Alhaji Rufai Shakur, Acting Director, Department of Petroleum Resources (DPR), has warned oil and gas laboratory operators to avoid compromising data analysis results.
Shakur gave the warning at the 3rd Oil and Gas Industry Laboratory Stakeholders Workshop in Lagos on Wednesday.
The Nigeria News Agency reports that the workshop had the theme: “Enhancing laboratory best practices and capacity building toward promoting sustainable development in the Nigerian oil and gas industry’’.
Shakur represented by Dr Musa Zagi, Deputy Director, Health, Safety and Environment (HSE) Division of DPR, said laboratory practice in the Nigerian oil and gas Industry should not only be viewed as a business or money-making venture.
He said that laboratory practices should be seen as a critical and sensitive component which inputs were critical for decision-making across the oil and gas value chain.
“It is my fervent hope and firm belief that the discussions here today will ignite a strong determination and resolve among all oil and gas laboratory stakeholders to begin to chart a definitive and sustainable path toward uncompromised and consistent quality of service and integrity of results.
“The quality and integrity of the data or results churned out from laboratories in our sector of the economy is a critical ingredient in decision making (for both regulators and operators) without which there can be no real value addition and sustainability,’’ Shakur said.
He said that the agency (DPR) had put in place machinery to ensure good laboratory practice in the Nigerian oil and gas industry.
According to him, this includes the accreditation and permitting process for companies rendering laboratory services in the sector.
Shakur reiterated the commitment of the DPR toward enhancing good laboratory practices by working with all stakeholders to ensure that the Nigerian oil and gas sector becomes one of the best in the world.
Edited by Adeleye Ajayi
NNPC seeks support in curbing oil pipelines vandalism
Nigerian National Petroleum Corporation (NNPC) on Monday called on Nigerians and security agencies to join its effort at curbing the menace of oil pipeline vandalism in the country.
Mr Adeyemi Adetunji, NNPC’s Chief Operating Officer for Down Stream Operations made the appeal during an inspection visit to the scene of a recent pipeline fire incident at Peace Estate, Baruwa, in Idimu axis of Lagos on Monday.
The Nigeria News Agency reports that an explosion occurred on Dec. 5 in the swampy area after some suspected pipeline vandals disrupted the Atlas Cove-Mosimi Pipeline, part of the System 2B Pipeline.
” We are here this morning from NNPC to assess the fire of Dec. 5 at Baruwa village, and what we have seen is that the fire was put out within 24 hours.
We thank the various agencies of government, the Lagos State Fire Service, the Nigeria Security and Civil Defence Corps, Nigeria Police and Oilserv, our contractors on the line.
Everybody came here and joined hands together to put off the fire, and we have resumed pumping of products to Mosimi and Atlas Cove since yesterday.
So, everything is now under control. We have enough products, so there will be no fear of any scarcity during the Yuletide and beyond,’’ he said.
Adetunji said that some arrests had been made in connection with the vandalism, and investigation was ongoing.
The NNPC official also said that the particular location had become exposed to pipeline vandalism in the past, as the location last year experienced two fire incidents.
Last year, there was fire outbreak twice in this Baruwa area, and this year, we have had incidences in November and December.
So, this area is prone to pipeline vandalism. We are doing our best in NNPC to ensure we have security, adequate maintenance and look at our right of way in terms of pipeline integrity.
We are appealing to the residents here, community leaders and religious leaders to ensure that they also protect our pipelines.
These are national assets and must be protected by all Nigerians. Security is for everybody and if you see something, say something,’’ he said.
Adetunji said that the NNPC would continue to sensitise communities and Nigerians on the danger of pipeline vandalism, adding that it was prepared to also listen to useful suggestions.
Mr Aloga Ogbogo, Executive Secretary, National Association of Road Transport Owners (NARTO), said that the protection of pipelines should be the responsibility of everybody.
Anybody who tampers with such critical infrastructure should be apprehended and prosecuted.
NARTO as an organisation will continue to kick against pipeline vandalism because apart from sabotaging the economy, it also creates artificial scarcity of products,’’ Ogbogo said.
The Chairman of Peace Estate Community Development Association, Mr Omojowo Adedeji, decried the nefarious activities of the vandals.
Adedeji said the community was ready to work with the NNPC and security agencies in curbing activities of oil pipelines vandals in the area.
He also enjoined the NNPC management to clear the swampy areas, to improve visibility and safety of the pipelines.
Edited /Oluwole Sogunle
Wabote lists benefits of NLNG Train 7
Wabote lists benefits of NLNG Train 7
The Executive Secretary, Nigeria Content Development and Management Board (NCDMB), Mr Simbi Wabote, has said the upcoming Nigerian Liquefied Natural Gas (NLNG) Train 7 will boost revenue generation.
