Nigeria’s midstream and into the business, have also d o w n s t r e a m Nigeria: Midstream, downstream infrastructure gap hits $40bn s t o p p e d i n v e s t i n g i n infrastructural gap has hit about infrastructure, as reports show $40 billion, according to Minister that there has been no of State for Petroleum, Dr. Ibe d o c u m e n t o b t a i n e d b y that besides the government, economy plunged into recession investment in Nigeria’s oil and Kachukwu. SweetcrudeReports. Nigerians with investment as a result of low revenue from gas infrastructure for the last 15 “ We ’ v e e s t i m a t e d t h e Kachikwu, quoted by the capabilities could put up some of crude oil exports. years. infrastructure gap in the Organisation of the Petroleum the required investment rather As a result, investors are The Federal Government on its midstream and downstream to Exporting Countries, OPEC, than the country restricting itself withdrawing from staking their part, has continued to call for be about $30–40 billion and that bulletin published during its to investors from abroad. monies in the oil and gas sector both local and foreign investors is one of the things we are recent 7th annual international S i n c e o i l p r i c e s s t a r t e d due to rising cost of production. with promises to reduce costs of looking at,” he said in a seminar in Vienna, Austria, stated dwindling in 2014, Nigeria’s Stakeholders, who are already CONTINUES ON PAGE 03

A Review Of The Nigerian Energy Industry

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43 MAY 17 JUN 17 JUL17 AUG-17 An 0il platform Cabotage: NIMASA introduces new compliance strategy Govt targets 3mb/d crude

MICHAEL JAMES The Nigerian Maritime Administration and Safety Agency, NIMASA, has oil production introduced a 'New NIMASA level is about 2.2mb/d, the Cabotage Compliance government was working on Strategy', NCCS, towards the increasing this to 3mb/d. actualisation of a successful Kachikwu says country requires $10bn “Investment is needed to coastal and inland trade maintain essential work. regime. Nigeria’s normal production This is in continuation of the yearly to produce, cap oil fields OPEOLUWANI AKINTAYO level is 2.2mb/d, and the agency's quest to ensure full day, mb/d, crude oil production. Annual International Seminar. government would like to raise it implementation of the Minister of State for He revealed this in the bulletin of According to the bulletin to 3mb/d”, he said. Cabotage Act 2003 for the Petroleum Resources, Dr. the Organisation of the Petroleum obtained by SweetcrudeReports, The minister also revealed that benefits of Nigerians. Ibe Kachikwu, says Nigeria is Exporting Countries, OPEC, K a c h i k w u s a i d a l t h o u g h for Nigeria to begin production of Speaking with newsmen, targeting three million barrels per published during its recent 7th Nigeria’s normal production crude oil in new oil fields, it Dr. Dakuku Peterside, the would cost the country about $10 NIMASA Director General, Ogoni gives clean-up as precondition for resumption of oil production billion per year for over three disclosed that the agency years. came up with NCCS to *We have no plans to resume operations in Ogoni - Shell “Just to get fields online and cap them will require an average of secure jobs for qualified he Ogoni people in Rivers MKPOIKANA UDOMA, Port Harcourt Petroleum Corporation, NNPC, T about $10 billion per year in Nigerians in the maritime State have asked the Shell Shell, Total and Agip stopped oil investments over the next three sector. Pe t r o l e u m D e v e l o p m e n t M O S O P , p l a c e d f u l l production in Ogoniland in 1993 to four years,” he noted. The NIMASA DG stated that Company, SPDC, and the Nigeria implementation of the United and has no plans to resume such Kachikwu’s revelation on with the NCCS, the agency Pe t r o l e u m D e v e l o p m e n t N a t i o n s E n v i r o n m e n t a l operations in the area. spending $10 billion yearly on Company, NPDC, to cease Programme, UNEP, report on the "Any suggestion that we are would no longer consider developing a new oil field comes engagements focused on top of its list of conditions for a planning to secretly resume oil applications for grant of on the heels of complaints in the resuming oil production in possible resumption of oil production is untrue," the waivers on manning for industry that the country has not Ogoniland. operations in Ogoniland. company said in the statement. prescribed categories of developed any new oil fields in The Ogoni socio-cultural But, Shell said in a statement President of MOSOP, Mr. officers in vessels engaged in the past 15 years. pressure group, the Movement that the SPDC Joint Venture Legborsi Saro Pyagbara, while CONTINUES ON PAGE 03 for the Survival of Ogoni People, comprising the Nigerian National CONTINUES ON PAGE 02 CONTINUES ON PAGE 02 PG 02 Oil Govt targets 3mb/d crude oil Seplat pushes for merger of small oil production and gas firms CONTINUED FROM PAGE 01 Meanwhile, the minister lamented the loss of $300 billion in oil investments globally in three years, due to the decline in oil price. Speaking