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Welcome to our 80th issue. Many are wondering what is happening with the marginal fields licensing round. The latest information NOGintelligence has is that it will definitely happen but it may not be till the end of this quarter. Do keep checking our website and the DPR website for news updates. We are pleased to let you know that the next NOGintelligence magazine, the Annual Review 2013 is currently in print and will be released early next week. You can however take a sneak preview by clicking on the front cover in the side bar. Please note that NOGintelligence print magazine is free but due to the increasing costs of distribution, we ask that you pay for delivery. Please email us giving your company name and full address if you would like a copy.
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Eni Shuts Tebidaba-Brass Oil Pipeline
Italian energy company Eni has closed the flow stations on Tebidaba-Brass pipeline following a fire. The fire is believed to have been caused by pipeline sabotage. An Eni spokesman said that the company is losing 3,500 barrels per day of its 20 per cent share of the joint venture.
It is feared that up to 47,000 barrels per day may be deferred during the shutdown of the important pipeline which carries Brass grade crude for export.
"We have promptly started the shut-in operations for the flow stations related to the pipeline," an Eni spokesman said.
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Camac and Allied Secure $100 Million Drillship for Oyo Field
Houston based independent Camac Energy founded by Nigerian, Kase Lawal, announced an important update that could change their luck on Oyo field located offshore and straddling their oil mining leases (OML) 120 and 121. The company and its operator partner, US company, Allied Energy, have entered into a one-year $100m contract with Oslo-listed rig contractor, Northern Offshore to hire the Energy Searcher drillship.
Camac's Chief Executive Officer Kase Lawal said the move became necessary "to help execute the company's transformational development and exploration programme in 2014 and beyond."
The rig is to be delivered the Oyo field in OML 120 in time to start drilling during the first half of this year. The Energy Searcher is equipped to operate in water depths of up to 2500 feet and to drill to total depths of up to 25,000 feet.
The partners had previously contracted Transocean's Sedneth 701 semi-submersible rig for the drilling but problems were encountered compounding the much-delayed development of Oyo field sold by Italy's Eni in 2012.
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Nigeria Accounted for 3.1% of OPEC Reserves in 2013
In 2013, Nigeria's crude oil reserves represented just 3.1 per cent of the total reserves of the Organisation of Petroleum Exporting Countries (OPEC,) a report has said. The report showed that the country's proven reserves stood at 37.1billion last year out of the 1200 billion reserves of the organization.
According to the report, non-OPEC members had 277 billion oil reserves, representing 19 per cent of global oil reserves. More than 81 per cent of the world's proven oil reserves are located in OPEC's member countries, with the bulk of OPEC's oil reserves in the Middle East, amounting to 66 per cent of the OPEC total.
The breakdown indicated the following reserves by country: Libya - 48.5 billion; Iraq -140 billion; Venezuela - 297.7 billion; Saudi Arabia - 265.9 billion; and Iran - 157.3 billion.
Others are Algeria - 12.2billion; Angola - 9.1billion; Ecuador - 8.2billion; Qatar - 25.2billion; Iraq - 140.3billion; Kuwait -101.5billion and United Arab Emirates - 97.8billion.
Nigeria is targeting 40 billion oil reserves by 2020 a feat, which stakeholders say is achievable only if the country injects some real momentum into the exploratory drive. However, with IOCs failing to take final investment decisions on new exploratory efforts, pending the enactment of the Petroleum Industry Bill, and the failure of the government to award new acreage, these targets are looking increasingly unrealistic.
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OPEC daily basket price stood at $104.47 a barrel Thursday, 16 January 2014
The price of OPEC basket of twelve crudes stood at $104.47 a barrel on Thursday, compared with $104.35 the previous day, according to OPEC Secretariat calculations. The OPEC basket price has been under pressure since the end of February but is now beginning to see a slow climb upwards.
Introduced on 16 June 2005, 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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FG Lifts Ban on Bunkering in Territorial Waters
Some thirty years after bunkering in Nigerian territorial waters was banned, it has once again been legalised. The government has announced that it will begin to licence bunkering operators by the end of the month. Director, Department of Petroleum Resources (DPR), George Osahon, made the disclosure through a press statement saying: "President Goodluck Jonathan has approved the issuance of licenses to bunkers as part of his economic agenda".
"This will help create employment activities for Nigerians as well as act as a stimulus for growth in other sectors of the economy, including inland ports and waterways," he explained.
The DPR intends to publish guidelines in line with the Petroleum Act 1969 for licensing bunkering operations, which it hopes will net the government around N250million annually. However Directorate of Marine Services, Nigerian Navy, Navy Captain SO Ayeni, gave an insight into how the scheme will operate.
Applications are to be submitted to the Nigerian Navy, with details of the vessel to be used for bunkering, the location, discharge point, quantity of fuel and the duration of the operations.
