GAS POLICY, SECURITY: MATTERS ARISING

L-R; Yetunde Taiwo, Ed Ubong, Ashely Taylor, Gbite Adeniji, Gaius Obaseki, Saidu Mohammed, Tony Attah and Yegbide at a Panel Session.

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t the first Panel Session of the Nigerian Gas Association (NGA) Conference which was held in Abuja, stakeholders and speakers express their views on cogent issues. The Panel Session which was moderated by former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) and NGA, Gaius Obaseki, addressed a lot of issues.

Fredrick Agbedi, Chairman, House Committee on Gas Resources was represented by Honourable Yegbide. In his contribution, Yegbide made it known that the first challenge on gas is security. He emphasized on the Global Memorandum of Understanding (GMoU) which is being used in the Niger Delta in relation to Agbami field and for the past fifteen years there has been no disruption of production. The initiative is an antidote that will aid security. He said oil has a safe value for vandals but gas does not and it means two things are responsible should there be disruption. It could be either ignorance or anger which can motivate people to vandalize gas pipeline. “If I vandalize a crude line I might get product to sell or cook it and do whatever I want to do with it. That is why a greater part of our environment is getting burnt because vandalizing from oil produces a product for sales.” Gas does not have such value, it cannot be gathered and sold like oil, which means vandals are either ignorant of what they are looking for or angry.

Yegbide posited that when an environment produces a product for power in other parts of the country, and the place is in darkness, the tendency is that the people will react negatively. He advocated that consultation and continuous dialogue is critical for security issues in terms of vandalism. He revealed that some rural dwellers have cell phones but could not recharge them due to lack of power, “These are smaller issues that create bigger problems.” The entire vicinity of the Niger Delta might not have access to power but the people know that there are gas pipelines within their environment that produce electricity elsewhere.

The House of Representative member was of the view that Chevron has not experienced vandalism in its Agbami field for over two decades because of its direct relationship with the environment. Sincere engagement should be in place. Sometimes gas companies are economical with the truth by not divulging facts with regards issues on power.

On gas flare, Yegbedi said the mangrove in the Niger Delta which sustained the environment is being depleted. The depletion affects the environment than gas pollution. The mangrove is used for cooking and other domestic uses. The government needs to provide gas so as to divert attention of people from depletion.

He said there should be a separate gas regulator and it should not be merged with a single regulator because gas is vast than oil. There is need for clear demarcation so that the gas sector will be privately driven to attract investors.

Giving insight from his country’s gas resources, Ashley Taylor, President, Point Lisas Industrial Port Development, revealed that Trinidad and Tobago has one of the oldest oil and gas sectors globally. The country started mining oil as early as the 1800 in Forcados and it is recorded that Trinidad and Tobago has one of the oldest oil wells that has been drilled. The government recognized the huge potentials gas represent in the country as a result of that a decision was taken to harness it for the downstream sector.

Taylor noted that the country’s gas reserve estimate is at 11.5 trillion cubic feet (tcf). Trinidad and Tobago’s made assiduous efforts to ensure that it makes substantial proceeds from gas sales by seeking for investors in the sector. The government embarked on different approaches such as incentives and taxation. This precipitated the government being able to collect more taxes.

The Caribbean country focused on reserve in order to avoid depletion by converting gas into sustainable development. It also diversifies into methanol and ammonium. Taylor disclosed that the Prime Minister of the country is an experienced geologist including those saddled with responsibility to manage the country’s oil industry. This assisted the country to enhance its oil sector with stringent measures put in place to ensure security of gas supply with plan that by 2022 at least 20% of consumption of electricity would come from renewables.

In his contribution, Christopher Beale, General Manager, Commercial and Development of West African Pipeline Company (WAPCO), emphasized on resource diversification that asset should be developed to domain centre in order to share proximity with nearby industries. He advocated that Aje field in Lagos should be developed.

Beale pointed out that payment and reliability issues within West Africa pipelines have been improved but there are still hurdles to be crossed. He urged operators to imbibe in the culture of willing-buyer-willing-seller. This will help the market to solve itself because there will be interference. The downstream should find a way to connect with the upstream. He commended member countries within the region for prompt payment of gas which has supported the sector.

Giving his own perspective under the Oil Producers Trade Section (OPTS), and representing the Chairman and Managing Director of Shell, Osagie Okunbor, Ed Ubong, said it is necessary to get the value chain right, “If we get one million Scoff of gas a day it can power three manufacturing plants.” When three middle plants and industrial users are working, they will keep the economy growing, even if the Nigerian Labour Congress (NLC) threatened to go on strike, gas demand drops by 10% because workers at the shop floor will not turn up for work. This is the impact that gas has for the Nigerian economy right from the grass root.

