FG Rules Out Fuel Price Reduction, Caps Price Band At N97/Barrel



Fuel Storage Tank Farm

 

FG Rules Out Fuel Price Reduction, Caps Price Band At N97/Barrel

Sopuruchi Onwuka

There will be no fuel price respite for Nigerians in 2016 as federal government yesterday declared that it would not reduce the retail price of petrol in the domestic market despite the 67 percent fall in the international prices of the product.

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who hosted a media briefing in Abuja to deny fixing petrol price at N97 for 2016 clarified that a new price mechanism would roll into effect in 2016 to keep petrol retail price within a range between the current N87 per liter and N97 per liter.

The clarification came in response to reports attributing Dr. Kachikwu as stating that petrol prices would go up by 2016.

Following the reports players in the country’s domestic fuel market have quickly resorted to hoarding available stock with a target to make huge profits when prices go up in less than three weeks.

The situation has worsened fuel scarcity in the country and sparked off a spate of public outcry from various stakeholders against alleged planned price increase. Both marketing groups and labour leaders faulted the proposal as inconsonant with the prevailing price trends in the global fuel market.

According to USA Today, an American daily newspaper, prices gasoline in the country have slumped by 55 percent following fall in the prices of crude oil from about $120 per barrel last year to about $50 per barrel this month.

A team of analysts from Platts Market Intelligence Group that visited Nigeria recently had pointed out that inability of fuel price to come down from previous levels after crude oil prices plunged by over 60 percent is unusual and unsupported by market fundamentals.

Daily price templates by PPPRA puts expected open market price for petrol at N91 per liter, a figure independent market players dispute as too high.

In his clarification yesterday, Dr. Kachikwu said whereas N87 per liter will be the expected minimum retail price for the product in 2016, marketers will not be allowed to sell beyond N97 per liter.

Dr. Kachikwu who is also the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) noted that the discourse has long left the realm of subsidy removal to a more scientific price modulation approach which entails an elastic price mechanism that would follow international price trend.

According to him, the new price mechanism would be built into a new template to be evolved by the Petroleum Products Pricing and Regulatory Agency (PPPRA) to reflect the prevailing international price of crude.

He explained the new price modulation system would place a N97 per litre cap on the price of fuel to ensure that Nigerians are insulated from the vagaries of the global crude price.

`` I did not say that refined petroleum products will sell for N97 per litre next year. I said that between a band of N87 and N97 we are going to be looking at prices and today the prices are largely close to N87. So, there is no need to change the price.’’

The Minister said PPPRA would undertake quarterly review of the crude market situation.

 “I have not put a static figure. PPPRA will have to do the calculation to be able to announce what price of PMS will sell for in January; but we do not anticipate any major shift because of the price of crude today.’’ 

Meanwhile our survey of the market yesterday showed a very tight supply situation with few retail outlets that opened to customers contending with huge crowds of desperate motorists struggling to buy fuel.

Very few retail stations of both private marketers and NNPC opened for business while sharp market activities ruled transactions.

At places where independent marketers opened to customers, prices ranged from N100 per liter and N150 per liter depending on location. Some of the station managers also introduced different tolls at their forecourts before a customer was allowed in.

Nigeria Pumps 574 MMbbls In 9 Months

Nigeria Pumps 574 MMbbls In 9 Months

Nigeria pumped a total of 574.3 million barrels of crude oil and condensate in the first nine months of the year with indigenous players in the industry accounting for 32.825 million barrels, the lowest output among industry production groups.

The Nigerian National Petroleum Corporation’s (NNPC) Monthly Financial and Operations Report for October 2015 showed that independent and marginal oil fields’ operators as at the end of the third quarter, Q3, accounted for about 5.72 per cent of total crude oil and condensates production.

The financial statement also revealed that the independents/marginal fields operators produced 32.825 million barrels of crude oil and condensates in the nine-month period, compared to total production of 574.325 million barrels between January and September 2015.

Using an average oil price of $53.78 per barrel, as stipulated in the NNPC report, the 32.825 million barrels of crude oil and condensates produced by the independents/marginal fields operators translates to $1.765 billion, an equivalent of N353.07 billion.

