fiscal uncertainty has delayed a de- Both topics are contentious. While
12 For more information, contact the Coordinator, 0803 081 1892 Industry 02:20
Capacity Utilisation Bane of Local Content —Stakeholders ...As NASS plans to amend NOGIC Act –By Gideon Osaka
he local content policy of ing seriously to amend the the Federal Government Nigerian Oil and Gas Industry Tmay not achieve the ex- Content Development, NOGICD pected results if the issue of ca- Act, so as to give the Nigerian pacity utilisation is not urgently Content Development and Mon- addressed, oil industry stake- itoring Board, NCDMB, power of holders have opined. enforcement. “The focus area Speaking at the Nigerian In- for the National Assembly is ternational Petroleum Summit, to amend the NOGIC Act. The NIPS, Professor Wumi Ilebare, focus is to give NCDMB more African Region Director, Society power of enforcement. There of Petroleum Engineers (SPE), were some clauses that cre- stated that Nigeria is not suffer- ated some lacuna. We want to ing from lack of capacity but lo- amend those clauses to fur- cal capacity utilisation. He said, ther strengthen the board. The “Nigeria is not suffering from activities of the board will also lack of capacity. What Nigeria Hon. Legor Idagbo begin to cover some aspects is suffering from to derive ben- of the midstream and down- efits from local content, is local stream operations. That way capacity utilisation. We need to necessary and needed services. we are able to trap comprehen- move away from equalisation “All over the world, Nigeria’s lo- sively the complete value chain of everything. You cannot pay cal content has been a banner. in the sector in-country.” Idag- a professor of petroleum engi- I have had the privilege of trav- bo lamented the gap currently neering the same amount you eling to many oil producing Af- being experienced in the local pay a professor of history. You rican countries. They said they content policy. “There is still have to look at so many things. have learnt something from Ni- gap in the local content policy. You need to move away from geria’s local content policy and 65 percent of Nigeria’s revenue centralisation of most of the they were fast. When it comes comes from the oil and gas things we are doing if research to research and development, sector, whereas the GDP con- and development are to take the place for cheap labour is the tribution to the economy is less us to the next level. You must university. If the universities are than 10 percent. Angola is Afri- find a way to create incentive not fully developed, to be able ca’s second-largest producer of to make people study more dif- to produce capable hands to oil. The GDP contribution from ficult subjects that are required fill the gap, all the conferences the oil and gas sector is about to fill the gaps. and the events we organise are 50 percent. That means they “There must be partnership mere jamborees.” are able to trap in-country the if Nigeria wants to get the full Also speaking, Hon. Legor complete value chain from the benefits of local content policy. Idagbo, Chairman, Nigerian sector. That is why we need to Local content is not about local Content Development and take other steps and make fur- pockets. It is not about my peo- Monitoring Committee, House ther legislation to correct some ple. It is about who is there that of Representatives stated that of those gaps. has the capacity to provide the the National Assembly is work-
14 Industry 02:20
Provision of N450bn Fuel Subsidy Stokes Fresh Deregulation Fire
– By Benjamin Ike
nless immediate moves than N305 billion it budgeted for average of N1.06 billion on daily are undertaken to address fuel subsidy in 2018. The Min- consumption. Uthe imbalance between ister said the provision of N450 According to official data, the the actual landing cost and re- billion was made for under-re- landing cost of petrol as at No- tail pump price of fuel across covery of cost in respect of the vember 2018 was N144.7 per the country, Nigeria’s financial importation of Premium Motor litre, with distribution margin at crises may ultimately take a Spirit (PMS), popularly called N19.37 per litre. Under this re- turn for the worse in the years petrol. That revelation came af- gime, the consolidated cost of ahead. This apprehension came ter the Petroleum Products Pric- petrol (landing and distribution on the heels of a recent disclo- ing Regulatory Agency (PPPRA) cost) stands at N164.07 per li- sure by the Minister of Finance, in its November 2019 report dis- tre even`though the NNPC takes Budget and National Planning, closed that the Nigerian National the distribution costs off the Mrs. Zainab Ahmed, that the Petroleum Corporation (NNPC) private marketers as subsidy. In Federal Government was set- subsidised the cost of petrol by Nigeria, petrol is sold at a fixed ting aside the sum of N450 bil- N19.37 per litre with the national price of N145 per litre at filling
Panelists at a Ministerial session during the recently concluded NIPS
lion in the 2020 budget for fuel daily consumption of petrol put stations across the country. In subsidy. This mind-boggling fig- at 55.8 million litres, and the na- May, 2019, the Senate approved ure is about N145 billion higher tional oil company spending an N129 billion as subsidy pay-
According to official data, the landing cost of petrol as at November 2018 was N144.7 per litre, with distri- bution margin at N19.37 per litre. Under this regime, the consolidated cost of petrol (landing and distribu- tion cost) stands at N164.07 per litre even`though the NNPC takes the distribution costs off the private mar- keters as subsidy.
15 Industry 02:20
Various chief executives of oil companies in a group photograph during the 3rd NIPS opening ceremony in Abuja recently ment to cover debts to local oil optimal capacity, they decried gin for petrol in all the places he firms related to fuel subsidy pro- a situation whereby crude oil is has worked and is equally the gramme. This approval came exported in return for imported most fragmented, he posited as landing cost of petrol rose to refined products as an unsus- that “despite a legacy nameplate N180 per litre, N35 higher than tainable economic model. refinery capacity of 445,000 the official pump price of N145 According to them, the con- barrels per day (bpd) with oper- at the end of April 2019. But the tinuous payment of subsidy by ational challenges keeping pro- recent spike in subsidy payment the Federal Government will duction below 15 per cent, Nige- was expected as a former Min- further cripple its already fragile ria has historically imported over ister of State for Petroleum Re- economy as low investments by 80 per cent of refined products. sources, Dr. Ibe Kachikwu, had operators would aggravate un- The enhanced refining capaci- earlier argued that the rise in derdevelopment and shrink the ty from imminent conventional global crude oil prices after 2016 economy. and modular refineries would hike in petrol price brought back In his contribution, Manag- shift Nigeria from import-driven subsidy. The NNPC, the sole im- ing Director of OVH Energy, an supply to self-sufficiency which porter of petrol into the country Oando Licensee, Mr. Hubb Stok- is a catalyst for the downstream for about two years after private man, lamented that the NNPC’s industry. If Nigeria wants to oil marketers withdrew from role as sole importer of almost capture the full benefits of the the importation of the product, 10 per cent of Nigeria’s petrol downstream value chain after bears the burden of subsidising needs, contrasts sharply with the enhanced refining capaci- the product. The stakeholders its statutory mandate as a reg- ty comes on-stream, the other were recently at the Nigeria Pe- ulator and has the capacity to downstream sectors need to troleum Summit (NIPS) to dis- stifle the industry. Worried that use this short time window to sect the effects of subsidy on Nigeria may not be able to reap make improvements in custom- the economy, advising the Fed- the full benefits of the -down er experience and safety and eral Government to muster the stream sector under the current operational standards: driven political will to deregulate the arrangement except it deregu- by technology. This will only be downstream sector to free up lates, he argued that deregula- possible through major invest- the funds to develop other criti- tion will free up the market both ments which are not feasible at cal sectors of the economy. on the supply and demand end, current margins”. However, while urging the leading to robust investments. For his part, the Executive Federal Government to ensure Stockman frowned at the fact Chairman, Integrated Oil and that its refineries are working at that Nigeria has the lowest mar- Gas Limited, Emmanuel Ihen-
16 Industry 02:20 acho, has called on the federal to the fact that the prospects re- government to enable more re- main bright for the downstream fineries to be built so as to max- sector. According to him, some imize the benefits of oil produc- independent oil marketers are tion in the country. Ihenacho, a beginning to play big and are former Minister of Interior. getting closer to becoming ma- “We are not investing enough jor marketers, a development in refineries. Instead of waiting that signals the sector is not for OPEC to give us a quota of entirely distressed as being 2 million barrels per day (bpd), speculated in some quarters. we can produce 4 million barrels Adeyemi said government is al- per day, mbpd and build refiner- ready talking to investors to key ies to refine and add value to our into pipeline infrastructure to crude” he stated. Ihenacho com- Alh. Ahmed Boboi help assist in its quest for effi- pared the Nigeria downstream fuel for moving people around cient and safe-delivery of petro- market structure and that of is a social issue or an econom- leum products, including CNG the United States of America, a ic one. Accordingly to him, if the and LPG. He revealed that plans non-member of the Organization country decides to make fuel a are in to gear to ensure that LPG of Petroleum Exporting Coun- social welfare contact, then Ni- consumption is ramped up to tries (OPEC). “The US is has a gerians must be ready to make 5000 million metric tonnes from population of 327 million with a more and more resources avail- the current 1000 metric tonnes. total of 139 refineries with the able to sustain petrol price at Executive Secretary and Chief refining capacity of 16.7mbpd. the current level which he said is Executive Officer, Petroleum Texas, a state in the US has a no longer