 LATEST MAGAZINE ISSUE
Click to read
|
 Click to read
|
|
|
|
|
Welcome to our 98th 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.
|
CAMAC Energy Commences Drilling of Oyo-8 Offshore Well
Africa focused CAMAC Energy Inc has spudded its Oyo-8 well located in oil mining lease (OML) 120. The Oyo field, located approximately 75 kilometres offshore Nigeria in water depths of approximately 300 meters, was one of the first deepwater oil discoveries made in Nigeria. Production from Oyo-8 is expected in the fourth quarter of this year and is expected, together with the Oyo-7 well, which will be completed subsequent to the Oyo-8 well, to significantly increase production from the Oyo field.
The company announced in a statement that Oyo-8 development well is being drilled by the Northern Offshore Energy Searcher drillship. The well will be drilled to a total depth of approximately 1,800 meters in water depths of approximately 310 meters, and will produce from the Pliocene reservoir.
CAMAC Energy, founded by Nigerian, Dr Kase Lawal, is the operator of the block in which it has a 100 per cent interest. The company is listed on the New York Stock Exchange and recently listed on the Johannesburg Stock Exchange after entering into a definitive agreement for a $270 million equity investment by South African State-owned company, the Public Investment Corporation (PIC). CAMAC was required to list on the Johannesburg Stock Exchange as part of the deal with PIC.
Prior to the deal with PIC, CAMAC Energy had entered into an agreement to acquire additional interests in its wholly owned subsidiary, Allied Energy, which enabled it to get a 100 per cent economic interest in the production sharing contracts covering Oil Mining Leases (OML) 120 and 121 offshore Nigeria. To acquire the interests, CAMAC Energy issued 497,454,857 shares of common stock, paid US$170 million in cash and issued a US$50 million convertible subordinated note.
OML 120 block was awarded in 2002 and appraisal wells were drilled between 2006 and 2007. Initial production from the two wells began in December 2009. The field produces oil and natural gas. Early seismic data estimated the probable and proved recoverable reserves at the Oyo field to be 45 million barrels of light crude oil. The proven resources were later revised to 50 million barrels. In April 2011, Netherland, Sewell & Associates produced a report which now estimates that the field to have reserves of 1.9 billion barrels of crude with a high of 6.3 billion barrels of oil-in place. Recoverable and prospective oil resources are estimated 626 million barrels with a high of 2.2 billion barrels.
CAMAC asset portfolios include existing production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya, and Gambia, and onshore Kenya.
Back to top
|
AfDB Approves $300 Million Facility for Dangote Refinery and Fertiliser Plant
The Board of Directors of the African Development Bank (AfDB) has approved a loan facility of $300 million to Dangote Industries Limited for the construction and operation of a greenfield crude oil refinery and a greenfield fertilizer manufacturing plant. The entire project is to be built at a cost of $9 billion.
Justifying the loan, the Bank said that both projects would produce for consumption in Nigeria and neighbouring African countries. The AfDB statement said the project would allow Nigeria, which currently relies on imported petroleum products and fertilizer, to progressively become self-sufficient and eventually transform into a major exporter. AfDB also said it expects that the project will ultimately act as a catalyst to support job creation.
The project has already got off the ground after the Dangote Oil Refining Company signed a contract worth $139 million with Engineers India Ltd (EIL). EIL will provide Project Management Consultancy (PMC) and Engineering, Procurement and Construction Management (EPCM) as well as commissioning services for the 400,000 BPSD (20 MMTPA) Petroleum Refinery and 600,000 TPA Polypropylene Plant. This project will be the largest single consultancy assignment for the Indian firm, which currently works all over the world.
The main facilities of the project comprise of a Crude Distillation Unit, Single train Residue Fluid Catalytic Cracking Unit, Diesel Hydrotreating Unit, CCR unit, Alkylation Unit, Poly-Propylene Unit, Utilities and Offsites including captive power with other enabling infrastructure facilities. Crude and product handing facilities through Single Point Mooring (SPM) will also be integrated with the refinery which is now to be located in the Lekki Free Trade Zone, near Lagos.
