THE NGA AWARDS NIGHT

     L-R; Engr. Simbi Wabote, Audrey Joe-Ezigbo, Dr. Maikanti Baru and Dada Thomas

Nigerian Gas Association (NGA), had its 11th International Conference and Exhibition recently in Abuja. The biannual conference brought together juggernauts in the gas sector including other countries that have made progress in gas production with significant reserves. 

After various sessions where challenges were highlighted and solutions proffered, NGA had its Gala Night that was co-sponsored by the Nigerian National Petroleum Corporation (NNPC), Shell companies in Nigeria and a leading indigenous company, Aiteo.  

Eminent professionals who have distinguished themselves in services they provide for the gas industry were honoured and celebrated. Awards were given to serving and corporate members for their outstanding support to the association.

In his remarks, Dada Thomas made it known that the objective of 11th NGA Gala Night is for members to relax after the technical sessions and other discussions pertaining to the gas industry. Dada projected a bright future for the association with a bigger event going forward.

He thanked members and corporate sponsors of the event for their support in ensuring that the association had an occasion that brought members together.  

Speaking as one of the sponsors, Group Managing Director (GMD) of Aiteo, Chike Onyejekwe, said, it is a pleasure for the company to associate itself with NGA. He revealed that Aiteo is a conglomerate which operates in the downstream, upstream, power and agricultural sectors, “So, you could see a whole value chain of business within Aiteo.”

Onyejekwe recalled his younger days in the oil industry as a Geologist whereby he discovered hydrocarbon and he and his colleagues were celebrating the discovery, but when it was production-tested, it was gas. The Aiteo boss said it was like a failure, “Why are you celebrating something that will not add value but today, that discovery is powering one of the biggest plants in this country.” Aiteo being an independent at present in Nigeria, has an asset that will play big not only in the oil sector, but gas which is becoming the future. As a major supporter of various related industry associations in Nigeria, the company will add significant value by making sure they are sustained. Onyejekwe pointed out clearly that “Aiteo is proud to be a part sponsor of NGA.”

On his part, Managing Director, Shell Nigeria Gas, Ed Ubong, said, Shell companies in Nigeria believed that NGA is a premier platform for gas advocacy in-country. Shell has contributed its quota to “Further the gas story.” Ubong believes that gas has a place in Nigeria’s oil land scape and the country has come a long way when it only had NLNG and presently it is pushing for big domestic gas project. He revealed that Shell is working on a gas project in Asa north which will be a big changer when it comes on stream in the domestic gas market.

Special awards were given to corporate members in recognition of their roles in Nigerian gas industry. Lead Way Assurance Company Limited, Greenvile NLNG and West African Gas Pipeline (WAPCO) were awarded. WAPCO was recognized for its role in integrating West African countries along the west coast. Other recognition awards were given to ACCUGAS, Falcon Corporation, Chevron Nigeria Limited, Total, Axxela, Aiteo group, Shell Companies in Nigeria, NLNG and NNPC.

Awards were also given to NGA Executive members including gas industry award which was received by Managing Director, NLNG Limited, Tony Attah. The NGA leadership award went to Chief Executive Officer, Axxela Limited, Bolaji Osunsanya. Osunsanya has over thirty years of executive management experience including management consultant, finance, commercial banking and oil and gas. He has supervised and initiated many projects on gas.

Engineer Simbi Wabote, Executive Secretary of the Nigerian Content Development Monitoring Board (NCDMB) was given NGA industry award. The NCDMB boss was a former Director in Shell, whose career spanned over twenty-five years and served in various senior executive positions. He developed local content strategy in Shell including its implementation in several countries.

The NGA gas person of the year award went to the Group Managing Director (GMD) of NNPC, Maikanti Baru. The GMD of NNPC has held various senior executive positions within the corporations with many awards to his credit.

Responding on behalf of other awardees, Baru said with commitment and interest the corporation will harness the huge potentials of Nigeria gas resources for the benefit of Nigerians. The GMD commended the association for the gas person of the year award of which he was the first beneficiary.

Baru made it clear that gas at present is given prominence over oil as a cleaner energy source for the world. The shared vision coincided with the first agenda of gas exporting Forum which is to exploit and produce gas as a cleaner energy source for the benefits of member countries.

The GMD stated further that when the vision is implemented, “It can unlock the prosperity of the member countries.” The potentials for gas in economic growth and GDP is never in doubt as gas is a catalyst for industrialization and energy sufficiency. It is equally an exciting time to visualize the future potentials of gas especially with the new marriage between gas and electric vehicles revolution.

Baru noted that NNPC saw vision concerning future of gas which made the corporation in 1999, spearheaded the formation of NGA as a veritable platform to promote use of gas in Nigeria. After its creation, the GMD added that “NNPC has always been at the forefront in affairs of the association through financial, moral and purposeful leadership support.”

According to the NNPC helmsman, the award is deserving while he thanked NGA and its leadership at all levels. He said an award represents three things, which are: marks of appreciation for the awardee, an encouragement to work harder and it makes others to aspire in order to get same or better recognition. He assured NGA of NNPC continued commitment to do more at individual and corporate levels. The GMD enjoined other gas companies in Nigeria involving in gas activities to step up to assist the association because, “United we stand, divided we fall.”

