Italian Oil Major Makes Huge Gas Discovery In Nigeria

Italian oil major, Eni, said on Wednesday that its Nigerian subsidiary Agip has found lots of gas and oil in an onshore facility in the Niger Delta.

Eni operated Nigerian Agip Oil Company (NAOC) made the discovery in the Obiafu-Obrikom fields.

It said the Obiafu-41 deep well had reached a total depth of 4.374 m, encountering an important gas and condensate accumulation within the deltaic sequence of Oligocene age comprising more than 130m of high-quality hydrocarbon-bearing sands.

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“The find amounts to about 1 trillion cubic feet of gas and 60 million barrels of associated condensate in the deep drilled sequences,” the statement by the oil major added.

“The well can deliver in excess of 100 million standard cubic feet/day of gas and 3,000 barrels/day of associated condensates, and will be immediately put on-stream to increase NAOC’s gas production.”

The statement added that Eni has been operating in Nigeria since 1962 and produces 100,000 barrels of crude oil per day.

Ignore Saraki’s “Fairy Tales” Regarding Oil And Gas Sector – Keyamo Tells Nigerians

Zakari: PDP Cannot Impose ‘Its Own Interpretation Of Fair Play’ On Nigerians – Keyamo
Festus Keyamo speaks during his appearance on Sunday Politics on December 9, 2018.

 

The official spokesperson of the APC Presidential Campaign, Festus Keyamo, SAN, has urged Nigerians to ignore claims by Senate President Bukola Saraki regarding an alleged fraud within the Oil and Gas sector. 

 

Keyamo in a statement on Friday said the Director General (DG) of the PDP Presidential Campaign has resorted to a baseless campaign of calumny directed at the person of Mr. President, “Ahead of the looming defeat of the PDP at the Presidential polls next month”.

He said, “Dr. Bukola Saraki’s resort to poorly choreographed and worn-out political brinksmanship is fueled by the obvious absence of any credible agenda or bearing to present to Nigerians in their campaigns.

“In clear demonstration of hallucination with figures, Dr. Bukola Saraki claimed, in an interview with Channels Television a few days ago, that Nigeria’s petrol consumption is about 20-22 million Iitres per day and that the current import level of about 50million litres is a scam and fraudulent.

“However, the same Dr. Bukola Saraki was in the 7th Senate and knows very well that in 2014 and part of 2015, the PDP Government that was in power was reporting to Nigerians daily PMS consumption of 35-40 million litres per day. (In January, 2014 for example, the average monthly consumption was 38 million Iitres per day. By January, 2015 under the same government of PDP, they reported 36 milIion Iitres per day and March 2015, the daily consumption reported by PDP government was 45 million Iitres per day, whilst importing at levels above 80million litres per day).

“Strangely, years later, the PDP Campaign DG is peddling a phantom fuel consumption figure of 20-22 million litres per day.

“The PDP Chief Campaigner discountenanced the obvious fact that within the last three years of the current administration, the Nigerian economy that PDP left in comatose has been jump-started to vibrancy leading to remarkable changes in energy consumption needs and patterns.

“The allegation that the national oil company prevailed on Mr. President not to seek appropriation for subsidy and to rather treat it as cost under-recovery is not only laughable and mischievous, but it is a blatant lie.

“Verifiable records indicate that NNPC has never claimed subsidy payment from any government in its history of operation. All NNPC’s transactions in this regard have been treated as product costs under-recovery.

“The Corporation, like any other business entity, does its business and recovers its cost from its revenues.

 

 

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“It is instructive to note that in his rush to indict the NNPC and the President, willy-nilly, Dr. Bukola Saraki forgot that a Senate Committee was set up by him to investigate the intervention of NNPC in PMS imports.

“The mandate of the Committee includes volumes, costs, and any associated under-recoveries. The big question remains; why would he not wait for the outcome of the Committee he set up to investigate the matter? Is it because he believes the outcome of his Committee will not satisfy his predetermined mindset?

Keyamo there urged Nigerians to ignore the tantrums of Dr. Bukola Saraki as it concerns the oil and gas sector.

“Massive Fraud In The Oil Sector”

Senate President Bukola Saraki in an earlier interview with Channels Television alleged that there is massive fraud within the oil sector.

The lawmaker said applying subsidy on assumption that Nigeria consumes fifty million litres (50million litres) of fuel a day, is fraudulent.

Saraki said in the Jonathan administration subsidy was based on an assumption that the nation consumes 30million litres of fuel daily.

