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Shell, Milieudefensie To Pay €15 Million Compensation To N’Delta Farmers Over Oil Spills

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Industry Regulator Applauds Shell For Investing In Nigerian Gas Infrastructure

SHELL AND MILIEUDEFENSIE SETTLE LONG-RUNNING CASE OVER OIL SPILLS IN NIGERIA

Olushola Okunlade Writes

Following the judgments of the Court of Appeal of The Hague on 29 January 2021, Shell and Milieudefensie have negotiated a settlement for the benefit of the communities of Oruma, Goi, and Ikot Ada Udo in Nigeria, impacted by four oil spills that occurred between 2004 and 2007.

The settlement is on a no-admission of liability basis, and settles all claims and ends all pending litigation related to the spills. Under the settlement, The Shell Petroleum Development Company of Nigeria Ltd (SPDC), as operator of the SPDC joint venture, will pay an amount of EUR 15 million for the benefit of the communities and the individual claimants.

An independent expert has confirmed that SPDC, as operator of the SPDC joint venture, has installed a leak detection system on the 20” lines that form the KCTL Pipeline in compliance with the judgment of the Court of Appeal of The Hague, the Netherlands.

The parties agree that remediation has been completed and certified by relevant regulatory agencies in Nigeria in accordance with Nigerian law. The parties agree this also follows from the judgments of the Court of Appeal.

Oil & Gas

NLNG’s Bonny Plant Still In Operation

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NLNG Refutes Online Publication By Nigerian Daily

Olushola Okunlade Writes

Nigeria LNG Limited (NLNG) confirms that operations at its plant on Bonny Island are still active despite a Force Majeure declared in October 2022 and feed gas supply challenges.

The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers.

In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector.

The company is closely monitoring the resolution of supply challenges by all relevant parties.

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Nigerian Gas Association Elects NLNG General Counsel And Company Secretary, Aka Nwokedi, Others As 2023-2024 Executive

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Nigerian Gas Association Elects NLNG General Counsel And Company Secretary, Aka Nwokedi, Others As 2023-2024 Executive

Olushola Okunlade Writes

Aka Nwokedi, General Counsel/ Company Secretary of Nigeria LNG Limited (NLNG) and former MD of NLNG Ship Management Limited (NSML), has emerged as President-Elect of the Nigerian Gas Association (NGA), leading the Executive Council to pilot and steer the affairs of the gas industry association for the next two years.

The election was conducted on 15th December 2022 as part of the Annual General Meeting of the Association which was held in Lagos.

Nigerian Gas Association Elects NLNG General Counsel And Company Secretary, Aka Nwokedi, Others As 2023-2024 Executive
Akachukwu Nwokedi, NLNG General Counsel And Company Secretary.

Aka Nwokedi who is a long-standing active member of the Association was the 1st Vice President before emerging as President-Elect. He has also over the years occupied several positions in the Association namely Legal Advisor, Secretary General, and Chairman, NGA Conference Committee.

The newly elected Executive Council will formally assume office during the Association’s International Conference which will hold in April 2023.

The NGA set up in 1999 is the umbrella professional body of the gas industry responsible for leading advocacy, promotion, and protection of the interest of the gas industry and players in Nigeria. 

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Nigerian Gas Association Holds 2022 Annual General Meeting On Thursday

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https://www.shell.com.ng/media/nigeria-reports-and-publications-briefing-notes.html

Rashidat Olushola Okunlade Writes

The 2022 Annual General Meeting (AGM) of the Nigerian Gas Association (NGA) shall on Thursday, 15th December 2022, hold.

The Nigerian Gas Association (NGA) is the apex organisation representing the varied and numerous stakeholders in the gas sector within the Nigerian oil and gas industry.

The NGA is the largest gas-focused volunteer/individual-member organization; the umbrella association and voice of the gas industry in Nigeria. NGA is a chartered member of the International Gas Union (IGU).

In a statement made available to BusinessEcho Magazine, Mr. Taji Ogbe, Executive Secretary, said that the 2022 Annual General Meeting is to review the Association’s activities during 2021, elect executive members, receive new members, and consider the 2021 audited financial account of the Association and attend other issues that may be brought to the attention of the AGM.

The statement reads: NOTICE IS HEREBY GIVEN that the 23rd Annual General Meeting (“AGM”) of the Nigerian Gas Association Ltd/Gte. (“NGA”) will be held virtually & physically (hybrid event) and hosted in Lagos, Nigeria on Thursday 15th December 2022 at 18:00 hrs West African Time (WAT) to transact the following business:

1. ORDINARY BUSINESS: To lay before the Members, the Report of the Executive Council, the Audited Financial Statements for the year ended 31 December 2021 together with the Executive Council and Auditors’ Reports thereon. A copy of approved Audited Financial Statements is hereby attached for Members’ review (please click here to view).To approve the appointment of Averti Professional Managers as Auditors of the Association the for the new financial year. To authorize the Executive Council to fix the remuneration of the Auditors.

