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Shell loses N202m daily to vandals, oil thieves – GM

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Shell Petroleum Development Company of Nigeria (SPDC) Joint Venture says it loses about N202 million daily in revenue to activities of criminals in the Niger Delta.

The company attributed the loss to daily attacks on its pipelines by suspected crude oil thieves and vandals.

SPDC’s General Manager, External Relations, Igo Weli, disclosed this at a media workshop on Pipelines Right of Way, Encroachment and Vandalism in Port Harcourt.

“SPDC JV is currently losing about 10,000 barrels per day (bpd) of oil or N202 million lost daily from its pipelines to crude oil thieves in the Niger Delta.

“This is a reduction from the loss of around 11,000 bpd in 2018 and about 9,000 bpd of oil lost daily in 2017.

“These attacks were on critical assets that produce the crude oil, which  accounts for over 90 per cent of Nigeria’s foreign exchange earnings and the bulk of government revenue.

Weli said that the company had so far discovered and removed more than 1,160 illegal theft-points on its pipelines since 2012.

He further said that its pipelines were breached by vandals 111 times in 2018 alone resulting to oil spills in the Niger Delta.

“We are concerned about the lives and safety of those involved in pipeline vandalism and crude oil theft as well as the environment.

“SPDC puts safety first and have constantly made appeals to those involved to stop destroying their lands and heritage from the spills and pollution arising from their activities.

“We are calling on government, communities and other stakeholders to stem the incessant attack on our oil assets in the Niger Delta,” he appealed.

The general manager said that such illicit activities by criminals had denied the company and country the needed revenue to drive business and development.

He said that despite the attacks on its facilities, the company had spent billions to fund projects in the communities it operates.

According to him, the Niger Delta is the most blessed region in the country going by the huge revenue allocated to the region by government and companies.

“There is a community in the Niger Delta that has received over N2 billion from SPDC JV for its development, but is yet to develop.

“The region receives 13 per cent derivation, revenue from NDDC and funds from companies, but still has not developed.

“The Niger Delta has refused to develop despite the huge monies allocated to the area. So, we need to ask ourselves the critical questions to change the Niger Delta narratives,” he said. (NAN)
DES/ARIS/IS

Edited by Ariwodola Idowu/Ismail Abdulaziz

Economy

Diesel Substitution for Gas: SEPLAT to double 350Mscf of gas per day in 3 years, says Avuru

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With its current output of 350Mscf of gas per day for the Nigerian domestic market, Seplat Petroleum Development Company says it is set to at least double its gas production capacity in the next three years.

“We deliver some 350Mscf of gas per day into the domestic market and most of it for power generation.

“We are responsible for one-third of gas to power in Nigeria and we are increasing that; we will double our capacity in the next three years,’’ Seplat’s Chief Executive Officer, Mr Austin Avuru, said on Friday in Abu Dhabi, United Arab Emirate.

Avuru, who is participating in the ongoing Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), presented a paper on “New Strategies to Accelerate the Industry’s Response to Environmental Pressures’’ at a panel discussion.

The theme of the 2019 ADIPEC is “Oil and Gas 4.0.’’

In the paper made available to the Nigeria News Agency in Lagos, he said that efforts would be geared toward diesel substitution for gas to put the country on a sound clean energy footing and to mitigate the effect of climate change.

“There is non-grid electricity generated by diesel generators and that is where as a matter of policy, the substitution of that diesel generation with gas generation is a major national policy; and Seplat as a company plays a key role in that.

“So for us, both as a nation and as a company, our key efforts are geared towards diesel substitution by gas,’’

On questions about what Nigeria as a major producer of crude oil and Seplat as a company are doing to protect the environment, Auru said Nigeria was committed to a 20 percent reduction in Greenhouse gas emission by 2030 through its commitment to the Kyoto Protocol.

He said: “Nigeria’s emission is only 0.3 percent of the total world’s emission and the country’s energy mix is 15 percent hydro and 85 percent gas to power.

“There is non-grid based electricity generated by diesel-powered generators. And as a result, the country has formulated a policy aimed at shifting from diesel to gas generation.

“Seplat Petroleum is a Nigerian independent producing company generating some 120,000 barrels equivalent of oil and gas per day, listed on the board of London Stock Exchange and Nigerian Stock Exchange in Lagos. Our production is roughly 50-50 ratio of oil and gas.

“The world needs energy to survive, but the world also needs a clean environment to survive. So, it is finding that balance between delivering the energy the world needs and being environmentally protective and that is what this discussion is all about.’’

