Valuechain Star of the Industry Award
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AUGUST 2019 VOL. 2 NO. 8 CONTENTS 31 PETROLEUM MINISTRY: Tasks Before Sylva, Others 4 EDITORIAL 20 NNPC Granted License to Operate HMO — Unveils 15 winners of the 2019/2020 DSDP Crude Oil Lifting INDUSTRY Contracts 38 AUGUST SHORT TAKES 5 Nigeria’s 3-month rig count remains unchanged, as OPEc’s rises by 2 AVIATION 48 Nigeria, others Risk Economic 7 Recession in 2020 ...As IEA forcasts 42 NIS to build foreigners’ database global oil supply glut fl ags off Migrants E-Registration THE 2019 TONY ELUMELU initiative in Ogun FORUM 9 Eland records fi rst oil at Gbetiokun early production facility COLUMN Wabote Advocates Extension of 44 The Gift from Beyoncé to Africa 10 Nigerian Content Act to Critical Sectors ...As he receives Valuechain Star of the Industry Award MOTORING Excitement as Weststar unveils How HQs relocation may put IOCs, 46 Marcopolo Paradiso 1350 12 communities on war path honours luxury bus transporters 16 Proper Technology Deployment will Check Poor Forecast, Risks in Oil PROPERTY Industry— SEPLAT 50 5 Bedroom Design Mistakes 18 FG commits to hitch-free approval of 23 gas fl are sites to bidders SPORTS Star of the Industry FIFA’s hammer falls on Siasia Umana Okon Umana 52 over match-fi xing allegation Managing Director, Oil & Gas Free Zones Authority ith the recent ap- this new crop of leaders es- pointment of the chew personal interest and Wformer Governor of work for the common goal Bayelsa State, Governor Timi- of the country? Only time will pre Sylva as the new minis- tell. Our cover story highlights ter of state, Federal Ministry the task before Sylva and oth- of Petroleum Resources the ers in the next four years. coast seems clear now for the The International Energy oil and gas industry to thrive Agency (IEA) has recently and yield more benefi ts for warned that potential global the country. economic recession is im- over-supply. The warning One undeniable fact re- minent in 2020 if the Oil pro- came at the moment when mains that the fi rst term of ducing countries, OPEC and oil prices seem to be in trou- President Muhammadu Bu- Non-OPEC, continue to flood ble due to supply glut set to hari witnessed some achieve- the world oil market with hit the market in the next cou- ments in the petroleum indus- ple of months if the current try but opinions have it that if supply pace is sustained. The not for the rift; that engulfed implication of this to the Nige- the former Minister of State rian economy could be cata- Petroleum Resources, Dr. Ibe strophic considering the fact Kachikwu, and former Group Publisher/Editor-in-Chief that Nigeria is a mono-econ- Musa Bashir Usman Managing Director of the Ni- omy that relies majorly on oil gerian National Petroleum Acting Editor to fi nance its budget. Nige- Benjamin Ike Corporation, Maikanti Baru ria needs to collaborate with coupled with the political Deputy Editor OPEC to make sure this hor- Fred Ojiegbe disharmony that character- rifi c forecast did not come to ized the relationship between Contributors reality. the Saraki led 8th National Gideon Osaka Ironhand S. Chukwuemeka Your favorite Valuechain of Assembly and the Presiden- Aisha Sambo the month of August is juicy, cy; the administration would David Chukwu I can assure you. Do have a have by now fi xed most of the Graphic Consultant pleasant time reading and Theresa Ogbonna major issues bedeviling the in- don’t forget to send us your dustry. Business Dev. Executives comments. Adeniyi Onifade (South) The Nigerian oil and gas in- Abdulkarim Sani (North) dustry today has a new crop of Zakari Abdulkadir (S/South) leaders as; Minister of State, Circulation Manager MB. Usman alternate chairman of NNPC Danlami Nasir Isah NB. Feel free to send in your views and have your say @ board, GMD NNPC, chairmen Online Editor [email protected] Senate and House commit- Saidu Abubakar tees (upstream, downstream, Photo Editor gas) in both chambers. Will Bashir Bello Dollars 1-2 Abu-Rayyan Street, New NDC Layout, Kaduna. Tel: 08077201571, Abuja: 07089626420, Lagos: 08036840121. email: [email protected] www.thevaluechainng.com [email protected] @thevaluechainng.com thevaluechainng.com 4 Industry 08:19 Nigeria’s 3-month Rig Count remains Unchanged, as OPEC’s rises by 2 –By Gideon Osaka igeria’s rig count in the last the previous month. The seven re- the U.S., compared to 869 a year three months has remained maining OPEC members had their earlier. For the U. S, despite this Nunchanged at 14 for the rig count unchanged within the