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Minister Tips Gas as Nigeria’s Hope for Economic Development

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Chief Timipre Sylva,

The Minister of State for Petroleum Resources, Chief Timipre Sylva, has described the country’s gas expansion programme as a highway to economic prosperity and development.

Sylva said this when he featured on NAN Forum, the flagship interview programme of the News Agency of Nigeria (NAN), to highlight the achievements recorded in the oil and gas sector since he assumed office about two years ago.

He noted that the Federal Government embraced the gas expansion programme having realised that the country had abundant gas resources and that there was a need to focus on it as a bridge to renewable fuels.

“Last year we declared 2020 the year of gas because we realised that we need to focus on gas as a bridge to renewable fuels and we have abundant gas resources, so we need to take advantage of it,” he said.

According to him, the Federal Government is now paying greater attention to gas development because it provides a bigger linkage to the economy than crude oil.

“Gas is produced and it can be transformed to fertiliser and fertiliser can fertilise our agricultural sector.

“Also, the gas that is produced can be transformed into petrochemicals, and petrochemicals can be transformed into everything that we need in life including the plastic on the camera, phones, even the clothes we wear.

“Petrochemicals come from gas, and gas can be transformed to methanol, and this is the basis of chemical and pharmaceutical industries.

“So you can imagine if we harness our gas resources and do a fertiliser blending plant based on gas, then produce the fertilisers and send them to the farmers.

“And you can imagine if all the farmers in Nigeria have access to cheap fertiliser what it would do for our agriculture without anybody doing anything else,” Sylva said.

The minister noted that employment generation from gas alone is immeasurable going by the number of people that would be affected in the value chain.

Sylva also said: “If you have gas and produce petrochemicals with it, from petrochemicals you produce raisins, power the textile and electricity industry or all kinds of industries, you can imagine the number of job opportunities we can create.

“Thereafter, we can use the gas to power the country.

“We have this kind of resource and we have not even scratched it and then how can we move away from it? Let us face the benefit that is in gas to develop as a country.

“I believe that if we are talking about diversifying Nigeria’s economy, gas is the option, if we go gas, we can use it to diversify the economy faster than any other commodity and fortunately we have it in abundance than any other commodity.

“That is why we are saying, dedicate the next decade to this commodity we have in abundance so that we can use it to catalyse the industrial development of Nigeria.

“That is the whole idea of the decade of gas which the president is championing.”

Energy

NNPC Board Chairman Commends Nigeria’s Participation At OTC 2022

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‘There’s Sufficient Petrol’, Don’t Panic To Buy, Says NNPC

Olushola Okunlade Writes

Senator Margery Chuba-Okadigbo, Chairman of the Board of the Nigerian National Petroleum Company (NNPC) Ltd., on Monday commended the Nigerian delegation at the 2022 Offshore Technology Conference (OTC), in Houston, Texas, United States.

Chuba-Okadigbo gave the commendation while declaring open the OTC Nigerian exhibition pavilion at the conference.

She expressed her excitement toward declaring the pavilion open, saying that it was a thing of joy and pride that Nigeria is well represented at the conference.

Reports have it that the theme of the Nigerian exhibition pavilion is: “Energy Transition and the Future of Africa”, organized by the Petroleum Technology Association of Nigeria (PETAN).

The OTC is a platform where energy professionals across the globe meet to exchange ideas and opinions to advance scientific and technical knowledge for offshore resources.

“I am delighted to declare this exhibition open. Again, it’s a thing of joy and pride to see you Nigerians well represented in foreign countries,” she said.

Earlier in his opening remarks, the Chairman of PETAN, Mr. Nicolas Odinuwe, said that the theme was carefully chosen to “reflect the current realities in African oil and gas.”

Odinuwe called on Nigerian oil and gas industry leaders to continue to echo PETAN’s calls to deepen Nigerian content as always and implored the NNPC Ltd. board and others to indulge the association.

“OTC means different things to different people. But thanks to PETAN’s focused participation.

“PETAN and Nigeria have built capacities, capabilities, and visibility. PETAN has been the host of the Nigerian Pavilion for over 15 years.

“And we have been fully supported by the NNPC (now NNPC Limited) who are in transition.