He added that he and some other lawmakers warned that the Jonathan government was condoning corruption “by over importing fuel and because of that we were losing a lot of money”.

The Senate President said the present government instead of changing the process, jerked up the importation by 20 million litres extra.

He said, “you would have thought that a government that was to fight corruption and prevent leakages would even if you are going to continue subsidy, ensure that it is better managed.”

Saraki said there is no way Nigerians can consume 50million litres a day, “it is just money being stolen,” he alleged.

Buhari’s Government Is Corrupt

Saraki says President Muhammadu Buhari’s government has lost its moral ground in the fight against corruption because of corrupt practices within the administration.

The Senate President in an exclusive interview with Channels Television’s Seun Okinbaloye said the Buhari-led government came in on a promise to oust corruption but have rather allowed a new set of corrupt officials to thrive.

Saraki said there is no way the present government can be speaking of integrity when it has “a member who has been found wanting, left without charge or prosecution”.

He said, in 2015 the Jonathan administration was ousted on three major promises which are: security, economic growth and the fight against corruption.

The lawmaker, however, opined that “Nigerians are not better off today than they were in 2015”.

 

Senate Seeks Enforcement Of Local Content Law In Oil And Gas Sector

 

The Senate Committee on Local Content says it is determined to clamp down on oil and gas companies who refuse to remit funds to the Nigerian Content Development and Monitoring Board.

The Senate Committee Chairman, Solomon Adeola, gave the warning on Saturday after a visit to three oil companies in Rivers State.

The committee members expressed satisfaction that majority of the staff in the companies are Nigerians, in fulfilment of the local content law.

They were, however, disappointed that the companies which have been operating in Nigeria for years are still almost totally foreign owned.

The lawmakers also expressed displeasure that none of the companies was listed on the Nigerian Stock Exchange.

Going forward, the committee said the National Assembly will review the Local Content Law, expanding its scope to cover other industries such as telecomms, ICT, manufacturing and the extractive industries.

It also stated that the board has commissioned auditors to look into the accounts of oil and gas companies and fish out those defaulting in their payments.

Senate To Probe Oil And Gas Lease Renewal

Senate To Probe Oil And Gas Lease Renewal By Kachikwu, DPR
Senate Chamber (file)

 

The Senate has resolved to investigate the ongoing oil and gas lease renewal being undertaken by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and the Department of Petroleum Resources (DPR).

The lawmakers took the decision on Wednesday following a motion sponsored by Senator Omotayo Alasoadura at plenary in the Red Chamber of the National Assembly in Abuja.

Senator Alasoadura accused the minister and the DPR of perpetuating irregularities capable of denying the government revenue in excess of $10billion, as a result of alleged illegal discounts and rebates in the process of lease renewal.

FG Not Increasing Fuel Price From N145 – Kachikwu
(File) Minister of State for Petroleum Resources, Dr Ibe Kachikwu, addressing a press conference in Abuja.

 

Senator Shehu Sani, on his part, said the issue of lease renewal had been a major discourse in the last one week.

He was hopeful that a thorough investigation into the issue would open “a whole can of worms” on the matter.

“There have been series of motions related to this issue and I think further investigation is required,” Senator Sani said.

On his part, Senator Umaru Kurfi said, “We cannot be seen folding our arms on this issue. We have to take deliberate steps to end these discrepancies and call in the Minister of State for Petroleum for further investigation.”

Senator Gbolahan Dada also suggested that the Senate invites Dr Kachikwu, as the matter that needed to be addressed was “lack of enforcement”.

But Senator Rafiu Ibrahim believes the minister cannot approve issues such as this and asked the lawmakers to expand the list of those to be called in for investigation.

The Senate consequently resolved to mandate the Committee on Petroleum Resources (Upstream) to investigate the issue and report back to the chamber.

The committee was also directed to identify measures to correct the purported anomalies in the lease renewal.

Nigeria Looks To Local Skills To Develop Oil And Gas

A photo taken on February 23, 2018 shows the Egina FPSO berthed in Lagos harbour, Nigeria. The Egina FPSO (Floating Production Storage and Offloading) unit is the largest FPSO ever installed in Nigeria and has the capacity to produce up to 200 000 barrels of oil per day.
Stefan HEUNIS / AFP

 

 

Fishing boats look like specks alongside Egina, which has been moored for the last month in Lagos. Even the container ships that normally dominate the port look like small boats.

