Industry
January 29, 2021 No Comments

SEPLAT appoints Okechukwu Mba as Managing Director for ANOH

Seplat Petroleum Development Company Plc has appointed Mr Okechukwu Mba as the new Managing Director of ANOH Gas Processing Company (AGPC) Limited, the Incorporated Joint Venture (“IJV”) between Seplat and the Nigerian Gas Company (“NGC”), a wholly-owned subsidiary of Nigerian National Petroleum Corporation (“NNPC”). ANOH Gas Processing Company (AGPC) Limited is a midstream gas company committed to processing Gas from OML 53 for distribution to the local market.

His appointment takes effect from January 1, 2021.

Okechukwu has over 20 years of experience with a diversified background covering Commercial, Planning, Finance and Operations. Before his appointment, he held the position of General Manager Gas business. In that capacity, Okechukwu transformed SEPLAT’s Gas business into an Industry-recognized leading supplier of gas into the domestic market up to 400MMscfd of gas to a diversified portfolio of customers.

He was responsible for delivering new Gas projects, domestic and regional Gas Sale Agreements (GSA), new Gas business development, GSA operations, revenue collection, customer relations and overall implementation of Board-approved Gas strategy. Before that role, Okechukwu served as SEPLAT’s General Manager, Commercial. In that capacity, he led the successful delivery of several commercial agreements and managed Treasury, Tax, and Insurance functions.

Before SEPLAT, Okechukwu worked with Mobil Producing Nigeria and BG (British Gas) Nigeria, managing the Planning and Budget function. He started his career with Arthur Andersen as a Tax Consultant.

Okechukwu plays an active role in the Oil and Gas industry and recently served as the OPTS Gas Subcommittee’s elected Chairman. He has a keen interest in the gas to Power value chain. As a trusted advisor to key industry stakeholders, Okechukwu is regularly invited to domestic and international conferences to share his unique perspectives on the gas to Power value chain. He has a strong passion for developing people and spends time coaching and mentoring young professionals.

Okechukwu has a first-class degree in Accounting and is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). He has taken a post-graduate course in Finance from Manchester Business School and an executive study from Harvard Business School on a continuous quest for development.

By this appointment, Okechukwu joins the Board of AGPC.

Seplat also appointed to the AGPC Board Dr. Chioma Nwachuku, the General Manager, External Affairs and Communications at SEPLAT; and the Nigerian National Petroleum Corporation (NNPC) likewise recently appointed Mrs Rose N. Eshiett, Group General Manager Finance at the NNPC. The new directors join the other Board members comprising Yusuf Usman (Chairman); Roger Brown; Oluwaseyi O. Omotowa; Oritsemeyiwa A. Eyesan; Effiong Okon and Okechukwu Mba.

The strong board will provide leadership to AGPC to deliver the 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, being built by AGPC. AGPC is the IJV owned equally between Seplat and the Nigerian Gas Company (“NGC”), a wholly-owned subsidiary of Nigerian National Petroleum Corporation (“NNPC”).

ANOH is one of Nigeria’s most strategic gas projects. It will help Nigeria accelerate its transition from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation. Once ANOH gas plant is completed, AGPC will be a significant gas supplier to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses.

Production
January 29, 2021 No Comments

NNPC records 92% increase in sales of petroleum products in October

The Nigerian National Petroleum Corporation (NNPC) has announced that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), recorded a total of ₦158.04 billion from the sales of white products in the month of October 2020.

The Corporation disclosed this on its October Monthly and Financial Operation Report (MFOR) in Abuja, on Thursday.

It said the amount represented 92 per cent increase over the ₦80.15 billion sales in September 2020.

The report indicated that total revenues generated from the sales of white products for the period October 2019 to October 2020 stood at ₦1.95 trillion, with Premium Motor Spirit (PMS) accounting for about 99.07 per cent of the total sales with a value of over ₦1. 9trillion.

In terms of volume, the October 2020 sales figure translates to a total of 1.224.54 billion litres of white products sold and distributed by PPMC within the period compared with 603.39 million litres in the month of September 2020.