Tributes and encomiums were poured on Engineer Yemi Akinlawon who passed away recently. Akinlawon was a foundation and pioneer member of NGA. He had more than thirty years experience in the oil and gas industry. Before his death, he was an active member of the association and served in various executive capacities. A former Chevron staff, Akinlawon displayed uncommon discipline and tenacity during his tenure as Secretary General of NGA. He ensured meetings were held properly, promptly breaking all odds to provide venues for meetings of the association as it had no secretariat at that time. He was also involved in training, conferences and exhibitions organized by the gas association. Akinlawon was industrious, humbled and forthright in all his undertakings with the association. He contributed immensely to the growth of NGA.

At the Gala Night, new executive saddled with responsibility to run the association was inaugurated. It also witnessed for the first time in the history of NGA, a woman president. Audrey Joe-Ezigbo, Vice Chairman of Falcon Corporation, a renowned gas company is the president of NGA.

Audrey extolled the exemplary leadership of her predecessor, Dada Thomas. She said the NGA embarked on revitalization drive to position itself as an authentic voice in the industry. The association has consistently driven the agenda over last four years through an advocacy with government and private sector. For the first time, NGA has represented the country has a voice to be reckoned at the International Gas Union (IGU), putting Nigeria into the global space on discourse for gas. 

Audrey told members that there are much work to be done and with the array of council members, they will continue to drive advocacy with enhanced policy and legislations to make it possible by bringing needed investments that will transform the country. The new NGA president also known as Mrs. Gas said, “Gas is an enabler and gas is what is going to take us out of conundrum that we face as a nation.” She said Nigeria needs to take cue from other countries such as Ghana, Trinidad and Tobago among others that have improve the gas sector through friendly policies.

The new president of NGA stated further that the association and its executives will not relent on its efforts hence to succeed it needs government, policy makers and legislators including participants in the gas value chain. She enjoined members to support the association through every viable means to move it forward.

Audrey submitted that NGA has a robust continuity plan with six years presidential term which will help it to strategize and toe the line of progress in future.

It is believed that with new set of executive that will run the gas association for next two years, NGA will attain its planned objectives.

TOTAL PLC: INNOVATIVE IDEAS OF A DOWNSTREAM GIANT

                                  Mrs. Adesua Adewole, GM, Sales and Marketing

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otal Nigeria Plc is the marketing and services subsidiary of Total, one of the surviving companies in Nigeria’s downstream industry. For over sixty years, the company has been a leader in the downstream of Nigerian oil and gas sector with thriving distribution networks across the country.   

At the 12^th Oil Trading and Logistics Expo, Africa Downstream Week, which was held in Lagos, General Manager, Sales and Marketing, Total Plc, Mrs. Adesua Adewole spoke on the company’s successes with various innovations in place.

Adewole explained that Total Plc customers over time have evolved and “When you look at the age bracket, the technology is rife and the seller should be abreast with what individuals want at your fuel station.” Total looks at the value proposition, strategic options as being new, fresh with the current environment and constantly evolving. It has enhanced its brands making them more comfortable for its customers to view and know them better.

Adewole made it known that Total Plc has over 500 stations across Nigeria. The company has developed stations that are new with aesthetic marched with colours that are attractive to customers. The company has about 50 stations that have solar panels generating energy to power them. Looking at the options being showcased to customers, Total Plc wants it to be appealing to them with offer of services. There are services such as lube bay and jet wash. These are innovative fast options to address needs of customers.

Adewole noted that Total shops are attractive, in the cafes, there are coffee shops. The company also partners with other ventures that can give top shots values for customers to meet all their wants.

As part of its innovation, the company has also partnered with Chicken Republic and KFC in some of its outlets. Adewole stated thus, “In the aspect of automation, Total Plc ensures that the customers get the right quality to the right quantity and to do that we have to measure it efficiently.” System information with technology has been deployed with remote to see what goes on in each station. In some Total stations, there are cam cards and camera that customers can use to make report instead of waiting for days in order to get feedback to address issues. The mobile system helps the company to monitor sales on daily basis as well.

The General Manager stated that Total Plc pride itself with app which allows it to get customers’ feedback, an initiative to meet their needs no matter where they are in the country.

According to Adewole, for over fifteen years, the company has embarked on cash less policy through the use of Total Card. It has been used to enhance what is being offered to the public and the card can be accessed online through the mobile phone devise without going to any of the stations. This process gives a customer opportunity to see what is being consumed including ownership and full control of all petroleum consumptions. Apart from fuel, the card also allows access to jet wash, lube bay and other services provided by the downstream company.

In terms of branding, she said “The concept is very straightforward, ensuring that we are having seamless and the same thing running through stations by having the same experience, in terms of automation, we are going into technology to ensure that we are improving the quality of what we are offering to the customers, but also how we are operating the systems that we are putting in place for controls in the stations.”

It is hoped that these innovative ideas will be sustained by the only multinational oil trading company which has remained undaunted in spite of challenges in Nigeria’s downstream industry.   

