NOGintelligence Issue 29, 07 December 2012                                                                              
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In This Issue
ExxonMobil Lifts Qua Iboe Crude Force Majeure
Marginal Fields Licensing Round: Expectations Shift to Next Year
Nigeria Targets Production of 2.5 million bpd in 2013
OPEC daily basket price stood at $106.01 Thursday, 13 December
Excess Crude Account stands at $9.66 billion
Heritage Plans for Financing Purchase of Shell's OML 30
Diezani Still Open To Discussions With Oil Companies on PIB
Ijaw Youths Disrupt Chevron's Gas Project
Total Signs Partnership Agreements with Rivers Communities
Shell Completes Distribution of Relief Materials to Flood Victims
Invitations to Tender and Jobs
Events
INTERVIEW   
  Dr Ayodeji Oluokun, MD of Peak Petroleum will be interviewed in our next issue, Issue 31. He will be responding to our news story on Peak Petroleum in last week's issue. 
Don't miss it.

Remi AIyela, Editor, NOGintelligence
Remi Aiyela
Editor-in-Chief
 

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UPSTREAM NEWS

ExxonMobil Lifts Qua Iboe Crude Force Majeure

Nigeria's crude oil export has experienced a boost as United States oil giant, ExxonMobil Corporation announced that it has lifted its force majeure on Qua Iboe crude exports, following the completion of the clean-up of oil spill in Ibeno area of Akwa Ibom State.

 

The country's crude oil export had suffered a major setback when Mobil Producing Nigeria (MPN), a subsidiary of ExxonMobil Corporation declared the force majeure. The declaration of force majeure frees a company from contractual and legal obligations to its customers due to circumstances beyond its control, especially natural disasters and accidents.

 

The exports of Qua Iboe grade of crude oil was stopped on November 20, following the November 9 pipeline leak from the company's offshore facility in the southern Akwa Ibom State.

 

The leak spilled crude into the sea and the facility was shut a day after the incident. With this unfortunate development, Mobil said it could no longer meet its contractual and legal obligations to crude oil buyers due to the oil spill in Qua Iboe oil field. Mobil is the operator at the Qua Iboe oil terminal where the November 9 oil spill discharged heavy volumes of oil into the ocean.  The company's General Manager, Public and Government Relation, Mr. Paul Arinze said in a recent statement from Eket that the force majeure had been lifted.

 

"Mobil Producing Nigeria, operator of the Nigerian National Petroleum Corporation, (NNPC)/MPN Joint Venture confirms that it has lifted the Force Majeure it declared on November, 20. We express gratitude to all customers, purchasers and Joint Venture partner, the NNPC for their understanding during the production outage," he said.

 

The oil firm had deployed over 600 personnel for the ongoing clean up of the crude deposits along the Atlantic coastline in Ibeno.

 

MPN had in a statement confirmed that an oil spill caused by a ruptured pipeline at its oil facility off Akwa Ibom and discharged some 200 barrels of crude into the Atlantic Ocean.  It will be recalled that force majeure on Shell Plc's Forcados grade was lifted on November 29.  A similar halt by Total on gas shipments to Nigeria Liquefied Natural Gas (NLNG) plant in Bonny Island of Rivers State was also lifted on the same day.  Consequently, normal production resumed from Total's onshore block, Oil Mining Lease (OML) 58 that pumps 90,000 barrels of crude oil per day.

 

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Marginal Fields Licensing Round: Expectations Shift to Next Year

A week after saying that the marginal fields licensing round is expected to hold before the end of the year, the Minister of Petroleum, Diezani Alison Madueke has now shifted expectations to next year. She said in Vienna that she is hoping to hold the licensing round early next year.

 

Analysts were roundly sceptical of the chances of holding it this year, particularly while things are so unsettled regarding the passing of the PIB. If the bid goes ahead, it will be the first one in five years.

 

 
A list of the potential fields of the proposed marginal field bid rounds can be found on the NOGintelligence website by clicking here.
     

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Nigeria Targets Production of 2.5 million bpd in 2013

 

Nigeria expects to ramp up production to 2.5 million barrels per day in 2013 according to the Petroleum Minister Oil Minister, Diezani Alison Madueke. Nigeria suffered a set back in its production targets this year mainly due to a combination of factors, including oil theft, vandalisation, and devastation from floodwater, all of which led to the force majeure declaration on Qua Iboe, Forcados and Brass LNG exports.

