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OTL Africa Downstream Inaugurates New Advisory Board



OTL Africa Downstream inaugurates new Advisory Board

Olushola Okunlade Writes

The Oil Trading and Logistics (OTL) Africa Downstream Secretariat has announced the inauguration of a new Advisory Board for Africa’s leading downstream energy event, the OTL Africa Downstream Week.

The board is led by Mr. Tunji Oyebanji, Managing Director, 11 Plc as the Chairman. Others are Mr. Ian Brown, International Energy Consultant; Mr. Clement Isong, Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN); MrMumuni Dagazau, Chief Operating Officer, OVH Energy and Mrs. Sheila Abiemo, Director, Projects Monitoring and Evaluation, National Petroleum Authority, Ghana.

At the inauguration of the five-man Advisory Committee during a virtual ceremony on Thursday, outgoing Chairman, Dr. Reginald Stanley said he was delighted to bequeath the platform to a perfect team that will take OTL Africa to another level and provide direction to navigate the global energy transition.

Stanley expressed complete confidence in the professionalism of individuals who have committed their time and resources to downstream oil and gas development and attested to their ability to promote inclusiveness and increase participation among African countries and beyond.

He reiterated his enduring support for OTL Africa and charged the new Advisory Board to “keep their eyes on the future; improve on advocacy; and remain a voice to be reckoned with in the industry”.

In his address, Dr. Emeka Akabogu, Founder and President, OTL Africa Downstream thanked the outgoing chairman under whom he said, “OTL Africa witnessed significant growth”. He deployed his goodwill, passion, and industry knowledge to facilitate new collaborations and staked his reputation and more to ensure the OTL initiative gained industry support.

Akabogu noted that the world was changing very fast and with it, preferences, practices, and operations. He added that the industry was also changing and it was important to remain firmly in the mix of its most important developments, discussions, and plans.

He said: “It is on the foregoing basis that everybody in this Advisory Board has been identified. Individually, you all have achieved significant heights in your unique areas and roles, demonstrating leadership, passion, commitment, and friendship. You have each succeeded in creating considerable value in challenging circumstances and are all individually highly regarded by both colleagues and adversaries. You are now called upon involuntary service in the downstream energy industry to bring a bit of you to create a mass of good.”

“We trust that the profile and experience of the new board will lead to greater global acceptance and respect to the OTL Africa Downstream Week”, he added.

Akabogu expressed gratitude to Mr. Tunji Oyebanji for showing unmitigated interest, unwavering support, and staunch commitment and loyalty to OTL over the last 15 years, adding that “We look forward to great and lasting legacies and renewed impetus from the guidance you and the board provide”.

In his acceptance speech, Oyebanji said it was an honor and privilege for him to be invited to work with a very distinguished group who have contributed significantly to the downstream industry in their various spheres of endeavor, and thanked the new members for heeding the call to serve driven by a passion for OTL and the downstream industry.

Oyebanji acknowledged that he was stepping into the very huge vacated by Dr. Stanley and thanked him for his outstanding service to OTL. He promised to seek his advice in order deliver on the confidence reposed on him and the board.

Confirming his passion for OTL, the 11 Plc boss said “I have been involved in OTL right from the inception and it is an event I look forward to with great expectation and enthusiasm“.

Addressing the new board members Oyebanji said: “We are all driven by a passion for the downstream industry and for OTL definitely. So as you join me on this board, I will like to request and appeal for your full support. You are all individually very accomplished people, so it’s indeed an honor to be what I call first among equals. I count on your support, advice, and guidance to make OTL an even better event. The idea should be that across Africa it should be known as a household event in the downstream industry and a reference point for similar events on the continent.”

“I can give everybody the assurance that we will do our best to deliver on our mandate and ensure that OTL continues to be the envy of all”, he concluded.

In a goodwill message, Group Executive Director, Ventures and Business Development, Nigerian National Petroleum Corporation (NNPC) Sir Billy Okoye, showered praise on Reginald Stanley for supporting OTL to attain great heights; he attested to the expertise and professionalism of the members of the new board and charged them to leverage their areas of comparative advantage across governments, private sector and global networks to meet the growing expectations of the downstream industry in Africa.

On his part, Ian Brown said it was an honor to be invited to serve and he looked forward to giving something back after 20 years of working in Nigeria’s downstream industry. He noted that OTL has brought a level of respect to the downstream industry.

Also commenting, Mumuni Dagazau said “this is an opportunity to serve Nigeria and this industry and I accept. He described OTL Africa as a bridge between the public and the industry, noting that it stimulates interaction between subsectors in the downstream industry.

“As we go into a different phase in the downstream industry, we have to be mindful of issues arising from the Petroleum Industry Act (PIA), subsidy removal, and the push for autogas, and LPG among other considerations. OTL gives us a platform to have these difficult discussions in a safe manner,” he said.

Clement Isong, in his comments, said OTL presented an excellent platform to drive the deregulation of the downstream oil and gas industry in Nigeria. “We are at a critical moment in history when we must engage. We need the PIA to be implemented as it was written and we must step up to ensure that the PIA delivers to the economy and Nigerians. OTL must go beyond its flagship event to deepen engagement and invest in the professionalization of this industry.”


NNPC Board Chairman Commends Nigeria’s Participation At OTC 2022



‘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



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



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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