Category Archives: Oil and Gas

PHOTOS: Ekweremmadu, Ayogu, Utazi, Gil & Cornelius Nnaji, Nnolim, Ujam, others storm Abuja as Prince Lawrence Ezeh, 65 others become Fellows of the Nigerian Society of Engineers

It was a gathering of National Assembly heavyweights Wednesday, 19th May 2021 when Engineer Lawrence Ezeh was inducted as a Fellow of the Nigerian Society of Engineers, FNSE.

The induction, which took place at the national secretariat of the Nigerian Society of Engineers, Sanni Abacha Way, Central Business District, Abuja was well attended by top engineers across the country, their families and friends. Ezeh, who was among 66 inductees, joined other engineers at the podium of the auditorium in receiving the honours.

The event is the 17th edition of the Fellowship Conferment Ceremony. The NSE auditorium also saw a gathering of political heavyweights from Enugu State, who came en masse to rejoice with Engineer Ezeh.

Among the guests include the former Deputy Senate President of Nigeria, Senator Ike Ekweremmadu, as well as a former senator and gubernatorial candidate in the 2019 elections in Enugu State, Senator Ayogu Eze.Others include Senator Chuka Utazi, representing Enugu North Senatorial Zone, immediate past senator to represent Enugu East Senatorial zone, Senator Gilbert Nnaji, and the House Member representing Isi Uzor and Enugu East in the Federal House of Representatives, Honourable Cornelius Nnaji.

Present at the induction include also, the House Member representing Nkanu East and West in the Federal House of Representatives, Honourable Nnolim Nnaji, along with his predecessor, Honourable Chukwuemeka Ujam.

Other notable personalities who were present include the Chairman of Easton Hill Continental Hotel, Chief Dr Mike Onu, President General of Mburubu Town Union, among others.

Speaking at the ceremony in her opening remarks, Engineer Ebele Okeke, who is the chairman, Board of Fellows/ College of Fellows, told the inductees to be proud ambassadors of the NSE.

President of Nigerian Society of Engineers, Engr. Babagana Mohammed, FNSE stated that “The board has certified a total of 66 engineers who have gone through very thorough screening and acceptance processes. And found worthy in professional practice, and character, to be upgraded to the prestigious Fellowship Society”.

Your reliable news portal, Jungle Journalist Media Limited was at the event live and brings you an array of photographs taken at the ceremony:

Abia State Govt to partner with NNPC to stabilise flow of petroleum products

Abia State Governor, Dr. Okezie Ikpeazu has assured of the readiness of the State Government to partner with the Nigerian National Petroleum Corporation (NNPC) to facilitate easy flow of petroleum products from Abia State to other parts of Southeastern region of the country. The Governor made this known during a stakeholders meeting held between the state government and top management team of the NNPC.

The Governor identified three key areas which will help mitigate pipeline vandalization in the State.

According to him, there was the need to cooperate with management of the NNPC in these key areas to ensure lasting peace that will in turn guarantee free flow of petroleum products within the region.

The key areas the Governor mentioned included the need to provide logistics around moving petroleum products into the depot at Osisioma and further conveying them to various parts of the Southeast. The Governor said with adequate logistics available, the difficulty encountered during movement of products into the depot and conveying them to other parts of the Southeast and even the nation would be addressed.

While identifying the Osisioma Road as a key enabler to guarantee free flow of petroleum products, the Governor said his administration has done some interventions in the road leading to the depot.The State Chief Executive restated his government’s commitment to fixing the road completely.

“We are rebuilding the Osisioma Road using rigid pavement technology. This very road is key to our people.

“We had noticed that the road to that depot, which is a federal road, was bad and we intervened by hiring Willangy Construction Company to reconstruct it using the rigid pavement technology for the first 3km leading to the depot in order to ensure smooth transportation of products by articulated trucks. We also tried to do a drainage to take away storm water from it but the federal government then awarded same road for twice the amount of money we awarded it to another contractor and we’ve been going back and forth to Abuja to resolve the issue even to the point of asking them to allow us do even if just the first 3km with rigid pavement. I am hopeful that very soon we will resolve the issue as I am not asking for refunds but rather asking them to allow us repair that road for the benefit of our people and for the protection of the strategic national infrastructure. I am hopeful we will resume work on that road very soon”, he said.