This, it said, comprised 1.224.20 billion litres of PMS, 0.31 million litres of Automotive Gas Oil (AGO) also known as diesel and 0.033 million litres of Dual Purpose Kerosene (DPK).

“Total sales of white products for the period October 2019 to October 2020 stood at 16.462.50 billion litres and PMS accounted for 16.344.36 billion litres or 99.28 per cent,’’ it said.

On pipeline vandalism, it noted that 23 pipeline points were vandalised in the month under review, representing about 10 per cent increase from the 21 points recorded in September 2020.

“ Of this figure, Mosimi area accounted for 83% of the vandalised points, while Port Harcourt Area accounted for the remaining 17 per cent,’’ it said.

In the Gas Sector, the report revealed that a total of 214.07 billion Cubic Feet (bcf) of natural gas was produced in the month October 2020, translating to an average daily production of 6,908.34 Million Standard Cubic Feet per Day (mmscfd).

It noted that the daily average natural gas supply to power plants increased by 8.60 per cent  to 745mmscfd, equivalent to power generation of 2,801 Megawatts.

“For the period of October 2019 to October 2020, a total of 3,018 BCF of gas was produced, representing an average daily production of 7,658.88 mmscfd during the period,’’ it said .

The MFOR also indicates that period-to-date gas production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 68.18 per cent , 20.12 per cent  and 11.70 per cent respectively to the total national gas production.

It adds that in terms of natural gas off take, commercialisation and utilisation, out of the 208.96 BCF of gas supplied in October 2020, a total of 118.40 BCF of gas was commercialised, consisting of 38.07 BCF and 88.90 BCF for the domestic and export market respectively.

This, it said, translated to a total supply of 1,269.03mmscfd of gas to the domestic market and 2,870.57mmscfd of gas supplied to the export market for the month.

Source: Business Insight News

Industry Manufacturing
December 17, 2020 No Comments

COVID-19: Local content sustained oil industry, says NCDMB

The Nigerian Content Development and Monitoring Board has said the local capacities developed through the implementation of the Nigerian Content Act sustained oil and gas operations in Nigeria during the height of the COVID-19 pandemic.

The Executive Secretary, NCDMB, Mr Simbi Wabote, said this on Monday at the Nigerian Content Capacity Building Workshop organised for media stakeholders in the South-South region, held in Port Harcourt, Rivers State, according to a statement on Wednesday.

He explained that operations of the sector continued without disruptions, even after many expatriates had returned to their countries, because Nigerians had developed robust human and infrastructural capacities to operate the highly technical sector.

He said some of the achievements recorded by the board during the COVID-19 pandemic included the inauguration of the NCDMB new head office, the increase of the size of the Nigerian Content Intervention Fund from $200m to $350m and addition of new products to the NCI Fund.

According to him, other achievements included the approval of the $50m Nigerian Content Research and Development Fund by the NCDMB Governing Council; inauguration of the 5,000 barrels-per-day Waltersmith Modular Refinery at Ibigwe, Imo State; and approval of additional partnerships in the Nigerian Content commercial ventures programme.

He said the board also made progress with the implementation of the 10-year strategic roadmap, held the checkpoint review session for the roadmap, continued the construction of oil and gas industrial parks and secured the final investment decision and award of contracts for the NLNG Train 7.

Wabote said the NCDMB had achieved 32 per cent value retention from the annual spend in the oil and gas industry, compared to only five per cent in 2010 when the Nigerian Content Act was enacted.

He noted that value retention grew to 26 per cent in 2017, after seven years of focused implementation.

According to him, the vision of the Nigerian Content 10-Year Strategic Roadmap is to achieve 70 per cent value retention by 2020.

Other targets of the roadmap are to create 300,000 jobs, retain $14bn out of $20bn annual industry spend as well as build shipyards and manufacturing facilities.

In his presentation, the General Manager, Corporate Communications and Zonal Coordination Division, NCDMB, Dr Ginah Ginah, said the board and operating oil companies had jointly deployed the community content guideline, which provides a framework for engaging youths of the host communities in employment, training and contracts in projects.