Nigeria's oil industry contributes a large share to gross domestic product and accounts for the bulk of federal government revenue and foreign exchange earnings. Africa's largest crude oil producer, Nigeria, does not have the refinery capacity to provide for its populous nation. In spite of having four refineries with a combined capacity of 450,000 barrels, Nigeria has to import most of refined petroleum products and fertiliser products for its domestic needs.
The Dangote Group, which was established in the late 1970s started with commodity importation and has now diversified into oil and gas. Last year, as he turned 55, Africa's richest man, Dangote said he would build a refinery and petrochemicals plant and single-handedly double Nigeria's refining capacity. Within a few days, financiers were lining up to provide the $9 billion that would realise the project.
AfDB said in the statement that the projects would add value to local natural resources, doubling the country's refining capacity, and reducing by more than 80% current imports of fuel in the country and eliminate fertilizer imports. This should bring Nigeria foreign exchange savings of $65 billion through import substitution and will also provide additional revenues for the Federal Government in taxes and fees.
The projects will also create over 30,000 temporary jobs during construction, and 2,900 direct jobs during operations. The projects forms part of the Bank's ongoing effort to support Nigeria's Agriculture Transformation Agenda under which aims to attract private sector investment in agriculture, reduce post-harvest losses, add value to local agricultural produce, develop rural infrastructure and enhance access of farmers and other value chain actors to financial services and markets.
AfDB is a multilateral development finance institution established to contribute to the economic development and social progress of African countries. It was founded in 1964 and its mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region.
|
Genesis Electricity to Supply 75mw Gas Turbines to Port Harcourt Refinery
Port Harcourt Refinery is to get an operational boost following the revelation that the Nigerian National Petroleum Corporation (NNPC) and Genesis Electricity Ltd have signed a Memorandum of Understanding (MOU) designed to bolster power supply to the Refinery and strengthen its production capacity.
Under the terms of the MOU, Genesis Electricity Ltd is to supply three 25-mega watt capacity gas turbines to the 49-year old refinery. The three 25-megawatt (MW) trailer-mounted TM2500+ aero-derivative gas turbines will provide base-load and back-up power making it possible for the 210,000 barrels per day refinery to generate uninterrupted power supply. The terms also include a 20-year power purchase agreement with NNPC.
This installation is one of the Federal Government's initiatives for the rehabilitation of the nation's refineries, which have been functioning at far below capacity for many years. At one time the four refineries were said to be functioning at 25 per cent of capacity although Port Harcourt is said to function at 30 per cent of capacity presently, mostly it due to inadequate power supply. The MOU also includes the nation's other refineries.
Speaking at the signing ceremony, the Group Managing Director of the Corporation Andrew Yakubu said that the MOU would give PHRC a new lease of life and curb unstable power supply to the facility.
"We all know that power is strategic to all our operations and with this lengthy and conscientious agreement with an indigenous company on electricity, I believe that PHRC power situation would further improve and impact positively on the product output of the PHRC," he said.
According to him, "we hope that this arrangement will be a win-win situation and it will be a test case that will add value to our installations."
|
OPEC Daily Basket Price Stood At $109.39 a Barrel Thursday, 26 June 2014
The price of OPEC basket of twelve crudes stood at 109.39 dollars a barrel on Thursday, compared with $109.63 the previous day, according to OPEC Secretariat calculations. Prices have started to come down as the OPEC Secretary General, Abdullah Al-Badry moved to quash rumours that Iraq production has declined as a result of the political situation in the country.
Abdullah Al-Badry stressed that the recent price increases were due to fears caused by the crisis in Iraq rather than a drop in output. He said that Iraq is "still producing as normal," with 95 per cent of capacity in the country's south being unaffected by the violence as the ISIS insurgent group continues to gain ground in Iraq. He added that OPEC still has spare capacity.
Prices peaked on the 20th of June when OPEC basket prices stood at $110.48 where it remained for a few days. However, prices have continued to drop following OPEC's move to allay fears of a decline in production which has calmed the nervous market.