Operators are to source their products independently but not from Nigeria. The DPR and the Nigerian Maritime Administration and Safety Agency (NIMASA) will have to certify the quality of the products and the vessels. Bunkering vessels will not be allowed to leave the Nigerian territorial waters and they must obtain approval to move from one area to another.
Among the petroleum products currently categorised for bunkering operations under the Petroleum Act are Automotive Gas Oil (AGO), Low Pour Oil and Liquefied Natural Gas (LNG).
Bunkering is the process of supplying a ship with fuel, which the ship takes into its bunkers. In the 1980s, the process was being abused as vessels were taking subsidised fuel on board and selling them abroad for huge profits. The government banned bunkering in territorial waters as a result, at one time even imposing a death penalty for illegal bunkering.
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FG to Commence Metering Policy on 1st February
The Department of Weights and Measures of the Ministry of Trade and Investments has confirmed that the Federal Government's new metering policy in the oil and gas industry will kick off on the 1st of February. The Director, Weights and Measures, Mr. Oluyinka Sikuade, said this during a technical meeting between officials of the ministry and the consultants handling the project.
He said the full implementation of legal meterology services in the oil and gas sector would enable stakeholders to conform with the weights and measure regulation.
He said, "We are going to look at the metering system of the operators for accuracy, equity, fairness and conformity. We will take into consideration internationally acceptable error margins for us to have fairness and justice in trading devices used by the operators."
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JTF Deploys Swamp Buggies for Illegal Oil Refineries Destruction
The Joint Task Force (JTF) operating in the Niger Delta says it will now use a new method of destruction of illegal oil refineries. The Commanding Officer of 29 Battalion of the 2 Brigade of the Nigerian Army, Port Harcourt, Lt.-Col. Olusegun Oladuntoye, said that they were deploying "swamp buggies" which will be able to crush metal tanks used in the illegal refining process. The tactic of completely destroying the tanks will make it impossible for the oil thieves to recommence their illegal activities with the same equipment.
"Based on intelligence reports; we have discovered that the war against illegal oil bunkering cannot be completed without thorough destruction of illegal refineries," he said.
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Rivers and Bayelsa States Soku Oil Wells Dispute Continues
The dispute between Rivers State and Bayelsa State over the Soku oil wells, which are located on the boundary of both states, continues in spite of the matter having been ruled on by the Supreme Court.
Amaechi issued a statement through his Chief Press Secretary, Mr. David Iyofor, in which he insisted that Bayelsa State's claim to the wells were based on the 11 th edition of the Administrative Map of Nigeria. He said the 2000 map had erroneously shifted the boundary between Rivers and Bayelsa States from the initial boundary between Kalabari and Nembe, west of the Santa Barbara River, to San Bartholomew River. The shifting of the boundary put the Soku wells within Bayelsa State.
According to Amaechi, in 2002, following the publication of the 11th edition of the map, the Rivers State Government, under Dr. Peter Odili, petitioned the chairman of the National Boundary Commission (NBC),Vice-President Atiku Abubakar. He said that in a letter dated July 3, 2002, the Director General, NBC acknowledged the error and apologised, saying that the corrections would be reflected in the 12th edition.
In issue is the 13 per cent derivation fund from oil revenues, which accrues to the host state. Rivers State had commenced legal action claiming that the derivation proceeds should not be paid to Bayelsa State until the matter was resolved by the Supreme Court. The matter is now in the Supreme Court and according to Amaechi the Supreme Court deferred its decision to such a time as the 12th edition is published. They say that the Supreme Court also ruled that the derivation fund be kept in escrow pending final determination.
Governor Amaechi says that the Federal Government has released the funds to Bayelsa State contrary to the ruling of the Supreme Court. The 12th edition of the map is said to be still under production.
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PTDF Awards 60 Scholarships for Study in Norway
The Petroleum Technology Development Fund (PTDF) has awarded 60 scholarships for study in Norway. The scholars, 48 men and 12 women, will study Bachelor of Science programmes in oil related fields at Otsfold University College, Fredrikstad in Norway.
The educational programme is part of the agency's capacity development mandate for the oil and gas industry and youth development. The programme is part-funded by the United Nations Institute for Training and Research (UNITAR).
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Fuel Tanker Explosion Kills 15
Fifteen people have been killed in an inferno after a fuel tanker loaded with 33,000 litres of petrol caught fire along the Oshodi-Apapa Expressway. The tanker crashed and exploded whilst trying to avoid potholes in the road according to eye-witnesses. Over 50 shops and 20 cars were burnt down in the blaze.
The lack of a proper rail network for freight has meant that petroleum products are transported by road. The highly hazardous cargo, coupled with bad roads, has given rise to many fire incidents involving tankers. An efficient rail network will take much of this dangerous cargo off the roads.