Describing Nigeria’s energy mix as friendly, the Seplat boss said: “Fortunately, our energy mix even at the starting point is friendly. It is 15 percent hydro and 85 percent gas to power. There is no coal power in Nigeria.

Avuru said the solution to cutting down gas emission lies with efficient use of gas, gas flaring capture, reforestation and smart agriculture.

According to him, between 2009 and 2019, Nigeria’s gas flaring reduced by 45 percent which happened not necessarily because of policies, but for the market that the country’s power generation policy has created.

“We all agree that within the oil and gas space that the solution to environmental stewardship lies with gas, efficient use of gas, and gas flaring capture for power generation and that is also the role we play.

“Nigeria is committed to zero flaring in the next five years. It looks ambitious, but I will tell you that the last 10 years between 2009 and 2019, our gas flaring has reduced by 45 percent.

“And most of this didn’t necessarily come through policies, though there are policies to penalise flaring. What has happened is that a domestic market for gas has been created with the power generation policy.

“For us at Seplat, for instance, if I’m selling a million Btu of gas for 3 dollars, it’s stupid to flare it. So, there is now a commercial imperative to capture otherwise flared gas and put it to use and make money out of it.

“So, over the last ten years, we have had a larger reduction in flared gas than the previous 30 years. And over the next five years, we think that we will completely eliminate gas flaring.

“Diesel substitution to gas generation is being worked on and the efficient use of that follows; then, there are other environmentally-friendly efforts, like reforestation that are ongoing.

“Deforestation in Nigeria has been a big issue. So, smart agriculture, and reforestation through tree planting are initiatives put together by the government and pushed by the private sector, including independents like us.’’ Avuru said.

PDE

(Editing by Peter Ejiofor)

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Oil & Gas

Why hike in cooking gas price may persist – Marketers

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The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), says the current hike in price of cooking gas might persist if activities of Liquefied Petroleum Gas (LPG) Terminal Owners and Off Takers is not checked.

The Executive Secretary of NALPGAM, Mr Bassey Essien told Nigeria News Agency in Lagos on Friday that the development had led to increase in the price of cooking gas from N2, 600 to about N4, 500 in retail outlets.

Essien said that the Nigerian Liquefied Natural Gas (NLNG) vessel on Nov. 13, supplied products to two terminals in Lagos to reduce the scarcity within the South West zone.

He said that this was in line with the Federal Government’s approval for the allocation of about 350,000MT of Gas per annum for local consumption through the NLNG.

Essien said the product was distributed through the terminals/off takers to gas marketers who eventually distribute to end user

“We noticed recently that gas delivered to terminals/off takers sold at N3.2 million per 20 MT a week ago suddenly jumped to between N4 million and N4. 3 million per 20MT at the terminals.

“This singular action has taken cooking gas beyond the reach of ordinary Nigerians who are forced to pay a higher price for product that the price structure from NLNG has not significantly changed.

“We therefore, dissociate our association (NALPGAM) from such exploitative acts of the terminals who are taking the industry and stakeholders for granted,’’ he said.

Essien said the upsurge in the price of cooking gas was detrimental to the efforts of the Federal Government at deepening cooking gas utilisation in the country.

He said that with this development, many Nigerians would go back to using kerosene and firewood which had attendant health effects.

“A filling station which was selling 300 litres of kerosene a week has seen its sales increased to about 6,000 litres because people who cannot afford gas due to the increment are going back to kerosene.

“This has so many negative effects on the economy, especially as food sellers would have to increase the prices of their food or reduce the quantity not to run at a loss,” he said.

Essien commended the NLNG for its efforts in supplying gas to Nigerians.

He added that the company would improve on its performance to deliver gas to other coastal terminals outside Lagos to reduce the inherent pressure on the terminals in the South West.

Edited by Joseph Edeh/Ese E. Ekama

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Oil & Gas

NNPC secures $1.16m US grant for 1,350MW Abuja Power Plant

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The Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) have concluded arrangement to sign a 1.16 million dollar grant as part funding for the NNPC-Abuja Independent Power Project (IPP).

The Corporation disclosed this in a statement by Mr Samson Makoji, Acting Spokesman for NNPC, in Abuja on Thursday.

He said that the arrangement was the outcome of a business meeting between the Management of NNPC and the USTDA at the NNPC Towers.