International benchmark crude, Brent, had risen to $115 barrels on the back of market fears, after hovering around $110 barrels over the last few years. By the end of the day on 26th June Brent crude stood at $113.21 down 79 cents on the day before.
Meanwhile, WTI Crude traded down to $105.84 by end of day on 26th June down 66 cents on the previous day.
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).
|
NEITI Signs Contract For 2012 Oil And Gas Industry Audit
The Nigeria Extractive Industries Transparency Initiative (NEITI) has signed the contract for the audit of the oil and gas industry for the year 2012. The signing ceremony, which took place at the NEITI Secretariat was attended by NEITI Management and representatives of the Consortium of Taju Audu Effectivo who won the contract.
The Taju Audu Effectivo Consortium is made up of four firms: two Nigerian firms, Taju Audu & Co. and Effectivo Capital Limited; and two international firms, of Baker Tilly International and Resource Consulting Services Limited.
The Executive Secretary of NEITI Mrs. Zainab Ahmed in her remarks noted that the Audit is critical for NEITI to maintain its high ranking at the global EITI and to meet the requirements of the NEITI Act and the expectations of Nigerians. She urged the Consultants to put in their best to ensure that the assignment is completed by November 2014.
Mrs. Ahmed noted that 85% of the data required for the audit has been collated by NEITI and that the consortium is expected to ensure speedy reconciliation, verification and validation of the data.
The Executive Secretary enjoined the auditors to be diligent and to display a high level of professionalism, integrity and objectivity in the discharge of this important assignment.
Mr. Taju Audu who spoke on behalf of the Consortium thanked the NEITI management for the confidence reposed on them, noting that they fully understood the import of the assignment and would give it their best to ensure they meet the November 30th, 2014 deadline for the conclusion of the audit.
The 2012 oil and gas industry audit is the fifth in NEITI's cycle of audits of the oil and gas sector since the agency commenced operations in 2004 as a member of the global Extractive Industries Transparency Initiative (EITI). The previous audits covered the periods 1999-2004, 2005, 2006-2008 and 2009-2011.
|
Ruling on Liability for Oil Pipelines in Nigeria has Implications for Operators
In a ground breaking decision, which has serious implications for Nigerian oil and gas operators, a London High Court has ruled on the issue of liability for the maintenance and security of oil pipelines. The ruling was made following a preliminary issues hearing in the compensation case between members of the Bodo Community and Shell.
London law firm Leigh Day which is representing 15,000 fishermen and the Bodo Community had argued before Technological and Construction Court judge and president, Mr Justice Akenhead that Shell should be held legally liable if it fails to take reasonable steps to protect its infrastructure given the foreseeable risk of bunkering, the illegal hacking into pipelines to steal the oil.
In a decision, which Leigh Day described as groundbreaking, the judge ruled that Shell could be held legally liable for illegal "bunkering" of its pipelines if it failed to take reasonable steps to protect its infrastructure.
Whilst Leigh Day and the Bodo community rejoice over their "victory," Shell has sought to point out that the finding does not mean that the Oil Pipelines Act holds pipeline operators responsible for damage caused by oil theft in all situations. It was only in "theoretical" but "difficult to prove" exceptions that a pipeline operator could be held liable, for example in the event that a pipeline operator knew the time and location of a planned attack by criminals and decided not to inform the police. This is therefore not a situation of a general liability for oil spilled as a result of illegal oil refining.
The case concerns the two oil spills in 2008 and 2009, which Leigh Day says resulted in the largest loss of mangrove habitat ever caused by an oil spill. Shell has long since accepted liability for the spills. The issue has been one of quantum of damages with arguments raging between the two parties over the amount that was spilled and how much damage was caused as a result of the spills. After offers and counter offers, the parties failed to reach agreement on how much damages should be paid and Leigh Day headed for the UK court where it is hoping to get a much more substantial award than it could expect to extract from a Nigerian court.