sustainable. Oyebanji Equalisation Fund (PEF), Mr. population of 28.7 million with said deregulation is not about Ahmed Boboi, could not agree 47 refineries and a refining ca- closing down government reg- more. According to him the PEF pacity of 5.7 million barrels per ulatory agencies but rather, the through payment of bridging day. Compare these numbers power to unleash the potential cost has continued to ensure with Nigeria that has a popula- of the private sector to grow that petrol is sold for N145 per tion of 200 million people with 4 and develop the industry. In- litre across the country. “The in- refineries with installed refining sisting that if the country does tervention of PEF has ensured capacity of 520,000bpd but is not create the right investment that industries in the remotest only able to refine 5 per cent of climate, products even from the parts of the country continue installed capacity.” He decried Dangote refinery will eventually to survive because without PEF, the plight of the country that continue to find its way outside there would have been high un- has not been able to get things the country because it would be employment rate because many right despite having been in the more profitable for smugglers to SMEs would have closed shop.” oil and gas business for over 60 continue to do their trade to the Said Boboi who was represent- years. He further implored the detriment of the economy. ed by Goddy Nnadi, General government to take a second In his submission, the Chief Manager, Corporate Services, look at the market structure in Operating Officer (COO) Down- the support of PEF has helped terms of cost and efficiency. stream, NNPC, Mr. Tunji Ad- to reduce rural-urban migration “Open market competition cre- eyemi opined that in line with since petroleum products are ates efficiency in the system. In the policy directive of the Feder- available in every nook and cran- that vein, government must take al Government, the Corporation ny of the country, adding that a look at the subsidy regime and will continue to subsidise petrol plans are on to include LPG as regulation. The subsidies do not until otherwise directed, main- one of the core areas of focus really benefit the common peo- taining that the role of NNPC is and intervention by PEF by en- ple” he said. to ensure that there is adequate suring that it is available in rural Managing Director and Chief energy security for Nigerians, areas at a cheaper cost in a bid Executive Officer of 11 Plc, for- despite the challenges of the en- to discourage the use of dirty merly Mobil Oil Nigeria Plc, Mr. vironment, stressing that recent fuel and reduce environmental Tunji Oyebanji, said Nigeria couple of mergers and acquisi- degradation. must make-up its mind whether tions, in the sector are pointers
17 Industry 02:20
Inside Waltersmith Modular Refinery –By Gideon Osaka
igeria’s effort to ensure banking on the coming on ment for public-private invest- local sufficiency in re- stream of the 650,000 barrels a ment in modular refineries, the Nfined petroleum products day Dangote refinery to solve its government had also approved has been severally affected by refining challenges. Attempts total waiver (100 per cent) on the inability of the country’s re- have been made by previous custom duties for equipment fineries to work at full capacity. and current administration to imported for modular refinery Statistics indicates that Ni- drive private investments in projects, forecasting that with geria currently has a 445,000 modular refineries before the its efforts at least some mod- barrels a day refining capacity Dangote refinery is eventually ular refineries when completed solely accounted for by the Ni- ready. could add over 100,000 barrels geria National Petroleum Cor- It would be recalled that over a day refining capacity in-coun- poration (NNPC) four separate 45 private modular refinery li- try. refineries that operate well be- censes were issued between Despite all these efforts, not low capacity. 2008 and 2018. too many modular refineries According to Valuechain’s Apart from the licences and have been commissioned. findings, the government is putting the conducive environ- Although, Nigeria had only
18 Industry 02:20 one functioning modular refin- Ibigwe marginal fields. ery which is the 1,000 barrels The project owners, Walter- per day (bpd) Niger Delta Pe- smith Petroman Oil Limited (70 troleum Resources Ltd. (NDPR) per cent) and NCDMB (30 per refinery in Ogbelle, Rivers State, cent) have worked assiduous- construction recently started ly to ensure the phase 1 deliv- on at least six modular refinery ery timeline which has been sites. pegged at 18 months. Some of the modular refiner- The phase 1 of the refin- ies where construction recently ery is expected to contribute started are the 7,000 bpd OPAC about 271 million litres of re- modular refinery at Kwale, Del- fined products including Diesel, ta State; the Ikwe-Onna refinery Naphtha, HFO and Kerosene in Akwa Ibom; Azikel Refinery, annually to the domestic mar- Bayelsa and AIPCC refinery, Abdulrazaq Isah, CEO, Waltersmith ket and create both direct and Petroman Oil Ltd Edo. indirect jobs particularly within Others like Petrolex Refinery, development of an additional the host communities. Ijebu Ode; African Refinery, Port 25,000 bpd. Final Investment Decision Harcourt and Southfield Refin- The fundamental reasons for (FID) for the refinery project ery, Ologbo, have either com- embarking on the Waltersmith was taken in September 2018 pleted detailed engineering, modular refinery was not far- with an 18 month delivery time secured modules to relocate or fetched. from November 2018 to May the equipment are being fab- Waltersmith Petroman Oil 2020, for Phase 1. ricated at the manufacturer’s Limited which became a whol- Phase 2 which commenced yard, according to the DPR on ly owned Nigerian company in with the Front End Engineering its website. 2001 had in 2003, participated Design (FEED), is expected to However, one of the modular in the Nigerian Marginal Oil field be delivered this month or early refineries under construction licensing round for indigenous next month while ground break- whose completion is going companies and was awarded ing for the 25000 bpd refinery ahead of the original schedule the Ibigwe field located in Oil will take place in May 2020. is the 5000 (Phase 1) modular Mining Lease (OML) 16 by the There are plans to further ex- refinery being developed by a Federal Government. To date, pand the plant to 30000 bpd. wholly-owned Nigerian inte- the company has produced grated energy company Walter- over 12 million barrels of crude The Minister of State for Pe- smith Refining & Petrochemical oil from the Ibigwe field while troleum Resources, Chief Timi- Company Limited in Imo state. current production averages pre Sylva, recently visited the The initial target was to deliver +/- 7,000 bpd. The company Waltersmith modular refinery in the modular refinery project in has set production targets of Ohaji/Egbema LGA, Imo State two years, but it is now on track 100,000 barrels of oil per day to inspect ongoing construc- to be completed in 18 months. (bpd) and 500 million standard tion at the refinery which is at The refinery is one of those cubic feet per day (mmscf/d) of an advanced completion status the government forecasts that gas by 2026. of over 90 per cent. once it comes on stream should As part of its aggressive The refinery is a partner- be able to close the petroleum growth strategy in line with its ship between Waltersmith product supply-demand gap. long-term goals and objectives (70%) and NCDMB (30%) with In October 2018, Waltersmith the Waltersmith modular refin- NCDMB providing major guid- performed the ground-break- ery became important to stem ance and contributions on Ni- ing ceremony of the 5000 bpd the crude loss resulting from gerian Content, Technical and modular refinery and has al- crude handling and the cost of Commercial issues and Corpo- ready commenced work on the crude transportation from the rate Governance. That FID for
19 Industry 01:20
the Refinery Project was tak- derive increased value from the torial Guinea would also under- en in September 2018 with an hydrocarbon resources. study the commercial aspects 18-month Delivery time from The Minister of Mines and of the modular refinery project November 2018 to May 2020, Hydrocarbons, Equatorial to ensure that its planned in- for Phase 1. Guinea, Gabriel Mbaga Obiang vestments would be economi- Phase 1 of the project is ex- Lima recently visited the Wal- cally viable. pected to create several direct tersmith modular refinery at He expressed delight that a and indirect jobs for the host Ibigwe in Imo State saying that new dawn had come in the Af- community and contribute an his country should be able to rican oil industry and nations estimated 271 million liters of replicate the refinery based on needed to start utilizing their refined products including Die- the cooperation and experience crude oil resources more effi- sel, Naptha, heavy fuel oil (HFO) between Equatorial Guinea, ciently. ”We cannot continue and kerosene annually to the Waltersmith and the Nigerian to export crude oil. We should domestic market. petroleum industry. start processing our products Following the successes Noting that Nigeria had vast and we are watching what Ni- recorded with the commence- experience in the hydrocarbons geria is doing and we want to ment of construction of the industry, Lima added that Equa- replicate them.” modular refinery and its- po tential expansion, Equatorial Guinea plans to replicate the initiative, so it can stop the wholesome export of its crude oil and begin to add value to the resources. To this end, the Nigerian Con- tent Development and Monitor- ing Board (NCDMB) and Walter- smith Petroleum Oil Limited will assist the country to develop modular refineries in the cen- tral African nation, so it can pro- cess some of its crude oil and
20
For enquiries, call: 0705 500 1000 Star of the Industry 02:20
Captain Emmanuel Iheanacho (rtd) Executive Chairman, Integrated Oil and Gas Limited
23 Star of the Industry 02:20
Captain Emmanuel Iheanacho (rtd) Executive Chairman, Integrated Oil and Gas Limited
–By Danlami Nasir Isah
As the Chairman of the Integrated Oil and Gas Lim- ited, he is responsible for the development of the company’s business which includes the conception of necessary cor- porate action plans, the management of the human and material resources of the organization and the direction of collective energies of the organization towards the achieve- ment of the company’s goals and objectives.
