Energy
Executive Secretary NCDMB tasks IOCs on new projects
…Total’s Ikike to hit first oil Q4 2021
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has charged International Operating Oil and Gas Companies to emulate Total Exploration and Production Company (Total E&P) in sponsoring new projects and stop being deterred by the delayed passage of the Petroleum Industry Bill (PIB).
He gave the charge recently when he received the Managing Director of Total E&P, Mr. Mike Sangster at the Nigerian Content Tower, headquarters of the NCDMB in Yenagoa, Bayelsa State.
He commended the MD for his emergence as the chairman of the Oil Producers Trade Section (OPTS)- the umbrella body of major oil producers, adding that his appointment was deserving because Total E&P was the only international operating company that had taken Final Investment Decisions and sanctioned major oil and gas projects in recent times in Nigeria despite the delayed PIB.
While expressing confidence in the determination of the 9th National Assembly to pass the PIB after it had been delayed for over 15 years, Wabote encouraged other IOCs to forge ahead with their new projects. He hinted that new projects were needed to grow Local Content and create work opportunities for local fabrication and manufacturing yards, many of which have been idle since the conclusion of the Total’s Egina deep water project in 2018.
He also charged Total E&P to lend its full support to the ongoing NLNG Train 7 project, adding that the project held great prospects for the local oil and gas industry and host communities.
The Executive Secretary remarked that theEgina Project remains “the benchmark of upstream project delivery considering its record-breaking performance in local content practice in the oil and gas industry.The project served as a veritable tool to raise the bar in the development of our in-country capacities and capabilities.”
He added that “the Board is also happy with Total E&P on the implementation of the ‘Adopt a Faculty and the various actions it had taken on the programme.
Wabote also solicited the support of the chairman of the Oil Producers Trade Section towards the conclusion of the categorization of in-country oil and gas capacities and capabilities, covering engineering, fabrication yards, testing facilities and training facilities.
Another area of collaboration with OPTS is in the study for local gaskets manufacturing: study, to determine what it will take to produce all the gasket requirements in-country.
He also asked OPTS companies to prove feedstock for newly established modular refineries to increase value addition, local refining, demotivate illegal refiners and stealing of crude.
The Executive Secretary also noted that the Board has made significant progress with the development of Nigerian Oil and Gas Parks Scheme in Bayelsa and Cross River states and requested the operating companies to encourage their key suppliers to set up manufacturing shops in the NOGAPS sites as they become operational by end-2022.
The Total MD had remarked earlier that the company had operated in Nigeria for 60 years and is the only IOC that operates in the upstream, midstream and downstream sectors of the Nigerian oil and gas industry.
He indicated that the company developed the last three Floating Production Storage and Offloading (FPSO) platforms in Nigeria and Egina created new records, one of which is recording 40 million manhours in-country.
Sangster also reported that the company had made significant progress with the development of the IkikeOil Field and would record first oil before the end of 2021.He admitted that “it had been difficult developing the project, particularly with the pandemic, but we are making progress and we appreciate the support from the NCDMB.”
Commenting on the PIB, which underwent public hearing in the National Assembly in January, the OPTS lead advised federal legislators and policy makers to ensure that the fiscal provisions in the law are fair to key stakeholders, so as to stimulate new investments in the industry.
Mr Tayo Aduloju, the Chief Executive Officer (CEO), Nigerian Economic Summit Group (NESG), says with targeted approaches, Nigeria can still meet some of the Sustainable Development Goals (SDGs) indicators.
Aduloju said this on Friday in Abuja, at a news conference to announce the Policy Innovation Center’s (PIC) annual Gender and Inclusion Summit.
According to him, though Nigeria is not on course to meet the SDGs target set for 2030, there are few indicators it can reach because as there are 17 SDGs with 169 targets and indicators.
“I would say right now we are not on course to reach anyone, but we can still achieve some milestone going forward.
“For example, we can turn around birth registration in 12 months; there are a few other indicators that I think Nigeria can reach.
“We have recommended a mother and child compact between the Federal Government and the Minister of Health and Social Welfare seems willing to push it.
“This is because we think that if we met those ones, some of the SDGs will be met automatically,” he added.
According to Aduloju, there is a parallel relationship between multi-dimensional poverty and gender inequality, with countries performing poorly on the Global Gender Report also exhibiting high severe multi-dimensional poverty.
He said that multi-dimensional poverty encompasses deprivations in health, education and living standards.
“The World Bank points out significant gender disparities in labour participation in Nigeria, with about 65.5 per cent of men participating compared to around 52.1 per cent of women.