Ubong spoke about OPTS, that it is working with a lot of its partners. “If they did not invest with NNPC, there will be no volumes, he added.” Members of OPTS have made giant strides in supporting domestic gas market and they are continuously supporting the country’s gas agenda. He added that indigenous players like Seplat and ND Western have changed the landscape doubling the gas production from fuel that were owned by IOCs over 100%.

Nigeria has come a long way but it is yet to find her feet. Funding gives operators concern. For the past two years, the OPTS applied for Power intervention fund about $2 billion to address power debt. The programme will soon expire because there are no funds.

The Shell boss made it known that infrastructure plays a key role in getting gas from the field to where it will be bought. He urged the government to boost the AKK project that will allow gas to move from south to north. Ubong said OPTS lay more emphasis on conducive business environment that will give investors’ confidence to do business in Nigeria and convince other would-be investors.

Security of lives and property is key to the progress of business and the government has to strategize on its citizens’ safety to guarantee investors. In the absence of security, “You begin to ask yourself, if the business is worth running.”

The General Manager, Commercial, ANOH Gas Processing Company Limited, an offshoot of Seplat, Yetunde Taiwo, said NNPC should be given credit for being the driver of development of gas in Nigeria. Taiwo commented on NNPC’s seven critical gas development project which the corporation has embarked upon showing the aspiration of the government being carried out through NNPC.

She projected that by 2020, gas demand will rise to 7.5 billion cubic feet (bcf) per day. Being an upstream player, Taiwo asked “Where will all this gas go?” how is it being sequenced including the usual challenges associated with gas development in the domestic market.  Gas development is mainly to develop the economy and if there is a partnership with the private sector, it leads to divergence of expectation. Private sector looks at return on investment, government focus on stimulating the economy with gas so that its aspiration will be realized.

Taiwo said as pricing is being emphasized in gas, there is need for collaboration between the federal government and the private sector. As projects are developed, the country needs to do it in tandem with infrastructure. She counselled that if existing infrastructure is maximized, it will be a stepping stone for any expansion. Thus, “let’s use existing facility to the maximum, let’s optimize it and let’s test the might a bit.”

Giving his own perspective in the panel session, Chief Operating Officer, Gas and Power of NNPC, Saidu Mohammed, said security of supply is paramount. Lack of security has led to vandalism. Mohammed said there is need to dialogue in the same platform in order to avoid disagreement.

While focusing on security of supply, security should be in place for the off takers to take gas on commercial framework. If the frame work is punctured, producers will shut their pipelines. This will lead to the risk of empty pipelines. Thus, security of demand is an issue and part of it is payment.

Initiatives have been taken by government to resolve cash flow issues in the power sector so that stakeholders in the value chain will not be shortchanged.

On gas storage, Mohammed noted that the process will be alternative to vandalism which has not been nipped in the bud for quite some years, “If one pipeline segment has been breached, with a storage, you just put the gas and continue to supply.” Gas will be contracted under contractor obligation.

NNPC intends to make gas storage as a business whereby an operator can store gas to avoid vandalism. The initiative is to think outside the box so as to solve problems and issues surrounding vandalism.

According to Mohammed, gas will be privately driven, the upstream operators will search for the gas, produce it to the surface and allow it to be injected into the network by investors. This model has commenced with Asa north which is one of the critical seven projects of NNPC. He was of the view that funding is an issue and this has been curtailed by looking for private sector to fund the infrastructure. The upstream should be decoupled in order to allow other players to be involved.

Apparently expressing his views from the perspective of government, Special Technical Adviser (STA), to the Minister of State for Petroleum Resources, Adegbite Adeniji, explained that one of the key concerns of the Ministry of Petroleum Resources is the issue of security of supply and energy for Nigeria. There are many networks in the system but they are still limited while energy demand is growing.

Adeniji noted that every country is concerned with robustness of supply sources and delivery systems. Nigeria should focus on options available in terms of supply sources. The policy position is to look at other terrain to see what is possible. Nigeria has discovered huge amount of resources in the offshore, but the issue is contractor framework to unlock gas resources to enable optionality.

According to Adeniji, Nigeria should create options across the country. The strategic importance of AKK project should be appreciated which will be of interest to the northern Nigeria. The significance is to industrialize, avoid deforestation and desertification. The population is growing and cheap access to energy sources is a big solution to the northern part of the country which is a key access of the AKK project. The objective is to ensure that the project is delivered in a manner that gives confidence to the upstream that there is a viable anchor project going forward. 

Adeniji emphasized on alternative gas supply to stranded gas markets in the country. Gas supply agreement is utmost because it provides the basis for other mini LNG. To get the gas market going, there is need for options.

