Is 2020 really the Year of Gas for Nigeria?

London, 19 June 2020 – The Honourable Minister for Petroleum Resources, H.E. Timipre Sylva, declared 2020 as the Year of Gas for Nigeria. The year started off with plans to harness Nigeria’s gas by tackling some of the barriers including the passing a regulatory framework for the upstream sector and the launch of the Nigerian Gas Transportation Code to further drive gas-based industrialisation.

As March approached, the industry experienced a sharp drop in oil price at $24.63 Brent and then to $16.95 Brent in April. Covid-19 had impacted lives and business in unprecedented measure. Many plans were put on hold and a new global mantra of cost cutting for survival emerged.

The news of Nigeria LNG awarding a $4 billion EPC contract for the Train 7 project to Saipem, in a joint venture with Daewoo E&C Co. Ltd. and Chiyoda Corp., was highly welcomed as is any news of the progression of plans to further develop the industry, and therefore world economies. The awarding of the contract signified a key milestone in the advancement of the project and sparks plenty of optimism for Nigeria amidst a global pandemic.

Once operational, Train 7 will add around 8 metric tonnes per annum (mtpa) of capacity to the Bonny Island facility, taking the total to around 30 mtpa. This moves Nigeria’s global position to the 3rd largest exporter of LNG.

Tony Attah, MD & CEO of Nigeria LNG, speaking on the EPC contract during the dmge Africa Energy Series: Spotlight Interview stated that:

“The FID for Train 7 & award of its EPC contract is… very reassuring as it renews our hope that Nigeria LNG will maintain a significant market share in the global gas market and will continue to reap the potential benefits in the market.”

When asked about the role of gas in the energy transition, Mr Attah commented that;

“Whilst a quick switch to renewables and other cleaner energy sources is desirable, current data indicates that the practical reality is that it cannot be achieved on a global scale as quickly as many parties are pushing for. We must therefore find a way to bridge the gap between where we are today, and where we desire to be. This is the role that gas is expected to play in the medium and long-term.”

In addition to increasing Nigeria’s presence in the global LNG market, opportunities to harness the gas for domestic consumption have long been discussed by industry stakeholders. Barriers to contend with includes gas pricing for the domestic market, limited infrastructure for distribution and a commercially viable market.

Mr Attah highlighted the vast opportunities availed by Nigeria’s huge gas reserves in comparison to crude and highlighted the various opportunities the Train 7 project will offer the country.

“We have proven 200 tcf of gas and we have another 600 tcf that we know about but need to prove under the SEC rules. Today as number 9 in the world in terms of gas reserves, if you prove the 600, you go straight away to number 4 ahead of Turkmenistan. For me, that is a major, major opportunity to really jumpstart the sector…. A lot depends on the fiscals and how the government is able to incentivise gas development, which must happen.”

In addition to increasing Nigeria’s footprint in the Global LNG market through the execution of Train 7, Nigerian LNG also has plans to take advantage of opportunities to develop a domestic gas market and spur gas-based industrialisation. Similar to what has been achieved in developing a domestic LPG market, Mr Attah confirmed the organisations intentions to extend efforts to develop a domestic LNG market.

“We are currently looking at bringing LNG in-country… With the global market dwindling, we see very high demand for gas and other forms of energy in Nigeria and in deed in Africa. As you know, more than 50% of the population that does not have access to energy in the world is in Africa. So, the domestic LNG project that we are looking at is to be piloted in Nigeria and then we will go regional and then look at Africa as a whole.

It’s a project that’s already on. As we speak there are a few people that have already indicated interest and we are working with them to see how much capacity they are able to develop to make this real.

We have just established that the price is no longer within anybody’s forecasts, view or control, we perhaps have a future where we have to be a market maker for this to be able to have the essence of the full value chain coming to fruition in country. ”

In closing, Mr Attah’s sentiments were clear and rang in unison with the proclamation made by H.E. Timipre Sylva at the beginning of the year.

“Nigeria has ridden on the back of oil for over 50 years but now the time has come for Nigeria to fly on the wings of gas. It’s time for gas.”

Hear more about opportunities the Train 7 project will offer the country at the upcoming 20th Nigeria Oil & Gas Conference & Exhibition 9 -12 November 2020, Abuja, Nigeria.

– ENDS –

To watch the full live interview with Tony Attah, MD & CEO, Nigeria LNG go to: https://ift.tt/2BkczTl

 

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Eunisell to tackle marginal field operation challenges

A leading oil & gas production solutions companies, Eunisell, has reiterated its commitment to assisting marginal oil field owners overcome complex technical and financial challenges.

Speaking at the Nigeria Oil & Gas Conference and Exhibition (NOG 19) in Abuja, Eunisell’s Group Managing Director, Chika Ikenga, said this will help the government achieve its local content objectives.

He said: “We are proud to be a Silver Sponsor at NOG 19 in Abuja. Achieving the objectives of the local content programme, is a vital factor in sustaining Nigeria’s economic development and oil industry growth.

“Eunisell brings in its own assets and resources to help achieve early cash flow and accelerate the marginal oil fields’ development. Our track record speaks for itself. We are there to help build viable, Nigerian oil and gas businesses.”