“The National Bureau of Statistics indicates that about two-thirds of Nigerians are multi-dimensionally poor, lacking income and basic amenities like healthcare, education, and clean cooking fuels,” he said.
He added that conflict, climate change, inflation, and increasing food prices were among the pathways contributing to the rise in high food insecurity and malnutrition rates.
He, however, said that the solution remains a collective effort by all stakeholders to tackle the issues as it could no longer be achieved by government alone.
On her part, the Executive Director, PIC, Mrs Osasuyi Dirisu, said that Nigeria was facing unprecedented times owing to a weak and non-inclusive economy, volatile macro-economic environment, security challenges and weak economic competitiveness.
She, however, said that addressing poverty in Nigeria could not be business as usual.
“Ending poverty and reducing inequality are part of the SDGs and a wide range of approaches have been identified to reduce poverty and inequities.
“To design effective poverty reduction programs, it is important to understand pathways to poverty, evidence based approaches that work and linkages to multi-sectorial inequities.
“We need to identify what works for poverty reduction in Nigeria and sustain the commitment to poverty reduction by intentionally designing and implementing contextually relevant solutions driven by a policy enabling environment,” Dirisu said.
Speaking about the summit, she said that it would hold from Sept. 4 to Sept. 5 with “Reimagining Gender-Inclusive Pathways and Partnerships for Poverty Reduction” as theme.
She said that the summit was expected to explore the impacts of multi-dimensional deprivations on health, education, livelihood, and living standards.
Conceptualised in 2022, the summit is an annual event to provide an inclusive platform to explore transformative ways to advance gender equity, inclusion and gender-responsive governance in Africa.
The 2024 summit is expected to leverage the collective power of government, development partners, civil society, academia, and the private sector, highlighting the importance of strategic partnerships for inclusive development.
PIC, an initiative of NESG is an institutionalised behavioural initiative in Africa supporting the delivery of better policies and innovative solutions for social impact.
Chevron Nigeria Ltd. has restated commitment to its partnership with Nigeria in ensuring safe, reliable, and efficient operations in the country.
Chevron’s General Manager, Policy, Government and Public Affairs, Mr Esimaje Brikinn, made this known in a statement on Friday.
Brikinn said also that the company remained committed to delivering affordable, reliable, ever cleaner energy supply that was critical to the development of the Nigerian economy.
“At Chevron, we believe oil and gas will remain a viable component of the energy mix.
“The company believes that the future of energy is lower carbon even as it continues to add incremental volumes to its oil production, and support gas development in a clean manner, “ he said.
The manager said that over the years, Chevron had encouraged the participation of Nigerian companies in the oil and gas industry.
He said that the company, working with the Nigerian Content Development and Monitoring Board, continued to foster competence and competitiveness among Nigerian indigenous contractors and suppliers.
According to him, the company does this by adopting the participatory-partnership model.
“Chevron Nigeria believes that by investing in local communities, we can create a sustainable future for all.
“Our local content strategy is focused on three key pillars: capacity building (training, mentoring among others), local procurement, and social investment (community development projects mainly in health, education and economic development), “ he said.
Recently , the company was awarded the Best Exhibitor award at the 2024 edition of the Nigerian Oil and Gas Energy Week conferences and exhibition held on July 3 in Abuja.
Nigeria’s debt to petrol traders has surpassed $6 billion, doubling since early April, as the state oil firm, Nigerian National Petroleum Corporation (NNPC), struggles to cover the gap between fixed pump prices and international fuel costs, according to six industry sources.
This is according to a report by Reuters on Thursday, which tracks data on international petrol prices.
Sources confirmed to the American media outlet that NNPC has capped the pump prices of petrol shortly after the removal of subsidy in May 29, 2023.
The cap on fuel prices has resulted in stability at the pump despite increases in international crude oil prices and the devaluation of the naira against the dollar.
This situation has led many to speculate that the government might have reinstated some form of petrol subsidy, given the discrepancy between market prices and the steady price of the commodity.
According to data from Reuters, NNPC began facing difficulties early this year when late gasoline payments exceeded $3 billion.
The company has yet to pay for some January imports, with traders stating that the late payments now amount to between $4 billion and $5 billion.
Under the terms of their contracts, NNPC is required to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source said.
At least two suppliers have already stopped participating in recent tenders after reaching their self-imposed debt exposure limits to Nigeria, the sources said.
This means they will not send more gasoline until they receive payments.
The tension to reconcile the international landing cost of petrol and the fixed price of N617 has deepened the debt of NNPC to the traders, the sources confirmed.
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