Afren's exploration well in its offshore Ebok Ebok North Fault Block, which spudded in last month using the Transocean Adriatic IX drilling rig has encountered significant oil pay according to an update by the company. Early indications, after analyzing the data, suggest oil in place in excess of 100 MMbbl. The company is now working on a development programme for the field. NOGintelligence understands that they intend to utilise existing infrastructure in the main Ebok field, which includes the existing Ebok FSO.  

The Ebok Field was awarded to Oriental Energy Resources in May 2007 by the ExxonMobil / Nigerian National Petroleum Corporation (NNPC) Joint Venture under the marginal field fiscal and tax regime. Ebok is in OML 67, 50 km offshore in 135 ft of water in Nigeria's prolific south eastern producing area. The field was discovered by the ExxonMobil / NNPC JV in 1968 (M-QQ1 (Ebok-1)).  

Afren signed a Farm-In Agreement with Oriental in May 2008 to participate in the development of Ebok. Under the terms of the agreement, Afren is responsible for funding all capital and operating costs for the development of the field, and will recover the costs (with interest) from 100% of field revenues. Following cost recovery, the ExxonMobil JV will receive a Net Profit Interest, with Afren and Oriental sharing net revenues equally.  

The project is Afren's second major greenfield development offshore south-east Nigeria, following the Okoro field development, and first oil was achieved in a record time of little over two years following the first appraisal well drilled by the partners.  

Afren has also entered into a collaboration agreement with Oriental to pursue other potential development assets in the region and has subsequently farmed in to the nearby Okwok field and surrounding OML 115 acreage.  Last year it acquired 3D seismic over the entire block and is said to be drilling an exploration well in the block.

The International Oil Companies (IOCs) operating in Nigeria and the Nigerian National Petroleum Corporation (NNPC) are set on a collision over the delay in the execution of some oil and gas projects, NOGintelligence has gathered.

Top officials of these multinational oil companies have blamed the NNPC for stalling the execution of the multi-billion dollar projects.

It was learnt that the Federal Government had hinged the attainment of crude oil production target of 4 million barrels per day (mbpd) and reserves of 40 billion barrels on the contribution of these projects.

Prominent among these projects, which have been in the pipeline since the administration of former President Olusegun Obasanjo are, ExxonMobil's Erha North phase two project; the second phase of Satellite fields development project; Shell's Bonga South West project and Total's Egina project.

The IOCs have however, blamed the NNPC for delaying the take-off of these project saying that the failure of the NNPC to hold its periodic Group Executive Committee (GEC) meetings, where big oil and gas projects are reviewed and recommended to the board for approval, has been responsible for the delay.

In a swift response, NNPC said it would not compromise on its established processes of awarding contracts for the pending projects in the oil and gas sector to the benefit of the IOCs.

Acting General Manager in charge of Public Affairs of NNPC, Mr. Fidel Pepple, said in a statement in Abuja that the corporation would only adhere to established procedures in its contracting cycle.

Pepple said the NNPC would not allow itself to be intimidated by the IOCs to abandon its firmly established process of contract award. According to him, the NNPC has an established procedure of contract and project approval, which includes conduct of economic analysis to establish project viability as well as the Federal Government's interests from investments in the upstream.

Reacting to the allegation that the NNPC had not held its periodic Group Executive Committee (GEC) meetings to discuss some major projects, Pepple said the GEC meetings were being held weekly or fortnightly.

Four Nigerian indigenous companies have clinched Shell Petroleum Development Company of Nigeria Limited (SPDC)'s Maturation Studies Services (MSS) contracts, in an initiative to help indigenous firms build their capacity in this key aspect of the oil and gas industry.

By the terms of the contracts, the four companies -  Laser Engineering and Consultancy Nigeria Ltd; Ankorpointe Nig. Ltd., Integrated Data Services Ltd, (a subsidiary of the Nigerian National Petroleum Corporation (NNPC)) and Nubian Nig. Ltd - will conduct front-end subsurface maturation studies in SPDC's onshore eastern operations for over a two-year period.

