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Sept-11 107.61

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May-11 109.94

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Dec-10 88.56

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Jan-11 92.83

Feb-11 100.29

Apr-11 111.09

Jun-11 109.04

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Daily | Weekly | Monthly | Yearly 103.11US

A Vanguard Monthly Review Of The Energy IndustryDECEMBER, 2011VOL 02 N0. 31

19

ndia's Mangalore Refinery and Petrochemicals, MRPL, I

has bought 1.3 million barrels of West African crude oil for loading in January and February via tender, trade sources said on Thursday. MRPL bought 650,000 barrels of Nigerian Escravos crude oil for January lifting from Chevron at a premium of about $3.00 over dated Brent on an fob basis, they said. The Indian refiner also bought 650,000 barrels of Coco, a crude oil produced in the Democratic Republic of Congo, from Shell for lifting in February at a premium of about $5.00 over dated Brent on a cost plus freight basis, they said.

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‘Gas plans will translate to huge economic wealth’

‘Gas plans will translate to huge economic wealth’

14

Oando commissions 128 Km gas pipelines

COVER

OIL

FOCUS

FEEDBACK

Contents

EDITORHector IGBIKIOWUBO

CORRESPONDENTS

Printed and Published byVanguard Media Limited.Vanguard Avenue, Kirikiri

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Internet:www.vanguardngr.com

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GROUP BUSINESS EDITOROmoh GABRIEL

PAGE LAYOUT/DESIGN Francis AYO & Johnbull OMOREGBEE

FINANCE

2

Victor AHIUMA-YOUNGFavour NnabugwuGodwin ORITSE

GAS1919

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Yemie ADEOYEJimitota ONOYUME

Samuel OYANDOGHAOscarline Onwuemenyi

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Enquiries Call:08051100256

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COMMUNITY DEVELOPMENT

3535 INSURANCE

LABOUR

4949

Awaiting maritime hub status

CBN advocates blueprint on mining investments

Abandon project: FG calls for technical viabilities

“Gas plans will translate to huge economic wealth

NPA to sanction vessel owners over explosion

Ecopetro earmarks $8.48bn for 2012 capex

“Subsidy removal is diversionary”

4545

4242

WPC announces finalists for excellence ward

FREIGHT

4848 TECHNOLOGY

SOLID MINERALS

Sweetcrude is a publication of Vanguard Media Limited

Gas Revolution: Nigeria tackles infrastructure challenges

Oando commissions 128km gas pipeline

DEPUTY EDITORClara Nwachukwu

THE TEAM

“We collaborating with stakeholders to fight fake insurers”

Natural gas: Importance and uses

Niger Delta: Shell spends N9bn on development projects

ig mo a h v neria’s st ut oritati e E ergy d t magaz e, w c u

In us ry in S eet r de,N d u an t will eb t in gr d style at he 20thorld et ol m Co g s

W P r eu n res , WPC.a e D h t h

We r in o a with its 31s edition, whic oc es n h ar t N tf us o ow f he igerian governmen e ea a f a has gone with th r lis tion o progr mmesin it G evo t

s as R lu ion in line with ourob t ur s

jective, o s pport government’s effo t tot ac m e or ec ves en , ,at r t or F eign Dir t In tm t FDI hto t e sector. h r c t ec r as

T e G oup Exe u ive Dir to , G and r an Na na et e m

Power, Nige i tio l P rol u C po t , PC, r. avid g s or ra ion NN D D I e, peakse y e ea t gh r ed

xtensivel on th br k hrou s ecordy ea o in

so far, especiall in the ar of pr vid g b e f tr u a gal isback on in ras uct re th t will van e er in o r enNig ia t becoming the egional ergy bhu .A f l d d

part rom our detai e an well-in t ep r s N s gves igated r o t on igeria’ Ener y s y a d , h t ac iv d t

indu tr , n indeed t e Ex r t e In us ry t t e val e ve s tand he en ir u chain, we ha al o kep ait wit r egu r ep r ag . A r lf h h ou r la r o t e cco ding y, e g pd t d evel w brin you u a es an d opments in Fin e, I c e h c g

anc nsuran e, Fr ig t, Te hnolo y ando y D opmen .C mmunit evel t

l pa rsh p t h CA so, our rtne i wi h t e WC s r he Nig r il d , GAs ociates fo t e ia O an Gas NO 2 In na r ce201 , ternatio l Confe en and h l e, an u e Ex ibition is still in p ac d we rg allin r ayer n ec iv ves r o

dust y pl s a d prosp t e in to s tta advan age m of e ed inke t of the ileage f r

c t t h c dSweet rude o adver ise t eir produ ts an e es h glo it s rvic to t e bal commun y.

4Cover Story

CONTINUES ON PAGE 5

President Goodluck Jonathan

CLARA NWACHUKWU & OSCARLINE ONWUEMENYI

Wh e n

Pres ident Goodluck E b e l e J o n a t h a n

launched Nigeria’s Gas Revolution in March this year, many may have thought it would be another one of those “ whi te e lephant dreams”. But one year on, the Federal Government has shown its resolve to ensure that the revolution, aided by the Gas Master Plan becomes a rea l i t y th rough the provision of infrastructure.

Taking the infrastructure developments in phases, government aims to fast track the monetisation of the nation’s gas resources, instituting a gas based industrialisation as well as increasing the generation capacity of the power sector, t o e n s u r e s u s t a i n a b l e electr ici ty delivery for domestic and industrial uses.

Very few nations can boast of the resources the country has, both natural and human. The country ’s resource endowments leave it with no excuse for the relatively high rate of unemployment and under-industrialisation.

The need to diversify revenue sources away from just oil makes it imperative for government to fast track the deve lopment o f la tent resources for the growth of the economy.

A l t h o u g h N i g e r i a ’ s commercial oil is over 50 years, the discovery of huge gas resources, estimated at about 187 trillion cubic feet proven gas reserves, coupled with about 600 trillion cubic feet undiscovered potential, make industry watchers describe Nigeria more of a gas province than oil.

This discovery and the need to match words with action spurred government to embark on infrastructure development - through the planned construction of gas pipelines that will supply gas to the thermal power plants in

the Niger Delta and western Nigeria; the approvals for Free Trade Zones, FTZs; and the planned construction of v a r i o u s f e r t i l i s e r s ,

petrochemicals and methanol plants in specific locations in the Niger Delta.

T h e s e a r e b e i n g implemented mostly through

private pubic partnerships, P P P, w i t h a v i e w t o “Repositioning Nigeria as the regional hub for gas based industrialisation, through which the country will add value to its natural gas and create a broad platform for aggressive industrialisation,” according to the Minister of Petroleum, M r s . D i e z a n i A l i s o n -Madueke.

Implementation of agendaR e i t e r a t i n g t h e

commitment to see the gas revolution to fruition, the Group Executive Director, Gas Development, at the Nigerian National Oil Corporation, NNPC, Dr. David Ige, told Sweetcrude that once government was done with the provision of backbone infrastructure, inves tments wi l l s tar t springing up across the country. In this regard, he disclosed that a number of contracts have either been approved or undergoing tender in each phase of the development.

Infrastructure development in the area of power include the I tok i - Olor unshogo Pipeline to supply gas to the Olorunshogo Power Plant and the environs; Alaoji Pipeline for the Alaoji Power Plant both to be completed in six months; doubling the capacity of the Lagos-Escravos Pipeline from one billion standard cubic feet,

Construction of a 504M Gas Turbine Power Station in simple cycle configuration

Drilling Rig

5Cover Story

CONTINUES ON PAGE 6

SCF, per day to two billion scf/d, to be completed by end 2012; the Rumuoji-Obigbo-Imo River Pipeline, and a host of many others.

According to Ige, these pipelines are meant “to bridge the gap between excess gas availability in East, shortage in the West, and significantly boost gas availability to the power sector.”

I n t h e a r e a o f industrialization, he said that approval has been given for the construction of the Koko free Trade Zone, which will be s u p p o r t e d w i t h a 4 0 -kilometer pipeline that will f e e d t h e f e r t i l i z e r , petrochemical and methanol plants to be located there.

He said the objective is to make Koko, “a gas based industrial city, the biggest of its kind south of Sub-Saharan Africa.”

He added that government also plans to set up another industrial hub in Akwa Ibom and Calabar with the location of fertilizer and methanol plants, and in the Rivers axis, “issued the gas purchase order for two fertilizer plants, and methanol plant around the Onne Free Trade Zone area.”

Ige explained that these developments are targeted at “c rea t ing an enabl ing environment that will reduce the risks that the people face, and we phased the activities

Nigeria tackles infrastructure challengesCONTINUED FROM PAGE 4

Mrs. Diezani Alison-Madueke

in a manner that reduces the risks of the projects and s h o r e s i n v e s t o r s ’ confidence.”

Investment opportunitiesW i t h a l l o f t h e s e

infrastructures coming on stream, Ige argued that investment opportunities abound in the areas of:

·Pipelines for gas gathering and distribution

· C e n t r a l p r o c e s s i n g facilities to optimize gas resources

·Liquefied Petroleum Gas, LPG for domestic and export

· C i v i l a n d p o r t s infrastructures at the FTZs

Industry reformsS i n c e t h e r e t u r n o f

democratic rule in the c o u n t r y, N i g e r i a h a s embarked on a number of fundamental reforms of its energy industry, thus, setting the stage for exponential growth in the economy.

Some of these reforms and policies include efforts to halt

militancy in the Niger Delta t h r o u g h t h e A m n e s t y Programme, the signing of the Nigerian Content Act in April, the launch of the Gas Master Plan, instituting an incentive-driven gas pricing for manufacturers, approval for the construction of four refineries across the country by Chinese inves to rs , signaling an end to the wasteful era of exporting crude to other countries and impor t ing the re f ined petroleum products as well the development of a road map for the development of the power sector.

During this period, a lot of works have been done to reform the legal apparatus of the petroleum industry with the formulation of the Petroleum Industry Bill, PIB, which seeks to overhaul the management of oil and gas resources in the country.

P r e s i d e n t J o n a t h a n described the Gas Revolution as the Rebirth of Nigeria’s Industrialisation, and vital for the diversification of the economy and for national development.

“This aspiration to re-

industrialise Nigeria is aggressive and can only be a c h i e v e d t h r o u g h a revolution. The focus is to c a t a l y s e a m a j o r industrialisation of the country by seeding in a few anchor investments that have the highest potential to have far reaching secondary multiplier effect on the economy,” he said during the launch.

Jonathan reassured the investors notably, Xenel of Saudi Arabia, Nagarjuna of India and Chevron Nigeria L i m i t e d , C N L , o f government’s readiness to provide the necessarily support, including the quick passage of the PIB, which serves as an anchor for sustainable and profitable investment in the Nigerian oil and gas industry.

The President hoped that by 2014, Nigeria would have been positioned firmly as the undisputed regional hub for gas based industries. “We would by then, be producing enough fertilizer to create a self sufficient country and a net exporter of fertilizer and food to the world. We would be the leading regional centre for petrochemical production and manufacture of petrochemical related products both for local and export use,” he added.

Indigenous triumphA l e a d i n g N i g e r i a n

indigenous oil company, the Oando Group, recently made history with the successful comple t ion o f a 128-kilometre gas pipeline system from Akwa Ibom to Cross River State, built by one of its subsidiaries, Oando Gas and Power.

A l i s o n - M a d u e k e , immediately announced that the inauguration of the p r o j e c t m a r k e d t h e successful take-off of the gas revolution programme of the Federal Government.

Speaking during the inaugurat ion, Oando ’s Group Chief Executive Officer, Mr. Wale Tinubu, said the pipeline was built under a joint venture ar rangement wi th the Nigerian Gas Company, NGC, a subsidiary of the NNPC. He disclosed that the 18-inch pipeline would accelerate industrialisation in the South-south region by providing cheaper, safer, Kanji Dam

6Cover Story

cleaner and environmentally friendly fuel to industries in the region.

Tinubu said his company pioneered the private sector pipeline and distribution of natural gas to industrial and commercial consumers in Nigeria.

Alison-Madueke said the completion of the project marked the successful take-off of the gas revolution programme of the Federal Government, which targets a $ 2 5 b i l l i o n w o r t h o f investment, and would generate about $10 billion over the next three years. According to her, over 500,000 direct and indirect jobs are expected to be created from the Oando gas project and other similar projects contained in the gas revolution agenda.

Speaking with Sweetcrude on the sidelines of the launch, the minister disclosed that ongoing pipeline projects are estimated to cost about $2 billion.

According to her, the President has “a strong vision a n d p a s s i o n t o r e -

industrialise Nigeria using the vast natural resources that the country is so richly endowed with. Mr. President is determined to ensure that the efficient and effective utilisation of our natural gas resources wi l l impac t positively on the lives of every Nigerian.”

She added that the Federal government’s gas agenda, both domestic and export, clearly paves the way for Nigeria to be a regional leader with all the attendant benefits.

“ T h a t a g e n d a w i l l n e c e s s i t a t e a n unprecedented growth in our gas supply, from the current one billion cubic feet per day to over 10 billion cubic feet per day by 2020. Realising this growth calls for a radical review of how the nationwide gas potential is harnessed,” she said.

She further noted that in order to grow the gas industry at the envisioned pace, there must be flexibility i n o u r g a s r e s o u r c e development and supply base. “This calls for the strategic development of various inland basins, in

CONTINUED FROM PAGE 5 addition to the Niger Delta and offshore basins. Over the next five years, we will be prioritising about $1 billion for further seismic data gathering, aeromagnetic surveys, exploration and appra i sa l d r i l l ing . By enhancing the prospectivity of these basins, we hope to build significant supply bases across the various geopolitical zones that complement the existing gas supply centres in the Niger Delta,” she added.

Economic revivalPart of the agenda is to

make the petrochemical project alone the largest industrial complex in Africa, p r o d u c i n g o v e r 1 5 0 containers worth of products. These products will enable the growth of numerous d o w n s t r e a m p l a s t i c manufacturing industries. With these, secondary industries such as the high end printed circuit boards, car dashboards etc. can be established here in Nigeria.

The spiral effect of such a h u g e p l a n t i s t h e r e d e v e l o p m e n t a n d expansion of the port facilities near the plant

locations. This will create a hub o f economic and commercial activity around the hither-to quiet port towns.

The fertilizer plants and their customized blending plants will result in a radical

t r ans fo r mat ion o f the n a t i o n ’ s a g r i c u l t u r a l p r o d u c t i v i t y f r o m subsistence farming to full scale industrial farming. The concept of customized b l e n d i n g p l a n t s a s introduced by this project will ensure that the fertilizer is formulated to suit the type of soil in the zone resulting in enhanced productivity. Also, increased productivity will lead to the establishment of many agro process ing industries to cope with the production growth that will emerge.

B e y o n d t h e s p e c i f i c projects being launched in the initiative, it is expected that the various gas pipeline projects will revive the many tex t i le indus t r ies and numerous other industries in the North, which have hitherto shut down as a result of high energy costs. Natural gas will replace fuel oil as fuel for industrial boilers.

Wealth creationIndustry experts estimate

t h a t o v e r 1 0 0 , 0 0 0 engineering design and construction related jobs would be created from 2012 and beyond to deliver all these plants. Engineers will be required to participate in t h e d e s i g n o f t h e petrochemical, fertilizer, central processing facilities and numerous pipeline projects.

Local fabrication yards will need to gear up capacity to p r o v i d e r e l e v a n t c o n s t r u c t i o n s u p p o r t . Skilled workers such as welders, fitters etc. will also be required. The civil construction effort required both onshore and at the ports

Clusters of gas pipeline

7Cover Story

will impact on demand for cement.

Government said the strategy adopted for the fertilizer project, for instance, means it would expect a signif icant increase in e m p l o y m e n t f r o m t h e agricultural sector. In total this initiative will result in over 500,000 direct and i n d i r e c t j o b s f r o m construction, logistics, hotel and hospitality service, fabrication, banking and above all agriculture.

As government delivers the LPG agenda, there will be a boost in the disposable income of households as cheaper fue l becomes available. In particular, women in smal l scale catering business will benefit significantly from the relative cheapness of LPG.

Nigerian Content lawThis initiative provides a

test bed to actualise the intent of the Nigerian Content Act which was signed into law by P r e s i d e n t G o o d l u c k Jonathan last year. Before

the re fo r ms , p rev ious governments paid lip service to the development of local content, which led to the loss of over 85 percent of in-count r y jobs to o ther countries.

However, it is expected that the full application of the Law will stimulate these jobs and opportunities, and a significant portion of the jobs created will be for Nigerians. The nation’s service sector should benefit significantly from these opportunities.

According to the President, “When we are done we would have created a Nigeria that we all would be proud of. Our youths can clearly see the roadmap to engagement and self worth as they get gainfully employed. This is not just a plan, this is now in action.”

The PIB nightmareHowever, observers fear

that this economic revolution may be jeopardised by the delay in the passage of the PIB. Indeed, hopes of a quick passage for the bill, which has been de layed fo r upwards of three years at the

CONTINUED FROM PAGE 13 National Assembly, may have b e e n d a s h e d b y t h e inglorious politicking in the legislature, and matters may get worse as the new legislature, in the habit of the last, continue to thumb its nose at the PIB.

The impasse in the federal legislature has not been he lped by the ob tuse racketeering by various stakeholders including the NNPC, the international oil companies, IOCs, and even t h e o r g a n i s e d l a b o u r organisations.

Experts believe that the long delay in the passage of the bill has blocked billions of dollars worth of investments in Nigeria’s oil and gas industry. For instance, the Royal Dutch Shell said it put aside $40 billion worth of potential investment in deepwater oil projects on hold as it awaits the outcome of the bill. Other oil majors like Chevron, Exxon Mobil, Texaco, ENI and Total, all consolidated their positions b y f r o w n i n g a t s o m e provisions in the PIB.

A f o r m e r R e g i o n a l

Polyolefin plant

Executive Vice President of Shel l Explorat ion and Production, Africa, Ms. Ann Pickard, had lamented the “failure to recognise that we all benefit from taking a fair share of a growing industry rather than an excessive share of a declining one; an unwillingness by some to stand up and take decisions.”

P r e s i d e n t J o n a t h a n , obviously bothered by the protracted delay in the passage of the PIB, was effusive with thanks to Saudi Arabia, India, Italy and the USA, noting that, “Your decision to invest in Nigeria is a testament of the confidence you have both in our vision and our resources. I assure you that as you have taken the bold step to invest, even when many things hinge on passage of the PIB; government will support you every step of the way to ensure that this is delivered s u c c e s s f u l l y . Y o u r commitment will serve as a challenge to other investors elsewhere, letting them know that Nigeria is indeed open for business.”

SHELL

SHELL

Oil 10

igerian CONTENT INITIATIVECONTENT INITIATIVECONTENT INITIATIVECONTENT INITIATIVE

Dr. Ibilola Amao

Every three years t h e W o r l d P e t r o l e u m C o u n c i l r e c o g n i z e s

some of the most outstanding projects and innovations in the oil and gas sector with the WPC Excellence Awards, WPCEA, for Technological Development and Social Responsibility.

The theme of this year’s conference is : Energy Solutions for All - Promoting Cooperation, Innovation and Investment, and will hold at the Qatar National Convention Centre, between December 4 and 8, 2011

HE Abdulla Bin Hamad Al Attiyah, Deputy Prime Minister and Chief of Amiri

Diwan of Qatar, will be presenting the prestigious awards to the WPC EA winners on Monday, 5th December, the first day of the 20th World Petroleum Congress in Doha, Qatar. This is the first time the Congress is coming to the Middle East and it is already setting new records with 5000 delegates, 500 CEOs and 50 ministers expected.

Pierce Riemer, Director General, of the World Petroleum Council, was delighted with the high standard of submissions: “We recognize companies engaged in the oil and gas industry for promoting or o p e r a t i n g w i t h h i g h

excellence standards with the WPC Excellence Awards and we have been impressed with the high level of the nominated projects. With over 100 submissions the independent judging panel had an extremely difficult task selecting the best projects.”