at the 2017 Society of Petroleum Engineers’ Nigeria Annual International Conference and Exhibition in Lagos, General Manager, West Kachikwu said the losses were in oil exploration and production. Assets, Seplat Petroleum On the Nigerian side, according to the minister, the loss of these Development Company, Chima investments was due to inefficiency in the country’s security Njoku, has said that small and policy and inconsistency in policies. independent oil and gas He said investors prefer to invest the limited resources companies should form mergers elsewhere in African countries, adding: "What we are losing, t o a c h i e v e o p e r a t i o n a l other countries in Africa are gaining". excellence. “The situation is very challenging when it comes to losing He told SweetcrudeReports in opportunities arising from investment". an interview that for small and “For the first time in the oil sector, the decline in the oil price independent companies to cut resulted into loss of jobs. Infrastructural gap is another factor costs, maximise services and Seplat oil platform which the decline in the price created. stay afloat, there was need for “We have an infrastructural gap deficit of $5 billion because them to merge. sector. time in the sector. government was responsible for infrastructure and we did not He said small companies are “There is a lot to be done by the "Now, costs of production are engage the private sector. also key stakeholders in the oil independent indigenous oil and rising and the small companies “The whole idea of the new petroleum policy is to move the and gas industry and that their gas companies to achieve the are struggling to stay alive. I think private sector into financing part of the projects because interests must be balanced and best in their operations and stay the solution is to form a merger in government cannot do it alone,’’ he said. protected for the progress of the afloat especially at this critical order to cut costs,” he said. Ogoni gives clean-up as precondition for Nigeria: Midstream, downstream infrastructure gap hits $40bn resumption of oil production CONTINUED FROM PAGE 01 percent in 2015. CONTINUED FROM PAGE 01 and Production, Mr. Ali Moshiri, production and cost of doing had said that total investment by Nigeria accounted for $20 briefing newsmen in Port Harcourt, stressed that no oil production business in the country. all players in Nigeria’s oil and gas billion out of the $600 billion can take place in Ogoni without the achievement of a clear process The President of Chevron Africa industry which stood at $20 global investment in the oil and of clean-up and broad public discussion about the future of oil and Latin America Exploration billion in 2014, has dropped by 20 gas industry in 2014. operations in Ogoniland. Pyagbara warned that the alleged plans by Shell and NPDC to resume activities in the land was capable of causing another round of chaos and violence in Ogoniland and would be resisted by the Gas people. "In the recent months, there had been intense and deliberate attempts by Shell to return to the Ogoni oilfields through the back Anadarko moves toward FID for LNG project door without any broad-based discussion with the Ogoni people with the potential of igniting a blaze of conflict and violence that will skirt this forceful attempt to return to the area. in Mozambique "It is disappointing that the Federal Government which commissioned UNEP to carry out an assessment of Ogoniland, whose report had called for a total clean-up and restoration of A n a d a r k o Pe t r o l e u m Ogoniland, is the same government trying to force her way through C o r p o r a t i o n h a s the back door to commence operations in Ogoniland without announced that it had finalised addressing the key concerns raised by the Ogoni people across the two agreements with the years. government of Mozambique – “It is especially disappointing because we have seen divisive together known as the "marine efforts to re-enter Ogoni for oil production over the last decade, all concessions" – which would of which have ended in failure. In each case the lack of allow it to design, build and transparency and attempts to deal with local actors in isolation was operate the marine facilities for Conceptual design of a natural the fundamental failure," Pyagbara said. its LNG project in northern gas liquefaction facility The MOSOP leader further explained that If there was credible Mozambique. This follows the publication of train LNG project," said Mitch Government. We will now look interest in resuming production in Ogoni, the government and the ahead with our plans to begin the Mozambican Government Ingram, Anadarko executive V.P., prospective oil companies should initiate a broad-based resettlement, which will enable Decrees approving those Global LNG. discussion with representation from all sectors of the community. the construction of the LNG agreements. He added: "It marks the plant. "This is a key milestone on the c o m p l e t i o n o f t h e c o r e "In addition, we continue to path to a final investment components of the Legal and Contractual