Maturation studies involve evaluation of subsurface data to build a picture of the hydrocarbon reservoirs and are vital to determining major oil and gas development plans.

Corporate Media Relations Manager, Mr. Tony Okonedo stated that in the past, there was a tendency to conduct a number of maturation studies overseas as a way of meeting planned targets.

He however, noted that in line with Nigerian Content Development (NCD) objectives, SPDC was working to domesticate these studies, thereby empowering Nigerian companies to acquire the necessary expertise while also significantly providing jobs in-country and reducing costs.

SPDC's Manager, Geosolutions, Nedo Osayande, who represented the company's General Manager, Development, Mr. Bayo Ojulari said at the contract signing ceremony in Port Harcourt that the contracts represented a top moment for Nigerian contractors in the oil and gas industry.

 "It has been a long journey; we liaised with the contractors on the conduct of subsurface studies, understanding their challenges and working to resolve them to a point where they can now render the required services. This is a top moment for Nigerian contractors in the oil and gas sector, and the four pioneers must seize this opportunity and prove that the investment in time and resources has been worthwhile," he said.

In 2011, SPDC also inspired in-country manufacture of carbon steel pipes when it awarded a $37 million contract to SCC Nigeria Limited, a move that led to the establishment of the first line pipe manufacturing facility in Nigeria.

Shell companies in Nigeria was recently given an award as the "Most Local Content Friendly International Oil Company" at the 10th anniversary and awards ceremony of the Nigerian Chamber of Shipping held in Lagos.

The award was in recognition of the company's "constant drive to source maritime materials and equipment within Nigeria, and giving priority consideration to Nigerian companies in evaluation of bids for maritime contracts." SPDC's General Manger, Nigerian Content, Mr. Igo Weli said the award was a further confirmation of the leadership role of Shell companies in Nigeria in Nigerian Content Development.

The Nigerian Petroleum Development Company, the exploration and production subsidiary of the Nigerian National Petroleum Company (NNPC) has said it recorded production growth due to aggressive drilling it commenced on some of its Oil Mining Leases (OMLs).

This according to a statement yesterday issued by the Acting Group General Manager, Group Public Affairs Division of the NNPC, Fidel Pepple, was in keeping with its target to grow its production to 250,000 barrels per day (bpd) by 2015.

"The latest of NPDC's production strides is the successful drilling of Okono 6 and 7 oil wells in its OML 119 which are currently yielding 12,000 barrels per day," the statement said. 

According to Pepple, the Okono 6 and 7 wells were significant not just because they represented the company's independent efforts at growing production but also because of the prolific nature of the wells, which were producing at an average of 6,000 barrels per day as against the older wells which were producing at an average of 3,000 barrels per day.

"From 2010 till date our production rose from 65,000 to 130,000 barrels per day. The bulk of the increase consists of assets handed over to us upon divestment by some of our JV partners; but we realize that for us to meet the target of 250,000 barrels per day by 2015, we need to build on this by exploring further afield and drilling more wells.

Okono 6 and 7 wells represent our success story in this direction," according to Mr Pepple.

While disclosing that the company's target was to drill 40 wells in the next five years as part of its growth projection, he added that NPDC planned to drill more wells as from 2013 and would deploy two more rigs in addition to the two it currently has on site.

On gas supply, he said: "We have commenced gas production from our Oredo Gas Plant since November and we currently produce 65mm scf per day."

The Gulf of Guinea Oil Exploration Limited (GGOEX) has announced plans to build an 850,000-ton methanol plant in Nigeria. The plant will be the largest in West Africa. It will be financed through local funding from Nigerian banks and the International Finance Corporation. The plant, which will be located in Delta State, will produce 2,500 tons of grade AA methanol a day.  The project is expected to come onstream in 2015.