We are here to continue to propagate, advocate and advance technology that has led to Nigeria being the only country in Sub-Saharan Africa with a robust exploration and production service industry,” he said.

According to the chairman, OTC gives attendees access to leading-edge technical information.

He said: “The benefits of the OTC 2022 event include showcasing companies’ capabilities to over 1,000 delegates and over 250 companies in the oil and gas industry.

“Also to give exhibitors the chance to promote their products and services to operators and contractors in the local region.

“Other benefits include gaining access by organizations to the latest industry news, a presence at one of the world’s largest oil and gas events and access to networking opportunities with professional contacts from across the world.

“Networking with the upstream, midstream, and downstream organizations as well as high profiled government officials and key decision-makers in the industry.

” The conference will give participants the opportunity to build and establish new leads as well as entrench a global presence in the industry.

“It will enable them to get familiar with competitors’ capabilities to stay ahead in the industry.”

Odinuwe said that PETAN had been responsible for leading and hosting the Nigerian government agencies, stakeholders, oil and gas companies, and investors at the OTC yearly.

He said that among the reasons for OTC was to deliver a unique experience for exhibitors and delegates to interact with global professionals as they share their insights on technological advances, energy transition, safety, environmentally focused solutions, and economic and regulatory impacts of the offshore energy sector.

“Organisations’ attendance will create a chance to develop business relationships and tap into emerging regions that are vital to offshore development as well as obtaining recognition necessary for growth and visibility to thousands across the globe,” he added.

He recalled that at the OTC 2019, Nigeria had the fifth-largest representation of over 60 participating countries.

“The value of participating organizations’ presence cannot be overestimated as they stand a chance to project their activities to investors and stakeholders spanning different countries.

The event will feature, among others, the formal opening of the Nigerian exhibition pavilion in the NRG Park; the luncheon and panel sessions on the Nigerian energy and supportive industries; the Nigerian Industry Awards Dinner and Cocktail; sideshows of Nigerian culture displays and entertainment; technical sessions and networking golf event,” he said.

PETAN is an association of indigenous Technical Oilfield Service Companies.

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Oil & Gas

Nigeria Oil Firms Spill 1,545 Barrels Of Crude Oil In First Quarter 2022

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Nigeria Boosts Oil Production By 200,000b/d

Oil and gas companies operating in the Niger Delta spilled 1,545 barrels of crude oil, an equivalent of 246, 000 liters, in three months, from January to March 2022, according to data obtained from the National Oil Spill Detection Response Agency, NOSDRA.

Although this indicates 52.6 percent less than the 3,262 barrels of crude oil spilled in the corresponding period of 2021, the development reflects the severe impact of environmental pollution on the nation’s economy due to crude oil exploration.

On a company by company basis, the report revealed that Heritage Energy Operational Service Limited recorded the highest spills, with 404.3 barrels of crude oil spilled in 31 incidents; followed by Shell Petroleum Development Company, SPDC, with 404.3 barrels of crude oil spilled in 31 incidents.

Others on the list include Empire energy, 314.47 barrels of crude oil spilled in one incident; Eroton Exploration and Production Limited spilled 69.57 barrels of crude oil in one incident; Nigerian Agip Oil Company, NAOC, spilled 49.7 barrels of crude oil in 16 incidents; while Enageed Resource Limited spilled 15 barrels in two incidents.

While the value of the crude oil spilled might not be huge, the damage to the environment, the disruption to the livelihoods of individuals within the impacted communities, and the manpower and financial resources required to clean up the spill and return the environment to its original state, run into billions of dollars.

Reacting to the development, the former Chairman, Petroleum Association of Nigeria, Bank-Anthony Okoroafor, said, “It cost millions of dollars to clean a barrel of a crude oil spill.

The cost of managing oil spillage is very huge, it cannot be quantified because the cost to human life is more. Environmental degradation caused by the spillage affects human life. A lot of people in the next 10 years or more will suffer from serious lungs problems and cancer among others.

According to Duke Energy Distinguished Professor of Environmental Engineering and Science, Hilary Inyang, who has completed a scientific study of the areas, “A deep analysis should show that it would cost more than $50 billion to clean up more than 2,500 sites in the entire Niger Delta, even with the recognition that there have been more spills than spill sites.