W P C E A f o r S o c i a l Responsibility – Finalists (alphabetically by company)

All the projects selected by the judges will be showcased during the 20th World Petroleum Congress on Monday December 5, 2011 at the Digital Poster Plaza (HALL 8) between 14:30 to 16:00.

T h e Wo r l d Pe t r o l e u m Congress consists of a 5-day congress, the largest of its kind in the world with 5000 delegates, 600 media and over 550 presenters. Held alongside the congress and in the same venue is the exhibition of the World Petroleum Congress. It features exhibits from the national committees of the World Petroleum Council where the most prestigious n a t i o n a l o i l a n d g a s companies and agencies of the world are present. It also f ea tu res a l l the mos t important international oil and gas companies in the world alongside the key

suppliers, service companies and manufacturers. This is the only existing global exhibition dedicated to the oil, gas and energy industry.

About the World Petroleum CouncilThe World Petroleum Council was founded in London in 1933. It is an international, unbiased, non-poli t ical organisation that provides a forum for discussing world issues facing the oil and gas indus t r y. The WPC i s dedicated to scienti f ic advances in the oil and gas indus t r ies , t echno logy transfer and the promotion of the management of the world’s petroleum resources for the benefit of mankind.

Every three years, the World Petroleum Council hosts an international oil and gas congress hosted by one of its member countries. The 20th World Petroleum Congress will take place in Qatar from the 4-8 December 2011 and will be the first time the Congress comes to the Middle East in its 75 year history.

Tr e n d s a n d o u t l o o k s integral to the future success of the industry are the focus of discussions, forums and presentations. Delegates e x p l o r e i n t e r n a t i o n a l business opportunit ies, exchange ideas on global issues, network.

I was so busy last year with the enactment of the Nigerian Oil and Gas

Industry Content Development Act that I did not see or smell any

international airport in 2010. I resorted to conducting all our businesses

through email, skype, phone calls and scheduled meetings with

international partners and customers that were visiting Nigeria. It made

a lot of sense to focus on internal and national issues. This year, I have

had to travel by compulsion and I have been subjected to the deplorable

state of our airports which is fast becoming a nightmare.

Some of the requirements of Nigerian Content are Capacity building

through partnerships, training, research and development etc requires

setting up facilities in-country and engaging experts to put things

together and commission facilities. In-country human capital

development specialist programmes, such as: gas conditioning, gas

processing, pipelines and Subsea engineering etc., require foreign

facilitators. I feel pained by what we subject ourselves as Nigerians and

our foreign guests to at the international airports. Surely, we are not

animals. Why should I land at an airport that has no functional air-

conditioning? Why should casualties be caused by a dysfunctional

escalator at MM International Airport? Why should the carousels fail

and cause undue hardship for those waiting for their luggage whilst

some employees have to manually move suitcases? I worked it out. It is

either that the Ministers of Aviation and Transport have been too busy to

spring a surprise inspection on the team at the international airports, all

the maintenance staff at MMA have been sacked or are on retirement,

there is a faulty reporting system, diesel supply is an issue, the

generators that can power the air-conditioning are faulty, the air

conditioners are faulty and we have not got the foggiest idea of the

volume of traffic that use the airport vis-à-vis the design capacity of the

airport.

Whilst Nigerians in diaspora lambasted the minister in absentia,

moaned and groaned about how bad Nigeria is, I did request that we all

shut up our mouths because our talking for the past umpteen years has

not yielded much result. I enjoined all the complainers that I managed to

speak with to do something no matter how small so that we see the

difference that is much required. Hopefully, this piece would be read by

someone who can either escalate the problem or do something about the

pathetic situation that our international airport has found itself in.

Can our President and his Ministers invest our money in the upgrade

of the primary international airports which are no longer fit-for-purpose

as well as fix the major roads that transport equipments and supplies?.

When would there be an extension to the airport? Since the amount

charged in taxes is astronomical, why can’t the government put this

income in to some good use and invest it in providing a better service to

its customers (the airline companies and us passengers)?. We can not

afford to treat ourselves as animals. How do we expect to be respected

by any foreigner who goes through a dysfunctional airport? Our

government officials from the presidency to the governors jet out

routinely to foreign countries soliciting for investors very un-mindful of

what first impression these investors would have of Nigeria passing

through our airports: the structure; the equipments; the facilities and

most critically the attitude of airport officials?

Now back to Nigerian Content, what infrastructure, conducive

environment for investment and logistics must be in place as a minimum

requirement for efficient implementation of the Act? Is NCDMB aware

of these on-going pains and how it is impacting on the bottom line of the

relevant stakeholders? I am proposing that the Minister of aviation and

transport respectively read out the riot act to the appropriate personnel

and bodies and ensures that rather than return money to the coffers of

Government at the end of the year that appropriate and published

expenditure be undertaken to alleviate the pain and frustration of all

international and local travellers. We can not afford to continue with the

lackadaisical manner in which we run facilities that are dilapidated

without scheduled maintenance programmes. We can not afford to loose

valuable lives on the express and motorways because someone has not

done their job or money has been embezzled. Cry my beloved country

because we are no longer at ease and I am worried that the centre is no

longer able to hold. We really need help. If we can put the time and effort

expended in planning parties, awards and conferences into strategic

thinking, planning, project execution and implementation we all would

be the better for it. Fundamental to Nigerian Content implementation is

good, focussed, proactive and functioning leadership.

Oil 11

Queue for kerosene

CLARA NWACHUKWU

Stat Marine, International Energy seal deal

rench multinational, Stat Marine Holding, has F

s i g n e d a p a r t n e r s h i p agreement with International Energy Services Limited, IESL, as part of the drive to h a r n e s s l o c a l c o n t e n t opportunities in the Nigerian Oil and Gas sector.

Stat Marine, currently operating in France, UK, USA, and Angola is a specialist in offshore engineering and t e c h n i c a l c o n s u l t a n c y, embracing subsea inspection a n d m o n i t o r i n g , f l o w m a n a g e m e n t o p e r a t i n g philosophy and procedures, s u b s e a s y s t e m d e s i g n ( s t r u c t u r e a n d hydrodynamics), fabrication and installation supervision, as well as marine renewable energy (foundation design installation and maintenance and inspection).

I n t e r n a t i o n a l E n e r g y Services on its part is a well known indigenous oil and gas services company engaged in oil and gas engineering designs, project management and supervision, technical s e r v i c e s a n d f a c i l i t y m a i n t e n a n c e , Q H S E , c o n s u l t a n c y a n d environmental/analytical laboratory services, solar and renewable energy design and ins ta l la t ion as wel l as t e c h n i c a l r e c r u i t m e n t , manpower development and training.

T h e d e a l g i v e s b o t h companies the owning of Stat Marine Nigeria Limited, STMNL, and will provide the opportunity to generate new businesses, excite growth, as well as build new client relationships through shared m a r k e t i n g e f f o r t s , c o m p l e m e n t e d b y S t a t Marine’s global reach and worldwide relationships, to be combined with IESL local presence and excel lent capabilities, and ensure excellent technical training of personnel in new products and technologies in the offshore production facilities.

Speaking during the signing of the agreement between Stat Marine and International Energy, Mr. Luc Delclos, President, Stat Marine, said that the company decided to team up with IESL as part of its initiative to work with a proactive Nigerian company to grow their business and transfer technology to a local company.

Delclos further said the agreement demonstrates the company’s support for the local content policy of the Federal Government of Nigeria.

For a short while,

many Nigerians

had some reprieve

w i t h t h e

availability and

price of kerosene with the

advent o f the Niger ian

N a t i o n a l P e t r o l e u m

Corporation, NNPC, and

Capital Oil and Gas Industries

Kero Direct, programme.

Hitherto, not only was the

product very scarce leading to

high levels of trees felling, price

also shot to the roof, selling for

as high as between N150 and

N250 per litre depending on

the outlet and location.

However, the reprieve is now

short-lived, as scarcity is

gradually creeping back and

with price rising again, which

many households see as an

o m e n i n v i e w o f t h e

forthcoming Yuletides.

Sweetcrude learnt that this is

because the NNPC/Capital Oil

Kero Direct, which was a huge

success while it was on, may

have been hijacked by industry

cabals, who also wanted a piece

of the pie.

At the peak of the kerosene

s c a r c i t y , t h e F e d e r a l

Government had ordered the

M i n i s t r y o f Pe t r o l e u m

Resources, to crash the price of

kerosene and also make the

product available to Nigerians

who depend on it for most o

their energy needs.

The ministry with the

assistance of the NNPC Retail

Limited, in conjunction with

C a p i t a l O i l , a m a j o r

downstream player reputed to

have the single largest private

depot and storage facility in

sub-Sahara Africa, devised the

direct sales to households.

Through the support of the

various local government

councils in each state where it

was launched, Nigerians were

able to buy kerosene at the

government approved price of

N50/litre. The project kicked

off in July, as a pilot scheme to

address the lingering kerosene

scarcity across the country.

Under the scheme, the

Pipel ines and Products

Marketing Company, PPMC, a

subsidiary of the NNPC

provided the product to be sold

to end users through the use of

Capital Oil ultra modern

dispensing trucks.

The direct sales scheme,

which commenced in Lagos,

was extended to other states

including Anambra, Kaduna,

Imo and the Federal Capital

Territory, Abuja, and was billed

to go round the country until

the cabals came in.

it was gathered that some

cabals within the NNPC, who

were not happy that the

scheme was not kept within

the fold began to frustrate the

project, and caused the

stoppage of supply to Capital

Oil depots for onward sales to

the public, thereby truncating

the scheme.

However, the Managing

Director of Capital oil, Mr.

Ifeanyi Patrick Ubah, could not

be reached to speak on the

issue, as a senior management

official in his company

confirmed to Sweetcrude that

he was away on studies

abroad.

He said, “My MD (Ubah) is

on course abroad, he will soon

be back to the country to

answer your questions; I am

not competent to speak on it.”

It would be recalled that

Ubah said he had acquired

seven large barges and five tug

boats, to ensure the success of

the schemes. “Capital Oil has

been very concerned about the

difficulty in getting kerosene

for domestic use. It is in

response to this that the

company came up with this

innovation of deploying mobile

filling stations with standard

dispensing pumps to deliver

kerosene at official price of N50

per litre to Nigerians. The

scheme will afford our people

greater access to the product

with a view to reducing the use

of charcoal and fire woods,

which are hazardous to

health.”

Furthermore, at the launch of

the programme, the NNPC had

promised to provide the

product to all Nigerians across

t h e c o u n t r y . N N P C ’ s

spokesman, Dr. Levi Ajuonuma

had said: “Our determination

to arrest this artificial challenge

in the distribution of kerosene

to Nigerians is total. What we

are doing here today is to

guarantee that the product gets

to the end user at the right time

and correct price of N50 per

litre.”

Oil 12

YEMIE ADEOYE

Ahead of the f o r t h c o m i n g C h r i s t m a s festivity and the envisaged

heavy movement of people fo r the ho l idays , the N i g e r i a n N a t i o n a l Petroleum Corporation, NNPC, has stepped up fuel supply to the Federal Capital Territory Abuja and across the country to meet emands.

T h e G r o u p G e n e r a l Manager, Group Public Affairs Division of the NNPC, Dr Levi Ajuonuma, disclosed this while briefing journalists on the news of alleged resurgence of fuel queues around Abuja.

He explained that the observed panic-induced fuel queues in Abuja have nothing to do with shortage in supply of petroleum products and that marketers and private depot owners are being adequately supplied with products.

“As at today, the PPMC has stepped up supply of products to Abuja and

NNPC building, Abuja

environs from the normal 150 trucks per day to 224 trucks. This s i tuation wil l be sustained from now through the period of Christmas and New Year festivities till January. I can assure you there is no shortage of PMS or any other petroleum product now or in the foreseeable future as the

PPMC has a 54-day fuel sufficiency in strategic reserve,” Ajuonuma stated.

He said the complaints by some marketers that they could not lift products over the weekend because the officials of the Petroleum Equalization Fund, PEF, were not available for inspection as a result of a

purported strike by staff of the agency was found not to be the case as the Executive Secre tar y o f PEF has confirmed that the staff of the agency did not at anytime embark on strike.

The NNPC spokesman warned fuel station owners and private depot owners to shun any activity that could breach the effective supply and dispensing of products to members of the public, adding that anyone caught hoarding products or not dispensing products from all i t s p u m p s w i l l b e appropriately sanctioned.

Ajuonuma said NNPC was working in concert with other relevant agencies to ensure that petroleum products get to the end users at approved prices.

He urged members of the public to desist from panic buying as there are enough products to go round even at the peak of demand as envisaged in the upcoming end of year festive season.

He called on stakeholders to avoid speculating on deregulation as government will make a pronouncement on it in due course.

… PEFMB moves to enhance products distribution during YuletideYEMIE ADEOYE

he Petro leum E q u a l i s a t i o n F u n d M a n a g e m e n t Board, PEFMB, T

has evolved measures to enhance the loading and transportation of petroleum products in anticipation of the increased demand during the Christmas holidays and end-of year-travel periods.To this end, the board has constituted task forces to accelerate the processing and payment of marketers, as contained in a statement

issued by the Agency spokesman, Mr. Goody Nnadi, and made available to Sweetcrude in Lagos.It reads in part: “Also, the Board is collaborating with the marketing companies and other agencies to mitigate any hindrances to effective service delivery at all distribution facilities. In addition, high level staff are being dispatched to the depots to ensure hitch-free l o a d i n g o f p e t r o l e u m products by marketers.“Furthermore, the Board has constituted task forces to

accelerate the processing and payment of marketers’ bridging and equalization claims to enable them move more products. The task forces drawn from the depots will be an addition to other regular staff permanently engaged in the processing of claims.”Nnadi stated further that these measures are intended to speed up, and guarantee e f f i c i e n t s u p p l y a n d distribution of petroleum products across the nation.“The Board will like to clarify that its staff have not

embarked on any strike as reported in a section of the media, rather, some members of the union sympathetic to the Branch Chairman who was disciplined for gross misconduct refused to carry out their regular duties. This led to the picketing of our Lagos office by non members of staff of the organisation.”H e a l s o d e n i e d t h e insinuations that the Branch Chairman of PENGASSAN was suspended for any other reason than gross official misconduct, saying that the Board reserved the right.

Oil 13

Modern oil well used for oil field exploration

NNENNA EZEAH

Afren Nigeria has

r e c o r d e d a

s i g n i f i c a n t

advancement in

its Ebok project

where production is ramping

u p a n d t h e P h a s e 2

development is on track for

production by year end.

The update was made

following a visit to Lagos and

the company’s Ebok project by

a delegation of international

analysts including those from

Morgan Stanley, Merrill Lynch

and Alliance Bernstein, who

were escorted by Afren Plc

Chief Executive Officer, Mr.

Osman Shahenshah, and

Afren Nigeria Managing

D i r e c t o r, M r. Ad e b a y o

Ayorinde.

Speaking in Lagos, Afren

C h a i r m a n , M r. E g b e r t

Imomoh, expressed delight on

the visit of the analysts from

some of the world’s leading

investment houses. He said,

“Production at Ebok Phase1 is

responding in line with

prognosis to water injection’

a n d i s b e i n g s t e a d i l y

increased,” adding that “a

n u m b e r o f a d d i t i o n a l

production wells will be

brought on-stream by year

end. The company remains in a

strong position financially,

with significant cash resources

available and a profitable and

growing production base

underpinning an internally

f u n d e d f o r w a r d w o r k

programme.”

He further explained “A total

of four out of the five planned

development wells have been

drilled and completed as part

of Ebok development Phase 2,

developing the West Fault

Block area of the field. The

company expects to have

completed drilling operations

and have the fifth production

well available shortly and for

all five wells to have been

commissioned and bought on-

stream during December.

Production tests on available

wells have yielded rates that

exceed expectations and the

c o m p a n y ex p e c t s f u l l y

developed production capacity

of the five wells to be greater

than initially forecast.”

Imomoh also said production

at Ebok Phase 1, was steadily

increasing towards the upper

end of the targeted range.

“Having achieved a strong

production test rate from the

D1 reservoir in the Central

Area of the field during the first

half of the year, the company

subsequently prioritized full

development of the reservoir at

this location and is in the

process of batch drilling three

additional production wells. It

is expected that these wells will

be commissioned and bought

on stream by end 2011.”

Over all, about $312.2 million

was generated during the

period, reflecting higher price

realizations from the Okoro

field and increased lifting in

the third quarter of the year.

Oil and gas inventory at

September 30, 2011 was $49.2

million (December 31, 2010,

$14.2 million), representing

approximately 600,000 barrels

at Ebok and 300,000 barrels at

Okoro net to Afren.

Profi t f rom continuing

activities before tax in the

period was $113.0 million

(2010: $75.3 million). This

reflects an increase in gross

p ro f i t o f $39 .3 mi l l i on

compared to the prior period,

but also includes the effect of

gains on derivative financial

instruments of $5.2 million

(2010: loss of $3.6 million);

finance costs of S$36.8 million

(2010: $8.7 million); and a

share of gain of an associate of

$17.4 million (2010: share of

loss of $0.6 million).

Normalized profit in the

period was $49.1 million (2010:

$58.8 million). Normalised

profit excludes the effect of

unrealized hedge movements,

share related costs, the cost of

early debt repayment and the

share of gain on an associate.

FOI Act a tool for implementing NEITI reportsBOLAJI AJALA

he Nigeria Extractive Industries Transparency T

Initiative, NEITI, has said t h a t t h e f r e e d o m o f Information Act, FOI, is a tool for effective implementation of NEITI, audit report.According to the agency’s new publication, NEITI Open Audit, the signing of the FOI into law has s t r e n g t h e n e d implementation of EITI processes in Nigeria, whose principle is built on public disclosures of payments and r e c e i p t s i n r e v e n u e m a n a g e m e n t a n d governance process of the extractive sector.A c c o r d i n g t o N E I T I Executive Secretary, Mrs. Z a i n a b A h m e d , “ t h e Freedom of Information Act is t imely, supportive and complimentary to NEITI Act 2007 especially at this time that NEITI is set to expand its operations to the solid minerals sector, resource disbursement and physical allocation of revenues to tiers and level of governments.”She noted that the basic goal of NEITI/EITI process which the Freedom of Information seeks to promote is to empower cit izens with information, to ask informed quest ions , debate and dialogue on resource use and allocations with a view to making quality contributions on development issues that shape their daily lives.“Just like the NEITI Act of 2007, the Freedom of Information Act 2011, will encourage more disclosures by companies and agencies to provide information to NEITI Auditors on who paid or received what in revenue f low sand gover nance procedures in the oil, gas and solid minerals sector. This information is fundamental for development planning, a c c o u n t a b i l i t y a n d transparency,” she added.Accordingly, she said both laws were important and complimentary, aimed at pulling down “all boundaries of secrecy and enthrone openness, transparency, voluntary disclosures as well as dissemination of public t ransact ions to enable citizens make valuable inputs on issues that affect their future.”

FocusF 14

David Ige

Dr David Ige is

t h e G r o u p

E x e c u t i v e

Director, Gas

and Power; in

this interview with Clara

Nwachukwu, he speaks of

Federal Government’s efforts to

diversify and industrialise the

economy through infrastructure

provisions. Excerpts:

How would you describe the

o b j e c t i v e s o f t h e g a s

revolution, with a view to

government’s plans o monetise

our gas resources and also

attracting foreign direct

investments?

I think it is always a very good

place to start by reiterating our

gas potential. As a country, you

know we have proven gas

reserves of about 187 trillion

cubic feet, and we also have

undiscovered potential as high

as about 600 trillion cubic feet. If

you brought all hose together,

you find out that our gas

reserves in energy terms is

almost about four to five times

our oil reserves. So when people

rightly describe Nigeria as a gas

province with some oil, they are

not far from the truth.

