OGRepublic August Edition
This edition is focused on Shell Nigeria Exploration and Production Company 'Digital Twin' for its Bonga FPSO.
This edition is focused on Shell Nigeria Exploration and Production Company 'Digital Twin' for its Bonga FPSO.
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GECF GAS OUTLOOK
“Africa boasts a number of
promising growth factors”
Yury: “GECF’s Global Gas Outlook 2050 show that
Africa will witness the highest growth rate of
natural gas among all regions of the world
AFCFTA AGREEMENT
“Let’s drive inclusive trade to
boost sub-regional economy”
Osinbajo: “With the opportuni es presented by the
AFCFTA, there is need to drive more inclusive trade
ini a ves and expand intra-regional trade.
OIL AND GAS
REPUBLIC
OIL AND GAS REPUBLIC
www.oilandgasrepublic.com
August Issue 2021
USA $12, Europe €10, UK £8, Nigeria N1500, South Africa R60
3PETAN Promises to Deepen
Collaboration Between SAIPEC
Member Countries and AFCFTA
3AECIPA to Host 2021 AOTC
with Multiple Webinars
3GECF Unveils Plan to Deepen
Gas Development in Africa
3EACOP to Produce First Oil
By 2025 - TotalEnergies
3Shell Boost Support for Women
in Energy, Appoints Eloho Aiboni
as First Female MD for SNEPCO
WOMEN IN ENERGY
“With the Proper Contractual,
Supportive Regulatory
Framework, Project like Egina
can be Replicated..." -
SNEPCO’s ‘Digital Twin’:
A Structural Model for FPSO Digitalisation,
Local Content Opportunities in
Nigeria’s Deepwater Operation
I S S N 2 7 0 5 - 2 0 5 2
Dolapo Kukoyi - PARTNER,
DETAIL COMMERCIAL SOLICITORS
EDITOR’S NOTE
Dear Execu ves,
Publisher:
Engr. Idowu Babalola
(MBA, MNSE, MEI)
Managing Editor
Ndubuisi Micheal Obineme
Editor
Tobi Owoyimika
Legal Counsel
Barr. Jackson Olagbaju
Correspondents:
Genevieve Aningo
Ifeoma Ofole
Samson Binutiri
Oil and Gas Republic (OGR)
Reg. Number: 2347423
Oil and Gas Republic (OGR) welcomes you to our August edi on which is structured based on the
latest trends in the energy industry globally. As part of our commitment to energy transi on, we
are pleased to inform our readers and subscribers that we will be rebranding our publica on soon
to be focused on clean energy developments - from renewable energy, hydrogen, ammonia, offshore
renewables, natural gas, and eventually providing the correct orienta on for an energy transi on
which is now a major talking point in the global energy space.
In this edi on, we did a special focus on SNEPCO's 'Digital Twin' technology for Bonga FPSO, which is
now a trending story in the Sub-Saharan Africa oil and gas industry. The SNEPCO 'Digital Twin' is a
structural model for FPSO digitalisa on, and providing local content opportuni es for indigenous
service companies opera ng in the Nigerian deepwater segment.
Interes ngly, we had an exclusive interview with Dus n Meyer, American Petroleum Ins tute's (API)
Vice President, as he shed more light on how API is using data to measure the role of natural gas in
reducing GHG emissions among others.
Furthermore, we featured some latest industry updates in Africa, Asia, Europe, and America with
other interes ng stories from around the world.
For general inquiries, please email us at: info@oilandgasrepublic.com
Thank you for reading and have a nice day!
Best regards,
Ndubuisi Micheal Obineme
Managing Editor
For: Oil and Gas Republic Publica on
Oil and Gas Republic is an interna onal
publica on covering the en re value
chain of the Renewable Energy, Power
& Electricity, Avia on, Mining, and
Oil & Gas Industry. For more informa on,
please visit www.oilandgasrepublic.com
Email: info@oilandgasrepublic.com
oilandgasrepublic@gmail.com
Phone: +2348065187468
Page 4: Energy Advance Events
Page 11: African Energy Stories
Page 22: Special Features
OIL AND GAS
REPUBLIC
August Issue 2021
GECF GAS OUTLOOK
“Africa boasts a number of
promising growth factors”
Yury: “GECF’s Global Gas Outlook 2050 show that
Africa will witness the highest growth rate of
natural gas among all regions of the world
AFCFTA AGREEMENT
“Let’s drive inclusive trade to
boost sub-regional economy”
Osinbajo: “With the opportuni es presented by the
AFCFTA, there is need to drive more inclusive trade
ini a ves and expand intra-regional trade.
OIL AND GAS REPUBLIC
www.oilandgasrepublic.com
3PETAN Promises to Deepen
Collaboration Between SAIPEC
Member Countries and AFCFTA
3AECIPA to Host 2021 AOTC
with Multiple Webinars
3GECF Unveils Plan to Deepen
Gas Development in Africa
3EACOP to Produce First Oil
By 2025 - TotalEnergies
3Shell Boost Support for Women
in Energy, Appoints Eloho Aiboni
as First Female MD for SNEPCO
WOMEN IN ENERGY
USA $12, Europe €10, UK £8, Nigeria N1500, South Africa R60
Page 25: Oil Market Report
Page 26: Nigeria Oil and Gas
Page 35: Local Content
Page 40: American Petroleum Interview
Page 44: Women In Energy
“With the Proper Contractual,
Supportive Regulatory
Framework, Project like Egina
can be Replicated..." -
Dolapo Kukoyi - PARTNER,
DETAIL COMMERCIAL SOLICITORS
SNEPCO’s ‘Digital Twin’:
A Structural Model for FPSO Digitalisation,
Local Content Opportunities in
Nigeria’s Deepwater Operation
I S S N 2 7 0 5 - 2 0 5 2
Page 49: SNEPCO's 'Digital Twin' Top Story
Page 54: Venezuela Chamber of Petroleum Interview
Page 56: Industry News
ENERGY ADVANCE EVENTS
AECIPA Set to Host 2021 AOTC with
Multiple Webinars
SAIPEC is a Regional Conference Attracting
Players Across the African Continent - ED
Ubong
06 08 09
GECF Unveils Plan to Deepen Gas
Development in Africa
PETAN Promises to Deepen Collaboration with SAIPEC
Member Countries Alongside AFCFTA
The Petroleum Technology Association
of Nigeria (PETAN), promises to deepen
collaboration between the Sub-
Saharan Africa International Petroleum
Exhibition and Conference (SAIPEC) member
countries alongside the African Continental
Free Trade Area (AFCFTA), and working closely
with the event organiser to develop a stronger
platform for SAIPEC subsequent editions.
The PETAN Chairman, Mr Nicolas Odinuwe,
disclosed this while speaking in an exclusive
interview with our correspondent at the sideline
of the 5th edition of the Sub-Saharan Africa
International Petroleum Exhibition and
Conference, held as a hybrid event.
By Ndubuisi Micheal Obineme
He noted that Sub-Saharan Africa has about
62.6 billion barrels of proven crude reserves
with an estimated 221.6 trillion cubic feet of
natural gas reserves, which has positioned the
region to be the last energy frontier and global
hub.
According to him, PETAN created SAIPEC as an
awareness informative platform for the Sub-
Saharan Africa oil and gas industry with a
strong focus on collaboration within the
African market.
"SAIPEC is one of those good catalysts to
fostering collaboration and deepening local
content in the African continent.
"Through this partnership with SAIPEC, we
intend to develop stronger collaboration
between SAIPEC member countries alongside
the African Continental Free Trade Area
(AFCFTA) as well as increasing regional
investment.
"The value chain in the African energy industry
if properly harnessed will transform the
economies in the continent and make us stop
looking out for donor agencies," he added.
PETAN’s sixth edition of SAIPEC will once again
set the stage for Africa’s energy, oil and gas
professionals on 23 – 25 February 2022 at the
Eko Hotel in Lagos, Nigeria.
Hosted by the Petroleum Technology
Association of Nigeria, the Sub Saharan Africa
International Petroleum Exhibition and
Conference (SAIPEC) stands as not only the
largest event in the centre of the region's oil and
gas hub but also the only truly industry-led
event, held in partnership with the country’s
petroleum sector.
SAIPEC is a sell-out event, hosted by the
Petroleum Technology Association of Nigeria.
The event features over 80 industry leaders and
Mr Nicolas Odinuwe, The PETAN Chairman
global experts on an insightful programme
which was held alongside the sold-out
exhibition with over 111 companies showcasing
their products and services and generating
meetings with thousands of invested industry
professionals.
Over 6000 attendees participated in total, from
36 countries, including 20 National Oil
Companies from Mozambique, Nigeria, Côte
d'Ivoire, Senegal, Uganda, Angola, Cameroon,
Ghana, Liberia, Equatorial Guinea and Gambia.
SAIPEC OFFICIAL EVENT PUBLICATION
04
OIL AND GAS REPUBLIC I SPECIAL EDITION
23 - 25 FEBRUARY 2022 I Eko Hotel & Suites delivered by
ENERGY ADVANCE EVENTS
SAIPEC is a Regional Conference Attracting Players
Across the African Continent - ED Ubong
F
ollowing the successful editions of
t h e S u b - S a h a r a n A f r i c a
International Petroleum Exhibition
and Conference (SAIPEC), the President of
Nigerian Gas Association (NGA), and
Managing Director of Shell Nigeria Gas
(SNG), ED Ubong has described the SAIPEC
as the largest regional gathering, attracting
industry stakeholders, government and
players in the entire value chain of the Sub-
Saharan Africa oil and gas industry.
ED Ubong disclosed this while speaking in
an exclusive interview with Oil and Gas
Republic's Managing Editor, Ndubuisi
Micheal Obineme, at the sideline of the
2021 SAIPEC held virtually this year.
For Shell Nigeria Gas, Ubong said that
SAIPEC serves as an opportunity for the
company to share knowledge and
experience, as the SNG is fully committed
to helping Nigeria unlocking its huge gas
reserves.
He added, "Shell Nigeria is the most
reliable gas distribution company in
Nigeria. We have been operating for over
20 years; providing reliable and cleaner
energy to industries in Nigeria.
"Our current operations cut across Agbara-
Ota and Igbesa in Ogun and Lagos state.
We also have operations in Port Harcourt
and Abia state.
"We are looking to complete our
expansion project in Bayelsa while also
looking for opportunities to sort off expand
into Imo, the greater Lekki area and
Anambra state.
"We are playing an active role in that
energy transition. Gas is the cleanest
source of fossil fuel and, then, we are looking at
how industrial and manufacturing companies,
heavy users of energy sources can convert from
diesel and other liquid fuels to gas, which is a
cleaner source of fuel.
"At SNG, we are looking at retro-fitting some of
our current fleet where we will be moving from
PMS powered vehicles to gas powered vehicles
in the short term.
"We are looking forward to, may be having the
first gas retro-fitted vehicles available in the
SNG fleet before the end of the year.
"The vision for Shell Nigeria gas is really tied to
Nigeria's vision. How do we industrialize
Nigeria? Create more industries, create more
jobs, help states to generate internally
generated revenue; that is the role SNG will
play.
"We would enable industries to spring up
wherever there is gas. We would enable those
industries to build viable clusters that can
provide jobs for people, sustaining the Shell
bigger social development initiatives, and also
ensure that Nigeria begins to benefit by closing
its energy deficit."
On the other hand, Ubong noted that the new
council of the Nigerian Gas Association, will
manage the affairs of the association between
2020 and 2022.
He noted, "It is actually the first council for the
Decade of Gas and we are really committed to
lay the right foundation for Nigeria's gas
development”
Speaking on Nigeria's gas potentials, he
stressed that Nigeria sits on top of a huge gas
reserves, and the whole of West Africa is
looking up to Nigeria to unlock these resources
and help sort of provide the energy needs of the
rest of the West Africa region.
“A key requirement will be how we put in place
the right regulatory framework that will allow
upstream to bring the gas to the surface.
"We also have to build the right regional
infrastructure.
"Today, we have the West Africa Gas Pipeline
(WAGP) which runs from Nigeria through Togo,
Benin and all the way to Ghana.
"There is a huge opportunity to continue to see
how that line is fully utilized to help power the
energy needs of other West Africa sub-regions.
"There are always three key areas that of
concern to us. The first one is the regulatory
space where we are sure we have the right
regulatory framework that will assure investors
to invest in the gas sector in Nigeria.
"The second one of course is around
infrastruture; key infrastructures projects are
ongoing.
"The key one being the AKK line between the
East and West, the OBOB line; we are keen to
see the projects completed.
"Of course, the third area when you are dealing
with gas is always around safety. As Nigeria
attempts to grow its gas base we also need to be
sure that we have the right safety framework to
ensure that gas activities are carried out safely.
"For example, a key regulation would be the
'Call Before You Dig', which ensures that gas line
laid-in highly built areas are protected from
indiscriminate tampering and possibly damage
from third party," he concluded.
The Nigerian Gas Association is the largest
stakeholder body in Nigeria responsible for
advocating gas development in Nigeria. NGA
has over 200 members across the various
sectors of the gas value chain in upstream,
midstream and downstream.
06
OIL AND GAS REPUBLIC I SPECIAL EDITION
COUNTRY
REPORT
INTERVIEWS
AND
INDUSTRY
NEWS
ENERGY ADVANCE EVENTS
AECIPA Set to Host 2021 AOTC with Multiple Webinars
F
ollowing the successful edition of
the inaugural Angola Energy
Month December 2020, the
Angolan Oil & Gas Service Companies
Association (AECIPA) has announced the
launch of its Angola Energy Series
programme, which will culminate in the
2nd Angola Oil and Gas Service and
Technology Conference (AOTC) hosted in
Luanda from 23-25 November.
AECIPA established the Angola Energy
Series as a platform for the sharing of
knowledge, information, ideas, solutions
and most importantly, purposeful business
interactions. AOTC 2020 was hosted under
the high patronage of the Ministry of
Mineral Resources and Petroleum, Angola
with in-depth content from over 50
speakers, engaging with an audience of
more than 1,250 from 43 countries across
the globe. In addition, over 300 video
meetings were held between delegates
and more than 5,000 messages exchanged
via the event platform.
Local Content will again form the core of
the 2021 AOTC programme, following the
Presidential Decree 271/20, of October
2020, approving the new legal framework
for the promotion of Local Content in the
Angolan oil and gas industry. Delegates will
hear addresses from Government and
expert speakers from the oil and gas
industry and other private sectors,
surrounding the key issues affecting
Angola in the sector today.
Bráulio de Brito, President, AECIPA
Four free to attend webinars for audiences
across Angola and the international community
will precede the main conference, which will
also set the scene for the local content
programme as well as discussing diversity in the
industry, the empowerment of women and
youth and oil and gas procurement business
opportunities and value chain in Angola.
Mr Bráulio de Brito, President, AECIPA and
Chairman of AOTC explains; “The inaugural
Angola Energy Month was a resounding
success, setting the benchmark for future
collaborations and business development
throughout the service industry. Following this
level of engagement, we have extended the
programme for 2021 to create the Angola Energy
Series – again bringing together the international oil
and gas industry in an insightful and highly
informative programme of virtual and physical
events.”
AECIPA is at the forefront to develop Angola's oil
and gas industry by bringing together local and
international players of the industry to share ideas,
expertise, and experiences for growth
opportunities.
AECIPA have over 150+ members companies that
comprises the Service Sector of the Angola oil and
gas Industry, particularly in debating, mitigating and
strategizing all common issues in a concerted and
measured way.
AECIPA is Angola's oil and gas industry major
contributor when it comes to discussing industry's
matters with the country's stakeholders. The
association is responsible for ensuring stability and
coordination within the industry.
The Angola Oil and Gas Service and Technology
Conference will take place on 23 -25 November
2021 at the InterContinental Hotel, Luanda with
virtual access options also available via the energy
advance network. It is hosted in partnership with
international event organiser GEP.
OGREPUBLIC
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November/December Issue 2019
USA $12, Europe €10, UK £8, Nigeria N1500, South Africa R60
CREATING GLOBAL OPPORTUNITIES
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NIGERIA, CANADA TO RATIFY INVESTMENT
AGREEMENT IN 2020: Nigeria and Canada
Bilateral Trade Worth $984 Million.
I S S N 2 7 0 5 - 2 0 5 2
UK SET TO HOST AFRICA INVESTMENT SUMMIT
IN LONDON BY JANUARY 2020: The idea is to
Showcase the opportuni es that UK can offer.
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countries speakers a endees registra ons
“The Angola Energy Month 2020 addressed
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ENERGY ADVANCE EVENTS
Local Content, Digitalisation, EACOP Project Opportunities Major
Talking Point at 2021 UIOGS, EAOGS
Local Content, Digitalisation, East
Africa Crudeoil Pipeline (EACOP)
project opportunities will be a major
talking point at this year's Uganda
International Oil and Gas Summit (UIOGS),
and East Africa Oil & Gas Summit (EAOGS)
2021.
UIOGS attracts over 400 attendees from
across 125 national and international
companies, the 6th Uganda International Oil
and Gas Summit (UIOGS 2021) will be held as
a virtual event on 28th - 29th September
2021, which stands as the official platform
for the oil and gas business in Uganda and
the must-attend meeting for all stakeholders
in East Africa.
Uganda is now transiting from Exploration to
Development Phase of its oilfields. With
about three projects coming up, the country
expects to develop those of its oilfields
where it has some discoveries. It also
expects to have a 60,000 barrels refinery and
200,000 barrels export crude oil pipeline
from Uganda to Tanzania.
According to the report, Uganda has about
21 oil and gas discoveries, 6 billion barrels of
oil in place, 1.4 billion barrels of recoverable
resources, 500 Bcf of gas, 9 production
licenses, over 14 discoveries to CNOOC, Total
and Tullow, 3 exploration licenses to Armour
Energy and Oranto Petroleum, and 90 per
cent of the Albertine Graben is unlicensed.
The country is certainly experiencing a
transformative time, with a stabilised
government, numerous tax and financial
incentives for investors.
The 6th UIOGS strategic conference
programme has been developed in close
consultation with The Ministry of Energy and
Mineral Development, ensuring its clarity in
addressing the most important issues for Uganda
and all its stakeholders across the value chain
with an interest in the future of oil and gas
exploration and production in the region.
For its sixth edition with the theme "Driving the
Final Steps in Commercialisation and Production',
UIOGS will be brought to you exclusively online
via the energy advance platform, making the
conference even more accessible to hundreds of
companies from all over the world and combining
convenience and knowledge discovery with
virtual exhibiting and one-to-one matchmaking.
"With the EACOP FID now signed, we explore with
those leading major infrastructure and
development operations of the project, the
requirements and next steps in contract
acquisition for cross border operations and the
raft of supporting services throughout the value
chain," says, Global Event Partners, the event
organiser.
For the East Africa Oil & Gas Summit (EAOGS)
2021, the event annually provides a platform for
East African ministries and National Oil
Companies to engage with international and local
investors to examine, discover and debate the
vast opportunities across East Africa's oil and gas
sector.
For its sixth edition, EAOGS will be held as a virtual
event from 17th - 19th November 2021, making
the conference even more accessible to hundreds
of companies from all over the world.
The scope, scale and spread of current and future
oil and gas infrastructure development projects in
East Africa is positioning the region as a hotbed of
oil and gas exploration, investment and
development.
About US$50 billion major oil and gas projects are
underway and planned to support the oil and gas
industries in Kenya, Mozambique, Tanzania and
Uganda and the whole East Africa region
continues to be of great interest to the global
energy community.
The conference programme, which is spread
across two days, is lead directly by major
Government, State companies and global players
in the region and the issues and areas they
highlight of most importance to those operating
in the region.
Throughout EAOGS, an emphasis is placed on the
interaction between all participants of the event
to ensure the best possible access to everyone
who matters to your business. All participants can
take advantage of the exclusive Business
Matching service, allowing you to pre-arrange
virtual meetings with other attendees through an
easy to use technology platform.
Global Event Partners (GEP) has formed a long
term partnership with energy advance - an online
subscription platform designed to keep our
exclusive industry network connected, offering
more value and year-round networking for all of
our delegates.
With access to over 30 world-class energy events
across the globe, year-round chat and video
networking, AI-powered business matching,
exclusive international news, reports, interviews,
webinars, digital round tables, careers and an
energy marketplace, energy advance has been
developed with one thing in mind - to keep you
connected in an ever-changing world.
09
OIL AND GAS REPUBLIC I SPECIAL EDITION
SIXTH EDITION
28-29 September 2021 V I R T U A L E D I T I O N
uiogs.com
Driving the final steps in
commercialisation and production
Two of the most
established platforms
for business in East
Africa’s energy sector
returning this
Autumn
Featuring
a combined
100+
expert industry
speakers
“Gatherings of this kind
are among many ways of
promoting the country’s
potential and showcasing
investment opportunities not
only in the oil and gas sector
but also other sectors.”
Rt. Hon Gen. Moses Ali, 1st
Deputy Prime Minister and
Deputy Leader of Government
Business in Parliament
7
17-19 November 2021 V I R T U A L E D I T I O N
eaogs.com
Positioning East Africa as the real
destination for oil and gas investment
Organised by
Discover the full range of participation options for these
events and the entire Africa advance network today
Dan Grogan
e: dgrogan@energyadvance.org | t: +44 7881 344 662
energyadvance.org
AFRICAN ENERGY STORIES
GECF Unveils Plan to Deepen
Gas Development in Africa
By Ndubuisi Micheal Obineme
AFREC, APPO, and the Africa Energy Chamber
(AEC).
While speaking about the recent developments
in Africa’s gas industry, he highlighted that there
are more than 74 million mt/year of LNG export
capacity to be approved in the Sub Saharan
region by 2030, provided that all the conditions
are met.