Other areas identified by the Governor was pipeline vandalization. He called for innovative measures to be taken to protect the pipelines. The Governor urged management of NNPC to engage local communities in protecting the pipelines. This he said would make the people own the facilities and prevent incessant vandalisation by unpatriotic elements. He also urged the NNPC management to unbundle the pumping of petroleum products to prevent bunkering.

Governor Ikpeazu then used the occasion to call for greater presence of PPMC & NNPC in Abia State. “Abia as an oil producing state should have more presence of NNPC and PPMC to encourage people participation and support”, he said.

He called on the Corporation to be more responsive to the needs of host communities so the people can always have a sense of belonging.

On his part, Engr Adeyemi Adetunji who represented the Group Managing Director of NNPC, Mele Kyari, expressed appreciation to the government and people of Abia State for providing a conducive environment for the operations of NNPC in the State and called for further improvements to ensure total cessation of pipeline vandalization along the Abia segment of the Port Harcourt-Aba-Enugu-Makurdi pipeline. He stated that NNPC is willing to work with the state, communities and other stakeholders to ensure a full return of operations at Osisioma Depot.

According to him, “We are happy to note that in recent years the severity of challenges to the security of the pipeline has reduced but we must collectively work harder to totally end incidents of product loss as a result of the activities of vandals”.

He informed that Port Harcourt rèfinery rehabilitation has started and will be completed by 2023.

Participants at the meeting which held via Zoom include the Deputy Governor of the State, Rt Hon. Ude Okochukwu, the Secretary to the State Government, Barr. Chris Ezem, the Commissioner for information, Chief John Okiyi Kalu, Commissioner for Finance, Dr. Aham Uko, Commissioner for Justice and Attorney General of the State, Barr Uche Ihediwa, the Special Adviser to the Governor on Diaspora Affairs Dr. Mrs Ngozi Erondu, the Chairman, Osisioma Ngwa Local Government Area, Dr. Christian Kamalu, amongst other government officials.

ICYMI: Why Shell, Chevron, other oil majors are leaving Nigeria

By Ibrahim Apekhade Yusuf with agency report

Fresh insights as to why the oil majors are gradually scaling down their operations and planning their exit from the country has been unraveled.

Investigation by The Nation revealed that among the oil majors, including Royal Dutch Shell, ExxonMobil, Total and Eni, are cutting billions in spending after taking hits to their profits, thus shifting money to renewable fuels and focusing only on the most cost-effective markets.

Checks by The Nation further revealed that the country was able to attract only $3 billion, or 4%, out of the $70 billion committed on new projects in Africa between 2015 and 2019, a development experts say, does not bode well for economy which relies on oil receipts to survive.

Nigeria’s loss has been the gains of other African countries such as Angola, Sao Tome and Principe, where some of the IOCs have made major investments in recent years.

In Sao Tome & Principe for instance, is now being heavily courted by oil companies from far and near. Notably, a consortium of US firms, including Chevron Texaco and ExxonMobil where among the first to secure oil license along with a Norwegian company, EER, which netted over $70million with many other prospects.

Confirming this development, Delta State Commissioner for Environment, Hon. Onogba Christian, while fielding question from our correspondent on the sidelines of the “Stakeholders Forum on The Environment” facilitated by the Institute of Directors Nigeria (IoD) Port Harcourt chapter, said oil majors like Shell, Chevron and others may have been compelled by the present socioeconomic realities that has made the current operating environment bad for their business to plan their exit from the country.

Specifically, he said: “The first ominous signs that presented itself was the deliberate efforts by the international oil companies (IOCs) to relocate their headquarters outside the Niger Delta region. When that happened few years back, it was a bad signal.

