 LATEST MAGAZINE ISSUE
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Welcome to our 96th issue.
Our next magazine issue will focus on Technology. Do make sure you get in touch if you have any new technology for the Nigerian oil and gas industry as we will be devoting extensive editorial space to coverage of technology that is available in-country.
Should you want more dedicated coverage then email us as soon as possible to secure your space and reach thousands of industry executives who want to know about your product or service. Do get in touch quickly as advertising space is always highly sought after in our magazines. We have a limited number of spaces and once they're gone they're gone.We now have a section on our website for listing of Training. There is no payment for listing in our Training section if you are the organiser of the training. Please email info@NOGintelligence.com to request more information on listing your training programme.
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Shell Defers 40,000 Barrels Per Day from EA Field
Shell Petroleum Development Company of Nigeria Limited (SPDC) has announced the deferral of 40,000 barrels of oil per day from its EA field located offshore in oil mining lease (OML) 79. The deferral came after Shell suspended production from the field for the repair of the soft yoke mooring platform (SYMP) which connects the Floating Production Storage and Offloading (FPSO) vessel, Sea Eagle with the mooring platform. As a result, Shell spokesperson Precious Okolobo said in a statement, some 40,000 barrels of oil per day production is deferred.
Shell says that the SYMP bearing was damaged in recent bad weather offshore hereby necessitating the shutdown of the facility. There is now a force majeure in place on offtakes of the EA blend until the work programme is completed and production resumes on the field.
The EA field lies 15 km off the Niger Delta, south west of Warri in water depths of around 25 metres. Shell discovered the field in 1965 and first oil was achieved on December 14, 2002. Shell opted for offshore development requiring minimal servicing from onshore facilities, obviating the need for a land-based terminal.
The Sea Eagle FPSO is a huge FPSO with the capacity to store 1.4 million barrels. Designed to separate produced oil, water and gas, the topside facilities can process 170,000 barrels of fluids and 1000 million standard cubic feet of gas per day.
The EA Field was previously shut in on November 9, 2011 for scheduled statutory inspection, engineering and maintenance works, which included repairs to the Soft Yoke Mooring Platform and Relief Valve Recertification. Following that shut in, production resumed on the fieldon 27th December 2011.
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Chorus Energy Sells its Marginal Fields Stake to Swift Oil
Chorus Energy Limited has concluded its plans to divest its remaining equity in the Matsogo/Amoji/Igbolo marginal fields located in OML 56 in the North-West Niger Delta to Swift Oil. The divestment has been going on quietly, overshadowed by the big IOC divestments, most recently involving Chevron and Shell. Swift Oil, which up till now has mainly been involved in the downstream industry, will take Chorus Energy's 51 per cent stake in the fields. Chorus had previously farmed out 49 per cent of its interest in the fields to Seven Energy who had been said to be looking for buyers of their stake but may yet sell to Swift Oil in a separate deal.
NOGintelligence sources indicate that Chorus Energy chose Swift Oil only after a beauty parade by several suitors. The keenness of the contest for Chorus Energy's interest comes as no surprise given the failure of the Federal Government to progress the long awaited marginal fields licensing round, which kicked off in November 2013 but subsequently, inexplicably, ground to an abrupt halt.
The sale to Swift Oil continues a recent trend for cash rich major downstream players to look upstream as the bottleneck in the payment of subsidies for petroleum product imports slows down their downstream operations. Aiteo and Taleveras, two large downstream players known for their petroleum products trade, for example, are said to be the highest bidders for Shell's OML 29 in its latest divestment round. Swift Oil's operations include a tank farm, service stations, bulk product purchase and importation and landside depot management. It has also launched a series of lubricants and greases.
Chorus Energy Limited (CEL) was incorporated in 2001 with the purpose of participating in the 2003 Federal Government Marginal Fields Programme. The company was pre-qualified in 2002 in the tender process and subsequently bid for four opportunities. After being short-listed for two lots, it was awarded the fields in February 2003. The gas rich fields hold 11 million barrels of oil equivalent in 2P +2C gross reserves and resources. Not much work has been done on the fields since Chorus Energy acquired them and they remain undeveloped.