Yury Sentyurin, Secretary-General of Gas Exporting Countries Forum (GECF)
The Gas Exporting Countries Forum
(GECF) has unveiled plans to
promote gas development in the
African oil and gas industry to overcome
energy poverty, enhance growth and
mitigate CO2 emissions pollution in the
continent.
His Excellency Yury Sentyurin, Secretary-
General of GECF, made this disclosure
recently in an exclusive interview with our
correspondent, as part of their efforts to
foster stronger cooperation with African
countries.
He explained that Africa dominates the
GECF agenda and there are at least six
African countries represented in the forum
out of its nineteen member countries,
accounting for more than 90% of Africa’s
proven natural gas reserves.
He noted that during his tenure since 2018,
Angola has joined the Forum as a new
member and this confirms that Africa
holds a strong footprint in the global gas
sector.
He continued, “That same year, Africa
gained a new elevation in the world of
energy at the Russia-Africa Summit, held in
October 2019 in Sochi, Russia, and cohosted
by Russian President Vladimir Putin
and Egyptian President Abdel Fattah el-
Sisi, with the attendance of 43 heads of
state or government.
“As the world is progressing to increase energy
access and fulfil the UN Sustainable
Development Goal (SDG) #7, to ensure access
to affordable, reliable, sustainable and modern
energy for all, there is still an estimated 548
million people in sub-Saharan Africa, or 53% of
the population without access to electricity,
according to the United Nations. Further, nearly
789 million Africans currently have no access to
clean cooking.
“This enthusiasm and belief in Africa’s energy
potential are not unfounded or without merit.
Projections from the latest available iteration of
the GECF’s Global Gas Outlook 2050 show that
Africa will witness the highest growth rate of
natural gas among all regions of the world, at
nearly 150% up to 2050.
“Countries such as Senegal and Mauritania in
Africa stand on the precipice of the league of
gas exporters in the short-term, while
Mozambique and Tanzania are expected to
become natural gas exporters in the long-term.
“The GECF’s first Annual Short-Term Gas Market
Report (2020) shows, Africa boasts a number of
promising growth factors, such as in the area of
power generation, in transport through natural
gas vehicles (NGVs), and investments.”
In another development, Yury said that GECF is
working to foster stronger partnerships with
other Africa-based organisations such as
In his words, “Mozambique alone took FID on
3.3 million tonnes per annum (mtpa) in 2017
followed by a further 13 mtpa in 2019. The first
project is expected to be commissioned in 2022,
and the second one will enable LNG flows from
Mozambique to the world by 2024-25.
“Newmarket players are rising with the
discovery of huge gas reserves in Tanzania,
Gabon, Mauritania, Congo, Senegal, and
Cameroon that are likely to support an
ambitious gas master-plan for the domestic
consumption as well as LNG exports.
“I believe our multi-faceted efforts are bearing
fruit and this was evidenced at the last GECF
Ministerial Meeting, held in November 2020.
“The 22nd GECF Ministerial Meeting was
hosted (virtually) by Algeria and welcomed the
participation of ministers and top authorities
from several guest African countries who
delivered their key messages on the energy
sector and gas market in particular, including
from Mozambique, Tanzania, Tunisia, and
Senegal.”
The Gas Exporting Countries Forum (GECF) is an
international governmental organisation that
provides the framework for exchanging
experience and information among Member
Countries. The GECF is a gathering of the world’s
leading gas exporting countries and was set up
as an international governmental organisation
with the objective to increase the level of
coordination and strengthen the collaboration
among Member Countries.
11
OIL AND GAS REPUBLIC I SPECIAL EDITION
Gas Expor ng
Countries Forum
Member Countries
Observers
“GECF Coopera on with African countries to use gas as the core
source of energy... with the aim to overcome energy poverty, enhance
development and to mi gate Co2 emissions,” - Declara on of Malobo at
5th GECF Summit of Heads of State and Government in
Equatorial Guinea (November 2019).
“Inves ng in cleaner energy such as natural gas would increase
na onal GDPs, jobs and create prosperity in Africa” - HE
Yury Sentyurin, Secretary General, GECF at Nigeria Decade of
Gas Conference (March 2021)
“GECF is really a beacon of hope and light.” - HE Nair Bedoulle,
Assistant Director-General for Natural Science, UNESCO
Signing of MoU between UNESCO and GECF (December 2020).
“Thank you for bringing the natural gas agenda to Africa” -
Mr N.J. Ajuk, Execu ve Chairman, African Energy Chamber at
3rd GECF Annual Workshop on Promo on of Natural Gas
Demand (July 2020).
AFRICAN ENERGY STORIES
EACOP to Produce First Oil by 2025 - TotalEnergies
T
o t a l E n e r g i e s , a F r e n c h
multinational energy company, has
announced that the first oil will be
produced from the East African Crude Oil
Pipeline (EACOP) project by the year 2025.
According to Uganda's Daily Monitor, the
oil pipeline works is expected to
commence by September 2021. While
construction is scheduled to kick off in the
second half of 2022.
Evy Maffini
Speaking in an exclusive interview, the
EACOP General Manager, Mr Martin Tiffen
said that a new holding company will take
overall pipeline-related operations from
TotalEnergies E&P, which TotalEnergies has
been managing since 2016.
Tiffen said that everything the EACOP
project needs in order to function will be
managed by the new holding company
b a s ed o n EACOP's Shareholders
Agreement that was signed on April 11th
2021.
He continued, "Our current timetable is to
have the EACOP company fully up and
running by September. Since 2016, It's
been TotalEnergies taking the lead on the
EACOP project, and whilst we continue to
do that, we want the EACOP company
itself, in which all the pipeline shareholders
have a stake. Once EACOP Company is fully
constituted and operational, it will take the
lead on the project.
"The Uganda National Oil Company
(UNOC) holds 15%, Total Holdings
International B.V, 62%, and Tanzania
through its national oil company, TPDC,
holds 15%, while China's CNOOC holds 8%
respectively.
"We are currently fast-tracking land
acquisition both in Tanzania - where the
process is a lot faster as the land belongs to
the government and in Uganda, where the
process was imperilled by the back to back
lockdowns to contain the spread of COVID-
19.
"We are now in what's called the disclosure
process of both the Resettlement Action
Plan and the valuations; we're about 1/3
way through, which should allow us to start
the actual compensation process later this
year."
In April, Uganda, Tanzania, TotalEnergies,
and CNOOC, signed off the key project
development agreements including the
Shareholders Agreement, and Tariff and
Transportation Agreement.
TotalEnergies, CNOOC and Uganda also signed
the Host Government Agreement (HGA), which
provide the basis for the development of the
pipeline. On May 12, Tanzania signed its version
of HGA with the two oil companies.
Speaking further, Mr Tifften, said "These
agreements require some additional work to be
fully implemented, and that's what we're
working on as we speak with both governments
and the other shareholders.
"An example of this is what we call enabling
legislation which is one of the key requirements
for implementation.
"The common objective for the EACOP project
is that we should be ready for first oil export in
Q1 2025".
In a statement made known to Oil and Gas
Republic, Hon. Mary Goretti Kitutu, Uganda’s
Minister for Energy & Mineral Development
said that the EACOP project will create 10,000
jobs as soon the project commences, and
providing job opportunities for the youths and
skilled workers in the country to participate in
s o m e o f t h e capacity d evelopment
programmes that has been put in place by the
government.
“Capacity building is managed by the Petroleum
Authority of Uganda. Ugandans are not left
behind. The local people are very excited, and
they are all preparing to see that they
participate as there are lots of areas in the
industry where they can get involved within the
oil and gas industry in Uganda.
“Also, our University is also training people who
are working in this industry. We shall have a
good percentage of Ugandans trained in the oil
and gas sector by the time the sector booms.
G
Speaking on the local content opportunities, she
highlighted that the EACOP project offers Ugandan
companies several opportunities, noting that the
government is opening up and working closely with
the Ugandan Chamber of Mines and other industry
associations to make sure local companies gets a
fair share to participate on the project.
Total CEO Patrick Pouyanné, Tanzanian president Samia Suluhu and Ugandan president
Yoweri Museveni in Entebbe (Photo: Total in Uganda/Flickr)
According to her, the government has set aside an
additional $20 billion financial instrument which
will be used to support Ugandan companies in areas
of oil and gas projects, and the funds will be made
available to the companies.
The East Africa crude oil pipeline will stretch
approximately 1,443km from the future Kabaale
Industrial Park in the Hoima district of Uganda to
the Chongoleani peninsula near the Tanga Port in
Tanzania. The Ugandan section of the pipeline will
be approximately 296km-long starting near Hoima,
close to Lake Albert, and traversing 10 districts and
25 sub-counties to the Tanzanian border between
Masaka and Bukoba.
The Tanzanian section will comprise approximately
80% of the pipeline’s total route length. It will run
for approximately 1,147km from the Uganda-
Tanzania border and traverse eight regions and 25
districts to terminate at a peninsula north of Tanga
in Tanzania.
EACOP is an integral part of the co-development of
three projects, which are the EACOP project,
together with Tilenga and Kingfisher. Tilenga and
Kingfisher will drill the wells and process the oil to
export quality. While part of the production will be
made available to the refinery project, and the rest
of the daily production will be sent via EACOP to be
sold into world markets.
EACOP is 80 per cent in Tanzania in terms of length,
and 20 per cent in Uganda. The project cost is
estimated at $3.55 billion.
14
OIL AND GAS REPUBLIC I SPECIAL EDITION
AFRICAN ENERGY STORIES
Zimbabwe: President Mnangagwa, African Energy
Chamber Held Talks Over Oil, Gas Opportunities
According to the International Trade
Administration, Zimbabwe’s lithium deposits are
the largest in Africa. With the rapid increase in
global demand given the mineral’s importance to
the energy-battery industry, the country has the
potential to become a major exporter, while
contributing to the global energy transition. To
position itself as a clean energy player, Zimbabwe
requires significant investment in mining, with
additional opportunities available in mining
supplies, transportation infrastructure and
materials. In a bid to attract further investment,
the government has proposed regulatory
changes to the Mines and Minerals Act, making it
more progressive and investor-friendly.
President Mnangagwu, and NJ Ayuk, Executive Director of African Energy Chamber
President Mnangagwa has committed to
developing a robust energy sector in Zimbabwe to
meet the rising power demand brought about by
an increasingly vibrant, productive and resilient
economy and people. With significant potential
across multiple segments of its energy economy,
Zimbabwe hopes to attract both regional and
international investment, utilizing its energy
sector as a catalyst for wider socio-economic
growth.
Th e P re s i d e nt o f Z i m b a b we,
Emmerson Dambudzo Mnangagwa,
held a high level meeting with the
African Energy Chamber's (AEC) leader, NJ
Ayuk, over the first ever Africa's energy
focused event, African Energy Week (AEW)
2021.
In a statement made know to Oil and Gas
Republic, the discussions also focused on the
opportunities in oil, natural gas and other
potential mineral resources for energy
transition.
Zimbabwe is making headway to pioneering
a diversified energy mix and strengthening
the country's energy industry for growth
opportunities.
African Energy Chamber's Executive
Director, NJ Ayuk said: "President ED
Mnangagwa is committed to developing a
roburst energy sector to meet the growing
needs of a potentially vibrant, productive,
and resilience economy and people.
"Zimbabwe has done an amazing job with
COVID-19 vaccination and must be
complimented and encouraged.
"We discussed opportunities in oil and
natural gas, critical minerals for energy
transition, solar and also energy security and
infrastructure.
"Investment is needed into these critical sectors,
and we will make Zimbabwe a priority during
African Energy Week in Cape Town.”
Furthermore, Zimbabwe holds significant
exploration opportunities for stakeholders.
Despite the lack of proven oil and natural gas
reserves – and the continued dependence on
crude imports to supply the nation – Zimbabwe is
redirecting its focus on exploration, specifically of
natural gas.
Having experienced critical electricity shortages
for decades, Zimbabwe is seeking alternative
power generation solutions, in which natural gas
may be a viable alternative. The Southern African
nation is pursuing partnerships and investment
deals with international stakeholders, focusing on
accelerating exploration and driving energy
sector diversification and growth.
The report shows that Zimbabwe’s coal reserves
have the potential to address energy supply
challenges and meet demand across the region.
Currently, the country’s largest thermal power
station, Hwange Thermal Power Plant, has a
capacity of 750MW, supplying critical electricity
to the population. However, with ageing power
plants requiring upgrades and the country opting
to reduce its reliance on coal, alternative power
generation solutions are being considered and
significant investment opportunities have
emerged.
Ayuk’s visit initiated a dialogue on one of the
country’s most promising sectors: renewable
energy. Zimbabwe is home to impressive
hydropower potential – estimated at 18,500 GWh
per year, of which 17,500 GWh is technically
feasible – and aims to drive further investment
and associated development to establish
domestic energy security and independence.
To date, only 19% of the country’s hydropower
potential has been exploited, with most of
Zimbabwe’s electricity supply produced at the
750MW Kariba Dam Hydroelectric Power Station.
AEW 2021 aims to further this agenda, placing
Zimbabwe as a top priority and showcasing all
that the country has to offer.
African Energy Week is the African Energy
Chamber's first ever interactive exhibition and
networking event that seeks to unite African
energy stakeholders, drive industry growth and
development in the entire value chain of Africa's
energy sector.
The event will hold on 9th - 12 November 2021 at
The V&A Waterfront in Capetown, South Africa.
15
OIL AND GAS REPUBLIC I SPECIAL EDITION
AFRICAN ENERGY STORIES
H.E. Gabriel Obiang Lima, Equatorial Guinea Minister of Mines and Hydrocarbons (MMH)
Equatorial Guinea Issues a Mandate for Oil and Gas
Worker Vaccinations
In a bid to ensure the protection of
oil and gas industry workers, as well
as increase operations and
production across the sector, the
Government of Equatorial Guinea is
driving an effective vaccination rollout for
all hydrocarbon workers in Equatorial
Guinea.
Equatorial Guinea is leading the way in
maintaining prevention measures and
ensuring operational safety within the oil
and gas sector with the Minister of Mines
and Hydrocarbons (MMH), H.E. Gabriel
Mbaga Obiang Lima, issuing a mandate
during a virtual meeting this month for all
oil and gas workers to be vaccinated
against the coronavirus. The mandate has
been enforced in order to drive the
country’s vaccination rollout program,
ensuring increased operations and
production across the hydrocarbons sector
while safeguarding workers against the
virus.
H.E. Gabriel Obiang Lima remains
committed to expanding the country’s oil
and gas sector while at the same time
mitigating the spread of the virus. By
requiring all oil and gas workers, including
both national and expatriate employees to
be vaccinated, the MMH is paving the way
for other industries to put the safety of
their workers first.
“It is forbidden for unvaccinated
individuals to work on onshore or offshore
facilities. They are public servants and
must be protected,” stated H.E. Gabriel
Obiang Lima in the virtual meeting.
Despite experiencing relatively low COVID-19
cases compared to other African countries,
Equatorial Guinea’s oil and gas sector suffered
significant impacts from the pandemic
throughout 2020 and into 2021.
With Equatorial Guinea prioritizing its
vaccination rollout program – the country has
received a shipment of 500,000 Sinopharm
vaccines from China at the end of June 2021
with more expected to follow – the oil and gas
sector is driving progress.
Additionally, in the virtual meeting, the MMH
and the Ministry of Health and Social Welfare
have requested an increase in the number of
weekly flights to Equatorial Guinea, specifically
for the oil and gas sector.
Requested through the Political Committee of
Surveillance Against COVID-19, the MMH is
focused on boosting oil and gas productivity
while maintaining the safety of employees. By
working with the Committee, and driving their
own vaccination rollout program, the MMH is
making significant progress in positioning the
country as an African vaccination leader.
“Equatorial Guinea has taken the right steps in
driving oil and gas productivity by ensuring that
the oil and gas sector is both a safe and
productive working environment for all oil and
gas employees. Africa’s oil and gas sector can
lead the way in the continent’s vaccination
rollout and we are thankful to the government’s
covid committee and other Ministries within
Equatorial Guinea,” concluded H.E. Gabriel
Obiang Lima.
The Republic of Equatorial Guinea is located in
Central Africa. The country consists of an insular
region, made up of several islands, and a
mainland region named after the Río Muni. The
mainland region is bordered by Cameroon to
the north, and Gabon to the south and east. On
the west, the Río Muni region overlooks the
Gulf of Guinea. Equatorial Guinea covers an
area of around 28,000 square kilometres and is
inhibited by approximately 1.360 million
residents.
The capital city is Malabo, which has a
population of 297,000 persons, while the seat
of government is in Oyala. The country’s
currency is the CFA franc, a currency used by
five other countries in Africa, including OPEC
Member Country Gabon. The official language
of Equatorial Guinea is Spanish. French and
Portuguese are widely used, too.
While the African nation is a producer and net
exporter of crude oil, it is also a key producer
and exporter of natural gas. In former times,
Equatorial Guinea exported coffee, timber and
cocoa.
Equatorial Guinea expects foreign direct
investment in 2021 could reach $1.11 billion,
according to the energy ministry, while
production is expected to increase.
16
OIL AND GAS REPUBLIC I SPECIAL EDITION
AFRICAN ENERGY STORIES
Africa Need to Diversify its Economy, Invest in R&D - Wabote
By Ndubuisi Micheal Obineme
The Executive Secretary of Nigerian
Content Development and Monitoring
Board (NCDMB), Engr. Simbi Wabote,
has said that the global paradigm shift from
fossil fuels to renewables is a wakeup call for
African countries to diversify its economies and
investment in research and development.
This statement comes in-line following the
successful edition of the 5th Sub-Saharan Africa
Internatioal Petroleum Exhibition and
Conference (SAIPEC), hosted by the Petroleum
Technology Association of Nigeria (PETAN).
In his speech, Wabote urged the African oil and
gas producing countries to reposition their
economies from a single income source towards
multiple sources of revenue generation, which
will require some delibrate actions from the
public and private sector.
According to him, "In the early days, firewood
was the source of energy and every body
decided to burn firewood in order to use it as an
energy source. And when African countries
realise that it was the source of energy, we
decided to start burning our woods.
Engr. Simbi Wabote, Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB)
"By the time we got into it, they discovered coal.
They came back to Africa and said, burning of
woods is dangerous that the best form of energy
is coal.
"Of course, we have to abandon firewood as we
also discovered coal in Nigeria. We were
planning to invest towards the utilization of
coal.
"But, all of a sudden, the developed world said it
is no longer coal but hydrocarbon is the best
form of energy.
"Now, African countries such as Nigeria
abandoned all the coal opportunities that we
have and we moved into fossil fuels.
"But, in China today, one of their major source
of power is still coal. China has been able to
utilise coal to generate electricity.
"China was able to invest in Research and
Development (R&D) to produce technological
innovations and resources to ensure they use
coal as part of their energy mix.
"In a country like Nigeria, we aren't using coal
despite the abundance of coal in the country.
Now, we are beginning to grabble with the
opportunities in fossil fuels. This aggression is
that fossil fuel is no longer acceptable, but it is
now renewables.”
He added, "African countries that has just
discovered oil and gas should move beyond
exploration but invest in Research &
Development and technology such that they
can be able to utilise this natural resources.
“If African countries do not diversify their
economy and invest in R&D, we will not have
the funds and technology to develop fossil
fuels.
"They will abandon this resources and depend
on the developed economies to survive. This is
the Train that is coming to Africa.
"The Train has started moving. If care isn't
taking most African countries that are just
discovering this resources will not even tap into
it before the world leave them behind."
Speaking on the Nigerian oil and gas industry,
Wabote said that the Federal Government has
decided that it will utilise its hydrocarbon
resources to diversify the economy. This should
be a push for African countries that are just
discovering oil and gas.
He further explained that the NCDMB has
developed a Nigerian Content Plan to move
beyond oil and gas activities such as drilling,
construction and processing facilities.
He noted that the Nigerian Content Plan
ensures that the various part of the oil and gas
project are linked to the procurement of locally
manufactured goods and services.
“The Nigerian Content Plan outlines the
requirement in equipment, consumables,
fabrication, personnel, marine vessels, research
and development, banking, insurance, and legal
services in order to link the entire value chain
into the oil and gas activities. It has worked very
well for us.
"The opportunities in the oil and gas industry
can be linked to several sector of the economy
and indirectly to other areas such as
Agriculture, Aviation, Medical Services,
Telecommunication among others.
"The Nigerian Content Plan captures this
activities and other industry opportunities
rather than focusing on the drilling. There are
other ancilliary activities that support such
activities as well.
"There are Seventy services, and Two Hundred
& Seventy Eight opportunities contained in the
Nigerian Content Act which are also used to
drive patronage of goods and services as well as
guide investors on areas of opportunities.
"I think this is what African countries need to
focus on so they will be specific in the services
they can provide as well as link those services to
other opportunities.
"In Nigeria, we have a very robust tool you can
use if you want to start a local content journey in
the Nigerian oil and gas industry.
"If you use the Nigerian Content Plan efficiently,
you will attain the desired success.
"Local content is moving beyond the oil and gas
industry to become a national agenda. It is no
longer use to be a CSR project to appease some
agrieved community," he concluded.
17
OIL AND GAS REPUBLIC I SPECIAL EDITION
AFRICAN ENERGY
Ethiopia Diversifying its Energy Sector Towards Hydropower,
Renewables, Wind Energy
E
thiopia has developed a national
strategy programme that guides the
diversification of the country's overall action
plans towards the utilisation of its energy
resources.