“Of course, you cannot lay all the blame on the IOCs entirely because no businessman wants to invest in an area where insecurity is a big issue. The problem really has to do with the issue third party interference, poor legislation among other factors which are genuine reasons to affect investment decisions, he stressed.

To address this issue, the government, he maintained, must ensure that there is an enabling environment for business to thrive. “I’m convinced that once there is a level of assurance that their investments can be guaranteed many of these oil managers that have exited the country will come back,” Christain assured.

Echoing similar sentiments, Chief Prof. Jasper Jumbo, Chairman/CEO, Niger Delta Projects Consortium Limited, said, “Nobody wants to do business in an environment of chaos. Once peaceful co-existence is a challenge no business can survive under such a circumstance.”

International energy companies working in Nigeria are worried that proposals in the country’s long-delayed oil industry law will deter investment in new offshore projects.

In a joint presentation, the OPTS urged lawmakers to remove a proposed hydrocarbon tax as producers will still be subject to companies income tax.

“Our review of the Petroleum Industry Bill shows that deepwater provisions do not provide a favorable environment for future investments and for the launching of new projects,” Mike Sangster, managing director of Total SE’s Nigeria unit, told lawmakers at a hearing in Abuja, the capital recently.

To boost new investment, the proposed law should grant deepwater oil projects full royalty relief for the first five years of production or a graduated royalty program, said Sangster, speaking on behalf of the Oil Producers Trade Section, a group of 30 producers including Total, Royal Dutch Shell Plc, Exxon Mobil Corp., Chevron Corp. and Eni SpA, which he chairs.

The bill — legislation that’s two decades in the making — will streamline how Nigeria’s energy assets are operated and funded. First presented in parliament in 2008, progress in passing the bill was held up by political wrangling and objections from international oil companies that say the government is demanding an excessive increase in revenues.

The persistent failure to pass the bill “has been a major drag” on the oil and gas sector, Ahmad Lawan, president of Nigeria’s Senate, said last January as he opened two days of public hearings on the proposed legislation. The delays have harmed the country’s ability to “attract both local and foreign capital” at a time of greater competition with other resource-rich nations, he said.

Source: The Nation

Nigeria losing over 50 million dollars as Pan Ocean workers industrial action continues

* Stakeholders urge FG, others to intervene urgentlyBy Ogba Collins, WarriThe Nigerian Government is losing an estimated crude oil production of over 420, 000, Four Hundred and Twenty Thousand Barrels Per Day and over 50 million Dollars since the two unions. NUPENGASSAN of Pan Ocean workers embarked on an industrial action against management of Pan Ocean over non payment of salaries, pension remittances, welfare of workers among others.Investigations revealed that Pan Ocean workers had issued several industrial action notices to the Top Management of the company in pursuance to their demands but to no avail until they shutdown OML 98, OML 147 fields as well as the major gas plant line supplying Egbin Power plant last December 2020 which compelled NNPC, DPR, Pan Ocean Top Management for meetings and it was resolved and they were assured of meeting up their demands by federal government.Further investigations revealed that Chairman of Petroleum and Natural Gas Senior Staff Association, PENGASSAN, Pan Ocean branch, Comrade Rex Aibangbee, NUPENG Branch Chairman, Comrade Aboy Udi, PENGASSAN as well as NUPENG National PRO, Comrade Cogent Ojobor and PENGASSAN, Warri Zonal Council Vice Chairman, Comrade Prince Audu Peter Oshiokhamele with NUPENGASSAN National President, Williams Eniredonana Akporehe and PENGASSAN National President comrade, Comrade Osifo Festus both unanimously declared and gave Pan Ocean and federal government as well as relevant agencies 48 hours starting from December 7, 2020 to meet up the demands of the workers or they shutdown their operations they reiterated that the two union presidents had directed that they shutdown operations if NNPC, NAPIMS, Ministry of Petroleum doesn’t resolve the issue amicably by paying the workers what’s due them.Accordingly, federal government in their joint meeting held with both NUPENGASSAN and their National leaders agreed however that the NNPC will pay the workers 60 percent, while Pan Ocean take care of their top management after it was reviewed.The federal government agreed outright payment of 100 percent in order for easy takeover of the assets by NPDC.Presently, Pan Ocean has refused signing memorandum of Understanding with federal government through the NNPC, its subsidiaries and staff of Pan Ocean in order to mandate release of fund to pay and settle the workers industrial unrest which has led to loss of almost 500 thousands barrels of crude oil per day; and almost loss of about 900 million cubic feet of gas production occasioned due to shutting down of the various production well facilities.Stakeholders in the oil and gas sectors are urging the federal government and the top management to urgently intervene in order to save the economy from such huge loss and possible economic collapse if the industrial unrest continues.They stressed the need for government to prevail on Pan Ocean Top Management to settle the issue promptly in order to encourage peaceful and industrial harmony among workers and Pan Ocean management.