Makoji noted that both parties agreed to close out the deal on Dec. 1, adding that the IPP was modeled to generate 1,350 megawatts of electricity to alleviate the power challenge in the country.

The Group Managing Director of the NNPC, Malam Mele Kyari, said that the plan by the corporation to build the 1,350mw power plant in Abuja was part of the national strategy to monetize the abundant natural gas resources in the country.

He added that the USDTA grant was to complement the ongoing feed project in order to make the Abuja IPP initiative more bankable for strategic investors’ participation.

“As a state-owned oil company and enabler organisation, we know that our investment in the Abuja 1,350mw IPP will increase energy supply level with great impact on the nation’s economy.

“Therefore, the USTDA grant is timely to make it a bankable project that would attract foreign direct investment into the country,” he said.

The GMD assured the U.S. team that every money given as grant to the corporation would be fully utilised and accounted for.

“This company is focused on making our systems and processes transparent and accountable and that is why we are engaging world class institutions with good track record in execution of our projects,” the GMD explained.

He called on the USTDA to look beyond feasibility studies to actual delivery of the project, stressing that the power plant project has a lot of viable investment opportunities.

In her remark, the Country Manager, Power Africa and the leader of the USTDA delegation, Jullian Foerster, stated that her organisation was determined to work with the corporation to sign off on the grant not later than Dec.1.

She said that USTDA was open to other business opportunities in the coming year, 2020, noting that NNPC’s strategic role as a key player in the oil and gas industry made the U.S. Agency to “jump at the opportunity to work on this deal” of providing support in the form of a grant.

Edited by Ismail Abdulaziz

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1,000 persons benefit from Total Nigeria medical outreach in Lagos

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Total Nigeria Plc says no fewer than 1,000 residents and workers in Kirikiri town in Oriade Local Council Development Area of Lagos State have benefited from its medical outreach.

Its Managing Director, Mr Imrane Barry, who was represented Mrs Bunmi Popoola-Mordi, Executive General Manager, Total Country Services, said this at a medical outreach on cadiovascular disease held at Kirikiri, Lagos on Thursday.

He said Total was not just committed to better energy but also to the well-being of the society where it operates and carries out business.

According to him, the medical outreach is specially targeted at cardiovascular disease, which is a major public health issue in Nigeria.

Barry said that the company believed the disease was not receiving the attention it required from the concerned stakeholders.

“Therefore, in line with our Corporate Social Responsibility (CRS) policy, we are committed to the improvement of the health of our employees, their families and the communities with which we carry out our act.

“This, we do through participation in health programmes, ’’ he said.

He said the Total Cardiovascular Disease Initiative was in direct alignment with the Federal Ministry of Health’s National Strategic Action Plan of Prevention and Control of Non- Communicable Diseases (2015) which identifies CVD as a major public health issue in Nigeria.

The managing director explained that the objective of the project was to reduce the prevalence of cardiovascular disease in Nigeria.

He said: “CVD, being primary due to behavourial risk factors, raising public awareness is as crucial as being able to benefit from early detection.

“To strengthen this awareness, we must act collectively by engaging our stakeholders by building partnerships and by actively contributing to public health policies.

“Presently, cadiovascular diseases like diabetes, hypertension, coronary heart disease or stroke are the leading cause of death in the world.’’

According to him, since the early 2000, roughly 17 million people worldwide have died from cardiovascular diseases annually.

“Majority of these deaths were the result of coronary heart disease or stroke – that’s more than victims of cancer, HIV and AIDS, and malaria.

“The World Diabetes Day is part of an international campaign to spread awareness about cardiovascular diseases, lifestyle change and invariably, stroke prevention, ’’ Barry said.

He noted that during the company’s recent stakeholders’ engagement exercise, Kirikiri town was highlighted as a traffic-prone area with the health of road users and residents being at risk of cardiovascular disease.

“As part of the Total Group Cardiovascular Health Disease Initiative, we are implementing this one-day medical outreach which involves screening exercise of blood pressure, blood sugar and Body Mass Index (BMI) checks,’’ Barry said.

On her part, Popoola-Mordi, who is also the Team Leader, said the United Nations and several health organisations studies had shown that cardiovascular diseases remained the highest killers of people.

She said, “this programme is more about prevention, for people to know. We are doing this in conjunction with the Lagos State Health Authority and also partnership with our Health Maintenance Organisation (HMO) supporting us.’’

She commended the people of the locality for their participation in the exercise.