The Special Advisor to Ethiopia’s Minister of
Water Irrigation and Energy, Hizkyas Dufera,
disclosed this at the virtual Energy Advance -
Africa Energy Series with the theme,
"Financing the Energy Transition Across Sub-
Saharan Africa".
Dufera said that based on Ethiopia's geographic
location of its infrastructure, it
estimates that about 65% of the country's
population will be connected to the grid,
while 35% will be using renewable energy
and offgrid solutions.
According to him, Ethiopia has about 45%
electrification rate, noting that 50% of its
population need to be connected to
electricity.
On the grid side, he said, it is divided into
three areas which are; Generation,
Transmission and Distribution.
"For Generation, we have policies in place.
We plan to develop all future generation
power plants and investing in the private
sector.
"Our overall strategy in Ethiopia is to
electrify 95% of our population with Hydropower
and diversify our energy mix towards
climate change.
"Our water levels reduced due to climate
change. We are diversifying to other energy
sources. Our strategies is to develop
Geothermal, Wind, and Solar Energy," he
said.
On the transmission side, he explained that it is
mostly for the public sector to develop.
"We are looking at Public Private Partnership
(PPP) modality in form of Independent Power
Transmission (IPT) systems.
"Our Distribution sector has recently opened up
for local private and international investors.
"We have established the enabling environment
to attract investments.
"About 8.2 million households will be connected
to the grid which means that people who leave
two and half kilometres from our infrastructure
scheme will be connected with our grid
extensions.
"We have started offgrid initiatives which are
divided in three main areas. The first one is minigrids,
solar home systems, institutional solar
solutions for schools, health sector, and public
institutions.
"On the minigrid side, we have a strategy into
three modalities. One of them is the public sector
implementation which we have innagurated up
to 12 projects and they are operational. About 25
projects are under design and will be
commissioned by the end of this year.
"We have secured $400 million funding from the
World Bank which will enable us scale up our mini
and offgrid sector.
"Our second modality for mini-grids is the Public
Private Partnership (PPP) where we leverage the
opportunties in the private and public sector. For
example, our public utility is very good in building
distribution systems at very low cost.
"We want to build partnership where there will be
a willing tariff arrangement with the private
sector to use the distribution system. The private
sector will develop the generation.
"We want to secure and reserve the highly
productive use areas for the private sector and
the rest for the public sector because we want to
reduce subsidy to make sure that the financing
that we receive is properly managed to achieve
our objectives.
"For solar home systems, we have a strategy to
deploy solar home sytems effectively. One of the
things we are adopting is the pay-as-you-go
systems to reduce the cost.
"Our energy sector value chain is too long which
presents opportunities for manufacturers,
distributors, importers, micro finance
institutions.
"We will be deploying solar home systems where
people will be connected at a reduced cost in
certain communities.
"We are also working with corporatives with very
strong operational financial strengths.
"For institutions, we will be deploying utilities to
procure EPC contracts.
"For e-mobility, we spend more than $3 billion per
year to import fuel in Ethiopia. But we can
leverage a low cost electricity through renewable
energy based infrastructure.
"We are spending more than 90 percent on
energy for cooking which is based on burning
wood that can be transited to electric cooking. It
will go a longway in saving the environment and
increasing revenue for the private sector," he
added.
18
OIL AND GAS REPUBLIC I SPECIAL EDITION
AFRICAN ENERGY STORIES
Nigeria, Senegal Held Bilateral Talks on Collaboration
The Nigerian Minister of State for
Petroleum Resources H.E. Timipre
Sylva, held a high level meeting with
the entourage of the Senegalese Ministry of
Petroleum and Energy led by the Country’s
Minister, Ms Aissatou Sophie Gladima, in his
Office at the NNPC Towers in Abuja.
Both parties discussed key areas for
collaboration and deepening local content
development in the oil and gas industry,
which Nigeria leads the way in Africa.
Nigeria's Minister of State for Petroleum
Resources, Timipre Sylva, commented:
"African countries must take full
Responsibility for the continent ’s
development by deepening local content
participation in oil and gas.
"Africa must forge a better synergy and
leverage on the experience of Nigeria which
has been in the business of oil and gas for
the past 60 years.
"There is need for African countries to chart
a new course, as the global community was
moving towards renewable energy.
Nigerian Minister of State for Petroleum Resources H.E. Timipre Sylva and Ms Aissatou Sophie
Gladima, Senegalese Ministry of Petroleum and Energy
Nigeria to Seek New Reference
Volume From OPEC - Sylva
"African countries need to have financial
institutions to fund development of the oil
and gas sector".
He assured the Senegalese Minister of
Petroleum and Energy of the willingness of
Nigeria to guide them from pitfalls in the
industry especially in the area of Local
Content which he described as significant
for any country blessed with oil and gas.
In her response, the Senegalese Minister of
Petroleum and Energy, Ms Aissatou Sophie
Gladima thanked H.E. Timipre Sylva for the
gesture to host as well as to lead the
pathway for Senegalese to get it right in Oil
and Gas especially in four areas including
security, National Oil Company, Local
Content and National Oil and Gas Strategy.
She affirmed that there was the need to
deepen conversation through bilateral
agreements between the two countries
especially around oil and gas sector.
"I believe that Nigeria is in a good position
to share experience on Petroleum resources
with other African countries so that they can
avoid our mistakes".
The Minister of State for
Petroleum Resources, H.E
Timipre Sylva, has said that
Nigeria will seek new reference
volume, from the organization of the
Petroleum Exporting Countries, OPEC,
in view of the economic impact of low
productions.
Sylva stated this when he received,
OPEC, Secretary General, H.E.
Muhammad Sanusi Bakindo in his
office, at the NNPC Towers, in Abuja
recently.
Silva while commending OPEC
S e c reta r y - G e n e ra l , w h o m h e
described as worthy ambassador of
the country, submitted that Nigeria
needed his support to actualize the new
reference volume on the basis of
economic reality.
Responding to his speech, OPEC's
Secretary General, Muhammad Sanusi
Bakindo acknowledged the success
recorded by the Honourable Minister of
State for Petroleum Resources and urged
him to keep the flag flying.
He added that the Minister of State for
Petroleum Resources is on course with
initiatives such as the declaration of the
decade of gas among others.
19
OIL AND GAS REPUBLIC I SPECIAL EDITION
AFRICAN ENERGY STORIES
African Development Bank Develops New Financial
Instrument for Local Currency Loan
African Development Bank (AFDB),
Africa's premium financial
institution, has developed a new
financial instrument for local currency loan
to bridge the gap on high value exchange
rate and return of investment (ROI) to
boost investment on infrastructural
development in Africa's major industries.
Wale Shonibare, AFDB's Director for
Energy Financial Solutions, Policy &
Regulation, disclosed this in his keynote
speech at the Energy Advance Africa
Energy Series virtual event held on 16th -
18th June 2021.
Shonibare noted that African government
are reaching their sustainability limit as
they no longer have the capacities to
provide guarantees.
To bridge the gap, AFDB is investing a lot to
building regional connections with an
investment portfolio of $20 billion in the
energy sector.
He added, "In certain countries where they
have high currency volatility, if you take a
hard currency loan over 15-20 years. Every
five years the size of your loan will
effectively double because of currency deevaluation.
"We have developed new financial
instrument such as the Nigerian
Infrastructure Debt Fund. For the first
time, you can borrow up to 15 years in
local currency in Naira which hasn't
happened before to support investment
on infrastructural development.
"We are also investing on capacity building
for the power pools to equip them so that
they can be able to do regional trade.
"By the end of 2022, all the countries in the
West African Power pool will be linked by
the regional connections.
"We are also putting in place systems and
regulations to allow power trade across
the African countries.
"The South Africa power pool is the most
developed but we are working with the
East Africa and Central African power pool
as well. It is important to have regional
regulations."
Speaking on the energy transition in Africa,
Wale Shonibare, AFDB's Director for Energy
Financial Solutions, Policy & Regulation
he highlighted that Africa basically have three
sources of energy which are fossil fuel,
renewables and nuclear energy.
"Africa's energy transition is going to be slightly
different from the other part of the world
because in Africa, land use, agriculture and
forestry actually constitute about 57% of the
emission. While energy is only 35%.
“Also, There had been significant discoveries of
gas in Africa. Between 2011 and 2018, about
40% of the world's new discoveries for gas were
in six African countries.
By Ndubuisi Micheal Obineme
“Gas will play a very critical role in Africa's
energy transition because a lot of African
countries have very weak grids and as a result of
that, it will be very difficult to put renewables in
those grids. It needs gas as a transition fuel to
anchor the renewables.
"Gas is so good because it is flexible and you can
ramp it up and down even when the wind isn't
blowing and when the sun isn't shining.
"We need to use Africa's endownment on gas.
Gas represent that bridge and may become the
destination fuel.
"We now have examples where gas plants are
been retrofited to use hydrogen. You can have a
combination of hydrogen, green hydrogen, and
gas.
"Africa's transition may involve more emissions
before it start to ramp down. Africa will pick up
later than the developed countries.
'We need to look at new technologies that
hasn't been invented and allow the private
sector to innovate," he concluded.
20
OIL AND GAS REPUBLIC I SPECIAL EDITION
SPECIAL FEATURES
Osinbajo Calls on ECOWAS Community to Develop More Trade
Initiatives, Explore Intra-African Trade Opportunities Under AFCFTA
Nigeria's Vice President, Prof. Yemi
Osinbajo, has called on the
ECOWAS community to develop
more trade initiatives and explore the
Intra-African trade opportunities under
the African Continental Free Trade Area
(AFCFTA).
The Vice President made this statement at
the inaugural gala night of the Economic
Community of West African States
(ECOWAS) Trade Promotion Organizations
(TPO) Network.
He added that the AFCFTA presents an
opportunity for the ECOWAS community
to drive more trade initiatives and expand
intra-regional trade in the ECOWAS subregion.
According to the Vice President, the TPO
Network, which was established with the
support of the International Trade Centre
(ITC), “is a farsighted and insightful
initiative of the ECOWAS, trade promotion
organizations in the ECOWAS community.
He stressed that the Network must present
a trustworthy platform for cross learning
and the sharing of knowledge and
information assets.
“The vision of our Heads of State and
Governments in resolving to establish this
network (TPO) is to build a more robust
and broader economic space for trade and
investment.
“A major part of that effort is that the
network serves as a platform for
businesses and trade promotion agencies
in our sub-region to share knowledge and
business opportunities, and develop trade
capacity in our sub-region.”
Yemi Osinbajo, Vice President of the Federal Republic of Nigeria
of trade prosperity for the people of the West
Africa region and, indeed, the continent,” he
added.
Commending the ECOWAS and the TPO
network for the success of the launch and its
First Annual General Assembly, the Vice
President noted that “there is the imminent
task of enabling our region benefit maximally
from the AfCFTA and other intra and extra
regional export opportunities.”
The President of ECOWAS TPO Network is the
Executive Director/CEO, Nigerian Export
Promotion Council (NEPC), Mr. Segun Awolowo;
and the Vice President is the CEO of Cote
By Tobi Owoyimika
d’Ivoire Export Promotion Organisation, Mr. Guy
M'Bengue.
Dignitaries present at the event include the wife of
the Vice President, Mrs. Dolapo Osinbajo; Ministers
of Foreign Affairs, Geoffrey Onyeama; Industry,
Trade and Investment; Otunba Niyi Adebayo; his
colleague Minister of State, Ambassador Mariam
Katagum; Executive Director/CEO, NEPC, Segun
Awolowo; the CEO of Cote d’Ivoire Export
Promotion Organisation, Mr. Guy M'Bengue; the
Vice President, ECOWAS Commission, Finda
Koroma; among other senior government officials
and development partners.
PHOTO STORY: OPEC Sec-Gen Meets President Buhari
According to the ECOWAS, the TPO
Network is a public-sector led entity and
will work in partnership with the ECOWAS
commission to drive inclusive trade
development initiatives within West Africa
and beyond.
Prof. Osinbajo further said the Network
has world class human resource capacity
to succeed in achieving its set objectives.
“The combined experience of the TPOs
that form the network is mind boggling.
Second is our confidence in your resilience
and commitment, which assures us that
beyond the tunnel of those obvious
challenges lies the bright light of a new era
OPEC Secretary General, Sanusi Barkindo and President Muhammadu Buhari
22 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
SPECIAL FEATURES
EFCC, NEITI Sign MOU to Check Corruption in Extractive Industry
T
he Executive Chairman, Economic
and Financial Crimes Commission,
EFCC, Abdulrasheed Bawa has reiterated the
Commission’s resolve to sanitize and deal
with fraud-related issues in the extractive
industries.
The EFCC boss stated this during the signing
of a Memorandum of Understanding, MoU,
between the EFCC and the Nigeria Extractive
Industries Transparency Initiative, NEITI led
by its Executive Secretary, Dr. Orji Ogbonnaya
Orji at the Commission’s Headquarters, Jabi,
Abuja.
The EFCC boss promised to use the
Commission’s Extractive Industry Fraud
Section to deal with issues relating to the
extractive industries, and to sanitize the
sector. “I want to assure you that all the
issues that your report will raise and all the
issues that we are also seeing on our own
relating to extractive industries, in oil and gas
as well as in solid mineral, we will deal head
on with them.”
He promised to work with NEITI in meeting
the expectation of both parties for the
b etterment o f t h e country. “ T h e
Memorandum of Understanding is very clear
regarding your expectation and our
expectation and I want to assure you in
addition to other issues of training and all of
that, we will do our best and ensure that the
industry is sanitized for the betterment of
this country.
“The EFCC so much believe that if we can
block the leakages, this country will not need
to borrow a single cent from any other
country to come and finance our budget and
that is why we are interested in this MoU and
that is why we are keen to see that the
extractive industries are sanitized for the
betterment of this country.”
In his remarks, the Executive Secretary of
NEITI, Dr. Orji Ogbonnaya Orji noted that
with the MoU, NEITI, which has no
enforcement powers, will be able to leverage
on the powers of the EFCC, to “bark and bite”.
“We are here because the EFCC and NEITI are
in this together, to rescue our country from
indiscipline, malfeasance, mismanagement
of public resources; to work together with
the EFCC to seek avenues to channel our
peoples mind to living legitimate lives and
adding content and public value to whatever
assignment they have been given for the
benefit of our citizens,” he said.
The NEITI boss also promised to work with
the EFCC to strengthen their position and
In an effort to avert petroleum explosion
in filling stations, Department of
Petroleum Resource in collaboration
with a Zaria based non-Governmental
organisation, Raudha Technology have trained
petroleum pump attendants on Minimum
Industrial Safety Training for Downstream
Operations (MISTDO).
Flagging off training which lasted 2 days held
Zaria Institute of Information and Educational
Technology Zaria, Kaduna state Controller,
Department of Petroleum Resource, Engineer
Suleiman Yusuf charged downstream operators
to prevent frequent fire outbreak in filling
stations by financing their workers for the
training.
The controller represented by a Senior
Chemical Researcher in the Department,
Engineer Aliyu Shehu lamentered that a lot of
lives and property were being lost to petroleum
explosion at filling stations in the country.
Engineer Yusuf noted that it was mandatory for
all the Down Stream operators to undergo the
training. He said his department would go
rounds petroleum stations assess the Down
Chief Timipre Sylva
Execu ve Chairman, EFCC, Abdulrasheed Bawa and Dr. Orji Ogbonnaya Orji, NEITI's
Execu ve Secretary signing the MOU
rescue the extractive industries resources.
“We are very grateful that you have offered us
the support and we will relate with mutual
respect as two sister agencies and timely
exchange of information and data will be very
useful in this relationship.
“As an agency we believe in the work the EFCC is
doing and we are very proud of the courage and
excellence that this institution has exhibited in the
face of all kinds of challenges, and we will continue
to encourage men and women of goodwill, fellow
Nigerians that are working here that you are on the
right track and you have an ally in NEITI.”
DPR, NGO Train Downstream On MISTDO
Stream operators especially the pump
attendants.
“We will go round petrol station to assess the
workers if we find out they did not acquire
knowledge through MISTDO we new renew the
licensee of that Petro station or revoke it”. The
controller warned.
Engineer Yusuf called on the marketers to take
advantage of the policy to secure their property
and other’s as well as lives of citizens.
In his presentation on safety and impact to
Downstream Sector Engineer Jamilu Doguwa
said that the objective of the Policy was to
increase awareness in safety and risk associated
with operations in the Downstream, improve
knowledge and General competence level in
the Downstream among other benefits.
Also in his remarks the chairman Raudha
Technology called on the participants to make
use of training secure their lives, property of
their employers and lives other citizens by
applying the knowledge the received in the
discharge of their legitimate duties.
23 26 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
SPECIAL FEATURES
GECF Sec-Gen participates in Inauguration Ceremony of
HE Ebrahim Raisi, the new Iranian President
H
E Yury Sentyurin, the Gas Exporting
Countries Forum (GECF) Secretary
General participated in the
inauguration ceremony of HE Seyed
Ebrahim Raisi, the President of Islamic
Republic Iran and held high-level bilateral
meetings during his mission to Tehran,
Islamic Republic of Iran.
The invitation to the swearing-in ceremony
extended to the Forum’s Secretary General
added a new dimension to the historic ties
between the coalition, comprising of 18
countries today, and one of its founding
Member Countries, Iran.
“Diplomacy must strengthen the bonds
among nations of the region and
strengthen their common grounds in the
fields of economy, culture, science and
technology. The world is changing and the
interests o f n ations d epend o n
understanding the new world and strategic
interaction with emerging powers, and a
successful foreign policy will be a balanced
foreign policy,” HE Ayatollah Raisi asserted
in his statement.
The new President takes office at a time
when Iran is moving toward a resuscitation
of the economy using domestic capacities
as a solution for existing problems. Using
domestic capacities was one of the pieces
of advice given by HE Grand Ayatollah
Sayyed Ali Khamenei, the Supreme Leader
of the Islamic Republic of Iran to the
incoming President Raisi during the
Inauguration Ceremony.
“There are myriad capacities in the
country. We have extraordinary capacities
in the area of water, oil, mining, extensive
domestic markets, relations with neighbors,
and the astonishing talents and enthusiasm of
our youth. Undoubtedly, these our capacities
can overcome the problems provided that they
are identified correctly, worked on and utilised
efficiently. This requires round-the-clock and
untiring diligence,” HE Ayatollah Khamenei.
“We use all the tools of national power,
including diplomacy and intelligent interaction
with the world, to ensure the national interests
of the Islamic Republic of Iran,” HE President
Raisi underlined his willingness to work with
foreign countries and boost Iran’s relations with
the world.
Iran, which boasts one of the largest proven
natural gas reserves in the world, enjoys a
prominent position in the energy world and
stood at the very foundation of OPEC and the
International Energy Forum (IEF) and the GECF.
At the GECF, echoing the success of the 3rd
GECF Summit held in Tehran in 2015,
throughout 2014-2018 the Islamic Republic
played the stewardship role in our association
with a national representative serving as the
GECF Secretary General. Furthermore,
operating at all levels of the Secretariat staff
ranking – from leadership to junior positions –
Iranians form the largest national group at the
GECF’s headquarters in Doha, Qatar,
symbolising the positive contribution of Iran in
the GECF community.
“The seeds of the GECF were planted in Iran in
2001. Since then, the Founder Member Country
has contributed substantially to the
advancement and worldwide influence of the
Forum,” wrote HE Sentyurin in his Goodwill
Letter, addressed to the new President and
delivered at the swearing-in ceremony.
“I attach sincere hope that the GECF will
continue to receive steadfast support from Iran
with the hallmark Iranian poise, diligence, and
wisdom that have always served as a source of
inspiration for us,” the Secretary General
added.
The ceremony was attended by a number of
world leaders, top-ranking dignitaries, senior
officials, as well as heads of international
organisations.
On the sidleines of the swearing-in ceremony
the GECF Secretary General held a working
meeting with his counterpart HE Mohammad
Sanusi Barkindo, OPEC Secretary General, who
was invited to participate in the proceedings.
The heads of the energy associations revised
the ongoing cooperation and matters of mutual
concern.
24
OIL AND GAS REPUBLIC I SPECIAL EDITION
OIL MARKET REPORT
World Oil Demand to Increase in 2022; US, China and
India Takes the Lead - OPEC
The global oil demand to increase in
2022 to reach a level similar to before
the pandemic, which the United
States, China and India will lead the growth
in terms of oil demand, according to
Organiszation of Petroleum Exporting
Countries (OPEC) oil market report.
The Secretary General of OPEC, Barkindo
Sanusi noted that the global oil demand next
year would increase up to 3.4% which is
approxiately 99.86 million barrels per day
(bpd), and would even increase to over 100
million bpd in the second half of 2022.
According to him, this increase would be
coming from the improved containment of
COVID-19, particularly in emerging and
developing countries, which are forecast to
increase oil demand to reach pre-pandemic
levels in 2022.
He added, "OPEC forecast oil demand in
China and India would exceed pre-pandemic
levels next year. The United States would
make the biggest contribution to 2022
demand growth, although U.S. oil use would
stay just below 2019 levels.
"World economic growth was expected to
slow to 4.1% next year from 5.5% in 2021, still
supported by government stimulus and with the
outlook “depending primarily on COVID-19-
related developments.
“Oil was trading below $74 a barrel after the OPEC
report was released. The price has climbed more
than 40% this year with the help of supply cuts by
OPEC and its allies, a group known as OPEC+."
Barkindo said that OPEC is optimistic that
demand will recover robustly from the pandemic,
allowing the group and its allies to further ease
record supply curbs made in 2020.
The report showed higher output from OPEC and
forecast more supplies from rivals in 2022,
including U.S. shale producers.