According to him, the CCG also provides for the establishment of critical infrastructure to stimulate development, attract new businesses to host communities and sustain the growth of host community entrepreneurs through funding and policy support.

Power Production
December 17, 2020 No Comments

Nigeria resumes petrol import from China

Nigeria, Africa’s biggest oil producer and exporter, has resumed the importation of petrol from China, the world’s top crude oil importer.

The Asian country shipped 37,000 metric tonnes of petrol to Nigeria in September for the first time since July 2019, data from the General Administration of Customs showed, according to S&P Global Platts.

China, a major exporter of transportation fuels, has extended exports to Africa in recent years.

The first African country to receive Chinese petrol was Togo in April 2018 at 50,000 mt, followed by Nigeria in January 2019 at 51,000 mt, historical GAC data showed.

The most recent diesel exports from China to Africa were in June, with Kenya and South Africa receiving 40,000 mt and 35,000 mt, respectively, according to the data.

China’s annual crude oil imports increased by 0.9 million barrels per day in 2019 to an average of 10.1 million bpd, according to the United States Energy Information Administration.

The EIA said China’s new refinery capacity and strategic inventory stockpiling, combined with flat domestic oil production, were the major factors contributing to the increase in its crude oil imports in 2019.

Last year, China’s refinery capacity increased by 1.0 million bpd, primarily because two new refining and petrochemical complexes came online with capacities of 0.4 million bpd each.

As a result, the country’s refinery processing also increased to an all-time high in 2019, averaging 13.0 million bpd for the year, according to the EIA.

Nigeria has continued to rely heavily on importation for many years to meet its fuel needs as the nation’s refineries remain in a state of disrepair.

Uneven demand recovery in Africa has led to a divergence in support for Asian transportation fuel markets as diesel and jet fuel requirements weaken while demand for petrol remains robust, industry sources said.

The slowdown in Africa’s diesel and jet fuel demand, in particular, has removed a significant pillar of support from Asian middle distillate markets after buoying them for most of the third quarter, the sources said.

The African continent draws most of its petrol and middle distillate imports from the Persian Gulf and the Mediterranean, and an increase in demand typically lends indirect support to Asia, market sources said.

Source: Punch

Industry Production
December 17, 2020 No Comments

Nigeria’s daily oil production falls to 1.32 million barrels

Crude oil production in Nigeria extended its decline to 1.32 million barrels per day in November on the back of the cut deal by the Organisation of the Petroleum Exporting Countries and its allies.

The latest data obtained from OPEC on Wednesday showed that Nigeria’s oil output dropped from 1.34 million bpd in October, based on direct communication.

According to secondary sources, total OPEC crude oil production averaged 25.11 million bpd in November, up by 0.71 million bpd in October.

“Crude oil output increased mainly in Libya and UAE, while production decreased primarily in Iraq,” the group said in its Monthly Oil Report for November.

OPEC and its allies, known as OPEC+, agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis.

They decided to cut supply by a record 9.7 million bpd for May and June but the deal was extended in July by one month.

Members that did not implement 100 per cent of their production cuts in May and June, including Nigeria, were asked to make extra reductions from July to September to compensate for their failing.

The OPEC+ cuts of 9.7 million bpd were later scaled back to 7.7 million bpd from August through the end of the year.

Earlier this month, OPEC+ agreed to gradually increase their oil production by 500,000 bpd in January. The group also agreed to hold monthly meetings started from January to decide on further production adjustment until the total production increase reaches two million bpd.

They also agreed to extend the compensation period until the end of March 2021 to ensure full compensation of overproduction from all participating countries.

Source: Punch

Industry Manufacturing
November 10, 2020 No Comments

Oil price slump threatens Nigeria’s 2021 budget – FG

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said the resurgence of COVID-19 in Europe, which has caused oil prices to decline in the international market, may affect the 2021 budget estimate.

The 2021 budget is predicated on $40 per barrel but the current price in the market stands at $37.

Ahmed made the statement on Thursday when she appeared before the Senate Committee on Finance to defend her ministry’s budget.