Ikenga noted that “The marginal field development programme and the recent divestments of fields by IOC’s have increased the participation of Nigerians in the oil and gas industry. The gap in technical and financial resources that have fallen out of recent developments is being closed by Eunisell’s unique production solutions.

“The Qua Ibo field is a clear example of what we have done. Apart from building a production facility in record time with the skills of highly experienced Nigerian professionals, Eunisell’s fast track solution helped to get these fields into early cash flow.

“Similarly, Eunisell’s fast track production facilities, helped to achieve first oil in record time at OML 56 in Delta State, and the OML 46 Atala field in Bayelsa,” he added.

Eunisell, with more than 20 years’ experience, was recently certified with ISO 9001:2015, which Ikenga said underlines the services firm’s ability to deliver critical Quality Management Systems (QMS), and Processes to its customers.

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UK, Norway, Pledge Support For Nigeria’s Oil, Gas Sector

The United Kingdom (UK) and the Norwegian governments yesterday pledged to support efforts that would drive growth and development in the Nigerian oil and gas sector

The two countries reiterated their commitment at the ongoing Nigerian Oil and Gas Conference and Exhibition, in Abuja, yesterday with the theam ‘‘Promoting Investment collaboration in the oil and gas sector.”

The British High Commissioner to Nigeria, Catriona Laing said Nigeria was its second largest partner in Africa and 95 per cent of UK’s import was from Nigeria.

“We have a very strong bilateral and strong ambition with what we are doing with Nigeria,’’ she said

He said that Britain had over 50 years’ experience in exploration and would be ready to help Nigerian and in tackling some of its problems in the sector.

She further said that for Nigeria to continue to witness positive result and growth in the sector, government must ensure transparency, sanctity of contracts, ensure a dependable judiciary sector among others.

She noted that UK will in 2020 host the African investment Forum in London and urged government and all stakeholders in the sector to participate.

‘‘The investment forum is an opportunity for anyone to showcase investments for financing because we already have an amount set aside for such support. If you don’t access it, it will be there,’’ she said.

Also, Norwegian Ambassador to Nigeria, Mr Jens-Petter Kjemprud said that President Muhammadu Buhari needs the oil sector to help tackle numerous challenges in the country. According to him, the oil sector was used to develop the Norway and by extension enhance growth and development.

He added that Norway managed it’s oil and gas sector with high transparency, true democracy and enforcement and of the rule of Law. This, he said, Nigeria should emulate adding that government must redirect its focus to renewable energy where the world is currently focusing.

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Nigeria Sees $48 Billion in Energy Investments Between 2018 and 2025

Nigeria sees itself securing oil and gas investments worth $48 billion between 2018 and 2025, which is 25% of a $194 billion surge of capital anticipated to flow into Africa during the eight-year period, according to the state-owned Nigerian National Petroleum Corp.

“The nation’s energy outlook appears very positive even amidst the difficult operating and economic headwinds across the continent,” Maikanti Baru, the outgoing group managing director of the company also known as NNPC, said at an oil and gas conference in the capital, Abuja. “For Nigeria, therefore, oil and gas remain essential building blocks for our economic growth.”

Crude output for Africa’s largest producer is currently in the region of 2.2 million to 2.3 million barrels per day, with reserves at 37.5 billion barrels, the second-biggest in Africa after Libya’s, according to Baru. Nigeria also has the ninth largest gas reserves at 201 trillion cubic feet and an estimated potential of 600 trillion cubic feet, he said.

These resources provide opportunities for investors and the government is determined to create the environment that will help drive the necessary investments in a sustainable manner, according to the state oil company. Given growing local demand for petroleum products, the NNPC has undergone a shift in its business model to focus more on domestic refining of crude.

“The recent fiscal challenge experienced by the nation places a burden for change,”Baru said. “Hence, we have undertaken to broaden the base of investment sources.”

Baru, who will officially retire from the corporation on July 7, will be succeeded by Mele Kyari, the former head of the crude-marketing division.

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FG to begin clampdown on defaulting oil firms over NCDF remittances

The Nigerian Content Development and Monitoring Board, NCDMB, Monday, disclosed that from September, it would begin the clampdown of oil and gas companies operating in the country, who are defaulting in the remittance of the one per cent Nigerian Content Development Fund, NCDF.

Speaking at the ongoing Nigerian Oil and Gas Conference and Exhibition in Abuja, Executive Secretary of the NCDMB, Engr. Simbi Wabote, said the defaulting firms would be handed over to the Economic and Financial Crimes Commission, EFCC, for investigation and prosecution. 

Wabote disclosed that this becomes necessary following the importance of the Fund and its benefits to growing indigenous content in the Nigerian oil and gas industry.

According to him, the NCDF had been very useful in the setting up of the $200 million Nigerian Content Intervention Fund, NCIF, whereby indigenous firms had accessed up to $160 million, leaving $40 million.

He added that the NCDMB exited appropriation of the Federal Government on 2018 and had been able to drive its activities of promoting local content, the building of its headquarters complex in Bayelsa and the construction of an industrial park through the effective utilisation of the fund.

Wabote noted that the NCDMB had engaged third party monitors and would be conducting a forensic audit to identify companies not making the mandatory remittances to the NCDF.