The agenda in the gas

revolution is to translate that gas

potential into true wealth for the

country, and according to Mr.

President’s plan, we are

pursuing that from three distinct

anchors. The first is gas to

power, the second is gas for gas

base industrialisation, and the

third is gas for export, which

includes regional and export

Liquefied Natural gas, LNG.

These are the three legs of our

entire gas agenda. For the

purpose of the gas revolution I’ll

focus on the domestic part of the

programmes, which are the gas

to power and the gas for

industrialisation.

For gas to power, the objective

is simple; we want to make as

much gas available to see a

significant increase in power

generating capacity. And based

on our first phase of activities

under the gas revolution, we’re

looking to a four-fold increase in

gas to power between now and

2015. So we expect that from the

current level of supply, we are

looking to grow gas supply by

about 3,200million cubic feet

per day over the next four years,

specifically to power. So that

will translate to a huge growth

in generating capacity.

F o r g a s b a s e d

i n d u s t r i a l i s a t i o n , w e ’ r e

preparing in the first phase

across the Niger Delta broadly,

three major centres for gas

processing extraction and gas

based industries. The reason we

have done that is that we are

trying to reposition Nigeria as

the preferred destination for

gas based industries like

fertilizer, petrochemical and

methanol.

When you talk about preferred

destination in has to be

p r o x i m i t y t o t h e g a s ,

affordability of the gas, and

competitiveness of the products

y o u m a ke o u t o f t h o s e

businesses. You will never be

the preferred location if the

fertilizer that is made in Nigeria

cannot compete internationally.

So, we’ve identified three areas

across the Niger Delta, as being

areas for potential industrial

clusters for petrochemical,

fertliser and methanol plants in

the proximity of gas processing

facilities, and we are gradually

implementing those as well. If

you look at all of those, they are

h u g e t r a n s f o r m a t i o n a l

initiatives in the country.

And how far have you gone

with their implementations?

Let me take the gas to power

first, we have started to increase

gas availability to the power

sector and you will notice that

there has been a steady increase

in gas to power lately, and we

expect tha t progress to

continue.

To s u p p o r t t h a t , t h e

government has made huge

i n v e s t m e n t s i n c r i t i c a l

infrastructure. For example, as I

speak, the Federal Executive

Council has approved the

c o n t r a c t f o r t h e I t o k i -

Olorunshogo Pipeline, which is

a permanent gas pipeline that

will bring gas to Olorunshogo

Power Plant and the environs.

That pipeline project contract

has been awarded and work has

started and will be completed

within the next six months.

We have also awarded the

contract for Alaoji Pipeline, a

permanent pipeline, which will

bring gas also from Imo River to

Alaoji Power Plant, and also to

be completed within six months,

and this will significantly

increase gas availability to

Alaoji Power Plant, to enable it

produce about one Giga watt of

electricity. Again, the pipeline is

ongoing and is due in another

six months as we speak.

Similarly, we have awarded

the contract for the expansion of

the Lagos-Escravos Pipeline,

essent ial ly doubl ing the

capacity from one billion

standard cubic feet per day to

two billion scf/d. The pipes for

that project have started

arriving at the ports and

construction work will start

shortly. The engineering

designs have been completed

and we expect that pipeline to

be completed by the end of next

year, which will significantly

enhance gas availability to all

the power plants along the

pipeline system to Lagos.

Also, we have awarded the

contract for the Rumuoji-

Obigbo-Imo River Pipeline,

which will bring gas to Obiigbo

node, and make gas available in

that axis . Yesterday, we

commissioned the pipeline from

the Obiigbo node through Akwa

Ibom to Calabar, which will

bring gas to the Calabar Power

Plant as well as to the industries

in Calabar.

And as we speak, we are also

finalising engineering studies

on the Oso-Qua Ibo Terminal,

QIT, which will bring gas from

offshore ExxonMobil to shore in

CONTINUES ON PAGE 14

Focus 15

NLNG Ship

Akwa Ibom QIT.

So with all of these major

infrastructure works most of

which will be completed

between six months and 18

months from now, we are very

well poised to bridge the gap

between excess gas availability

in East, shortage in the West,

and significantly boost gas

availability to the power sector.

And we are making extremely

good progress in that direction.

As you know, we are very

close now to awarding the

contract for the Ob-Ob-Oben

Pipeline, which will link the

East to the West. The tendering

process is going through the

commercial phase right now. To

accelerate that, we had to

mod i fy the con t rac t ing

challenges – we are now re-

submitting tenders for two

contractors starting from both

CONTINUED FROM PAGE 14sides, so that we can accelerate

delivery. In parallel with that

we are also dealing with the

procurement of the pipes

separately to also accelerate

pipes availability for it.

Essentially, the critical

backbone infrastructure to

support both our gas to power

a g e n d a a n d o u r

industrialisation agenda are

being put in place.

Now coming to the gas

industrialisation, the first phase

is in the West Delta, which is

centred around the Koko free

Trade Zone. Part of what we are

looking out for is that we are

doing additional studies to

harness our gas resources.

From Oben node, we are

doing a 40-kilometer pipeline

that will establish gas presence

at Koko, because that is where

the fertilizer, petrochemical

and methanol plants will be

located, so we are evaluating

that right now. We’ve engaged a

consulting firm to do that.

Specifically around Koko, we

are making good progress, as

over the last few days we’ve got

technical consultants on

ground, who are have gone to

check the Benin River and

Escravos River, all the way to

the Atlantic Ocean, basically to

evaluate the river draft, the

navigability of the river and

identify specific requirement

for dredging to make that work.

This is because, we are trying to

create in Koko, a gas based

industrial city, the biggest of its

kind south of Sub-Saharan

Africa, and it is essential for the

success of that that we clearly

make the river navigable for the

kinds of vessels that we’ll be

looking over the life cycle of

that project. It is a very critical

element, and work is ongoing

by a reputable UK firm, is

looking at the river issues and

also in consultation with

Nigerian Ports Authority,

l o o k i n g a t t h e p o r t

infrastructure that will be

required and all the issues

related to it.

Parallel with that, further

engineering optimisation work

is going on on the central

processing facility, which is

where the gas will be processed

before it goes to the fertilizer,

petrochemicals and so on. That

is being done by keloggs and is

sponsored by the investors

themselves.

The fertilizer project is also

going on well; the Indians have

started the tendering process

for the lump sum turnkey

contractor that will build the

plant, and that process is

ongoing. We have also at the

Koko Free Trade Zone started

the Environmental Impact

Assessment, and work has been

done on the rainy season part of

it and the second season part of

it, which is being done by an

international reputable firm,

Fugurole, because EIA is

crucial before we start site

works at the FTZ.

On the petrochemical side, we

CONTINUES ON PAGE 16

Focus 16

Modern Gas Plant at Night

are working first of all between

the central processing facility

and the petrochemical plants,

optimising their concurrent

technical configurat ions,

because those two must fit

together before they are

aligned. So we are going to a

phase, where there are a lot of

engineering alignments, and

making sure that the basis are

o k a y a n d r e a d y . O u r

expectation is that once we

finish the EIA, we’ll start with

the first phase of activity on

ground, which is beginning to

clear the site in preparation for

major civil works. We hope that

we will be able to enter the site

by Q1 next year, after the

completion of the EIA and

s e c u r i n g a l l n e c e s s a r y

environmental permits from the

Ministry of the Environment.

That is where we are on that.

On the flip side of Koko, on the

extreme side, with the pipeline

commiss ioned yes te rday

between Obigbo and Calabar,

we have now also got the

potential where we have

established gas presence in

Akwa Ibom and Calabar. And

then, we are now trying to

construct another industrial hub

there for the next phase of the

gas industrialization with

fertilizer and methanol plants

located in that axis. We have

strategically structured it that

gas can come from the South

ExxonMobil and from the North

Obigbo to supply that axis

effectively, so as to boost

investors confidence that if they

have an investment there they

can have access to gas from

multiple sources.

Finally, in the central area

around the Rivers axis, we’ve

issued the gas purchase order

for two fertilizer plants, and

methanol plant around the

Onne Free Trade Zone area. So

broadly, we are working in force,

putting in place the backbone

infrastructure that will make the

gas available and consolidating

the investors and investments to

cluster the industrial parks. We

believe that once we have got

these backbone phase one

sorted out, then we can start

having investments across the

country.

So in a nutshell, that is the

status of where we are. If you

look at all of these, there is an

unprecedented amount of

investment opportunities for

investors, we have investment

opportunities in pipelines

because there is going to be a lot

of gas gathering pipelines, gas

distribution pipelines, in

addition to others.

We are looking for oil and gas

investors who may want to

participate in the central

processing facilities, there is a

huge opportunity there. CPFs

will produce a lot of LPG, so we

are also looking for investors

who may want to participate in

the LPG value chain, taking

advantage of availability

around those areas and building

a downstream LPG domestic

and export opportunities. We

are looking for genera l

infrastructure players – civil and

ports infrastructure and also

infrastructure investors that will

play a role in all the FTZs we are

working on.

Part of our strategic focus in

that regard is to make sure that

w e c r e a t e a n e n a b l i n g

environment that will reduce

the risks that the people face in

all these investments, and we

phased the activities in a

manner that reduces the risks of

the pro jects and shores

CONTINUED FROM PAGE 15 investors’ confidence.

Apart from risks reduction,

are there other incentives

available to investors?

Basically, the objective of the

government is to really catalyse

the industry for unprecedented

economic growth, and I think

apart from the numerous

incentives that exist in a typical

FTZ – as you know the FTZs

really have a lot of investment

incentives in the country; we

would, on a case by case basis

look at the requirements of

every project as well such that

where a project needs help

beyond all that are available in

the FTZ, we will give. But if you

think about it, the FTZ on its

own in Nigeria offers quite a lot

of general incentives – import

duty exemptions, accelerated

approvals and low cost access to

land and a whole range of tax

free incentives, which we

believe are about some of the

most competitive globally.

It appears government is

taking quite a handful with

regard to the infrastructure

provision, do you think all of

these can be delivered within

CONTINUES ON PAGE 17

Focus 17

LPG Tank

the time frame you have

mentioned?

Actually, if you look at the

projects I have mentioned, the

pipelines have been awarded –

the Alaoj i P ipel ine, the

Omotosho Pipeline; these are

all funded contractors and

works are ongoing. We have a

couple of other projects like the

one we just finished yesterday,

which is not a government-

funded arrangement, but

actually an Oando Group

private funding. When we are

looking at pipeline project like

the Ob-Ob-Oben, we are

l o o k i n g a t a P P P t y p e

arrangement in evaluating

them. So what we have is a

mixture, and all the critical

investments like the fertilizer,

petrochemical and methanol

a r e n o t g o v e r n m e n t

investments at all.

In the FTZs, we are looking at

strategic partnerships with the

private sector; actually, the

F T Z s d e v e l o p m e n t s a r e

intended to be private sector

led. So, we have a healthy mix of

CONTINUED FROM PAGE 16 government-led and PPPs. But

of course, as we move forward,

we expect that the involvement

of the private sector will

intensify and that is the whole

idea. Government’s investment

is to open up and unlock the

opportunities, and the private

sector should then come up and

ride on it.

Looking at the existing

investors, in this case the oil

and gas companies already

operating in Nigeria, how

supportive have they being in

terms of gas supply?

I think that is a good question.

Broadly, there is now a

realisation that gas is a valuable

commodity and a lot of potential

in monetizing your gas across

diverse markets to balance your

risks, so that is a realization that

everybody has come to very

rapidly appreciate in the last

couple of years. We have seen a

major change in the disposition

of the suppliers in the country,

based on this realisation. But

a l s o b a s e d o n Fe d e r a l

Government interventions

either through the regulations

on domestic supply obligation,

but also more positively in the

areas like pricing adjustments

and making the gas pricing

more acceptable, putting in

place commercial contracts that

are bankable and putting in

place all sorts of regulatory

frameworks that give people the

confidence that the domestic

gas market is credible and

bankable. As a result, we are

seeing a good shift in the

behaviours of the suppliers,

some more than others; but

overall, the direction is positive.

We are in a major phase of

transition and we believe that if

all the enablers and the policy

implementations that we have

proposed over the last couple of

months progressed, and

everybody sees that they work,

we believe that the shift would

even be more phenomenal than

it is now.

So apart from the Indians,

how much more interests have

the government programmes

received from the outside

world?

Actually, the interests we have

right now are from Indians,

we’ve got Saudi Arabia. Beyond

that we have a lot of interests

from American companies for

gas processing facilities, we’ve

got some interests from Korean

investors, who want to invest in

infrastructure, we’ve got

interests from diverse sources

across the world in interest in

pipelines infrastructure. So

there’s quite a diverse level of

interest from all over the world.

I think what everybody just

needs now is for some of these

things to line up clearly and we

move on to another phase

entirely.

Looking at another critical

issue affecting investment,

which is security, what is

government doing reassure

investors of the safety of their

investments?

I think this is a very crucial

issue; take for example the

Koko FTZ project where a lot of

activities are ongoing at the

moment. Initially, you get the

apprehension from investors

when they come to Koko, the

consultants, because everybody

is scared. But they’ve been all

amazed at the level of reception

they got from the communities,

the state government and other

stakeholders.

Also, I think there is a general

realisation across board in the

host areas that this will be good

for us, and our challenge now is

to make sure that we sustain

that trust through the process.

The people generally are peace

loving people, and hope that

their trust is not betrayed. This

is important for us, and some of

the options we are looking at

are participation both in terms

of equity, and also in terms of

service opportunities that exist

there.

Secondly, at some point in

time, there will be a road show

locally to local investors

appraising them of some of the

opportunities that will arise for

them from hospitality to just

name it; ahead of time so they

can participate and benefit from

the economic boom. Also, from

the Amnesty Initiative of Mr.

President, which is going so

well, and we also hope to

identify some talents that can be

engaged. When all of these get

s tar ted , a t the peak o f

construction activities, we are

looking at tens of thousands of

people being employed on the

site, so we believe that there will

b e s u f f i c i e n t e c o n o m i c

activities to drown the urge for

criminal tendencies that some

people may have. So, I think we

are starting off very well and it is

essential that we sustain it by

not betraying the trust of the

people.

You’ve talked about the

acceptance of investors as well

CONTINUES ON PAGE 18

Focus 18

as community acceptance of

p r o j e c t s , w o u l d t h e

communities be involved by

way of equity from the onset?

Yes, I think the broad structure

in the master plan allows for

strategic investment by the state

and host communities. We have

always emphasized to the

investors in CPFs; if you look at

the information memorandum,

you’ll see that this

people have a

right to

p lay,

and

s o

we are

keeping to

that and we make

sure that that happens. It is

then up to the state

governments and host

communi t ies to

d e v e l o p t h e

a p p r o p r i a t e

i n s t r u m e n t s o r

vehicles through which

they want to participate. So I

think the broad frame work is to

encourage state and host

governments’ participation as

much as possible.

Still on the local investors, in

terms of Nigeria content

development, would the

foreign partners carry along

the indigenous companies with

a v i e w t o t r a n s f e r i n g

technology?

You know there is a legislative

provision now through the

Nigerian Content Act that

enforces it and awards the

different segments within

engineering and so on. It is

being made clear to the

investors that the national

content law must be adhered to

in its fullness, and there is a

complete recognition of this fact

and it is embraced by investors.

That is why one of the things

that we have to do is to very

early is to very quickly, as soon

we are clear with the different

engineering issues, to start to

appraise our local investors of

the opportunities so that they

can prepare themselves on

these things.

How about the issue of

keeping to the terms of

agreements because that is one

o f t h e c o m p l a i n t s b y

CONTINUED FROM PAGE 17

inte

rnation

a l

investors that

m i d w a y ,

government tends to

renege on greements?

I am surprise actually because

Nigeria does have a record for

adherence, and as far as I see

here, I do not see any issues

because this is Mr. President’s

Transformation Agenda, which

is anchored on very clear basic

business principles; it’s all

about the investors’ confidence .

What I mean is that in the

event that these plans do not

come to fruition within the life

time of this administration, will

it be carried over by the next

administration because in some

instances some agreement have

had to be discontinued?

Well if you look at the nature of

all the agreements that we’re

looking at in gas here, most of

these are purely commercial

agreements between the NNPC

and its partners. So far, the

federal government’s part of it,

are actually things that are

ent

renched

i n t h e

Nigerian Constitution, like the

NEPZ law relating to free trade

zone incentives. These are laws

that have been existing for

years, and at the moment, I do

n o t s e e a n y p a r t i c u l a r

agreement that we have struck

n o w t h a t i s e i t h e r n o t

commercial or not based on laws

that have been in existence for

long; so I do not see any threats

to any of the agreements.

So what do you foresee as the

challenges regarding these gas

revolution?

I think we are talking here

about mult ibi l l ion dollar

investments; you don’t deliver

those kinds of investments

without a fair share of serious

challenges. I think our critical

challenge must be to align all of

these because we are doing

quite a lot at the same time, so it

is about project management, to

make sure that everything

works concurrently, because

slippage in one can have a

major repercaution on the other.

o we need to make sure that

d e c i s i o n s , b u d g e t

appropriations that require

statutory approvals are done in

timely manners in a very

coordinated manner that does

not lead to failures.

Like I said earlier, we need to

continue to maintain the peace

and security in the Niger Delta.

A n y

s e n s e

that we’ve

lost that

c a n

d ras t i ca l l y

i m p a c t o n t h e

initiatives. These are

areas we need to make

sure that that

c h a l l e n g e

needs to be

m a n a g e d

appropriat

e l y . O f

course, we

still have

t h e

challenge of human

c a p a c i t y a n d

execution capacity at

the right level of quality,

because, imagine when all of

these are happening, we are

building three fertilizer plants,

a petrochemical plant, the CPfs,

the ports and so on; the entire

zone is like a construction site

and so you ask yourself, we

truly have to overcome the

challenge of execution, do you

have the right contractors, the

right equipment, the right

people to manage all these

things. These are major

challenges. Essentially, they

are managing projects risks,

tow, ensuring peace stability

and security, and three making

sure we have the right people,

which is indeed a challenge in

Nigeria in executing the right

capacity.

What about funding?

Well funding will always be

there, to some extent, but bear

in mind that a lot of these

projects are private sector led

and so once they reach financial

level, we expect that they will

have the funds, which is our

strategy for mitigating against

funding challenges.

19Gas

… Moves to build largest pipeline grid in sub-Saharan Africa

Gas pipelines

YEMIE ADEOYE

Oa n d o P l c , N i g e r i a ’ s f o r e m o s t i n t e g r a t e d e n e r g y

company has successfully built and commissioned a 128 kilometre gas pipeline from Akwa Ibom to Cross River state, south-south Nigeria.

The milestone follows the Fe d e r a l G o v e r n m e n t ’ s commitment towards optimal utilisation of the nation’s enormous gas reserves to boost the industrial and powers sectors o f the economy,

This historic and massive project conceived by the Nigerian Gas Company, NGC, was developed by Oando and delivered at the stipulated time with zero casualty record.

According the company’s Group Chief Executive Officer, Mr. Wale Tinubu, with about 187 trillion cubic feet of gas reserves and 600 t r i l l i o n c u b i c f e e t o f undiscovered potential, Nigeria is well positioned to join countries like Brazil and Indonesia in catalyzing its economy by leveraging its gas assets.

“The role of gas in national t r a n s f o r m a t i o n a n d industrialization cannot be over-emphasised. In March this year, the President, in launching the gas revolution, stated that Nigeria will leverage its strength in the abundance of natural gas to transform the lives of present and future generations. This c o m m i s s i o n i n g i s a d e m o n s t r a t i o n o f o u r commitment to support the a c t u a l i s a t i o n o f t h a t transformation”.