GGOEX was incorporated 2011 and is an integrated indigenous energy company positioned to engage in the exploration, development, production, utilization and monetisation of gas reserves in established and emerging frontiers.

The company had previously stated its intention to develop, own and operate Nigeria's first Methanol manufacturing and exporting plant, in accordance with the aspirations of the Government of Nigeria for the Gas revolution drive and the diversification of the country's economy and the development of downstream industries from oil and gas resources.  

This is one of many major capital projects that are coming to Nigeria. Nigeria only recently overtook South Africa as the largest destination of foreign direct investment in Africa.

OPEC basket price has recovered from last week when it stood at $105.77 on Friday the 14th. Since then it has climbed steadily, to $106.38 on Tuesday 18th and $107.10 on Wednesday 19th, standing at $107.20 on Thursday 20th.   

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).

President of the Nigeria Labour Congress, Abdulwahed Omar, on Tuesday assured Nigerians that the Federal Government would not increase the price of petrol in the New Year.

Omar, who gave the assurance in a chat with the News Agency of Nigeria in Lagos, said that already the masses were facing a lot of hardship, adding that the government would not want to add to their sufferings.

According to him, any further increase in the prices of petroleum products could result in violent protest by the masses, and the government would not want that to happen.

"Generally, Nigerians should expect a good year in 2013. We don't expect sudden surprises from the government like we had early this year.

"I don't think government would be disposed to doing that because if you look at it, the hardship Nigerians are enduring now is slightly higher than what they were enduring at the end of last year.

"So, I think it would be unthinkable for government to want to compound the problems of the common man.

"So, let us hope that 2013 is going to come with good hopes and with a lot of prospects for everybody in this country,'' Omar said.

It had been largely suspected that the government was gearing up to remove fuel subsidies early in the New Year something analysts say is inevitable as the hugely expensive subsidy system is no longer sustainable. The government has been largely silent on the issue.

The Pipelines Products Marketing Company (PPMC) says that efforts have intensified to ensure that there is no shortage of fuel during the Christmas and New Year holiday period. PPMC's Manager, Public Affairs and External Relations, Mr Nasir Imodagbe, disclosed this in Lagos.

The PPMC spokesman said the company had commenced pumping products to Ejigbo and Mosimi through the System 2B pipeline, which was vandalised in August at Arepo, Ogun.

He however gave the assurance that effective pumping of products to the Ibadan, Ilorin and Ore depots would commence when the on-going test-run exercise was completed.

``This is to ensure that no part of the pipeline network is leaking,'' Imodagbe said.

He also implored Nigerians to desist from panic-buying of petroleum products during the festive period, saying that the country has sufficient products in stock to last for months.

``Government is working round the clock to ensure effective distribution of fuel during the Christmas and New Year period,'' the PPMC spokesman said.

He said the NNPC through its subsidiary, the PPMC, had intensified efforts in ensuring that fuel was available in every part of the country.

``We have stepped up fuel supply and distribution across the country. This is to ensure that motorists can drive into any filling station and buy fuel without queuing up, especially during this period of the year that comes with a lot of holidays and festivities."

``We have also increased the number of allocations and truck loadings to all the geo-political zones of the country and we hope to sustain this from now through the Christmas and New Year," Imodagbe said.

Mr Imodagbe also said that security agencies have promised to deploy massive security personnel to all petroleum pipelines across the country to curb vandalism.

``In order to curb incessant pipeline vandalism and to improve on fuel supply across the country, the Inspector-General of Police and other security agencies have promised to beef up security on the NNPC/PPMC pipeline network,'' he said.

Alhaji Bolaji Agbolade, the Chairman of the Ilorin branch of Independent Petroleum Marketers Association of Nigeria (IPMAN), on Saturday threatened that the association would withdraw its services with effect from Monday.Agbolade, who issued the threat at a news conference in Ilorin, said that IPMAN might embark on the strike because the lives of its members were being threatened by vandals of petroleum pipelines.