2. SPECIAL BUSINESS: To consider and if thought fit, pass the following resolution as an Ordinary Resolution of the NGA: “That the NGA Executive Council be and is hereby authorized to do an upward review of the registration and annual membership dues for Corporate, Associate and Student Members which will take effect and become due as from the 2023 calendar year.”

3. NGA 2022 – 2024 EXECUTIVE COUNCIL ELECTIONS: To elect members into the following NGA 2022 – 2024 Executive Council positions:2nd Vice PresidentSecretary GeneralDeputy Secretary GeneralLegal AdviserFinancial SecretaryPublicity SecretaryNominees as accredited by the NGA Electoral Committee for the 2022 – 2024 Executive Council are as follows:2nd Vice President: To be announced by the NGA Electoral Committee in due course Secretary General: To be announced by the NGA Electoral Committee in due courseDeputy Secretary General: To be announced by the NGA Electoral Committee in due course Legal Adviser: To be announced by the NGA Electoral Committee in due course Financial Secretary: To be announced by the NGA Electoral Committee in due course Publicity Secretary: To be announced by the NGA Electoral Committee in due course

4. ANY OTHER BUSINESS

5. CLOSE OF MEETING

In 2019, the Southern Swamp Associated Gas Solutions project was commissioned, and the SPDC JV is planning to reduce associated gas flaring further through its Forcados Yokri gas-gathering project, of which large parts are set to be completed in 2022. Despite such efforts to reduce continuous flaring, unfortunately flaring intensity (the amount of gas flared for every tonne of oil and gas produced) at both SPDC- and SNEPCo-operated facilities increased in 2021 owing to short-term operational issues. Flaring from SPDC-operated facilities increased by around 5% in 2021 compared with 2020. The increase was primarily because of the extended outage of the gas compression system in SPDC’s shallow-water operations. The system was restored and became operational from January 2022. Flaring at SNEPCo-operated facilities rose by around 160% in 2021 compared with 2020. This was mainly because of an increase in flaring on the Bonga floating production, storage and offloading (FPSO) vessel. Repairs to a flex-joint on the Bonga FPSO’s gas export riser in the second quarter took longer than expected, in part because of weather conditions. While repairs were under way, the FPSO continued to produce oil and therefore flaring was necessary for safety reasons. The repairs were safely concluded in July 2021. Although flaring intensity levels rose in 2021, SPDC and SNEPCo over the last 10 years have almost halved the combined amount of hydrocarbons they flare from 1.5 million tonnes in 2012 to 0.8 million tonnes in 2021. This reduction is the result of a strict flaring reduction management process and both SPDC and SNEPCo will continue to work in close collaboration with joint-venture partners and the government to make progress towards ending routine flaring of associated gas. NIGERIA LNG EXPANSION UNDERWAY Global demand for LNG continues to grow as the world increasingly seeks reliable supplies of lowercarbon energy. Shell’s investment in Nigeria’s gas infrastructure for export is expected to help 6 This is according to a data provided by global research and consultancy business Wood Mackenzie. the country benefit further from revenues. Shell Gas B.V. and its partners took a final investment decision in 2020 on a new LNG processing unit – known as Train 7 -- at NLNG. The expansion is expected to create around 12,000 jobs for Nigerians during construction and stimulate growth of the local oil and gas service sector, with 55% of engineering and procurement of goods and services being sourced in-country. Train 7 is expected to ensure Nigeria’s continued place as a global player in a lower-carbon energy source. Once operational, Train 7 will add around 8 million tonnes per annum of capacity to the Bonny Island LNG facility, taking the total production to around 30 million tonnes per annum. In 2021, NLNG began awarding procurement and construction contracts. Early works started at the site. The first phase of the worker village is expected to be ready for occupancy in 2022 and the new material offloading facility ready for use by the end of 2022. NLNG’s Train 7 is expected to come onstream in the middle of the 2020s. KEY LICENCE RENEWED FOR DEEP-WATER SNEPCo has interests in four deep-water blocks in the Gulf of Guinea, two of which it operates. Today, nearly one-third of Nigeria’s deep-water oil and gas production comes from the Bonga and the nonoperated Erha fields.6 Since production began in 2005, Bonga alone has produced more than 950 million barrels of oil with the 2021 average oil production per day at 105,000 barrels. The Bonga FPSO vessel has a total production capacity of 225,000 barrels of oil per day and 150 standard cubic feet of gas export per day. In 2021, the availability of the FPSO vessel increased to 80% from 70% in 2020. In addition to Bonga, SNEPCo’s