S p e a k i n g o n t h e significance of the project, T i n u b u s a i d t h a t i t exemplifies the importance of public private partnership, PPP, in the infrastructural rebirth of Nigeria, as the synergies of both parties have resulted in the delivery of an e c o n o m i c e n a b l e r f o r businesses in the South-South.

“It is our ideology in Oando that Nigerians are capable of delivering ingenious world-c lass so lut ions to the challenges facing us as a nation. Among us today are many proponents of the Nigerian content and I am sure they are very proud of our achievement. This project was conceived by the Nigerian Gas Company, developed by a Nigerian

corporate, Oando’s East Horizon Gas Company, executed by a Nigerian contractor, Oilserv, using indigenous sub-contractors and talents from the two states and financed by a consortium of Nigerian f i n a n c i a l i n s t i t u t i o n s including: First Bank, Kakawa, FSDH, FCMB, Access bank, Fidelity bank, Ecobank and Sterling bank.”

Tinubu further extolled the virtues of his company in the areas of safety and project excellence. “This 128km natural gas pipeline was built to the highest engineering standards and excellence achievable for a project of this nature anywhere in the world.

“As a safety conscious organisation, we took every reasonable care to build this natural gas pipeline with as l i t t l e i m p a c t o n t h e environment as possible. As you may well imagine, a

pipeline across seven major rivers, swamps and indeed 115 separate communities was fraught with major challenges. It is a testament t o t h e r e s i l i e n c e a n d ingenuity of our project execution team and our sub-contractors that we were able

to bring this project to a successful conclusion.

He said further, “In our vision of building the largest pipeline grid in sub-Saharan Africa it is a notable fact that we have a rich history of investing in the development of energy infrastructure in Nigeria. Our Oando Gas and

Power subsidiary pioneered the private sector piping and distribution of natural gas to industrial and commercial consumers in the greater Lagos Area. This has enabled industries in the area to access a cleaner, safer and environmentally friendlier

alternative, when compared to other forms of energy.

“Over 120 industr ies connected to our 100km gas grid in Lagos, have cut their energy costs by as much as 50 p e r c e n t . T h i s h a s tremendously improved their profitability and making them globally competitive

brands. We have operated this franchise for more than 11 years now without any incident.

On the back of this p i p e l i n e , w e b u i l t a 12.15MW Power Plant for the Lagos Water Corporation. T h i s g a s f i r e d p l a n t increased the efficiency of the corporation by 300% and is saving Lagos State Government $3.9million annually from the tax payer’s money that would have been spent on buying alternative fuel.”

Fur ther more , Tinubu disclosed Oando Gas and Power, in August 2011, assumed the management of an existing gas pipeline in Port Harcourt, following a rigorous tender. The pipeline which has a throughput of about 40 million standard cubic metres per year (mmscm/year), currently serves industries in Trans-Amadi.

“We are indeed pleased to add this 128km gas pipeline from Akwa Ibom to Cross River State to our growing list of natural gas pipeline systems. With the continued support of the government in the creation of an enabling environment, we are on course to achieve our vision,” he added.

20FeedbackFeedback

GODWIN ORITSE

THE Nigerian Ports

Authority, NPA

m a y h a v e

concluded plans

to sanction the

owners of vessel ‘M.T. Britaina

U, which exploded and killed

two persons recently at the

Marina in Lagos.

The exp los ion caused

damage to vehicles parked

opposite a bank at the Marina

Jetty.

Security sources at the

authority disclosed that

besides the sanctions that will

be meted out to the owners of

the vessel, management is

currently awaiting the security

report of the explosion.

It was gathered that the

owners of the vessel face

sanctions because she was

being dry-docked in an

unauthorized area; the area

where the ship was berthed is a

roadstead for vessels.

It furthered gathered that the

N i g e r i a n M a r i t i m e

Administration and Safety

A g e n c y , N I M A S A ,

immediately deployed its

officials for a rescue mission at

the site of the incident.

Efforts to get reaction from

the NPA was futile as the

The Managing Director of the company, Mr. T h o m a s G . M e r e d i t h ,

clarifying the circumstances surrounding the explosions, said it was caused by gas leakages.

In a statement from the chie f execut ive , made available to Sweetcrude, he said, “The explosion which occurred was as a result of gas leakage f rom the cylinders used for welding jobs on the facility by our contractors. However, the explosion was not a bomb, as being alleged in some quarters.”

At the time of the incident, he said the production facility (Brittania-U 1) Floating Production Storage Unit, FPSU, was undergoing

Ship explosion

authority’s spokesman, Chief

Michael Ajayi, said that he was

not aware of the fact NPA was

awaiting any security report or

intends to sanction the owners

of the vessel.

He also said that the NPA’s

management was yet to issue

any official statement because

the incident is still being

investigated.

maintenance/re-engineering of the mooring systems to withstand the challenges of the current climate change.

He also insisted that “The management observed all normal safety checks and p r o c e s s e s b e f o r e commencing any operations, as was the case before the commencement o f the welding job.

“ O u r p r e l i m i n a r y investigation revealed that the leakage from one of the gas welding cylinders, which while being opened by the contrac tors ’ employee , ignited a spark, which caused the explosion. This resulted in one fatality of one contractor employee.”

Expressing deep regrets over the incidence Meredith promised that his company “will continue to strive to

ensure we maintain high safety standards, as we had done in the past to avoid a reoccurrence in future,” and also expressed sincere appreciation to the Lagos State Fire Service, for their prompt response by being the first agency to arrive at the location within 15 minutes of the incidence.

B r i t t a n i a - U N i g e r i a Limited, one of Nigeria’s indigenous marginal field producers, wish to announce the minor explosion that occurred on our production facility yesterday (Monday November 21) at about 4pm at Marina Jetty, Lagos. Appreciation also went to the State Security Services, SSS Lagos Zone, NIMASA, NPA and Department of Petroleum Resources, DPR officials who were on hand to offer their assistance.

NigerStar 7 JV to create 3,000 jobs

agal and Subsea 7, two Jmajor o i l and gas services groups in Nigeria last week announced the creation of a joint venture company, NigerStar 7 that will generate no fewer than 3,000 jobs for Nigerians.

The jobs would be created from a combination of p r o j e c t s i n d i f f e r e n t locations in Lagos, Port Harcourt and Warri to manage oil and gas projects in country.

Other facilities include:• Two fabrication yards, in

Lagos and Warri, with capacity to handle Nigeria’s largest offshore projects

• The support of Subsea 7’s offshore construction fleet, one of the largest in the industry,

The JV partners explained t h a t t h e p u r p o s e o f NigerStar7 is to provide a credible solution that allows oil companies them to execute large and complex Engineering, Procurement, C o n s t r u c t i o n , a n d Installation, EPCI projects locally in Nigeria.

Based in Lagos, NigerStar 7 is majority owned by Nigerian shareholders. The joint venture combines engineering, fabrication, installation and project management expertise of Globestar (Subsea 7’s Nigerian subsidiary) and fabrication capability and capacity of Nigerdock (Jagal’s subsidiary).

This combination allows the new company to meet client needs for subsea and topside construction and maintenance as well as pipe laying.

NigerStar 7 reiterated its c o m m i t m e n t t o t h e development of skills in Nigeria, and a major example of the effects of the Nigerian Content Act to build the nation’s industrial capability in the oil and gas industry.

Commenting on the joint venture, NigerStar 7, D i r e c t o r , B u s i n e s s D e v e l o p m e n t , M r . Valentine Ugbeide, said: “NigerStar 7 is a powerful init iat ive to create a Nigerian company, to build on Nigerian facilities and capable of tackling the most serious challenges in the nation’s offshore industry. This is a company that is committed to the growth of Niger ia ’ s indust r ia l competence.”

21Power

ABUJA - The

F e d e r a l

G o v e r n m e n t

has directed

M i n i s t r i e s ,

Departments and Agencies,

MDAs, to insist on technical

viabilities of contractors before

awarding any jobs.

It noted that the alarming

number of abandoned and

uncompleted projects that litter

the landscape was because

financial capability has been

placed above sound technical

knowledge.

The Minister of Power, Prof.

Bart Nnaji, disclosed this when

he was reviewing the Gombe

Dadin Kowa hydro power

station with the project

h a n d l e r s a n d o t h e r

stakeholders in his office in

Abuja recently.

N n a j i s a i d i t w a s

embarrassing that a critical

project, which civil work was

commissioned in 1988 was yet

to take off in 2011. “We don’t

want to terminate contracts for

projects of this type with its

multi-use concepts, but due to

lapses in contract awards by

past administrations, the

present administration places

premium more on technical

competence of job bidders than

on their financial liability.

“When you get the money but

possess no sound bankable

technical expertise, a project of

immense contribution to the

economy is stalled or shabbily

carried out and the job creation

ambition of the project remains

completely unrealizable,” he

added.

Nnaji, therefore, gave a seven

day ultimatum to Mabon

Limited to convince the Federal

a n d G o m b e S t a t e

governments’ that it possesses

superior technical knowledge

over other companies or get the

contract terminated.

He noted that because a

contract or Memorandum of

Understanding, MoU, was

signed by past administrations

is not enough for the nation to

tolerate unacceptable number

of abandoned projects, adding

tha t , “gover nment i s a

continuum and that this

government wants to know

what went wrong with all these

abandoned projects all over the

place.”

T h e P o w e r M i n i s t e r

announced that Dadinkowa

project is very important to the

p e o p l e o f N o r t h E a s t

geopolitical zone and that

Gombe is also blessed with best

Oscarline Onwuemenyi

Prof. Bart Nnaji

quality coal which made this

Administration to approve a

coal-to-power station in the

state and that with the dam

project, Gombe State is likely

to be the industrial hub of the

zone.

The Gombe State Governor,

A lha j i Ib rah im Hassan

Dankwambo, who attended

the mee t ing expressed

dissatisfaction that more than

30 years after the project

conception, Gombe State has

been allowed to suffer under-

development, deprivation of

amenities and lack of basic

infrastructure as a result of

visionlessness.

H e a n n o u n c e d h i s

government’s readiness to

undertake a minimum of 15%

equity participation in the

project if this will make the

project move on.

It could be recalled that the

Dadinkowa dam built about

37km east of Gombe town is a

multipurpose facility with a

reservoir capacity of 2.8 billion

cubic meters.Government vision for the

dam included the provision of

hydroelectric power generation

of 34MW, irrigation amounting

to 44,000 hectares of farm land,

portable drinking water to the

State capital and its environs (19

million gallons daily), fishing

and fish farming as well as flood

control and flow regulation on

the Gongola and Benue Rivers.

The project in addition to

Mambilla hydroelectric power

station is being supervised by

the Minister of State for Power,

Mr. Darius Ishaku who also

participated in the crucial

meeting.

h e S i e m e n s

I n d u s t r y

Au t o m a t i o n i n TNigeria, one of the major

players in the energy sector

has comple ted Comos

software solution for plant

management throughout the

ent i re l i fecyc le o f an

industrial plant.

The company said in a

statement issued in Lagos

and made available to

Sweetcrude that it has

i m p o r t e d n e w C o m o s

software solution for Front-

End Engineer ing and

Design, FEED, “to simulate

programmes and support the

users to speed up industrial

plant planning and make it

more reliable.”

The Product Manager,

Comos, Mr. Marcus Elo,

said, “With the new FEED,

plant designers can work

more quick and flexible and

also improve the quality of

their work.

Elo, noted that the Comos

software solution is a

modular and its integrated

data management allows

e f f e c t i v e , h o l i s t i c

development in a system

over the entire lifecycle.

He also said that the data

was both consistent and

transparent in all planning

phases which applied to the

early stages of plant design

and ensured high quality in

the design of the process.

H e a d d e d t h a t t h e

i n t e g r a t e d d a t a a n d

document revision in the

mechanisms provided by the

Comos FEED software

module allow a controlled

a n d e f f i c i e n t d e s i g n

procedure.

“Even at the very early

p lanning s tage o f an

industrial plant project, some

80 percent of the total costs

are defined in the FEED

phase,” he said.

The data from seven

process simulators can be

i m p o r t e d a n d f u r t h e r

processed. This underlines

the open system architecture

of Comos and provides users

with even greater flexible

and further processing for

f l o w c h a r t s a n d b l o c k

diagrams in Comos software.

Siemens introduces new technology on plant management

Christian OLISE

22Power

Th e U n i t e d

Kingdom has t a s k e d t h e N i g e r i a n government to

drive through the reform agenda in the electricity power sector, but cautioned that it would be hard to attract good investors (bidders) unless there is a resolution to outstanding labour issues.

Country Representative of t h e U n i t e d K i n g d o m Department for International Development, DIFD, Mr. Richard Montgomery, noted that for years, the Nigerian people had seen the i r governments talk about fixing the power sector, but nothing was delivered.

Speaking recently at the 2011 Nigeria Energy and Power Summit, NEPS, in Abuja, Montgomery stressed that the power sector reform was the most important of Nigeria’s economic reforms, pointing out that failed reforms of the past had contributed to the growing rate of poverty in the country.

He said, “As we look across the range of economic reforms currently underway: none is more important than those aimed at solving the problem of this country’s chronically p o o r p o w e r s u p p l y . Consistently, every survey on the barriers to business, and to investment, has identified lack of reliable power supply as the biggest problem holding back development.

“For years the Nigerian people have seen their governments talk about fixing the power system, and then deliver nothing. Too many times, huge sums of money have been spent , wi th ordinary Nigerians left to wonder where it all went.

“ T h a t i s w h y t h e international community welcomes the decision by President Jonathan to take personal responsibility for the reform of this vital sector, as soon as he took the highest office. It is why the British Government, through the Department for International Development- or DFID- has given strong support to this reform process, and will continue to do so. Real progress has been made over the last one-and –a-half years.”

Montgomery further argued that the implementation of the transition market and the

Oscarline Onwuemenyi

submission of detailed bids for those companies being privatized was the critical phase of the reform that now beckoned. He promised that the DFID would continue to offer technical assistance in building on the progress made by Nigeria through its N i g e r i a I n f r a s t r u c t u r e Advisory Facility.

On the role of the private sector, he stressed that the private sector involvement represents the best hope of attracting the very large investments needed if the sector is to meet the demand for power in the country.

“More p r iva te sec to r involvement represents the

best hope for better service delivery. That is not to say that the private sector is best under all circumstances. It is absolutely crucial that the process of privatization is transparent and genuinely competitive. It is vital that companies should only be sold to bidders who are both technically and financially q u a l i f i e d t o r u n t h e m properly.”

And despite the efforts that have been made so far, he stressed that a lot still needs to be done to attract good investors , warning that emphasis must be on the quality of investments not the number of companies.

According to him, “The government must ensure that bidders have both the policy f r a m e w o r k a n d t h e information they need in order to submit good bids. In both areas, there remains more work to be done. Some issues are well known. There can be no successful reform without the introduction of a realistic tariff for electricity; it will be hard to attract good bidders unless there is a resolution to outstanding labour issues.

“I will ask all those involved to remember every day just how much this reform matters to Nigerians.

Solar Panel

chneider Electric, a global leader in integrated power S

and cooling services, has launched its Channel Partner Programme, CPP, a plan aimed at driving business growth and p r o f i t a b i l i t y f o r companies.

A c c o r d i n g t o a statement, the Nigeria P r e s i d e n t , A P C b y Schneider , Mr. Marcel Hochet, said ‘We are focused on empowering our channel partners to find new, sizeable market opportunities by offering innovative solutions that are easy to sell.’

“We believe that a well-trained, knowledgeable partner will be capable of delivering better value to the customer. Hence the core objective of this programme is to enable the partners differentiate themselves in the market place.”

Hochet called on the channel partners to take full advantage of the programme for the benefit of their business. He further added that APC by S c h n e i d e r E l e c t r i c remained committed to offering partners quality, high-impact, and proven sales and marketing tools to help them grow their business.

The Channel Sales Manager, Mr. Kofoworola Ayodele, in his remarks, highlighted the benefits of being a channel partner, saying that the CPP p r o v i d e s f i n a n c i a l differentiation to partners, i n c l u d i n g u p f r o n t preferred pricing, an opportunity registration p r o g r a m , b a c k - e n d incentives and other opportunities to ensure t h a t t h e p a r t n e r relationship is profitable to the vendors.

“Our channel partners are significant part of our business.

Schneider Electric unveils partner programme

Bolaji AJALA

23Power

A London based company, Africonomie Group, has expressed support for the Federal government’s drive to reform the power sector, and called on investors from across the world to take advantage of the unique opportunity offered by Nigeria to invest in sector.

The Chairman, Advisory Board of Africonomie Croup, Mr. Ashimawan Adum, who spoke Energy Summit, in A b u j a , c h a r g e d t h e government to perfect the regulatory framework that will remove all impediments against investors in the power sector.

He noted that the Power Summi t rede f ines the concerns of stakeholders in N i g e r i a o n t h e m o s t appropriate policy making and decision taking formula for electricity supply and the cr i t ical inf rast ructures n e t w o r k t h a t w i l l accommodate our country in the years to come.

He said, “According to global statistics, Nigeria has a growth potent ia l o f g r o s s i n g 3 5 0 m i l l i o n inhabitants by the year 2030, making it one of the five most populated countries in the World. For any democracy or any government, providing energy for such a multitude is a mammoth task not to mention that maintaining a power efficiency that will span the next half century remains a f r ightening challenge to all here today.

“I enjoin you all to take advantage of all our inland waterways and river basins for Hydropower; I invite you all to fire up clean coal steam plants from the southeast to the northwest, I encourage you to beautify the southern coastline with windmills and our northern borders with solar farms.

“Help us convert our waste to energy and give us clean electricity – CHEAPLY so we can be amongst the leading industrialized nations before our population overwhelms us and consumes the little we have to survive on today.”

Adum further pointed out that the administration of P r e s i d e n t G o o d l u c k Jonathan has made power reform his highest priority; an indicat ion that he understands that sustainable power supply is key to developing economic and

Oscarline Onwuemenyi

Investors forum

social infrastructure.“He knows that stable and

reliable access to electricity does not only mean light but it is a major social, economic and environmental change that contributes to the al leviat ion of poverty, illiteracy, and disease.”

He added that despite the President’s unfaltering commitment to privatize six generating companies and 11 distributors; the process h a s c r e a t e d m a r k e t i n e f f i c i e n c i e s a n d dislocations that require s i g n i f i c a n t c a p i t a l investment and exceptional management.

“Given the scale of such an o b j e c t i v e , a n d t h e implications of failure, it is

clear that progressively developing an unbiased private sector led platform for collaborative engagement of the industry has never been m o r e c h a l l e n g i n g o r exciting,” the statement added.

The Power Summit brought together both national and international key players in the power, energy, oil and gas sectors to evaluate the huge potential that abound in Nigeria, and also to discuss any impediments against opening up the market for investors in line with global trends.

According to the Chairman of the Nigeria Energy and Power Summit, Mr. Nat Yaduma, there is a significant and verifiable effort by

government in privatizing the power sector is open for every investor to see.

He noted that, “Government t o o k a m a j o r s t e p b y unbundling the sector and s u b s e q u e n t l y s e t u p c o m p a n i e s w i t h responsibilities of simplifying the on-going efforts to attract investors. Some of these efforts are in the areas of setting up the Nigeria Energy Regulatory Commission, N E R C , t h e N a t i o n a l Integrated Power Plant (NIPP) and most recently the Nigerian Electricity Bulk Trading Company (NEBT) as s p e c i a l v e h i c l e s w i t h specified functions.

“For example the NIPP’s primary function is building some power p lan t s t o

generate electricity and the bulk purchasing company’s function is to buy off all electricity generated by the generating companies. These will give investors the comfort and assurances that they will get money for value.”

According to him, “NEPS is designed to facilitate action towards providing greater clarity on the Nigeria p o w e r s e c t o r r e f o r m , i m p r o v i n g i n v e s t o r confidence by reducing policy uncertainty seen as a key r isk, encouraging investment in renewables energy, facilitate power infrastructure development a n d b a n k a b l e p o w e r projects.