Furthermore, the NCDMB boss stated that the board was partnering with an indigenous firm, Waltersmith Petroman in the construction of a modular refinery, while he declared that the refinery is scheduled to come on stream, May 2020.

He also stated that the NCDMB was considering refining options in the gas sector among numerous other opportunities in the sector.

Wabote added that the NCDMB is partnering with Agip Nigeria to set up a 25 megawatts power plant, to provide electricity to the industrial parks on completion and its headquarters complex, all on Bayelsa State.

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NCDMB disburses $160m from Nigerian Content Intervention Fund

The Nigerian Content Development and Monitoring Board on Monday revealed that it had so far disbursed $160m out of the $200m Nigerian Content Intervention Fund to oil companies for the development of modular refineries, and capacity building, among others.

It also lambasted international oil companies operating in Nigeria for not appreciating the in-country capacities that had been developed over the years in the country’s oil and gas sector and urged the IOCs to take time and evaluate the capacities in Nigeria.

In his opening address on Nigerian Content Seminar at the ongoing Nigeria Oil and Gas conference in Abuja, the Executive Secretary, NCDMB, Simbi Wabote, noted that when he assumed office at the board, he was always confronted with the question of how much was in the purse of the agency for local content development in Nigeria.

“When they (journalists) ask, I give them the exact figure and these days I don’t face that question anymore,” he said.

He added, “But then people also started asking, ‘what did you do with this fund?’ One, I am happy to tell you that the $200m capacity development with the Bank of Industry has actually been very successful.

“Today we probably have about $40m left because $160m has been accessed by Nigerian companies to build capacity. So I don’t worry about people asking me what are you doing with the fund.”

Wabote, however, noted that a lot of companies that benefitted from the fund were defaulting in terms of paying back what they were given.

He said, “We cannot believe that some companies are not paying but they are doing business in the oil and gas sector. These include IOCs, indigenous companies, contractors and operators. We are getting close to where we will hand them over to the authorities.

“We are almost there where when we compile how much they are supposed to have paid and how much they owe, we will give them to the Economic and Financial Crimes Commission because they are the agency responsible to recover such funds. That will happen in the next one or two months.”

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Oil, gas firms access $160m local content fund

John Cardinal Onaiyekan has called on the Federal Government of Nigeria to defuse the tension that has arisen in the country in recent times, restore peace and security.The NCDMB Executive Secretary, Simbi Wabote, disclosed this at the 2019 Nigeria Oil and Gas Conference and Exhibition, with the theme “Promoting Investment collaboration in the oil and gas sector,” in Abuja on Monday.

Wabote was the guest speaker at the Nigeria content seminar with the focus on the Nigerian Oil and Gas Industry Content Development Act.

“Out of the 200 million dollars Nigeria local content intervention fund, 160 million dollars has been accessed by indigenous oil and gas companies in building capacity and other relevant projects in the sector.

“We have 40 million dollars left,“ he said.

He added that the fund, which was domiciled with the Bank of Industry, had helped to boost local content drive in the country.

Wabote said that it was unfortunate that some oil companies had yet to remit one percent of their projects money in the country.

He said that the board was working hard to get forensic auditors to ensure those companies were brought to book and be handed over to the Economic and Financial Crimes Commission (EFCC).

“This will happen in the next one to two months, we will hand them over to the EFCC because they are the ones that have the right to collect such money,” he said.

Wabote said that the fund had helped the country to record a lot of progress in the sector as many Nigerians had been trained to fit into the available jobs in the sector.

He said that the board had supported the building of some modular refineries, which would start operating by May 2020, adding that the current focus was on gas value chain.

He added that industrial parks in Bayelsa and Calabar were almost at their completion as structures were already up.

He frowned at International Oil Companies, who were asking if Nigeria had the capacity to deal with the new businesses in the industry.

“Most companies don’t step out of their comfort zones to know what is happening because they are not interested in the development of the country they are operating and even to create jobs,” he said.

He noted that many Nigerian had got adequate capacity to handle development in the sector, especially in construction, fabrication among others.

He reiterated that the local content drive in the country had contributed positively to the oil and gas sector in the country.

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NCIF Repayment Infraction: NCDMB To Hand Over Non-Compliant Companies To EFCC

The Nigerian Content Development and Monitoring Board, NCDMB has warned that it would hand over beneficiaries of the Nigerian Content Intervention Fund (NCIF) who have refused to comply with the repayment terms of the NCIF to Economic and Financial Crimes Commission, EFCC.

The Executive Secretary, NCDMB who on Monday revealed that $160m out the $200m intervention fund has been disbursed for the purpose of capacity building and support to indigenous businesses, however, noted that many companies that benefitted from the fund have failed to repay their loan.

Delivering the Nigerian Content Seminar opening address at the Nigerian Oil and Gas Strategic Conference and Exhibition, with the theme ‘, Promoting Investment and Collaboration in Nigeria’s oil and Gas Industry’, Wabote said that “Our major objective today is to utlise this seminar to zero-in on key provisions of the NOGICD Act to reinforce understanding, provide clarifications, and use it to serve as an additional training outlet for those that are new to the industry or ignorant of the law.”