The floating production storage and offloading facility (FPSO), developed by the French group Total, looks a lot like a giant Lego set.

Everything about it is huge: its weight (220,000 tonnes), length (330 metres/1,083 feet) and width (60 metres). At 33 metres, it’s as high as a 10-storey building.

The vessel is in its final stage of construction and will soon produce some 200,000 barrels of oil a day or about 10 percent of national production.

In the next few months, Egina will head to the Niger Delta and link up to 44 subsea wells some 1,600 metres under the Gulf of Guinea.

The Egina FPSO berthed in Lagos harbour, Nigeria.

 

Up to 2.3 million barrels of crude can be stored in its hull, before being taken abroad to be refined.

The cost of the project is up to $16 billion (12.8 billion euros) but according to the head of Total in Nigeria, Nicolas Terraz, the investment is justified.

“Nigeria is a very important country for Total. We’ve been here for the last 60 years,” he told AFP, looking up at the huge ship.

“It’s the biggest FPSO ever constructed by the group.”

‘Local Content’

The construction of Egina in Africa for Africa may be a first but it’s not been welcomed by everyone in Nigeria’s commercial capital.

Local residents say it’s disturbed their sleep while the Egina’s sheer size has made it difficult for the yachts of amateur sailors to catch the wind in their sails.

It’s not just Egina’s size and cost that are unique: it’s the first major project to have been undertaken since a 2010 Nigerian law that made “local content” compulsory.

More than half of those involved in its construction were Nigerian and more than 75 percent of the work was done in Port Harcourt or Lagos.

The remainder was done at the Samsung shipyard in South Korea.

 

“We would have never thought that these things could be done locally,” said Dolapo Oni, an oil analyst with Ecobank. “It was a big gamble for Total.”

“Local companies have no access to local banks or even international funding.

“But Egina shows that there is still foreign confidence at a time when Shell or Exxon don’t invest anymore in Nigeria.”
Nigeria has suffered years of mismanagement of its resources.

In January, parliament voted for a bill to reform the oil sector and make it more transparent, nearly two decades after it was first proposed.

The bill still needs the approval of President Muhammadu Buhari to become law.

Buhari, who also doubles up as oil minister, has vowed to overhaul the sector as part of his drive to clean up politics and claw back billions of dollars in looted public money.

Vast Inequality

In Lagos, the fishermen who pass by the Egina every day in their grimy boats can make as little as two dollars a day. It’s a sign of the vast inequality in Lagos.

But private local partners see a chance for change: 3,000 people have already been involved in the Lagos construction phase of Egina.

Ladol, which provides support services to the oil and gas sector and where Egina has been moored, is 100 percent Nigerian.

Its chief executive, Amy Jadesimi, said the vessel’s arrival radically changed the landscape of the industry.

“We now have the biggest crane capacity in the whole of Africa, we have a qualified labour force,” said the 42-year-old former investment banker in London.

“The idea is to host more projects like this one and not only in oil and gas.

“We can fabricate very large silos for agricultural products and now that we can host the largest vessels in the world, they can come and collect the largest amount of domestic products.”

Jadesimi estimated that could generate up to 50,000 jobs.

But the Nigerian government, which gets $1.6 billion a month or 70 percent of its revenue from oil, needs to invest in energy and infrastructure for that to happen.

On the roads leading to the port lorry drivers wait for weeks on end in searing heat just to be able to unload or take delivery of their cargo.

U.S. Pledges Support For Nigeria’s Oil And Gas Industry

The Foreign Commercial Service of the United States Diplomatic Mission to Nigeria, in collaboration with Hewlett Packard Enterprise (HPE) Nigeria and its leading local partner, Manifold Computers, have introduced an innovative technology Synergy and Aruba for use in the Nigerian oil and gas industry.

Synergy and Aruba according to the U.S. helps companies operating in the Nigerian oil and gas industry to increase efficiency of operations, monitor people, manage resources, make real-time decisions, reduce risks, save costs, and increase flexibility, productivity and company bottom line.

Speaking during a public presentation of the technology product at an event in Lagos last week, United States Consul General F. John Bray renewed the U.S. government’s commitment to supporting trade and investment in Nigeria. He encouraged Nigerian oil and gas industry players to avail themselves of the innovative technology with a view to harnessing Nigeria’s abundant resources, improving their bottom-line and ultimately growing the economy.