In general, the report put total crude production in Nigeria in the nine-month period at 574.325 million barrels, an average of 2.1 million barrels per day, at an estimated value of $30.887 billion or N6.177 trillion.

In addition to the independents and marginal fields operators’ contribution, the production sharing companies, PSC, recorded the highest crude oil and condensates production during the review period, accounting for 239.623 million barrels or 41.72 per cent of total production.

 

The Joint Venture (JV) companies followed, accounting for 31.7 per cent of total crude oil production with 182.29 barrels of crude oil and condensates.

Alternative Finance followed this with 16.3 per cent or 93.569 million barrels, while the Nigerian Petroleum Development Company (NPDC) produced 26.017 million barrels representing 4.53 per cent of total production. On NPDC’s performance, the NNPC report said: “NPDC production is expected to hit production levels  of 250,000 barrel per day, after the completion of the ongoing NPDC re-kitting project.

Production from NPDC wholly operated assets amounted to 7.855 million barrels or 30 per cent of total production; with Okono Okpoho (OML 119) alone producing more than 79 per cent of the NPDC operated Assets or 24.08 per cent of the total NPDC production”.

Also on the NPDC operated JV assets, in which the company owns 55 per cent controlling interest, crude oil production amounted to 10.803 million barrels or 42 per cent of the NPDC total production while the JV assets not operated by NPDC, production level stood at 7.359 million barrels or 28 per cent of the company’s production.”

Oando Braces For Tough Growth Advancement

Oando Braces For Tough Growth Advancement

Sopuruchi Onwuka

Indigenous energy group, Oando Plc, has successfully recalibrated its strategies for continued growth advancements following financial turbulence associated with the global oil price fall that saw oil world’s strongest companies staggering to regain balance.

The company last week secured approval of its shareholders for strategic repositioning in the industry. The company plans to activate available fund raising measures to boost its cash flow, embark on accretive asset acquisition and drive a sharpened growth in specific business niches that offer best returns on invested funds.

From proposals presented to its shareholders at its Annual General Meeting (AGM) in Lagos, there are indications that Oando plans to change from an integrated energy group to a group of independent business affiliates with diversified ownership structure and broader corporate governance structure.

The new business model, apart from spreading risks and cutting overhead liabilities at a time of revenue downturn in the industry, appears targeted at standing the business arms of the company as independent competitors in their different fields of play and relieve them of encumbrances of integrated management.

The new business moves form the major responses of the group’s management to the revenue adversity that overwhelmed the industry following the acute fall in the prices of fuel commodities in the international market after investors sunk huge investments in asset acquisition and development.

The fall of international prices of crude oil and natural gas has compelled rebasing of all industry value projections and downgrading of asset values, a development that impacted the booked value of assets and financial projections of companies that span across the full industry business chain.

With the continued global economic downturn due to depressed oil prices, companies have taken proactive measures such as divestments, capex cuts, and suspension of projects to ensure profitability and returns for shareholders in this new reality of low oil prices.

The developments at Oando Plc is of special interest to the Nigerian investment community given the position of the company as the sign post of indigenous capacity growth across the full spectrum of the petroleum industry.

The company which sprouted from seed ideas from a team of dynamic young investment upstarts in the downstream end of the industry has since rapidly grown into a multinational energy factor with a diversification spread that has since established Oando as integrated energy group.

Oando PLC currently stands tall among its peers as Nigeria’s largest indigenous oil and gas company and integrated energy solutions provider with huge market influence across the West African region and equity interests in Nigeria, South Africa and Canada.

Going by numbers-including volumes of traded commodity, and financial value of assets and deals-Oando’s affiliates still maintain leadership in their different business niches in Nigeria. Oando Energy Resources stands Nigeria’s biggest oil and gas producer by equity; Oando Gas & Power leads in delivered volumes, diversified products and market coverage; Oando Marketing boasts of the biggest product volumes as well as the highest number of retail outlets among the major oil marketers in the country; Oando Energy Services commands control of some of the most sophisticated rigs in the country; while Oando Trading is the uncontested leader in domestic market supply.