“The summit is a one-stop shop that provides you with a comprehensive overview of key aspects of the Nigerian energy and power markets: from science and technology to policy reforms and project financing.”

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Electricity Transformers

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Electricity Workers laying power cables

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OSCARLINE ONWUEMENYI

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34Financing

Ec o p e t r o l

r epor ted i t s

a p p r o v e d

i n v e s t m e n t

plan for the

year 2012 and the update of the

strategic plan for the Corporate

Group for the 2012-2020

period.

“Our efforts are focused on

fulfilling the goals we set forth

for the years 2015 and 2020.

2012 is essential to make our

vision as a corporate group a

reality, which explains the

importance of the approved

investment plan,” said the

president of Ecopetrol, Javier

Gutierrez Pemberthy.

Regarding the update of the

investment plan, Mr. Gutierrez

stated that “the annual revision

and update exercise of the

main premises of the 2020

strategic plan is key to support

the decision-making and to

consolidate our value promise

that was announced four years

ago and on which we have

been delivering satisfactory

results.”

Investment plan for 2012

T h e i n v e s t m e n t p l a n

approved for 2012 amounts to

US $8.477 billion of which US

$7.452B is expected to be

invested directly in Ecopetrol

and US $1.025 million in other

companies of the Corporate

Group.

According to the plan, 94% of

the Capex is allocated to

projects in Colombia, and the

remaining 6% will be allocated

to exploration and production

projects along the U.S. Gulf

Coast and Brazil and Peru,

w h e r e E c o p e t r o l h o l d s

interests.

The fo l l owing exh ib i t

summarizes the breakdown of

expected investments in 2012:

Business Area Capex

Exploration $1.419B

Production $4.113B

Refining & Petrochemicals

$601MM

Transportation $2.025B

Other Investments $318MM

Total $8.477B

The following are the main

projects that Ecopetrol S.A.

plans to develop during 2012:

Exploration

With an investment of US

$1,419 mill ion in 2012,

Ecopetrol S.A. plans to drill 42

exploratory wells, of which 36

will be located in Colombia.

The Company p lans to

continue with activities on all

blocks it has in Colombia. Most

of these wells will be in the

Llanos Orientales while others

w i l l b e d r i l l e d i n t h e

Magdalena valley, Catatumbo,

Piedemonte and the Caribbean

offshore. Six wells will be

drilled internationally in the

U.S. Gulf Coast and Brazil. The

drilling goal was set according

to the strategy of focusing on

prospects with higher potential

and value for the company.

The company plans also to

c o n t i n u e t o d e v e l o p

unconventional resources

(shale gas) on blocks in the

Mid Magdalena.

Production

Ecopetrol S.A. allocated US

$4,113 million for continued

growth of crude oil and gas

production with a target of up

to 750 thousand barrels of oil

equivalent per day (MBOED)

in 2012 as an average. This

production goal is 10.6%

higher than the 2011 goal.

Ecopetrol’s Corporate Group’s

production is expected to reach

800 MBOED in 2012.

Most of the investment will

be earmarked for projects in

the Llanos Orientales. Primary

recovery projects will begin at

the CPO-9 and Cano Sur

fields. Projects will continue at

C a s t i l l a , C h i c h i m e n e ,

Rubiales, Occidente, Quifa,

Caracara , Cravo Norte ,

Guajira, Rio Zulia, Rancho

Hermoso, Tisquirama, Sur,

Neiva, Provincia, Casabe,

Tibu, La Cira Infantas, Apiay,

Nare, Yarigui and Cusiana

fields, among others.

Refining, Petrochemicals and

Biofuels

T h e e s t i m a t e d t o t a l

investment in this business

segment is US $601 million

under the investment plan,

used p r imar i l y f o r the

industrial services project,

operational improvement plan

a n d u p g r a d e s a t t h e

B a r r a n c a b e r m e j a a n d

C a r t a g e n a r e f i n e r i e s .

Investments in bio-fuels are

i n c l u d e d t h r o u g h

contributions to Bioenergy.

Transportation

The US $2,025 million in

investments in transport aims

to increase crude evacuation

capacity by 600 thousand

barrels a day (BPD) in 2012.

These projects are expected to

help increase heavy crude

production. Also included in

this investment amounts are

contributions to the companies

Oleoducto

Bicentenario and Oleoducto

de Colombia. Oleoducto de los

Llanos expansion will be

funded autonomously by ODL.

Other investments

E c o p e t r o l S . A . p l a n s

allocated US$318 million to

other investments including,

among others, research and

development investments at

the Instituto Colombiano del

P e t r o l e o ( C o l o m b i a n

Petroleum Institute –ICP-) and

information technology. The

investments are also expected

to help fund initiatives in the

areas of human talent, the

shared services center, quality

management and social

responsibility.

C o r p o r a t e G r o u p

Investments

C o r p o r a t e G r o u p

Investments are expected to

amount to US $10.964,

including US $8,477 million in

Ecopetrol S.A. and US $2,487

m i l l i o n o f i n v e s t m e n t s

undertaken by the companies

part of the Corporate Group

with their own resources.

T h e i n v e s t m e n t p l a n

includes Capex for Group’s

companies amounting to US

$4,576 million in 2012, of

which Ecopetrol S.A. will

contribute US $1,025 million.

The remaining resources are

expected to come from cash

generation by each company,

commercial financing, and the

contributions of third parties or

partners.

Update of the Strategic Plan

for the period 2012-2020

In line with the annual

budget and inves tment

exercise, the Strategic Plan of

the company was reviewed

under which key elements of

the strategy were updated.

The main objectives of the

Strategic Plan are:

Produce 1.3 million barrels

by 2020, of which around 50%

are expected to be heavy

crude.

Increase average reserve life

to approximately 10 years,

adding 6,200 million barrels.

Raise the recovery factor to

34% by means of EOR/IOR

( E n h a n c e d O i l

R e c o v e r y / I m p r o v e d O i l

Recover) technologies.

Expand the transport capacity

to 1.7 million barrels per day.

Grow the refining capacity

from 300 thousand to 415

thousand processed barrels per

day.

Reach production of 450

thousand tons per year of bio-

fuels.

Meet a three-year return on

capital employed (ROCE)

criteria for the investments

included in the plan of: 28% in

Exploration and production,

11% in transportation, and 13%

in petrochemicals. Refining

rates will reach between 9% and

11% by 2025.

The following are the main

milestones of the Strategic Plan:

Estimated Capex amounts to

US $80 billion in order to

accomplish the goals set forth in

the 2012-2020 Strategic Plan.

Approximately 85% of the total

Capex is allocated to exploration

and production, and 15% to

r e f i n i n g , t r a n s p o r t ,

commercialization, bio-fuels

a n d o r g a n i z a t i o n a l

consolidation.

90% of the investment is

earmarked to projects in

Colombia. The remaining 10%

will be allocated to E&P projects

along the U.S. Golf Coast and in

Brazil and Peru.

Capex in E&P amounts to US

$69.5 billion, of which US $20

billion will be invested in

exploration and development of

new reserves, US $39 billion in

technology to increase the

recovery factor, US $4 billion to

d e v e l o p u n c o n v e n t i o n a l

hydrocarbons and gas, and US

$6 billion to develop existing

fields (includes subsidiaries

production).

The company expects to add in

total 6,200 million barrels of new

reserves between years 2011-

2020. In order to reach 1.3

million barrels per day of

production by year 2020, the

production of existing fields is

expected to be 840 MBOED;

Colombian exploration and

subsidiaries 300 MBOED;

international exploration and

fore ign subs id iar ies 110

KBOED; and unconventional

hydrocarbons 50 MBOED.

Dollar bills

35Insurance

Commissioner for Insurance, M r . F o l a Daniel said t h a t t h e

Commission is not leaving any stone unturned in reducing the activities of fake insurance operators to the barest minimum. He spoke to Rosemary Onuoha, Excerpts:

H o w s u c c e s s f u l i s NAICOM in the war against fake insurance operators?

T h e p e o p l e w e apprehended were handed over to the Nigerian police as expected. We did some follow ups, the response we got from the police was that they were still investigating even after investigation had closed; they said they were still investigating. We had a rethink over our processes; we discovered that we need to do more ground work. First of all before we go to arrest anybody, we need to set the stage for what are we going to do. Are we going to allow the Nigerian police to continue to frustrate our efforts or can we call for the private prosecution.

We are looking at the p o s s i b i l i t y o f p r i v a t e prosecution and we are appealing to the attorney general to give us a fiat to e n a b l e u s c a r r y o u t prosecution which means our lawyers can charge offender to court. We are d o i n g t h a t w i t h o u t necessarily wanting to annoy the police because definitely they have a role to play and we must not behave in a way that we will have issues with them.

To ensure that we have more e f f ec t i ve po l i ce collaboration I am making efforts to meet with the IG. The idea to speak with the IG is just to let him know that they are very important in our quest to fight fake insurance operators and we need them to collaborate. We will be expecting that the IG will issue directive to all the Commissioners of police so that when people are

apprehended and the police are aware they will know that they are not burying it under t h e f i l e o f ‘ w e a r e investigating’ they know that they have to do something. We are also reaching out to the Federal Road Safety Corps, FRSC, who are also stakeholders in our fight a g a i n s t f a ke i n s u r e r s because the FRSC have some mechanism, which they can deploy to prosecute the fake

insurance operators.One of the strategies we

put in place is get the col laborat ion of State Governments. The State G o v e r n m e n t s a r e t h e e m p l o y e r s o f Ve h i c l e Inspection Officers, VIOs and the VIO offices are the biggest market or platform where fake insurance p r o d u c t s a r e s o l d . I remember that when we raided the VIO office in Lagos, the state government

was a bit embarrassed and they summoned all their VIOs and instructed them not to allow insurance to be sold in their premises. But they confirmed that their activities were given to them by their enabling Act. So we need to go round and talk to state governments so that they can give instructions to their VIOs because VIOs of most states are acting as contractors. Most of them are self funding. I can that

remember when we first did a raid in Abuja two years ago, the head of VIO in Abuja came to our office to tell us what was going on. And he was practically appealing that we should reverse our decis ion not to a l low insurance to be sold in their office. And I was wondering ‘what has insurance got to do w i th r eg i s t ra t i on and licensing of vehicles.’ He said that insurance is one of the side attractions and because we stopped them operating in Abuja, people no longer come to Abuja to license. They were taking their vehicle registration to the out skirt of Abuja just 20 minutes away from Abuja. So we really need to collaborate with the authorities so that our solo effort will no longer be solo but it will be collaborative and it will give better results. If you ask me if what we have done has driven away the entire fake from licensing offices, the answer is no. but Nigerians have a very thick skin, so a few people will still remain there. We have done similar raiding in Lagos, Abuja, and Kano. However, what of the fake operators in Warri, Aba, have we been able to reach a l l t h e 7 1 0 l o c a l governments? The answer is no therefore we need to co l laborate wi th s ta te government so that our efforts will not be entirely in vain.

What is the impact of offshore subsidiaries on insurance companies?

It is difficult for me to really tell because we are not operating a consolidated balance sheet. If the balance sheets of the insurance companies are consolidated it means that their businesses in Rwanda, Ghana, you will find everything in one booklet. Then you can look at the bulk and say yes, this is how much each one is contributing. But that is where we are going. We are going to insist henceforth that you will give us the financials of your activities outside Nigeria so that we can truly see what the impact is. I have a personal opinion about Nigerian companies going to establish abroad.

Mr Fola Daniel

36Insurance

As companies in Nigeria have b e e n mandated to a d o p t t h e

International Financial Reporting Standard, IFRS, Nigerians will be in a position t o u n d e r s t a n d i n g t h e workings of oil majors better.

M r. A b e l A t a l o r, a n accountant who made this assertion, argued that since the oil majors are not quoted on the Nigerian Stock Exchange, NSE, the adoption of IFRS by these companies wil l to a large extent demystify their operations to the understanding of more Nigerians.

According to Atalor, since

Rosemary ONUOHA these oil companies are doing business with the Nigerian National Petroleum Corporation, NNPC, which is required to transit to IFRS t h a t m e a n s t h e y a r e compelled impliedly to also confirm.

Atalor stated that the absence of the oil majors on the NSE have been a big problem for the country because their activities to a great extent have influenced t h e m o v e m e n t o f t h e economy.

Meanwhile, the National Insurance Commission, NAICOM, is set to issue new guidelines and modalities for the insurance sector on IFRS.

NAICOM said that the guideline will ensure that there is uniformity in the

financial statements of insurance companies when they eventually transit to IFRS.

The Acting Director of Supervision of NAICOM, Mr. Nicholas Opara, who disclosed this at training on I F R S f o r i n s u r a n c e correspondents in Ijebu-Ode, Ogun State organised by NAICOM said that the IFRS is principle based and not rule based which means t h a t m a n a g e m e n t o f companies are free to make diverse and varied choices but such choices must be explained.

In order to prevent a situation whereby every operator will have a unique financial result based on the freedom which IFRS affords,

Opara said that issuing a guideline to check excesses has become imperative in the insurance sector.

According to Opara, once t h e g u i d e l i n e i s o u t , insurance companies are expected to open their balance which will read from January 2011.

Meanwhile NAICOM has also charged management t e a m s o f i n s u r a n c e companies to take concrete steps to educate themselves on the new IFRS reporting f o r m a t b e c a u s e m o s t management teams o f companies see IFRS as mere accountants’ affair and are depending on consultants to do the entire transition on their behalf which is not in t h e i n t e r e s t o f s u c h

companies.Deputy Commiss ioner

F i n a n c e & A c c o u n t s , N A I C O M , M r. G e o r g e Onekhena, who made this assertion, stressed that accountants or management teams of companies waiting for consultants to handle in entirety their IFRS transition lack direction.

I n h i s w o r d s , “A n y accountant or management team waiting for a consultant to do their IFRS job for them has already failed because you need to understand it first as an operator.”

Onekhena regretted that a lot of leadership of insurance companies are not taking IFRS seriously, stating “Many leadership are not taking the IFRS seriously rather they are taking it as an accountant stuff. When they will be hit, they wi l l then take i t seriously.”

O n w h a t i n s u r a n c e companies stand to gain in the adoption of IFRS, Onekhena said that IFRS enables insurers to report in a way that reflects reality and substance rather than the shadow.

According to him, with the IFRS there is going to be lots and lots of disclosures from the insurance companies and it is going to revolutionise the insurance industry.

With the dissolution of the N i g e r i a A c c o u n t i n g Standards Board, and the creation of the Financial Reporting Council, FRC, Onekhena posited that the FRC is going to rope auditors into line and they will not have the kind of powers they initially had.

He, therefore, charged insurance companies to embrace IFRS because foreign investors will be looking at the country with suspicion if they continue to dilly dally, adding that such attitude is doing damage to the country.

He explained that the IFRS is divided into two phases and the first phase, which is the transitory and permissive stage will end in 2012, while the second phase which is the convergence stage is in 2015.

He advised insurers to take up the challenge because with IFRS technologies wi l l change and p resen t l y, Nigerian insurers don’t have the adequate sof tware. According to him, they should not wait till the last minute, but should begin in their own individual capacities.

Oil Rig

United aDN

38LabourVictor AHIUMA-YOUNG

Oil drilling

TRADE Union C o n g r e s s o f Nigeria, TUC, a c c u s e d P r e s i d e n t

Goodluck Jonathan, of using the controversial planned removal of fuel subsidy in January, to divert Nigerians’ a t t e n t i o n f r o m t h e government’s inability to see through the passage of p r o t r a c t e d Pe t r o l e u m Industry Bill, PIB.

This, the union noted is b e c a u s e d o w n s t r e a m deregulation is already an integral part of the PIB. “The loss to the Nigerian economy as a result of the delay in the passage of the PIB is colossal and far more than the amount spent on fuel subsidy. Besides, if the transparency clauses in the PIB are properly articulated there would be drastic reduction in the cor r up t ion in the Nigerian oil and gas sector including those associated w i t h t h e o i l s u b s i d y management. In addition, the P I B p r o v i d e s a r a r e o p p o r t u n i t y f o r t h e government to undertake a hol i s t ic rev iew of the downstream sector including how to grow our local refining capacity and as well as attract serious investments into that sector. The non passage of the P I B i s s t a l l i n g h u g e investments in the Nigerian oil and gas industry, as prospective investors are not sure of the fiscal regimes and other rules that will govern their investments and the N i g e r i a n o i l a n d g a s industry.”

TUC advised the president to focus his energy on harmonising the various versions of the PIB in circulation, and forward an Executive Bill on the PIB to the National Assembly, which should also be made available to the public to guide further debates in the National Assembly.

This was contained in a paper titled: “The Petroleum Indus t r y B i l l and the Challenges of Transparency in the Oil and Gas Industry,” de l ivered a t the 2011 NUPENG annual training w o r k s h o p o n Transformational Agenda And Processes in the Oil and Gas Industry: Issues for Trade Union leaders’ consideration, in Calabar, Cross River State.

The Chairman of Rivers

State Council of TUC, Comrade Hyginus Chika Onuegbu, recalled that the PIB, which is based on the report of the Oil and Gas Reform Implementation Committee, OGIC, set up by the Federal Government in year 2000, to carry out a comprehensive reform of the oil and gas industry, was first presented to the National Assembly in September 2008.

According to him, “the PIB combines 16 di f ferent Nigerian petroleum laws into a single and coherent document to provide for the establishment of the legal and regulatory framework, institutions and regulatory authorities for the Nigerian petroleum industry as well as establish guidelines for the operation of the upstream and downstream sectors. Some of the laws that would be affected by the PIB

include; The Petroleum Profit Tax Act 1959, The Petroleum Act 1969, The Pe t ro leum Techno logy Development Act 1973, The Associated Gas Re-injection Act 1979, The Petroleum Equalisation Fund Act 1989, The Oil Pipelines Act 1990, The Nigerian National Petroleum Corporation Act 1997; and The Petroleum Products Pricing Regulatory Agency Act 2003.

“The PIB is therefore, a reform legislation that seeks to holistically review the oil and gas industry. It is however, unfortunate that the 6th National Assembly could not pass the PIB into law even after concluding a ve r y e labora te pub l i c hearing and after several promises to Nigerians that they will do so. When the 7th National Assembly was inaugurated in June 2011, the general public including

stakeholders in the Nigerian oil and gas industry were quick to draw their attention to the urgent need to fast-track the passage of the PIB into law. It is therefore not a surprise that new Petroleum Industry Bills are now before each chamber of the National Assembly.”

The PIB has the following fundamental objectives.

Enhance exploration and exploitation of petroleum resources in Nigeria and to p r o m o t e p e t r o l e u m production for the benefit of all Nigerians

Signif icantly increase domestic gas supplies for power genera t ion and industrial development

Create a peaceful business environment for petroleum operations

Establish a progressive f i s c a l f r a m e w o r k t h a t e n c o u r a g e s f u r t h e r investment in the petroleum

industry whilst increasing accruable revenues to the Federal Government of Nigeria

Create a commercially viable National oil company

Deregulate petroleum product prices

Create efficient regulatory entities

Create transparencyPromote Nigeria contentProtect health, safety and

environment,”Onuegbu further argued

that “It is heartening to see that one of the fundamental objectives of the PIB is to c r e a t e t r a n s p a r e n c y. Unfortunately this seems to be lacking in the way and manner the PIB is being legislated. It is a huge d i s a p p o i n t m e n t f o r Nigerians to learn that there are four versions of PIB, which is supposed to ensure transparency in the Nigerian petroleum industry.”

39Labour

JO I N T A c t i o n Front, JAF; the pro-labour civil society partner in the Labour and

Civil Society Coalition, L ASCO, have begun m o b i l i s a t i o n a n d sensitisation of Nigerians to resist government planned removal of subsidy on fuel and privatisation of the power sector, saying it would destroy Nigeria if allowed to sail through.