The chairman of the panel, Senator Adeola Olamilekan (APC, Lagos) had asked the minister about the contingency plans the federal government has put in place to insulate the budget from the shocks of falling oil price.

“The actual projection was $40 per barrel and that is the average price that we projected for the year. Some of the institutions that are responsible for tracking the price of crude oil, actually have crude oil prices going as far as $50, $52 per barrel.

“We took the safer path. It seems the second wave of COVID-19 in Europe is affecting us. We are hoping to have clarity as to which direction to take in the next week or two,” she stated.

The minister, however, dismissed insinuations that the federal government may increase Value Added Tax (VAT) again by 2.5% in 2021.

“As for the finance bill, we have the draft. There will be no increase in VAT or any form of taxes because we see 2021 as a year of recovery.”

When they appeared to defend their budgets, almost all the heads of the agencies under the committee’s supervision lamented that their budgetary allocations were too meagre to meet their obligations.

The Accountant General of the Federation, Ahmed Idris, said his agency has 37 offices in dire need of rehabilitation. But the finance minister said the budget office could not go beyond available resources.

“Everybody is claiming scarce resources, but we can’t go beyond what is available,” the minister said.

The Director General, Budget Office, Ben Akabueze, said until the federal government gets more revenue, no agency of government would get enough allocation.

Source: Daily Trust

Industry Production
November 10, 2020 No Comments

NNPC to commence oil explorations in Lake Chad Basin

The Nigerian National Petroleum Corporation (NNPC), is set to commence oil exploration in the Lake Chad Basin of Borno State.

According to NNPC, the commencement was facilitated with the restoration of relative peace in the basin by Nigerian Army.

Minister of State for Petroleum Resources, Timiprye Sylva, disclosed this, after meeting with the Chief of Army Staff, Lt-Gen. Tukur Buratai, and Commander of Multinational Joint Task Force (MNJTF), Major-Gen. Ibrahim Yusuf, at Maimalari Cantonment, Maiduguri.

“The NNPC has seen a lot of prospects in the Chad Basin to commence exploration and drilling activities. That is why the Corporation is collaborating with the Army to resume oil exploration.”

He said the collaboration will ensure that security is being provided for oil exploration and drilling activities to commence very soon in the Basin.

While commending the Army restore peace, Sylva said: “The Army has done a great job. They continue to perform in the Northeast. We wanted to commence exploration and drilling activities there because we believe that the relative peace in this area is enough for us to continue drilling activities in the northeast.

“As you may well know, we have found oil in Gombe State, and we believe that there is a lot of oil to be found in Chad Basin.”

Power Production
November 10, 2020 No Comments

Improved power supply will lift Nigerians out of poverty – Elumelu

The Chairman of Transcorp and Founder of the Tony Elumelu Foundation (TEF), Mr. Tony Elumelu, has stressed that improving access to electricity remains the single most critical factor for lifting a lot of Nigerians out of poverty and job creation for the teeming youth.

He said this during the announcement of Transcorp Consortium’s 100 per cent acquisition of the 966MW installed capacity Afam Power Plc and Afam Three Fast Power Limited, at an acquisition cost of N105.3 billion.
According to Elumelu, who is also the Chairman of the United Bank for Africa Group, bringing affordable, dependable power to the Nigerian people is core to Transcorp’s mission.

“Our significant investments in the power sector are demonstrations of our contribution to the economic transformation that I know Nigeria is capable of. Power remains the single most critical factor for lifting our people out of poverty and job creation for our teaming youth.

“The acquisition marks a significant milestone for Transcorp in the pursuit of its corporate purpose of improving lives and transforming Nigeria. I am honoured to be working with the federal government and urge it to continue its policy of creating an enabling environment, which sustains the confidence of both local and foreign investors – and delivers the opportunities and aspirations that all Nigerians seek.”

Speaking at the event, Vice President, Prof. Yemi Osinbajo, said: “Today marks a milestone for the country with a return to private sector investment in the power sector.

“This investment by Transcorp in acquiring ‘Afam Power Plc’ and ‘Afam Three Fast Power’ is the first of many new investments planned in the sector across the value chain. We expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity.”