mmanuel Iheanacho was port, and also earned a Master of was appointed Nigerian Minister born in Imo State. He attend- Business Administration (MBA) of Interior in 2010, when Pres- Eed the University of Wales, degree in General Management ident Goodluck Jonathan was Cardiff, United Kingdom where from the University of Bradford. acting for President Umaru Musa he obtained a Master of Science Emmanuel Iheanacho is a re- Yar’Adua. degree in International Trans- tired Merchant Navy Captain who Captain E. Ihenacho is an expe-
24 Star of the Industry 02:20
rienced maritime executive and tent policy and greater fi nancial inaugurated the Nigeria Civil De- industry veteran of many years support from the government to fence College for Peace Disaster professional standing. Capt. build up the Nigerian shipping Management, Katsina, an institu- Ihenacho, an ex-ship master, is a industry, including creation of a tion for training security person- subject of international shipping national carrier. nel. and general management and As Vice President of the Indig- As the Chairman of the Inte- regularly entertains consultation enous Ship Owners Association grated Oil and Gas Limited, he is in these fi elds. of Nigeria, in August 2007 he responsible for the development He also holds Masters De- praised the Nigerian Maritime of the company’s business which grees in shipping management Administration and Safety Agen- includes the conception of neces- from the University of Wales and cy, and called for stability in its sary corporate action plans, the Bradford, England and is also a leadership. management of the human and member Chartered Institute of Shortly after being appointed material resources of the organi- Transport and the Nautical Insti- Minister of Interior, Iheanacho zation and the direction of collec- tute. toured the Medium Security Pris- tive energies of the organization Iheanacho became Managing on in Kuje, Abuja, where he found towards the achievement of the Director of Genesis Worldwide many unfi nished projects and company’s goals and objectives. Shipping Company, and Chair- demanded action. He also said It is the acknowledgement of his man/CEO of Integrated Oil and his ministry would work with the performance in, and outstanding Gas. As Executive Secretary of ministry of justice to speed up contributions to the maritime in- the Nigerian Shipping Compa- the trials of over 30,000 prison dustry that Captain E. Ihenacho nies Association, in July 2004 inmates still waiting trial, and to was awarded the National Mari- he praised the cabotage law that allow for release of inmates who time Merit Award of “BEST MAS- had been passed a few years ear- had not been tried after three or TER MARINER IN NIGERIA” for lier, but called for a more consis- more years in jail. In April 2010 he the year 1999.
25 Industry 02:20
Despite Disruptions in Nigeria, Libya, Global Oil Demand Expected to Drop First Time in a Decade –By Gideon Osaka
lobal oil demand is ex- about the impact.” World fuel Energy Information Administra- pected to drop this quar- consumption which had previ- tion also cut its demand out- Gter for the first time in ously been expected to grow by look due to the virus. The EIA over a decade as the coronavi- 800,000 barrels a day during the lowered its first quarter global rus batters China’s economy, three-month period, compared petroleum and liquids consump- the International Energy Agency, with a year earlier, will instead tion forecast by 880,000 barrels IEA has said. contract by 435,000 a day, the a day. U.S. crude futures have It explained that given the IEA said in its monthly oil mar- fallen 17 percent this year as abundance of supply, disrup- ket report. For 2020 as a whole, traders assessed the impact of tions in the Organisation of Pe- the virus will curb annual growth the epidemic. Consumers are troleum Exporting Countries, in global consumption by about unlikely to benefit from the drop OPEC, members such as Libya 30 percent to 825,000 barrels a in fuel prices because the dis- and Nigeria are having little im- day, the lowest since 2011. The ease will inflict damage on the pact on prices. According to the effects will be more significant wider economy, the IEA said. IEA, the new estimates show than those of the 2003 SARS The outbreak has prompted that oil markets face a signifi- epidemic because of China’s Saudi Arabia, the world’s largest cant surplus despite the latest increased importance and inte- oil exporter, to push its allies in production cuts by OPEC and gration within the world econo- the Organization of Petroleum its partners. Crude already sank my. Exporting Countries and beyond to a one-year low below $60 The outbreak has shuttered to consider an emergency meet- a barrel last week and the im- businesses and prompted the ing and further production cuts. pact of the epidemic will be felt quarantine of tens of millions However, Russia, the kingdom’s throughout the year. “Demand of people in China, the world’s most important partner in man- has been hit hard by the novel biggest crude importer. The aging supplies, has so far resist- coronavirus and the widespread country accounted for about ed the initiative. Even though shutdown of China’s economy,” 75 percent of last year’s oil-de- the group launched new supply the Paris-based IEA said. “The mand growth, according to the curbs at the start of this year, crisis is ongoing and at this IEA, which advises most major the slump in demand threatens stage, it is hard to be precise economies. Last week, the U.S. markets with a surplus of about 1.7 million barrels a day during the first quarter and 560,000 in the second. Last month, OPEC was already pumping the least crude since the financial crisis of 2009, according to the IEA. The OPEC+ alliance had already faced an oversupply in the first half of 2020 because of the on- going output surge from U.S. shale-oil drillers, the agency said. That industry is likely to re- main resilient against the price slump until later in the year, it predicted.
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Payment should be made to MB DOT COM Media Associates, Access Bank Plc, Account No. 007-4244-967. Terms and conditions apply. Cover Story 02:20 National Gas Network Code Activates Gas Development
–By Saidu Abubakar
arget benefi ts of hosting the faces of stakeholders of the Its provisions allow a window the recently concluded oil and gas sector. For instance, of six months for legacy agree- T2020 Nigerian Internation- Minister of State for Petroleum ments to migrate onto the net- al Petroleum Summit (NIPS) in Resources, Chief Timipre Syl- work code while new and intend- the Nigeria’s capital city of Abu- va, used the opportunity of the ing agreements are expected to ja cannot be over-emphasized. occasion to launch the Nation- align with the new code immedi- Though Valuechain Magazine al Gas Transportation Network ately. isn’t aiming at enumerating such Code which stipulates terms and Speaking on the importance benefi ts, it is however, imperative guidelines for gas transportation, of the code, Mr. Abel Nsa, As- to harp on one of the cruxes of specifi cally applicable to gas sistant Director, Department of the occasion that places Nigeria producers, shippers and their Petroleum Resources (DPR), ex- in a better stead to put smiles in agents. plained that the network code
28 Secretary to the Government of the Federation, Boss GMD NNPC, Mele Kyari in handshake with the Mustapha (right) with the HMSPR, Chief Timipre Sylva (left) representative of the Senate President, Sen. Ahmed Lawan
Sen. George Akume sitting with another guest Perm Sec. Ministry of Petroleum Resources, Mr. Bitrus Bako Nabasu (right) sitting with another guest is a set of rules and contractual the launching of the code, add- of the Nigerian Gas Company framework between producers ing that it will help Nigeria be- (NGC) noted that his company and transporters. come a mature gas market. “The has been upgrading its facilities “It provides transparency and code will attract more investors in expectation of the launch- a level playing fi eld for every- into pipeline infrastructure,” said ing of the network code. “We one who wants to come into the Joe-Ezigbo. are making sure that metering gas system. It is like a protocol Up till now, the Nigerian Gas is available at every point in the to move gas within the system,” Company (NGC) has remained a network. The Nigerian Gas Com- Nsa said. sole operator providing pipeline pany is very much aware of its Mrs Audrey Joe-Ezigbo, Pres- infrastructure in the Nigerian gas role in the implementation of the ident of the Nigerian Gas As- market. network code,” Jamari stated. sociation (NGA), expressed the In his own contribution, Dr. Sa- According to data from the pleasure of her association at lihu Jamari, Managing Director DPR, Nigeria has around 202
Also during the summit, the Group Managing Director of the Nigerian National Petroleum Corpo- ration (NNPC), Mallam Mele Kolo Kyari, harped on the need for African countries to focus on providing structures that will ensure energy security for their cit- izens. He said the NNPC has a framework that works towards ensuring energy security in Nigeria.