 

She said: "I expect it at least to stabilise (next year). The problems have been flooding and bunkering and some vandalism which have disrupted pipeline services".

  
 

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DOWNSTREAM NEWS

OPEC daily basket price stood at $106.01 Thursday, 13 December

The price of OPEC basket of twelve crudes stood at $106.01 a barrel on Thursday, compared with $105.83 the previous day, according to OPEC Secretariat calculations.  The daily basket price has recorded a yo-yo pattern over the last week.At the same time last week it stood at $105.64, falling to $104.75 on Friday and rising to $105.01 after the weekend. It fell again to $104.80 on Tuesday, then rising to $105.83 on Wednesday and rising for the second consecutive day to $106.01.

 

Introduced on 16 June 2005,  the new OPEC Reference Basket is currently made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

    

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FINANCIAL NEWS

Excess Crude Account stands at $9.66 billion

The Federation Accounts Allocation Committee (FAAC) of Nigeria has lodged US$1.07 billion into the Excess Crude Account (ECA), bringing the new balance to US$9.66 billion, the Accountant-General of the Federation, Mr Jonah Otunla, told journalists at the end of the technical sub-meeting of the FAAC for the month of November. 

 

"I think we have fared very well in the Excess Crude Account, we targeted US$10 billion at the end of the year and I am happy to tell you that we have 9.66 billion dollars in the account.  On a percentage basis, that is about 97 per cent of our aspiration for the year,'' he said.

 

The accountant-general also commented on the recent demand by the 36 state governors for the withdrawal of one billion dollars from the oil savings account.

 

He said that the federal and state governments would be guided by the "principle of consensus'' in resolving the matter.

 

Mr Otunla also said that the Federal, State, and Local Governments, as well as the Federal Capital Territory, FCT, agreed to share a total of about N572.9 billion, some

 

N2 billion lower than what was shared in the preceding month by the three tiers of government.  He cited crude oil theft, maintenance of oil terminals, and declarations of force majeure at Qua Iboe, Brass and Forcados export terminals, as the main reasons for the shortfall in revenues during the month. He said that there had been several disruptions in crude oil production and lifting operations during the period as a result of the force majeure declared by ExxonMobil in the wake of the leakage and fire outbreaks at Trans Niger; as well as Crude oil theft and maintenance work and Qua Iboe, Brass and Forcados oil export terminals. All the declarations of force majeure have now been lifted.

 

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Heritage Plans for Financing Purchase of Shell's OML 30 On Track

Heritage Oil has announced the results of the company's extraordinary general meeting (EGM) held on December 13.  The company, which is dually listed on the London Stock Exchange and the Toronto Stock Exchange, held the EGM to put a resolution to the shareholders for the approval of the proposed divestment of the remaining 49% interest it has in the Miran Block in the Kurdistan region of Iraq. The resolution was almost unanimously passed.

 

It will be recalled that in Issue 15 NOGintelligence reported that the company was intending to sell its interest in Miran to raise $450 million for the purchase of Shell's 45% interest in OML 30, after abandoning plans for a rights issue.  At the time, Tony Buckingham, Heritage's CEO, said: "The proceeds provide significant financial flexibility allowing us to fund the proposed acquisition of OML 30 without any rights issue or other additional capital requirement from, or potential dilution to, our existing shareholders."

 

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REGULATORY NEWS

Diezani Still Open To Discussions With Oil Companies on PIB

The Minister of Petroleum, Diezani Alison Madueke has confirmed in Vienna, where the member countries of OPEC are meeting, that the government is still open to talks with oil companies on the Petroleum Industry Bill (PIB).  Oil companies have been agitating for better fiscal terms, warning that if the government goes forward with the current terms in the PIB, billions of dollars worth of investment will be withheld from the industry.

 

She said: "Discussions are ongoing. We are hoping that we may be able to reach more of what a lot of the multinationals or the independents consider a win-win situation. We will continue those talks over the next few weeks and we hope that we come out with everybody feeling a little better about it."

 

She confirmed the feeling of multinationals and independents that the terms in the PIB are punitive and said she is prepared to look at the figures with them.