DPR LAUNCHES VMB, FISCAL PAYMENT SYSTEM, NOGIAR, FOR NIGERIAN OIL INDUSTRY

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pparently showcasing its new policy framework for the oil industry, the Department of Petroleum Resources (DPR), saddled with responsibility to regulate the oil industry, had a Strategic Stakeholders’ Engagement Meeting with oil and gas industry operators.

Representing the Director of DPR, Modecai Dante Baba Ladan, Deputy Director, Pat Maseli, disclosed that Value Monitoring and Benchmarking (VMB), a digital networking system is being unraveled to develop asset management which will not impede progress and development in the industry.

Maseli stated further “Our resolve was to provide a robust digital platform that has the capacity to securely accommodate the enormous asset development of the government and operational data for cost, reserves, technical monthly production by the upstream among others. These have been in system including Application, Programming and Interface (API) for a seamless of this data by the operating companies and other stakeholders.

According to Maseli, the platform is standardized and it is ISO 19 008 certified by 2016 standard course coded system and consistently chat of account for meeting global relevance. Notable among the success is the level of engagement and interactions with key industry stakeholders including sister agencies like NNPC, NAPIMS, FIRS, NEITI including operating companies.

The DPR Director expressed concern on the notion that the regulator is only involved in technical issues in work program and presentations while details on cost information are relegated. This has led to lack of detailed information on cost of project and operations to the Department.

In addition, DPR is enabled to effect reforms in the oil industry by provisions of Petroleum Act.

Maseli explained that the highlight of the Forum was to present the VMB digital platform to industry stakeholders and solicits their support. Although there are some challenges, the Department has put some measures to ensure that companies are timely and adequately attended to when needed. DPR will further engage operators by company to company basis to provide adequate attention to each company to ensure they register on the platform.

Besides, companies will provide detailed information including a contact person for registration in order to interface with DPR. Companies are also expected to upload their budget and cost data including yearly reserve and monthly technical production data by well stream on the platform from 2010 as the base year.

She noted that VMB digital platform is of immense benefit not just for DPR, but various operators.

In a similar development, Folasade Odunuga, an executive of DPR, explained that after companies submitted their data to DPR, a pilot project was launched into the oil industry. She disclosed that VMB was initiated after an interactive and stakeholder meeting in Lagos. She said the tool is a regulatory framework to scale up best regulatory functions, track, optimize and benchmark cost with performance. Hence, the tool will transparently standardized the industry to stimulate competiveness for sustaining growth, development and maximized value.

She posited that the tool will not only maximize government take but that of the company as well, “Because if you have a very reliable comparative cost, the tool within your terrain of operation, you will always know whether your price or cost are above board or they are within limit.” DPR is a technical regulator and part of its mandate is to deliver the take of Federal Government of Nigeria. The regulatory agency derives its power in carrying out its assignment from the amended 1969 Petroleum Act. She pointed out that the VMB tool will enable the unit technical cost not only for DPR to be on top of the situation and know it in terms of regulation, but to be a transparent measure that stakeholders can attest since Unit technical cost of companies differs.

The objectives of the tool is to promote transparency, viability through cost evaluation and benchmarking of asset development with operations of data. The tool will access and benchmark fiscal terms impact on asset development, operations as a guide for making decision for future development. It will stimulate industry competitiveness and investment through analysis and evaluation for producing and non-producing asset for viability and network purposes.

It also determines investment and underscores common cost implication. VMB will optimize value creation and addition to the economy, it gives investment confidence and profitability. Everything pertaining to the industry will be known to all stakeholders.

The requirements of VMB tools for operators include: cost data, oil and gas reserve, oil and gas technical production and five to ten years strategic work plan. These will enable the tool to work effectively.

Odunuga also emphasized on Fiscal Price Administration System (FisPAS), which is a tool that is designed to manage and administer product royalty, gas sales royalty, gas flare royalty and concession rental. FisPas will be used for asset re-assignment, fiscal revenue due to the federation. DPR can monitor and administer the process effectively. It will be used to know the exact due for the Federal Government which is opened to third party as well.

The system will be used to submit data, make payment and interact with the regulator timely. FisPas will allow oil companies to submit payment conveniently without bothering to send data to DPR, “It is a dynamic tool that is required to put fiscal regime in a very transparent and accountable manner.”

She appealed to stakeholders to support the two tools that have been introduced by DPR to the oil industry. It will assist the regulatory agency and makes its job easy, transparent and accountable to the Federal Government.

Odunuga also unveiled DPR’s record book known as Nigerian Oil and Gas Industry Annual Report (NOGAIR) to oil industry operators. NOGAIR is usually distributed to operators and stakeholders in the oil industry, but at present, it is in DPR’s website making it easy to access. She said “NOGAIR will enhance transparency through the provision of accurate and reliable statistics on the performance of Nigerian oil and gas industry.” It will help end users to appreciate Nigeria’s oil and gas industry in the changing technology of global oil and gas industry. It contains critical information to the public on the activities of the industry in the year under review including other years that will be updated going forward. NOGAIR will enable stakeholders to make business decisions, project into business opportunities based on accurate data and enhance ease of doing business in the country.  

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.