The report also forecast a wider supply deficit in
the fourth quarter of 2021, assuming OPEC+ does
not agree a further increase and based on Iran,
Libya and Venezuela, which are exempt from
OPEC+ cuts, sticking to their June production
levels.
The OPEC report forecast a 2.1 million bpd rise in
supply from OPEC’s rivals in 2022 as higher prices
spur investment. OPEC sees output of U.S. shale
oil, another term for shale, rising by 500,000 bpd
in 2022, after a contraction this year.
The extra barrels will limit growth in demand for
OPEC crude next year but OPEC still sees the
world needing 28.7 million bpd from its
members, up 1.1 million bpd from 2021 and, in
theory, allowing higher OPEC production.
OPEC has pumped 26.72 million barrels per day
(bpd), according to report. Output has risen every
month since June 2020 apart from February.
OPEC and allies, known as OPEC+, have been
unwinding record output cuts agreed in April
2020, as demand and the world economies
recovers.
“More forecasts are still predicting robust growth
in demand in the second half of the year,” said
Carsten Fritsch of Commerzbank. “It is easy to
believe that the oil market has learnt to live with
the virus.”
The oil market report reflects OPEC’s confidence
that demand will recover robustly from the
pandemic, allowing the group and its allies to
further ease record supply curbs made in 2020.
25
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA OIL AND GAS
Nigeria will Utilise its Abundant Gas Resources and
it’s Derivatives, says Sylva, MSPR
to the use of low carbon energy solutions, is an
assumption that all national economies are
driven by the same parameters and does not
take into account the different socioeconomic,
political and developmental
peculiarities of individual nations.
He stated categorically that Nigeria’s
approach towards the climate-change-netzero-emission
debate is to optimize the use of
its abundant gas resource domestically as a
transition fuel option towards meeting
nationally determined contributions on
climate change. As a government, the country
is determined to encourage more penetration
of natural gas and its derivatives for domestic
utilization, power generation, gas-based
industries and propulsion in all aspects of the
national economy. This would in a
fundamental manner address the great
challenge posed by volatile oil market, the
environmental issues and public health
concerns.
Chief Timpre Silva, Nigeria’s Minister of State for Petroleum Resources
Th e N i g e r i a n F e d e r a l
Government is determined to
utilise its abundant gas
resources and its derivatives for
domestic utilization, power generation,
gas-based industries and all aspects of
the economy.
Speaking at the 2021 SPE NAICE, with
the theme: “the Future of Energy – A
Trilogy of Determinants: Climate
Change, Public Health and the Global
Oil Market”, The Minister of State for
Petroleum Resources, Chief Timiprye
Sylva, said that the petroleum industry
i n 2 0 2 0 w a s c h a l l e n g e d b y
unprecedented crisis as a result of the
COVID-19 pandemic.
He continued, “It is also true that the
c r i s i s h e r a l d e d u n p re d i c t a b l e
challenges, uncertainties and low crude
oil price that led to global economic
shutdown; thanks to the timely
development of vaccines, we are now on the
pathway to recovery.”
“The questions facing us then become:
Should we wait for another unwanted crisis
before we act on securing sustainable
energy for the future? Can we deliberately
influence public health, climate change and
ultimately global oil markets? That is why
the trilogy of determinants which form the
crux of this year’s theme is key” he said.
The Minister pointed out that the scenario
being projected by some energy experts is
that energy transition to low carbon energy
sources would make the world a better
living place with a cleaner climate. The
government of Nigeria aligns with this
thought.
However, that this process of change has to
happen by way of a simultaneous global
effort of transitioning national economies
Regarding the global oil market in the
foreseeable years, it is becoming obvious that
a global migration from a fossil fuel-based
economy to renewable would engender a
corresponding decline in hydrocarbon
including possible divestiture in the sector as
deliberate frameworks are being championed
to discourage extraction of carbon-laden
resources. The COVID-19 Pandemic has
further exacerbated the investment decline.
Sylva posited that the government of Nigeria
in collaboration with global partners is
exploring policies, technologies and
investments to address the current global
challenge that will support migration from its
reliance on carbon dependent fuels to
meeting its commitment to the Paris
Agreement.
He encouraged SPE to be in forefront of quest
to achieve desired balance of clean
environment, safe public health and a
renewed global oil market. The SPE NAICE will
be an appropriate platform to bring to the
front-burner the critical discussions that
would forge a robust and implementable
clean energy solutions pathway for Nigeria.
26
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA OIL & GAS
AKK Gas Project Will Be Delivered on Schedule, Create
Massive Jobs, Prosperity, and Guarantee Peace - Kyari
The Group Managing Director of the
N i g e r i a n N a t i o n a l P e t r o l e u m
Corporation (NNPC), Mallam Mele Kyari,
has assured that the ongoing 614 kilometres
Ajaokuta-Kaduna-Kano (AKK) gas pipeline
project would be delivered on schedule, create
prosperity through massive job opportunities
and guarantee peace for the country.
A statement by the Group General Manager,
Group Public Affairs Division of the NNPC, Dr.
Kennie Obateru, disclosed that the GMD stated
this at Gas Sector Stakeholders’ Forum which
was held in Kano State, with the theme:
“Optimizing the Economic Development
Capacity of Ajaokuta-Kaduna-Kano (AKK) Gas
Pipeline Project”.
In a paper titled: “The AKK as an Economic
Development Game-Changer – NNPC’s Vision,
Contributions, & Plan Forward,” Mallam Kyari,
stated that the AKK gas project would help
revamp about 232 industries creating massive
employment opportunities and prosperity for
the people.
He said it would also serve as gas supply link to
other African countries and Europe upon
completion.
“This project has been on the drawing board for
30 years and the dream was to have gas
delivered to Europe across the Trans-Sahara
route. What we are seeing today would deliver
at least 2 billion standard cubic feet of gas to the
domestic market at the first instance with the
potential to increase it. What this means is that
it will debottleneck the gas supply network in
the entire country,” Mallam Kyari informed.
He said the AKK gas project would also lead to
the development of three Independent Power
Plants (IPP) in Abuja, Kaduna and Kano, adding
that the IPPs would boost electricity supply and
promote the growth of small and medium scale
enterprises in Nigeria.
“I want to state clearly that this gathering would
not have been possible if we don’t have a line of
sight to the completion of the AKK gas pipeline
project. This is possible because of the clear
direction that Mr. President has shown on the
need to deepen domestic gas consumption with
a view to creating prosperity out of the
enormous gas resources we have as a nation. He
has given us all the necessary support and
incentives to deliver on this project,” he stated.
Kyari said the AKK gas project would also boost
the Agricultural, Industrial, Manufacturing and
Power Sectors for the overall growth of the
nation’s economy.
Mele Kyari, Group Managing Director (GMD) Nigerian National Petroleum Corporation (NNPC)
He said that the AKK gas pipeline project
was in sync with the aspiration of the
Federal Government to reduce the
nation’s carbon footprint in line with the
global quest to mitigate global warming
and climate change and in furtherance of
the Decade of Gas programme.
According to him, gas is a key driver of
prosperity all over the world and it cannot
be different in Nigeria, stressing that the
extensive industrial layout in the Otta
area of Ogun and Lagos States is
anchored on the gas supply by the NNPC
and its partners which is creating jobs and
other opportunities for people.
In his keynote address, the Minister of
State for Petroleum Resources, Chief
Timipre Sylva, said the Gas Sector
Stakeholders Forum would ensure
collaboration amongst stakeholders
geared towards kick-starting the required
activities that would guarantee full usage
of the gas to be delivered through the
AKK pipeline when completed.
“ To d ay ’s e v e n t r e i n fo r c e s o u r
commitment to realizing the inherent
potentials of gas usage as a national
catalyst for achieving economic
diversification from crude oil and as a
transition fuel from fossil of today to the
renewable energy of tomorrow,” Chief
Sylva submitted.
The AKK pipeline would be the biggest gas
pipeline infrastructure development in
the country’s recent history.
Harnessing and commercializing the Nigeria’s
vast gas reserves was an enabler for rapid
economic development and diversification of
the economy, and the Ajaokuta-Kaduna-Kano
(AKK) Gas Pipeline project is part of President
Buhari Administration’s efforts to ensure
sustainable development and growth of the
nation’s Economy.
The project, when completed, would provide
gas for generation of power and feedstock for
gas-based industries, and also facilitate the
revival of moribund industries and the
development of new ones along transit
towns in Kogi State, Abuja (FCT), Niger State,
Kaduna State and Kano State.
AKK project will generate employment
opportunities and facilitating Balanced
Economic Growth.
The AKK project is also a celebration of the
successes of the Nigerian Content Policy
goals. The project would be turning to reality
some of Nigeria’s long term economic
aspirations of boosting domestic energy
infrastructure, deepening the local gas
market, creating industrial corridors with
cleaner fuel, and commercializing the
country’s abundant gas resources.
The event had in attendance major
stakeholders in the oil and gas value chain
and the Governor of Kano, Alhaji Abdullahi
Ganduje, while the Governors of Nasarawa,
Niger, Kaduna, the Hon Minister of Finance
and Alhaji Aliko Dangote joined virtually. The
Governor of Kogi State sent a representative.
27
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA OIL AND GAS
NNPC to Develop Comprehensive Divestment Policy
for IOCs Operating in Nigeria
IOCs diversify their portfolios to low-carbon
investments.
Kyari however, said that energy consumption
would increase beyond what renewable energy
sources can meet by 2050 especially with the
anticipated economic growth and rising
population of Asia and Africa.
“Building on this convergence, Nigeria as a key
player in global energy security is addressing its
challenges mainly, Fiscal, Security and Cost
Competitiveness to stimulate investments in
the oil and gas industry.
The Nigerian National Petroleum
Corporation (NNPC) has said that it
will soon develop a Comprehensive
Divestment Policy for International Oil
Companies ( IOCs) operating in the country
to protect strategic national interest.
Mr Mele Kyari, the Group Managing
Director, NNPC disclosed this in Lagos
recently at the 2021 Society of Petroleum
E n g i n e e rs ( S P E ) N i g e r i a A n n u a l
International Conference and Exhibition
(NAICE).
The conference, with the theme: “The
Future of Energy – A Trilogy of
Determinants: Climate Change, Public
Health, and the Global Oil Market.”
Kyari said the divestment policy would
ensure that only investors with technical,
financial and operational capabilities take
position of the IOCs assets thereby adding
value to the industry.
“We have seen a whole wave of
divestments by major IOCs operating in
our country.
“NNPC as their major partner cannot stop
partners from divesting their interests. We
can’t do this because we all have the right
to migrate our portfolios depending on the
circumstances.
Omar Farouk
Mele Kyari, Group Managing Director (GMD) Nigerian National Petroleum Corporation (NNPC)
“The divestments create challenges for us in
ensuring that we get right and competent
investors to take position and add value to the
industry.
“We have engaged all our partners to ensure
that while they have the right of divestments,
that there should be no situation where this will
become a waterloo of our industry.
“Therefore, NNPC will ensure Nigeria’s strategic
national interest is safeguarded by developing a
comprehensive Divestment Policy that will
provide clear guidelines and criteria for
divestment of partner’s interest.”
Kyari said going forward, that the NNPC would
make clear distinctions between Divestment of
Shares and Operatorship Agreements under
various Joint Operating Agreements.
According to Kyari, it will also leverage its rights
of pre-emption as well as evaluating the
operational competency and track records of
new partners.
He said attention would be paid to
abandonment and relinquishment costs,
severance of operator staff as well as third party
contract liabilities.
He said that the divestment was being driven by
global energy transition which was making the
“This include the recent passage of the
Petroleum Industry Bill, the National Gas
Expansion Programme and development of gas
infrastructure such as the Ajaokuta- Kaduna-
Kano (AKK) and the Obiafu-Obrikon-Oben (OB3)
pipelines.’’
Kyari reiterated Nigeria’s commitment to
energy transition in the near future, adding that
its huge gas resources would serve as a vehicle
for the country’s transition to cleaner sources of
energy.
Earlier, Mr Olatunji Akinwunmi, the Chairman,
SPE, Nigeria Council, said it was in the interest of
the country’s oil and gas industry to be in phase
with the rest of the world regarding energy
transition.
“Reduction of carbon emissions could be
achieved by more efficient operations, focusing
on transition to gas exploration and
development to replace coal in electricity
generation.
“In addition, novel technologies as well as
digital transformation initiatives should help in
the direction of reducing both emissions and
cost, which would render our products more
accessible, more competitive, and more
acceptable.’’
NNPC is leveraging technology to achieve better
systems and processes optimization to support
performance, accountability and value creation
that exceeds the simple fulfilment of our
business mandates.
NNPC remain committed to working with
stakeholders to maintain firm position in
today’s and future energy industry.
28 22
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA AND GAS
DPR Formulates MER Strategy, Assures Investors of
Enabling Business Environment in Oil, Gas Industry
The Department of Petroleum Resources
(DPR) says it is formulating a Maximum
Economic Recovery (MER) strategy for
Nigeria to attain maximum value delivery from
its oil and gas resources.
Mr Sarki Auwalu, Director, DPR, made the
announcement during a keynote address at the
2021 Society of Petroleum Engineers (SPE)
Nigeria Annual International Conference and
Exhibition (NAICE) on Tuesday in Lagos.
The News Agency of Nigeria ( NAN) reports that
the conference has as its theme: “The Future of
Energy – A Trilogy of Determinants: Climate
Change, Public Health, and the Global Oil
Market.”
Auwalu said the industry initiative was one of
the outcomes of the work of the National Oil
and Gas Excellence Centre (NOGEC), Lagos
inaugurated in January by President
Muhammadu Buhari.
He said: “Following an in-depth assessment of
the status of the industry, the department
identified the need to formulate the “Maximum
Economic Recovery strategy for Nigeria.
“This is to guarantee the actualisation of
sustainable resource optimisation and the
economic benefits arising therefrom.
“The framework for this industry action plan,
outlines six pillars or building blocks.”
Auwalu said the pillars were: Reserves
Maturation and Production Optimisation,
Exploration and Resources Maturation,
Improved Oil Recovery and Enhanced Oil
Recovery, Implementation Asset Stewardship,
Performance Evaluation and Rewards Risk
Management.
According to him, the draft framework has been
shared with the industry, including professional
associations like the SPE and the National
Association of Petroleum Explorationists.
He said this was in preparation for an industry
collaborative workshop to co-develop and
enunciate this strategy for immediate
execution.
“We count on the contributions and buy-in of all
stakeholders on this crucial national assignment
for our overall benefit and industry
sustainability, “he said.
Auwalu said Nigeria was rising to the occasion as
the ‘trigger’ for continental growth and
economic transformation using its oil and gas
resources to drive value for national
development.
Sarki Auwalu, Director of Department of Petroleum Resources (DPR)
He said the DPR would continue to foster
i n n o v a t i v e i d e a s a n d c r e a t e
opportunities for investments and
sustainability in the industry.
Auwalu said: “As always, we are
enthusiastic to collaborate with all
relevant stakeholders, including the SPE,
toward the realisation of governments
aspirations for the oil and gas sector.
“In our role as business enablers and
opportunity providers, DPR will continue
to promote efficiency to meet the needs
of the industry, creating value, enhancing
transparency, reducing barriers and
transaction costs.”
In another development, DPR has
outlined five key strategies to fortify the
Nigerian oil and gas sector for economic
stability and growth.
Auwalu said the DPR would remain
committed to the development of oil and
gas sector for economic growth and
development.
“For us in the DPR, we contemplate five
broad areas in which the industry needs to
support the nation for economic growth and
stability.
”The areas are legal, institutional, financial,
in-sector diversification and indigenous
capacity.
“And I have to say that with the focused
leadership of President Muhammadu Buhari
and the Minister of State for Petroleum
Resources, Chief Timipre Sylva, the key
fundamental issues on growth are being
addressed, “he said.
According to him, under the legal front, the
long-awaited Petroleum Industry Bill (PIB)
that has been passed will enhance clarity in
legislative, regulatory, fiscal, and
administrative frameworks.
He said that evolving commercial institutions
would be strengthened for efficiency,
prudent management, financial stewardship,
and operational management.
“At the same vein, the regulatory institutions
will be strengthened to streamline roles,
prevent duplication and promote ambition
that will promote regulatory clarity in rules of
doing business.
29
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA AND GAS
A P P O I N T M E N T
Dr. Philip Mshelbila
Managing Director/CEO,
Nigeria LNG Limited (NLNG)
Mshelbila Appointed
as NLNG’s CEO,
Managing Director
The Board of Directors of NLNG has approved the
appointment of Dr. Philip Mshelbila as the new
Managing Director/CEO of NLNG.
He succeeds Mr. Tony A ah.
The Board of Directors of Nigeria
LNG Limited (NLNG) has approved
the appointment of Dr. Philip
Mshelbila as the new Managing
Director/Chief Executive Officer. He
succeeds Mr. Tony Attah.
According to the Company’s General
Manager, External Relations and
Sustainable Development, Eyono Fatayi-
Williams, Engr. Attah returned to his parent
company, Shell, on 30th August 2021 at the
expiration of his five-year tenure at the
helm of affairs. Engr. Attah was appointed
Chief Executive Officer by the NLNG Board
in July 2016.
Dr Philip Mshelbila resumes office at the
company on August 31, 2021.
On March 2021, Nigeria’s President,
Muhammadu Buhari formerly unveiled
“The Decade of Gas”, an initiative designed
to ensure Nigeria takes advantage of the
global energy transition, adding that the
“Decade of Gas” initiative was a bold step
to demonstrate its Administration’s
commitment towards gas development
and utilization.
Mshelbila, who comes with an extensive
experience in Gas Resource Management,
having served as Managing Director of
Shell Nigeria Gas Ltd; Commercial
Manager and Project Development
Manager in Shell Gas & Power, and
currently Chief Executive Officer of Atlantic
LNG Company of Trinidad and Tobago,
would contribute his part to the country’s gas
ambition.
On the other hand, with an indepth background
in Communications, Community Relations and
Sustainable Development, Mshelbila’s arrival is
anticipated to help close the gaps in host
community relations, for which agitations have
been on the rise in recent times with the
company gasping for ideas on how to respond
adequately.
Dr. Philip Mshelbila has served as Shell’s
General Manager for Communications in West
Africa; General Manager, Sustainable
Development and Community Relations for
Shell Companies in Nigeria; and Private
Assistant to the Chief Executive of Royal Dutch
Shell; Regional (Business) Adviser, Shell
International, The Netherlands, and Regional
Health Manager, Africa; roles that entailed
managing sustainable development and social
investment as well as relations with
communities, local and state governments in
the Niger Delta.
His goal in NLNG remains to sustain the
company’s historical excellent performance
while working to raise the company to the next
level and continuing to make NLNG an
inspiration to Nigeria as part of NLNG’s vision of
helping to build a better Nigeria.
NLNG is an incorporated Joint-Venture owned
by four Shareholders, namely, the Federal
Government of Nigeria, represented by
Nigerian National Petroleum Corporation (49%),
Shell Gas B.V. (25.6%), Total Gaz Electricite
Holdings France (15%), and Eni International N.A.
N.V. S.àr.l (10.4%).
Nigeria LNG Limited (NLNG) is a major player in the
global LNG business. Today, NLNG has a total
production capacity of 22 Million Tons Per Annum
(mtpa) of LNG and 5mtpa of Natural Gas Liquids
(NGLs) from its six-train plant complex.
The company has 16 long-term Sale and Purchase
Agreements (SPAs) with 10 buyers and controls
about 6 per cent of global LNG trade.
NLNG began its intervention in the supply of
Liquefied Petroleum Gas (LPG), otherwise known
as cooking gas, to the domestic market in 2007
under the NLNG DLPG Scheme. The supply has
stimulated growth in the industry, guaranteeing
LPG supply, availability and affordability. This has
also inspired the development of different parts of
the DLPG value chain.
In 2019, NLNG shareholders took the Final
Investment Decision (FID) on its 7th train and
awarded the Engineering, Procurement and
Construction (EPC) contracts for the plant
expansion in 2020. The long-awaited expansion
will increase production capacity by 35 per cent
from 22mtpa to 30mtpa and enhance NLNG’s
competitiveness in the global market.
The company has a proven track record of resilient
performance (Operational Excellence, HSE, etc.)
and unswerving profitability.
30 22
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA OIL & GAS
ND Western Calls for More Private Investment in
Nigeria's Frontier Basin Exploration
The Managing Director/Chief Executive
Officer of ND Western, Eberechukwu
Oji, has called for more private
investment participation in the Nigerian
frontier basin exploration.
Speaking in an exclusive interview with
PUNCH, Oji said it is high time Nigeria maximise
the abundant oil and gas reserves, whilst
making further investments in exploration.
He further explained that some section of the
recently passed Petroleum Industry Bill (PIB),
mandates a percentage for frontier basin
exploration. He added, “is a mistake and should
be corrected.”
According to Oji, the country’s focus should be
on diversifying its economy by building a strong
and well-funded sovereign wealth fund to
drive the diversification agenda.
The PIB as passed by the National Assembly
mandates that the new Nigerian National
Petroleum Corporation (NNPC) should be
spending 30 per cent of its profits on oil
exploration in the frontier basins.
Eberechukwu Oji, Managing Director/Chief Executive Ofcer, ND Western
“In my view, capital allocation is best handled
by competent managers of any corporate
organisation of the size of the new NNPC.
Mandating a percentage for frontier basin
exploration is a mistake and should be
corrected,” Oji said.
“If anything, we should be seeking to diversify
the Nigerian economy by building a strong and
well-funded sovereign wealth fund to drive the
diversification agenda. We need to invest more
in gas as a transition fuel, invest in renewables
to future-proof our economy and channel our
available funds to the most important resource
that Nigeria has which is her people.