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FPSO Africa Conference: West Africa Oil and Gas Development Linked to FPSO Developments
Speakers at the inaugural FPSO Africa 2014 conference, which took place in Lagos have highlighted the link between West African oil and gas development and the market for Floating Production Storage and Offloading (FPSO) vessels. The conference was the first gathering in the region to discuss FPSOs, attracting the likes of Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development and Management Board (NCDMB), banks like FB Capital, law firms like Adepetun Caxton-Martins Agbor & Segun and industry organisation such as the Ghana Oil and Gas Service Providers Association (GOGSPA) Ghana and many more FPSO industry leaders in the region.
The event shone the light on the latest megatrends in the West African oil and gas supply and demand sector, and the global demand for FPSOs in the Gulf of Guinea, in particular Nigeria and Ghana. Presentations featured local financing and investment trends, as well as safety and security of offshore facilities and understanding the Nigerian local content law.
An underlying theme throughout the conference was the local content issue, and the event proved to be a vital platform in which speakers and delegates had an opportunity to discuss design elements, practicality and timeframe in which it would take to implement.
The chairman of the conference, Rob Smith said: "Overall the conference highlighted that West Africa oil and gas developments are linked to FPSO developments. While global oil markets will determine West Africa's exports, the bigger take away that I was happy to see was the local and regional involvement in developing local content."
Delegates concluded that in moving forward Nigeria must maintain a steady balance in looking after local interest whilst also being sensitive in protecting foreign investments.
The conference also discussed the status of the FPSO's that are currently in operation offshore Nigeria. Remi Aiyela, Editor-in-chief, NOG Intelligence pointed out that "the Egina FPSO project will be the first development where the topside design will be fabricated and integrated in Nigeria." This, she said, will lead to thousands more local jobs.
As West Africa continues to be a significant oil and gas producing region in the world, it is natural that FPSOs will only increase in West African waters, in which case there will be further need for local and international funding and local capacity. As Dzena Dzonlic, Conference Director for FPSO Africa commented, "there is a clear demand for this type of event in the region."
"We must continue to work with the key stakeholders in ensuring that we are tackling these important themes and addressing the fact that local content laws are not trying to get rid of foreign investments, but instead trying to increase local capacity," she added.
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OPEC Concludes 165th Ordinary Meeting Leaving Production Unchanged at 30 Million BPD
OPEC's 165th Ordinary Meeting has concluded in Vienna with the influential organisation, which pumps a third of the world's oil deciding to leave output unchanged at 30 million barrels per day (bpd). The unanimous decision was largely expected considering the economic backdrop. In particular, the conference considered the projected global economic growth in 2014 to 3.4 per cent revised from 2.9 per cent in 2013.Mirroring this positive economic outlook, the conference also noted that world oil demand is expected to grow by 1.1 mb/d to average 91.2 mb/d in 2014. The bulk of this growth was expected to come from non-OECD countries although non-OPEC oil supply is also anticipated to rise this year by 1.4 mb/d to reach 55.58 mb/d.
The conference also considered oil prices, noting that the OPEC Reference Basket has remained fairly stable over the last two years or so, with annual averages ranging between roughly $105 and $110 per barrel. In the past half-year, the Basket has averaged above $104 per barrel from January to May. The members agreed that this is a level that is acceptable to both producers and consumers.
In view of these economic factors, member nations, many of whom depend on high oil prices to be able to balance their budgets, agreed that it would be in their best interests to maintain production at the same level.
Another development from the conference, under the Chairmanship of its president, Omar Ali ElShakmak, Acting Minister of Oil & Gas of Libya and Head of its Delegation, was the decision to extend the tenure of Abdalla El-Badri, the Secretary General of the 12 member organisation, by six months. His tenure which had previously been extended had been expected to end in January 2015 but has now been extended by six months ending in June 2015. The extension of El-Badri's tenure quashed rumours of the impending appointment of Nigeria's Petroleum Minister, Diezani Alison-Madueke's to replace El-Badri.