Speaking on Transcorp’s track record, the Director-General of the BPE, Mr. Alex Okoh said “Transcorp Consortium is one of the success stories of Nigeria’s Privatisation Programme. Through its investments in Transcorp Hotels Plc and Transcorp Ughelli Power Limited, the consortium has consistently achieved its performance targets as contained in the respective post-acquisition plans.”

Source: This day

Manufacturing Production
October 20, 2020 No Comments

Seplat looking to award key engineering contract for its Sapele field

Nigerian independent Seplat Petroleum has released details of a front-end engineering and design (FEED) contract it plans to award for oil capacity expansion work at its Sapele field according to Upstream.

A  recent tender noted that as part of the Sapele Further Oil Development (FOD) campaign, Seplat on behalf of the joint venture of itself and the Nigerian Petroleum Development Company Limited (NPDC) has deemed it necessary to carry out the FEED of the Integrated Liquid Treatment Facility and Flowstation at its Sapele Field to handle the anticipated increase in production from OML 41.

To execute this FEED scope, it is mandatory that a competent engineering contractor with proven experience in Liquid Treatment Facility (LTF), Produced Water Treatment (PWT), and Sand Management Systems (SMS) Engineering Design in line with SEPLAT’s Produced Water Management strategy is engaged.

The successful contractor shall demonstrate capability in the engineering of PWT and SMS, and by leveraging its experience in conjunction with a reputable Original Equipment Manufacturer (OEM) to provide a detailed technical proposal for PWT and SMS to be deployed as part of the Sapele FOD Liquid Treatment Facility Project. The tendering process shall be run on the Nigerian Petroleum Exchange (NipeX) contracting platform.

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Manufacturing Production
October 20, 2020 No Comments

Nigeria’s natural gas base price inches up in new PIB

The domestic base price, the price at which Nigerian gas producers are to sell to Power Plants, will be $3.2 per Million British Thermal Units (MMBtu), beginning from January 1, 2021, if the Petroleum Industry Bill (PIB) is passed into law in its current form.

But the price at which the gas-based industry, comprising companies which produce methanol, fertilizer (urea, ammonia), polypropylene, etc., will purchase natural gas, can be as low as $1.5 per MMbtu, the incoming law says. That price is special and it is calculated from a formula.

Gas users outside the power sector and the gas-based industry will pay at least $0.5 higher than $3.2 per MMbtu, and their cost of purchase will depend on negotiations with their suppliers.

The domestic base price -$3.2per MMBtu- which is specified in the third schedule of the bill, currently being debated at the Nigerian National Assembly, shall be increased every year by $ 0.05 per MMBtu until 2037, when a price of $ 4.00 per MMBtu will apply for that year and future years.

The Midstream and Downstream Regulatory Authority, “may, by regulations, change the domestic base price and the yearly increase) to reflect changed market conditions and supply frameworks”, says the bill, submitted two weeks ago by President Muhammadu Buhari.

“The objective is to establish a fully functioning free market in natural gas for domestic supplies. This is to be achieved through the voluntary supplies. Where insufficient voluntary supplies are occurring, the Authority may increase the domestic base price and, or the yearly increases. At the same time, the Authority shall monitor the gas prices in other major emerging countries and ensure that Nigeria continuous to have a price level for natural gas that is less than the average of these emerging countries in order to promote the non-oil sectors in the Nigerian economy”.

Timipre Sylva, Minister of State for Petroleum, had given hint of the gas pricing framework last August during a conversation with the Nigeran Association of Petroleum Exlorationists (NAPE). The bill, he explained, “will establish a gas base price that is higher than current levels (The current domestic base price is $2.5 er MMbtu) for producers and this base price will increase over time”.

Sylva said: “This price level should be sufficiently attractive to increase gas production significantly since this gas price will be comparable with gas prices in other emerging economies with considerable gas production.

“The price will be independent of all gas prices for LNG export and is therefore a stable basis for enhanced domestic gas development, regardless of international oil or energy development”.

 

Source: Africa Oil + Gas Report

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