“To the Nigerian economy, as you are aware, it will bring more revenue to the country; more taxes would be paid and, to the economy, it means a lot.
“To Nigerians, it also means a lot. It means creation of jobs. As you have heard, we will have about 10,000 direct jobs that will be created as a result of the Train 7 project.
“What that translates to is almost 40,000 indirect jobs that would be created,’’ he said
According to him, Train 7 will rejuvenate the economy.
He said that a lot of upstream projects would also come up as a result of the project.
On legislation to extend local content to other sectors for economic growth and development, he said the idea would not allow proliferation of regulatory agencies in all sectors.
Wabote said that there would be no local content board for construction and another for Information and Communication Technology (ICT).
He said that the legislation on local content for the sectors would be under one umbrella with different divisions in charge of each sector.
Wabote added that a division would be in charge of construction, another ICT and oil and gas, among others.
“That way, you have one body responsible for regulation, but each of those divisions has their peculiarities,’’ Wabote said.
He said that amendment of the Act would put into consideration the peculiarities of the sectors for easy implemention, instead of creating an over-regulatory regime.
Edited & Vetted By: Chidinma Agu/Ijeoma
Shell pledges to implement NOSDRA’s directive on N2.74 remediation of spill site
The Shell Petroleum Development Company of Nigeria (SPDC), on Friday said it was committed to remediation of sites impacted by an oil spill from its Trans Ramos export line in Bayelsa and Delta states.
Nigeria News Agency reports that oil spill which occurred on May 17, 2018 had impacted and polluted estimated area of 113.03 hectares in Aghoro and Odumodu communities in Bayelsa and Delta respectively.
A joint Investigation Visit (JIV) report of the incident obtained by NAN had concluded that the leak on the pipeline at three spots was caused by equipment failure.
The investigation showed that this discharged about 1,114 barrels of crude oil into the environment.
The National Oil Spills Detection and Response Agency (NOSDRA) had in a post-impact assessment report obtained by NAN recommended that the ecological damages caused by the leak be remediated with N2.74 billion.
Mr Bamidele Odugbesan, Media Relations Manager, SPDC, had earlier said that the oil firm regretted the incident and assured that the firm would compensate victims as well as correct the polluted areas of the community.
Adande said that the N2.74 billion recommended by NOSDRA was not to be paid to victims of the spill incident but a cost to be incurred to remediate the ecological damage caused by the leak.
He explained that the oil firm prioritised the safety of its operations.
He also said it would deploy its expertise of operating in an environmentally sustainable way to go beyond clean up of the polluted areas, but to restore and conserve them.
“We also use geomantic map to establish the exact area of impact and extent within SPDC’s Right of Way or third party area and the degree of impact to arrive at a fair compensation value.
“The NOSDRA Post-Impact Assessment report, however, included a N2.74 billion as ‘ecological damage assessment’ for environmental restoration and not as compensation.
“SPDC takes responsibility for clean-up, remediation and restoration,” Adande said.
Edited & Vetted By: Cecilia Odey/Donald Ugwu
Yuletide: DPR promises to ensure consumers’ satisfaction
Umuahia, Dec. 5, 2019 The Department of Petroleum Resources (DPR) has promised to make efforts aimed at ensuring that its consumers have adequate supply of petroleum products during the upcoming Yuletide.
Iheji said that the DPR was embarking on an inspection of petrol stations in the state in a bid to give consumers value for their money.
He said that the DPR would ensure accurate dispensing of petroleum products to the public during the festive season.
He said that some of the stations inspected by his team had been sealed for under-performance.
He said that more filling stations were sealed in Aba because of under-dispensing, lack of operating licence, poor safety standards and absence of security gadgets.
He assured the public that the DPR would do everything within its constitutional powers to curb sharp practices in the sector.
“What we have done is not borne out of hatred for the affected stations.
“It is a sincere desire to curtail cheating, ensure safety standards and give consumers real value for their money during the Yuletide.
“The stations visited are being randomly selected; so we urge anyone with useful information to supply such to us and help us serve Nigerians better “, he said.
Iheji, however, commended petroleum marketers in the state for what he described as a good level of compliance by them.
He said that the stations that were sealed would be unsealed as soon as they had corrected the anomalies for which they were found wanting.
Edited & Vetted By: Kamal Tayo Oropo/Peter Dada
Stakeholders seek streamlined regulatory environment for oil, as sector to attract more investment
Oil and Gas industry stakeholders on Wednesday called for a streamlined regulatory environment to attract investment and make the sector competitive.
The stakeholders made the submission at the ongoing Practical Nigerian Content Conference and Exhibitions holding in Yenagoa.
The theme of the conference is “Leveraging Local Expertise for Market Growth and Expansion”.