Sources within the conference who NOGintelligence spoke to say that Alison-Madueke whose nomination has been accepted by the organisation has been well received contrary to reports that her appointment had been rejected. There is strong speculation that the deadlock in appointing the next Secretary General, created by the refusal of Saudi Arabia and Iran to back any one but their respective candidates, could be resolved by adding another candidate to the mix. OPEC articles state that: "All decisions of the conference other than on procedural matters shall require the unanimous agreement of all full members."
The decision over the appointment of the next Secretary General is now postponed with Alison-Madueke in the mix. If she is appointed to the prestigious role, she will move to Vienna, Austria, as the articles require that the Secretary shall reside at the Headquarters of the Organisation. This would distance her from the controversial issues that the Petroleum Ministry and the Nigerian National Petroleum Corporation have been mired in. If appointed, she will be the first female Secretary General of the organisation, and the second Secretary General from Nigeria. Alison-Madueke was elected the Alternate President of the OPEC Conference on December 4, 2013.
The 166th Ordinary Meeting of OPEC will take place on the 27th of November 2014.
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OPEC daily basket price stood at $107.39 a barrel Thursday, 12 June 2014
The price of OPEC basket of twelve crudes stood at $107.39 dollars a barrel on Thursday, compared with $106.20 the previous day, according to OPEC Secretariat calculations. Prices remain high as the growing violence in Iraq, which threatens oil supply, continues to rattle the market. Brent crude hit $110 a barrel following the capture of Iraq's biggest oil refinery by Islamic militants.
Mosul refinery, which has been captured by the militants, has a capacity of 300,000 barrels of oil per day (bpd), accounting for almost 9 per cent of Iraq's 3.5 million bpd. As a result of the instability, prices remain high, while the United States of America ponders a military response, aware that it is not yet insulated by shale production from price shocks caused by the rising political tension in the Middle East.
The new OPEC Reference Basket of Crudes (ORB) is 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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Total Launches First Solar-Powered Service Station in West Africa
Total Nigeria Plc has launched the first solar powered service station in West Africa at its Onigbagbo service station in Ikeja. The company said that the station comes at a time when the world over is looking for ways to meeting increasing energy demands.
In a statement, Total's Corporate Affairs Manager, Mabuyaku Albert said: "In line with our commitment to better energy initiative the construction of the solar-powered service station is part of efforts aimed at providing energy solution that is efficient and environmentally friendly."
"The company also believes that with such an innovative product, the cost of doing business will be reduced and this would lead to ensuring further investments and economic growth and development", he added.
Mrs. Anita Okunribido, President of the Council for Renewable Energy in Nigeria (CREN), expressed the hope that others like Oando, Conoil will take a cue from Total.
Total has also announced an environmental make-over for its services stations with the launch of a new service station concept, T-Air. The company says the make-over is in line with its commitment to environmental sustainability, innovation and premium customer services. The make-over involves more energy-efficient sales outlet that blend harmoniously with the environment. The company's 500 nationwide service stations should get the new look by 2017.
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Gas Wars To Be Fought Out in Court
The gas wars that have broken out between the little known Liquefied Petroleum Gas Retailers Association (LPGARAN) and the giant industry workers union National Union of Petroleum and Natural Gas Workers (NUPENG) have taken a new turn after LPGARAN took the fight to a Federal High Court sitting in Lagos. The claimants are asking for N5 million naira in damages, after alleging that members of NUPENG and other associations wrongfully seized gas cylinders belonging to them. They claim that NUPENG is trying to force members of LPGARAN to join the union.
Also joined as defendants in the suit are Nigeria Domestic and Gas Retailers and Materials, NDGRAM; Administrator of Kick Against Indiscipline, KAI and five others.
In the affidavit by LPGARAN it is alleged that KAI began in 2013 to intimidate their members. The affidavit continued: "The first incident that attracted our attention happened in the mid-December 2013 when KAI embarked on a selective raiding of LPGARAN members in Amuwo Odofin, Lagos, in the name of enforcing environmental laws."