29 Cover Story 02:20
According to data from the DPR, Nigeria has around 202 trillion cubic feet (TCF) of proven gas reserves plus about 600 TCF unproven gas reserves. Over the years, the country’s relatively smaller oil reserves have been the ma- jor focus for government and IOCs in the country, who find it easier and more profitable to produce oil rather than gas. Government, in recent years, stepped up its effort to support gas development, grow the economy by opening the gas market through export and encourage domestic use of gas in power generation and household use. trillion cubic feet (TCF) of prov- Nigerian National Petroleum Cor- however, noted that hydrocar- en gas reserves plus about 600 poration (NNPC), Mallam Mele bons will continue to form the TCF unproven gas reserves. Over Kolo Kyari, harped on the need larger part of the energy mix in the years, the country’s relative- for African countries to focus the foreseeable future. ly smaller oil reserves have been on providing structures that will “Several researches continue the major focus for government ensure energy security for their to confirm that by 2040, renew- and IOCs in the country, who find citizens. He said the NNPC has ables will be contributing about it easier and more profitable to a framework that works towards 20 percent of the global energy produce oil rather than gas. Gov- ensuring energy security in Nige- mix. This implies that fossil fu- ernment, in recent years, stepped ria. els will still contribute at least 70 up its effort to support gas devel- “African countries must know percent,” he said. opment, grow the economy by that each must focus on building He therefore urged African opening the gas market through structures that ensure energy countries, who are still mostly export and encourage domestic security for the citizens. NNPC underdeveloped, to continue to use of gas in power generation is committed to that and has a utilize the hydrocarbon resourc- and household use. framework to make sure that the es available to them to develop needed energy is available for the energy sources for their popu- African Countries urged to Pro- needs of the country,” he stated. lace. vide Structures for Energy Se- The national oil company boss “The focus must be in mak- curity acknowledged the global clamor ing sure that the energy is clean. Also during the summit, the for energy transition from fossil We have to use what we have. Group Managing Director of the fuels to renewable sources but, Today, oil is being found in unex-
Mele Kyari Omar Farooq Audrey Joe-Ezigbo
30 Cover Story 02:20
Ex. Gov of Bauchi State, Sen. Bala Mohammed and Hon. Min HMS Health, Sen. Olorunnimbe Mamora (right) with a guest of Women Affairs, Dame Pauline Tallen pected places. This contributes selling commodities but on con- technology is also to check the to the growth of middle class verting the hydrocarbons into attack of cyber security issues in consumers. And so demand for consumable products,” Nwosu order to make the industry more fuel will continue with increase stated. secure and safe,” David said. in population and prosperity. Senior Account Representa- The session highlighted the Global demands will remain over tive of Huawei Enterprise Ener- impact of technology, policy, so- 100 million barrels per day” he gy Business, Amusa Babatunde cial, and changes in business said, adding that African coun- Adeyemi, said that legislation is model on the demand and sup- tries should focus, not solely on important in addressing the is- ply sides of the oil and gas busi- the clamour for renewables but sues of data vulnerability in the ness. It also suggested plausible largely on the need to deliver en- industry, adding that the ability of scenarios that policy makers can ergy for the development of their the different technologies used adopt as a response to various people. in different operations in the in- challenges in managing emis- Also speaking, Chikezie Nwo- dustry to inter-operate with one sions and investing in infrastruc- su, Managing Director of Wal- another will greatly reduce expo- ture. tersmith Petroman, agreed that sure and vulnerability. Mr. Osagie Okunbor, Chairman African countries have huge re- Earlier, Dan David, Managing of Shell Companies in Nigeria source deposits, but are very low Director, CyberSocAfrica had and Managing Director of Shell on resource consumption and revealed to the delegates at the Petroleum and Development consequently, low Gross Domes- summit that the use of technol- Company (SPDC), stated that tic Product (GDP) growth. ogy, despite its benefits, also bankability is a way of reducing He called on African countries exposes the oil and gas industry the risk involved in developing to focus more on consumption to threats. “The oil and gas in- projects, noting that the availabil- against export. “The key thing dustry is marching towards dig- ity of resources is just one step in to do is to decarbonise fossil fu- italisation and adoption of new the creation of wealth. els. Africans must not focus on technologies. The use of new Participants concluded that
Chikezie Nwosu Justice Derefaka Osagie Okunbor
31 Cover Story 02:20
Panelists at the NIPS session Sarki Auwalu government should formulate develop policies and legislation organisation was formed to policy that will encourage more that will help protect the oil and serve as a platform for co-oper- participation by the private in- gas industry’s vital data against ation, harmonization of knowl- vestors by liberalising the sector cyber-attack. edge and skills among African through the passage of neces- “Government needs to devel- oil producing countries, admitted sary bills like Petroleum Industry op policies and legislature to ad- that not much was achieved in Bill (PIB), which is expected to dress the threat to data. Use of the organisation’s first 20 years free the market and promote fa- information technology and op- of existence. vourable fiscal terms for both the erational technology exposes the The African Petroleum Pro- government and the operators. industry and renders it vulnera- ducers Association (APPA) was The Director of Department of ble to cyber-attack” Derefaka told formed in Lagos championed Petroleum Resources (DPR), Sar- the audience. by Nigeria in 1987 but had to ki Auwalu, in his contribution, ac- According to him, sharing of change it name to African Pe- knowledged that refining is key intelligence among operators in troleum Producers’ Organisa- to government’s goal of making the industry and simulating situ- tion (APPO) in 2017 following energy affordable, adding that ations before cyber-attacks can renewed efforts to strengthen “government wants to create help reduce vulnerability. it with the comming on stream the enabling environment for in- In his remarks during a min- of more African countries to the vestors to come into the down- isterial session panel, the Sec- league of petroleum producing stream sector.” retary-General of African Petro- nations, and to promote co-oper- Lending his weight to the suc- leum Producers’ Organisation, ation in petrochemical research cess of NIPS, the Technical As- Dr. Omar Farooq Ibrahim has and techonolgy in order to mit- sistant (Gas Business & Policy), advocated the strengthening of igate dependence on Western Minister of State for Petroleum APPO in the light of the recent oil technology and market for oil Resources, Justice Derefaka, discoveries in Africa. export. urged the federal government to Dr. Farooq said although the
The focus must be in making sure that the energy is clean. We have to use what we have. Today, oil is being found in unexpected places. This contributes to the growth of middle class consumers. And so demand of fuel will continue with increase with population and prosperity. Global demands will remain over 100 million barrels per day” he said, adding that African countries should focus, not solely on the glamour for renewables but largely on the need to deliver energy for the development of their people.
32 Event 02:20
Recently, the Petroleum Products Marketing Company (PPMC) held its 29th Annual General Meeting (AGM), at NNPC Towers Photo source: NNPC Twitter handle
GMD NNPC, Mallam Mele Kyari recently led the Executive Management staff of the NNPC to NASS for a public hearing with the Senate Committee on Petroleum Downstream in National Assembly Complex, Abuja. Photo: Bashir Bello Dollars
33 Industry 02:20 How we’ll Terminate Fuel Importation – Kyari –By Gideon Osaka
midst calls by stakehold- ers and Nigerians to fix ANigeria’s ailing refineries for optimum productivity, the Group Managing Director of the Nigerian National Petroleum Corporation, Mallam Mele Kyari has pledged the corporation’s commitment to terminate fuel importation He lamented the continued importation of petroleum prod- ucts into the country, adding that the NNPC has assets worth over $20 billion and if properly utilized, the country has oppor- do this, Nigeria must work. Our country,” Mr Kyari said shortly tunities it can explore in order to refineries must come back, and after taking over the instrument produce more petroleum prod- that is what we are doing.” of office as the GMD of NNPC. ucts. He had earlier explained how “We will deliver on the rehabili- Kyari made this known at the the NNPC is working hard to tation of the four refineries with- just concluded Nigeria Interna- end petroleum products impor- in the life of this administration tional Petroleum Summit 2020 tation in the country by 2023 by and support the private sector in Abuja. According reversing the trend of petroleum to build refineries. “We have assets that are in products importation as he in- “We will support the Dangote excess of $20bn. We have op- tends to ensure that all the four refinery to come on stream on portunities that we share with refineries in Port Harcourt, War- schedule. We will transform Ni- our partners,” Kyari declared ri, and Kaduna are rehabilitated. geria into a net exporter of pe- while describing NNPC as the The NNPC boss also pledged troleum products by 2023.” He largest corporation in Africa. NNPC efforts to the speedy explained. He added that “This country completion of the Dangote re- Speaking further, Kyari stated can provide energy for the whole finery and also fast track the that the NNPC will vigorously of Africa. As we all know, 90 per establishment of more private focus on the Federal Govern- cent of the petroleum products refineries in the country. ment’s target of raising crude consumed in Africa are import- “We must end the trend of fuel oil production and reserves to ed, and that must stop. And to importation as an oil producing three million barrels per day and
This country can provide energy for the whole of Af- rica. As we all know, 90 per cent of the petroleum prod- ucts consumed in Africa are imported, and that must stop. And to do this, Nigeria must work. Our refineries must come back, and that is what we are doing.”
34 Industry 02:20
We will deliver on the rehabilitation of the four re- fineries within the life of this administration and sup- port the private sector to build refineries.We will support the Dangote refinery to come on stream on schedule. We will transform Nigeria into a net exporter of petro- leum products by 2023.”
cial Crime Commission (EFCC) “We are going to work with the EFCC to remove every el- ement of discretion from our processes because discretion is one of the greatest enablers of corruption. “NNPC will not be opaque. We will be open and transparent to all so that at the end of the day, everyone will be in a position to assess us and say what we have done right or wrong,” he said. “We will do this job with integ- rity. We’ll never put personal in- terest above that of the nation or the corporation. I am conscious 40 billion barrels respectively by Corporation, while committing of the fact that ultimately, I will 2023. to ensure that corruption has be accountable to God on every Since assumption of office no place in the operations of the one of my actions.” Kyari said on last year, Kyari emphasized the NNPC, while pledging to work his vision for the corporation. need for transparency in the with the Economic and Finan-
35 Photosplash 02:20 Images from the 3rd Nigerian International Petroleum Summit(NIPS), Abuja. Photo: Bashir Bello Dollars
36 Photosplash 02:20
37 Health 02:20 Common Workplace Problems –By Danlami Nasir Isah
Space Ventilation Every room where people work should have suf- Workplaces need to be adequately ventilated. Win- ficient floor area, height and unoccupied space for dows or other openings may provide sufficient ven- purposes of health, safety and welfare. While addi- tilation but, where air conditioning is provided this tional accommodation may be necessary if there is a should be regularly maintained. need for wheelchair access, generally in offices 4.65 square metres is the minimum amount of floor space required for each person working in a room (This in- cludes the area occupied by an office desk and chair but excludes filing cabinets and other office furniture).