meaningful decline, production month of June, the same number period under review. Angola, Con- currently stands at about 12.3 mil- it recorded in May and April, while go, Equatorial Guinea had 5, 4, 1, lion barrels per day (bpd), just shy the Organisation of Petroleum Ex- respectively, while Gabon, Iran, Ku- of the all-time high reached earlier porting Countries, OPEC, appreci- wait and Libya had 6, 157, 45 and this year. Output first reached this ated by 2, having recorded 576 in 15 respectively. level in late April, after beginning June, as against 574 recorded in Other African countries had 2019 at around 11.7 million bpd. May, data from OPEC shows. their rig count unchanged, at 51, At this time last year, production World rig count appreciated which was the same number re- still hadn’t reached the 11 million by 39, in the month of June, as it corded the previous month. Latin bpd mark. Mexico had a loss of recorded 2,378, against 2,339 re- American countries had plus 6, as 2, as it witnessed 32, against 34, corded the previous month. Out they had 123 in June, as against within the period under review. The of the 14 – member OPEC, four, 117recorded the previous month. United Kingdom had its rig count Ecuador, Saudi Arabia, United Arab Other Middle East countries had unchanged at 16 within the period Emirates and Venezuela had ad- unchanged rig count, which stood under review, while Norway had ditional 10. Ecuador had an im- at 69 within the period under re- 18, as against 14 recorded within pressive plus 4, as its rig count for view. The United States of America the period under review. Organi- June stood at 10, as against 6 it witnessed minus 16, as it recorded sation for Economic Co-operation experienced in May. This was fol- 970 in June, as against 986 record- and Development, OECD Americas lowed by Saudi Arabia, which had ed in May, while Canada showed a recorded an appreciable plus 25, plus three, having recorded 114 in gain of 43, having recorded 113, having had a rig count of 1,115 in June, as against 111 recorded the as against 70, within the period June, as against 1,090 recorded in previous month. UAE had plus one, under review. It was noted that the month of May. Also, OECD Asia as its count stood at 61, as against the U.S. oil rig count has been on Pacific recorded plus 3, as it wit- 60 recorded the previous month, a fairly steady downward trajecto- nessed 32, as against 27 record- while Venezuela had plus 2 having ry in 2019, after reaching a near- ed within the period under review. recorded 24 in June as against 22 term peak in late 2018. That said, OECD Europe had plus 7 rig count, in May. Algeria led the loser’s pack, for the first several months of the having recorded 193, as against as it recorded 45 in June against year, the rig count was still up on a 186 recorded within the period un- 51 recorded the previous month. year-over-year basis. That’s clearly der review. It was followed by Iraq, which had no longer the case. As of August 77 in June, as against 75, recorded 9, there were 764 oil rigs drilling in 5 Industry 08:19 Nigeria, Others Risk Economic Recession in 2020 ...As IEA forcasts global oil supply glut –By Gideon Osaka here are fears that oil est Oil Market Report. In July, again, at an even slower rate of prices seem to be in big OPEC produced 29.71 mb/d, 705,000 bpd. Ttrouble, with a supply so according to the IEA’s num- New pipelines in the Perm- glut set to hit the market in bers, OPEC+ will have to slash ian basin could unlock more 2020 and a potential econom- output by quite a bit more production growth going for- ic recession looming. One of next year in order to head ward. Discounts for Midland the few things that could up- off a supply glut. Most of the crude have vanished with the end this forecast is a signifi- global supply growth is com- recent start-up of a major new cant slowdown in non-Organi- ing from United States shale, pipeline, and the expected in- sation of Petroleum Exporting which makes the pace of shale auguration of a few more later Countries, OPEC, supply, the growth highly important to the this year will add even more International Energy Agency, forecast. Notably, however, midstream capacity. But while IEA, stated. U.S. oil production growth has the pipeline projects were IEA predicated the surplus been slowing. “So far this year, once thought to unleash the on a deterioration in demand US crude oil supply growth next wave of explosive growth at a time when supply contin- has been lacklustre. Over the in the Permian, that is no lon- ues to grow.