During a panel discussion on “Facilitating a commercially viable business environment through inter agency collaboration” the speakers noted that a one-stop shop model for regulatory agencies was desirable.
Mr Simbi Wabote, the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), said the board had taken steps to reduce bureaucracy that prolonged the contracting cycle in the oil and gas sector.
He said that NCDMB had simplified most of its approval processes by automating them to ensure seamless and swift issuance of regulatory clearance to operators.
He said the board recently automated the approval processes for approval of expatriate quotas to guide the Ministry of Interior for the issuance of expatiate quota.
Sen. Teslim Folarin, Chairman Senate Committee on Nigerian Content, said that following the success recorded by NCDMB, the legislature was planning to extend the Nigerian Content Law to other sectors of the economy.
The sectors envisaged to be covered by the new law include power, ICT, construction , telecoms amongst other sectors.
He said that the Senate planned to repeal the Nigerian Oil and Gas Industry Content Act 2010 and re-enact the Act to include modifications that would make the new legislation to apply to other sectors.
AMr Victor Okoronkwo, Managing Director, Aiteo Eastern Exploration, who spoke for the Oil Producers Trade Section of Lagos Chamber of Commerce, noted that the group was yearning for improvement on Nigeria’s ease of doing business.
He said multiple taxes and overlapping responsibilities by government agencies were adversely affecting the profit margins of oil firms, a development that discouraged the inflow of investment capital.
According to him, the sector remains open to dialogue with government to make the Nigerian oil and gas sector competitive to attract more investment.
Edited & Vetted By: Chukwudi Ekezie
We are 97% ready for FID on Train 7-NLNG
Mr. Tony Attah,, the Managing Director/Chief Executive Officer, Nigeria LNG Limited0,
disclosed this at the ongoing 9thPractical Nigerian Content in Yenagoa.
” t peak construction, the Train 7 project is targeted to provide direct, indirect and induced employment of about 40, 000 jobs from the Nigerian Content Development and Monitoring Board (NCDMB), perspective, if looked holistically over the next six year window,” he said.
He warned that Nigeria risked losing its market share in the international gas market as well as dwindling gas export if it failed to make new investments in gas development.
“In LNG exports and market share by market, Qatar leads the chart with 78.7 Metric Tonnes, MT, 24.9 per cent, followed by Australia with 68.6MT, 21.7 per cent, while, Nigeria sits at 5th, with 20.5MT and 6.5 per cent.
“If we do not take new FID investments in Trains, Nigeria may continue to drop from 5th to 10th position by 2025.
“We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years, it is now time to fly on the wings of gas.
“Our vision is to be a global LNG company helping to build a better Nigeria. We have four shareholders, government with 49 per cent of the company with NNPC as it representative, Shell 25.6, Total 15 per cent and Eni 10.4 per cent.
“We believe that gas will continue to be a strong part of the energy mix in Nigeria.
“Today we have 11 billion dollars asset base. We have six LNG trains with 22mtpa capacity. We have 23 ships going round the world,” he added.
He said added that the company had delivered over 4700 LNG cargoes across the world and reduced gas flaring by 65 per cent lay down to less than 20 per cent.
“Nigeria is now number seven in terms of gas flaring across the world. Russia remains number one, even the U.S. is at number four on the list.
“We are the highest tax payer in Nigeria with eight billion dollars tax. The company is 100 per cent Nigerian management and 95 per cent Nigerian staff.
Edited & Vetted By: Chukwudi Ekezie
Dangote Refinery good example of local content- Wabote
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDM), Mr Simbi Wabote, says the 650,000 barrels per day Dangote Refinery project is an actualisation of Local Content development in Nigeria.
Wabote made this known while fielding questions from newsmen at the ongoing 9th Practical Nigerian Content Forum in Yenagoa on Wednesday.
The private refinery owned by the Dangote Group is under construction in Lekki Free Trade Zone, Nigeria.
When completed, it will have a capacity to process about 650,000 barrels per day of crude oil.
He said that project was the only way to drive local content, especially by establishing it in the country.
“Dangote might as well have taken the refinery elsewhere but deciding to execute the project in Nigeria is a plus.
“Secondly, at the peak of the construction of the refinery, about 65, 000 workers are on site, and the majority of those workers in terms of ratio that are providing various services are Nigerians.
“Also, there is a lot of sub-contracts that have been awarded, contracts within the project site, the majority of those contracts are executed by Nigerian companies.
“To a very large extent, that is an example of believing in your country and trying to do things to enhance the development of your country,” he said.
Wabote commended the company’s plan to integrate young Nigerian graduates to manage the refinery, noting that the younger ones remained the future for the industry.
“Those of us at the industry, at 60 we will all retire and then these engineers will take over from us.