 

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ENVIRONMENTAL NEWS

Ijaw Youths Disrupt Chevron's Gas Project

 

Angry Ijaw youths from Benikrukru community of Warri South West Local Government Area of Delta State have embarked on a mass mobilisation of women and children to stop work on the 16-inch gas pipeline project being constructed for Chevron Nigeria Limited (CNL) from the company's Abiteye Flowstation to Escravos.

 

NOGintelligence gathered from the leaders of the youth in the area that flying boats and canoes were also being mobilised to move women and children to occupy the multi-million dollar gas project.

 

One of the youth leaders told NOGintelligence that the gas pipeline project was being executed for Chevron by an indigenous contractor, Fenog Nigeria Limited.

 

He however noted that the involvement of the local contractor in the project would not stop the youths from occupying the site unless Chevron meets their demands.

 

"We are mobilising market women and children, with canoes and flying boats to go and occupy the project. We will stop the work until Chevron meets our demands. The fact that the contractor handling the project is from the Niger Delta will not stop our action," he said.

 

The angry Ijaw youths numbering over 500 recently invaded the site temporarily, after chasing workers away.  It was learnt that the protesting youths arrived at the site with several boats and ordered all workers to leave but no one was hurt.

 

The youths said their action was in protest against the recently renewed Global Memorandum of Understanding (GMoU) between Chevron Nigeria Limited, Egbema/Gbaramatu Communities Development Foundation and the Delta State Government.  They also allege that Chevron has failed to provide basic social amenities for their community.

 

 The fierce-looking Ijaw youths said they were not comfortable with the GMoU and the accused Chevron of dragging their feet over the sand fill, piling and sweeping of the canals in Benikrukru Community. The chairman of Benikrukru Community, Chief Jeffrey Ojogun, said the action of the youths was a sign of what would happen to other facilities of the company in the coming days. He accused the company of trying to cause disaffection and disunity in Benikrukru Community.

 

 "We want to warn that this is just the beginning of our planned action against Chevron Nigeria Limited, a company that has murdered sleep in our community and we have vowed not to allow the company to know peace. Apart from the issue of the vexed GMoU, we are demanding from Chevron the sand-filling of our community, pilling of the community, sweeping of the canals and our stake in the Regional Council and these demands must be addressed urgently by the company," he said.

 

The youths also protested what they described as the failure of Chevron to define their stake in the Regional Development Council.

 

 They also allege that the people from Benikrukru Community who signed the GMoU on behalf of their community did not got the approval of the community.

 

NOGintelligence gathered that after an emergency meeting held on November 13, 2012, the members of the community had sanctioned those who signed the GMoU.

 

The community also threatened to mobilise women and children in the days ahead to cripple the Abiteye Flowstation and other facilities of Chevron.

 

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CORPORATE SOCIAL RESPONSIBILITY NEWS

Total Signs Partnership Agreements with Rivers Communities

Total Exploration and Production Nigeria (TEPNG) has signed partnership agreements with the people of Opobo-Nkoro in Rivers State, incorporating the communities into the development agenda of the company for the first time. The company has also renewed its partnership agreement with the Mgbuesilaru community.

 

The agreements, which will last for five years cover items as employment; skills development; micro credit schemes; educational development and infrastructural development.

 

According to the scope of the agreements for the Mgbuesilaru, the community indigenes will be given employment slots in the company within the duration of the agreement, while 65 persons will be trained on skills development for five years from 2012 to 2016.  

 

In the area of education, 33 persons will be selected for post primary; post secondary 40 persons, post graduate (local) 8 persons and post graduate (foreign), 3.

 

Also a revolving N5million micro-credit loan for entrepreneurs and infrastructural development envelop of N190million in five years.

 

The agreement between the company and the Opobo-Nkoro community provides that employment slots will be provided for the community indigenes in the company for the duration of the agreement, while 130 persons will be trained in skills development for five years from 2012-2016.

 

In the area of education, 42 persons will be trained in post primary; post secondary, 38; post graduate (local), 10 and post graduate (Foreign) 3. Three million naira revolving loan for entrepreneurs and infrastructure development envelop of N220million in five years will also be made available.