“Aggressive human capacity development in
the frontier basin is guaranteed to pay more
long-term dividend than a certain per cent
profit allocation for exploration in the same
basin.”
Oji has an extensive experience in the oil and
gas industry, and had worked in several
jurisdictions including the Netherlands, UK and
much of Europe, Singapore and far East Asia up
to Australia, Kazakhstan, India, the United
States, and so on.
On how the country can attract investments to
achieve the Decade of Gas plan, Oji said that
with the right investment friendly policies and
securitisation of investments, about $40 billion
needed to achieve the potential of the plan can
be achieved.
“Look at the NLNG Train 7 example. Over $10bn
was needed but this was massively
oversubscribed even during the lock-down,” he
said.
“In simple terms, it is possible to attract this
level of investment if our policy trust as a nation
is specifically aimed at attracting these
investments.
“The investment dollars are there but it will go
where the most enabling environment has been
created for it. That’s the challenge for our policy
makers.
“As you can understand, Nigeria is in a global
competition for investment dollars. New
investors will be taking a hard look at the
experience of existing investors before they
come in.
“These things are not so complicated. You can
look at NLNG case and replicate the conditions
that attracted such massive oversubscription
for Train 7, and you will attract the needed
investment. The same is applicable in deep
offshore. Look at the Production Sharing
Contract terms that enabled Bonga investment,
you replicate the same, of course benchmarking
with new deep offshore basins like Guyana,
Suriname etc and you will attract the needed
investment dollars.
“My advocacy is, treat your existing investors
well so that new ones will come in and we need
to replicate what we have done in the past that
worked very well as in the examples I have
given.”
Speaking on the ND Western aim to double its
current gas production capacity to 600 million
standard cubic feet per day by 2022, he
disclosed that the company is working to
achieve a production capacity of 400mmscfd by
the end of this year.
He said, “Our development of gas resources is
driven by market gas demand. We have drilling
campaigns which are undertaken within the
timeframe to take our production capacity to
600mmscfd by 2022 and our aim currently is to
achieve production capacity of 400mmscfd by
end 2021.
“The gas market in Nigeria must mature enough
to absorb all that we can produce. We are
aligned with the conventional wisdom of
developing gas supply to match demand. This is
because you cannot store gas unless you liquefy
it. You want to sell the gas to a paying customer
before you make the investment to drill a nonassociated
gas well.
“We are in the process of finalising gas purchase
agreements for these extra volumes of gas
before we commence the drilling campaign.
“With the completion of the AAK pipeline which
opens more opportunities for our gas demand,
600mmscfd is not far from our reach.”
31
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA OIL & GAS
PIC Group Awarded O&M Support Services Contract
for Azikel Refinery in Bayelsa State
Having operated and maintained
assets, deployed and trained
workforces in remote locations
around the world, and building on years of
experience in Nigeria, PIC Group has
entered into a 5-year service agreement
with Azikel Petroleum Limited for the new
Azikel Refinery to be located in Yenagoa,
Bayelsa State, Nigeria.
Under the terms of the agreement, PIC
Group will provide Operations and
Maintenance (O&M) support services
including site-specific integrated operation
& maintenance procedures, a systematic
approach to training as well as operational
support in the form of oversight and
mentoring of refinery personnel by PIC
Group’s specialists.
PIC Group’s thorough and sustainable
qualification programs combined with a
comprehensive approach to organizational
development will enable the new Azikel
Refinery to efficiently transition from
commissioning and startup through to full
operation as well as facilitate staff
localization for the new 12,000 bpd
hydroskimming refinery.
“PIC Group’s O&M experience, approach
to site-specific qualification programs and
p re c i s e s i t e - s p e c i f i c p ro c e d u ra l
documentation, creates a consistent base
of knowledge for the Azikel Refinery to
improve efficiency, and ensure reliable,
consistent, safe operation,” said Ian
Anderson, Executive Director and VP
Refinery at Azikel Petroleum.
“PIC Group’s systematic methodology for
knowledge transfer embraces Azikel’s
vision of self-performance and will
Ian Anderson, Executive Director and VP
Refinery at Azikel Petroleum
empower the local community to lead the longterm
operation of the facility while maintaining
operational readiness and regulatory
compliance across the lifecycle of the refinery,”
said Frank Avery, President and CEO at PIC
Group.
Dr. Eruani, Group President said, “Training of
our staff was of paramount importance to Azikel
in our selection of the O&M services contractor,
and we are very pleased with the
comprehensive program proposed by the PIC
Group.”
Azikel Petroleum Ltd. is part of the Azikel Group,
a privately owned company involved in
dredging, aviation, power generation and
petroleum businesses supporting the
infrastructure development of Nigeria.
Established in 2008, the company’s focus is in
the industrialization, employment, and the
development of human capital with a
geographic focus in the Niger Delta region of the
country.
Founded in 1988, PIC Group, Inc. is dedicated to
delivering value by providing global energy
services to facilities across four continents –
North America, South America, Asia and Africa.
PIC Group provides O&M Services (Care,
Custody and Control), Commissioning and
Startup, Documentation & Training and Staffing
services and serves the power generation, oil
and gas, petrochemical, pulp and paper and
manufacturing industries.
PIC Group, Inc. is a wholly owned subsidiary of
Marubeni Corporation, a Fortune Global 500
Company. Marubeni is a major Japanese sogo
shosha (international trading company) and the
third largest global independent power
producer (IPP).
Founded in 1988, PIC Group, Inc. is dedicated to
delivering value by providing Operation &
Maintenance, Commissioning and Startup,
Documentation & Training and Staffing services
to the power generation, oil and gas,
petrochemical, pulp and paper and
manufacturing industries globally.
Having the organizational expertise, processes,
and procedures to perform effectively
anywhere in the world, PIC Group is a global
services provider capable of meeting a
customers’ diverse needs.
The scalability of PIC Group’s offerings ranges
from providing a single resource to full care,
custody and control O&M service model or
extend to full knowledge transfer allowing
owners to self-perform O&M utilizing PIC Group
tools and standards of performance. PIC Group
is committed to providing results through a
systematic process-oriented approach to
ensure greater customer confidence and
satisfaction.
32
OIL AND GAS REPUBLIC I SPECIAL EDITION
NIGERIA OIL AND GAS
Aiteo Group Equips Navy with High-Tech Marine Assets to
Fight Pipeline Vandalism, Piracy in Nigerian Waters
The Aiteo Group, one of Africa’s
fastest-growing energy leaders has
delivered some High-Tech Marine
assts to the Nigerian Navy to equip them in
the fight against pipeline vandalisation, oil
theft, piracy in the Nigerian waterways.
Aiteo said the Nigerian Navy has just taken
inventory of an assortment of 50 assault
gunboats, high-speed interceptor boats,
patrol boats, houseboats, HD cameras and
surveillance drones to tackle economic
crimes and sabotage in the nation’s marine
territory.
The assets, which were donated by Aiteo at
NNS Pathfinder, Rivers State, include 21
gunboats, 14 operational/patrol boats,
seven houseboats and four airboats.
Others are four high-speed interception
inshore patrol boats, long-range
surveillance drones and six high-definition
cameras.
Receiving the items on behalf of the
Buhari-led Federal Government of Nigeria,
the Navy Chief, Vice Admiral Awwal Z
Gambo, said the resources would be
deployed to the creeks to fight oil theft,
piracy and sea robbery specifically along
the NCTL right of way.
He opined that the donation was the
manifestation of months of collaboration
with critical maritime stakeholders to
support naval operations.
“The delivery of these platforms and assets
align with the provisions of the Nigerian
Navy’s 2021-2030 strategic plans on interagency
and sub-regional cooperation. This
is a milestone in our collaborative
engagement with corporate maritime
stakeholders to rid the nation’s maritime
environment of criminal elements and
economic saboteurs. To this end, these
platforms will enhance the navy maritime
security architecture and enhance our
maritime security operations effort,” he
said.
Gambo commended Aiteo for the highly
patriotic donation at a crucial interval in
the war on insecurity and sought the
support of other corporate organisations
to enable the navy deploy more security
properties and halt the growing criminal
activities in Nembe Creek Trunk Line, NCTL
which traverses Nembe, Bayelsa to Bonny,
Rivers State.
Also in attendance was the Chief of Defence
Staff, General Lucky Irabor, said the new
resources would be deployed to complement
other internal security operations across the
country. The defence chief gave assurances that
the marine vessels would be used for their set
objectives of securing lives and property,
including the nation’s oil and gas installations.
In his remarks at the event, Governor of Rivers
State, Barrister Nyesom Wike, represented by
the Secretary to the Government of Rivers
State, Dr. Tammy Danagogo, expressed
appreciation to Aiteo for the donation.
In his address, the Executive Vice Chairman and
founder of Aiteo, Mr. Benedict Peters, said the
company decided to donate the equipment to
the Navy, owing to frequent attacks on critical
oil and gas facilities by vandals.
Mr. Peters, who was represented by Aiteo
Global Group Director and Co-Ordinator, Asset
Protection, Security Services and Community
Matters, Chief Andrew Oru, expressed
enthusiasm that the donated resources would
further complement the Federal Government’s
efforts at mitigating the risks earlier
highlighted.
“Aiteo Global Group believes that the Nigerian
Navy stands in the best position to address this
menace if adequately equipped and supported .
Consequently, it is our expectation that the
contribution of these hardware would be a
source of further motivation to our gallant
Nigeria Navy leadership and personnel as they
secure our waterways and restore National
pride, security and cohesion,” he added.
Significant stakeholders who witnessed this grand
commissioning include, the deputy governor of
Bayelsa State, Mr. Lawrence Ewhrudjakpo, the GMD
NNPC was represented by the General Manager,
Joint Ventures, NAPIMS, Madam Martina Atuchie,
and Director of NOSDRA, Mr. Idris O. Musa. The
commander of the Joint Task Force, OPDS, Rear
Admiral Aminu Hassan as well as other heads of
security agencies made the August gathering.
Aiteo is one of Africa's fastest-growing energy
company with a clear vision to provide oil and gas
on a regional and global scale. The company
discover, produce, store and deliver energy
resources to marketplaces worldwide.
Aiteo is developing energy resources in some of the
world's most significant basins, including the huge
potential of the Niger Delta basin in West Africa's
offshore fields, and Benue Trough.
Aiteo Group is strategically focused on these
business areas, with major prospects for
immediate revenue growth and market
penetration:
3Exploration and production
3Bulk petroleum storage
3Refining of petroleum products
3Trading, marketing and supply
3Power generation and distribution
33 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
LOCAL CONTENT
NCDMB, TotalEnergies Celebrate Load Out of Ikike
...project creates 30,000 jobs, first oil in 2022
AMD 2 Module
Senior officials of the Nigerian
C o n t e n t D e v e l o p m e n t a n d
Monitoring Board (NCDMB), Total
Energies Nigeria and the Department of
Petroleum Resources on Saturday in Port
Harcourt, Rivers State celebrated the load
out of the AMD 2 Module of the Ikike
Development Project, describing it as
another remarkable Nigerian Content
accomplishment by Total Energies Nigeria
Ltd.
The AMD 2 Module is a component of the
Brownfield package of the Ikike project, and
the contractor is Sudelettra Nigeria Ltd. The
project is being developed as a satellite tieback
to the Amenam-Kpono field, also
owned and operated by the Total/NNPC JV.
Delivering his address at the load out
ceremony held at Sudelettra Fabrication
Yard, the Executive Secretary of NCDMB,
Engr. Simbi Kesiye Wabote lauded Total
Energies for being a worthy partner in Local
Content development since the enactment
of the Nigerian Oil and Gas Industry Content
Development (NOGICD) Act in 2010. He
hinted that Total’s local content milestones
on the Egina FPSO project remains a
reference point for major project promoters
to date.
The Executive Secretary who was
represented by the General Manager,
Projects Certification and Authorization
Division, NCDMB, Engr. Paul Zuhumben
noted that the Board and Total collaborated
at the beginning of the Ikike project to
earmark high local content commitments
and targets which had now yielded fruits.
He listed some of the pace-setting statistics
of the AMD-2 Module to include all
engineering design works domiciled in
Nigeria with 93 percent or 89,003 man-hours by
Nigerian personnel and entire fabrication scope
executed at Sudelettra Fabrication Yard, with
Nigerians performing 98 percent of the 298,158
fabrication man-hours.
Other third-party services executed by Nigerian
companies with requisite facilities included NDT,
GRP Piping, Laboratory Testing, among others.
Wabote assured that other work scopes on the
Ikike platform would be domiciled in accordance
with the agreed local content targets, to sustain
the job creation drive of the Federal Government.
He said: “in line with the commitment of Total
Energies in the signed Nigerian Content
Compliance Certificate (NCCC), hook-up
engineering and tie-in services, inspections and
integrity works, pre-commissioning and
commissioning, marine activities would be
executed with over 95 percent Nigerian
personnel with locally owned equipment and
assets.
“This is in keeping with the Board’s initiatives
geared towards utilization of Nigerian owned
marine assets and investments.”
The Executive Secretary further noted that the
AMD-2 Module provided an opportunity to carry
out refresher oil and gas trainings for 57
personnel as well as trainings for 30 new
personnel. He requested the contractor and Total
to retain the trainees in the remaining part of the
Ikike project.
In his comments, the Executive Director, Total
Energies, Port Harcourt District, Mr. Obi Imemba
indicated that the entire Ikike project has
recorded 77 percent overall progress and the
construction of the modules-topsides, platforms,
risers, jackets and all other packages were
executed in various Nigerian yards by different
vendors as approved by NCDMB. He added that
“Our offshore campaigns are also being executed
with vessels that are domiciled in Nigeria and the
drilling is with Nigerian companies.”
He confirmed that the company had used the
project to enable more than 30,000 jobs directly
and indirectly, highlighting that all the aspects of
the job were done with the spirit of promoting
Nigerian Content and in collaboration with
industry stakeholders.
The Executive Director also underscored the
company’s commitment to developing a pipeline
of oil and gas projects and supporting additional
production potentials of Nigeria, adding that the
company was keen to capitalize on all the lessons
learnt from previous projects to develop the Ikike
project in a simple, cost effective and efficient
manner.
He recalled that the Final investment Decision
(FID) for the Ikike project was taken in 2019, with
support of the partners and the AMD-2 Module
started in 2020 and on completion it weighed 250
tons.
He commended the contractor for delivering on
the project despite the scourge of the COVID-19
and economic challenges and for recording more
than 500,000 manhours without any Loss Time
Injury (LTI).
Imemba assured that the offshore components of
the project were already in progress, including
the installation of topsides, adding that that
commissioning and celebration of first oil were
expected early 2022.
The Project Manager of Ikike Project, Total
Energies, Mr. Modestus Nwosu confirmed that
over 44 Nigerian vendors were engaged on
various scopes of the Ikike project. He added that
the project had also followed the instruction of
the Board to undertake the renovation of a hostel
and workshops in Government Technical College
in Port Harcourt, River State.
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OIL AND GAS REPUBLIC I SPECIAL EDITION
LOCAL CONTENT
TotalEnergies Committed to Nigerian Content, Share
Best Practises for Intra-African Trade
T
otalEnergies is proudly committed to
local content development in Nigeria
and has been operating in the country
for almost 60 years.
At the 20th Nigeria Oil and Gas Conference and
Exhibition (NOG), the Deputy Managing
Director, Deep Water District of TotalEnergies,
Mr. Victor Bandele made a keynote
presentation on “Expanding the Nigerian
Content Frontier through Intra-African Trade”.
Bandele was represented by the Executive
General Manager, Government Relations,
TotalEnergies, Nigeria, Olalere Babasola, said
that the NOG event provides opportunities for
operators to share best practices and industry
experiences which enables operator to learn
from one another, adapt and quickly take
actions that will sustain the industry.
Babasola revealed that TotalEnergies, as it is
presently called, has been present in Africa for
more than 80 years and has been involved in
exploration activities in Nigeria for almost 60
years now.
In the Upstream sector, the company has a
broad and diversified portfolio in Nigeria, with
activities spanning onshore, conventional
offshore, deep water and LNG. TotalEnergies is
proud of its strong partnership with the
Nigerian National Petroleum Corporation
(NNPC) including various partners, over the
years.
The upstream branch plays a significant
economic and social role in Nigeria, operating
nearly 15% of the country’s production.
Nigeria, as one of the company’s core areas of
activities, is also crucial to the TotalEnergies
Group, accounting for 12 % of its equity
production.
In the last few years alone, TotalEnergies has
invested approximately 10 billion US dollars in
Nigeria. Through decades of executing
development projects, the company’s
activities have contributed to creating jobs and
developing human capacity in Nigeria.
Babasola explained that despite the
challenging environment that the company
operate in as an industry, TotalEnergies
remains committed to investing in the country
because it strongly believe in the potential of
Nigeria and Nigerians. This is why it has been
quite active in recent years even in the face of
understandable uncertainties. The company
completed Egina at the end of 2018 and has
been progressing well with the development of
Ikike project.
TotalEnergies Outstanding Projects:
3Egina Project
In 2013, three years after the Nigerian Oil & Gas
Industry Content Development Act became law,
TotalEnergies took the Final Investment
Decision to develop Egina.
The Egina field is located in Oil Mining Lease
OML 130 and is approximately 200km offshore
Nigeria. The offshore development comprises a
new build spread moored FPSO (330 x 61x
33.5m dimensions with 240 POB and 2.3MBBLs
storage capacity) connected through a sub-sea
production system to 44 wells (21 oil producers
and 23 water injectors) via Umbilicals, flowlines
and risers.
Egina is TotalEnergies’ third deep offshore FPSO
project in Nigeria after the successful delivery
of AKPO project (2009) and USAN project
(2012). These projects have brought
progressive increase in levels of Nigerian
Content, and Egina, being the first major project
launched after the enactment of the Nigerian
Oil & Gas Industry Content Development
(NOGICD) Act of 2010, has so far the highest
level of local content of any FPSO project in
Nigeria:
Employment in Nigeria during life of project: 47
million man-hours (77% of total project
workload).
3Fabrication: approximately 60,000 tons of
equipment fabricated in Nigeria.
600,000+ man-hours of human capacity
development training across Egina contracts.
Construction of new fabrication facilities and
quayside; Upgrade of existing fabrication
facilities.
On December 29, 2018, Egina first oil was
achieved with the opening of the first
production well on the South Loop. With a
capacity of 200,000 barrels of oil per day, Egina
has increased Nigeria’s oil production by 10%.
3Ikike Project
Ikike field development lies within Nigeria
offshore block OML 99 (Amenam-Kpono),
situated 20 km offshore, in 20m water depth
and approximately 15 km north of the Amenam
complex. It is outside the AMENAM unitized
area in joint venture partnership with NNPC
(NNPC-60% /TEPNG-40%).
The Ikike field is being developed as a satellite
tieback to Amenam. Despite its size and scope,
TotalEnergies Nigerian Content objectives for
Ikike are not any less ambitious.
The overall target is to achieve 90% Nigerian
Content on Ikike with 100% of project
management based in-country; 100% of
detailed & basic engineering in Nigeria; 100% of
procurement by local firms; 3,000 direct jobs;
Refresher/On-the-job training for 53 NCDMB
trainees; entry level training of 80 Geoscience
36
OIL AND GAS REPUBLIC I SPECIAL EDITION
LOCAL CONTENT
students as well as infrastructure development
support to some schools.
Taking Nigerian Content to the rest of Africa
through Intra-African Trade
There are 18 oil-producing countries in Africa.
The African continent is also home to five of the
top 30 oil-producing countries in the world.
The combined daily oil production of Africa was
more than 7.9 million barrels per day in 2019,
which is about 9.6% of world output.
However, the coronavirus pandemic and
recent OPEC production cuts have dramatically
reduced daily outcome from the Continent.
There is no debating the fact that oil-rich
African countries have not benefited
satisfactorily from the exploitation of their
hydrocarbons.
Though they receive significant fiscal benefits
from the export of oil and gas, the
development linkages to other economic
sectors remain marginal in terms of domestic
value added and job creation. This is why there
is a renewed zeal among these countries to try
and extract as much value as they can from the
Oil and Gas Industry. This is also why many of
these oil-producing African nations have
adopted local content policies as a
development strategy aimed at increasing the
benefits from the Industry.
In most cases, the objective of local content
policy or regulation, as the case may be, is to
transform the short-term benefits of oil
production into long-term local economic
development outcomes through capacity
strengthening, institutional building and
strategic policy tools that promote domestic
economic linkages, job creation and the
participation of indigenous companies in the
sector’s value chain through the supply of
goods and services.
Governments of these oil-producing African
countries often require foreign investors to
develop ‘local content’ by creating jobs,
opening equity to local partners and investing
in local supply chains with the objective of
transferring knowledge and value to the local
economy.
All of Africa’s 18 oil-producing countries have
enacted one form of local content regulatory
framework or the other. Even in the mining
sector, we have seen an enthusiasm for
developing legal frameworks to ensure greater
local participation across the continent.
Therefore, in most of the continent, local
content regulations and institutional controls
are now entrenched.
But what has been the impact on the various
economies of the countries where these
frameworks exist? Are we seeing any significant
change in the economic fortunes of these
countries beyond the collection of royalties and
fees? Are we seeing increased capacity in the
key technical areas?
In the last decade, for instance, Ghana has
joined the league of oil and gas producers. With
its Tilenga Project, Uganda will soon become
another oil producer.
For its FPSO needs, Ghana had to turn to the
Malaysia-based Yinson Holdings. And the
experience appears set to repeat itself in the
case of Uganda’s Tilenga. More than 65 years
after the discovery of petroleum in Africa, the
Continent has yet to develop local technical
capacity to meet some of the Industry’s basic
needs.