The preliminary issues being tried before the substantive case, which is to be heard in 2015, included a consideration of the Nigerian Oil Pipeline Act which governs liability for failing to "protect, maintain or repair" the pipeline. While the judge found that Shell did not have an obligation to provide policing or military defence (which is the function of the state), it could however be legally liable if it failed to take other reasonable steps to protect the pipeline such as the use of appropriate technology (leak detection systems), a system of effective surveillance and reporting to the police and the provision of anti-tamper equipment.
The judge held that: "Short of a policing or military or paramilitary defence of the pipelines, it is my judgment that the protection requirement within Section 11(5)(b) involves a general shielding and caring obligation. An example falling within this would be the receipt by the licensee of information that malicious third parties are planning to break into the pipeline at an approximately definable time and place; protection could well usually involve informing the police of this and possibly facilitating access for the police if requested. Other examples may also fall within the maintenance requirement such as renewing protective coatings on the pipeline or, with the advent of new and reliable technology, the provision of updated anti-tamper equipment which might give early and actionable warning of tampering with the pipeline."
Speaking after the hearing, Martyn Day, senior partner at Leigh Day said: "This is a highly significant judgment. For years, Shell has argued that they are only legally liable for oil spills which are caused by operational failure of their pipelines and that they have no liability for the devastation caused by bunkered oil. This judgment entirely undermines that defence and states in clear terms that Shell does have potential liability if it fails to take reasonable steps to protect its pipelines."
Mutiu Sunmonu, Managing Director of the Shell Petroleum Development Company of Nigeria Ltd (SPDC), said: "From the outset, we've accepted responsibility for the two deeply regrettable operational spills in Bodo. We want to compensate fairly and quickly those who have been genuinely affected and to clean up all areas where oil has been spilled from our facilities, including the many parts of Bodo which have been severely impacted by oil theft, illegal refining and sabotage activities. We hope the community will now direct their UK legal representatives to stop wasting even more time pursuing enormously exaggerated claims and consider sensible and fair compensation offers."
The Bodo community in Gokana Local Government Area, Rivers State, is a rural coastal settlement consisting of 31,000 people who live in 35 villages. The majority of its inhabitants are subsistence fishermen and farmers. Leigh Day's evidence is that 1,000 hectares of mangroves have been destroyed by the spills and a further 5,000 hectares have been impacted. This, they say, represents the largest loss of mangrove habitat ever caused by an oil spill. Leigh Day says that a comprehensive clean-up is yet to get under way and the creeks remain extremely polluted.
The court will address the jurisdictional issues that arise from the case being brought in England when the substantive trial resumes next year.
|
GE Pledges to Build Skill and Capacity in Nigeria's Oil & Gas Industry
Customers of GE Oil and Gas, partners and other stakeholders in the Nigerian oil and gas industry gathered at GE Garages for an interactive session on the role of Technology in the Nigerian Oil & Gas Industry. GE Garages is GE's platform to communicate Advanced Manufacturing stories, bringing together both internal and external partners to enable creativity and innovation on a global scale.
Speaking at the event, Uzo Nwagwu of GE Nigeria Oil & Gas said as technology continues to play a key role in the development of the Oil and gas industry, there needs to be concerted efforts to build skills and capacity in available local manpower.
According to Uzo Nwagwu, "the core of GE Oil & Gas is technology, and this technology will play a critical role in emerging energy markets. As the Oil & Gas industry continues to explore new sources of production, operations are increasing in complexity thus driving significant demand for better technology in equipment and services".
Nwagwu explained that GE was investing significantly in the training of engineers and technicians in the use of the ever-evolving technology. Many GE Field Service Engineers and technicians are indigenous Nigerians. This, he said, is part of GE's localization strategy in the region.
In a statement, GE said that it is investing in technology and service sectors that are critically important to the region, such as subsea and liquefied natural gas (LNG). Subsea production is expected to increase by 35% globally by 2018 as growing demand, along with depletion of current wells, drives production toward much deeper parts of the sea. GE is delivering technology and services today to develop subsea resources and is developing the technologies that will move processing to the seabed.