Providing an update on the NCIF fund, the ES said, “I am happy to tell you that the $200m Nigerian Content Intervention Fund with the Bank of Industry has actually been very successful. Today, we probably have about $40m left because $160 billion has been accessed by Nigerian companies to build capacity.

“However, you can’t believe that some companies are not paying and they are doing business in the oil and gas industry.  They include the IOCs, indigenous companies, contractors and operators. We are getting close to where we will hand them over to the authorities. We are almost there where when we compile how much they are supposed to have paid and how much they owe, we give them to EFCC because they are the agency responsible to recover such fund. That will happen in the next one or two months, I can assure you,” Wabote said.

Speaking further, the ES noted that the Board in collaboration with the Bank of Industry (BoI) has through the fund supported project promoters, the establishment of modular refineries and exited appropriation to become a self-funding agency of government.

“The NCDF has also enabled us to progress the construction of our new headquarters building and industrial parks, provide support for Project 100 beneficiaries, funding human capital development programmes and deliver other activities.

Calling on the industry players and stakeholders to comply with the provisions of Section of 104 of the NOGICD Act, Wabote said that a recent forensic audit carried out by the Board through independent accounting firms revealed various types of contraventions.

“We have issues of non-deduction of statutory fees, non-remittance of the amount deducted at source and misinterpretation of the provisions as contained in section 104. Let me also use this opportunity to commend those who have conscientiously complied with the provisions of section 104.

“I wish to highlight that the Board is determined to fully recover all outstanding obligations and ensure that only complying companies gain from the industry. Because when we get to that stage when we hand those companies over to the authorities, we will not entertain any approval request from any of these companies be it expatriate quota approval, contract renewal approval.

“We are gradually inching into that stage, hence, we will deploy all legal instruments in this regard including suspension of all clearances and cutting off non-compliance companies from industry tender and bidding processes.”

Via https://www.orientenergyreview.com/local-content/ncif-repayment-infraction-ncdmb-to-hand-over-non-compliant-companies-to-efcc/ 

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NCDMB wins 1st Dr Alirio Parra award at NOG 2018

The Nigerian Content Development and Monitoring Board, NCDMB, has been conferred with the first Dr Alirio Parra Award for outstanding contributions to the Nigerian oil and gas industry.

The award was presented to the Executive Secretary, NCDMB, Mr. Simbi Wabote at the gala dinner held on Wednesday in Abuja to mark the end of the 2018 Nigerian Oil and Gas Conference and International Exhibition.

Total Exploration and Production Company was also recognised for its sterling contributions to the growth of Local Content through the exectution of the Egina deepwater project.

CWC and Levmora Services, organisers of the NOG conference said NCDMB was chosen for the Dr Alirio Parra Award for being the most outstanding federal agency in the Nigerian oil and gas industry.

The Board was also feted as very innovative, introducing several initiatives that are geared towards improving the operations of the sector and developing the Nigerian economy.

Tha late Alirio Parra, former Minister of Energy and Mines, Venezuela and Senior Advisor, CWC Group Limited died on March 9, 2018, aged 90.

He also served as President of the Organisation of Petroleum Exporting Companies, OPEC Conference and was involved with many professional activities in the international oil and gas sector.

He had insightful knowledge of the Nigerian oil and gas industry, had been visiting Nigeria for over 40 years and delivered addresses at annual NOG events.

In a similar vein, the NCDMB has signed a Memorandum of Understanding with the CWC on the organisation of the Practical Nigerian Content, PNC, Workshop and Exhibition.

Wabote signed on behalf of the NCDMB on Monday at the first day of the NOG Conference while the Vice-President, Production, CWC, Ms. Wemimo Oyelana signed on behalf of the company.

The Executive Secretary explained that the MoU is for five years and revenues generated from hosting the annual event would be shared between the Board and CWC.

He also stated that CWC was working to be incorprated in Nigeria. The PNC Workshop was conceived by CWC and it organises the first edition in Port Harcourt, Rivers State, in 2011.

Subsequent editions were held in collaboration with the NCDMB, in Yenagoa, Bayelsa State between 2012 and 2015. The event was moved to Abuja in 2016 and Uyo, Akwa Ibom State in 2017.

The 2018 edition will be held at the Board’s new headquarters building, which is being completed in Yenagoa, Bayelsa State.

Via https://www.vanguardngr.com/2018/07/ncdmb-wins-1st-dr-alirio-parra-award-at-nog-2018/

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Aiteo declared company of the year at Nigeria Oil and Gas Conference Awards

The Aiteo Group has been declared as indigenous oil and gas company of the Year at the Nigerian Oil and Gas (NOG) Awards on 4 July 2018, at the International Conference Centre (ICC), held in Abuja from 2-5 July 2018

Organised by London-based CWC Group and now in its 18th edition, the NOG is Nigeria’s leading annual oil and gas industry event which draws major players across the Nigerian Energy sector.

The conference is a viable platform for networking, sharing ideas and exploring new opportunities and innovations in the industry. More than 100 industry professionals were gathered from both the public and private sectors. Dignitaries at the conference included the secretary-general of OPEC, Dr Sanusi Barkindo, Nigeria’s minister of state for petroleum resources, Dr Ibe Kachikwu, group managing director of the Nigerian National Petroleum Corporation, Dr Maikantu Baru, and chief executives of major oil and gas companies operating in Nigeria.