However, if the example from Nigeria is a good
indicator of the state of affairs on the continent,
then we can say, we are not yet there, but we
are well on our way.
For it was after the passage of the NOGICD Act
that Nigeria built Africa’s first FPSO integration
quay as well as built and installed six entire
FPSO topside modules on Egina. What African
countries need to do, as a matter of urgency, is
to open the continent to freer exchange of
capacity and trade among one another.
The Opportunities
There will be a great opportunity for intracontinental
collaboration when the Nigerian
Content and Development Monitoring Board
(NCDMB) collaborates with sister local content
authorities in the continent to share ideas,
capacities, and competencies. Nigeria has a lot
to export to other African countries in the area
of local content.
It will be recalled that in March 2018, the 55-
member nations of the Africa Union (AU) signed
the African Continental Free Trade Area
(AfCFTA) to create the largest free trade area in
the world – measured by the number of
participating countries.
The AfCFTA was intended to connect 1.3 billion
people across 55 countries with a combined
gross domestic product (GDP) valued at US$3.4
trillion. The agreement was also intended to
promote the movement of capital and natural
persons.
The World Economic Forum (WEF) describes
AfCFTA as a “global game changer” for the
following reasons:
Poverty reduction: The World Bank estimates
that AfCFTA will boost regional income by 7% or
$450 billion, speed up wage growth for women,
and lift 30 million people out of extreme
poverty by 2035.
Many and varied economic outcomes: It is
estimated that the AfCFTA will increase Africa’s
ex p o r t s by $ 5 6 0 b i l l i o n , m o st l y i n
manufacturing. Intra-continental exports
would also increase by 81%, while the increase
to non-African countries would be 19%.
3Promote trade integrity: an opportunity to
promote good governance both globally and
across Africa, through the concept of “Trade
Integrity” to ensure the legitimacy of the global
trading system.
Expected Economic Boost and Trade Diversity.
The United Nations Economic Commission for
Africa (UNECA) estimates that AfCFTA will boost
intra-African trade by 52.3% once import duties
and non-tariff barriers are eliminated.
It will diversify intra-African trade as it would
encourage more industrial goods as opposed to
extractive goods and natural resources.
Historically, more than 75% of African exports
outside of the continent consisted of extractive
commodities whereas only 40% of intra-African
trade were extractive.
Growing Small and Medium-Sized Businesses:
The elimination of import duties will open up
trading activities to small businesses in the
regional markets.
3Encouraging Industrialization: The AfCFTA is
expected to foster competitive manufacturing,
which means Africa’s manufacturing sector will
have the potential to double in size from $500
billion in 2015 to $1 trillion in 2025, creating 14
million stable jobs.
Babasola opined that the oil industry should
take advantage of AfCFTA to foster intra-African
trade and expand the frontiers of Nigerian
content. Operators need to explore the
possibilities through collaboration with
relevant government agencies of which the
NCDMB has a critical role.
The TotalEnergies Executive General Manager
pointed out clearly that the company remains
proudly committed to Nigeria and Nigerian
content and will continue to act in ways that
promote these ideals.
“But it is now time to venture beyond Nigeria
and foster intra-Africa business relations to
consolidate on the gains of Nigerian Content.
Nigeria can earn foreign exchange through the
exportation of local content capacities,
infrastructure and competencies within the
continent of Africa."
37
OIL AND GAS REPUBLIC I SPECIAL EDITION
PETAN Advocates for Extensive Investment in R&D to
Enhance Indigenous Capacity
Petroleum Technology Association
of Nigeria, PETAN, has advocated
for an extensive investment in
research and development to address
capacity barriers that prevent indigenous
companies from meeting the technical
requirements and knowledge to compete
favourably in the Nigerian oil and gas
industry.
PETAN Chairman, Mr. Nicolas Odinuwe,
who was represented by the association's
Conference Chairman, Mr. Chinedu
Maduakoh, said that PETAN is the initiator
of Local Content in Nigeria, and has been
championing the quest for increased local
participation in the Nigerian Oil and Gas
Industry.
He said, "The adoption of the Local
Content Policy as enshrined in the Nigerian
Oil and Gas Industry Content Development
(NOGICD) Act by the Nigerian Content
Development and Monitoring Board
(NCDMB) was commendable, though
more still needs to be done.
LOCAL CONTENT
"Even though some progress has been
recorded in achieving the provisions of the
Local Content Act towards human capital
development and knowledge transfer in
the country, a lot still needs to be done in
areas of aggressive monitoring and
implementation/enforcement by relevant
authorities".
Maduakoh stressed that areas where
Nigerians are to understudy expatriate
personnel in oil and gas service operations
need to be strictly implemented by the
NCDMB to ensure it is carried out as
stipulated in the Local Content Act.
He added that there was also the need to
address capacity barriers that prevent
Chinedu Maduakoh, PETAN's Conference Chairman
Nigerian entities from meeting the technical
requirements and knowledge to compete
favourably in the oil and gas industry.
"There is need for an extensive investment in
Research and Development (R&D) to make the
objective of technology transfer a reality as well
as addressing the gender gaps in the industry.
"PETAN companies and their contractors
employ over 20,000 Nigerians of which over
60% are graduates. This has special domino
effect on the economy through the use of local
inputs, growth of local enterprise and knowhow
which reduce cost and help maintain
standards".
He added that PETAN's massive impact in Nigeria's
Local Content development is evidenced by its over
90 oil and gas service companies offering over
80,000 collateral employment with over 250
technical services including capabilities in Drilling
and Completion, Health, Safety, Security,
Environment and Social Responsibility,
M a n a gement a n d I nfo r m ation, P ro j e c t
Management, Facilities & Construction, Pipeline,
Flowliness & Facilities Production & Operations,
Reservoir Description & Dynamics, Training, Project
Management across the value chain, while not
leaving out linkage sectors such as Catering,
Medical services amongst others.
Oil Accounts for 10 Percent GDP, 86 Percent Export Earnings, says Sylva
Minister of State for Petroleum
Resources, Chief Timipre Sylva, says the
oil and gas sector accounts for about 10
per cent of Nigeria’s Gross Domestic Product
(GDP).
Sylva added that crude oil exports represented
about 86 per cent of total export earnings,
while the actual government revenue from the
sector is 40 per cent.
The minister stated this while delivering the
Graduation Lecture of the National Defense
College Course 29, entitled, “Enhancing Digital
Technology in the Oil and Gas Sector of Nigeria
for National Development” in Abuja.
He said Nigeria, with more than 200 million
inhabitants, remained the most populous
country within the Organisation of Petroleum
Exporting Countries (OPEC).
According to him, the country has proven crude
oil reserves of 37 billion barrels; production
capacity of 2.5 million barrels per day; and
actual crude oil production of about 1.5 million
barrels daily.
“It is the largest crude oil producer in Africa and
holds the largest natural gas reserves on the
continent.
“The country has proven natural gas reserves of
206.53 trillion cubic feet; and average
production of about 7, 575 million standard
cubic feet per day (mmscfd).
Sylva said oil and gas occupied a central place in
Nigeria’s development equation, being a big
producer and marketer of the products.
He said Nigeria, like other oil producing
countries, must continually device imaginative
and sustainable ways of deriving the greatest
value from its oil and gas resources, given the
declining global appetite for fossil fuels, and
price volatility.
38 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
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AMERICAN PETROLEUM INTERVIEW
"API is focusing on using Data to clearly show the
positive role that natural gas plays in reducing GHG
emissions" - Dustin Meyer
Interview by:
Ndubuisi Micheal Obineme
The coal-to-gas fuel-switching that has resulted
from this increased demand has been the
leading driver of emissions reductions in the
country. Over those same 12 years, coal-to-gas
switching in the power sector led to a more than
30% reduction in GHG emissions.
What motivates me and my Natural Gas Market
team are finding ways to export this recipe for
reducing emissions to other countries around
the world, and we believe one of the best ways
to do that now is through LNG.
OGR: What's API strategies to boost LNG
growing role in the transition to a lowercarbon
future?
Meyer: API is focusing on using data to clearly
show the positive role that natural gas plays in
reducing GHG emissions.
Oil and Gas Republic talks to Dustin
Meyer, Vice President for Natural Gas
Market, at American Petroleum Institute
(API), about the growing role of Gas &
LNG in the United States of America.
Dustin Meyer, who previously served as
API's policy advisor on Liquefied Natural
Gas (LNG) and other global issues. He
began his career working with the
National Resources Defense Council
(NRDC) after completing his Bachelor's
degree at Princeton University. He
received his Master's of Environmental
Management from Yale University and
continued his career with IHS Energy as a
senior analyst. He then went to work with
Energy Ventures Analysis as a lead analyst
of global LNG and renewable energy
before joining API.
American Petroleum Institute (API) was
formed in 1919 as a standards-setting
organization. In its first 100 years, API has
developed more than 700 standards to
enhance operational and environmental
safety, efficiency and sustainability.
API represents all segments of America's
oil and natural gas industry. More than
600 members produce, process and
distribute most of the nation's energy. The
industry supports more than ten million
U.S. jobs and is backed by a growing grassroots
movement of millions of Americans. Excerpts:
OGR: What has been your motivation for Gas
& LNG development in the United States?
Meyer: As I’m sure your audience knows, the
shale revolution in the United States is what has
enabled such a significant increase in natural
gas and oil production over the last 15 years.
It allowed a significant amount of dry gas
production in the Marcellus, Permian, and
other areas, but the sharp increase in oil
production led to a lot of associated gas
production, as well.
Over the 12 years between 2006 and 2018,
associated gas production in the United States
went from about 8% of total natural gas
production to 16%, and in the crude oil regions
a s s o c i a t e d g a s s a w e v e n s t r o n g e r
growth—going from 8% to 37% of natural gas
production in these regions.
In the United States, electricity generation has
been the largest source of demand growth for
domestically produced natural gas for the past
decade.
Demand for natural gas in the power sector
increased more than 110% between 2007-
2019, allowing gas to make up about 36% of
total consumption in 2019.
Countries all around the world are thinking
about what their energy futures will look like,
and a lot of the current conversation on the
transition is being driven by aspirations. While
aspirations can give you a sense of what the end
goal may look like, they can’t give you a
roadmap of how to reach it. For something as
complex as the energy transition, a transition
that will touch so many facets of people’s
everyday lives, you need data to help guide you.
Here in the United States, we already have more
than a decade’s worth of evidence showing that
displacing coal in the power sector with a
combination of low-cost natural gas and
increasingly affordable renewable energy is a
winning recipe for rapid and significant
emissions reductions.
It is this trend that has helped the United States
lead the world in emissions reductions over
roughly the last 10 years and it represents
exactly the sort of ‘quick win’ the world needs to
get on a lower emissions trajectory and reduce
the risks of climate change.
Going forward, accelerated deployment of both
wind and solar will certainly play a major role in
driving additional emissions reductions, but
even here, it’s important to emphasize the
essential role natural gas plays in balancing
generation from these variable renewable
energy sources.
40
OIL AND GAS REPUBLIC I SPECIAL EDITION
AMERICAN PETROLEUM INTERVIEW
Similarly, for LNG importing countries, we’re
looking at how coal-to-gas switching in their
power generation and industrial sectors can
reduce their GHG emissions. For example, we
are working on completing life-cycle analyses
(LCA) that take into account emissions across
the whole value chain—from wellhead to
burner tip. We released our GHG emissions LCA
for LNG exports in the power generation sector
last July.
One of the main findings was that using U.S.
LNG rather than coal for electricity generation
produces on average 50.5% fewer GHG
emissions in importing countries ranging from
China, Germany, and India.
We just completed a soon-to-be-released
follow-up report covering the LCA for LNG use
in the industrial sector, and the findings
indicate that coal-to-gas switching in China,
India, and Vietnam could reduce GHG
emissions by 26.5% on average.
This is an important finding given that the
International Energy Agency and many other
entities project that a very sizable percentage
of total global gas demand growth over the
next decade or so will be driven by industrial
demand in India and other Asian markets.
OGR: As an industry expert, what is the
pathway for a successful energy transition?
Meyer: I think there are two important points
to keep in mind. First, there will not be a onesize-fits-all
path for countries to take. Every
country has different considerations to take
into account. For example, what are their
natural resource endowments? Are they
energy importers or exporters? How rapidly is
their economy growing? What’s the state of
energy infrastructure in the country? These
questions and others will influence which
strategy any given country selects in pursuing a
lower-carbon energy future.
Second, while there is no single pathway, it
seems clear that an open-minded, all-of-theabove
approach is going to be particularly
helpful, especially in developing future
technologies that can help drive even deeper
emissions reductions.
One example is carbon capture, utilization, and
storage (CCUS). We see CCUS as a critical
technology that ensures the energy transition
will benefit from the reliability and flexibility of
natural gas, especially as an enabler and
complement to rising variable renewable
energy generation.
Dustin Meyer, Vice President for Natural Gas
Market, at American Petroleum Institute (API)
Hydrogen is another example--including
hydrogen made using natural gas in
combination with CCUS technology.
There’s so much good work and investment
going into these technologies, but we’re just
getting started and it’d be particularly
misguided to sideline any technology that will
help reduce emissions.
But to be clear, a lot of countries don’t
necessarily have the luxury to wait 5-10 years
for new carbon-free technologies to reach a
commercial scale. They need to meet rapidly
rising energy demand today.
So, I believe countries should look at all
available technologies and fuel sources that can
help them meet their emissions reductions
goals while also meeting demand, and I think in
a lot of instances, natural gas is going to be a
great choice to do so.
OGR: What are your opinions for developing
countries to unlocking their natural gas
resources as a viable source of clean energy?
Meyer: One of the biggest benefits that U.S.
LNG exports afford is increased energy security
for our trading partners, but certainly, energy
security can also come from countries
developing their resources.
Either way, in emerging economies, the future
role of natural gas goes far beyond the power
sector. It can play a major role in building out
industrial and manufacturing capacity, which of
course has tremendous economic and
employment benefits.
Increased access to natural gas can also help
reduce mortality from indoor air pollution,
which is estimated to cause 1.6 million
premature deaths worldwide each year
according to the WHO.
Already, the transition from cooking with
traditional biomass to natural gas has
significantly reduced air pollution in China,
India, Indonesia and several other countries. So,
whether the gas is imported or produced
domestically, the opportunity is significant.
OGR: What's your projections for the LNG
industry in 2021 going forward?
Meyer: The top trend to watch in 2021 will be
what happens with natural gas prices. Last
summer saw historically low prices and the
convergence of the major price indices for Asia,
Europe, and the U.S.
Then, at the very end of last year and in the first
weeks of this year, prices spiked to historically
high levels, the result of many factors including
a cold snap in large parts of Northeast Asia.
Since then, prices have of course moderated,
but they are still fairly robust.
This recovery in natural gas prices is significant
because, just a few months ago, those sceptical
of the long-term viability of the U.S. LNG
industry pointed to very low summer prices as
validation of their doubts—not just about LNG,
but about future demand for natural gas more
generally. But the tightening market has quickly
quieted that argument.
Going forward, robust prices could very well
lead to a re-emergence of contracting to
underpin the new export capacity that will
surely be required to meet rising long-term
demand and in fact, this coincides with a lot of
countries building out their gas import, storage,
and distribution infrastructure.
The combination of these two developments,
the recovery in gas prices and a re-emergence
of interest in contracting, could help push some
U.S. exporters that had delayed FID from 2020
over the line and in a position to make FID this
year, which would be great to see.
41
OIL AND GAS REPUBLIC I SPECIAL EDITION
WOMEN IN ENERGY INTERVIEW
Dolapo Kukoyi
"With the Proper
Contractual, Supportive
Regulatory Framework,
Project like EGINA can
be Replicated" - Dolapo
Kukoyi, Partner, Detail
Solicitors
Oil and Gas Republic talks to Dolapo Kukoyi, Partner
at Detail Solicitors, regarding her exper se and legal
services in the Nigerian oil and gas industry. In this
interview, she outlined the key pillars of developing a
business model for energy infrastructure projects just
like the EGINA project where her company was the
legal adviser in nego a ng the $350 million Joint
Venture between LADOL FZE and Samsung.
OGR: Please briefly tell us about your
career background and work at Detail
Solicitors?
Dolapo: My name is Dolapo Kukoyi and my
background is in law specifically corporate
commercial law.
I also serve as the Legal Adviser of the
Nigerian Gas Association.
I am essentially a transactions lawyer who
does work in the Energy, Infrastructure and
Power sectors providing advisory on day to
day corporate commercial and regulatory
issues to mergers and acquisitions, project
development and project finance. I have
done this for over 16 years and have been a
Partner for over 9 years all at DETAIL.
DETAIL is distinct as Nigeria’s first
commercial solicitor firm to specialize
exclusively in non-court room practice.
DETAIL’s Energy, Infrastructure & Power
practice covers Oil & Gas, Infrastructure,
Public Private Partnerships (PPP), Power
and Gas to Power.
DETAIL has a vibrant Oil & Gas practice and
has developed in-depth and practical
knowledge of the sector, a full
understanding of the legal and regulatory
framework, as well as the rudiments of
optimal risk allocation in the sector. The
firm has advised on various leading and
innovative Oil & Gas transactions in
Nigeria. Awarded best PPP Law Firm,
Nigeria, 2013 by World Finance and highly
ranked for its Infrastructure practice in
IFLR1000, the firm has developed in-depth and
practical knowledge of PPPs and has a full
understanding of the legal and regulatory
framework for PPPs at the federal and state
government levels as well as the rudiments of
optimal risk allocation.
OGR: What's DETAIL recent progress to
increasing its business portfolio in the Nigerian
energy, oil, gas industry?
Dolapo: We advice a variety of clients across
the oil, gas and power space and it cuts across
clients in exploration and production, clients
exploring investing in existing oil and gas
exploration and producing entities and assests,
existing operational companies in the gas
supply and distribution space, oil and gas
logistics and oil and gas services space including
advising on investments in such entities as well
as advising financial institutions and lenders.
DETAIL as a firm is also keenly interested in
thought leadership in the sectors that we
function in and lending our voices as part of the
business and investment community to
ensuring reforms in the respective sectors. We
do this through publications, articles,
participating in industry events and
conferences and also playing relevant roles in
industry associations.
We are the Bidder’s Counsel for acquisition of
participating interest in OML 29 and Nembe
Creek Trunkline: We advised Aiteo Eastern E&P
Company Ltd in its successful bid process for
Shell’s OML 29.
Interview by: Ifeoma Ofole,
Ndubuisi Micheal Obineme
Crestar’s $453 million successful bid for
acquisition of Shell’s OML 25: We acted for
James Bay Energy Resources (a Canadian
quoted company) as majority consortium
participant in its bid for acquisition of OML 25.
We also acted for James Bay Energy Resources
in relation to African Finance Corporation’s bid
to acquire a participating interest in Shell’s OML
25.
Marginal Field Acquisition: We are the legal
adviser for Oryx Petroleum Limited, Geneva, in
its proposed acquisition of an interest in a
marginal field.
Development of a Liquified Petroleum Gas
(LPG) Storage Facility: We are advising Falcon
Corporation on the development of a 4,000MT
LPG storage facility and a jetty in Port Harcourt,
Rivers State.
Pre-Bid Support for Oil & Gas Asset Acquisition
and Financing: DETAIL advised RussellSmith, an
indigenous integrated oilfield services, on prebid
support services for the bid, financing,
development and operation of a marginal field.
We advised West African Gas Pipeline Company
on the Pipeline Right of Way Co-location
Agreement with a Telecoms Company.
Natural Gas Procurement: We advised
Honeywell Group Ltd on the procurement of
44
OIL AND GAS REPUBLIC I SPECIAL EDITION
WOMEN IN ENERGY INTERVIEW
natural gas for its facilities in Cross River State.
Liquefied Natural Gas Sale and Purchase
Agreement: We advised LADOL FZE on
Liquefied Natural Gas Sale and Purchase
Agreement for its Gas to Power Plant under
development.
DETAILS is the Transaction Legal Advisers to the
Central Bank of Nigeria for the Nigeria
Electricity Market Stabilization Facility of $1.3
billion aimed at settling outstanding payments
due to market participants and service
providers and legacy gas debts owed to gas
suppliers.
We advising Lagos State Government on the
Light Up Lagos project to facilitate the delivery
of 3000MW to Lagos State through embedded
power generation and advised in drafting the
Lagos State Electric Power Sector Reform Law
(2018) as part of the Light Up Lagos project.
We advising LADOL Integrated Logistics on its
development of a 24-48MW Gas to Power
Plant for the distribution of power within the
LADOL Free Zone through an isolated urban
Off-Grid Independent Electricity Distribution
Network.
We advising Waltersmith Gas Company Ltd in
developing a 40-30MW Gas to Power Plant.
A d v i s i n g o n t h e p ro j e c t st r u c t u re ,
development and financing, preparing project
documents and liaising with relevant
government agencies.
EGINA Project Equity & Joint Venture
Structuring: We acted for LADOL FZE in
negotiating a $350 million JV with Samsung in
relation to Total’s first in-country fabrication
and integration of an FPSO for EGINA.
OGR: Do you see the success of DETAIL in
negotiating the EGINA FPSO's $350 million JV
between LADOL FZE and Samsung as a model
to be replicated elsewhere?
Dolapo: Most definitely. I think it shows that
with the proper contractual framework and
supportive regulatory framework in place,
projects like Egina can be replicated.
OGR: Regarding Detail's expertise in
Infrastructure & Public-Private Partnerships
(PPP) in Nigeria's major industries; What's
your perspective on developing a business
model to attract investment in energy
infrastructure projects in the country?