Nigerians Can Now Sue Shell In The UK For Oil Pollution

Nigerians can sue Shell in English courts for damage to communities caused by oil spills in the Niger Delta, the UK’s Supreme Court said on Friday, allowing the communities to bring their claims for compensation and clean-up in UK courts.

The Supreme Court ruled in favor of the Ogale and Bille communities who have contended that Shell should be held liable for the oil spills under the supervision of its Nigerian subsidiary SPDC.

The UK Supreme Court overturned a split decision of the Court of Appeal and held that the two cases brought by the Ogale and Bille communities are arguable and can proceed in the English courts.

The Supreme Court ruling adds another precedent for oil companies who can be sued in their domicile for oil spills and other harm to communities in other countries.

Last month, The Hague Court of Appeal ordered Shell to compensate Nigerian farmers for two oil spills in the country 13 years ago, in the first lawsuit in which a company has been held liable in the Netherlands for its actions abroad.

Shell hasn’t argued that the oil spills did not happen, but has always said that the spills happened in communities with rampant oil theft and infrastructure sabotage.

“Regardless of the cause of a spill, SPDC cleans up and remediates. It also works hard to prevent these sabotage spills, by using technology, increasing surveillance and by promoting alternative livelihoods for those who might damage pipes and equipment. Unfortunately, such criminal acts remain the main sources of pollution across the Niger Delta today,” a spokesperson for Shell said, as carried by Sky News.

Persistent issues with theft and sabotage in the Niger Delta could prompt Shell to take a hard look at its operations onshore Nigeria, the supermajor’s chief executive Ben van Beurden said last week.

Daniel Leader, a partner with law firm Leigh Day representing the Nigerian communities, said, commenting on Friday’s ruling:

“This Supreme Court judgment gives real hope to the people of Ogale and Bille who have been asking Shell to clean up their oil for years. We hope that now, finally, Shell will act. But it also represents a watershed moment in the accountability of multinational companies.”

Militants attack shipyard in Akwa Ibom over failure to pay N20m settlement

Suspected militants on Monday attacked facilities at the new Norfin Offshore Shipyard located at the boundary shoreline of Ikot Ukpong in Oruk Anam Local Government Area of Akwa Ibom State.

This followed the company’s alleged inability to allegedly settle them with the sum of N20m.

The attacks, it was gathered, led to the postponement of the commissioning of the shipyard initially billed for January 23, 2021 to January 30, by the Governor Udom Emmanuel

The armed men reportedly arrived at the yard at about 5am, shot sporadically to scare off security workers around the site before unleashing their explosives into the multimillion naira dredging facility of the company.

Chairman of the facility, Engr. Iniekong Charles Udonwa, who briefed newsmen at the site, condemned the damage done to facilities at the shipyard by the suspected militant group from Ogoni part of Rivers State.

According to Udonwa, “they said we cannot start any business with the government of Akwa Ibom without settling them.