Ministry of Petroleum Resources plans to take resources to open a pathway for many entrepreneurs who are looking for gas. Basically, the government wants to create a platform to provide support for investors including the private sector.  

The Panel Session was brought to a close with questions and answers while Obaseki advised that solutions proffered should be utilized to address gray areas in the gas sector in Nigeria.

NLNG TRAIN 7: INCREASING GAS CAPACITY IN NIGERIA

                          Tony Attah, Managing Director, NLNG

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oremost Nigeria’s indigenous gas company, Nigeria Liquefied Natural Gas Limited (NLNG), held a Public Workshop on Nigerian Content to showcase the Train 7 project recently at Abuja. The Public Workshop was attended by the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, relevant regulatory agencies, companies and stakeholders mainly those who provide ancillary services among others.   

Before explaining the Train 7 project to participants, Managing Director of NLNG, Tony Attah, asserted that the founding fathers of NLNG spent thirty years dreaming about a day when the company will be in existence and how Nigeria will focus on gas. “Part of the vision is to ensure that gas is not flared in the country but monetized to bring value to Nigeria, Attah added.” Apparently, the journey took thirty years and the company was incorporated in 1989 with joint partnership among NNPC, SHELL, TOTAL and ENI. He made it known that the four shareholders took a decision to incorporate the company in 1989. Another process was undergone leading to investment decision with Train 1 and 2. From 1999, production commenced leading to twenty years of operation.

Attah pointed out that the vision of NLNG is to be a global player so as to build a better Nigeria. At present, the company has 6 Trains and between 1999 to 2006, NLNG has become the fastest energy growing plant in the world because every eighteenth month, new train was added to the fleet and by 2007, it has 6 Trains.

NLNG did not relent on its effort due to its desire for growth. It continues to watch the market and how it grows while being active in the energy world. NLNG was ranked third in the world with 22 million tons.

In terms of energy transition, Attah said, there is need to change the energy mix and relevance of gas. Gas will definitely change the narrative which will reflect in transportation and power generation since the world needs energy. In 2040, population will increased exponentially across the globe.

The NLNG boss revealed that the cleanest energy today in the world is gas which Nigeria has huge potentials with 192 trillion cubic feet (tcf). This will lead the country to fourth place in terms of gas reserve in the world. Nigeria is producing less of the ratio it has in reserve.

As NLNG looks at the future, it defines the next thirty years at the back of growth increasing its capacity from 22 million tons to 30 million tons which is Train 7.

The NLNG MD told participants that Train 7 has a lot of opportunities that will be available for stakeholders and Nigeria while the gas company continues to build a better country. Attah said before the Nigerian Content Act was passed in 2010, NLNG made deliberate effort to be inclusive by offering opportunities through technology transfer and capacity building for indigenous companies in Nigeria.

Train 7 gives defined structure and clear guidelines on participation in the project which will be aligned in accordance with laid down principles of NCDMB.

Attah told participants in the Workshop that NLNG is serious in terms of private involvement and government intervention. He commended the Federal Government which has supported the company including its supervisory agency, NCDMB. Train 7 is about domestication and building capacity. The project is undergoing engineering design after which the bid process will be done and a winner emerges. Attah disclosed that the project gives room for a balanced process, “Identifies opportunities and we are open for business.”             

  

      

KACHIKWU, WABOTE, INOYO, OTHERS SET FOR 3RD AFRICA OIL & GAS TALENT SUMMIT

              Minster of State for Petroleum Resources, Dr. Ibe Kachikwu

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Engr Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, and Mr. Udom Inoyo, Executive Vice Chairman, ExxonMobil, Nigeria, and several others are set for the 3rd Africa Oil & Gas Talent Summit in Lagos, Nigeria.

Mr. Emmanuel Emielu, Summit Director, AOGS 2018, who disclosed in a statement that the annual Pan African oil and gas event will take place in Lagos from 24-25 October, 2018, at the La 4-Points by Sheraton Hotel, added: "the event will be declared open by Nigeria’s Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu."

He stated: “Dr. Kachikwu will be supported by senior industry leaders, including Wabote and Inoyo, adding that AOGS was created to be the meeting place where Africa’s oil and gas business and Human Resources leaders will share experiences and ideas on how to build and bridge the Human Capital needs of the Industry, and it is coming to Nigeria for the first time, after two successful outings in Ghana in 2015 and 2017.

The 2018 theme is People as the Real Assets: Delivering Innovation and Growth in the “New Normal” of Global Oil & Gas, adding that it underscores the critical role of work teams to deliver the innovation and resilience needed at this time, as the industry faces global uncertainties and chaos.