Speaking on behalf of the beneficiaries, a Community Leader, Mr Theo Aliu, thanked Total for the medical outreach and urged other corporate organisations to emulate the company.

Edited by Adeleye Ajayi

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Oil & Gas

DPR warns dealers, importers against adulterated lubricants

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The Department of Petroleum Resources (DPR) on Wednesday warned importers and dealers in adulterated and substandard lubricants to desist or face prosecution.

Alhaji Isa Tafida, Kaduna Zonal Operations Controller of DPR, gave the warning in Kaduna at a one-day stakeholders’ sensitisation workshop on regulatory requirements for the lubricant oil sub-sector.

Nigeria News Agency reports that the workshop was organised to sensitise stakeholders on the dangers of dealing in substandard lubricants.

He said that the storage, distribution and sales of lubricants without DPR licence, contravened section 4 subsection 1 of the Petroleum Act, 1977.

“The law states that nobody can import, store, distribute or sell any petroleum products without a licence granted by the Director, DPR on behalf of the Minister of Petroleum Resources,“he said.

Tafida said the DPR would rigorously pursue policies that would sanitise the lubricant sub-sector, adding that all dealers must adhere strictly to the regulations.

” Stop proliferation of substandard lubricant brands, desist from sale of base oils as lubricants to motorists as that hinders the efficiency of an engine and also pollutes the environment,“he said.

The controller explained that the workshop would resolve and recommend measures to sanitise the lubricant subsector, synergize with security agencies and major stakeholders to apprehend and prosecute offenders.

Tafida added that the workshop would educate stakeholders on the online Licensing procedure to meet Operational requirements.

“We currently have 53 Lube blending plants in Nigeria with a combined total production capacity of 6, 023,406 liters per day of lubricants.

“Therefore, there is no need for anyone to think of importing lubricants into the country.

“With the rehabilitation of the nation’s refineries and the coming on stream of the Dangote Refinery, Nigeria will meet the demand of local consumption of standard lubricants,” he said.

Tafida said patronising the Nigerian lubricants which can compete with any similar product elsewhere would be safer for the environment.

He urged motorists and other users of lubricants to patronise major dealers in petroleum products to avoid the complications involved in the use of base oils as lubricants.

NAN reports that representatives of major petroleum marketers attended the workshop.

SA/

Edited by Joseph Edeh/Maharazu Ahmed

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Kyari tasks NNPC Retail Ltd on unadulterated products

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The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, has tasked the board  and  managementg of  NNPC Retail Limited to ensure the delivery of unadulterated products to motorists nationwide.

Kyari gave the charge in a statement signed by Mr Samson Makoji, the acting spokesman for the Corporation, in Abuja on Tuesday.

He spoke during the inauguration of a new Board of Directors for the company.

He said that the management must strive to sustain the company’s culture of delivering unadulterated petroleum products to Nigerians in its filling stations.

He noted that the confidence of Nigerians in the company’s commitment to delivering high quality products and the right quantity at the right prices was a great asset to sustain.

He noted that the new management could leverage on the trust that the company had built to achieve the target of growing market share to 30 per cent.

“We have to maintain our viable operational strategies to advance our cause. NNPC Retail Limited’s management must focus to ensure that products are not adulterated and meters for both our own and our affiliate stations are not tampered with .

“This will make those who buy our products to derive maximum value for their money,” Kyari said.

The GMD further said that NNPC Retail Limited occupied a strategic position in the energy matrix of the country as a first line company with strong brand in petroleum products supply and distribution.

According to him, there is need to expand its scope and capture at least 30 per cent market share within the shortest time possible for the benefit of Nigerians.

He explained that automation of process, continued maintenance of customer base and expansion would assist in speedy attainment of target.

Responding, Usman Yusuf, the Chief Operating Officer (COO), Gas and Power, and Chairman of the Board of Directors,  stated  his team’s readiness to deliver on the task.

Other members of the board are  the COO, Downstream, Adeyemi Adetunji, Alternate Chairman; COO, Refineries,  Mustapha Yakubu; Managing Director of NNPC Retail Ltd, Sir Billy Okoye and Company Secretary, NNPC Retail Ltd, Mrs Obioma Abangwu.

In another development, NNPC has given assurance that it will be transparent in the 2020/2021 selection of Lead Insurer for its Oil Assets.

It said that a total of 42 companies submitted bids for the lead insurer contract and promised that each of the bids would be assessed on its own merit ( NAN)

edited by Chukwudi Ekezie

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