“They kept telling our staff to tell the government of Akwa Ibom to reach out to them since they are in charge of both Rivers and Akwa Ibom States. Where do they expect me to get N20m naira from to give them after destroying our machine worth N60 million?”

He said he felt discouraged and demoralised by the incident adding that he was contemplating taking his investment elsewhere.

“The investment was borne out of my desire to contribute to the development of the State by providing employment opportunities for her teeming youths.

“At the last count, over 100 staff are working at the Shipyard with 4 of them from neighbouring Rivers State.” He said.

Engr. Udonwa appealed for a prompt intervention from the State government to forestall a recurrence of the ugly incident.

He however said the decision to postpone the date of the launch was regrettable and apologize for the inconveniences.

$1.1bn deal: Elumelu’s firm buys Shell, Total, ENI stakes in oil block

Three international oil companies operating in Nigeria have sold their combined 45 per cent interest in Oil Mining Lease 17 and related assets in the Eastern Niger Delta to TNOG Oil and Gas Limited, an integrated energy company founded by Mr Tony Elumelu.

Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited assigned their interests of 30 per cent, 10 per cent, and five per cent respectively in the lease to TNOG Oil and Gas.

SPDC announced in a statement on Friday the completion of the sale of its 30 per cent interest in OML 17 and associated infrastructure to TNOG Oil and Gas for a consideration of $533m.

The oil major said the completion followed the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.

TNOG Oil and Gas is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, both of which have Elumelu as their chairman.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

The company said it was committed to transfer OML 17 in an orderly and responsible manner to the new owner, which would help to provide a sustainable long-term plan to unlock its full potential.

“As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for over 60 years and remains committed to a long-term presence here,” said the Managing Director of SPDC and Country Chairman of Shell companies in Nigeria, Mr Osagie Okunbor.

Heirs Holdings said in a statement that TNOG Oil and Gas would have sole operatorship of the asset.

It described the transaction as one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1bn provided by a consortium of global and regional banks and investors.
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It said the deal also involved Schlumberger as a technical partner and the trading arm of Shell as an offtaker.

OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential, according to the statement.

The Chairman of Heirs Holdings, Elumelu, said, “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs.

“The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.”
Elumelu thanked Shell, Total and ENI for the professionalism of the process, the Federal Government, the Ministry of Petroleum Resources, and the NNPC for the confidence placed in the company.

‘Don’t provoke us by marginalising Edo indigenes in NDDC board appointments’-Edo Indigenes

Edo Progressive Indigenes Association (EPIA), otherwise known as Edo Indigenous Movement Worldwide (EIM) has warned the Niger Delta Development Commission (NDDC) against alleged plans to marginalise the state in its appointments.

EIM in a message said Edo indigenes deserve to get choice appointments, as a result of the state’s contributions to the oil sector.

The statement, signed by the Indigenous leader and founder of the group, Chief (Dr) Bishop Omogiade Enoyiogiere Edokpolo, said that Edo is an active member of the NDDC, having the largest gas reserve in West Africa, apart from its numerous crude oil reserves across the state.

He stated: “It will be tantamount to calumny if the stories we are hearing is true, that our Indigenes are being systematically begging denied positions we ordinarily deserve. For the records, Edo is an active member of the NDDC, having the largest gas reserve in West Africa, apart from its numerous crude oil reserves across the state. Edo people are therefore qualified to play a major role in the community development commission.

“No one should take us for granted because of our peace living nature, and try to take away our rights and give it to another. We will fight it, we will resist it, and we will get back what belongs to us.

” We have been marginalised by the NNPC, and the oil giants, and because of our demure nature, its given that we cannot act. That is far from the truth.

“The days of darkness is over. The days of marginalisation is over. The years of neglect of our communities and people, despite our numerous contributions to the wealth of the country is over.

“Those in charge must ensure that the right thing is done or else, expect our response in a way they will not like at all. Our peaceful nature must not be mistaken for cowardice”, Edokpolo said.