Framework with the make good progress with our Power decision (FID) for our initial two- efforts to secure long-term LNG Sales and Purchase Agreements (SPAs) with premier buyers, and Port Harcourt residents to occupy PHEDC over poor power supply we will intensify our work to put in place the necessary financing for the project. We expect to take PHEDC in Port Harcourt. have been paying our bills but FID once the SPAs and financing The protesters, numbering we don't know why they have are in place." more than 50, claimed that there refused to give us electricity. Anadarko is developing has been no power supply in their We are angry. Mozambique's first onshore LNG area in the last two months. "From now till end of the plant consisting of two initial Leader of the protest, Mr. month if nothing is done rapidly LNG trains with a total capacity Micheal Akani, said PHEDC must to bring back our light and of 12 million tonnes per annum, provide 15hours of uninterrupted make it to stay for up to 15 hours MTPA, to support Golfinho/Atum power supply in the area, a day, we will come here and field, located entirely within maintaining that the area has occupy here for one full week, Offshore Area 1. been having epileptic power we will come with our women Anadarko operates Offshore A part of Port Harcourt city supply in the past two years, and a with stoves and pots, we will Area 1 with a 26.5% working total power outage in the last two cook and eat here." interest. Co-venturers include E m p r e s a N a c i o n a l d e MKPOIKANA UOMA, Port Harcourt Company, PHEDC, should the months. W h e n c o n t a c t e d , t h e "Before now, we used to have management of the PHEDC Hidrocarbonetos EP (15%), e s i d e n t s o f N k p o l u - company fail to restore power Mitsui E&P Mozambique Area1 R supply in the area within one steady power supply, but since said 15 hours of uninterrupted O r o w u r o k o i n Po r t PHEDC came, we have been power supply was not possible, Ltd. (20%), ONGC Videsh Ltd. Harcourt City Local Government month. (16%), Bharat PetroResources The community issued the having epileptic power supply up as every distribution company Area of Rivers State has till date. usually gets limited power Ltd. (10%), PTT Exploration & threat while staging a peaceful Production Plc (8.5%), and Oil threatened to occupy the Port He said: "We are not happy, we supply from the national grid. Harcourt Electricity Distribution protest at the D/Line office of the India Ltd. (4%). PG 03 Power After Boko Haram attacks, TCN continues efforts to restore power to N'East

T h e T r a n s m i s s i o n Seun Olagunju, “We have 60MVA 132/33kV capacity Company of Nigeria, energised a 40 (Mega Volt transmission station with fully TCN, has announced that it has Amp) MVA 132/33kV mobile equipped control room and continued its efforts to restore power transformer at the staff quarters was completely power to areas in the North- D a m b o a Tr a n s m i s s i o n destroyed by Boko Haram east, in the wake of the Substation in Bornu State and insurgents on the 4th of July, rehabilitation process ongoing a 30MVA, 132/33kV power 2014. “As a result of the in the region after the curb of t r a n s f o r m e r i n G o m b e i n c i d e n t , b u l k p o w e r Electricity workers the insurgency. Transmission Substation.” transmission to Damboa and According to TCN’s General She said that the Damboa environs reduced by 60MVA. nature of the area, however, procurement and installation Manager, Public Affairs, Mrs. Substation, previously a “Notwithstanding the volatile TCN initiated the process for of a 40MVA 132/33kV mobile power transformer, in an attempt to bridge the shortfall in bulk electricity transmission to distribution load centres that Finance supply the electricity to Damboa and environs.” Similarly, Olagunju noted that the installation of a 30MVA, Nigeria’s non-performing loans have doubled 132/33kV power transformer in Gombe was in response to the since 2015 - IMF continued increase in load demand from the distribution company supplying electricity to the state capital and its the end of its launched the ERGP to drive its a n d r e v i e w r e f o r m environs, adding that, “This staff visit to economic diversification implementation. necessitated an increase in Nigeria, the IMF strategy and pull the economy The team said MPLs have transformer capacity to relieve said Nigeria’s out of recession. grown from six percent in existing transformers in the e c o n o m i c The IMF team led by the 2015 to 15 percent in 2017. substation. c h a l l e n g e s S e n i o r R e s i d e n t “Preliminary data for the first persist in spite of Representative and Mission half of the year indicate Fe d e r a l G o v e r n m e n t ’ s OSCARLINE ONWUEMENYI, Abuja Chief for Nigeria, Mr. Amine significant revenue shortfalls, implementation of a number Mati, was in Nigeria between with the interest-payments to T h e I n t e r n a t i o n a l of important measures, July 20 and 31 to discuss recent revenue ratio remaining high Monetary Fund, IMF, including Economic Recovery economic and financial (40 percent at end-June) and says