Speakers from Nigeria, Sierra Leone, Ghana, UAE and Canada are expected to present papers on the various sub-themes, with a Keynote by Funke Amobi, Country Head Human Capital StanbicIBTC Holdings Plc.

Some of the companies to be represented at AOGS2018 will  include, West Africa Pipeline Co Ltd, Ghana, NCDMB, DPR, NNPC, Oando, ExxonMobil, GE, Baker Hughes, Falcon Corporation, Ghana Technology University College, and the Institute of Petroleum Education and Management, Sierra Leone, to mention a few.

He added: “People must be seen as the real asset for charting the road to recovery. Of the three pillars of the industry – technology, finance, and people – it is only people that Africa has strategic control over, given that the other two are externally determined.”

Emielu also quoted Mr. Felix Amieyeofori, Executive Consultant, Operations, Pan Ocean/Newcross Group, as adding that: “This event is first of kind in Nigeria’s oil and gas industry. It is to provide the platform for engaging industry players on the need for investing in Human Capital that will sustain the growth in a competitive business environment. It’s key that very People Oriented Organization associates with this event, if they want to have sustainable business in disruptive environment that is constantly changing and evolving with new ideas. Our focus is Africa, given the teeming young population - the continent is branded as the youngest continent, with ever growing population, yet, extremely poor in all social dimensions.”

“Both China and India have explored and exploited their huge population into becoming global power house - China is the second economy after the US, while India is being forecasted to be third, over taking Japan and Germany, very soon. Why, because they invested in their people, and they are now reaping the dividends.  Our aim is to encourage organizations and countries on the continent to focus on their people and turn their labour force into Human Capital for sustainable growth.”

RELEVANCE OF OIL WILL DIMINISH

-ATTAH

                                                      Tony Attah, Managing Director, NLNG

At a dialogue session during the Nigerian Gas Association 11^th International Conference, Managing Director (MD), Nigeria Liquefied Natural Gas Limited (NLNG), Tony Attah gave an insight about the success story of the gas company. He said it is time for gas to be given its rightful place.

According to Attah, “Nigeria has been riding on oil for over fifty years discounting gas, but now Nigeria needs to fly on the wings of gas for the next fifty years.” He said NLNG runs a global business and wants to be a company that will run a better Nigeria. He noted that the world is changing with seven billion people and by 2040 there will be additional two billion population. In essence, the world needs more energy.

The NLNG MD, disclosed that energy demand will grow by 30% with increase in population, the world needs more energy but the dilemma is that the world does not need energy at all cost. He stated further, “The world needs more but the world needs it only if it is clean.” The population is growing with increase in demand but it has to be clean energy which is energy transition. NLNG focus is more on changing energy mix against the backdrop of climax change. Attah said renewables is now in the mix and market share is being eroded. From the gas point of view renewables will grow faster than it is today. He made it clear that coal which is the “Dirtiest of fossil fuel will take a back seat with sliding relevance of oil.” Transportation across board will diminish the relevance of oil at 50% including power generation by 2050.

Attah was of the view that Nigeria is a mono economy that is riding on the back of oil. On the contrary, gas will grow by 40% giving hope to the gas industry. NLNG has 6 Trains with 22 million tons and its ambition is to grow by additional 35% capacity to 30 million tons. He said Qatar is ahead of Nigeria with 77 million tons while NLNG is willing to add 30 million tons to the country. Surprisingly, looking at the relativity, Nigeria has gas in abundance with 192 trillion cubic feet (tcf) including additional 600 scope and this will move the country from its current 10^th to 4^th position. Thus, “It is not about what you have, but about what you do with it.”

The NLNG boss asserted that Nigeria has 11 tcf reserve but Trinidad and Tobago has 16 million capacity ton LNG plant. Attah added that Nigeria with 192 tcf and additional 600 means there is a lot of opportunities for the West African country.

He posited that NLNG is preparing for Train 7 project with Final Investment Decision (FID) to move it forward in the interest of Nigeria and its LNG. The project will address poverty and unemployment issues in the Niger Delta, “If you provide employment, you have actually eliminated one of the menaces including an enabling environment to do business.”

The NLNG MD told participants at the Panel Session that the gas company has delivered more than $100 billion in revenue with $15 billion dividends to government and more than $6.5 billion in taxes. He advised that with many energy plants in the country, the resultant effect in terms of dividends will be enormous.

Attah noted that the focus should be on domestic gas if the country is to progress in industrialization journey and trajectory. Nigeria needs to raise her game by not focusing on gas for export but be concerned about gas for overall development. This will lend credence to what should be done with the gas rather than what it has as reserve. According to Attah, deliberate efforts should be made in terms of execution, “Gas to power is instructive, gas to petrochemical is instructive and gas to fertilizer is instructive.” Energy to the country is crucial with its huge gas reserves, power should not be an issue.