At a briefing in Lagos, JAF said the planned policies were ant i-Nigeria and Nigerians and must be rejected by all right thinking Nigerians to save Nigeria from the path of destruction, saying Nigerians must rise up to reject the desperation by the Federal Government to impose another round of wicked punitive increases in the prices of petroleum products (petrol, kerosene, diesel, aviation fuel, low pour fuel oil, LPFO, etc.

Speaking on behalf of the g r o u p , i t s S e c r e t a r y, Comrade Abiodun Aremu, warned that the forceful take-over of Power Holding Company of Nigeria, PHCN facilities nationwide and its implication for constitutional rule in Nigeria.

According to him, “As far as we in JAF are concerned, there is nothing like fuel subs idy. The recyc led argument being canvassed by Government and its rented spoke-persons that only a cabal of profiteers benefit from the subsidy c l ea r l y exposed i t a s irresponsible and anti-poor if, with all the security apparatus at its disposal, the government cannot deal with the profiteers and private sharks that are looting funds in the name of subsidy, then we must protect ourselves.

A n o t h e r r e a s o n t h e government has given is that the removal of ‘fuel subsidy’ is to block wastage of resources. If we may ask; why has Government never prosecuted anybody involved in the mismanagement of the turn-around-maintenance of the refineries? At least over $231.6 million was wasted by the Obasanjo government on this. The answer is simple. Those in government and the so-called cabals are the same looters; so they cannot prosecute themselves for

Victor AHIUMA-YOUNG

bleeding the country dry through naked looting. Instead, they want to impose price increases to make life unbearable to the working people and poor masses.

The group argued that if government was sincere about saving leakages in public funds, then it should i n s t i t u t e p r o - p e o p l e pgrogrammes and not prescriptions from the Brettonwood institutions like IMF and the World Bank, the European Union, and a host of others.

On the forceful take-over of PHCN facilities, Aremu insisted it was a ploy to allow the Bureau o f Pub l i c Enterprises, BPE to take prospective investors “to undertake the inventory of the facilities, in view of its plot to illegally transfer these undervalued public assets to their cronies of profiteers, so-called private investors. JAF deplores this unwarranted

military occupation, which has been characterized by the maltreatment of workers and security harassment of its leadership across the c o u n t r y , i n s t e a d o f Government implementing the payment of the 50 per cent salary increment due to the PHCN workers since June.

T h e J A F t h e r e f o r e , demanded the unconditional and immediate withdrawal of the soldiers, saying, “We totally reject the planned privatisation of PHCN. Our position on the Power Sector is that the PHCN can be e f f i c i e n t i f i t i s democratically run with the involvement of elected representatives of workers and consumers in the management of electricity. This is the only way that the public resources invested in the sector can translate into qualitative improvement in power generation, adequate

supply and affordability.”JAF calls for total actionThe JAF scribe urged

Nigerians to prepare for protracted mass actions if government went ahead with the planned subsidy removal and privatisation of the electricity sector. “Join forces with JAF today to “reject deregulation and hike in prices of fuel. Reject and resist the privatisation of the electricity sector. Demand public trial of all public and private profiteers and dealers involved in the looting of oil subsidy, repairs of refineries as well as other corrupt atrocities in the privatisation o f pub l i c en te rp r i ses . Demand that the books of the oil industry be made open to the Trade unions and w o r k i n g p e o p l e organisations for Public Inquisition. Insist on Public Massive investment in the building of refineries and overhauling of the facilities

and infrastructures for haulage of fuel. Struggle to end the privatization and deregulation policies.”

The group equally called on the Nigeria Labour Congress, NLC, and Trade Union Congress of Nigeria, TUC, “to disown their membership of the National Council of Privatization (NCP) and Stay out of it now. We demand that the oil sector and the NNPC should be placed under public ownership and management and democratic control of t h e w o r k i n g p e o p l e , consumers and local experts. Organise and Mobilise for a Working People political party that must put in p o l i t i c a l p o w e r a Government that will end the era of looting and exploitation by the corrupt capitalist ruling cabals and ensure that the wealth of the country is judiciously applied to benefit the majority working population (formal and informal sectors) and the poor.”

Power sub station

Nigeria Army during training

40Labour

PUBLIC Service International, PSI, umbrella body for public service workers

worldwide, has petitioned President Goodluck Jonathan over the recent deployment of armed Soldiers to Power Holding Company of Nigeria, PHCN, facilities nationwide and perceived harassment of labour leaders in the sector.

In a petition by Peter Waldoref, PSI General Secretary, the group urged the Federal Government to restrain itself from the use of agencies such as Economic a n d F i n a n c i a l C r i m e Commission, EFCC, State Security Service, SSS, the Police, and military to intimidate the union and workers of PHCN.

The petition read in part: “It is with alarm that we note the military occupation of power stations throughout the country. This occupation comes under the guise of protecting the facilities and workers against possible

Victor AHIUMA-YOUNG

threats from Boko Haram. However, we see another purpose , which i s t o intimidate the workers and their union leaders in order to have them cease and divert their opposition to privatization of the energy sys tem. Th is mi l i ta r y occupation was used not less than four months ago to stop an industrial dispute. We are aware of the politicizing of the electricity sector where certain parties, including in your government,?? have personal interests to run down the sector in order to use the opportunity ??to privatize under the guise that the public sector has

failed.“ N a t i o n a l U n i o n o f

E lec t r ic i ty Employees , NUEE’s oppos i t ion to privatization is based on the more than 20 years of experience in many countries with energy privatization. T h e i m p a c t o f t h e s e privatizations has been almost uniformly negative. Your policy makers should study these experiences in greater detail, and give you less biased advice on the greatest good for all of Nigeria and Nigerians. The N U E E h a s n o t b e e n confrontational to your Government and recently engaged in dialogue as a

partner so that our views can be heard and taken on board. The continued arrests and intimidation of NUEE members is a negation to civilized ways of resolving conflicts in our modern society which guarantees freedom of association and right to expression of opinion.”

The PSI also said argued that the use of force and aggression would not be in the interest of all Nigerians. “We support a strengthened PHCN in public hands, with m u c h i m p r o v e d transparency, accountability a n d p a r t i c i p a t i o n i n decision-making processes.

The country has sufficient funds to provide modern, reliable and affordable electricity to all Nigerians, which will provide key support to job creation and poverty reduction. We have provided policy suggestions to your Government and stand ready to support your decision-making. Our unions in Nigeria are committed to ongoing open d i a l o g u e w i t h a l l stakeholders to improve the quality public services upon which we all depend. We urge the Government to restrain itself from the use of agencies such as EFCC, SSS, Police, and military to intimidate the union and workers of PHCN.”

Nog aD

42Solid Mineral

AB U J A -

Central Bank o f Niger ia , C B N G o v e r n o r ,

Mallam Sanusi Lamido S a n u s i , h a s c h a r g e d governments at Federal and state levels to come up with robust blueprints that would c r e a t e s t a b l e m a c r o -economic environment.

He also charged them to m a i n t a i n c o m p e t i t i v e markets, while ensuring easy access to credits for the nation’s mining industry.

Sanusi, who was speaking in a keynote address at the Bus iness Deve lopment Roundtable for Investment in Zamfara State, in Abuja, stated that there was the need for a deliberate policy framework to promote and engender political and economic change to support n a t u r a l r e s o u r c e management for growth and sustainable development.

He said that, “In order to a t t r a c t i n v e s t o r s , a comprehensive resource database to be supported with relevant information is a prerequisite. Government must invest in pol icy, legislative and institutional r e f o r m s t o a d d r e s s environmental issues across d i f f e r e n t s e c t o r s a n d institutions.”

He added that innovative and comprehensive resource mobilization strategies to increase investments into environment and natural resources as well as invest in new and robust approaches, including those that build stronger synergies between land degradation, climate change, and bio-diversity must be encouraged.

A c c o r d i n g t o h i m , government must a lso partner with stakeholders such as NGOs and the private sector to work towards addressing environmental damages at local level where the impacts are most felt.

He stressed that the endowment of mineral resources does not guarantee the development of the state, noting that in order to create and sustain wealth in the long run, “mineral resources have to be transformed into other forms of capital (human, social, financial and manufactured) and more sus ta inab le l i ve l ihood opportunities.

“The challenge for us today,

Oscarline Onwuemenyi

CBN Headquarter at Abuja

is to recognize the potential for the ‘resource curse’ and work effectively to counter it. Good governance, strong i n s t i t u t i o n s , e f f e c t i v e regulations and rigorous environmental and social safeguards are needed to realize the potentials of mineral wealth for economic growth,” he added.

Sanusi noted that natural resources are fundamental to economic activities in many ways, adding that “not only do they contribute to the incomes, employment and fiscal revenues of the citizens and the state, they also form the bedrock upon which the

livelihood of many of the very

poor rest.”

He added that, “Natural

resources generate a wide

range of positive externalities

at the local, national and

global levels. Thus, the

achievement of poverty

eradication and the attainment

o f t h e M i l l e n n i u m

Development Goals have long

been closely linked to a sound

n a t u r a l r e s o u r c e a n d

environmental management.”

He explained that the Bank

has articulated a blueprint for

reforming the Nigerian

financial system, in general,

and the banking sector in

particular, within the next 10

y e a r s . T h e s e i n c l u d e

enhancing the quality of the

banks, establishing financial

stability, enabling healthy

financial sector evolution and

ensuring that financial sector

contr ibutes to the real

economy.

He added that, “In ensuring

that the financial sector

c o n t r i b u t e s t o t h e

development of the real

economy, the Bank would lead

in measuring more accurately

the relationship between the

real economy and financial

sector, as well as cooperating

with state governments to run

pilot programmes in directing

t h e f i n a n c i a l s e c t o r ’ s

contribution to social and

economic development within

the states.”

According to him, threats to

the environment and natural

resources, as was recently

reported in Zamfara State,

pose serious consequences

and implications for both

pove r ty r educ t ion and

s u s t a i n a b l e e c o n o m i c

development.

“Since the responsibility to

generate and sustain growth

rests on the state government,

it becomes imperative for the

state to improve upon its

natural resource management

for long-term economic

development.

43Solid Mineral

ABUJA – The F e d e r a l Government has stated that t h e

availability of bankable geosciences information and d a t a w o u l d f a c i l i t a t e discovery, exploitation, value addition as well as the sustainable development of the nation’s minerals and metal sector.

The Minister of Mines and Steel Development, Mr. Musa Mohammed Sada, said recently during the 3rd S t a k e h o l d e r s ’ F o r u m organised by Nigerian Geological Survey Agency, NGSA, in Abuja.

The minister said for the sustainable development of the nation’s minerals and metal sector, the Federal Government was ensuring that geosciences data and information are properly a c q u i r e d , s t o r e d a n d disseminated in order to attract financiers and foreign

Oscarline Onwuemenyi

i n v e s t o r s f o r t h e development of the sector.

He said “In mining sector, t h e v a l u e o f d a t a i s unquantifiable. The quantity and quality of data matter; this is why we attach great i m p o r t a n c e t o t h e accumulation of data.”

He cited lack of adequate funding as one of the major challenges facing the sector, stressing that, availability of a d e q u a t e b a n k a b l e geosciences information and data would go a long way in attracting commercial banks and foreign investors to grow the nation’s minerals and metal sector.

Sada exp la ined tha t various stakeholders’ fora embarked upon by the ministry and its parastatals

are opportunities for opening up discussions, debates and scrutinizing different aspects o f d e v e l o p m e n t a l programmes to stakeholders in the sector as well as the general public.

He added that such fora would give room to showcase the work o f d i f f e ren t departments and agencies of the ministry to users of their products and services, t h e r e b y e n c o u r a g i n g transparency and improve service delivery in line with the transformation agenda of the present administration.

The minister said the stakeholders’ forum on the Nigerian Geological Survey Agency was part of the strategic efforts of the ministry to promote and

expand the investment f r o n t i e r s t h r o u g h t h e dissemination of bankable geosciences information and data.

He added that the forum w o u l d p r o v i d e a n opportunity for stakeholders in the nation’s minerals and metal sector to interact and brainstorm with a view to defining future requirements and improving service delivery for the accelerated developmental programme of the sector.

The minister who noted that “Mining sector is a global sector; we must go with global best practices,” also said the nation’s minerals and metal sector h a s t w o o p e r a t i o n a l principles of first come ,first

serve and use it or lose it in line with international best practices.

Sada told journalists on the sidelines that the Mining Cadastre Off ice of the ministry, which is for the administration of mining titles is not the major revenue generating office of the sector, but revenue from the nation’s minerals and metal sector comes from royalties and taxes from the exploitation of solid mineral resources.

He noted that mining operations are being handled by private investors globally while the government plays the role of a regulator. He added that government was working towards positioning the nation’s minerals and metal sector to partner with mining companies to build the infrastructural facilities such as roads, rail lines and sea ports, to facilitate their easy access to and from the mines sites as obtained in other mining countries such as Australia and Canada, among others.

44Solid Mineral

Even as news that hundreds of children and w o m e n cont inue to

lose their lives to massive lead poisoning, which occurred since March, 2010 in Zamfara state, the Federal government insisted that its handling of the issue was meticulous and proactive.

An annual immunization programme in Northern Nigeria last year led to the discovery of a high number of child deaths in the area. An investigation showed that they had been digging for gold at the times of their deaths, in an area where lead is prevalent. It was thought by the villagers that all the children had contracted malaria but the international medical charity, Médecins Sans Frontières, found unusually high levels of lead in the blood during tests. Reports suggested the contamination of water may have contributed to the high mortality rate. Blacksmith Institute was called in by the Federal government to assist in the removal of toxic lead.

It is thought that the poisonings were caused by the illegal extraction of ore by villagers, who take crushed rock home with them to extract. This resulted in the soil being contaminated from lead, which in turn poisoned the people through hand-to-mouth contamination. Others have been contaminated by contact with contaminated tools and water.

According to officials of the Ministry of Mines and Steel Development, reports in the press about recent loss of lives in the vast mining areas of the state have not taken note of the vast amount of remediation work going on in the state, as well as efforts by t h e a d m i n i s t r a t i o n t o effectively organise the small-t ime miners into cooperatives to ensure efficient supervision and regulation of their activities.

A statement from the Ministry noted that, “The report was based on the i l l e g a l m i n i n g a n d inappropriate mineral ore processing methods adopted by local miners in Abare, Dareta, Unguwar Yargalma and some other villages in Zamfara State that led to lead poisoning emergency in the

Oscarline Onwuemenyi

State. The Ministry and other Government agencies as well as some in ter nat ional a g e n c i e s h a v e m a d e concerted efforts to have the situation brought under control.”

In this regard, it noted, the Ministry had embarked on v igorous sens i t i za t ion campaign in the state using both the electronic and print media to enlighten the public, especially the rural people in the mining communities of Zamfara State of the inherent dangers a s s o c i a t e d w i t h inappropr ia te minera l processing and i l legal mining.

“In the same vein, the Ministry issued a suspension order on all manners of mining activities in Zamfara State for sometime which h e l p e d i n t h e i n i t i a l

c o n t a i n m e n t o f t h e emergency. Similarly, in order to assuage the water needs of the people in the affected communities, the Ministry provided 15 water boreholes that spread across the affected areas,” the statement added.

The Minister of Mines and Steel Development, Mr. Mohammed Sada, recently admitted that government was having some challenges curtailing activities of illegal miners across the country, a development that has seen the death of over 300 people, inc lud ing women and children in Zamfara State last year.

He noted that activities of illegal miners was becoming inc reas ing ly rampant , adding that even the entire forces of the Nigeria police would not be able to contain

the menace of illegal miners in the country.

Sada pointed out that investigations carried out by his ministry and other officials revealed that the deaths of the villagers in Zamfara State were entirely the handiwork of illegal miners.

According to him, “The issue of illegal miners has b e c o m e o n e t h a t i s increasingly difficult to contain. This is because of the very difficult terrains in which mining activities are carried out. Some of the locations of the illegal mines are remote and almost inaccessible. Also, whenever these illegal miners get wind of the presence of the authorities, they easily disappear into thin air leaving the hapless villagers

and other locals to bear the brunt of their nefarious activities.”

He added that, “It is important to note that these i l legal miners abound everywhere across the country, and it would be practically impossible to attempt to check them all. We can ’ t s top them f rom operating, but we can find ways to harness their efforts and create better value for them and the economy at large.”

The Minister explained that the government was doing its best to enhance the e d u c a t i o n a n d enlightenment of the mining communities, especially on the dangers involved in the improper handling and processing of crushed rocks from the illegal mining sites.

Illegal Miners

45Freight

That the issue of N i g e r i a acquiring the Shipping hub status in the

West and Central Africa Sub-region has come to the centre- stage in numerous maritime discourse in 2011, is not surprising to watchers of maritime trade in Nigeria.

It is also no longer news that Nigeria has since independence been the b i g g e s t i m p o r t e r a n d exporter in the sub-region s u c h t h a t , t h e c a r g o throughput (oil and gas inclusive) till date dwarfs those of other seaports in West and Central Africa sub-region.

U n f o r t u n a t e l y , t h i s outstanding edge in volume of maritime trade has not translated into appropriate port development with a view

Jones OJIEH to placing Nigeria in her rightful position in the sub-regional maritime trade.

The consequence of this seeming shortfall in the maritime port development program has resulted in smaller countries in the sub-region developing seaports w i t h b e t t e r a t t r a c t i v e facilities, water ways depth, etc that have apparently placed them higher in the ladder in the league of efficient seaports in the sub-region.

The pertinent question that readily comes to mind is- why has the numerous previous managements of Nigerian Ports Authority (NPA) failed to appreciate the fact that deep seaport development is a veritable goldmine and catalyst to acquiring the much talked about maritime hub status in the sub-region?

It becomes more worrisome on the realization that, out of o v e r 1 0 0 s e a p o r t s

development being executed worldwide, about 60% to 75% a re deep seapor t s o r terminals whilst the balance 25% or 30% are mostly inland waterways, ports or jetties.

U n f o r t u n a t e l y , t h e t e m p l a t e f o r p o r t development in Nigeria in the pas t 50years has continually positioned the country in the bracket of inland ports operators.

H o w e v e r, m a r i t i m e watchers have argued that there had been complete lack of political will on the part of government on tackling the issue of deep seaport development which is of public interest.

They further opined that while Nigeria is described as the giant of Africa, that cannot be said of her in the sub-regions maritime trade.

After all, the industry watchers had argued that a f t e r 6 y e a r s o f t h e commencement of port

concession, a deep seaport w o r l d h a v e b e e n commissioned so as to accelerate the processes of acquiring the much desired hub status of the West and Central Africa sub-region.

Today, the new song being sung by the Managing Director, Nigerian Ports Authori ty, Engr. Omar Suleiman and the Transport Minister Senator Idris Umar r e s p e c t i v e l y h a s undoubtedly put smiles on the faces of the industry’s stakeholders.

Firstly, the enthusiasm shown by Engr. Omar Suleiman on the deep s e a p o r t p r o j e c t a n d achieving the hub status since assumption of office has resurrected the hope of Nigerians in this regards.

Whi le defending the authority’s budget before the National Assembly recently, the NPA boss never minced words when he promised to

attract more vessels to the Nation’s seaports, develop new infrastructure that would make Nigeria the hub for the sub-region.

That was cheering news to stakeholders. It is therefore little wonder that industry watchers have described the Chief Executive of the NPA as the man that possesses the character and will to deliver the deep seaport and hub status on or before 2015.

Similarly, the emphasis placed on the need for deep seaport in the country by the Minister of Transport, Senator Idris Umar, during his press briefing marking his first 100days in office was another welcome development.