The claimants want the court to declare the seizure of the cylinders illegal and wrongful and also want members of LPGARAN being held in custody in connection with the matter to be released.
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CORPORATE SOCIAL RESPONSIBILITY
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Oando Foundation Appointed to Judging Panel for $1 Teacher's Prize
The Oando Foundation, a charity chaired by Wale Tinubu, CEO of Oando Group, has been appointed to join the judging panel for the Varkeys GEMS Foundation Global Teacher Prize, the Nobel Prize of the world of education.
The prestigious Teacher's Price of $1 million is awarded to a teacher that has made an outstanding contribution to the profession. The Global Teacher prize will have achieved exceptional results in student learning and provided and will have opened up access to quality education for children of all backgrounds, enabling them become "global citizens" who are comfortable with their peers from different ethnic and religious backgrounds. Nominations are sought from all over the world.
President Clinton is the honorary Chairman of the Varkeys GEMS Foundation. He said: "Attracting the best people to teaching, developing and supporting their skills, and holding our teachers in high regard are all critically important to achieve excellence, both in teaching and learning."
Wale Tinubu has urged Nigerians to participate and nominate teachers who they deserve to win this award. The closing date for applications will be August 31, 2014, and the winner will be announced at the Global Education and Skills Forum 2015 in Dubai, UAE.
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LATEST TENDERS
NAOC: Provision of Fibre Optics Link Services Closing date:13th June 2014. NAOC: Provision of VDC Infrastructure and Support Services Closing date: 13th June 2014. TOTAL - Provision of Helicopter Transportation Services Closing date: 13th June 2014. TOTAL - Provision of Platform Supply Vessel Transport Services for (OML99) Closing date: 13th June 2014. TOTAL - Provision of Platform Supply Vessel Transport Services for (OML 102) Closing date: 13th June 2014. SPDC - Sale of Six Helicopters Closing date: 2pm on 13th June 2014. SNEPCo - Provision of Wellheads, Accessories and Services Closing date: 18th June. NPDC - Provision of Civil Construction and Survey Services Closing date: 20th June 2014. NPDC - Provision of Fabrication and Pipeline Repair Services Closing date: 20th June 2014. NPDC - Provision of Engineering Consultancy Services Closing date: 20th June 2014 NPDC - Provision of Facilities MaintenanceServices Closing date: 20th June 2014. NPDC - Provision of HSE Services Closing date: 20th June 2014. NPDC - Provision of Instrument and Electrical Maintenance Services Closing date: 20th June 2014.
Total - Provision of Routine Works Services
Closing date: 27th June 2014.
Addax - Provision of Offshore Scaffolding Equipment & Personnel Closing date: 30th June 2014.
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OPEC to hold its 6th International Seminar in Vienna on 3−4 June 2015
The Organization of the Petroleum Exporting Countries (OPEC) will host its 6th International Seminar at the Hofburg Palace in Vienna, Austria, on 3−4 June 2015. The theme of the event is "Petroleum - An Engine for Global Development".
The Seminar will examine a range of important energy issues with presentations by Ministers, oil company executives, representatives from international organizations, academic experts and industry analysts.
Topics will include the global energy outlook, market stability, oil investments, technology and the environment, and the state of the world economy.
The 6th OPEC International Seminar will underpin OPEC's longstanding commitment to strive for a secure and stable international oil market by promoting cooperation and dialogue with stakeholders around the world.
OPEC has held numerous Seminars since 1969, covering various topical themes. But its first high-level International Seminar was held in 2001. Since then, the event has grown in size and prominence to become one of the premier gatherings on the world energy calendar.
More detailed event information will be announced in due course.
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TRAINING:
Energy Business Fundamentals
Lagos, Nigeria
25 - 27 June, 2014
Samsung Heavy Industries Intensive: Technical Training Programme
University of Port Harcourt Offshore Training Institute: M.Sc. Pipeline Engineering and M.Sc. Offshore Engineering
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Best wishes 
Remi Aiyela
Editor-in-Chief
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