“Nigeria presents tremendous long-term growth opportunities and the United States government remains committed to supporting American companies and local partners in deploying U.S. technology to help tackle some of the challenges the country is facing,” Consul General F. John Bray said at the event attended by leading oil and gas industry players, technology service providers, and senior government officials.

Acting Commercial Counselor of the U.S. Mission, Mr Paul Bergman, highlighted Hewlett Packard Enterprise’s long term partnership with the American Commercial Service.

According to him, the U.S. Commercial Service will continue to be at the fore-front of promoting trade and investment between America and Nigeria through the development and execution of mutually beneficial international trade policies and promotion strategies.

Managing Director, HPE Nigeria, Mr Chukwuma Okpaka, noted that the high performance computing technology solution meets the modern exigencies of the oil and gas industry in Nigeria. Modeling and simulation applications, he added, will accelerate breakthroughs in oil and gas, science, medicine, technology, and energy sectors.

Julius Berger To Diversify Into Oil, Power Sector

Nigeria’s largest construction company by market value, Julius Berger, says it plans to acquire oil assets and expand into the country’s power sector.

This comes as the construction giant seeks to diversify its business and stay competitive.

The company is also considering bidding for business in other countries in West Africa including Ghana, Benin and Cote D’ Ívoire

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Julius Berger has formed a partnership with Petralon Energy to work on oil fields in the Niger Delta region and is currently in talks with about eight power-industry investors to build generating plants in the country.

Meanwhile, the Federal Government may soon achieve its objective of boosting Nigeria’s local refining capacity as an Indonesian firm has revealed plans to construct a modular refinery in the country.

The refinery will be located in Akwa Ibom State and on completion is expected to churn out 10,000 barrels of oil per day.

Oil And Gas Index Falls By 1.21%

Nigeria To Exit Joint Venture Cash Calls With Oil CompaniesThe oil and gas index on the Nigerian Stock Exchange on Thursday fell by 1.21 per cent; the day the National Assembly passed the first phase of the long-awaited Petroleum Industry Bill.

Despite this, sectoral decline winning streak continues, with the all share index adding 0.64 per cent to close at 28,467.61 and total market value surged to 9.841 trillion Naira.

Financial Services Stocks maintained their lead in top trades as Access Bank polled over 106 million units in transactions followed by GT Bank and Diamond.

Thirty companies appreciated in price against 14 others as the market breadth closed positive.

UAC properties settled at two Naira 14 kobo, having jumped the most by 9.7 per cent. Livestock ticked 8.5 per cent while GlaxoSmithKline appreciated by five per cent.

PZ on the other hand, declined by 6.1 per cent, topping the losers chart, followed by Mobil and Honey Well Flour.

Bayelsa Govt. Admonishes Oil Firms On Flouting Court Orders

Oil, Bayelsa, CourtThe Bayelsa State Government has expressed concern and displeasure with oil firms for flouting court orders on oil spill cases in the state.

The government decried the alleged ‘blatant disregard for court rulings’ and called on oil firms operating in the state to embrace the rule of law.

The appeal was made by the Special Adviser to Governor Seriake Dickson on Oil and Gas, Mr Felix Ayah, in Yenagoa, the Bayelsa State capital.

“Shell Petroleum Development Company (SPDC) has reneged its corporate social responsibilities to maintain peace in its operations, negating the state government’s effort to strengthen the existing peace for smooth operations by (the) oil firms.

“After going through the outcome of the court’s verdict at my disposal authenticating Anyamawari family as certified owners of the land, it is incumbent on SPDC to recognise and treat them as such,” said Mr Ayah who mediated in a peace meeting between Onyoma community in Southern Ijaw and the SPDC.

He advised the Anyamawari family to channel all relevant documents to appropriate quarters of the company for prompt action and payments of all outstanding obligations without further delay.

An official of the SPDC, who said that the oil firm had laid down procedures in resolving issues with communities where it operates, urged the community to follow the same process.

The Bayelsa Government had in January 2016 sued the Nigerian Agip Oil Company, seeking 1.6 trillion naira damages for pollution caused by an oil spill in Brass area of the state in November 2013.

Niger Delta Should Have Special Development Status – VP Osinbajo

VP Osinbajo Visits Gbaramatu Kingdom in Niger DeltaNigeria’s Vice President, Professor Yemi Osinbajo, on Monday paid a visit to the Gbaramatu Kingdom in Delta State, recommending that the region should have a special development zone status.