The businesses of the affiliates of the Oando Group desirably and expectedly support a myriad of small ancillary businesses whose activities sum up to significant contribution to the nation’s gross domestic product (GDP).

Given the pioneer and leadership roles of Oando in the indigenous sphere of the Nigerian petroleum industry, it is therefore not outside the field of sound logic to see the business performance of the company as a critical gauge for the success of the highly celebrated Nigerian Content policy in the petroleum sector.

It is in the foreground of the Oando’s highly rated position in the industry that the company’s 2014 financial performance put investors, financial services providers and analysts on alert over the impact of the global oil price crash on the fate of corporate outfits that sunk fortunes in asset growth just before the prices came crashing.

Oando recorded debilitating losses following writedowns on booked asset values and financial projections which lost bases with alteration of revenue expectations from the market where plummeting prices shattered calculations that supported bullish investments.

But the management of the company has remained boldly unshaken, constantly reiterating that the company’s losses were primarily in asset value and not in cash, technically described as impairments.

While explaining that the key drivers for the company’s 2014 losses are asset impairments, the Group Chief Executive (GCE), Mr. Wale Tinubu, explained in a financial statement that “an impairment occurs when the current value of a company's assets are reduced or can no longer be recovered as a result of certain market conditions. The company’s impairments were largely caused by the global drop in oil prices.”

He clarified that “it is important to note that these impairments are not cash losses, but are reductions in the value of our assets.”

Consonant with the global market downturn, the company’s oil and gas reserves shed huge market value with the crash in crude oil prices. OEs’s drilling rigs also lost value as service rates and activities took a hit from the price depression.

Other policy, fiscal and transactional glitches in the domestic environment also imposed challenges that eroded the value of cash in transaction. Lingering government debts, depression of local currency and bad debts meant that the company also suffered additional losses unrelated to oil price fall.

Inevitably, the cumulative impact of challenging operating environment and market gloom on the company’s balance sheet was negative for the financial year; and the management has evolved new business models to advance against the headwinds.

During the AGM, Oando’s management presented a new business agenda to the shareholders, which primarily entails minor restructuring of the company to raise funds and strengthen the company against prevailing challenges.

In the new plan captured in the company’s 2015 to 2019 strategic objectives, Oando targets to increase production from current 55, 000 barrels of oil equivalents per day (55 kboepd) to 100 kbpd in the near term, and grow its proven and probable reserves from current 420.3 million barrels of oil equivalents (420.3 MMboe) to 500 million barrels of oil equivalent through organic growth, mergers and acquisitions.

Oando also plans to modify its oil services play through partial or full divestment of Oando Energy Services (OES) within the period and enter into strategic partnerships to jointly deploy deep-water and offshore rigs.

In the gas and power portfolio, Oando declares plans to expand its footprint through development of up to 300 megawatt (MW) grid based and embedded power projects, develop up to 100 million standard cubic feet per day (mmscfd) of compressed and liquefied natural gas (CNG & mini LNG) projects, build a 300 mmscfd gas processing plant, and expand gas pipeline footprint to 300 kilometres.

In the downstream, the company proposes to commission its Apapa Jetty which, it stated, will be Africa's first midstream jetty that will contribute significantly to the company's overall net profit through tolling fees.

The company’s management also plans to successfully conclude the partial divestment of its downstream business which in order to reposition Oando for renewed investment and profitability.

The company stated that the growth strategy would adapt to the extended period of lower oil prices through aggressive debt reduction, financing via partial divestments, and further diversification into the higher margin upstream.

“Additionally, by ensuring a reduced overhead at the group-level and to optimise performance, Oando seeks to drive focused, independent subsidiaries which can raise stand-alone capital to exploit clear market opportunities.” The company stated in briefing notes to journalists in Lagos.

Mr. Tinubu said: “The sale of 60% of our downstream business is in line with our strategic goals of placing our fundamental growth expectations in the Upstream, and the cash proceeds of the divestment will be utilized towards debt reduction to shore up our balance sheet in these challenging times. Our strategic focus is to increase our operational efficacy across our subsidiaries, deleverage our balance sheet, and return the company to profitability, whilst creating the necessary platform to be the partner of choice to the IOCs as they continue their divestment programmes.”