the current 0.8 per cent and Growth Plan, ERGP. d e v e l o p m e n t s , u p d a t e projected to increase further growth in the Nigerian The Federal Government macroeconomic projections, under current policies. economy in the first half of 2017 was still not sufficient to reduce unemployment and Cabotage: NIMASA introduces new compliance strategy end poverty in the country. T h e B r e t t o n - Wo o d s CONTINUED FROM PAGE 01 applications for grant of out that special applications for institution also noted that ensure that the Nigerian takes cabotage trade. w a i v e r s o n m a n n i n g captains, chief engineers, chief over the job within one year. non-performing loans, NPL, In his words, “The era of requirements for vessels officers, first mate in the across Nigerian banks have He said that the essence of foreigners taking over jobs that engaged in coastal trade with absence of qualified Nigerians this was to ensure that increased by more than Nigerians are qualified for in regards to second officer, shall be considered on merit, Nigerians are not deprived of double since 2015. the maritime sector is over. The second engineer and second but on the condition that such the jobs due them on showing According to a statement at NCCS will point a new direction mate, down to able seamen, organisation will make a plan requisite qualifications for the to our cabotage regime as the ratings and stewards”. to train a Nigerian and put in job. agency will no longer consider The NIMASA DG also pointed place a transition plan to Labour Jagal Group reiterates need for people empowerment, sustainable development Mr. Anwar Jarmakani, the The prestigious award was r e c i p i e n t t h r o u g h t h e agal Group has reiterated Group Executive J presented at the LCCI Awards conglomerate has contributed its commitment to invest Chairman of Jagal in human capital and building 2017 held recently in Lagos immensely to nation-building. strategic partnership that aims where business leaders, Jagal Group’s co-CEO, Mr. to achieve sustainable growth captains of industry and Manssour Jarmakani, who for the advancement of the n o t a b l e p e r s o n a l i t i e s received the award on behalf Nigerian community. converged to celebrate of Mr. Anwar Jarmakani said: This was made known by Mr. corporate organisations, “ T h e L C C I i s h i g h l y Anwar Jarmakani, the Group public institutions and commended for recognising Executive Chairman of Jagal in i n d i v i d u a l s t h a t h a v e the significant role Jagal Group L agos when the L agos contributed meaningfully to has been playing in providing Chamber of Commerce and t h e d e v e l o p m e n t o f world class products and Industry, LCCI, bestowed him commerce and industry in service to different sectors the Business Legacy Award in Nigeria. through its diverse investments thousands of Nigerians.” served as the Executive r e c o g n i t i o n o f h i s President of the LCCI, Mrs. in technology, real estate The recipient, Mr. Anwar Chairman for the Jagal Group contributions to nation- N i k e A k a n d e , w h i l e construction, health and Jarmakani, a member of the of Companies since it was building and socio-economic presenting the Award to Mr. h y g i e n e i n a d d i t i o n t o Nigerian Economic Summit established in March 1978. development. Anwar Jarmakani, said the providing employment for Group, is the founder and has PG 04 Freight Make seaports in Niger Delta viable, IYC urges Ameachi

Calabar. Lagos State. According to a MKPOIKAANA UDOMA, Port Harcourt Spokesman of the group, Mr. report in Guardian Newspapers Henry Iyalla, in a statement said on the 31st of July, 2017, no The Ijaw Youth Council, imposition of high tariffs and fewer than two million IYC, has charged the implementation of stifling containers laden with various Minister of Transportation, Mr. policies towards the seaports in cargoes worth over 5 trillion are Rotimi Amaechi, to urgently put the Niger Delta were aimed at currently stranded at the Lagos in place modalities for the sabotaging the economy and Port, with several vessels rehabilitation and full operation marginalising the people of the waiting to berth as if the country of all the moribund ports within region. lacks sea ports with the capacity the Niger Delta as a show of Iyalla lamented that it was to satisfy the demands of the interest in the overall economic worrisome that the only industry. development of the region. functional and viable seaport in “We therefore condemn in Port Harcourt The group also berated the operation in the country today totality the huge infrastructural Federal Government over what was that of Lagos. decay, high disparity on cargo it described as deliberate “It is quit pathetic to see that charges and deliberate stifling counterpart. Regrettably this the region, reduced economic abandonment of seaports in the only sea port in operation in policies against the Niger Delta has brought about sustained gain and mass unemployment Port Harcourt, Warri, and the country today is that of ports, compared to their Lagos under-utilisation of ports within of youths," he said.