Osinbajo was accompanied by the Minister of State for Petroleum, Ibe Kachikwu and was received in Delta State by Governor Ifeanyi Okowa.

In his address of welcome, entitled: ‘We must prepare for the future’, he advocated sustainable development for the Niger Delta region.

“An Area Of Poor Infrastructure”

“The Niger Delta that we see today, including this great kingdom, is an area of poor infrastructure – few schools, few hospitals, and severe pollution.

“The Niger Delta of today, is one of daily pipeline vandalism. In 2014 alone, there were over 3,700 incidents of pipeline vandalism.

“The Niger Delta of today is one where, aside from environmental degradation, between 1998 and 2015, over 20,000 persons have died from fire incidents, arising from breach of the pipeline.

“Everywhere you go, there are signboards of proposed projects, mostly uncompleted or abandoned altogether.

“Many of the initiatives to change the story, have not been able to make the big changes required,” the Vice President stated.

Citing several examples, dating back to the 60’s, down to the present day amnesty programmes, the Professor Osinbajo said many of such programmes have not been able to meet up with their objectives.

However, he charged the people, stressing that “the future, is not a future of environmental degradation, poor infrastructure, poor roads”and the likes.

Rather, it is a future of “progress and development” but according to him, “there is no time, as the future is already here”.

He then stated that in order to ensure that the future is not worse than today, three things must happen.

Also he believes that while the government plays its own part, the people have to combine efforts with it, in order to realise the desired development.

One of such things, he stressed, was that the people “must recognise the unique environmental and terrain challenges of the Niger Delta.

“We must recognise that the Niger Delta is a special development zone for this nation.

“It means that the Federal and State governments, the National Assembly representatives, along-side the NDDC and the civil society representatives, of the Niger Delta people must sit together, develop, plan and fund an arrangement for rapid development,” he stressed.

Also, in furtherance of development in the region, Professor Osinbajo revealed that the Pan Niger Delta Forum had come up with 16 dialogue issues that would be extremely helpful in ascertaining its key development priorities.

He stated that the region must also hold some of the international oil companies, to their agreement with host communities.

“We must promote indigenous participation in oil companies,” he added.

He also hinted that in the 2017 budget, provision had been made for the commencement of the Lagos-Calabar railway. (the coastal railway).

Mr Osinbajo is expected to also visit a number of oil communities across some Niger Delta states, where he is expected to address issues affecting the region and bring an end to militant attacks on Nigeria’s oil and gas facilities.

According to a statement from the Office of the Vice President, Professor Osinbajo would also be visiting Bayelsa and Rivers States at a later date to be announced.

Spokesperson for the Office of the Vice President, Laolu Akande, described the move as further demonstration of President Muhammadu Buhari’s readiness and determination to comprehensively address the Niger Delta situation.

Osinbajo Commences Interactions With Oil-Producing Communities

Osinbajo Commences Interactions With Oil-Producing CommunitiesVice President Yemi Osinbajo will be visiting a number of oil communities across some Niger Delta states starting on Monday, January 16, 2017, when he travels to Delta State.

According to a statement from the Office of the Vice President, Prof. Osinbajo would also be visiting Bayelsa and Rivers States at a later date to be announced soon.

Spokesperson for the Office of the Vice President, Laolu Akande, described the move as further demonstration of President Muhammadu Buhari’s readiness and determination to comprehensively address the Niger Delta situation.

He stated: “At these visits, the Vice President will lead high-level delegations of the Federal Government that will interact with leaders and representatives of the oil-producing communities in continuation of ongoing outreach efforts of the Buhari administration towards a long lasting and permanent resolution of the Niger Delta crisis.

“The Buhari presidency is fully committed to having an effective dialogue and positive engagement that will end the crisis in the oil-producing areas, and believes that these visits would further boost the confidence necessary for the attainment of peace and prosperity in the areas and the Nigerian nation in general.”

NUPENG Declares 3-Day Warning Strike

 NUPENG Declares 3-Day Warning StrikeThe Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), has declared a three-day warning strike beginning 12 midnight, ahead of their meeting with the federal government on Wednesday.

The President of the union, Mr Igwe Achese, told journalists in Abuja after an emergency meeting of the union, that the strike is to press for the implementation of the agreement reached with the oil companies on staff welfare, mediated by the federal government in 2016.

He however explained that the continuation or otherwise of the strike beyond Wednesday, January 11, would be determined by the outcome of a joint meeting between the union and the federal government on Wednesday.