The company stated that it has continued to execute its strategic plan as outlined in previous years, successfully completing the first segment of the 10 km Greater Lagos Pipeline Ijora - Marina extension, and signed an agreement with an indigenous contractor for the nine kilometre extension of the CHGC pipeline in Port Harcourt.

The company has also signed agreements with General Electric, Nigeria to engage in various initiatives to develop power generation projects, Compressed Natural Gas facilities and mini Liquefied Natural Gas projects, aimed at aggressively expanding its gas footprint in Nigeria whilst remaining the gas provider of choice to consumers.

“The company steadily navigated the ups and downs of the cyclical oil & gas market by adapting quickly, recording key operational milestones and being fiscally innovative to enable its business operations run efficiently. This led to an 82% increase in 2P reserves from 230.6 MMboe to 420.3 MMboe and an 11 fold increase in production from 4,531 boe/day in H1 2014 to 55,399 boe/day in H1 2015,” according to the briefing notes.

Oando also reset its crude oil hedge floor price from an average of $95.35 per barrel to $65 per barrel. “This measure saved the company $65 million in interest payments over the remaining term of the loan facilities used in its landmark acquisition of ConocoPhillips Nigeria. The company also upsized $91 million of its senior secured facility from $215 Million to $306 Million, and repaid its $100 Million African Export-Import Bank subordinated loan facility, thus reducing its debt position from $900million as of July 2014 to $500million as of October 2015.  Looking to the future Oando’s E&P subsidiary is expected to contribute $150 million on an annual basis translating to expected dividends for shareholders once its debt portfolio is cleared.”

“Oando also completed the construction of the Island Jetty in Apapa, Lagos which will provide a more efficient platform for product receipt to all marketers and lead to higher margin volumes with an estimated $36 million expected annually in revenue and $120 million demurrage cost-savings for the sector per annum.”

With convincing plans and action strategies before them, the shareholders of the company overwhelmingly granted all the prayers of the management, thus clearing all hurdles for Mr. Tinubu and his team of business technocrats to advance realization of the company’s agenda under a new strategy designed to thaw through the current industry headwinds and deliver the objectives of sustainable value for all stakeholders.

 

Oil & Gas Groups Warn Govt Of Looming Economic Crisis

Oil & Gas Groups Warn Govt Of Looming Economic Crisis

...Point at depleting oil and gas reserves  

Sopuruchi Onwuka

Professional groups in the Nigerian Petroleum industry have advised the new administration of President Muhammdu Buhari to ensure robust consultations with players in the sector in order to evolve workable polices that would deliver on prime national aspirations.

The position follows calls by the groups on government to speedily stimulate exploration and production activities in the Nigerian petroleum industry in order to place the country on competitive reserves and production status with peer members in the Organization of Petroleum Exporting Countries (OPEC).

The calls were the central message at the 2015 industry dinner and awards night hosted by the Petroleum Technology Association of Nigeria (PETAN) in Lagos weekend where leaders of key professional groups took a common stand on the way forward for the Nigerian petroleum industry.

The event which rounded off meetings, conferences and other pan-industry forums that form platforms for policy debates pooled leaders of key industry groups including PETAN, Nigerian
Association of Indigenous Petroleum Companies (NAIPEC), Nigerian Association of Petroleum Explorationists (NAPE) and Society of Petroleum Engineers (SPE).

Whereas PETAN, the platform of indigenous oil service firms, and NAIPEC are beigest employers of indigenous oil industry workforce; SPE and NAPE house of over 85 percent of total industry core workforce comprising engineers and geologists working in both indigenous and multinational firms in Nigeria and elsewhere.

Chairman of PETAN, Mr. Emeka Ene, an eminent petroleum engineer, stated in his opening speech at the event that the nation’s crude oil reserves might not sustain realization of the country’s long term economic targets if urgent measures are not activated to boost exploration activities.

Mr. Ene who is also the erstwhile Chairman of the Nigerian Council of SPE said the low price cycle in the global oil market and consequent drop in cost of services in the industry have provided government the opportunity to drive exploration of more oil and gas across all the terrains in the Nigerian sedimentary basins.