Community CSR: Oriental Energy builds N700m housing estate for host communities

riental Energy Resources clinic, a shopping centre and Indimi in his speech at the OLimited has launched a w i l l b e g i v e n f r e e l y t o groundbreaking ceremony in N700 million modern residential beneficiaries. The project is Enwang. estate of 100 units in Enwang, b e i n g b u i l t a n d f u n d e d According to the chairman, headquarters of Mbo Local exclusively by Oriental Energy the Oriental Village is a clear Government Area of Akwa Resources Limited and the m a n i f e s t a t i o n o f t h e Ibom State as part of its M u h a m m a d u I n d i m i company’s commitment to Hon.(Barrister) Onofiok Luke, Speaker, Akwa Ibom State House of Assembly; Corporate Social Responsibility, Foundation as a legacy project sustainable development of its Alhaji (Dr) Muhammadu Indimi, Executive Chairman, Oriental Energy CSR, programme. for Oriental Energy’s host host communities. Resources; and Alhaji Usman Mamman Durkwa, Deputy Governor, Borno The estate, named Oriental communities. “The housing initiative we Village Mbo when completed, This was revealed by the have commissioned will State, at the groundbreaking ceremony of the Oriental Village in Enwang, will have a solar-powered Executive Chairman of the leverage innovative housing Mbo Local Government Area of Akwa Ibom State. electrification system, a school, company, Alhaji Muhammadu t e c h n o l o g y t o p r o v i d e a c c o m m o d a t i o n t o 1 0 0 f a m i l i e s i n M b o L o c a l Government Area. There will Oil, gas communities assure firms of adequate security be 100 units of one-bedroom flats which will sit on a 2.5 hectare of land graciously Oil and Gas Producing provided by the good people of Host communities in Eyo-Ukut and facilitated by the Nigeria, HOSTCOM, have said Enwang Council of Chiefs, led they would ensure the by our respected clan head," he p r o v i s i o n o f e n a b l i n g said. environment for the resumed Governor Emmanuel in his keynote address said: “My operations of international to the companies by the host government and people have and national oil companies in communities. followed with keen interest, the Niger-Delta region. He said the order would not the exploits of Oriental Energy The National Chairman of w o r k u n t i l t h e h o s t Resources Limited in the HOSTCOM, Dr. Mike Emuh, communities and the Niger Nigerian Petroleum Sector. stated this in an interview in Delta created enabling Some of these include the Abuja. environment for the IOCs to successful development of The Acting President, Prof. relocate their headquarters to Ebok oil field and in the Oil Mining Lease (OML) 115. This Yemi Osinbajo, had directed the Niger Delta. "Nobody event, the ground-breaking t h e I n t e r n a t i o n a l O i l wants to settle down where ceremony of the Oriental Companies, IOCs, operating there is no peace, but I can Village in Enwang, Mbo local in the Niger Delta region to assure you that presently in Niger Delta community government Area, is one of relocate their headquarters to the Niger Delta there is s u c h s p e c t a c u l a r their states of operations, peace," he said. achievements”. based on the provision of the A c c o r d i n g t o h i m , Local Content Act. HOSTCOM is working toward E m u h s a i d t h a t t h e recruiting 10 to 20 boys from EDITOR WEBSITE: ENQUIRIES: +234 8023000019, email: [email protected] Chuks ISIWU www.sweetcrudereports.com Sweetcrude Limited, Plot 2191 Osiefa Crescent, marching order by the acting each community from the GRA, Amuwo Odofin, Lagos. president could only be over 1,000 communities in the For details of all stories, contact the Editor or visit www.sweetcrudereports.com possible given the provision r e g i o n f o r p i p e l i n e For Advert booking and placement please contact: Nkem IGBIKKIOWUBO +234 8060249746, of enabling the environment surveillance. e-mail: [email protected] or Mr. Elijah AJAYI, +234 8033033055, e-mail: [email protected]