Responding to the award, Benedict Peters, CEO of Aiteo and executive vice-chairman, attributed the company’s emergence as the indigenous oil and gas company of the year to the employees and the Nigerian economy.

“We remain committed to our vision of shaping the future of sustainable energy in Nigeria and beyond, strategically deploying resources and technologies that lead to sustained economic development and value for all stakeholders. This honour from the NOG is fulfilling, particularly coming from our peers and a reputable industry platform. We dedicate this award to the highly committed, talented and industrious people working at Aiteo and making things possible on a daily basis.” Peters added.

In the CSR arena, Aiteo gives back to the local communities in which it operates through grants and donations, seed capital and philanthropy. It has also supported several social investment projects, including a special focus on supporting the study of Engineering in host communities and sports.

In sports, Aiteo has become the foremost financier of football in the country after a string of contributions to the Nigerian Football Federation (NFF) and the Super Eagles. To support local football, Aiteo took over the sponsorship of the Federation Cup, Nigeria’s oldest football tournament, now renamed Aiteo Cup. On the continental stage, Aiteo partnered with the Confederation of African Football(CAF) to sponsor the African Football Awards in January this year. 

Via http://www.oilreviewafrica.com/event-news/aiteo-declared-company-of-the-year-at-nigeria-oil-and-gas-conference-awards

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Stakeholders seek ‘fiscal certainty’ to unlock investment in Nigeria’s oil sector

Stakeholders at the ongoing Nigeria Oil and Gas Exhibition (NOG) have called for fiscal certainty, which they say will serve as incentive to global investors seeking to unlock billions of potential investments in Nigeria’s oil and gas sector.

‎Apart from concerns of fiscal certainty, the stakeholders also urge the Federal Government to ensure reforms being done through the Petroleum Industry Bill are holistic and attract international investors into the sector.

Nigeria’s deputy minister of petroleum resources, Emmanuel Ibeh Kachikwu, has repeatedly said the Nigerian oil and gas sector requires about $100 billion to open up investment in the sector, and attract more capital inflow into the nation’s economy.

Speaking on Wednesday at Industry leaders’ Panel, with the topic: Unlocking Nigeria’s Investment Potential, Paul McGrath, managing director of Mobil Producing Nigeria Unlimited, ‎said, “To unlock investment potentials in the country, we need fiscal certainty to attract global industry players with huge capital into Nigeria’s oil rich resources.

“You need to have the right framework in place to have global competitive fiscal price policies in place to help lift the opportunities in the sector.‎”

According to McGrath, “When we talk about investment potential in the country, there is a huge potential in that regard. The second one on investing in the country’s potential is on investing in the people.‎

“There are works that have been done on the Petroleum Industry Bill, both by the‎ Executive and the Legislature. It needs to have an end result, which is inadvertently to attract international investment.”

He said further, “The Nigerian government must be ready to have reforms that will unlock the potentials in the sector that needs to continue attracting international investments.‎”

In his submission at the panel, Jeff Ewing, chairman/managing director, Chevron Nigeria Limited, said, “The Federal Government has been making efforts on competitiveness and on the ease of doing business, and that is the discussion we have been having with the government to enable them have a wider understanding of the implication of the competitiveness of their Industry.”

He remarked further, “The government has made some good steps on the Petroleum Industry Bill.‎ We have also look forward to continuous engagement to ensure Nigeria continues to grow investment in the deep water and gas.”

He further pointed out, “The JV in gas and deep water deals should be made to draw more investment into the Nigerian economy.”

On the need for fiscal policy to drive investment in the sector, he said, “We really need fiscal policy terms to drive deep water gas investments, while pushing those gas reserves into marketplace.”

According to him, “We need to have willing buyer – willing seller where the prices are competitive globally. There are also historic issues in addressing gas payments that often occur to boost investor confidence.

“We are working with the NNPC to acquire $3 billion third party funding, and we have $1.2 billion gas project, which included lots of activities for the local economy.”

Osagie Okunbor, country chair, Shell Companies in Nigeria, who was also a panellist, said,‎”We have been discussing cash calls as a never ending issues. We have been able to sit down in a table to address the cash call issues. It has started two three years ago.

‎”Nigeria is competing for capital inflows with every other countries of the world. Each of these companies operate in 70-80 countries globally, and each of those countries want those capital into their country too.”

While speaking on Federal Government’s interventions on Joint Venture cash calls, he said, “What is of significance today is that that argument is off the table. We finished a year without the NNPC owing cash calls to International Oil Companies. This kind of gesture by the government naturally opens up the investor confidence in the sector.”

He suggested, “The whole JV process, we have to put our hands on deck, and find a funding structure that works and ensures sustainability. I read in papers that the governors have instructed NNPC to suspend cash calls, and I said that gesture could truncate our progress.”

Suggesting the way forward, he said, “What we need to do is to put the kind of energy that has been put in resolving the cash calls issues around security, sanctity of contracts, and issues around contracting cycles.