In explaining that exploration is best at times of low price cycle, Mr. Ene who is the Managing Director of Oilserv Group, urged Nigerian to follow the steps of her peers in the Middle East and North Africa (MENA) where he pointed out that exploration rig counts have sharply risen since the fall in oil prices.

He pointed out that Nigeria’s long term economic aspirations are at stake in the current industry impasse where exploration investments have fallen, dragging down field activities and compelled redundancy and massive staff lay off across the industry.

In proffering most cost effective approach to driving realization of national aspirations in the petroleum industry, Mr. Ene declared that value added local content in the oil and gas industry is a guarantee of cost reduction.

He urged the government to provide solid basis for its medium to long term economic aspirations by pursuing realization of the set agenda to boost the nation’s crude oil reserves to 40 billion barrels, build production capacity to 4.0 million barrels per day, monetize the country’s vast natural gas resources and increase the local content of the industry activities.

The only way to continue driving the aspirations under the prevailing low price cycle in the industry, he said, is to optimize the use of indigenous and local capacity for job delivery.

In his keynote presentation at the dinner, erstwhile President of Nigerian Association of Petroleum Explorationists (NAPE), Mr. Austin Avuru, decried the low reserves status of the country saying that despite the highly advertised economic contributions of the petroleum industry, the sector has become a drag on the country’s gross domestic product (GDP).

Mr. Avuru, an eminent geologist who the Managing Director of Seplat Petroleum, blamed the direct impact of the oil price drop on the inability of the government to build sovereign wealth fund to buffer against sudden price shock in the export market.

He pointed out that whereas other OPEC countries are driving exploration activities with sovereign wealth funds despite the current low oil prices Nigeria has been plunged into deep cash crunch due to unavailability of no such funds.

The UNION reports that the sovereign wealth fund established by the previous administration of federal government was shared at the request and subsequent pressure from governors of the federating states of the country.

He corroborated Mr. Ene’s position that the medium to long term economic aspirations of o the country have become unrealistic because, according to him, little or no exploration activities in the industry means that the nation’s lean oil and gas reserves can no longer provide support for the much hyped economic projections.

He pointed at falling oil production from the traditional onshore and shallow water terrains from 2.4 million barrels per day to current 1.2 million barrels per day (mbd), explaining that production from the deepwater which could have increased the nation’s production has ended up only stabilising output at 2.4 mbd.

Mr. Avuru also drew attention to imminent gas crisis, saying that rising domestic gas demand means that the existing reserves could not support medium term demand projections.

Domestic gas demand, he said, has jumped from previous 300 million standard cubic feet per day (300 scf/d) to current 1.0 billion scf/d with projections that demand would balloon to 3.0 Bscf/d by 2017.

“The projected domestic gas demand is about four times more than what the country’s current estimated gas reserves can support,” he declared pointing at industry estimates that place the nation’s proven and probable gas reserves at 100 trillion cubic feet.

He blamed the unworkability of government policies on the collapse of industry-government interface, stressing that government has become increasingly unable to listen.

Mr. Avuru who is one of the pillars of NAIPEC stated that government has been formulating polices from the point of ignorance with national economic aspirations underpinned by unrealistic and untenable projections and aspirations for the petroleum industry.

He pointed out that policy makers have resorted to playing to gallery with popular catch phrases that are not underpinned by detailed planning.

In rolling out a pan-industry recommendation to government, Mr. Avuru demanded that government’s planning must derive from the outcomes of proper industry interaction, adding that industry groups must have regular and unfettered access to government.

He also pointed out that industry targets and programme executions must be focused on clear deliverables, enablers and expected objectives. He added that the processes of policy executions must be transparent, credible and clearly understood by all stakeholders for easy performance benchmarks.

He stressed that government must also see the industry as enablers of economic growth and not just as revenue earners. He said government must fully fund activities and re-inject vibrancy in the upstream petroleum industry in order to guarantee optimum rental income to the nation.

On the whole the groups warned government to map out plans to reactivate exploration activities in all domestic industry terrains, pointing out that gains of Nigerian Content Policy in the past years might be lost if investments in robust capacity development is left unutilized in driving realization of national aspirations in the oil and gas sector.