exploration activities have led to several significant discoveries of oil and gas over the last two decades, including the Bolia and Doro fields (Shell interest 55%). Nigeria Briefing Notes Helping to power Nigeria’s economy 13 In the right investment climate, SNEPCo believes that there are opportunities to expand. In 2021 the OML 118 (Bonga) production sharing contract was renewed and the lease extended for 20 years. Bonga North and Bonga South West Aparo (BSWA) oil fields are two such potential opportunities. Bonga North is a proposed tie-back project to the existing Bonga FPSO with Phase 1 comprising 14 wells. BSWA is a development of a new FPSO with Phase 1 comprising 23 wells. SUPPORTING RENEWABLE ENERGY STARTUPS Millions of Nigerians are excluded from the country’s power grid and Shell Companies in Nigeria have established and provided substantial funding for a not-for-profit, impact-investing company called All On. Operating as an independent company, All On works to bring reliable electricity – often from renewable energy sources -- to off-grid urban and rural customers. This support aims to build a solid pipeline of viable businesses that can create the scale required to address Nigeria’s access to energy gap. In December 2019, SPDC and SNEPCo made a significant additional 10-year financing commitment of $160 million in All On, bringing the total commitment to $200 million. By the end of 2021, All On had provided investment capital to over 40 renewable energy start-ups in its portfolio – an increase of more than 30% from 2020. One such company is Infibranches Technologies Limited, to which All On has committed $2 million, which is expected to enable the indigenous technology company to expand sales of solar home systems via its more than 13,000 agent banking partners across Nigeria. With the support of the Rockefeller Foundation, the All On Hub was established in 2020 to provide nonfinancial support and build the capabilities of off-grid energy entrepreneurs. In 2021, the hub supported 81 ventures – nearly double the 41 supported in 2020. Also in 2021, All On, Odyssey Energy Solutions and the Global Energy Alliance for People and Planet launched a $10 million equipment financing facility as part of the DART pilot programme in Nigeria. 7 Hydraulic flying leads support the delivery of hydraulic fluid and/or chemicals between subsea equipment. 8 Subsea trees are an assembly of valves and other components used to monitor and control the production of a subsea well. DART will combine demand pooling, aggregated purchasing of solar equipment, and access to affordable finance to unlock economies of scale for solar companies, achieve cost savings for end-users, and accelerate the growth of the renewable energy sector in Nigeria and beyond. DEVELOPING LOCAL CONTENT AND SKILLS Shell Companies in Nigeria contribute to the growth of Nigerian businesses that can provide technical and support services to the industry. This includes the manufacture of tools and technical kits, the operation of helicopter flights in the Niger Delta, and strategic partnerships between foreign and local companies to stimulate technology transfer and capacity development. While there are government-required programmes in some areas, such as the Nigerian and Community Content Strategy embedded in the Assa North/Ohaji South gas development project, Shell Companies in Nigeria deliberately seek to contract local businesses wherever possible. In 2021, Shell Companies in Nigeria awarded $800 million worth of contracts to Nigerian-registered companies. Of these, 92% were companies with at least 51% Nigerian ownership. SNEPCo has awarded major engineering and construction contracts to companies that are indigenous, have local staff, or possess domestic capabilities in the country. At present, the manufacture and rebuild of hydraulic flying leads7 (HFLs) is being carried out in-country by wholly indigenous companies. Pressure Controls Systems Nigeria Limited, another Nigerian company, continues to refurbish old subsea trees.8 Sometimes, a lack of access to capital hinders Nigerian companies from competing for and executing contracts effectively. Shell Companies in Nigeria have provided access to nearly $1.6 billion in loans to 901 Nigerian vendors under the Shell Contractor Support Fund since 2012. These loans help improve their tendering opportunities.

Dated 9th day of November 2022.
BY ORDER OF THE NIGERIAN GAS ASSOCIATION EXECUTIVE COUNCIL
ENGR. CHICHI EMENIKE
SECRETARY-GENERAL

Please find scan copy of the Notice below or download it here

Venue (for physical attendance) and Event Link (for virtual attendance) will be communicated in due course. For further inquiry contact Taji Ogbe, PMP, Executive Secretary, Nigerian Gas Association es@nigeriangasassociation.org.ng or Nigerian Gas Association RC365,662
Secretariat: Block 98, Plot 3A, Mike Adegbite Avenue, Lekki Phase 1, Lagos, Nigeria. www.nigeriangasassociation.org.ng info@nigeriangasassociation.org.ng
 

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