“PIB must be passed to remove uncertainty, but not the PIB that does not encourage investment. Sometimes, it is not PIB for the sake of ‎PIB, which has the need to encourage investment. What we are happy about now is that consultation has been very extensive. Both in the Senate and in the House, and they have been supportive.”

Via http://www.businessdayonline.com/companies/oilandgas/article/stakeholders-seek-fiscal-certainty-unlock-investment-nigerias-oil-sector/

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Special Keynote Address by OPEC Secretary General

Delivered by HE Mohammad Sanusi Barkindo, OPEC Secretary General, at the Nigeria Oil and Gas Conference and Exhibition, 3 July 2018, Abuja, Nigeria.

Excellencies, distinguished delegates, ladies and gentlemen,

It is my absolute privilege to address the Nigeria Oil and Gas Conference and Exhibition, which is in its seventeenth year. This is actually my first engagement outside of Austria since one of the busiest weeks in the history of OPEC, which included meetings, conferences and the 7^th International OPEC Seminar. This makes it even nicer to return back to our magnificent home country!

I must confess, it does feel somewhat bitter-sweet to participate this year. Sadly, 2018 marked the passing of one of the fathers of this conference- Dr.  Alirio Parra.

Read full address at http://www.opec.org/opec_web/en/press_room/5103.htm

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Chevron MD Advocates Sustained Oil, Gas Investments At NOG

Jeff Ewing, Chairman/Managing Director, Chevron Nigeria Limited (CNL), has called for collaboration by all stakeholders for the achievement of sustained investment and growth in the oil and gas industry in Nigeria.

Jeff, who made the call while contributing to the panel discussion on ‘Unlocking Nigeria’s Investment Potential,’ at the Nigerian Oil and Gas (NOG) conference in Abuja on Wednesday, noted that the current relative stability in the global oil markets presents an opportunity for both the industry operators and the government to appraise the industry and provide enduring solutions.

He said the industry has an opportunity in rejuvenating old frontier basin exploration, to discover impact resource additions for strategic reserves replacement and growth and opportunities to continue to enhance efficiency and reduce cost.

While stressing the expected government’s focus on creating an enabling environment for investment to thrive and developing new oil and gas fiscal policy that are globally competitive, he applauded the efforts of the government and the Nigerian National Petroleum Corporation (NNPC) in addressing the issue of joint venture cash call arrears.

The Chevron MD also mentioned some steps to ensure growth of the Nigerian gas sector which include efforts in driving initiatives in effective utilisation of the nation’s abundant gas for achieving the goal of energy security, and enacting fiscal terms that encourage the development of small to mid-sized assets/reservoirs as well as non-associated gas fields.

Other measures to advance the gas sector, according to him, include the establishment of a competitive deepwater gas fiscal framework, the commitment to supporting and enabling ‘willing buyer – willing seller’ gas pricing model, and the development of strategy for legacy payments for gas sold to the domestic power market.

He informed that CNL continues to sustain efforts towards delivering exploration and production projects and activities as well as making significant investments in gas projects, and some of the accomplishments include the $1.2 billion gas and condensate project scope that include drilling, major rig work-overs and associated facilities as well as ongoing offshore and onshore drilling campaigns.

Jeff emphasised CNL’s efforts in playing a lead role in growing supply of high quality domestic gas and monetising liquid rich gas reserves; the reduction of routine flaring by over 90% in the past 10 years as well as the significant successes in Nigerian content development.

Chevron contributes 41% of the total domestic gas supply in Nigeria, according to DPR statistics.

Chevron, he said, is proud to be partners with the Nigerian government to actualise progress in Nigeria’s oil and gas sector for over 50 years, adding that with the right policies, the enormous potential of Nigeria’s oil and gas sector can yield even greater benefits.

Via https://independent.ng/chevron-md-advocates-sustained-oil-gas-investments-at-nog/

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What to expect from Nigeria’s Oil and Gas 2018 conference

This year’s edition of Nigeria’s Oil and Gas Conference is themed, driving Nigeria’s oil sector towards sustained economic development and growth. Victor Ude, Group CEO of Vurin Group and a speaker at the local content development seminar at the conference joins CNBC Africa to discuss what changes he hopes this year’s edition will bring. 

Via https://www.cnbcafrica.com/videos/2018/07/04/what-to-expect-from-nigerias-oil-and-gas-2018-conference/

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NNPC says Nigeria will increase crude oil reserves by one billion barrels yearly

The Nigerian National Petroleum Corporation (NNPC) has said that the country will increase crude oil reserves by one billion barrels yearly to meet 40 billion barrels target by 2020.

Group Managing Director of the NNPC, Maikanti Baru, who spoke yesterday at the ongoing Nigerian Oil and Gas (NOG) conference and exhibition in Abuja, said the corporation’s focus for 2018 and beyond was to increase crude oil reserves by one billion barrels year-on-year from the current 37 billion barrels to 40 billion barrels by 2020 and also increase national oil daily production to three million barrels per day.

Baru said security and environment, high industry technical cost, funding of investments, among others, as well as low crude oil prices, remain key challenges in the oil and gas sector, adding the current administration has been working hard to address them.

According to him, government has issued an updated oil and gas policy and initiated the process for enacting a new Petroleum Industry Governance Bill that provides clarity on the government institutions and their roles in the industry.