 

In his welcome address during the signing ceremony, TEPNG's Deputy Managing Director, Port Harcourt District, Mr. Nicolas Brunet, stated that the company's investment in the communities was meant to touch lives through the various projects and programmes that will be embarked upon

during the lifetime of these agreements. Brunet also stated that the signing of the new agreements would further strengthen the relationship between the company and the communities.

 

He used the opportunity to commend the various negotiating teams for their maturity and sense of responsibility that culminated in the final agreement.

 

The company had earlier in the year signed partnership agreements with Egi Oil and Gas Families, Egi Communities, Olo community and Ekpeye Kingdom, all in its Oil Mining Lease (OML) 58 concession. Mgbuesilaru community is host to the Total Village while Opobo-Nkoro is one of the coastal communities within the operations of Total in OML 99. Total said the signing of the agreements was was another demonstration of its corporate social responsibility.

 

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Shell Completes Distribution of Relief Materials to Flood Victims

Shell Petroleum Development Company of Nigeria Limited (SPDC) has completed the distribution of all the relief and medical materials worth over N75 million, it had earlier donated to flood victims in Rives, Bayelsa and Delta States.

 

This is in addition to the $1 million jointly donated by SPDC and Shell Nigerian Production Company (SNEPCo) in support of flood displaced persons in 24 states across the country. The money and relief materials were donated through the Red Cross and will be used in accordance with a Memorandum of Understanding (MoU) signed with the humanitarian organisation.

 

The support comes as the National Emergency Management Agency (NEMA) announced that the floods have claimed 363 lives and displaced 2.1 million people in different parts of the country.

 

The Managing Director of SPDC, and Country Chair of Shell Nigeria, Mr. Mutiu Sunmonu, said the company was deeply affected by what the floodwaters had done to people across the country and in the Niger Delta.

 

"We recognise that our assistance will not solve all their problems, but it can help them cope with the impact of the tragedy at this time," he said.

 

During the distribution of the relief materials, Sunmonu visited relief camps in Rivers, Delta and Bayelsa states along with SPDC's Health-in-Motion team, which treated various ailments, dewormed children, delivered health awareness talks and gave out insecticide treated nets. An SPDC mobile clinic worked with the team and attended to emergencies.

 

In one outreach at Bishop Dimeari Grammar School, Yenagoa, the biggest of the 28 relief camps in Bayelsa State, the mobile clinic had to support a woman in labour who was rushed to a nearby hospital where she gave birth. The commandant of the camp, Dr. Duonebiyah Udisi said: "We are very happy for the outreach, as it meets the immediate health needs of the displaced people."

 

The Health-in-Motion team also donated an assortment of drugs including anti-malaria, anti-hypertensive, anti-fungal, anti-ulcer, anti-diabetics, antibiotics and syrups.

 

Staff of Shell companies in Nigeria are contributing to a voluntary fund which SPDC will match 100per cent. SPDC's support will aid the Red Cross in relief management, camp coordination and management, emergency shelter, livelihood support and early recovery, family reunification, psychosocial support and risk reduction. Earlier, the company had provided helicopter flights, geomatics expertise, satellite imagery and maps of affected areas to aid proper relief operations planning and execution.

 

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CORPORATE SOCIAL RESPONSIBILITY NEWS

Invitations to Tender and Jobs  

Nigerian National Petroleum Corporation (NNPC)

NNPC invites bids from registered insurers and brokers in Nigeria to insure its various classes of insurance for oil and non-oil assets for the year 2013/14.  The classes of  non-oil assets envisaged include Fire and Additional Perils, Burglary, Marine Hull and Cargo, Automobiles, Money,Combined Workmen Compensation/Group Personal Accident, Group Life, General Third Party and Product Liability, Retail Outlets and Travel Medical. The deadline for bids is Friday 18th January 2013.

Pan Ocean Oil Corporation

Pan Ocean requires the services of competent and qualified contractors with relevant experience in the supply of Generating sets. The deadline for tenders is 21 December, 2012. 

Addax Petroleum Exploration (Nigeria) Limited

 

Addax invites interested and pre-qualified contractors to tender for the provision of the following services at its OML126/137 offshore facilities. The contracts will commence in Q2 of 2013 and continue for 2 years with Addax having the option to extend for a further 1 year period.