Illegal refinery: Gas explosion claims three lives in Bayelsa

Three teenagers have reportedly died at an illegal refinery camp located between Ibelebiri and Otuegue 2 communities in Ogia Local Government Area of Bayelsa State, following a gas explosion.

Several others were said to have suffered varying degrees of injury during the incident. The deceased were identified as Victory Friday, Endurance Glazio and James Abaye.

The incident, Vanguard learned occurred on Thursday at about 11 pm at the illegal refinery camp popularly known as Kpo-fire camp tucked away in the thickset of deep swamp.

The lads were said to be working at the usually risky venture when one of their colleagues providing security at the camp attempted to lit a cigarette which caused the explosion.

Saturday Vanguard recalled that no fewer than 50 persons were burnt to death in similar circumstances sometime last year at an illegal refining camp within the Ogbia axis of the state.

Incidentally, the area is host to one of the oil and gas logistics base owned by one of the oil majors with heavy military presence.

A community source who spoke anonymously said “the camp has been existing for about six years now. And it would surprise you to know that the camp is just by the Igbogene-Otuasega axis.

“There is a security post manned by police and after the camp, you have the Kolo Creek flow station which is also manned by soldiers yet these boys still operate freely.

“In fact, a day after the fire incident, the ones that escaped the fire went back to camp to continue cooking crude again when youths from Oruma community where one of the deceased comes from went there and stopped them.

“You know that in the process of refining, they only refine petroleum motor spirit, diesel and kerosene.

“Because their method of refining is crude, they leave a lot of gas in the air. So one of their colleagues providing security around the camp struck a match stick trying to lit a cigarette and the next thing was an explosion.”

When contacted, the state Police Public Relations Officer, Asinim Butswat, simply said there was “no report of such incident.”

Also attempts to reach the Public Relations Officer of the Nigerian Security and Civil Defence Corps(NSCDC), Solomon Ogbere for comments proved abortive as his mobile line was not going through.

Senator Dr Ifeanyi Ubah Has Nothing to Do With Workers Dispute in Capital Oil Last Week

Contrary to news making the rounds that the Senator representing Anambra South Senatorial District is somehow involved in the skirmishes amongst his former workers that occurred in the premises of the company last week.

It is imperative to set the records straight in order to avoid falling into the hands of political detractors who are hellbent on misleading the public.

The former workers of the company in the past few months has been involved in negotiations with the management of the company to find closure to their situation since the illegal actions by Amcon that affected their work , remuneration and welfare for some years.

In line with it’s resolution to pay off the workers, the company
had several meetings with its workers and reached an agreement with them on a six months severance package and has commenced making the payments to the workers that signed the resolution, while this was going on seamlessly , some junior workers started illegal collection of fees
(6k each) amongst the workers which gave rise to the fracas and the security agencies were quickly brought in to calm the situation and restore peace .

It was purely a dispute among the former workers and it is wrong for anyone to claim that Senator Ubah sent thugs to attack workers

What possible gain does the Senator stand to garner from a crisis amongst his former workers who were in the process of receiving their severance payments from the new management of the company since he stepped aside from direct management of the company to contest for Senate ?

The Distinguished Senator has since not been involved in the direct management of the company and one wonders why this politically induced attempt to associate him with the skirmishes that was immediately quelled as soon as it broke out by the company who brought in security operators and got the situation under control .

It is a known fact that the illegal intervention by Amcon in the company affected the day to day running of the company for years and in the process rendered many of these workers redundant and made them look elsewhere in search of daily bread

Suffices to put it on record that Senator Dr Ifeanyi Ubah is in court challenging the illegal actions taken against the company by the Asset Management Corporation of Nigeria

Those who are afraid of Ifeanyi Ubah will stop at nothing to pull him down .But as they continue to do their mischief the God Almighty has continued to lift him up.

Signed,
Kamen Chuks O
Head , Media and Strategic Communications to Senator Dr Patrick Ifeanyi Ubah