Natural light Lighting should be sufficient to enable people to work and move about safely. If necessary, local light- ing should be provided at individual workstations and at places of particular risk such as corridors and stairs. Lighting and light fittings should not create any hazard. Automatic emergency lighting, powered by an Temperature independent source, should be provided where sud- The regulations do not specify a maximum tem- den loss of light would create a risk. perature but, as a guide, a minimum comfortable working temperature for indoor sedentary workers is Workstations and breaks away from reckoned to be 16º Centigrade within one hour from the start of work with the maximum comfortable the screen working temperature at 27º Centigrade (when under- Employers must plan work at visual display units taking light duties). (VDUs) so that it is interrupted periodically by breaks or changes in activities to reduce exposure to the VDU. Although regulations set no required breaks, no single continuous period of work at a screen should not exceed one hour. If you use a VDU as a significant part of your daily work, you have a right to seek ap- propriate eye tests which must be made available and paid for by your employer.
Manual handling Where manual handling is required, clear guidelines should be followed. For details, see the websites of
38 Health 02:20 the Republic’s Health and Safety Authority – www. Work-Related Stress hsa.ie – or the UK’s Health and Safety Executive – Workplace stress occurs when the demands of www.hse.co.uk. the job and/or the working environment exceeds a worker’s capacity to meet them. The symptoms of Fire stress may be physical, mental and/or behavioural. Every workplace must have clear evacuation proce- You should familiarise yourself with your employer’s dures in place and carry out regular fire drills to ensure policy on stress. employees are aware of the procedures. Bullying and Harassment Bullying in the workplace is a health and safety is- sue. It can lead to health problems and give rise to further safety issues. It is also an industrial relations matter – and may have legal consequences. Employ- ers have a duty of care to all employees, to ensure they are both mentally and physically safe at work and that their health is not adversely affected by any- thing or anyone in the working environment. This duty of care means employers must behave and respond reasonably in such matters. Kindly note that the information outlined in this piece is intended for guidance only – and should not be regarded as a definitive statement.
Credit: NHS Foundation - Central & North West London Slips, Trips and Falls The main causes of slips, trips and falls in the work- place are: • uneven floor surfaces; • unsuitable floor coverings; • wet floors; • changes in levels; • trailing cables; • poor lighting; and • • poor housekeeping. If you fall, seek medical assistance if required; no- tify your employer about the incident; ensure a report is filed if necessary, and demand that the hazard is removed.
Bullying in the workplace is a health and safety issue. It can lead to health problems and give rise to further safety issues. It is also an industrial relations matter – and may have legal consequences. Employers have a duty of care to all employees, to ensure they are both mentally and physically safe at work and that their health is not adversely affected by anything or anyone in the working environment. This duty of care means employers must behave and respond reasonably in such matters.
39 Entertainment 02:20
Excitement as Davido, Olamide Drop Studio Albums
–By Adeniyi Onifade
igerians all over were being solo works of Davido, while The 17-track body of work, thrown into wide excite- the other seven were collabora- which comes as a follow-up to Nment as two strong pillars tive efforts with a rich selection ‘Omo Baba Olowo’, his 2012 al- of contemporary music, David of local and international talents. bum and ‘Son of Mercy’, his 2016 Adeleke and Olamide Adedejoi The collaborations featured EP, was released days after the dropped their studio albums. Popcaan, Peruzzi, Zlatan, Naira singer had released its tracklist The duo are said to have dom- Marley, WurlD, Summer Walk- dedicated to Veronica Adeleke, inated the Nigerian music scene er, Chris Brown, Gunna, Dremo, his late mother. in the last decade, serving music A Boogie Wit Da Hoodie and Among the tracks in the new lovers with marvellous tunes at Yonda. While prominent music project are ‘Check Am’, ‘Distur- events and other social activities. producers on the album include bance’, ‘D&G’, ‘Get to You’, ‘Green David Adeleke, Nigerian Afro- Shizzi, Kiddominant, Speroach Light Riddim’, ‘Sweet in the Mid- pop singer better known as Da- Beatz, Tekno, etc. dle’, ‘Animashaun’, ‘Blow My vido, released his long-awaited However, fans have continued Mind’, ‘One Thing’, ‘Big Picture’, studio album ‘A Good Time’ fea- to shower accolades on Davido ‘Company’ and ‘Fall’. turing renowned artistes in the for making the album worth the Among the artistes featured music space. wait, with hilarious reactions on on the album are Chris Brown, an ‘A Good Time’ featured seven- the track with controversial rap- American R&B singer; Popcaan, teen tracks, with ten of the songs per Naira Marley. a Jamaican dancehall deejay;
40 Entertainment 02:20
Peruzzi; Zlatan Ibile; Naira Mar- Nigeria’s hip hop culture. ley, Nigerian street singer; Wurld, Dremo, among others. Ever since Davido had his big break into Nigeria’s music indus- try, he has made impressive ca- reer strides, earned heavy prais- es and garnered himself a deluge of ever-loyal fans. He had, before calling Chris Brown for ‘Blow My Mind‘, a track off ‘A Good Time’ affirmed that his forthcoming project would enlist the likes of Quavo, Meek Mill, Migos, Justin Bieber, Lil Baby, among other big names in the music space. Similarly, Olamide Adedeji, Ni- gerian rapper, has dropped his nine-track extended play titled ‘999’, a day after he fixed the proj- ect’s release date, in a move that broke the internet. In January 2020, the Twitter- sphere had been abuzz minutes after the 30-year-old record label boss released the tracklist to the project he never teased. ‘999’ debuted as announced penultimate Monday, featuring a league of indigenous hip hop stars including Phyno, Rhatti, Show, Cheque, Jayboi, Sosa-E, and Jackwillz. While the project is mixed and mastered by STG, ‘999’ is pro- duced by Olamide, Cracker Mallo, Pheelz, Eskeez, and ID Cabasa. Coming as Olamide’s tenth studio project, it includes tracks like ‘Warlord’, ‘Billion Talk’, ‘Dance with the Devil’, ‘Prophesy’, ‘De- mons’, and ‘Rich + Famous’. Olamide, who is popularly known as Baddo or BaddoSneh, released his debut studio album ‘Rapsodi’ in 2011, while he was still signed to Coded Tunes. After his second studio album ‘YBNL’, he had debuted YBNL Nation, his independent label imprint, which has produced tal- ented acts like Lil Kesh, Adekunle Gold, and Chinko Ekun. Olamide has also won several awards for his role in advancing
41 Life 02:20 A-Z of Personality Branding
–By Emmanuella Edun-Adedeji In looking for people to hire, look for three qualities: Integrity, Intelligence and energy. If they lack the fi rst, the other two will kill you — Warren Buffet.
ntegrity is a much needed char- networth? Do you say one thing and acter asset in the journey of life Live in such a way that people mean another? Iand fulfi llment, it is a catalyst can vouch for you behind your When you have a dual person- for progress anyday, anytime, it’s back. ality, you deceive none but your- akin to building on a fi rm inde- I look around this country and self and self deceit always leads structible foundation. this all important trait is almost to self defeat eventually. Nigeria is where it is today non-existent, until we go back This quote by an anonymous because of a dearth in integrity, to the drawing board and realign writer says it all “ Integrity is where the thought, words and ourselves to the principles that choosing courage over comfort, actions of leaders and followers, make for steady progress, we’d choosing what is right over what don’t co-relate. be going around in circles... is fun, fast or easy and choosing Integrity is the seed for achieve- According to Transparency In- to practice our values rather than ment, it is the principle that never ternational, Nigeria ranks 146 on simply professing them”. fails: Earl Nightingale. the global corruption index, and Say and act the truth always, An anonymous writer said 4th most corrupt in West Africa. when you can be trusted, you’d “do things in secret, just the way The giant of Africa, recently enjoy the best referrals. you’d do thus if the whole world received a visa ban by the United Integrity is doing the right thing was watching”. States of America. even when no one is watching - Be true to yourself and others. How we got to this state of C.S Lewis. This age long statement still humiliation is not far fetched, the Will your true character recog- proves relevant till date; A good character flaw called “ Corruption nize your reputation when they name is better than riches. “ led us here. meet on the street? Your networth is what remains Your word is the greatest cur- Think about it... after all negatives have been de- rency ever, can people bank on leted from your life, what is your your words?
Nuggets for a Fulfi lled Life
. Don’t complicate life. We . Talking about our problems . Do not pray for an easy life; 1won’t be here forever. Once 3is our greatest addiction. 5pray for the strength to en- this day is over, it’s gone forev- Break the habit. Talk about your dure a diffi cult one. er. Your time is too valuable to joys. waste on nonsense. . Disappointments were not . Good things come to those 6meant to destroy you. They . No matter what knocks you 4who believe, better things were meant to strengthen you 2down in life, get up and keep come to those who are patient, and give you fortitude to accom- going. NEVER GIVE UP. Great and the best things come to plish your God-given destiny. blessings come as a result of those who don’t give up. great perseverance.
42 Life 02:20
. We tend to forget that happi- but in life every 7ness doesn’t come as a result end is just a new of getting something we don’t beginning. have, but by appreciating what we do have. 0. You were 2born to win. . Your child will follow your ex- Although to be 8ample, not your advice. a winner, you must plan to . One day, you’ll be just a win, prepare to 9memory for some people. Do win, and expect your best to be a good one. to win.