He bemoaned a situation where those arrested for vandalising fuel pipelines by the police, State Security Service (SSS) and the Nigeria Security and Civil Defence Corps were not properly prosecuted.

"Pipeline vandalism is an economic sabotage; we are worried about a situation where suspects are arrested and released within a few days without prosecution.

"We want to say that as from Monday (Feb. 13), we will likely withdraw our services and fuel will not be sold at the Ilorin Depot to any filling station.

"About two years ago, the police arrested five persons and they were each sentenced to five years' imprisonment by the Federal High Court but the convicts were released two weeks ago by another court.

"IPMAN maintains the pipeline from Ibadan to Ilorin. We spent about N5 million every month to protect the pipeline; we have spent about N70 million on protecting the line in the last one year," he said.

Agbolade has called for the intervention of the state government in the effort to arrest pipeline vandals and successfully prosecute them.He also called for the re-arrest of the convicted pipeline vandals who were recently released by a court.

The Nigerian National Petroleum Corporation (NNPC) has raised the alarm over the unending incidents of pipeline vandalism, saying the menace is currently posing great danger to the efficient distribution and supply of petroleum products in some parts of the country.

Speaking against the backdrop of the recent pipeline fire in Ije-ododo community in Ojo Local Government Area of Lagos State, Mr. Andrew Yakubu stated that the nefarious activities of pipeline marauders could cripple the smooth operation of the downstream sector of the industry. There are reports that up to 30 people may have died in the fire.

Yakubu who declared open the 3rd Triennial Delegates Conference of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN), in Abuja disclosed that less than one week after the vandalized pipeline in Arepo area of Ogun State was repaired, the NNPC had been compelled to shut the line again owing to the recent vandalism and fire on the Ije-Ododo point.

"We had over 774 break points since August 2012 from Atlas Cove to Ilorin depot. Between Atlas Cove and Mosimi depot, we recorded 181 break points, from Mosimi to Ibadan, we had 421 raptured points and from Mosimi to Ore, we recorded 50 vandalized points. Also between Ibadan and Ilorin we had a total of 122 break points," he said.

Yakubu said though the NNPC was working hard to ensure effective distribution of petroleum products across the country through increased trucking, the trucking option comes with enormous cost, which is totally unsustainable.

"Petroleum Industry Bill (PIB) or no PIB, privatisation or no privatisation, no industry can survive under this kind of arrangement,'' he said.

``We have a fallback strategy which we have already activated to ensure un-interrupted supply of products. Don't forget that we had the worst time when the line was shut completely in August after the Arepo incident but we have restored the lines and it started working and Nigerians felt the impact, only for the vandals to strike again. But we will do our best to sustain supply,'' he said.

Records indicate that with the incessant attacks on the nation's vast artery of pipelines about 70 percent products distribution is through trucking or what is known in the industry parlance as "bridging into the hinterlands".This requires massive fleets of petroleum product trucks of up to 1,212 trucks load out from the depots every day to meet the daily estimated national consumption.

Nigeria-focused exploration and production company, Eland Oil and Gas, will join the 50 largest UK incorporated companies on the Alternatively Investment Market (AIM). The company will be listed on the FTSE AIM 50 Index from 24 December 2012.

Eland recently acquired Shell's divested interest in OML 40. Private Equity firm, Helios, is a major shareholder in the company which has Leslie Blair as its CEO. Other shareholders are Henderson Global (14.3%), Solstice International (10.1%), Richard Griffiths (101.1%) and Artemis (3.9%). The company which was admitted to AIM in September 2012 with a market capitalization of £118 million according to some sources. The FTSE AIM 50 Index is the index of the largest 50 AIM-listed companies in the UK according to their market capitalization.

Moni Pulo Limited has just announced the names of the beneficiaries of its 2012 Community Scholarship Scheme in the company's host communities. Over 150 students will benefit from the scholarships from primary up to university level. The communities are Mbo, Effiat, Obutong and Rumorlumeni.  