Besides, he said the corporation would adopt the option of raising more finance from the capital market for new oil and gas projects.He noted that while domestic demand for gas in Nigeria remains unprecedented with a current daily realistic gas demand of 4,000 mmscfd, which is expected to grow exponentially to about 7,500 mmscfd in the next five years, within the next three years, the group would increase natural gas availability from the current 1.5 billion scf/d to about five billion scf/d in 2020.

In another development, the Federal Government says it will no longer approve oil and gas production projects in the petroleum industry unless there are adequate plans on cost.Minister of State for Petroleum Resources, Ibe Kachikwu, said this yesterday while speaking at the conference and exhibition in Abuja.He said the current cost of oil production in the country remained unacceptable.

“The government will supply enough gas to generate up to 15GW of electricity to the power sector by 2020 and stimulate gas-based industrialisation,” he added.According to him, supply agreements will continue to be made effective with terms that assure bankability to provide the relevant comfort to producers.Meanwhile, the GMD said in terms of frontier exploration, the corporation was hopeful that there would be drilling of appraisal well in the Benue trough in the third quarter of 2018.

Via https://guardian.ng/news/nnpc-says-nigeria-will-increase-crude-oil-reserves-by-one-billion-barrels-yearly/

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NCDMB signs a MoU with CWC Group Africa

The NCDMB has signed a MoU at NOG 2018 with CWC Group Africa for the hosting and organizing of the Annual Practical Nigerian Conference (PNC) for the next 5 years. The ES, NCDMB, Simbi Wabote signs on behalf of the board while Wemimo Oyelana signs for CWC Group.

 

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Sustainable PSC terms will drive Nigeria’s deep offshore investment, says Total

Deputy Managing Director, Deep Water, Total Upstream Nigeria Ltd., Ahmadu-Kida Musa, yesterday in Abuja, said the country must put in place sustainable Production Sharing Contract (PSC), and gas terms to drive continued investment in the nation’s deep offshore oil and gas sector.

Speaking at the Nigerian Content Seminar, as part of the ongoing Nigeria Oil and Gas Conference & Exhibition (NOG), Musa revealed noted that six out of the 18 topside modules of the Egina FPSO were fabricated, lifted and fully integrated in-country.

He also noted that sustaining such efforts can engender building a full EPSO in the next eight years provided Nigeria had the right policies and investor-friendly laws.

According to him, with some large deepwater discoveries such as Bonga South West or Owowo, still to be developed in Nigeria, sustainable PSC and Gas terms are imperative, as fundamental requirement for the growth of the country’s deep offshore.

Musa added that favourable terms would enhance efforts, as private operators are focused on reducing the cost of new deepwater projects to ensure their sustenance and bring value at $50 per barrel.

The DMD, who said the development of new projects was critical to maintaining industry capacities, said: “As the industry moves even further offshore, the need for this know-how cannot be over-emphasised.

Nigeria must move up to a level where it is able to meet the competency needs of other new entrants within the Africa sub-region and be considered as a technological hub for the region.

“Nigerian Content in the Nigerian Oil & Gas Industry, through careful legislation and government policies could also have great impact in other sectors of the economy, including: Information & Communication Technology/Telecommunication, agriculture, engineering and construction, manufacturing, transport and storage, power, finance, etc.

“The next frontier is very broad and filled with opportunities. But it is also lined with a lot of challenges that I believe are surmountable. Let’s take the bold steps and decisions that we all require to move into the next phase.”

Musa said the Egina FPSO, currently in Lagos, would in the coming weeks, sail away to Egina field, which is located in oil mining lease, OML 130, approximately 150 kilometres offshore Port Harcourt.

“It is the deepest offshore development carried out so far in Nigeria, in water depths of over 1,500 meters and the project is designed to produce 200,000 barrels per day of oil at plateau.

In addition to the oil, the Egina field will produce gas. Associated gas will be partly re-injected into the reservoir to maintain reservoir pressure, and partly channelled to supply the domestic gas market,” he added.

Musa said driving local content in Nigeria has had multiplier effects, especially in the areas of revenue retention, job creation, skill development and others.

Via https://guardian.ng/business-services/sustainable-psc-terms-will-drive-nigerias-deep-offshore-investment-says-total/

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17th Nigeria Oil & Gas Conference & Exhibition is set to open on 2 July

The 17th Nigeria Oil & Gas Conference & Exhibition (NOG) will be held in Abuja from 2-5 July 2018, focusing on the growth and development of Nigeria’s hydrocarbon industry

The annual meeting of industry stakeholders will attract more than 700 industry professionals to network and explore new business opportunities within Africa’s oil and gas sector.

Dr Emmanuel Kachikwu, minister of state for petroleum resources at NOG 2017, commented, “The Nigerian Oil and Gas Conference & Exhibition is an important event in the Nigeria oil and gas industry calendar. As such, I am delighted to participate with you today in discussing the current state of our industry and discuss the roadmap for moving the industry forward.”

Dr Maikanti Baru, group managing director at NNPC, will outline NNPC’s future plans and priorities to drive the country’s oil and gas sector.