0. Associate yourself with 1. Every day 1people of good quality. For it 2is a NEW be- is better to be alone than in bad ginning, take a company. deep breath and START AGAIN. 1. Don’t fear change. You may growing up, no matter where 1lose something good, but you 2. Know that you are loved. you are. may also gain something great. 2You are fearfully and won- derfully made. You are beauti- 0. Be selective in your bat- 2. When you love what you ful. You have purpose. You are a 3tles. Sometimes peace is 1have, you have everything you masterpiece. better than being right. need. 3. Don’t compare your prog- 1. Keep people in your life 3. The greatest act of faith 2ress with that of others. We all 3who truly love you, motivate 1some days is to simply get up need our own time to travel our you and make you happy. If you and face another day. own distance. know people who do none of these things, let them go. 4. Never let the things you 4. Surround yourself only with 1want make you forget the 2people who are going to lift 2. Be happy not because ev- things you have - GRATITUDE. you higher. 3erything is good, but because you can see the good side of ev- 5. Commitment means stay- 5. Bad things happen every- erything. 1ing loyal to what you said you 2day to everyone. The differ- were going to do, long after the ence is in how people deal with it. 3. OPTIMISM mood you said it has left you. 3 NO Shortcuts 6. When you make a commit- NO Quick fixes 6. When you choose to forgive 2ment, you build hope. When NO Blaming others 1those who have hurt you, you you keep it, you build trust. NO I’ll do tomorrows take away their power. NO EXCUSES!! 7. Two things define you: 7. Patience is not the ability 2Your PATIENCE when you 4. Surround yourself with 1to wait, but how you act while have NOTHING, and your ATTI- 3positive people who will sup- you are waiting. TUDE when you have EVERY- port you when it rains, not just THING. when it shines. 8. Isn’t it ironic: We ignore 1those who adore us, but adore 8. Being honest may. not get 5. Being defeated is often a the ones that ignore us. We love you a lot of FRIENDS but it temporary condition; giving those who hurt us, but hurt the 2 3 will always get you the RIGHT up is what makes it permanent. ones that love us. ONES. Enjoy God’s grace on this 9. Sometimes good things fall 9. Working on yourself is journey we call LIFE. 1apart so better things can fall the hardest part of life. Keep together. Every story has an end, 2
43 Industry 02:20
FEBRUARY SHORT TAKES –Compiled By Saidu Abubakar
Shell Lifts Force Majeure on Bon- Seplat Names Olivier De Langa- (NCDMB) has organized a one-day ny Light Crude Exports vant as Non-Executive Director sensitization workshop on Vendor Shell Petroleum Development Mr. Oliver Langavant has been Development Programme, with a Company of Nigeria Ltd (SPDC) announced by Seplat as one of the view to enlightening vendors op- this month lifted a force majeure company’s Non-Executive Direc- erating in the oil and gas industry on Bonny Light crude oil exports, tors. The announcement is being on how to register and bid for con- Nigeria’s major oil revenue source. made in accordance with Rule 4 tracts in the industry as well as en- of the Nigerian Stock Exchange courage compliance. Coronavirus: OPEC+ Schedule Amended Listing Rules and Rule Emergency Meeting 9.6.11 of the UKLA Listing Rules. Minister of State for Petroleum OPEC and its non-OPEC’s Joint Resources Leads Investment Technical Committee, JTC have DPR Grants Approval to 5 LPG Meetings In US scheduled an emergency meeting Plants In Taraba Minister of State for Petroleum to hold in Vienna over the corona- The leadership of the Depart- Resources, Chief Timipre Sylva virus outbreak in China. ment of Petroleum Resources was part of the Nigerian delegation (DPR) in Taraba state has con- at the US-Nigeria Binational Com- Nigerian Gas Reserves on the firmed granting approval for the mission Meeting held in Washing- Rise, Development Growing – construction of five Liquefied Petro- ton DC on February 3-4, 2020. DPR leum Gas (LPG) plants in the state. Nigeria’s Natural Gas reserves FG Settles SHIN, LADOL Rift have been on the incline from Nigeria Secures $1.1m Grant for The positive intervention of the 2013 and is projected to contin- Gas-Fire Power Plant in Abuja various agencies of the Federal ue to grow at a conservative rate The Federal Government and Government for the resolution of of about 1.0%, the country’s De- United States Trade and Develop- the feud between Samsung Heavy partment of Petroleum Resources ment Agency have signed a 1.1mil- Industries Nigeria Limited (SHIN) (DPR) has reported.
Africa Oil Receives Dividend From Its Nigerian Asset Africa Oil Corp. (“AOI”, “Africa Oil” or “the Company”) announced that it has received its first dividend from Prime Oil and Gas B.V. (“POG- BV”, previously known as Petro- bras Oil and Gas B.V.), a company that holds interests in deepwater Nigeria production and develop- ment assets.
DPR to Go Tougher on Recurring Explosion, Accidents The Department of Petroleum The GMD NNPC, Mele Kyari, US Ambassador to Nigeria, HE Mary Beth Leonard, Resources (DPR), February, in COO Gas and Power, Engr. Yusuf Usman (standing), while the representatives Abuja, said it may be forced to of the two countries sign the agreement take drastic action against erring oil and gas firms in an attempt to lion dollar grant to support elec- and LADOL, has boosted the con- address frequent cases of explo- sion and accidents in the industry. tricity infrastructure development fidence of Korean companies in Cases of gas, pipeline as well as in Nigeria. Nigeria, investigation has shown. tanker accidents have in recent times, razed properties, resulted CDMB Holds Workshop on Con- IPMAN Laments Long Closure of in death, and affected the environ- tracting Processes NNPC Depot In Enugu ment across the country. The Nigerian Content Devel- Independent Petroleum Market- opment and Monitoring Board ers Association of Nigeria, IPMAN,
44 Industry 02:20
Enugu Depot branch, has called NLNG Achieves 83% of its Nigeri- graduate trainees. on the South-East governors and anisation Target other Igbo leaders to intervene and The Nigerian Liquefied Natural NCDMB Holds Workshop for Sen- engage the Federal Government Gas Company, NLNG has said that ate, House C’ttees In Lagos on the urgent need to revitalise the it has completed about 83 per cent The Nigerian Content Devel- long abandoned Nigerian National of its Nigerianization process with opment and Monitoring Board, Petroleum Corporation, NNPC, De- a view to meeting the 100 percent NCDMB has held a Capacity Build- pot in Emene, Enugu, Enugu State. target by 2022. ing Workshop for Members of Senate and House committees on Nigeria Faces Stiff Competition FG Discovers One Billion Barrels Nigerian Content at Lagos Conti- Due to Global LNG Supply Glut of Crude Oil In North-East nental Hotel, Victoria Island, Lagos Exporters of Liquefied Natural The Minister of State for Petro- State. Gas, including Nigeria, have been leum Resources, Chief Timipre Syl- told to brace up for an oversup- va, said about one billion barrels of ‘How Nigeria Can Meet 40 Billion plied market and weaker-than-ex- Crude oil have been discovered in Barrels of Oil Reserves’ pected global demand depressing the Northeastern part of Nigeria. Nigeria should create a stable prices for their output for another operating environment and estab- two years. NNPC Offers Employment To lish robust regulatory and fiscal 1,050 Graduate Trainees framework in the country to meet OPEC Committee Recommends The Nigerian National Petro- the 40 billion barrels oil reserves Fresh 600,000bpd Oil Output Cut leum Corporation (NNPC) has em- by 2025, Victor Okonkwo, Manag- With crude oil prices shedding ployed 1050 Graduate Trainees. ing Director of Aiteo Exploration over $11 per barrel this year to This was announced by the man- and Production Company Limited, $55, thus alarming the producers, agement of the company on the has said. a panel set up by the Organisation company’s tweeter handle. of Petroleum Exporting Countries $750m Oil Stolen in 2019, Says (OPEC) and its allies have rec- Nigeria’s Oil Production Could NNPC ommended a provisional cut of Drop By 35% Without Reforms – The Nigerian National Petro- 600,000 barrels per day in oil sup- Wood Mackenzie leum Corporation has said the na- ply to the international market, in Cost increases and uncertainty tion lost about $750m to crude oil response to the Coronavirus out- in Nigeria’s crucial energy sector theft in 2019. break, which has reduced the de- could lead to a 35% decline in oil mand. output over 10 years as com- $500m Bribe: Nigerian Oil Mogul panies delay investments in key Aliyu Abubakar Faces Trial In Italy Oil Marketing Firms in Nigeria oilfields, consultancy firm Wood An Italian judge has ordered a Post N7.06bn Annual Profit De- Mackenzie said in new research Nigerian businessman, Alhaji Aliyu cline due to be published this month. Abubakar to stand trial for alleged Most of the major players in the international corruption relating to downstream sector of the nation’s ‘Coronavirus May Cripple Global a Nigeria oil graft case involving oil and gas sector saw their profits Gas, LNG Demand By 14 Billion Eni and Shell, a judicial source and drop last year, according to official Cm’ his lawyer said. data. Depending on the length of time required to contain the spread, 25% Drop in PMS Revenue, High the outbreak of novel Coronavirus Cost of Sales Put MRS in N1bn (nCoV) in China will create gas de- Loss in 2019 mand reduction of between 14 bil- MRS Oil Nigeria has announced lion cubic meters, thereby crippling its unaudited financial statement the commodity market in 2020. for 2019, which shows that the downstream firm recorded a loss Nigerians Hail NNPC’s Recruit- after tax of N1.1 billion during the ment Transparency period. Nigerians, especially the youth, continue to pour encomiums on NNPC Begins Work on Establish- the Nigerian National Petroleum ment Of Biofuel Refinery In Kogi Corporation (NNPC), over the lev- The Nigerian National Petroleum el of transparency that character- Corporation (NNPC) has begun ised the corporation’s 2019/2020 work on the establishment of Bio- recruitment exercise resulting in fuel refinery at Alape in Kogi State. the employment of 1,050 Nigerian
45 Aviation 02:20 Trouble Brews in Nigeria’s Aviation Sector –By Adeniyi Onifade