The NLNG MD advocated that the gas sector in Nigeria has to be strategically repositioned with ‘stand alone’ policy that will be focused while the narrative should be changed to ‘gas and oil’ instead of oil and gas. Nigeria globally is recognized more as a gas province than oil. The country needs to create an enabling environment to unleash the potentials of its gas resources.

ABORTED NATIONWIDE STRIKE: BARU COMMENDS NUPENG, PENGASSAN

L-R; Comrade Olabode Johnson, President PENGASSAN, Prince Williams Akporeha, President NUPENG, Dr. Maikanti Baru, Group Managing Director NNPC, Comrade Odudu Udofia, outgone Group Chairman, NNPC NUPENG Group Executive Council at the 2018 Quadrennial Delegates’ Conference in Abuja.   

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he Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), has commended the leaderships of the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) for their roles in the prompt resolution of the recently averted planed industrial action.

The NNPC GMD made this disclosure at the 4th Quadrennial Delegates’ Conference of the National Union of Petroleum and Natural Gas Workers (NUPENG), NNPC Group Executive Council in Abuja. 

Dr. Baru pointed out that both unions have demonstrated uncommon commitment to the vision of the NNPC Management in ensuring steady and uninterrupted supply of petroleum products across the country.  

The NNPC boss said, ‘’I wish to register my appreciation to the present Executives of NUPENG. Together with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), you have collectively created an atmosphere of industrial harmony in NNPC and by extension, the entire Oil and Gas industry. You have shown great understanding at the critical moments in the course of our operations. I thank you for the cordial relationship that has defined our association.”

Speaking on the topic: “NNPC NUPENG Branch: Redefining the Trajectory of Trade Unionism,” Baru expressed satisfaction that unionism at the NNPC has moved away from confrontation, strikes and threats of industrial actions to pragmatic consultations.

He commended the foresight of the union leaders on the choice of the conference theme, “Living with Change – PIGB and the Aftermath for the Oil and Gas Sector Workers”, stressing that early agreement by the relevant arms of government on Petroleum Industry Bill (PIB) would impact greatly on the activities of the Oil and Gas Sector.

The NNPC GMD praised the oil workers for their courage to embrace change, a phenomenon which he described as a difficult endeavour for a leader to undertake.

Earlier in his speech, the NUPENG National President, Prince Williams Akporeha said the union had embarked on a number of reforms geared towards rebranding itself for efficiency.

He explained further that “In the last six months of our coming into leadership position, the new leadership has continued to embark on series of rebranding exercises to positively project the union through reforms and various policy frameworks with purposeful intention of making the union vibrant, effective and efficient.”

Speaking at the occasion, the newly elected NNPC Group Chairman, Comrade Idache David Paul, in his acceptance speech appreciated the NNPC’s management for the support so far and promised to build on the achievements of his predecessors.

SUSTAINING COMMUNITY RELATIONS IN OIL AND GAS INSTITUTIONS

            Victor Eremosele, Chambers Oyibo and a guest at CPI Forum

Young people face unique challenges and are especially vulnerable in uncertain environments. Limited access to resources, education, training, employment and a lack of economic opportunities constrain their prospects, and in some cases may push them to resort to violence like the Niger Delta Avengers.

Community Relations is thus to create a better understanding of the need to promote a democratic and equitable international order. Applying the principles of transparency, participation and accountability in order to strengthen their contributions to democratic governance and human rights. Community Relations with respect to Oil and Gas is an effort to promote good practices that demonstrate effective private-public partnership, the enforcement of labour rights and environmental protection, as well as the commitment of businesses to non-discrimination and other steps that respect human rights thus making Oil and Gas institutions more responsive. Community Relations in Oil and Gas in support of UN vision of new world order based on rights, social justice and equitable development. The believe that a new world order based on universal respect of human rights social justice, rule of law and equitable development is possible. It is to examine how Oil and Gas businesses pay due attention to the issues affecting the community and how to make such institutions more responsive and inclusive for sustainable development.

Environmental and social performance had indeed been problematic and, what is needed is a period of reflection and dialogue between the industry, the community and its critics. Environmental issues are the most common issues precipitating conflict, but behind these, socio-economic issues, and unmet expectations about consolation and consent, play an important role in shaping the broader Oil and Gas-community relationship.

COST OF CONFLICT WITH LOCAL COMMUNITIES AND LACK OF GOOD COMMUNITY RELATIONS

The greatest costs of conflict were identified as the opportunity costs arising from the inability to pursue projects and or opportunities for expansions for sale. It has led to suspensions of projects running into billions at times for investors.