Commenting on failure of proper management of the country’s refineries, he said that the state of the current four refineries should not be likened to Dangote Refinery.
According to him, Dangote Refinery is a private investment that will do everything possible to run and maintain the refinery effectively.
“The other four refineries are government-run, and most times government is not in the position to run businesses effectively because of so many factors.
” Private investors will do a lot better than when you have the government run it.
“This is why they have pushed for privatisation of refineries. An example of private individual handling an asset is the case of Hilton Hotel in Abuja which has been privatised.
“Currently, you can see the profitability and what has been achieved thus far because it is being run privately.
“Dangote Refinery is purely private initiative and he will put everything well to ensure it is run successfully,” Wabote said.
Edited & Vetted By: Chukwudi Ekezie
Oil Theft: We have lost 4m barrels in 2019 says Aiteo
Aiteo Eastern Exploration and Production, operators of OML 29, says the activities of oil thieves have assumed alarming proportions, leading to loss of about four million barrels of crude in 2019.
Mr Victor Okoronkwo, Managing Director of the oil firm spoke on the sidelines of the ongoing Practical Nigerian Content Exhibition and Conference with the theme, “Leveraging Local Expertise for Market Growth and Expansion’’.
Okoronkwo regretted that attacks by oil thieves on the 117 kilometer Nembe Creek Trunk Line, (NCTL) has adversely affected crude export from the oilfields in Bayelsa which had been shut for two months in 2019.
He regretted that despite the enormous investment in technology and security on the assets, the sabotage was yet to abate, adding that the development required a decisive action by all stakeholders.
He noted that the losses in oil output caused by oil theft were responsible for revenue shortfalls expected by the three tiers of government.
“One of the biggest challenges we face in our operations is the security of our pipelines and oil facilities.
“Our pipelines and flow-lines are constantly vandalized by unscrupulous elements tagged ‘crude oil thieves’ attempting to cause economic sabotage to our company and the people of this great country.
“Despite our efforts in raising NCTL uptime from 60 per cent to over 80 per cent since acquisition, we have recorded more shutdown days in operations due to third party infractions for over two months this year, compared to previous years.
“This has resulted in loss of revenue and deferments estimated at about 4 million barrels so far this year.
“Also worrying is the amount of crude loss recorded even when the pipeline is operational, usually in the range of 25 to 35 per cent.
“More worrisome is that even when the perpetrators of these acts are caught and handed over to security agencies, we are yet to witness any convictions,” Okoronkwo lamented.
He noted that the interruptions cut across the industry, as NCTL also served four other oil companies namely Eroton, Newcross, Belema Oil and Shell, who took turns to export their crude output from the export line.
Edited & Vetted By: Ifeyinwa Okonkwo/Maureen Atuonwu
Multiple taxes hinder growth of local firms in oil, gas sector — Stakeholders
Yenagoa, Dec. 3, 2017 Some stakeholders have called on the Federal Government to ensure reduction of taxes on companies in the oil and gas sector to indigenous companies to grow.
The stakeholders spoke on Tuesday at the ongoing 9th Practical Nigerian Content Forum with the theme, “Leveraging Local Expertise for Market Growth and Expansion”, and holding in Yenagoa.
Mr wale Olafisan, the Group Managing Director of Amni International Petroleum Development Company said numerous taxes in the industry adversely affected the development of indigenous companies.
Represented by Mr Tijani Adewale, a Director in the company, Olafisan identified the taxes as Value Added Tax, Nigeria Content Development and Monitoring Board, tax, NDDC tax, among others.
“We need to support the indigenous companies and encourage them to contribute to the growth and development of the country,” he said.
He called on government to ensure good governance in the sector to enable it to compete globally.
He said that world’s future was on gas and that it was necessary that Nigeria adopted good policies to rive gas development.
“Government must look at gas production critically and prioritise its development.
“We have huge deposits of gas in the country and must take its development very seriously.
“We must support indigenous companies, especially those that want to be involved in the upstream sector,” he added.
Mr Victor Okoronkwo, the Managing Director, Aiteo Exploration and Production Limited, said that ensuring local content would help the growth of the sector.
He said that indigenous companies, such as Aiteo, had so many challenges affecting their development.
According to him, apart from taxes, constant attacks on its facilities remain a big challenge.
“We witness constant vandalism, thereby interrupting our operations and in turn an economic sabotage.
” In 2019, we have rerecorded substantial shutdown, we have a cumulative of two months shutdown and it has negative impact on the revenue of the company and the economy,’’ Okoronkwo said.
He added that the company recorded crude loss of 25 per cent to 35 per cent “between what is injected to the facility and what is received at the terminal”.
He said the company had lost four million barrels of crude through damage on pipelines and other facilities during the year.
Edited & Vetted By: Chukwudi Ekezie
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