rouble is brewing in Nige- ria’s aviation sector over Tthe planned concession of some airports by the feder- al government, especially with planned amendment of the Fed- eral Airports Authority of Nigeria (FAAN) Bill 2019. The proposed bill if amend- ed, will eventually distort airline operations in the country espe- cially in the area of commercial operations. Perhaps, the most controver- sial part of the FAAN amend- ment billing causing stir among stakeholders especially those opposed to airport concession is the fact that the Minister now holds absolute power to con- cession airports. According to the proposal be- fore the National Assembly, the Minister of Aviation would have the statutory power to conces- sion any of the airports. Part V of the bill which deals with general powers of the FAAN says: “The authority shall, with the consent of the Minister, discontinue the use of any airport maintained by it pursuant to this Act.” Hadi Sirika, Minister of Aviation The bill adds: “Where the use of an airport is discontinued International Airport (MMIA), four airports slated for conces- pursuant to subsection (1) of Lagos; Nnamdi Azikiwe Interna- sioning, FAAN also manages 18 this section, the authority shall tional Airport (NAIA), Abuja; Port other airports which are largely submit a valuation of the airport Harcourt International Airport, considered as unviable. to the federal government which Omagwa Rivers and Mallam The major opponents of the shall cause compensation to be Aminu Kano International Air- concession are the workers rep- made to the authority as appro- port (MAKIA), Kano. resented by the unions which priate.” It was also learnt that the have been very vocal in their Reports had earlier suggest- amendment bill before the Na- opposition to the proposal. But ed that the federal government tional Assembly was to pave as the government remains ad- is on the verge of concession- way for concession as the ex- amant, the unions are spoiling ing four major airports in the tant FAAN Act did not recognise for war over the amendment country – Murtala Muhammed concessioning. Apart from the bill which they say gives the
46 Aviation 02:20
minister “enormous powers. describing it as a deliberate at- president.” The aspect of the bill relating to tempt to undermine the sector. As it stands, the National As- concession is not in the nation- Earlier, General Secretary Ni- sembly is expected to conduct al interest, according to a union geria Aviation Professionals As- public hearing on the four avi- leader. He said the union would sociation (NAPA) Comrade Ab- ation bills recently submitted protest it. dulrazak Saidu said the unions to it by President Muhammadu The union further opined that would kick against the bill. Ac- Buhari. the provision is at variance with cording to Saidu, the unions The bills include Civil Aviation the power given to the board of would protest to the presidency Bill 2019, Federal Airports Au- directors in the same bill. The and the National Assembly any thority of Nigeria Bill 2019 and board, according to the amend- portion of the bill that is skewed Nigerian College of Air Space ment shall have the power to, against the interest of workers Management Agency Establish- among others “formulate and in particular and the nation as a ment Bill 2019. provide the general policies and whole. Others are Nigerian College of guidelines relating to the author- He said: “We are going to op- Aviation Technology Establish- ity; monitor the implementation pose the bill sent to the National ment Bill 2019, Nigerian Meteo- of the policies and programmes Assembly because an aspect rological Agency Establishment of the authority. of it talked about concession Bill 2019 and Nigerian Safety Already, aviation unions in of airports, and we are going to Investigation Bureau Establish- the country have already begun protest and we are sending it ment Bill 2019. mobilization against the bill, to the president and the Senate
We are going to oppose the bill sent to the National Assembly because an aspect of it talked about conces- sion of airports, and we are going to protest and we are sending it to the president and the Senate president.”
47 Property 02:20
Still on the Search for Affordable Homes –By Danlami Nasir Isah
tatistics from the World ment and private developers out in the quest for affordable Bank has shown that Ni- focus more on production of homes. Sgerian housing deficit homes for the low-income Similarly, a property expert units now stands at over 17 earners, existing deficit in the and the managing director, of million. This is just as rural-ur- supply end of the market may REFin Homes, Olatunde Ma- ban migration is on the rise as continue to rise, experts have caulay at an event identified people increasingly migrate warned. collaboration with private sec- from rural to urban places for Analysts on different fora tor to solve housing challenges job opportunities and better liv- have identified funding as one in the country. ing. of the major factors that can He challenged stakeholders This development has raised cause turn-around in the hous- to complement government’s concerns among experts in the ing sector. According to them, effort by providing alternative property sector and why the government needs to improve housing solutions which will aid Federal Government must be funding for the provision of af- in changing the narrative and proactive in ensuring the hous- fordable homes at lower prices also bridge the over 17 million ing deficit gap is bridged. for the middle and lower class- housing deficit that has been Except the Federal Govern- es of the society, who are left lingering for over a decade.
Olatunde Macaulay, managing director, of REFin Homes challenged stakeholders to complement govern- ment’s effort by providing alternative housing solutions which will aid in changing the narrative and also bridge the over 17 million housing deficit that has been linger- ing for over a decade.
48 Property 02:20
Macaulay, a housing expert vate partnerships and other Therefore, from all indica- said the major issue in the sec- private institutions such as tions, there is a need to give a tor is the absence of affordable ours, to help the government tax rebate to manufacturers of homes for the majority of peo- in reducing this huge housing building materials for building ple who are mostly low-income deficit as soon as possible. We materials to be accessible to earners stressing that the mar- are excited to add new projects builders, government policy on ket favours the rich and the development pipeline. accessing home finance for Ni- high networth individuals. “This aligns with our strategy gerians must be friendly. Speaking further, he said of building presence in Nigerian Although government is car- the government can’t handle real estate market and to add rying out some policies in that the existing deficit alone, but momentum to plans to grow area, more needs to be done in should create an enabling en- the market share over time,” he the long run especially when vironment for private opera- said. Nigeria’s population is far out- tors through the provision of matching it’s Gross Domestic infrastructure like, good road Need for improved financing Product (GDP). network, and efficient transpor- and tax rebate These policies will fast track tation, water and power supply It has become very important and advance market growth as well as reduction in the pric- for improved finance support in and guarantee the quality and es of building materials. the housing market by govern- standard of living at all times. For him, “focus should be on ment as it will aid Nigerians to Consequently, shelter being providing affordable housing own their homes at affordable one of man’s necessities, Nige- for the people based on what prices. ria’s rising population must be they want and what they could This is because many Nige- catered for and provided mod- afford. Make and design flex- rians work tirelessly to earn and est accommodation so that ible enough packages for the end up handing over the mon- the country’s population will be people to pay and contribute ies to their landlords at the end productive and be assets to Ni- towards housing on monthly of the year, a situation which geria rather than liability. basis.” has been described as “Unfor- “There has to be public/pri- tunate” by stakeholders.
49 Motoring 02:20
Nigeria Automotive Industry Development Plan Bill: NADDC, Stakeholders Plan ‘Executive Bill’ for NASS –By Ironhand Sydney Chukwuemeka
ing with Jaiz, WEMA and Zenith banks, towards ensuring that Nigerians are able to purchase locally assembled vehicles with low-interest loans and down-pay- ments of only 10 percent. The Director General said NAD- DC, in collaboration with relevant ministries and other agencies of government, has been bringing a lot of efforts to bear on invest- ment drive and gaining the confi- dence of investors - key elements of the NAIDP which are being ad- dressed in the new executive bill going to the legislature. “We are reviewing the Automo- tive Policy with a view to sending “The Nigeria Automotive Indus- turned to the sector four months it back to the National Assembly try Development Plan (NAIDP) is later. Hosting a delegation from as an Executive Bill. We are work- still in full effect. It has five main the Nigerian Automotive Manu- ing closely with the Ministry {of elements that we have been im- facturers Association (NAMA) in Industry, Trade & Investment} plementing…We are reviewing November, the NADDC DG dis- and the Presidency. We have met the auto policy, to send it back to pelled speculations of the conse- with stakeholders and got their the National Assembly as an ex- quential death of the NAIDP. input to make the policy more ef- ecutive bill” Jelani Aliyu assured that the fective,” he disclosed. Coming from the Director Gen- bill, considered the most import- According to him, some auto eral of the agency that drives the ant follow-up to the introduction manufacturers, particularly two nation’s vehicle manufacturing of the policy itself owing to the renowned international auto industry - National Automotive legal framework it would give to brands, Volkswagen and Nissan, Design and Development Council, the initiative, would be reviewed in collaboration with their partner NADDC, Jelani Aliyu - this quote and represented. in Nigeria, Stallion Motors Limit- is one of the most re-assuring Giving an update in an exclu- ed, are just waiting for the signing and hope-raising comments late- sive interview which was moni- of the auto bill for high capacity ly on the automotive policy. tored by Valuechain, the Director investments and production in This is mainly because when General disclosed that the NAIDP Nigeria. in July 2019 President Muham- Fiscal Incentive and Guarantees The NADDC DG explained that madu Buhari declined assent to Bill would soon be returned to the the matter of boosting purchas- the Nigeria Automotive Industry National Assembly for passage, ing power is a general economic Development Plan (NAIDP) Fiscal but this time, as an executive bill. issue that can only be addressed Incentive and Guarantees Bill, it Aliyu reiterated that the pas- by general economic initiatives cast a kind of gloom on the in- sage of the executive bill and its targeted at economic and social dustry, with some people even signing into law are critical to the development in the country, such making bold to declare the auto boosting of investor confidence. as increased skills and productiv- policy dead. It will also enhance the collab- ity and infrastructural accessibil- But, a semblance of hope re- oration the NADDC is negotiat- ity.