Dolapo: Energy Infrastructure Projects by their
nature are capital intensive and require long
term funding. They would therefore require
certain key pillars for business models to work
in the context of PPPs and they include:
3Having well structured projects and project
developers with a track record and proper
corporate structure.
Dolapo Kukoyi, Partner Detail Solicitors
3Credible off takers or buyers of the product or
service
3Cost reflective tarriffs or pricing framework
that ensure a reasonable return on investment
3Contractual framework that is resilient,
ensures proper risk allocation and mitigation
3On the part of government a clear and an
enabling legal and regulatory environment that
provides some ease and support for doing
business for investors.
OGR: What's the key factors hindering the
signing of Final Investment Decisions (FIDs) on
projects in Nigeria's energy sector?
Dolapo: I would say the opposite of some of the
issues raised above and a few more as listed
below:
3A lack of well structured projects and project
developers with a track record and proper
corporate structure
3Lack of credible offtakers or buyers of the
product or service
3A lack of cost reflective tarriffs or pricing
framework that ensure a reasonable return on
investment.
3A lack of a contractual framework that is
resilient, ensures proper risk allocation and
mitigation
3An unclear and an uncertain legal and
regulatory environment that provides some
ease and support for doing business for
investors.
3Inability to repatriate and convert foreign
capital (foreign exchange risk)
3Country risk which include more recently and
more apparent security risks .
Whilst some of the risks mentioned could be
within the control of investors. Investors would
be hesitant to reach final investment decisions
when they are risks that are out of their control.
Key principle for risk allocation is that parties
should be allocated risks that they are best able
to bear otherwise it affects the viability and
economics of the project.
OGR: What's your opinion on providing a one
time solution to the issues?
Dolapo: I don’t think there are actually one
time solutions to these issues. Whilst some
need to be resolved on the private side, some
need to be resolved by government. Both sides
need to make concerted efforts to do what they
need to do to ensure that the issues are
resolved, the regulatory and legal environment
is more investor friendly, project developers
need to pay more attention to developing
better structured projects so they can attract
the funding required. Advisers on the legal,
technical and financial aspects also need to do
their part to improve on deal flow, innovation
and risk mitigation on these projects. Funders
and Investors also need to be more flexible and
innovative. Most importantly all stakeholders
must continue to engage.
OGR: How has been your recent engagement
in renewable energy development across
Nigeria?
Dolapo: Its been very interesting. We have
worked with different players in the renewable
energy space from project developers like Cross
Boundary, Renewvia, Empower, Daystar who
are doing a lot in the Renewable Off grid and
mini grid space, to development financial
instituitions like the GIZ under their Nigeria
Energy Support Program who we have done a
lot with in the renewables space for mini grids,
to embedded generation to franchising.
We also work with FCDO under its Africa Clean
Energy Technical Assistance Facility supporting
states on Off grid solar.
Personally, I have served on the board of the
Renewable Energy Access Network (REAN)
Advisory Board and currently serve on the
Advisory Board of Kowry Energy a subsidiary of
Rolls Royce providing services to project
developers across Africa.
A lot of these engagements are impactful for us
and our clients as they help with increasing
access to energy across the country (Nigeria),
states and communities. The challenges still
remain some of the issues around having
sustainable business models in the energy
sector as discussed above.
OGR: Are you involved in any project on Energy
Transition?
Dolapo: I serve on the Sustainability
Commission of the Nigeria Economic Summit
Group where i lead the Thematic Group on
Climate Change, NDCs and Green Economy.
A lot of our engagements described above are
in the journey to energy transition. We are also
advising on gas projects which we think is the
fuel of the future in this part of the world.
45
OIL AND GAS REPUBLIC I SPECIAL EDITION
PHOTO STORIES
Managing Director, Ansett Nigeria Ltd, Mrs Edith Akwaeke receiving her Women
in Energy, Oil and Gas (WEOG) Shero Award of Excellence
DPR Visits Petroleum Technology Association of Nigeria (PETAN) member companies
at the SPE NAICE 2021 held in Eko Hotel, Lagos - Nigeria
WOMEN IN ENERGY
Team SIMO Emerged Winner of ‘Big Idea Energy Challenge’
at SPE NAICE 2021
Team SIMO emerged
winner of "Big Idea Energy
Challenge" during the
Young Professionals
Workshop at the SPE NAICE
2021.
The theme of the challenge
was 'Energy and the
Challenge of
Sustainability".
Participants of the
challenge were required to
send in video entries
explaining its sustainability
ideas.
Team SIMO's innovative
idea was titled:
"Empowering Host
Communities by Reducing
Gas Flaring".
The top 3 ideas were
selected to make
presentation at the SPE's
Young Professionals event.
Team SIMO was shortlisted
among the top 3.
Based on the votes count
from the particpants, Team
SIMO got the highest votes
and was emerged as the
winner at SPE NAICE 2021.
Congrats Team SIMO!
Team SIMO and SPE Nigeria Council Chairman at the SPE NAICE 2021 - Eko Hotel, Lagos
47
OIL AND GAS REPUBLIC I SPECIAL EDITION
WOMEN IN ENERGY
Shell Boost Support for Women in Energy, Appoints Elohor
Aiboni as First Female MD for SNEPCO
Shell, a British-Dutch multinational
oil and gas, has announced the
appointment of Mrs Elohor Aiboni,
as its first Managing Director (MD) of its
Nigeria deep-water business, Shell Nigeria
Exploration and Production Company
Limited (SNEPCO).
By Genevieve Aningo
Mr Bamidele Odugbesan, the Media
Relations Manager, Shell Petroleum
Development Company of Nigeria (SPDC),
made this known in a statement, made
known to Oil and Gas Republic.
The development is coming on the heels of
t h e o i l a n d g a s f i r m ’s r e c e n t
announcement that it was divesting from
its onshore and shallow waters operations
to concentrate on deep offshore business.
Odugbesan said that Elohor was the first
female to lead the Shell exploration
company in the more than six decades of
Shell’s operations in Nigeria.
She succeeds Bayo Ojulari, who retired on
July 31, after five years as SNEPCo’s MD,
having served the Shell group for more
than 30 years.
Until her new appointment, Aiboni was the
Bonga Asset Manager responsible for
overseeing end-to-end production
delivery for Nigeria’s pioneer deep-water
Floating Production, Storage and
Offloading (FPSO) vessel, Bonga, which
had produced over 900 million barrels of
oil since the beginning of its operations in
2005.
in production operations; project and asset
management; operations readiness and
assurance.
“She was at a time the Business Adviser to the
Executive Vice President for Shell Sub-Saharan
Africa, and had also managed third-party
interface across several Shell assets in Nigeria
and Kazakhstan.
“Prior to her role as Bonga Asset Manager,
Elohor led production delivery for shallow
offshore as Asset Manager for Sea Eagle FPSO in
Nigeria’s Niger Delta.
“Elohor holds a master’s degree in Integrated
Environmental Management from the
MANAGING DIRECTOR
SHELL NIGERIA EXPLORATION
AND PRODUCTION
COMPANY (SNEPCO)
University of Bath, UK, and a bachelor’s degree in
Chemical Engineering from the University of Benin,
Nigeria.
“She is passionate about developing talent and
leads a diverse team that strives to simplify work
processes and pursue continuous improvements.
“Her leadership of the Bonga team had seen the
asset receive numerous awards, including the CEO
HSSE Awards, Upstream Impact Award, and the
Asset of the Year Runner up in 2019, in the Shell
Group,” Odugbesan said.
Her interests include watching football, lawn tennis,
listening to soothing music and travelling.
“Elohor’s appointment is a product of
diligence, competence and commitment
to the Shell ideals and core values, amidst
our strong focus on diversity and inclusion.
“We take pride in our intention of being
one of the most diverse and inclusive
organisations in the world, and focus on
further improving inclusion and
representation in critical areas, including
gender,” the statement quoted Marno de
Jong, Shell’s Senior Vice President for
Nigeria as saying.
Odugbesan also said that Elohor now joins
over 300 women in senior leadership
positions in the Shell Group, representing
more than 31 per cent of the company’s
executive positions.
“Her 19-year career in Shell has seen her
move from a field engineer to several roles
SAIPEC Women in Energy Programme Drives
Africa's Gender Equality
T
he Sub-Saharan Africa International Petroleum
Exhibition and Conference, SAIPEC, Women in
Energy Programme are pushing for gender
equality in the African energy, oil, gas industry.
SAIPEC is the region's largest oil and gas event, hosted
by the Petroleum Technology Association of Nigeria.
The event features over 80 industry leaders and global
experts on an insightful programme which was held
alongside the sold-out exhibition with over 111
companies showcasing their products and services and
generating meetings with thousands of invested
industry professionals.
According to the report, women in energy represents a
minimal role in the African energy, oil, gas industry,
accounting for just 21% of the overall workforce in the
sector.
In a report, World Economic Forum (WEF)
highlighted that women continue to remain
underrepresented among STEM graduates, where
the global gender gap stands at 47% with 30% of
male students graduating from STEM subjects in
contrast to only 16% of female students.
SAIPEC 2022 aims to harness these challenges and
position women at the forefront of the Sub-Saharan
Africa energy development agenda. SAIPEC will be
bringing together industry speakers from both the
government and private sector and will drive
discussion on increasing women’s participation by
pointing out the major issues surrounding gender
equality.
SAIPEC’s Women in Industry provides a unique
platform for some of the finest minds of the oil and
gas industry to convene and connect and put
forward solutions towards building a diverse and
inclusive oil and gas industry.
48 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
SNEPCO’s ‘DIGITAL TWIN’: A Structural
Model For FPSO Digitalisation, Local Cotent
Opportunities in Nigeria’s Deepwater Operation
A
digital twin is a virtual representation of a physical object, assets,
process or service. The digital twin technology can be used to replicate
processes to collect data to predict how they will perform. This concept
was originated from NASA in an attempt to improve the physical model
simulation of spacecraft in 2010.
According to Wikipedia analysis, Digital twins were anticipated by David
Gelernter's 1991 book known as 'Mirror Worlds'. It is widely acknowledged in
both industry and academic publications that Michael Grieves of the Florida
Institute of Technology first applied the digital twin concept in manufacturing.
The concept and model of the digital twin were publicly introduced in 2002 by
Grieves, then of the University of Michigan, at a Society of Manufacturing
Engineers conference in Troy, Michigan. Grieves proposed the digital twin as
the conceptual model underlying product lifecycle management (PLM).
By Ndubuisi Micheal Obineme
Facts about SNEPCO’s Bonga FPSO
Ø Bonga is Nigeria’s first deep-water project.
Ø It created the first generation of Nigerian oil
and gas engineers
Ø It increased Nigeria’s oil capacity by 10%.
Going forward, the offshore energy industry has embraced the digital twin
technology to enhance efficiency and safety, reduce maintenance and
operating costs, and support asset life extension. Industry experts have said
that the 'Digital Twin' allows operators to obtain greater insights to improve
inspection, maintenance, and repair (IMR).
This article focuses on the deployment of digital twin technology at the Shell
Nigeria Exploration and Production Company’s (SNEPCO) Bonga floating,
production, storage, offloading (FPSO) vessel which is leading the way to
digitalising Nigeria's deepwater operation; highlighting the local content
opportunities this could provide to indigenous service companies who are
offering engineering and technological solutions in the Nigerian oil and gas
industry.
The Bonga project, which began producing oil and gas in 2005, was Nigeria’s
first deep-water development project. The Bonga project helped create the
first generation of Nigerian oil and gas engineers with deep water experience
and stimulated the growth of major industries.
The project increased Nigeria’s oil capacity by 10% when output began in 2005.
Oil from the Bonga North West sub-sea facilities is transported by a new
undersea pipeline to the existing Bonga floating production, storage and
offloading (FPSO) export facility.
49
Ø Bonga FPSO can produce 225,000 barrels of
oil and 150 million standard cubic feet of gas
per day.
Ø During the COVID-19 pandemic, Akselos
deployed a structural digital twin on the Bonga
FPSO to enhance production.
Ø SNEPCO’s digital twin is leading the way to
digitalising Nigeria’s deepwater operation.
Ø Akselos digital twin for SNEPCO has been
selected as one of the most promising World
Economic Forum Technology Pioneers 2020.
Ø SNEPCO is keen to support indigenous
companies to develop a ‘Made in Nigeria
Digital Twin’
OIL AND GAS REPUBLIC I SPECIAL EDITION
TOP STORY
SNEPCO expanded the project with further
drilling of wells in Bonga Phases 2 and 3 and
through a subsea tie-back that unlocked the
nearby Bonga North West field in August 2014.
Bonga Phase 3 achieved its first oil in October
2015. The Bonga FPSO can produce 225,000
barrels of oil and 150 million standard cubic
feet of gas per day.
In March 2017, SNEPCO commenced the 4th
turnaround maintenance on the Bonga FPSO.
Production from the field was shut down and
resumed the following month.
The company explained that the maintenance
exercise help ensure sustained production and
reduced unscheduled production deferments.
The maintenance involves inspections,
recertification, testing and repair of equipment
as well as engineering upgrades with Nigerian
companies and subsea professionals playing
key roles.
Interestingly, some of the features of an FPSO
digital twin technology includes inspection
capabilities, digital analytics and modelling to
enable monitoring of the asset’s hull structure
during operation without having to rely on
costly routine inspections. DIGITAL TWIN
SAVES COST!
Based on our findings, a digital twin for FPSO is
a virtual replica of the physical FPSO that detect
technical problems, provides and analyze
fatigue in the hull of the FPSO to optimize the
vessel’s structural safety and support riskbased
inspection (RBI).
In a report, DNV GL, a Norwegian company
specialised in assurance and risk management,
has affirmed that the digital twin can be used in
real-time to monitor the FPSO’s condition,
identify and monitor high-risk locations, and
plan cost-efficient maintenance and inspection
accordingly.
A new report shows that the digital twin
technology uses numerical design models and
data from actively recorded strain gauge
sensors onboard the vessel that is said to
provide a full understanding of the
accumulative loading and current state of the
physical FPSO structure.
Francois-Xavier Sireta, technical lead for naval
architecture and principal engineer, DNV GL –
Oil & Gas, said:
“Digital twin can potentially
save millions by avoiding
the costly and possibly
catastrophic repercussions
of ill-informed integrity
management by preempting
and preventing
detrimental damage.
50
SNEPCO’s Digital Twin FPSO
Francois-Xavier
Sireta
“For an asset operating in a harsh environment,
where the loads play an important part in the
possible degradations…, using data from the
site as a basis for optimized inspection
planning, alarms for extreme events, and asset
suitability for life extension is crucial.”
While some experts have said that digital twin
technology can cut offshore decommissioning
costs by 9 - 15%. They noted that it could save
operators millions of dollars on project costs for
platforms ranging from topsides and jacket
removal to subsea infrastructure, facilities ‘deenergizing,
operator costs, onshore recycling
and site remediation and monitoring among
others.
Another report shows that offshore facilities
with topsides of 10,000 - 40,000 metric tons can
benefit from the digital twin to cut
decommissioning costs, and FPSO operations
through to decommissioning phases.
As part of SNEPCO's commitment to enhance
production in the Bonga oil field, the company
deployed a structural digital twin on the Bonga
FPSO in September 2020, during the COVID-19
pandemic.
The digital twin was designed and developed by
Akselos, a Swiss company and creator of the
world’s most advanced engineering simulation
technology, who also provides an engineering
simulation platform based on reduced-basis
finite-element analysis.
The platform is used to create digital twins of
energy infrastructures to improve their design,
maintenance, reliability and lifetime.
Akselos had successfully deployed the Digital
Twin for Shell’s Bonga Main FPSO, located
120km Southwest of the Niger Delta in Nigeria.
The Digital Twin is a physics-based model of the
asset, which represents its entire physical
counterpart in absolute detail and accuracy.
The model is updated with loading conditions
and inspection data regularly, providing the
ability to carry out structural assessments
based on the ‘as is’ condition, from anywhere
and at any time.
The structural Digital Twin, which is based on
Akselos’ patented RB-FEA technology, was
selected by Shell Nigeria Exploration and
Production Company (SNEPCo), Shell’s
deepwater company in Nigeria, because of its
unique ability to realise several operational
objectives. These include the identification of
critical areas for prioritised inspection,
maintenance and repair; a reduction in
personnel onboard the asset; reduced
necessity for physical inspections in hard-toreach
areas such as cargo tanks; and to support
scenario planning for extreme weather events
and asset modification.
The deployment of the breakthrough
simulation technology will also enable safe
asset life extension by replacing the overconservative
estimates made with conventional
s i m u l ation s o f t wa re , w i t h a c c u rate
assessments that reflect actual remaining
fatigue life.
Osagie Okunbor, Country Chair of Shell
Companies in Nigeria commented, "It was a
year when COVID-19 ravaged the global
economy and changed all our lives. I’m proud of
the contribution Shell Companies in Nigeria
OIL AND GAS REPUBLIC I SPECIAL EDITION
DEVELOPED BY:
TOP STORY
were able to make. I am immensely proud of
the Shell Companies in Nigeria. The
contribution we make to this country is
outstanding. Not only in terms of the tax
revenue we generate for the nation but also in
terms of what we are achieving when it comes
to developing gas and increasing access to
energy for Nigerians.
Elohor Aiboni, Managing Director for SNEPCO,
said,
“The Bonga Main FPSO
heralded several innovative
‘firsts’ when it was built
back in 2004, so it’s fitting
that it’s the first asset of its
kind to deploy something
as advanced as a structural
Digital Twin.
We are very excited about the new capabilities
that Akselos brings and believe it will create a
positive impact on the way we manage
structural integrity. It is also a great example of
digitalisation coming to life.
“Our operational availability is on track. Our
safety record is good and we’re in control of
costs. We’ve got to ensure that our operational
availability remains high and that we stay
efficient and safe.
“The magic starts when you empower people.
My teams know the asset better than anyone,
so we ask them to speak up. We train across
multiple disciplines and use digital tools to
improve productivity. We keep safe by creating
‘family units’ that look after each other and
celebrate success.
“The Bonga field is prolific and we see a future.
It’s professionally satisfying to know that we
have the technology to get through our drilling
campaigns and our cost journey. With the right
investment climate, there could be more oil
and gas discoveries and the potential to expand
and create jobs and opportunities for people.
“We are very excited about the new
capabilities that akselos brings and believe it
will create a positive impact on the way we
manage structural integrity. akselos is a great
example of digitalisation coming to life".
Dr David Knezevic, CTO and Co-Founder of
Akselos said: “We are very proud to have
reached this important milestone, which
represents many months of complex
engineering work between SNEPCo and
Akselos.
“To have the opportunity to deploy our
breakthrough technology on a 300,000-tonne
asset is the kind of technical challenge that
“
Akselos was founded to solve.
Dr David Knezevic
I’d like to thank the
SNEPCo team and the
wider team within Shell
for sharing our vision and
for their commitment to
digital transformation.”
The Bonga Main FPSO, which became
operational in 2004, has a capacity of 225,000
barrels per day and weighs over 300,000
tonnes, making it the largest asset in the world
to be protected by a structural Digital Twin.
Shell has been working with Akselos since its
technology scouts were introduced to the
company as a start-up, as part of the MIT
Industrial Liaison programme in 2015. Since
then, the integrated energy company has
supported Akselos’ technology deployment on
many of its assets and become a minority
shareholder through its venture capital arm
Shell Ventures. The partnership has played an
important role in Akselos’ development to
become an international scale-up operating
across the energy sector.
SNEPCO's Bonga FPSO is becoming the largest
asset in the world to be protected by a
structural Digital Twin.
Elohor Aiboni, Managing Director
for SNEPCO
The SNEPCO's digital twin, developed by
Akselos, has gained recognition at the World
Economic Forum following Akselos innovative
approach to developing such technology that is
shaping the global energy industry. Akselos has
been listed among hundreds of companies as
one of the World Economic Forum’s
“Technology Pioneers”.
The World Economic Forum selected Akselos as
one of the most promising Technology Pioneers
of 2020, who are shaping major industries
including the energy sector among others.
Akselos, the creator of the world’s most
advanced engineering simulation technology,
the Digital Twin, made it to the selection for its
contributions to the energy industry.
Akselos’ Thomas Leurent said, “It’s very
humbling to be acknowledged as a technology
pioneer by the World Economic Forum. It’s an
accolade that confirms our technology is a
gamechanger, and that it can be used with great
purpose – to accelerate the energy transition.
Using breakthrough algorithms licenced from
MIT, our software will help make sure the next
generation of renewable energy assets are
designed and deployed at the speed and scale
required for the energy transition, as well as
being economically sustainable. We look
forward to working with fellow pioneers and
contributing to the Forum’s critical
conversations.”
Local Content Opportunities:
The SNEPCO digital twin stands as an
opportunity for indigenous companies to come
up with an innovative concept to develop a
replica of 'Made in Nigeria Digital Twin'
technology that will enhance deepwater
operation more efficiently - which is already
making a positive impact in the global offshore
energy industry.
At the fifth edition of the Sub-Saharan African
International Petroleum Exhibition and
Conference (SAIPEC) 2021, SNEPCO showcased
the digital twin technology at the event, which
is now enhancing the company's operation on
51
OIL AND GAS REPUBLIC I SPECIAL EDITION
TOP STORY
the Bonga Floating production storage and
offloading (FPSO) vessel, offshore Nigeria.
In an exclusive interview at the sideline of
SAIPEC 2021, Bayo Ojulari, SNEPCO’s former
Managing Director, said the Digital Twin is a
new technology that can be used to virtually
identify critical areas for prioritised inspection,
maintenance and repair, reducing the need
and frequency on safety exposures associated
with physical inspections.
In his words, “SNEPCO's 'Digital Twin' is the
headline at SAIPEC.