There are many contextual reasons as to why the Oil and Gas industry has become subject to major local level resistance to its projects. Communities are now far more connected than they have ever been before. Communication technologies are driving advances in global democracy. Campaigns or agitations on one side of the world are now easily visible to people on the other.

However, the performance and the response of the industry is also a major factor. Many communities are not necessarily opposed to Oil and Gas per se, they sometimes would just like to assert a more equal platform for development to occur on their own terms. The practice of Community Relations has in so many instances been patchy and ad hoc, but there is actually a way of doing this work properly. Management often turn to Community Relations staff for advice during the heat of conflicts. This has been termed as post-crises recognition regression.

Many companies have not chosen the path of greater dialogue with their critics. Instead they have chosen the public relations and communications path and attempted to convince communities of the benefits of Oil and Gas. Many have also increased the level of direct social investment in local communities as a means to win support. It is true that social investments are also undertaken because of development demands of local communities and governments, and due to the lack of government investment in services and infrastructure in many of the regions where many companies operate. But when searched into the specific activities that are supported by this investment it will be seen that much of the spending is uncoordinated and is not strategic, even from a business risk perspective.

It is discovered that the majority of social investments were not even in areas that were identified as a risk to the Oil and Gas project from a corporate perspective, let alone development priorities of the community. Only a minority of these investments were undertaken in areas defined as high risk by the company. Where social investments are made, there is much potential to better align and coordinate activities to meet human development and corporate objectives.

The greatest threat to success of Oil and Gas industry in the next five years could be from highest expectations from communities. This has been considered as greatest future threat.

However, the industry is coming to fully realize the power of local communities, at an important juncture in the global Oil and Gas sector. Some companies are shedding jobs, they are also signaling that the role of community relations professionals as a form of asset protection has yet to be fully understood or embedded within the corporate consciousness.

OBJECTIVES OF SUSTAINABLE DEVELOPMENT AND WAYS TO ACHIEVE WELFARE

The aim of sustainable development is to balance economic, environmental and social needs, allowing prosperity for future generations. These include social progress and equality, environmental protection, conservation of natural resources and stable economic growth. 2015-2030: a world landscape of poverty and inequalities, with a new agenda first and foremost, it is important to realize that the international social, geopolitical and economic context has changed dramatically in fifteen years.

New emerging countries are becoming increasingly present in the world economy and their investments have increased exponentially. Social cohesion is at the centre of these issues. Governance can no longer be synonymous with domination, social needs must be met in order to prevent risks of conflict. Given the extraordinary scale of worldwide inequalities, the planet is suffering from a combination of widespread poverty and serious pressure. 

Consequently, inclusive and sustainable development, which combines environmental, social and economic issues seems to be the only solution.

It is the commitment made by the 193 member states of the United Nations in New York on 26 and 27 September, 2014. Taking over from the Millennium Development Goals (MDGs), the 17 Sustainable Development Objectives (SDGs) define the priorities for the next fifteen years. Between now and 2030, the world should, “Put an end to the ancient scourges of extreme poverty and hunger rather than contribution to the deteriorating of our planet and allowing intolerable inequalities to create resentment and generate desperation.” Without sufficient financial commitment and without criteria to adopt real solutions that will enable sustainable development and a transformative agenda, the SDGs will not be reached.

The SDGs cover a large spectrum of areas and should, if they are reached, bring closer to an ideal world, without inequalities or discrimination and based on a sustainable system.

NNPC/SNEPCO CRADLE-TO-CAREER SCHOLARSHIP BENEFICIARIES HIT 375

            A beneficiary of the NNPC/SNECo Scholarship award

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nother 108 Nigerians have been awarded full secondary education scholarship under the NNPC/SNEPCo National Cradle-to-Career (NC2C) Scholarship scheme launched in 2014, bringing the total number of beneficiaries in the last four years to 375.

The scholarship, administered by Shell Nigeria Exploration and Production Company (SNEPCo), offers full boarding and tuition-free support to the beneficiaries throughout their education in top-rated private secondary schools across Nigeria.

The Managing Director of SNEPCo, Bayo Ojulari, made it known at the award ceremony held recently at Grundtvig International Secondary School in Onitsha, Anambra State, that,  “This is part of our wider social investment programmes to support Nigerian youths, particularly the less-privileged, to attain the height of their potential notwithstanding their socio-economic background.”

Ojulari who was represented by the company’s Bonga Asset Operations Manager, Elohor Aiboni, said SNEPCo, with the support of the NNPC and its co-venture partners was committed to providing opportunities for Nigerian youths not just in education but also in entrepreneurial training and empowerment as demonstrated by SNEPCo’s other social investment programmes across the country.