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Aliyu said that the re-appraisal excessive bureaucracy and luke- envisaged gains of the NAIDP. of the auto policy was an indi- warm attitude, constitute a clog A member of the board of NAD- cation of government’s commit- in policy implementation. DC, Obi said: “The truth is that in ment towards pursuing the devel- The Chairman of the automo- order to benefit from various gov- opment plan to a long-term and tive and miscellaneous sectoral ernment concessions as per the sustainable conclusion, stressing group of the Manufacturers As- auto policy, many of today’s so that apart from making progress sociation of Nigeria (MAN), Rob- called assembly plants import in the areas of investment pro- ert Ugbaja, could not be reached almost fully built and painted ve- motion and market development, for comments even after several hicles, fix just the tyres and a cou- the council has also been work- attempts. But, his predecessor ple of accessories locally, and de- ing towards skills, standards, and infrastructural development. The joint committee on indus- try at the National Assembly, he assured optimistically, is eager to facilitate speedy passage of the bill, when re-presented. Reacting to the development, the Executive Director of NAMA, Remi Olaofe, confirmed that at the instance of the ministry and the NADDC, a meeting of the council and the stakeholders held on January 30, with the objective of collating the operators’ input Jelani Aliyu, DG, National Automotive Senator Osita Izunaso, Chairman, Board and ensuring that everybody was Design And Development Council (NADDC) of the National Automotive Design And on the same page. Development Council (NADDC) The NAMA ED lauded NAD- and leader of the Automotive Lo- ceive government that they make DC’s emphasis on curriculum cal Content Manufacturers Asso- them in Nigeria. development and the training ciation of Nigeria (ALCMAN), Dr. “When serious plants like Peu- of youths in Mechatronics with David Obi, described the on-going geot in Kaduna, ANAMMCO in the aim of empowering them to review and reinvigoration of the Enugu, and Volkswagen in Lagos, become self-sufficient and very NAIDP bill as very commendable were truly doing CKD assembly, relevant in the technological en- and imperative. their local content suppliers were hancement of the industry. However, Obi, who through his known in different parts of the Some of the auto makers rep- DVC Limited played a vital role in country. Peugeot, for instance, resented at the meeting with the the success story of many gen- achieved about 40 percent lo- NADDC are PAN Nigeria Ltd (Peu- uine assembly plants years ago, cal input through steady foreign geot), ANAMMCO, Dana Motors, reiterated his familiar argument content deletion. That is what we Coscharis Motors Limited, Dan- in favour of more emphasis on should be talking about in the ex- gote Sinotrucks, Proforce Lim- complete knock-down {CKD] as- ecutive bill, not SKD assembly. It ited, VON Automobiles Limited sembly in the executive bill. To is all about job creation; using the (Stallion Group), CFAO Motors, him, CKD assembly should be auto policy to create jobs for our Metal Mate Limited, Toyota Nige- mated to a strict programme of children.” ria/JAC and a few others. time-barred substitution of im- Regardless of the numerous He suggested that when ported parts with those sourced challenges, the renewed efforts passed into law, the new bill locally. at re-jigging the NAIDP document should be able to galvanise and The present {semi-knocked- for presentation as executive bill, sensitise people in the ministries, down} SKD 1 and SKD 2 ar- has ignited hope that success departments and agencies to be rangement, according to him, may be beckoning in the horizon, on the same page with the inves- encourages manipulation of gov- if only implementation would be tors in order to ensure prompt ernment concessions to genuine conscientious and government and conscientious implemen- automakers by dishonest vehi- leads by example, by driving pa- tation of policy directives. This cle importers who disguise their tronage of locally made vehicles. will help to obviate the prevailing skeletal facilities as assembly situation where some agencies’ plants, thereby sabotaging the
51 Sports 02:20
Buhari Appoints Amokachi Football Ambassador … Yobo joins Super Eagles as Assistant Coach
–By Saidu Abubakar
resident Muhammadu Bu- for Besiktas in Turkey and Colo- try’s football development, as hari has appointed retired rado Rapids in the USA. well as mentor young sports- PSuper Eagles legend Dan- In addition to his football ex- men and women. iel Amokachi, aka ‘The Bull’ as ploits in Europe, Amokachi man- He has been a technical di- Nigeria’s Football Ambassador. aged Nigeria Premier Football rector since 2006. With World Amokachi, 47, a member of League clubs -Nasarawa United Cup performances, he was third the 1994 Super Eagles Team of Lafia and Enyimba Football in the African Footballer of the that won the African Nations Club of Aba after retirement. Year award three times. Cup in Tunisia, was also in the The Bull also served as Nige- As a forward, he was known Nigerian Olympic Football Team ria’s assistant coach to Shuaibu for his speed, technique and at the 1996 Atlanta Olympics Amodu and also, Stephen Keshi. physical strength, which earned that won the Gold Medal. The As Nigeria’s Football Ambas- him the nicknames Black Bull forward featured for Belgian sador – a largely ceremonial and Black Train. Amokachi, who side Club Brugge of Belgium role – Amokachi is to assist the is also very popular and well and English Premier League nation’s football authorities to known in his country, contribut- side, Everton, where he won the scout for talents, and be part of ed to Nigeria’s top two tourna- FA Cup in 1995. He also played processes to revive the coun- ments to the World Cup along
52 Sports 02:20
Amokachi, 47, a member of the 1994 Super Eagles Team that won the African Nations Cup in Tunisia, was also in the Nigerian Olympic Football Team at the 1996 Atlanta Olympics that won the Gold Medal. The forward featured for Belgian side Club Brugge of Bel- gium and English Premier League side, Everton, where he won the FA Cup in 1995. He also played for Besiktas in Turkey and Colorado Rapids in the USA. In addi- tion to his football exploits in Europe, Amokachi man- aged Nigeria Premier Football League clubs -Nasara- wa United of Lafia and Enyimba Football Club of Aba after retirement. with his attack partner, Emman- from international football re- to have paid his dues. uel Amunike. cently has been appointed by Ni- Despite the NFF’s President, Amokachi scored the first geria Football Federation (NFF) Amaju Pinnick, explanation for goal of the UEFA Champions as the new assistant coach Joseph Yobo’s appointment as League with Club Brugge in No- assigned to the Super Eagles. Super Eagles assistant coach vember 1992, beating CSK Mos- Joseph Yobo is a household to Gernot Rohr, mixed reactions cow 1–0. name within football faithfuls in have continued to trail the NFF In a related development, for- Nigeria and beyond. As captain decision. Even some of Yobo’s mer captain of the Super Eagles, of the Nigerian national football fellow ex-internationals ques- Joseph Yobo who bowed out team, Yobo is believed by many tioned the 2013 AFCON winner’s
Joseph Michael Yobo
53 Sports 02:20
experience and qualification for “The idea is that we want to bench. But he began his coach- the Eagles job. But Pinnick, in- nurture and condition him to ing career as an assistant at sisted Yobo’s appointment was provide leadership and mentor- Manchester City when he retired. a unanimous decision of the ship for the young team, using Today, he is the Arsenal manag- NFF board. the Nigerian factor, which Ger- er and one of the top coaches in “The NFF is very excited with not (Right) cannot provide. England. So, we should learn to his appointment and will take it “He’s played for some of Eu- support our own.“Are we going as a responsibility to ensure that rope’s big clubs, won the AF- to keep relying on foreigners all he gets the requisite (coaching) CON and he is one of our most- the time?” Pinnick was quoted qualifications at the highest lev- capped players ever. So, we as telling PUNCH. el,” Pinnick stated. should back him to succeed.” Joseph Michael Yobo (born 6 “That’s how Stephen Keshi Pinnick added that Yobo’s for- September 1980) is a Nigerian started. Who says Yobo can’t be mer teammate at Everton, Mikel former professional footballer the next Nigerian to win the AF- Arteta, began coaching immedi- who played as a centre back. He CON as player and coach? ately on retirement in 2016, de- was the captain of the Nigerian “FIFA stipulates that the head spite not having the experience, national team until his inter- coach and first assistant coach and rose through the ranks to national football retirement in must have coaching licences. become Arsenal’s manager. June 2014, and is Nigeria’s joint Yobo is not the first assistant He said, “When Yobo was record appearance holder. coach. at Everton, Arteta was on the
As Nigeria’s Football Ambassador – a largely cere- monial role – Amokachi is to assist the nation’s football authorities to scout for talents, and be part of processes to revive the country’s football development, as well as mentor young sportsmen and women.
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