  • Completion Services - Stand Alone Screen
  • Coring Services
  • Downhole Testing Services
  • Gyro Seervices
  • Route Survey, Rig Move and Positioning Services
  • Wellbore Cleanup Tools and Services
  • Completion Services - Cased Hole and Intelligent
  • Slickline Services

Closing date for tenders is 12.00 hours on December 28, 2012. Only tenderers wit the required NJQS Product/Category shall be invited to submit technical bids. The full advert is available at www.nipexng.com

 

Shell Nigeria Exploration and Production Company Limited

 

Shell invites reputable and competent Nigerian companies with the requisite expertise, experience, skilled manpower and technology to apply for consideration of inclusion in the bid list for the provision of Well Engineering Support Services (Tender No. NGO2002454). The scope of work includes, but is not omitted to:

  • Drilling Supervision Services
  • Well Completion Services
  • QAQC Services
  • Data Management Services
  • NCD Consultation Services
  • SAP Support Services

The expected contract start date is Q2 of 2013, with a contract duration of 2 years, with a 1 year extension option. The closing date for applications is December 27, 2012. Only tenderers who are registered in the NJQS Other Drilling Services Category as at the closing date will be invited to submit technical bids.

 

Shell Nigeria Exploration and Production Company Limited (SNEPCo)

 

The Shell Nigeria Exploration and Production Company Limited (SNEPCo), operator of the Bonga Southwest/Aparo (BSWIA) unit area (straddling NNPC OMLs 118, 132, 140 block boundaries) invites interested and reputable contractors with relevant experience to apply for pre-qualification for consideration to tender for the following projects located 135 kilometres offshore in water depths of up to 1400 metres:

 

Tender NG02002424:

The design and manufacture of major equipment packages comprising of turbo compressors and turbo generators for the BSWIA field development project. The deadline for the receipt of pre-qualification applications is 21st December 2012 at 12.00 hours.

 

Tender NG02002417:

The Engineering, Procurement Construction, Transport and Commissioning of a Floating Production, Storage and Offloading (FPS)) Unit for the BSWIA field development project. The deadline for the receipt of pre-qualification applications is 1st February 2013 at 12.00 hours.

 

Tender NG02002418:

The Engineering, Procurement Construction, Transport and Commissioning of Pipelines, Flowlines, and Risers for the BSWIA field development project. The deadline for the receipt of pre-qualification applications is 1st February 2013 at 12.00 hours.

 

Tender NG02002421:

The Engineering, Procurement Construction, Transport and Commissioning of a Single Point Mooring (SPM) offloading system and its associated installation aids for the export of stabilised crude oil from the BSWIA field development project. The deadline for the receipt of pre-qualification applications is 1st February 2013 at 12.00 hours.

 

Contractors in the Nigerian oil and gas industry are bound by the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.  

 

Chevron Nigeria Limited

 

Chevron Nigeria Limited, operator of the NNPC/Chevron Joint Venture invites applications from qualified candidates for two positions.  

 

The first position will initially be located in Escravos and the second in Warri in Delta State although employees of the company have career opportunities in other Chevron worldwide operations.  

 

The positions are Drillsite Manager (Ref: 2012-DW-01) and Security Information Unit Field Supervisor (Ref: 2012-SEC-01). The deadline for applications is Monday December 17, 2012. For more information, visit www.chevronnigeriajobs.com

 

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Events

Society of Petroleum Engineers (SPE) Nigeria call for papers

 

The Society of Petroleum Engineers (SPE) Nigeria which will hold its Nigeria Annual International Conference and Exhibition (NAICE) on the 5th to the 7th of August 2013 in Lagos is calling for abstracts. The theme of the conference will be: "To Grow Africa Oil and Gas Production: Required Policy, Funding, Technology, Techniques and Capabilities". Abstracts should be submitted via the website www.spenigeriacouncil.org where a complete guide on preparing abstracts and full papers and other author resources can be found.

 

Nigeria Oil and Gas Exhibition 2013

 

Pre-registration has begun for Nigeria's largest annual oil and gas event. The 13th Nigeria Oil and Gas Exhibition will take place from the 19th to the 21st of February in Abuja. Click here for Visitor Pre-Event Registration.

  

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Sincerely,
Remi Aiyela
Editor, NOGintelligence
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