The Garages programme is in partnership with the Dangote Foundation. GE said in the statement that a significant stakeholder within the Nigerian private sector, Dangote will help produce and maintain the program and will collaborate on curriculum development for entrepreneurial and non-skilled participants.
GE says that with the help of its Foundation partner Points of Light, as well as the global African Affinity Forum within GE, it will activate over 400 employees in Nigeria, to create a network of mentors, coaches and teachers for program participants.
|
LATEST TENDERS
Total - Provision of Routine Works Services
Closing date: 27th June 2014.
Addax - Provision of Offshore Scaffolding Equipment & Personnel Closing date: 30th June 2014.
NNPC - Completion of Multi-purpose Hall The closing date for this opportunity is 30th June 2014. NNPC - Request for Expression of Interest for the Provision of Consultancy Services for the Valuation of NNPC Movable Assets (Office Content) Expressions of Interests must be received no later than 12 noon on 7th July 2014. NNPC - Dredging, Sand Filling and Land Reclamation for the GRIP Project at Ogidigben Completion of Pre Qualification Questionnaire must be received no later than 12 noon on 11 July 2014. Petroleum Equalisation Fund (Management) Board - Procurement of Kitchen Equipment The closing date for submission of bids is 11am Tuesday 15th July 2014. SPDC - Provision of Slick-line (Well Intervention) Services The closing date for this opportunity is 16th July 2014. NAOC - Hire of Hydraulic Workover Unit The closing date for this opportunity is 16th July. NPDC - Facilities Maintenance Services (Flow Station Painting) in OML 30 The closing date for this opportunity is 15.30 hours on 21 July 2014. |
|
Nigerian Embassy in Moscow to Hold Energy and Hydrocarbons Investment Forum
Following on from Nigeria's successful outing at the recently concluded World Petroleum Congress held in Moscow, Russia, the Nigerian Embassy in Moscow says it has concluded plans to host an investment forum focused mainly on energy for the business community in Russia. The event will take place on the 1st of August. Briefing journalists on the event, which is aimed at boosting trade relations between the two countries, Nigeria's Ambassador to Russia, Chief Asang.
Asang said that there will be about 50 Nigerian investors at the event which will be opened by First Lade, Dame Patience Jonathan. He explained that Nigeria was trying to change the trend with the investment forum, noting that hitherto, Nigeria had always looked Westward for its trade, but was now looking Eastward to countries like Russia. Asang said, "The focus of the forum will be energy and hydrocarbon distillation."
|
LATEST EVENTS
Nigerian Association of Petroleum Explorationists (NAPE)
Special Management Workshop
Lagos, Nigeria
2 July 2014
info@nape.org.ng
International Association of Drilling Contractors (Nigeria Chapter)
Oriental Hotel, Lagos, Nigeria 03 July 2014, 10.30am sola@iadcnigeria.org or toks@iadcnigeria.org
4th Downstream Oil and Gas Expo Abuja, Nigeria 26-28 August 2014 www.oilandgasexpos.com
Gas Africa 2014
Gauteng, South Africa 26-27 August 2014 http://www.mcnaughtonevents.co.za
3rd International Downstream Conference/Exhibition on Gas, Petroleum Refining, Petrochemicals and Fertilisers
Port Harcourt, Nigeria 27th -28th August 2014 www.cgrpng.org
10th annual Global Local Content Summit
London, UK 22- 25 September 2014 http://www.localcontentsummit.com/
2nd Africa Oil & Gas, Finance and Investment Forum |
|
LATEST JOBS:
More details on our website
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
Centre for Petroleum Geosciences, University of Port Harcourt
Applications are invited for admission into the M.Sc Degree Programme in Petroleum Geoscience for the 2014/15 Session.
More details on our website |
Don't forget to join our mailing list if you haven't done so already. Remember, you won't have to look anywhere else for your weekly Nigerian oil industry updates, and it's free to join.
Best wishes 
Remi Aiyela
Editor-in-Chief
|
|
|
|
|