Moni Pulo is an indigenous exploration and production company founded by Chief O.B. Lulu-Briggs, OON. The company operates offshore Oil Mining Lease (OML) 114 which was converted from Oil Prospecting Licence (OPL) 230 on a sole risk basis. OPL 230 was awarded to the company in 1992. The company acquired three new oil blocks,

Chief Lulu-Briggs recently came 31st on the Forbes Africa Rich List with a net worth of $500 million.

Total Nigeria Plc has presented 30 wheel chairs to people suffering physical disabilities in Kaduna. They made the presentation to mark World Disability Day. One of the community leaders said on the occasion of the presentation: "We are grateful to the company for discharging tis corporate social responsibility to this community."   

Shell bags Local Content Award

Shell companies in Nigeria have been given an award as the "Most Local Content Friendly International Oil Company" at the10th anniversary and awards ceremony of the Nigerian Chamber of Shipping held on 10th December 2012 in Lagos. The award is in recognition oftheir "constant drive to source maritime materials and equipment within Nigeria, and giving priority consideration to Nigerian companies in evaluation of bids for maritime contracts."

General Manger, Nigerian Content, SPDC, Igo Weli said: "We are grateful for the award which is further confirmation of the leadership role of Shell companies in Nigeria in NCD development."

Shell companies in Nigeria have already won three awards this year in recognition of their local content performance.  

National Assembly Adopts $79 Bench Mark

The two houses of the National Assembly have finally agreed to adopt a bench mark of $79. This is part of the Medium Term Expenditure Framework and the Fiscal Strategy Paper presented to the House by the President.   The bench mark set by the Government is $75. The President and the Minister have worked very hard to defend the decision to peg it at $75. However, the arguments have not gone down well with the lawmakers who have now decided to peg the bench mark at $79.  

The budget is based on the bench mark figure and any proceeds of oil in excess of that price will Lagos accrue to the Excess Crude Account.

Nigeria to Get New Metering Technology for Oil Industry

The federal government is to implement new weights and measures metering technology in the oil and gas industry, which should save the government $3 billion. The Minister of Trade and Investment disclosed this at the Annual Seminar for Trade and Investment Correspondents and Group Business Editors in Abuja. He confirmed that the President has approved the establishment of a Weights and Measures Department within the Ministry of Trade and Investment.

He said: "All over the world, there is legal meteorology which ensures that what you buy is accurate and legal. If you look at the Nigerian Extractive Industry Transparency Initiative Report, there is a lot of leakage in the oil and gas industry, either because the meters are not working or they are not installed at the right places. But for the first time, the President has given us approval to commence that operation across all sectors of the economy. We are starting with the oil and gas, telecoms and power sector. When the process is completed, we expect to save the country about $3billion and also generate revenue of about N17.4bn for the government in 2013."

DPR To Sanction Oil Marketers

The Department of Petroleum Resources (DPR) is to impose "heavy" sanctions on any oil marketer found to be aiding and abetting the smuggling of petroleum products outside the country.

The measure was announced in the quarterly journal of Petroleum Products Pricing Regulatory Agency (PPPRA).

The Public Relations Officer of the DPR in the North-West region, Alhaji MohammedBulama, said in the statement that the agency was partnering with security agencies to stop the activities of unpatriotic marketers.

``With the availability of the products in the country now, unscrupulous marketers are indulging in smuggling the products to neighbouring countries in order to make more profits thereby creating artificial scarcity at home,'' he said.

Eterna Posts Record Profits

Eterna has released its 2011 annual Report and Accounts. The company has posted a record turnover of N41 billion - up 190% from 2010 with profit before tax of N17 billion - up 54%. Company Chairman, Fola Adeola, said at the company's Annual General Meeting: "There is no doubt that we were confronted with real challenges in the course of the year. However, we became more innovative in the face of those challenges, in a bid to ensure that shareholder value was enhanced."