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NOSDRA Tests Oil Spill Contingency Plan
The National Oil Spill Detection and Response Agency (NOSDRA) has conducted a test of its National Oil Spill Contingency Plan (NOSCP). The plan was put to the test in conjunction with Shell Petroleum Company. The NOSCP, says NOSDRA, will enable it to respond promptly and effectively to oil spills in the future.
The Director-General of NOSDRA, Peter Idabor said the test was successfully carried out after the simulation of a spill. He said all the stakeholders, including the Army, the Police, the Customs and the Immigration were also involved in the operation.
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ERA Urges Shell to Clean Up Ikararama Oil Spill
Activist group Environmental Rights Action/Friends of the Earth is calling on Shell to clean up the oil spill, which it says occurred in November in the Ikerarama community in Yenagoa, Bayelsa State.
The community has accused Shell of being responsible for the discharge of oil from the Rumuekpe pipeline operated by Shell. They say about 480 barrels of crude oil was discharged into the environment. Shell says the clean up is scheduled for completion in April 2014. However, the environmental activist group says the clean up is yet to commence.
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CORPORATE SOCIAL RESPONSIBILITY
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Shell Invites Applications For Post-Graduate Scholarship Scheme
Shell Petroleum Development Company, SPDC, is inviting applications for its 5th post-graduate scholarship scheme for 2014. Applicants must be between the ages 21 - 28 and must have a Second Class Upper Division university degree. The scheme is aimed at providing opportunities for graduates from Rivers, Bayelsa and Delta states to study courses relevant to the oil and gas industry, including engineering and geosciences.
General Manager, Nigerian Content Development for Shell, Igo Weli, said: "The feedback in the four years since the programme was launched has been impressive."
He said that under this scheme, SPDC will award 10 scholarships for a one-year Master's degree in partnership with Imperial College, London, University College, London and the University of Leeds for the academic year commencing September 2014.
He said the scheme was in addition to SPDC's regular scholarship programme which was introduced in the 1950s through which thousands of Nigerians have been sponsored in diverse fields of study.
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SPDC - Provision of Automatic Fire Extinguishing Detection and Alarm System
Shell Petroleum Development Company invites interested and registered Nigerian companies to respond to the opportunity for the provision and maintenance of clean agent automatic fire extinguishing, detection and alarm systems. The scope of service covers routine checks (daily, weekly, monthly, etc) on fire detection, alarm and extinguishing systems including condition monitoring, data gathering/usage to plan preventive maintenance. Only tenderers who are registered with NJQS in the 1.10.05, 1.16.05 and 3.01.15 categories shall be invited to submit technical bids. The closing date for this opportunity is 31st January 2014.
SNEPCo - Provision of Lower Completion Equipment and Services
Shell Nigeria Exploration and Production Company invites interested and registered Nigerian companies to respond to the opportunity for the provision of lower completion equipment and services. The scope of service covers the purchase of equipment and accessories for installation of oil production and water injector completions in SNEPCo's Bonga (deepwater) fields. Only tenderers who are registered with NJQS Product Category shall be invited to submit technical bids. The closing date for this opportunity is 31st January 2014.
SNEPCo - Provision of Directional Drilling Services
Shell Nigeria Exploration and Production Company invites interested and registered Nigerian companies to respond to the opportunity for the provision of directional drilling services. The scope of service covers directional drilling with measurement while drilling for deviated and horizontal deepwater wells as well as logging while drilling for deviated and horizontal deepwater wells. Only tenderers who are registered with NJQS Product Category shall be invited to submit technical bids. The closing date for this opportunity is 31st January 2014.
SNEPCo - Provision of Electric Wireline Services
Shell Nigeria Exploration and Production Company invites interested and registered Nigerian companies to respond to the opportunity for the provision of electric wireline services. The scope of service covers the provision of electric wireline logging and associated services for deviated and horizontal deepwater wells. Only tenderers who are registered with NJQS Product Category shall be invited to submit technical bids. The closing date for this opportunity is 31st January 2014.
SNEPCo - Provision of Waste Management Services
Shell Nigeria Exploration and Production Company invites interested and registered Nigerian companies to respond to the opportunity for the provision of waste management services. The proposed contract will commence in the third quarter of 2014. The scope of service covers the treatment/disposal of all waste (domestic and industrial) as well as storage and transportation to expected locations. Only tenderers who are registered in the NJQS product/category 31507 waste management services shall be invited to submit technical bids. The closing date for this opportunity is 6th February 2014.
Chevron- Provision of Tubing Conveyed Perforation Services
Chevron Nigeria Limited invites interested and registered Nigerian companies to respond to the opportunity for the provision of tubing conveyed perforation services offshore. The scope of service covers the provision of tubing conveyed perforation services and related accessories. Only tenderers who are registered with NJQS product/category 3.04.32 (perforation) shall be invited to submit technical bids. The closing date for this opportunity is 3rd February 2014.
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Best wishes 
Remi Aiyela
Editor-in-Chief
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