Speaking further, he said, “It would also take more than 50 years, even if that money was available. My back-of-the-envelope estimate is that for Ogoniland sites alone, about $6 billion are needed but risks can be reduced to tolerable levels with $3 billion.”

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Adulterated Fuel: Reps Clear Oando, MRS, Others, Ask SON To Test For Methanol

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Adulterated Fuel:

By Moninuola Sulaiman

The House of Representatives has exonerated the oil marketers accused of importing adulterated fuel into the country

The lower chamber cleared Duke Oil, MRS Oil and Gas, Oando Oil and Emadeb, Energy/Hyde/AY Maikifi/Britannia-U Consortium, noting that they did not commit any offence.

The House had earlier asked the NNPC Limited to suspend the four oil companies from the importation of PMS and other products pending the outcome of the investigation.

The decision to exonerate the oil marketers followed the consideration of the report of the Committee on Petroleum (Downstream) by the Committee of the Whole.

The committee recommended that the marketers did not commit any crime because they were exonerated by the NNPC Limited.

Two weeks ago, the lower chamber rejected this same report because it did not address the fate of those that imported the adulterated fuel into the country. Therefore, the House ruled that the committee should rework the report.

Background To Adulterated Fuel

In February, the government had detected a high quantity of methanol in a batch of PMS imported into the country. The attempt to recall the products led to fuel scarcity across the country.

NNPC Limited, which coordinates the government’s direct sale and direct purchase fuel policy, listed the four oil marketers for the importation of the adulterated fuel. However, MRS dismissed the claim by NNPC Limited, stating that NNPC Limited is the sole importer of PMS.

In another twist, Emadeb, Energy/Hyde/AY Maikifi Consortium also accused Britannia-U of importing the fuel on behalf of NNPC Limited.

It was expected that the intervention of the House would end the accusation and counter-accusation trailing the importation of the contaminated products.

When the Group Managing Director of NNPC Limited, Mele Kyari, appeared before the investigative panel, he said the marketers had refused to bear the liability for importing the methanol contaminated fuel.

Mr Kyari said the marketers claimed they imported the specification requested by the country. He added that Nigeria does not test for methanol.

New Recommendations

The Committee made seven recommendations to the House. It asked the Standard Organisation of Nigeria to include the test for methanol for future imports.

NNPC Limited was also asked to ensure a local supply of 90 million litres of PMS for local consumption.

The others are: “That the Hon. Minister of Petroleum Resources should expedite action for completion of the rehabilitation work and ensure upgrading of the major refineries at Warri, Port Harcourt and Kaduna to meet AFRI5 Specification to boost local refining and reduce over-dependence on imported PMS into Nigeria to avert reoccurrence.

“Minister of State, Petroleum Resources should initiate the adoption of the 2017 PMS Standard (NIS 116:2017) as approved by the Standards Organization of Nigeria (SON) which include testing for Methanol for future importation of the product into the country to mitigate reoccurrence.

“The Federal Government should position the Standards Organisation of Nigeria (SON) to implement its mandate to the latter by subjecting all imported white Petroleum and other products to the Offshore conformity assessment and also resume routine quality control of them and other products imported into the country at our various Seaports, Airports and Borders throughout Nigeria as shrined in the Standards Organisation of Nigeria enabling Act of 2015. This will finally address the reoccurrence of the importation of off-specification PMS and other substandard goods into Nigeria;

“Based on the Nigerian National Petroleum Company Limited exoneration, the Four(4) Oil Marketers/Importers (Duke Oil, MRS Oil and Gas, Oando Oil and Emadeb, Energy/Hyde/AY Maikifi/Britannia-U Consortium) did not commit any offence, therefore not recommended for suspension;

‘The Federal Government is to note that the Standards Organisation of Nigeria (SON) mandate is also specifically enshrined in item 62 (d) of Part I of the Second Schedule (Exclusive Legislative List), to the 1999 Constitution;

“The Regulatory Authority in this case Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should ensure proper housekeeping by working with Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) in ensuring water is drained regularly out of the tanks in the Tank Farms, Tankers (trucks) and underground tanks at the service stations;

“The Nigerian National Petroleum Corporation (NNPC) Limited shall maintain local supply and distribution of 90 Million litres daily across the country until normalcy is restored.

The recommendations were adopted without any objection by the members of the House.

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