In his remarks at the award ceremony, Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Rowland Ewubare described NNPC as a firm believer in human capital development in Nigeria, noting that the NC2C initiative was a right investment in the present and future of Nigeria. He was represented by NAPIMS’ Community Development Supervisor, Tolulope Derin-Adefuwa, Ewubare charged the beneficiaries to make the best use of the scholarship privilege for their better tomorrow.

The scholars, selected from across the 36 states and the Federal Capital Territory, expressed their gratitude to SNEPCo and the NNPC for the opportunity to study in top secondary schools and the financial relief given to their parents through the scholarship programme. Acknowledging the task ahead, one of the beneficiaries said, “Getting to the top is the easy part, staying at the top is the hard work”. They promised to make the most of the scholarship and be worthy ambassadors of the programme.

The NC2C scholars are enrolled in Premiere Academy, Abuja; Nigerian Tulip International College, Kaduna; LeadForte Gate International Secondary School, Lagos; Top Faith International School, Uyo; Edgewood College, Lagos; Saint Francis Catholic Secondary School, Lagos; and Grundtvig International Secondary School, Onitsha.

SAUDI TO SUPPLY EXTRA OIL CARGOES TO INDIA

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orld’s biggest oil exporter and number one in terms oil production, Saudi Arabia, will supply Indian buyers with an additional four million barrels of crude oil in November. This has been revealed by several sources.

The extra cargoes indicate a willingness by Saudi Arabia to increase crude supply to make up the shortfall once sanctions by the United States on oil exports from Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), start up on Nov. 4.

The Asian country, India, is Iran’s top oil client after China. Several refiners have also indicated they will stop taking Iranian barrels should the sanctions take effect.

State-owned oil producer Saudi Aramco, partially maintained a sealed lip over the issue when sought for to clarify the issue.

Given their dependence on Iranian oil supplies, the Indian refiners are concerned about the loss of Iranian crude once the sanctions start and are seeking exemptions. Refiners in the country have placed orders to buy 9 million barrels from Iran in November.

One of the reasons for the additional demand for Saudi oil is that the crude arbitrage from the United States is shut so the Indian buyers have to turn to Middle Eastern barrels.

India, the world’s third biggest oil importer, is grappling with a combination of rising oil prices and falling local currency, which makes imports of dollar-denominated oil more expensive.

Retail prices for gasoline and diesel fuel in India are at record highs and the government has cut its excise tax on fuel to ease some of the pain for consumers.

Indian Oil Minister, Dharmendra Pradhan spoke with Saudi Energy Minister Khalid al-Falih to remind him that OPEC and other major oil producers had promised to raise their output at a meeting in June. India imports an average of 25 million barrels per month from Saudi Arabia.

It was gathered that Russia and Saudi Arabia, the world’s two biggest oil producers, struck a private deal in September to raise output to cool rising prices and had informed the United States about the decision.

   GOWON, ABDULSALAMI APPLAUD NNPC AS ENUGU EMERGES CHAMPION

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ncomiums and wide-acclaim came the way of the Nigerian National Petroleum Corporation (NNPC) as the curtains fell on the 16th edition of the NNPC National Science Quiz Competition with Enugu State representative, Master Okeke Tony Kabilan, carting away the coveted prize.

The grand finale of the quiz competition, which is the Corporation’s most significant Corporate Social Responsibility (CSR) initiative, was graced by two former Heads of State, Gen. Yakubu Gowon (Retd.) and Gen. Abdulsalami Abubakar (Retd.), who applauded the Corporation for fostering educational development and national unity through the competition.

After a round-robin question and answer session featuring 18 participating state finalists drawn from each of the six geo-political zones, the Enugu State champion finished tops with 75 points while Ogun State representative, Master Igban Emmanuel, clinched the second position by whiskers with 65 points after winning a pulsating tie break with Master Alikah Joseph Ehiagwina of Edo State.

Gen. Gowon, who was chairman of the occasion, commended the Corporation for organizing a shining example of CSR initiative which, according to him, had witnessed massive innovations and improvement through the years.    

The former Head of State applauded the Corporation for increasing the scholarship sum from N100, 000 to N300, 000, stressing that the move was a soothing balm for the winners in the face of rising cost of quality education.

He also thanked the management of NNPC for the introduction of N100,000 educational grant to all winners at the state level.

Special Guest of Honour, Gen. Abubakar, in his remarks commended the Corporation for its unflinching commitment to the growth and sustenance of qualitative indigenous manpower across all tiers of the hydrocarbon value chain.

Gen. Abubakar said NNPC’s record in championing the Nigerian content initiative in the oil and gas industry was a noble and patriotic step, noting that the essential philosophy behind the National Science Quiz Competition was to ensure that the production line of highly skilled labour remained intact and prolific.