 

Akon, Hardwork Launch Shell’s Human Energy Pitch With Music Video

Akon, Hardwork Launch Shell’s Human Energy Pitch With Music Video

Global music starAkon joined Shell to shine a light on the power of innovative options for access to smarter energy by unveiling Africa’s first human and solar powered football pitch at the Federal College of Education, Akoka, Lagos.

The new pitch is the latest initiative from Shell’s #makethefuture programme, which puts bright energy ideas into action to bring benefits to local communities around the world.

The football pitch was refurbished by Shell using more than 90 underground tiles that capture kinetic energy created by the movement of the players. The tiles are the invention of a young British entrepreneur and founder of Pavegen, Laurence Kemball-Cook, who has been supported through Shell LiveWIRE.

Thekinetic energy is then stored and combined with power generated by solar panels to operate the new floodlights. This bright energy idea allows the students to play at night andprovides a safer and more secure space at the heart of the community.

Music superstar and solar entrepreneur Akon joined Shell to officially open the pitch and continue his commitment to teaching young Africans the importance of harnessing the power of Africa’s renewable energy.

The singer is spearheading,through Akon Lighting Africa,a large scale effort to develop solar-powered solutions that will provide African communities with access to clean and affordable sources of electricity. As part of the celebration at the Federal College of Education, Akon and DJ artist Philip “Hardwork” Constabledebuted their new song “Tell Me We’re OK” in an exclusive performance on the pitch before its release in 2016. The innovative football pitch will feature in the upcoming music video.

OsagieOkunbor, Country Chair, Shell Companies in Nigeria & Managing Director of The Shell Petroleum Development Company of Nigeria Ltd (SPDC)said, “Shell makes a significant contribution to energy solutions for Nigeria, and we are committed to supporting the Nigerian economy and its people. We need bright energy ideas. Some of these will come from Shell but naturally, others will come from outside our business. So it’s crucial that Shell supports energy entrepreneurs, and we hope that this pitch will inspire more entrepreneurs and young people to help us make a smarter energy future.”

 

Akon commented, “New, reliable and smarter energy solutions play a major role in driving human progress in Africa. Projects like thisinnovative football pitch draw attention to the major opportunity that Nigeria as well as the whole of Africa have if we look to better harness new technologies and the continent’s abundant renewable energy resources. That is why Hardwork and I will feature this pitch in our upcoming video for “Tell Me We’re OK” because I want young people, whether they are in Lagos, Los Angeles or London to think about how they too can help us make the future.”

 

Shell LiveWIRE is an international programme that has been a catalyst for young entrepreneurs to develop enterprising ideas into viable and sustainable businesses for more than 30 years. The LiveWIRE programme was launched in Nigeria in 2003, and since then it hastrained more than 6,000 youths in enterprise development andmanagement, of whom more than 3,000 have been provided with businessstart-up assistance.

Laurence Kemball-Cook, Pavegen founder and CEO and Shell LiveWIRE UK Young Entrepreneur of the Year Finalist in 2011, said, “Our work with Shell has been pivotal to Pavegen’s growth. We got involved with Shell LiveWIRE and Shell Springboard, and both programmes have really helped us transition from a start-up to a small company with a 25-strong staff and global IP. I’m grateful for all the support Shell has given us, and hope we can continue to grow in the smart city future.”

Siji O. Olusanya,Provost of the Federal College of Education, Akoka, added, “We have more than 10,000 student teachers, who will benefit from this innovative solution to light our football pitch. They will be the next generation of teachers across Nigeria and can they use their first-hand experience of this pitch to inspire their pupils that they too can work towards developing bright energy ideas that could make a real difference to their community, Nigeria or even the world. Not only our students but the community that surrounds us will all get to benefit from this pitch for years to come.”

NIPCO Deepens LPG Market With Free Cylinders

NIPCO Deepens LPG Market With Free Cylinders

Nipco plc .an indigenous integrated oil and Gas Company has restated its commitment to promoting use of Liquefied Petroleum Gas [LPG] as domestic cooking gas through the donation of free cylinders to scores of residents of its host community –Apapa.