The topics for the panel discussion will include:

· Investing in the future of Nigeria for sustained economic development and growth

· Positioning Nigeria as the preferred destination in Africa for investment through legislation and policy

· Maximising Nigeria’s gas potential

· Harnessing the opportunities in Nigeria’s downstream sector

· Unlocking Nigeria’s investment potential

· The independent producers’ role in the future of upstream production

· Innovative strategies – combating crude oil theft and pipeline vandalism

The event will provide opportunities for Africa’s oil and gas players to network with international companies to explore possible business scopes. The international oil majors can generate valuable new sale leads and stay ahead of the competitors by featuring in the largest gathering of national and international industry players in Nigeria.

Via http://www.oilreviewafrica.com/event-news/17th-nigeria-oil-gas-conference-exhibition-is-set-to-open-on-2-july

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Oando, Total, others for Nigeria Oil & Gas confab

Following a  successful outing at the recently concluded OPEC Seminar, Oando is set to lead conversations at West Africa’s largest oil and gas gathering, the Nigeria Oil and Gas Conference, NOG, which started in Abuja, yesterday. The theme of the conference is ‘Driving the Nigeria Oil & Gas Industry Toward Sustainable Development & Growth’.

Group Chief Executive  of the company, Adewale Tinubu, will be speaking on the topic Investing in the Future of Nigeria for Sustained Economic Development and Growth. He will, alongside industry colleagues, Bello Rabiu of NNPC; Chike Onyejekwe, GMD, Aiteo and Tony Attah, MD/CEO, Nigeria LNG, deliberate on the topic and proffer solutions to ensure oil and gas continues to be a relevant and viable resource for moving the nation forward.

Specifically, they will look at sectors such as gas which is still not being fully exploited; Nigeria has significant gas reserves, estimated at 192 trillion cubic feet, the largest gas reserves in the continent and ninth in the world. Despite this abundant reserve base, its utilization in the domestic sector is grossly inadequate and the country is yet to fully benefit from her natural gas endowment. Also in discussion on the panel will be how upstream activities can be increased and the role indigenous players will have to play in collaboration with the Government in realising this.

The event is set to host dignitaries including the Vice President, His Excellency (H.E), Yemi Osibanjo who will officially open the conference   and the Secretary General, OPEC, H.E. Mohammad Sanusi Barkindo who will give a keynote address at the event. Also in attendance will be Dr. Emmanuel Kachikwu, Minister of State for Petroleum Resources. According to Kachikwu, “the Nigerian Oil and Gas Conference & Exhibition is an important event in the Nigeria oil and gas industry calendar.

Read more at:  https://www.vanguardngr.com/2018/07/oando-total-others-nigeria-oil-gas-confab/

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Barkindo, Kachikwu, Adebutu, others for Oil & Gas Summit

How can Nigeria Oil and Gas industry be effectively harnessed towards national economic development and individual prosperity?

This has however informed a four-day

Nigerian Oil and Gas Conference and Exhibition starting on Monday, 2nd to Thursday 5th of July in Abuja with the theme; Driving Nigeria’s Oil & Gas Industry Towards Sustained Economic Development and Growth.

The Chairman and Chief Executive Officer of the Petrolex group, Segun Adebutu will speak on the sub-theme; Harnessing the Opportunities in Nigeria’s Downstream Sector at the forum which will have over 700 industry professionals, including key stakeholders from both the public and private sectors in attendance.

Expected dignitaries include the Secretary-General of OPEC; Dr. Sanusi Barkindo, honourable Minister of Petroleum Resources; Dr. Ibe Kachikwu, and the Group Managing Director of the NNPC, Dr. Maikantu Baru.

The forum for International Conference Centre (ICC), Abuja, has been described as a viable avenue for networking, sharing ideas, and exploring new opportunities and innovations in the industry.

According to the CEO of Petrolex, Segun Adebutu, the company is a Gold sponsor featuring the annual NOG Awards Ceremony on July 25 will be co-hosted.

“As an integrated energy company, Petrolex remains committed to redefining Africa’s energy landscape and providing innovative energy solutions. We are glad to showcase this at the 17th Nigerian Oil and Gas Conference and Exhibition. We also look forward to interacting with other critical stakeholders and having a robust discourse at the conference.  As an emerging leader in the oil and gas sector, the NOG presents the appropriate platform for us to exchange ideas and synthesize new innovations,” Adebutu said.

Petrolex has emerged to be one of the leading players in the Oil and Gas industry, especially the downstream sector. CEO, Segun Adebutu was listed among Businessday’s 50 most influential Nigerians for the year 2017.

Petrolex’s legacy investment is the mega oil city, which contains the largest tank farm in Sub-Saharan Africa. The first phase of the project has been completed and commissioned. It is the 300 million litres mega tank farm, consisting of twenty 15 million litre storage tanks. The tank farm has 30 loading gantries with a scheduled truck loading and fuel management system, and a 4000-truck capacity trailer park for efficient loading. To supply the facility and ensure ease of distribution, a jetty has been constructed and vessels moored. Petrolex is also set to build a 250,000-bpd capacity refinery, which will be the second private refinery in Nigeria.

Via The Nation – http://thenationonlineng.net/nigeria-barkindo-kachikwu-adebutu-others-for-oil-gas-summit/

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