In line with the aspiration of the NPA boss, the transport minister disclosed that the Federal government h a s a p p r o v e d t h e establishment of three deep seaports in Lekki (Lagos State), Ibaka in Akwa Ibom and Olokola in Ondo State, s t r e s s i n g t h a t t h e completion of the project will undoubtedly give the country the much desired hub status for the sub-region.

Reacting to the recent drive for the hub status, a maritime player, Mr. Charles Irabor, Managing Director of Maritime Energy Base seems to expect nothing less as he noted that maritime transportation is a key sector that needs to be developed by the Federal Government.

He, however, noted that the country, as the biggest importer and exporter of cargos in the west and central sub-region, needs at least one deep seaport as a hub for the sub-region, noting that the cargo throughput handled by the country’s seaports hiked from 66.98million metric tons in 2009 to 74.9million metric tons in 2010.

He therefore urged the NPA boss “to see the rapid transformation of the sub-sector so that it will impact positively on cargo handling capacity of the seaport and increase Gross Domestic Product, GDP, during his tenure.

It is now obvious that expectations of stakeholders are high and it behoves on Engr. Suleiman to deliver at least one deep seaport and achieve the hub status for the sub-region.

Container depot

46Freight

THE Council for the Regulation o f F r e i g h t Forwarding in N i g e r i a ,

CRFFN, has threatened its three aggrieved members who leveled allegation of misappropriation of fund against the leadership of the council with expulsion, if they failed to rescind their decision.

The embattled members are: the Council’s Vice C h a i r m a n , D r S a m a Onyemelukwe, Chief Peter Obih and Mr Teddy Ifezue who were suspended in September this year for violating chapter 2, section 19 (1 and 2), which spells out actions that are deemed as misconduct under the Act.

This was the resolution of ththe 14 National Executive

Council Meeting of CRFFN held recently in Abuja. The

Chris OCHAYI & Caleb AYANSINA

T A N D A R D

Organisat ion of SNigeria, SON, and

the National Agency for Food

Drug Administration and

Control, NAFDAC, have

w i t h d r a w n a l l t h e i r

operations at the nation’s

seaports, following an order

by the Federal Government

for them to vacate the ports.

SON decided to vacate the

ports after the management

o f the Niger ian Por t s

Authority, NPA, issued a 14-

day ultimatum to the affected

agencies to leave the ports.

In a letter to the Managing

Director of the NPA, SON’s

Director General, Mr. Joseph

Odumodu, said that the

organization has ceased to

operate at the port since the rd23 of October 2011.

In the letter with reference

n u m b e r

SON/LO/002/VOL111/88, thand dated October 20 2011,

Odumodu said that a circular

has also been sent to its entire

staff and other relevant

authorities operating at the

ports.

The letter read in parts:

“Following the Federal

Government directive on the

above subject issued on the thOctober 10 2011 that some

Agencies including Standard

Organisation of Nigeria

should vacate the ports

within 14 days.

“Kindly find attached a

circular to all staff of the SON

operating in the nation’s

ports to vacate in compliance

with Government order.

“For avoidance of doubt,

commencing from Sunday rdOctober 23 2011, the SON

will cease to operate at the

Ports until any other contrary

directive”

It would be recalled that the

order by government to the

affected agencies created

some controversies, as some

of the agencies refused to

leave the ports saying that

they cannot vacate the ports

based on newspaper reports.

Some stakeholders saw the

development as a welcome

idea, saying that it reduced

the cost of cargo clearance at

the ports.

SON, NAFDAC withdraw operations at ports

Godwin ORITSE

council also set up a committee to monitor and see that the resolutions of the meeting are followed to the letter by the affected members.

Speaking on behalf of the counc i l , Mr. Eugene N we ke , r e p re s e n t i ng South-East Zone, noted that the council will not hesitate to expel the erring members, if they failed to comply with the conditions.

“They leveled allegation of misappropriation of funds against the council before the international body. Since they have made this allegation, the council gives them conditional pardon; it is conditional because they are to retract all the litigation against the Minister of Transport, the CRFFN and its officials.

“They are also ordered to retract all correspondences that they had earlier entered into with the International Federation of Freight Forwarders, FIATA. The council will consider expulsion, if the conditions are not followed”. Nweke said.

He said the council has decided to hold dialogue

wi th the Minis te r o f Transport, Senator Idris Umar, to chart a new course for the council in line with the transformation agenda o f t h e p r e s e n t administration.

It would be recalled that, the trio alleged that the c o u n c i l d i d c o l l e c t N 9 0 m i l l i o n f o r t h e registration exercise. But, the CFRFFN Chairman, Alhaji Hakeem Olanrewaju, said, “It is false to say that we realized N90Million, when we only registered about 3,800 individuals and a b o u t 8 9 1 c o r p o r a t e members. Each individual paid N5, 000, while the corporate members paid N15, 000; how on earth can this amount to N90million?”

They also claimed that NIMASA gave the council N 1 0 0 m i l l i o n , b u t Olarenwaju maintained that it was N50million and the purpose was spelt out clearly; it was for capacity development.

It is false to say that we realized

N90Million, when we only

registered about 3,800 individuals

and about 891 corporate

members. Each individual paid N5, 000, while the corporate members paid N15, 000; how

on earth can this amount to

N90million?

Ship on the sea

Ferry Ad

48Technology

Natural gas is a fossil fuel made primarily o f

methane, hydrogen and carbon. However, it was not until recently that methods for obtaining this gas, bringing it to the surface, and putting it to use were developed.

I n N i g e r i a , G a s utilization is a primary goal of Nigeria’s petroleum and energy policies. This is because, with a proven reserve of 260 trillion cubic f ee t o f na tu ra l gas , Nigeria’s gas reserve is triple the nation’s crude oil r e s o u r c e s . H i t h e r t o , a s s o c i a t e d g a s encountered during the normal course of oi l product ion has been largely flared. Nigeria is reputed to be the largest gas-flaring country in the w o r l d . B y n o t f u l l y h a r n e s s i n g i t s g a s resources, Nigeria loses an estimated 18.2 million U.S. dollars daily.

Nigeria is the second l a r g e s t p r o d u c e r o f liquefied petroleum gas in Africa, and the sixth largest producer in the world with over 3million metric tones annually. However, current per capita consumption of the gas in Nigeria is about 0.8kg/annum. This is the lowest in Sub-Saharan Africa; lower than those of Nigeria’s West Africa neighbours who do not produce the product. Annual LPG consumption is in Nigeria for 2010, was put at 120,000MT, whereas, in Lagos alone, there is a po ten t ia l marke t fo r 1,000,000MT annually.

PropertiesNatural gas is lighter than

air, colorless, odorless and tasteless. For this reason, odorant is added to the gas to make it noticeable and objectionable for safety reasons. Natural gas can be compressed and, therefore, t ransmi t ted in la rge q u a n t i t i e s t h r o u g h relat ively small pipe diameters when under high pressure. Natural gas is primarily composed of methane, although also present are other chemicals such as propane, butane,

Jim-Rex Lawson MOSES

isobutane, pentane and heptane.

A n e n v i r o n m e n t a l l y friendly and efficient energy source, natural gas is the c l e a n e s t - b u r n i n g c o n v e n t i o n a l f u e l , producing lower levels of greenhouse gas emissions than heavier hydrocarbon fuels such as coal and oil.

Important Facts About Natural Gas:

?Flammability range 5% to 15%

?No color, odor or taste?Mercaptan is added for

odor?Nontoxic?Burns with a blue flame?Liquefies at - 200 °F?Heating Value 800 to

1200 BTU’s per cubic footUsesA n e n v i r o n m e n t a l l y

friendly and efficient energy source, natural gas is the c l e a n e s t - b u r n i n g

c o n v e n t i o n a l f u e l , producing lower levels of greenhouse gas emissions than heavier hydrocarbon fuels such as coal and oil. Natural gas fuels electric power generators, heats buildings and is used as a raw material in many consumer products, such as those made of traditional plastics.

The International Energy Agency predicts that the demand for natural gas will grow by approximately 44 percent through 2035.

Domestic useNatural gas dispensed

from a simple stovetop can generate heat in excess of 2000°F (1093°C) making it a powerful domestic cooking and heating fuel. In much of the developed world it is supplied to homes via pipes where it is used for many purposes including natural gas-powered ranges and

ovens, natural gas-heated c l o t h e s d r y e r s , heating/cooling and central heating. Home or other building heating may include boilers, furnaces, a n d w a t e r h e a t e r s . Compressed natural gas (CNG) is used in rural homes without connections to piped-in public utility services, or with portable grills.

Power generationNatural gas is a major

s o u r c e o f e l e c t r i c i t y generation through the use of gas turbines and steam turbines. Most grid peaking power plants and some off-grid engine-generators use natural gas. Natural gas burns more cleanly than other Hydrocarbon fuels, such as oil and coal, and produces less carbon dioxide per unit of energy released.

HydrogenNatural gas can be used to

produce hydrogen, with one common method being the h y d r o g e n r e f o r m e r . H y d r o g e n h a s m a n y applications: it is a primary feedstock for the chemical industry, a hydrogenating a g e n t , a n i m p o r t a n t commodity for oil refineries, and the fuel source in hydrogen vehicles.

TransportationCompressed natural gas is

a cleaner alternative to other automobile fuels such as petrol and diesel. As of 2008 there were 9.6 million n a t u r a l g a s v e h i c l e s worldwide, led by Pakistan (2.0 million), Argentina (1.7 million), Brazil (1.6 million), Iran (1.0 million), and India (650,000).

AviationR u s s i a n a i r c r a f t

manufacturer Tupolev is c u r r e n t l y r u n n i n g a development program to p r o d u c e L N G - a n d hydrogen -powered aircraft. It claims that at current market prices, an LNG-powered aircraft would cost 5,000 roubles (~ $218/ £112) less to operate per ton, roughly equivalent to 60%, w i t h c o n s i d e r a b l e reduc t ions t o ca rbon monoxide , hydrocarbon a n d n i t r o g e n o x i d e emissions

FertilizersNatural gas is a major

feedstock for the production of ammonia , via the Haber process , for use in fertilizer production.

OtherNatural gas is also used in

the manufacture of fabrics , glass , steel , plastics , paint , and other products.

Natural Gas plant Source: Courtesy of Pemex

49

Th e S h e l l

P e t r o l e u m Development Company o f Nigeria Ltd,

SPDC, said, it spent about N9billion on community development projects in the Niger Delta in 2010.The Managing Director of

SPDC, Mr. Mutiu Sunmonu, d i s c l o s e d t h i s a t a Sustainable Development exhibition in Abuja recently. “This is one of the biggest c o r p o r a t e s o c i a l responsibility portfolios operated by a private company in Sub-Saharan Africa, and it shows that we care for the wellbeing of the communities in which we do business.”The event was the first

Sustainable Development Partnership Opportunity

and Exhibition organised by SPDC in Abuja, and the theme was “Power ing Progress Together”. Sunmonu said: “We know

from our work in the Niger Delta, that no single actor c a n m e e t t h e s c a l e , complexity and resources required to respond to the challenges of development in communities. That is why we have inc reas ing ly p a r t n e r e d w i t h o t h e r b u s i n e s s e n t i t i e s , gover nment agenc ies , NGOs and community-based organisations to plan and deliver on our social performance commitments to achieve the desired impact and sustainability.”He c i t ed the G loba l

M e m o r a n d u m o f Understanding, GMoU i n i t i a t i v e , w h i c h t h e

company introduced in 2006, as a life-changing opportunity for communities who now choose and implement their projects with funding from SPDC. So

far, SPDC has signed and implemented agreements with 26 clusters, covering 271 communities in Rivers, Delta and Bayelsa states. By the end of 2010, a total of 490 p r o j e c t s h a d b e e n imp lemented th rough GMoUs, with more than $65 million provided as funding.In an address, the Minister

of Niger Delta Affairs, Elder G o d s d a y O r u b e b e , commended SPDC for its GMoU initiative. He said: “ N o o t h e r q u e s t i o n preoccupies the minds of the people of the Niger Delta than rapid development. And peace is the bedrock of all development. Therefore, let this forum mark the beginning of a brighter and more hopeful co-operation and prosperity for the Niger Delta region and Nigeria in general.”

The Amayanabo of Nembe Kingdom, Dr. Edmund Daukoru, who chaired the occasion said: “I’ve come all the way from Bayelsa State to associate with the success of the GMoU and other programmes, which I wish could be standard for all Nigerian communities.”Beneficiaries who made

presentations included Mrs. Shade Aderogba who enjoyed all-year round health care including giving birth under the Community Health Insurance Scheme of IA GMoU Cluster, Mercy Chukwudi and Diana Marcus who established businesses with LiveWIRE support as well as Chief I. S. Young-Dede the chairman o f N e m b e C i t y Development Foundation. Chief Young-Dede, who is also the palace secretary of the Amayanabo of Nembe Kingdom, enthralled the a u d i e n c e w i t h m a n y projects that have been executed including land marine transport, guest house, roads, ICT centre and printing press. He added: “We’ve transformed from being a Cluster to a Foundation capable of attracting support from far and near.”Precious Njoku, a young man got trained as a welder u n d e r t h e G M o U programme, and is now gainfully employed in a big construction company in Port Harcourt. “My story has changed for good,” he declared to the applause of the audience. “It is stories like Precious’s t h a t e n c o u r a g e u s , ” commented Vice President, H e a l t h , S a f e t y a n d Environment, HSE and Corporate Affairs, Mr. Tony Attah. “We will continue to invest in the wellbeing of our people as we do business in the Niger Delta, and ask other stakeholders including communities themselves to be part of this noble effort.”SPDC had held similar exhibitions in Port Harcourt, Yenagoa, Warri and Lagos. The Abuja edition brought t o g e t h e r g o v e r n m e n t officials, diplomats, NGOs a n d d e v e l o p m e n t organisations who thronged the Shehu Musa Yar’Adua Memorial Centre and heard testimonies by beneficiaries o f GMoU, L iveWIRE, community health and other life-building programmes.

Road under construction

50

ABUJA – Total U p s t r e a m Companies in Nigeria has a n n o u n c e d

that it is re-branding its a n n u a l T o t a l G o l f Tournament to annual Total Charity Golf Tournament, to reflect the re-engineering of the company’s Corporate Social Responsibility, CSR philosophy.

The re-branding effort has therefore led to the donation of the sum of N2 million to an Abuja-based orphanage by the company.

D i s c l o s i n g t h i s transformation in the widely-celebrated golf event, the Managing Director and Chief Executive of Total Upstream Companies, Mr. G u y M a u r i c e , t o l d journalists in Abuja that the change was to increase the impact of Total’s CSR e x p e n d i t u r e o n t h e m a x i m u m n u m b e r o f stakeholders.

He said, “Starting this year, the annual Total Golf Tournament, which is in its 16th year, will now be known as the Annual Total Charity Golf Tournament. While we retain golf tournament as the main event on our corporate sporting calendar, the new concept marries it with CSR convictions by turning it into a charity event.

“We have, therefore , identified City of Refuge Orphanage, an Abuja-based charity, to be the first beneficiary of a token amount that we have raised from this year’s tournament plus Total’s contribution.”

Maurice explained that other characteristics of the re-branded golf tournament are the inclusion of a Pro-Tournament to start some days preceding the main event with reasonable prize money to be shared amongst the five best players within the category of young professional golfers. This, he added, will permit the development of professional go l fe rs as a l te r na t ive employment f o r some youths.

Another change would be the replacement of prizes wi th t rophies , as the purchase money will now be added to entry fees and donated to one chosen charity organization each

Oscarline Onwuemenyi

A Golfer

year. There will also be a request to guest players to contribute to a token amount as playing fees which will be added to the charity fund each year.

According to Maurice, “Our modest contribution today might not be much, but it represents our desire to give back to the society and we call on other corporate organizations to extend the scope and reach of their CSR initiatives to cover our less-privileged stakeholders.”

He noted that the annual Gol f Tour nament was conceived to bring keen golfers, friends and business associates together for a day o f f u n a n d i n f o r m a l interaction, which is usually rounded off with an exciting awards ceremony.

H e a d d e d t h a t t h e

tournament has provided an

o p p o r t u n i t y f o r s o m e

participants to network and

hone their golfing skills. “For

others, the event has further

deepened our interest in the

exciting world of golf and its

limitless possibilities. But most

importantly, as true lovers of

the sport, we know that the

beauty of the tournament is not

just in winning but in

participating,” he added.

Total Upstream in Nigeria is

a subsidiary of the Total Group

of Companies. Total is the

fourth largest oil and gas

company in the world with

operations in more than 100

count r i e s . The g roup ’ s

activities span all aspects of

the energy industry, from oil

and gas exploration and

production to downstream

refining and marketing of oil

and gas products.

A R R I - L A N D

s p e c u l a t o r s i n WOsubi community

in Okpe council area of Delta

State have sold large portions of

the land granted to the Delta

State Government by the Shell

Pe t r o l e u m D e v e l o p m e n t

Company, SPDC, for the

expansion of the Osubi Airstrip.

Former Special Adviser to

Governor Emmanuel Uduaghan

on Land Security, Chief Sherrif

Oborovwori, disclosed this to

Sweetcrude recently, warning

those building on the land to

desist in their own interest as the

government is sure to pull down

such buildings at the appropriate

time.

He said the community is

desirous of assisting the state

Emma ARUBI government to see the project

through and expressed regret

that those buying the land and

b u i l d i n g o n i t a r e

non–indigenes and they are

sure to lose their money and

homes as they would never be

given any Certi f icate of

Occupancy.

T h e O s u b i c o m m u n i t y

Chairman, Comrade Igho

Omatagiren, told Sweetcrude

that a large portion of the land

has been fraudulently sold to

unsuspecting buyers and the

sales is still on-going. He

further revealed that sand

miners are also not giving the

government land any breathing

space either as they have

embarked on aggressive mining

of the land for their personal

benefits.

51

Th e K E F F E S h o s t communities, an acronym for Koluama I & II,

Ekeni, Fish Town, Foropa, Ezetu I &II and Sangana located on the Atlantic fringe of Southern Ijaw and Brass local government areas of Bayelsa State had cause to celebrate last month, when Chevron Nigeria Limited, CNL, unveiled projects worth N482m in their domain.

The projects sited in these far flung communities which are been taken for granted in the more fortunate urban settlements, could best be described as luxury for the people of the backward settlements.

In spite of their location in the deep mangrove swamp of the delta, and enormous tourism potentials, these oil rich but backward fishing settlements lacks both state and federal presence.

Most of the natives are sea farers whose immediate neighbours are the alluring sea and oil manifold, platform and gas flare furnace.

Though the communities are strategically located in the deep swampy mangrove with enormous potentials, i f properly harnessed could have made them a tourist’s destination and source of income to the state and also boost the economy of the local populace.

But sadly, the communities are yet to be linked by road and could only be accessed by water with the result that the natives, most times, prefer to travel to Gabon for business due to its proximity to Yenagoa.

The cottage hospitals at Ezetu 1, Foropa, Koluama 1, and Sangana communities which were built some ten years ago to serve the natives had remained non -functional till date, with result that they are compelled to journey on the turbulent sea to Yenagoa and neighboring Warri to seek for proper medical attention when the need arises.

I t w a s t h e r e f o r e n o t surprising when the people of the these pre-dominantly fishing settlements, Thursday abandoned their sole trade to witness the inauguration of projects such as teachers’ quarters bui lding with complete furniture, potable water projects, public toilets,

Samuel OYADONGHA

Medical attention

concre te foo t b r idges , community rest house, installation of transformers, concrete jetty and renovated primary school buildings executed by the Keffes Rural Development Foundation, o n e o f t h e R e g i o n a l Development Committees under the Chevron Global M e m o r a n d u m o f Understanding, GMoU.

Speaking at the occasion, the Paramount Ruler of Ezetu Pennington Kingdom, King I. N . I g b o u s a - O d u o X , described the commissioning as a concrete and significant leap in the history of company’s operations in the KEFFES host communities.