The offer of the accessories which is one of the corporate social responsibility initiatives of the company attracted hundreds of people including community leaders the Baale of Marine Beach, Apapa, Chief Joseph     Ogunmola [JP] was also part of the conscious programme of the company to deepen use of gas   and discourage use of kerosene as domestic cooking fuel.

In a message to the beneficiaries, the Managing Director of Nipco, Mr Venkataraman Venkatapathy said the donation of the 6kg cylinders attached with burners was part of the company panacea to addressing the challenge of needed accessories to jump-start use of gas as cooking fuel. 

According to him ,the company had to fill  up all the cylinders donated to enable beneficiaries begin its use almost immediately with the hope that after such use they would have seen the inherent benefits of switching to gas as the most efficient cooking fuel .

The MD whose message was delivered at the event held at Apapa Nursery & Primary School in the centre of excellence by the company’s Corporate Affairs Manager, Lawal Taofeek recalled that such initiative was undertaken by the firm last year at Auchi, Edo State in furtherance of Nipco resolve to be part of the change mantra in the use of gas as healthier source of domestic fuel across the country.

He explained that as key player in the industry contributing about 30% of the entire LPG needs of the country through its plant at Apapa would continue to support initiatives that would make the populace harness the abundant gas resources in the country through popularization of LPG as a better alternative to orthodox cooking fuel like firewood and kerosene. 

Venkatapathy noted that the company in ensuring access to gas to prospective and current adherents of LPG as cooking fuel, Nipco had provided skids to serve as refill centres across the country with emphasis on accurate filling by  gas users  aside from numerous campaigns on safety y concerns in its utilization .

A community leader who chaired the event, Chief Ogunmola commended the efforts of the company in this realm adding that he had followed the level of corporate responsibility of the company for some time with lots of amazement.

According to him, Nipco had made a mark in assisting schools with requisite infrastructure, a feat that had improved quality of learning in the two schools the company had intervened in Apapa and Ijora area of the state.

He enjoined the company not to rest on its oars stressing that firms like this ought to be supported to attain higher heights to enable them contribute more to the overall development of the state in particular and the nation in general.

One of the recipients, Mrs Ramoni Adeola    expressed deep appreciation to the company and asserted that the donation will further spur beneficiaries to adopt LPG as domestic cooking fuel even as she commended her for widening the scope of beneficiaries this year

She recalled that last year donation was only to teachers in the Apapa Local Government Education Authority but the 2015 edition included other residents including other women within the Apapa community .           

Development Partners Commssion Moho Bilindo Phase 1b

Development Partners Commssion Moho Bilindo Phase 1b

Chevron Corp. and partners in the Republic of Congo (ROC) saw first production flows from the deepwater development Moho Bilondo Phase 1b. Moho Bilondo Phase 1b is part of the Moho Nord joint development project, the largest-ever oil and gas project undertaken in the ROC.

Phase 1b project includes 11 wells tied back to an existing floating production unit and is expected to produce a total of 40,000 bpd of oil. The Phase 1b development targeted reserves in the southern portion of the Moho Bilondo permit area. The Moho Nord subsea development, which will be the second phase of the Moho Nord joint development project, is in the northern part of the area.

The Moho Nord development project involves a tension-leg platform, a floating production unit with a processing capacity of 100,000 bpd of oil, and a 50-mile pipeline to the onshore Djeno Terminal.

“First oil from the Moho Bilondo Phase 1b development is the latest successful start-up in our diverse portfolio of deepwater projects, which we expect to generate value for years to come,” said Jay Johnson, executive VP Upstream, Chevron.

“The successful development of Phase 1b demonstrates our ongoing commitment to the Republic of Congo and is a testament to industry and government cooperation,” said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company.

“The project integrates the unique skills and expertise of multiple partners to deliver challenging projects and new energy production.”

Chevron Overseas (Congo) has a 31.5% working interest in the Moho Bilondo permit area, along with Total E&P Congo (53.5% working interest and operator) and the national oil company, Société Nationale des Pétroles du Congo (15% working interest).