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in his address expressed satisfaction with the NNPC Management for sustaining the annual national science quiz contest and urged the NNPC to consider extending same gesture to students in the arts and social sciences.  

Chief host of the event and Group Managing Director of the NNPC, Dr. Maikanti Baru, said NNPC Management would continue to build on the landmark achievements of the competition in the years ahead.

Dr. Baru pledged that the Corporation would ensure the test administration met international standards given the existing collaboration already established with the West African Examinations Council (WAEC), the Junior Engineering Technical Society (JETS) as well as the Science Teachers’ Association of Nigeria (STAN), which were rubbing off positively on the status of the initiative.

He noted that quiz competition has proved to be a huge success with many of the past winners doing very well in their chosen careers across three continents of the globe.

“From the survey we carried out, we discovered that over 90% of our past quiz winners are doctors and engineers. We traveled to about three continents of the world to locate what we describe as NNPC Science Quiz Competition Laureates in their various fields of endeavor. Some are at Harvard and other Ivy League Universities as research fellows”, Dr. Baru stated.

The NNPC Quiz Competition was inaugurated in 2000 and limited to participants from the Niger Delta but went national in 2001.

Designed mainly for students in the nation’s secondary schools, the competition has impacted positively on the intellectual attainment of young Nigerians. It has provided financial succour to successful contestants who have been placed on scholarship throughout their university education. Many of the awardees had moved on to achieve academic laurels in tertiary institutions, locally and internationally.

The competition was set up to promote science education in the country; encourage students in the study of Science and Technology related subjects; prepare students for promotional and qualifying examinations; build friendship amongst the participating students; and develop students’ competitive spirit, among others.

                    TCN SEEKS REGULATION TO PROTECT DISCOS

                                   TCN MD, Mohammed Usman

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ransmission Company of Nigeria (TCN) has advocated for a regulation by the country’s power regulatory body, Nigerian Electricity Regulatory Commission (NERC) to protect its transformers in the event of any damage caused by Electricity Distribution Companies (DisCos).

The company’s Managing Director, Mr. Mohammed Usman, made this call recently in an interview with journalists showing concern about the situation.

The TCN boss made it known that the inability of the DisCos to invest in their distribution infrastructure had resulted in the use of some of TCN’s transformers by DisCos to supply electricity. This has sometimes resulted in the breakdown of the transformers after use.

Mohammed asserted that “Under the grid code, everybody has their responsibility; we have our responsibility; and distribution companies have their responsibility. And where they fail to invest, it is not our problem that they fail to invest, but their lack of investment is affecting our system when we are connected to them. And that is why I am telling NERC that we are writing a petition that those areas where they are taking supply directly from our transformers because they have failed to build their own injection sub-station.”

He stated further, “We are going to ask NERC to put it as a rule to say that if our transformers get spoilt because of the DisCos’ failure to invest, they are going to compensate us. Because if they connect directly from our station without passing through their injection station; if there is a fault on their line, it will hit our transformers directly. Sometimes, they will come and say the fault has been cleared and TCN will restore supply, while they did not truly clear the fault and then that will scatter our transformer. We are saying, if such thing happens, we are going to write a petition asking NERC to do a regulation that will protect us.’’

Mohammed added that given the presence of several uncompleted transmission projects by some contractors in the past, TCN management was taking over the expired contracts.

According to him, these contracts have expired and most of the contracts are contracts for supply and installation of 330Kv sub-station and they are supposed to last for 18 months.

He said the sub-station in Damaturu was awarded in 2006, it is about 12 years and the contract has expired.

“The problem TCN had in the past was that it awarded contracts to incompetent companies, but under current TCN management we have changed the way we do contract now. Most of our major contracts now, we have to do pre-qualification, you have to be qualified first before you can even tender, so this kind of problem that we had will not continue. But some of the contractors that are not very difficult; we will work with them to complete the job.”

Mohammed revealed that if the contractor is like the one of Damaturu sub-station, TCN will have no choice than to exercise its right under the contract. The transmission company in its capacity is handling many contracts.

Mohammed said the company had attracted significant amount of investments, adding that international donors were willing to provide more funding to executive more transmission projects.

This, he attributed to series of audits reports conducted by the current management of the company to ensure that transmission is not an issue in Nigeria.

                   ATIKU PICKS PETER OBI AS RUNNING MATE

                                                   Peter Obi and Abubakar Atiku

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he battle for 2019 has begun as Peoples Democratic Party’s presidential candidate, Atiku Abubakar, on Friday picked former governor of Anambra State, Peter Obi, as his running mate. It has been speculated that Obi might likely be Atiku’s running mate owing to the duo several meetings at different fora.