Describing the projects as y e t a n o t h e r ‘ v i s i b l e expression of commitment of Chevron to the existing cordial relationship with its host communities, he said, “the GMoU model itself,

which could be seen as a rebirth of the new Community Relations Approach, has yielded yet another visible expression of the commitment of CNL and her KEFFES host communities that we are witnessing here today and by implicat ion, creat ing a p e a c e f u l b u s i n e s s environment for the mutual benefit of all stakeholders.”

“We seize this opportunity to c o n v e y t h e w a r m a n d appreciative feelings of the people of the KEFFES communities for this great milestone. This milestone is reached as a result of our communities’ commitment to maintain peace in order to a c h i e v e s u s t a i n a b l e infrastructural development that is relevant to our peoples’ need.”

He lamented the near absence of government in t h e c o m m u n i t i e s a n d

pleaded with the authorities to invest more in the communities given their disadvantaged position in t h e d i s t r i b u t i o n o f development projects.

In h i s remarks , the chairman of KEFFES Rural Development Foundation, Mr. Christopher Tuduo, commended Chevron for bankrolling the projects even as he called for increase funding to enable the foundation embark on more development projects that would benefit the communities.

He also called for greater state government and Niger D e l t a D e v e l o p m e n t Commission participation in the funding of development projects in the area.

Inaugurating the projects, Chevron General Manager, Policy, Government and Public Affairs, Mr. Femi

O d u m a b o , s a i d t h e successful implementation of the projects reinforces the G M o U C o m m u n i t y Engagement model as a vehicle for sustainable s o c i o - e c o n o m i c d e v e l o p m e n t i n communities around its operations.

Represented by Elijah Ebikikoro, GMoU Team Lead for Keffes, Odumabo, said, the successes recorded in the implementation of the GMoU in Keffes and in other c l u s t e r s c o m m u n i t i e s bordering our operations in the Delta region have shown that with support, the communities can drive their development process.”

He described as immense the socio -economic benefits of the community driven GMoU saying, “as a result of the efforts to date, a value chain is coming together.

52

Th e t i n y

settlement of Ikarama, one of t h e s e v e r a l communities in

Okordia clan in Yenagoa local government area of Bayelsa State, may not be known to many people given its location and rustic out look. Yet, Ikarama is one of the several oil and gas rich communities in the state which very existence is being threatened by incessant oil spills and fire outbreak due to exploration activities.

Over the years, the natives of th is serene community located on the bank of the Taylor Creek, who are predominantly farmers and fishermen, have had to contend with oil spills and fire

Samuel OYADONGHA out break leading to the scorching of their farmland as well as the pollution of their creek which not only serve as their source of water, but also their means of livelihood.

S W E E T C R U D E investigations, revealed that the community had suffered no fewer than twelve oil spills and two fire outbreaks in the last four weeks, most of which are believed to have been sabotage and few others blamed on corrosion.

A first time visitor to this rustic community will be taken aback by the several p a t c h e s o f s c o r c h e d vegetation as against the luxuriant vegetation the rainforest is known for as well as crude oil soaked land when travelling from the Mbiama flank.

Also dead water snails and

fishes could be seen littering the impacted environment and floating in the pond while the spilt crude oil could be seen in large volumes in certain sections of the swamp and pond.

Penultimate week, this rustic agrarian settlement was gripped in fear when an oil spill from a facility owned by the Anglo-Dutch oil giant, Shell Petroleum Development Company, SPDC, resulted in wild fire.

Though no life was lost in the inferno, the oil major was forced to shut in production.

The natives had claimed that they noticed a fresh crude oil spill the previous day along the Okordia/Rumuekpe line, less than 200 metres from the Okrodia Manifold which must have triggered the huge inferno..

The Anglo-Dutch oil giant r e s p o n d e d s w i f t l y b y deploying fire fighters to the scene of the raging inferno and succeeded in containing it.

While the natives had insisted the cause of spill was not as a result of third party interference and that it was corrosion, an industry source alleged that the spill was caused by illegal third party interference (sabotage).

Just as the people are trying to pick the pieces of their lives a n d f o r g e a h e a d , t h e c o m m u n i t y w a s a g a i n engulfed by inferno around an impacted swamp from an old spill which had not been cleaned up.

The cause of the latest inferno said to have occurred Wednesday afternoon at about 5.00pm could not be immediately ascertained as according to a native who simply gave his name as John, “we only heard a loud bang not knowing it was fire out break from a Shell facility.

Oil Spillage

A R R I -

TRADITIONAL WRulers in Uvwie,

Udu, Ughelli South and

Agbarha-Warri kingdom have

appealed to the Delta State

O i l p r o d u c i n g A r e a s

Development Commission

(DESOPADEC) to complete

all ongoing projects in their

domains.

The traditional rulers made

the appeal during the visit of

t h e C o m m i s s i o n e r

representing Uvwie, Udu,

Ughelli South and Urhobos in

Warri in the board of

DESOPADEC, evangelist

Johnson Boro to their various

palaces which was described

as historic and encouraging.

At the palace of the Ovie of

Uvwie, HRM Emmanuel

Sideso (JP) OON, Abe the

first, the Monarch lauded the

visit of the DESOPADEC

Commissioner describing it

as the first of its kind.

The Royal Father who spoke

through Chief Tuesday

Onoge, President General,

Uvwie General Improvement

union (UGIU) highlighted

some areas of need of Uvwie

people.

Earlier in his speech, the

C o m m i s s i o n e r i n

DESOPADEC, Evangelist

Johnson Boro told the Uvwie

Monarch and his Council of

Chiefs (Ogwedion) that he

was in the palace of the Ovie

of Uvwie to seek for royal

blessing, support and to

brainstorm on the way

forward for oil communities

in the area as directed by the

State executive governor, Dr.

E m m a n u e l E w e t a n

Uduaghan.

The story was the same at

the Palace of the Ovie of

Agbarha Kingdom as the

DESOPADEC Commissioner

was guest to Orhifi Ememoh

II,the traditional ruler of the

kingdom.

T h e A g b a r h a - Wa r r i

paramount ruler whose

address was presented by one

o f t h e p a l a c e C h i e f s ,

expressed happiness that the

visit of Evangelist Johnson

Boro will turn the fortunes of

the Urhobos in Warri for the

better.

Traditional rulers decry abandoned projects

Emma ARUBI

53

WA R R I -

T H E

e l d e r s

a n d

leaders of

Ugborodo community in Warri

South-West council area of

D e l t a S t a t e , S u n d a y

dethroned its community head

(Eghare-Aja), Pa. Wellington

Ojogor and installed Pa.

Pender Nene as the new

Eghare-Aja at the Ode-

Ugborodo, their ancestral

home.

Similarly, the people have

appealed to the National

Assembly to pay an official

working visit to the erosion

ravaged oil-rich Ugborodo

community, major host to

Chevron operations in West

Africa to enable them see, first

hand, the damages being

wrecked on their communities

by the vagaries of the Atlantic,

saying that the House of

Representatives Committee

m e m b e r s t h a t v i s i t e d

U g b o r o d o o n F r i d a y ,

November 11, 2011 did not

step out of their boats to meet

or see the people and the

a b a n d o n e d s h o r e l i n e

protection job to appreciate

… Request legislative intervention

Emma ARUBI

the enormity of their plight.

Ugborodo Community Trust

Vice-Chairman, Mr. Isaac

Botosan, who spoke to

Sweetcrude on the installation

of Pa. Pender Nene as the new

Eghare-Aja, said the elders

skillfully played them out of

the installation scheme to

forestal the leakage of

information to the public,

because the youths have

sometime in September

frustrated their plan.

He expressed regret that the

former Eghare-Aja , Pa.

Wellington Ojogor has for

some time abandoned the

community and ran to Warri

while Pa. Pender has been

performing his traditional

duties.

Pa. Ojogor was alleged to

have been whisked away from

Ugborodo in a commando-like

style by security men in

company of some of his

children on August 26 and has

since not returned after over 90

days.

Pa. Wyne W. Agba who

performed the traditional rites

of installation in a brief

ceremony according to Mr.

Isaac Botosan, stated that

Ugborodo cus toms and

traditional duties as assigned

to Pa. Ojogor was suffering and

the situation needed to be

urgently corrected especially

as the year runs to an end,

saying that the people have

elected their head and so it

shall be.

Pa. Wyne Agba therefore

called on al l Ugborodo

i n d i g e n e s , g o v e r n m e n t

agencies, security agencies, oil

m a j o r s a n d s e r v i c i n g

companies operating in

Ugborodo land to accord Pa.

Wyne Agba all the due

privileges of the his new office.

Speaking to Sweetcrude on

w h y t h e H o u s e o f

Representative team that

visited Ugborodo did not come

down to the community to meet

the people, see and inspect the

abandoned shore protection

project in the community, the

Member representing the

Warri Federal Constituency in

the team, Hon. Dan Reyenieju

said there was no need for that

as they had a very good view of

the effects of sea erosion on

Ugborodo land from their

boats, saying that he was not

out to play politics with the

assignment.

He stated that he was

determined to ensure that the

shore protection project enters

the 2012 budget by bringing

the House members to see

things for themselves.

The Legislators in section

A R R I - A Delta State High Court W

sitting at Otor-Udu has ordered the Deputy Comptroller of Prisons at t h e O g w a s h i - U k u prisons, to produce before it, the Managing Director of Mustard Seed M i c r o - I n v e s t m e n t Limited, Pastor Glory Abrefera, detained over alleged N42.5million fraud by the Economic and Financial Crimes Commission, EFCC.

The court presided over by Hon. Justice (Mrs) Azinge, also threatened to issue a warrant of arrest on the Deputy Comptroller. if he fails to produce the wonder bank chief on the next a d j o u r n e d d a t e o f November 28, 2011.

This order follows failure by the prison authorities to produce the bank chief on two previous occasions as ordered by the court on S e p t e m b e r 2 6 a n d November 9 respectively in blatant disregard to court orders.

T h r e e a g g r i e v e d c u s t o m e r s o f t h e investment scheme had petitioned the EFCC that led to his arrest and a r r a i g n m e n t a n d d e t e n t i o n s i n c e December last year at the Okere prisons from where he was moved to t h e O g w a s h i - U k u prisons.

All his known business outfits and eateries in Delta state has been sealed-up by the EFCC until recently when they were re-opened for o p e r a t i o n s w h e r e payments are made into a special account.

Court orders prisons to produce suspect

Emma ARUBI

54

For indigenes of Ezetu I, Foropa, Koluama I and Sangana on the Atlantic fringe

of Southern Ijaw and Brass local government areas of Bayelsa State this is certainly not the best of time given the speed at which they are losing their ancestral land.

Unless urgent remedial steps are taken, these serene rural fishing settlements which tourism potentials if properly harnessed could turn out to be money spinner for the state government might be lost to the surging sea.

Sweet Crude gathered from the troubled natives that these oil and gas rich enclave had over the years lost a substantial part of i ts landmass to the sea.

Sadly, these communities which are oil and gas rich and h a v e c o n t r i b u t e d significantly to the revenue profile of the country and Bayelsa State are lacking both state and federal government presence except for few Nigerian soldiers manning oil facilities in the deep swamp.

The only vest iges of development in the area are projects put in place by Chevron Nigeria Limited t h r o u g h t h e G l o b a l M e m o r a n d u m o f Understanding (GMoU) it entered into with the host communities.

Sweet Crude investigation revealed that coastal erosion menace is not limited to the a b o v e m e n t i o n e d

Samuel OYADONGHA

communities alone as there are several others along the Atlantic shore facing the same dilemma.

An indigene of Koluama, who simply identi f ied himself as Omie John recalled how the entire community was submerged some decades ago forcing them to migrate to their present abode.

According to him, the site w h e r e t h e o f f s h o r e Pennington platform is presented located was once on a dry land.

Aside the coastal erosion t h r e a t e n i n g t h e v e r y existence of the hapless natives’ investigation further revealed that they are also contending with the absence of health facilities to cater for their health needs.

Surprisingly, Chevron it was learnt had remained the only source of development agent for the natives as witnessed recently when it commissioned projects ranging from teachers quarters building, potable water projects, public toilets, concrete foot br idges, community rest house, installation of transformers, concrete jetty and renovation of primary school buildings in the communities.

The projects estimated at N482m were executed by the Keffes Rural Development Foundation, one of the Regional Development Committees under the c o m p a n y G l o b a l M e m o r a n d u m o f Understanding (GMoU).

Corroborating Sweet Crude

finding, the Paramount Ruler o f E z e t u - P e n n i n g t o n Kingdom, King I.N Igbousa Oduo X described the coastal erosion menace as worrisome and called on the federal/state governments and other relevant agencies such as the Niger Delta Development Commission (NDDC) to come to the aid of the communities.

The royal father noted that apart from putting in place control measures to combat the ocean threat he also called for the construction internal road and drainage network to stem the threat.

His words, “some key challenges confronting our communities include the threat of erosion, lack of health facilities to cater for our health needs.

Peaceful protesters

ARRI - AS dare-devil robbers Wcontinue their

onslaught on residents of the oil city of Warri, Delta state, two workers of the Vanguard Media Limited office, escaped death by the whiskers as a stray bullet in a gun duel with policemen pierced through one of the offices and landed at the office of the regional editor.

The robbers, who wore Mobile Police uniforms, engaged the Police from the JJC Ginuwa axis of the road directly facing Vanguard office, thus forcing the workers to lie flat on their stomach to avoid being hit by stray bullet.

The incident which held traffic to a standstill for more than 30minutes along the ever busy Warri /Sapele road brought out the Mobile P o l i c e m e n c l o s e t o Vanguard office on guard duty at a new generation bank into the major road, to scare off the robbers from gaining entrance from their JJC road position.

Vanguard gathered that, when it became obvious to the thieves that they could neither go back or forth in their escape bid due to security cordon, they melted into the Agbarha community area causing residents to scamper for their dear lives.

The security agents later drove into the Ukpokiti outlet of the area in their bid to fish out the runaway robbers without success.

Meanwhile, the Vanguard workers, namely Mirabel and Nelly said they would organize a Thanksgiving service to God to celebrate their being alive to tell the story of the ugly incident.

Incidences of bare-faced day l igh t robber y has become the in-thing in Warri recently in view of the coming Yuletide festivities, even as the mother of the Delta State Commissioner for oil and gas, Madam G b u b e m i w h o w a s kidnapped Sunday morning was released Wednesday morning without ransom following the capture of some persons related to the suspected kidnappers.

Emma ARUBI

55The

Questionjohniyene@yahoo.com

WA R R I -

T H E I t s e k i r i a n d U r h o b o

ethnic nationalities in Delta State yesterday task the board and management of the state oil intervention agency, DESOPADEC on ensuring that all projects awarded in their mandate areas are executed to the letters.

They also charged the Commission to ensure that only projects whose cash allocation is readily available are awarded to enable the contractors to mobilize to site for job execution, saying that where jobs are awarded to a known community contractor who declines to mobilize to site due to lack of mobilization fees, the communities readily ho lds tha t con t rac to r s responsible for undue delays in job execution.

Both ethnic nationalities made these remarks at the DESOPADEC Town Hall meetings held for the Urhobos of Delta Central and Itsekiris of Delta South district at the Wellington hotel, Effurun and the Mismate hall at Chief Eyewoma residence, Esisi road, Warri.

Itsekiri, Urhobo task DESOPADEC on projects completion

Emma ARUBI

They stated that job abandonment is a function of lack of funding from the Agency with banks not willing to finance such project due to DESOPADEC failure to honour their financial obligations to their contractors.

One of the women argued that women can be easily empowered with little cash loan to set up their business and even trained through vocational centres while the youths should be trained at skills acquisitions centres for

various trades.Pres ident o f I t seki r i

Development Association, IDA, Comrade Newuwumi Omolubi, on his part advised the Commission to drop all Engineers monitoring and issuing certificate of job completion for jobs not executed in the Itsekiri areas, even as he charged the Commission to dismiss any staff of the agency deployed to Itsekiris rural areas that declines to resume work.

He said what the Itsekiris needed most was land reclamation in their areas.

President of the Itsekiri Natioanl Youth Congress, INYC, Hon. David Tonwe warned that any contractor that further defaults on project execution in Itsekiri land would have his contract terminated henceforth.

C h a i r m a n o f DESOPADEC, Mr. Kpogho assured the people that all their submission are well t a k e n , n o t i n g t h a t commission was desirous of getting their input into the 2012 budget in a bottom –up manner to ensure that only projects requested by the various ethnic groups are awarded to them as legacy projects.

Water project

Job abandonment is

a function of lack of funding

from the Agency with banks not

willing to finance such project due to DESOPADEC

failure to honour their

financial obligations to

their contractors

I remember how as a young teenager I was caught

within the grips of what my friends and I now call

the “Kodendiara effect.” It was Camara Laye, the

author of “The African Child,” who introduced our

young African minds to the delicious mystery of

Kodendiara. Although in Ijawland newly born males are

circumcised on the eighth day after their birth, we longed to

have the more traumatic Guinean version which was

performed between the ages of twelve and fourteen, in order

for us to experience a real coming into manhood with an

inevitable meeting with the legendary Kodendiara. Laye

depicted an Africa of rolling hills, lush meadows and

unspoilt glades, an Africa far less developed than the

Europe of the 1950s but nevertheless a much beloved Africa.

The Africa of Camara Laye was going through a process of

changes that appear to have scarred her deeply. Having

been weaned of the unwholesome practices (cannibalism,

piracy, slavery and schism) that almost destroyed them,

European societies had imbibed civilisation but still had

needs for expanding their pretentious empires. Upon the

invitation of Otto von Bismarck, German Chancellor and

statesman, the ‘civilised world’ as it was then constituted

(the United States opting out) met up in Berlin and

partitioned Africa into spheres of influence for the signatory

countries. With a few exceptions such as South Africa and

apart from the violence required at the points of entry to

quell dissent against occupation, violence by colonialists

within the African continent was rare and subtle even when

applied. Laye’s Conakry was an idyllic society where

Africans and Europeans co-existed in a predictable and

mutually acceptable pattern with the available

infrastructure sparse but also curiously sufficient for the

populace. But that was the turning point, the moment of

great changes for Africa; the continent peopled by dark skin

natives were about to be liberated by her own.

In form the African people have been liberated but the

substance of their existence show they have need for further

liberation, this time, from their own kind. Apart from Ghana

and South Africa, the societies of Africa are governed by

political interest groups that mock and force the will of the

people. It is very simple logic that leaders whose

performances are not reviewed through the ballot do not

pursue or advance the preferences of the ballot and the

ballot can only attract obeisance where it is effective. The

political activists of Laye’s generation took much for

granted; they trusted in the inherent goodness of the African

to his fellows. There were hardly any futuristic plans to

develop the political structures of the societies created by

the colonialists, with the result that new interest groups with

intents not different from the conferees at Berlin in 1884,

hijacked power for their selfish interests. The direct

implication of the logic of a weak ballot is the failure of the

society.

The gullies on our roads, our inability to generate

sufficient energy for our technological advancement, the

insecurity on our streets, the slums and unplanned dwelling

places, the unwholesome practices of regulatory agencies

and the sharp reduction in life expectancy in our societies

are all traceable to weak ballots. In Nigeria’s last elections,

eligible voters were accredited and told to queue up again to

vote. After the accreditation, no one taking the toll of

accredited voters, corrupt electoral officers enter

accreditation for voters who did not turn up to vote and cast

votes for them. The moral behind the Obasanjo-Bello failure

is that even those who design a system of electoral fraud can

become victims of the system with time.

We can still do it right and justify Camara Laye’s

generation’s trust in the intrinsic goodness of the African to

his fellows so that even though we may not bring back those

green hills, meadows and glades that was the Africa of yore,

we can live in orderly, predictable and safe societies in

which Kodendiara will only be invoked to chastise errant

behaviour in the young.

Developing our societies through qualitative democratic culture

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