Bayo Ojulari
“
There is a quick win to get
a Nigerian company to do
another digital twin for
SNEPCo, to open
opportunities. It is key if
we support a company to
build capabilities around
digital twin".
Shell Companies in Nigeria (SCiN) has been a
pioneer to SAIPEC since the inception of the
event in 2017. SCiN has been contributing to
the development of the Nigerian business
sector by contracting local companies.
So far, SNEPCO has awarded major engineering
and construction contracts to indigenous
companies, have local staff, or possess
domestic capabilities in the country. These
companies were involved in the installation of
new production manifolds, subsea umbilical
systems, oil production and water injection
flowlines.
Take the Bonga FPSO, for example. During the
COVID-19 lockdown, it wasn’t possible to send
equipment overseas for maintenance and yet a
crucial compressor required an overhaul.
SNEPCO said, “We identified a local company
and we worked with them. We got it done and
we will continue to build local capacity as much
as possible.”
Adam Bradley, Bonga South West Aparo
Manager noted, “There is a much stronger
ambition now to build Nigerian capability.
“
Shell Photostory at SAIPEC
Adam Bradley
Creating investment
stability with enabling
terms and lease
extension will spark a
renaissance for the
Nigerian deep-water
oil and gas industry.
“We need to continue having rational,
professional discussions with the government,
stakeholders about developing local
businesses. The more projects we get, the
better it is for developing capability. It’s like with
anything, the more you practice the better you
get. Contracting transparency and ethics is
essential.
“I’m optimistic. The talent, understanding and
eagerness to deliver a project like Bonga South
West Aparo are here. If we collectively get the
enablers right, it will bring back the activity and
growth beyond what we’ve previously seen in
Nigeria".
Engr Simbi Wabote
Taking an overview of the Nigerian oil and gas
industry milestones, the country is wellpositioned
to become West Africa FPSO Yard
due to the vast numbers of indeginous
capabilities and capacities such as engineering
and technology service providers, quay lengths
& capacity, draft, heavy load platform, concrete
yard for topsides and hull apportionment
laydown to handle FPSO construction among
others.
Till date, Shell Companies in Nigeria is creating
massive jobs by investing in large energy
projects, awarding contracts to Nigerian
businesses and employing, training and
empowering Nigerians across its businesses.
Shell is building talent, across all its business
port folio, especially, in natural gas and deepwater
exploration. The company strongly
believe that its investments will enrich many
areas of the country for the future.
SNEPCO is keen to support indigenous
companies to develop a digital twin technology
for its deepwater operation among others.
The Bonga project is operated by SNEPCo,
which holds a 55% stake. The other project
partners are Esso Exploration & Production
Nigeria (Deepwater) Limited (20%), Total E&P
Nigeria Limited (12.5%) and Nigerian Agip
Exploration Limited (12.5%) under a Production
Sharing Contract with the Nigerian National
Petroleum Corporation.
Today, nearly one-third of Nigeria’s deep-water
production comes from the Bonga and Erha
fields.
52
OIL AND GAS REPUBLIC I SPECIAL EDITION
TRANSFORMATIONAL DIGITAL TWIN TECHNOLOGY
FOR BEST-IN-CLASS STRUCTURAL
INTEGRITY MANAGEMENT THROUGHOUT
ALL PHASES OF FPSO LIFECYCLE
www.akselos.com
CPV INTERVIEW
"We are Working on New Business Model for the Recovery
of Venezuela's Economic Activities" - Reinaldo Quintero,
CPV's President
Oil and Gas Republic talks to Reinaldo
Quintero, President of the Venezuela
Chamber of Petroleum (CPV), on the
Chamber's action plan to Harnessing
Venezuela Hydrocarbon Resources for
Economic Transformation.
Quintero: No doubt we can move forward. We are
not starting from zero. After 105 years of
experience and the largest reserves on the planet, it
needed a social consensus towards the economy. It
is clear that politics are holding the development of
this new start, but I’m sure we will solve it if we
include the stakeholders and the best interests of
our society.
Interview by: Ndubuisi Micheal Obineme
OGR: Please tell us about yourself?
Quintero: I am a materials engineer with a
master's degree in mechanical engineering
and more than 37 years of experience in
the oil and gas industry. I started my
professional career in Ferrum, where I
worked in several managing positions. In
1993, I funded Argos, dedicated to
technical services in physical assets
m a n a g e m e n t , g e o m a t i c s ,
telecommunications and process
automation.
I have developed projects for PDVSA Gas,
PDVSA E&P, and several Joint Ventures. I
have also worked in the petrochemical
complex Ana Maria Campos and Morón,
and in Edelca Guri. As well as in all the local
refineries in Venezuela and the ones
located in Aruba and Curazao.
Through my company, I have developed
projects financed by multilateral
organizations.
In the gremial area, in 2010, I became
President of the Chapter Carabobo of the
Cámara Petrolera de Venezuela. Later I
joined the National Board of Directors,
where I practised as Director and Vice
President.
Since 2018, I am the President of the
organization. In 2020, I was re-elected for a
second period.
OGR: Following years of crisis in
Venezuela, what steps should be taken to
improve the country's business
environment?
Quintero: The first steps to improve the
business environment in the country
would include rebuilding confidence and
credibility. It is also important to think out
of the political box, so the economy can be
the priority. This can be achieved if we
reach a consensus towards the priorities of
the economic needs of the country.
Reinaldo Quintero, President of the Venezuelan
Chamber of Petroleum
OGR: Over the years, Venezuela has had the
largest oil reserves in the world of about 304
billion barrels - accounting for 17.5% of global
hydrocarbon resources. What role is the
Venezuelan Chamber of Petroleum playing
towards harnessing these resources for
economic transformation?
Quintero: For the last 3 years, we have been
presenting proposals to the public sector and
the nation, through a portfolio with projects
and alternative business models, to work along
the whole hydrocarbons value chain, under a
competitive approach and in a transparent
environment.
Those projects have been prioritized according
to the need of increasing the oil output to our
historical average of 1.5 million barrels per day.
Aiming the 3 million goals in the close future (3
to 5 years).
Our proposal also included midstream and
downstream projects, such as the recovery of
the refining capacity to its 40% and some of the
petrochemical processes, like the production of
fertilizers, and plastics raw materials.
To develop this plan, it is necessary to recover
the gas supply. Therefore, we will need to stop
flaring the gas, mainly in North Monagas and
Maracaibo Lake, and enforce the existing gas
licenses with the key players.
Our role is to promote and develop the
conditions to activate the huge base of
resources we have as a nation and move
forward with the implementation of the
existing projects.
OGR: Are you optimistic about the future of
the Venezuelan energy sector despite recent
declines in oil production?
The latest opportunities are focused on the opening
to new business models with the private sector as
key players.
OGR: What's the strength and capacities of the
CPV in the international market?
Quintero: We have a strong experience and
accumulated substantial capabilities developed
during the 105 years of the industry in Venezuela
and the 43 years as a Chamber.
Most of our associates have developed careers and
projects around the world, including not only the
region but North America, Asia, Africa, Middle East
and Europe.
OGR: What has the CPV achieved over the past
years?
Quintero: From the beginning of the industry, we
have played a key role as national content along
with the public sector (PDVSA), working and
building the infrastructure and creating through our
products and services the local resources to sustain
all the processes of the industry, not only as physical
assets but also with human resources.
We have 383 companies affiliated with the
Venezuelan Chamber of Petroleum that work in the
following sub-sectors: manufacturers, suppliers,
construction, engineering and integrated services,
technical and technological services, operators,
well services and associated services.
As the organization that groups the private
companies of the oil sector in Venezuela, We have
been working on new business models to achieve
the recovery of our main economic activity and the
progress of our country.
54
OIL AND GAS REPUBLIC I SPECIAL EDITION
Africa Oil Corp
SPE NAICE 2021:
TotalEnergies
Announces New
Investment Focus
for its Energy
Transition
Strategies
Mike Sangster, Managing Director
TotalEnergies E&P Nigeria Ltd
TotalEnergies, a broad energy
company, has announced a new
investment focus for its Energy
Transition action plan to lead the global
energy sector towards affordable and clean
energy.
The Managing Director TotalEnergies
Exploration and Production, Nigeria Limited,
Mike Sangster, made this known while
speaking at the 2021 SPE NAICE, in Lagos.
Sangster’s speech which was delivered by
the TotalEnergies, Deputy Managing
Director, Deepwater, Mr Victor Bandele, said
that the company’s production, marketing
and sales will be evolving, and by 2030 gas
will take 50 per cent in the production
process with oil, biofuels accounting for 35
per cent, 15 per cent of electricity, mostly
renewable energy.
He said the decade (2020-2030) will be a
decade of change for TotalEnergies as it
transforms into a broad energy company.
"By 2050, the mix will be 40 per cent
renewable power, 40 per cent gas and 20 per
cent liquid products, said Sangster.
“We have a broad and diversified portfolio in
Nigeria, with operations in the upstream,
midstream, and downstream sectors of the
oil and gas industry.
“Our activities span onshore, conventional
offshore, deep water, LNG and in the
downstream, we operate over 577 service
stations across the nation. We are, indeed,
committed to a lasting partnership with
Nigeria.” Sangster added.
He described the SPE conference as an
annual event for the oil and gas industry in
N i g e r i a , a tt ra c t i n g i n d u stry l e a d e rs ,
policymakers, researchers, investors, and many
others.
He added, "One of the key benefits of the
conference is the opportunity it gives us to come
together as professionals and actors in our
industry to network, share experiences,
perspectives and concerns about the oil and gas
sector.
"It is also a forum to share and learn from
stakeholders in our industry. It is, therefore, an
honour for us to be one of the sponsors of this
very important conference and exhibition.
"The COVID-19 pandemic which hit the world in
2020 has redefined a lot of parameters as we have
always known them.
"The pandemic has proved that our people could
work remotely and still achieve set targets and
has also exposed the fragility of the public health
infrastructure of countries all over the world, he
added
Sangster spoke on the need for the industry to
address environmental issues as the relationship
between climate change and public health is clear
enough. “That is why our industry must address
the concerns over our contribution to climate
change.
“The production and use of energy contribute to
greenhouse gas emissions. Therefore, meeting
the climate challenge will mean embarking on
energy transition, i.e. transforming the way we
produce and use energy.
"TotalEnergies believes that climate change is a
reality and requires the collective mobilisation of
society.
He said the 2015 Paris Agreement generated a
By Ndubuisi Micheal Obineme
groundswell of awareness of the climate
emergency and the target recommended by the
experts is a carbon-neutral society by 2050. “This
is a demanding goal that we must all, collectively,
commit to,” he said.
Since 2015, Sangster said that TotalEnergies has
steered a determined course to new energies, in
line with its ambition to provide energy that is
reliable, affordable, and clean.
“This means that the future of energy is changing
and, if we must remain relevant in the energy
market of the future, then we must continue to
adapt. Together with society, we are adapting to a
world-class player in the energy transition with a
target of net-zero carbon emissions by 2050,” he
said.
He also noted that TotalEnergies is committed to
aligning with the National aspirations for
maximising existing energies and evolutions that
are necessary for the coming years.
He also spoke about global oil market innovation
which he said is anticipated to fuel the engine of
the energy transition. “We are a service industry
which must adopt the principles of strategic
customer relationship management in meeting
the energy needs of our world sustainably.
“There is no other industry better positioned than
ours to lead the crusade to clean energy and
carbon neutrality. We have the technology; we
have the capability; we have the people. We must
use all these to achieve the market innovation
which strikes a balance between meeting the
energy needs of a growing world population and
meeting same in a sustainable, carbon-neutral
manner without degrading the public health
situation of our people.” Sangster stated.
56
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
TotalEnergies Acquires the Largest Electric Vehicle
Charge Points Network in Singapore
transition. We will do our intended best to make
it a showcase of our expertise in this field.”
TotalEnergies has signed with
Bolloré Group for the acquisition of
‘Blue Charge’. Upon the approval of
the relevant authorities, TotalEnergies will
manage and operate the largest electric
vehicle charging network in Singapore,
with more than 1,500 charge points
installed in the city-state.
This urban charging network represents
around 85% of the charge points currently
under operation in Singapore, accessible
to electric vehicles’ owners as well as to the
carsharing solution BlueSG.
This network has been developed with the
Land Transport Authority of Singapore
(LTA) and with other partners from both
public and private sectors. Local growth
perspectives for electric mobility are
powered by the ambition of Singapore to
massively develop the charging infrastructure
as part of its Green Plan 2030, which includes a
target to reach 60,000 charge points by the end
of the decade.
“With this acquisition, TotalEnergies is pursuing
its transformation and adds a new name on the
list of global cities, such as Paris, Amsterdam,
London and Brussels, where the Company is
already developing its EV charge points
installing and operating activities. We are
committed to provide the customer experience
and services in line with our future users’
expectations.” declared Alexis Vovk, President
Marketing & Services at TotalEnergies. “This
urban charging network is also a key initiative
for TotalEnergies in Asia-Pacific, a region where
the development of electric mobility is a major
challenge, deeply linked to the energy
Commenting on the announcement, Ting Wee
Liang, President of TotalEnergies Asia Pacific &
Middle East - Marketing & Services, based in
Singapore, added: “TotalEnergies is excited to
enter the Singapore market to contribute
towards the development of cleaner and
reliable mobility solutions in the country.
Today’s announcement also signals our
ambition to actively participate in the
Singapore Green Plan, to forge key partnerships
and to accelerate developments in the region,
using Singapore as a strategic launchpad.”
Present in Singapore for almost 40 years with
around 600 staff, TotalEnergies has activities
ranging from regional headquarters,
manufacturing, and research & development.
Business divisions represented include
Exploration & Production, Gas Renewables &
Power, Marketing & Services (including the
Company’s largest lubricants plant and the
global headquarters of TotalEnergies Marine
Fuels, located in Singapore) and Trading &
Shipping. Singapore also houses a Research &
Development centre of Hutchinson and Saft
batteries’ activities.
TotalEnergies is a broad energy company that
produces and markets energies on a global
scale: oil and biofuels, natural gas and green
gases, renewables and electricity.
TotalEnergies Takes FID For Phase 4 of Mero Project Offshore Brazil
TotalEnergies and its partners have
taken the investment decision for the
fourth phase of the Mero project (Libra
block), located deep offshore, 180 kilometers
off the coast of Rio de Janeiro, in the prolific
pre-salt area of the Santos Basin.
The Mero 4 Floating Production Storage and
Offloading (FPSO) unit will have a liquid
treatment capacity of 180,000 barrels per day
and is expected to start up by 2025. It follows
investment decisions for Mero 1 (startup
expected in 2022), Mero 2 (startup expected in
2023) and Mero 3 (startup expected in 2024)
FPSOs. All of them have a liquid processing
capacity of 180,000 barrels per day.
"The decision to launch Mero 4 marks the last
milestone in the large-scale development of the
Mero oil resources. This giant project is in line
with TotalEnergies' growth strategy in Brazil
which is to produce oil at a competitive cost out
of world class fields while limiting CO₂
emissions to a strict minimum", said Arnaud
Breuillac, President Exploration & Production at
TotalEnergies.
The Mero field has been in pre-production since
2017 with the 50,000-barrel-per-day Pioneiro
de Libra FPSO. The Libra Consortium is operated
by Petrobras (40%) as part of an international
partnership including TotalEnergies (20%), Shell
Brasil (20%), CNOOC Limited (10%) and CNPC
(10%). Pre-Sal Petróleo (PPSA) manages the
Libra Production Sharing Contract.
TotalEnergies has been present in Brazil for over
40 years and has more than 3,000 employees in
the country. The Company operates in all
segments at the country: exploration and
production, gas, renewable energies,
lubricants, chemicals, and distribution.
TotalEnergies Exploration and Production’s
portfolio currently includes 12 blocks. In 2020,
the Group’s production in the country averaged
35,000 barrels of oil per day. In October 2019, a
consortium led by TotalEnergies was awarded
Block C-M-541, located in the Campos Basin, in
the 16th Bidding Round held by Brazil’s National
Petroleum Agency (ANP) and the first
exploration drilling is expected to begin in late
2021.
57 22
OIL AND OIL AND GAS GAS REPUBLIC REPUBLIC I SPECIAL I SPECIAL EDITION EDITION
INDUSTRY NEWS
Equinor Develops Three Pillars Towards Clean Energy
and Carbon Neutrality
By Ndubuisi Micheal Obineme
Equinor, a Norwegian broad energy
company, has developed three
pillars as part of its strategies
towards clean energy and carbon
neutrality. The company disclosed that its
main objectives is utilising natural
resources to become energy for people
and progress of the society.
Speaking at the virtual Energy Advance -
Africa Energy Series, organised by Global
Event Partners, Christel Kvalvik, Managing
Director of Equinor Nigeria Limited, said
that the company is currently operating
more than 40 assets in the Norwegian
Continental Shelf with partner operated
assets in 20 countries.
As Energy Transition has become more
prominent over the years, she affirmed
that Equinor's ambition is to take the
leading position moving from fossil fuel
towards new forms of energy sources.
In her words, "Our goal is to achieve carbon
neutrality in our global operations by 2030
and become a net zero company by 2050.
"By 2030, we expect to direct more than
50% of our investment towards
renewables and low carbon solutions.
"By 2025, we expect this to be more than
30%. We believe that Energy Transition
might look different in Africa compared to
EU and US.
"We are focusing on three priorities which
are optimising our oil and gas port folio,
reducing emissions from current
operations. C02 emissions per barrel is
around 8 kilos and by 2030, we plan to
reduce it to 6 kilos of C02 per barrel.
"We will achieve this by upgrading our
portfolio focusing on abasement
measures.
Christel Kvalvik, Managing Director,
Equinor Nigeria Limited
These range from electrification of some of our
assets mostly on the Norwegian continental
shelf and it will be done by power cables from
land, offshore wind turbines.
"We are also looking at integrated onshore base
support centres that will be guarding
production and emissions. And, we will be
developing various digital tools to acheive this.
"We are working very closely with government,
suppliers and industry to achieve this goal.
"In logistics, we have a very close collaboration
with the maritime and green shipping. We are
working closely to developing new fuel system
such as hydrogen, anmonia and biofuels.
"The second pillar is high value growth in
renewables which also reflected on our
investment plan.
"Equinor aims to be among the top global
leader in offshore wind. Our ambitions is
installing 12-16 GW renewable energy capacity
by 2030.
“We will build a profitable business within
renewables and wind as we are looking to
increase returns of offshore wind through
regional sysnergies, project financing, strategic
farm down.
"We will upscale our project and improve our
technical capabilities as well as our energy
trading.
"The final pillar in our strategy is new market
opportunities in low carbon solutions. Low
carbon value chains are critical if you want to
decarbonise the global economy and we will
actively contribute to make sure this market
gains leadership position in the European
carbon capture storage. Our goal is to have a
market share of 25%".
Internationally, Equinor is recognised by
universal access to affordable energy and clean
energy. In Africa, Equinor has been operating in
Angola, Nigeria and Tanzania for many decades
with the ambition to continue developing and
explore new technologies for safety, creating
value and reduce emissions from its
productions.
For gas development in Africa, Christel said that
there is need for a strong collaboration
between the industry and government.
She explained, "Gas could play a significant role
in energy transition in Africa but we need to
take into consideration that Gas is more
complicated than oil.
"Additionally, gas is used differently in the
different part of the world which means we
need to communicate clearly on how we can
utilise natural gas.
"To ensure that natural gas is part of Africa's
energy transition, Equinor will bring all our
knowledge and expertise in deepwater gas
development to the continent.
"Gas flaring is also an area where we want to
tackle and eventually eliminate it. This is an
ambition that we share with all of our partners".
58
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Huawei’s LTE Technology Takes Centre Stage in
Global Oilfield Operation By Ndubuisi Micheal Obineme
LTE integrates technology, information, people,
process, and organisation, enabling real-time
video, voice, and data across production
departments.
Huawei 4G LTE, a revolutionary solution,
enables transmission that features wider
coverage and higher bandwidth.
Now, the physical world is integrated and
connected to the LTE network for real-time
monitoring, control, and analysis.
The oil and gas industry is facing
great changes and challenges.
Innovative ICT plays a vital role in
digital transformation in the oil and gas
industry.
Huawei is committed to becoming the best
partner and one-stop ICT solutions
provider for digital transformation for the
oil and gas industry.
In the energy industry, Huawei is serving
the first 14 top global oil and gas
companies. Huawei works on projects in 45
countries and participates in constructing
digital pipelines of over 38,000 km.
In central Asia, Huawei is the only industry
digital solution pipeline provider with
c o m m u n i c a t i o n a n d S C A DA E P C
capabilities.
Huawei delivered the Kazakhstan - China
natural gas pipeline project with a total
length of over 13,000 kilometers. The
Kazakhstan - China natural gas pipeline is
one of the longest natural gas transmission
pipeline in the world.
In Norway, Huawei's offshore platform LTE
wireless coverage solution enables voice
communication, production data backhaul
in wireless services covering 37 kilometers
sea area around the offshore platform.
In Saudi Arabia, Huawei utilizes the espace
UC system to help Saudi Aramco to
smoothly evolve from the TDM system to
the all - IP multimedia communication
system.
In China, Huawei customises three data
centers in two cities core network
solutions for CNPC, deploys a total of 322
data centre core switches
CE 12800 and constructs the largest enterprise
cloud data center in Asia pacific.
Jaquin Reyes, Vallejo, Ompania Espanola de
Petroleos S.A.U, CIO said: "Huawei was able to
deliver immediately all the infrastructure we
were needing and to cope with all difficulties in
this project.
"Apart from that of course, Technical excellence
and being able to support high solidification for
SAP was an important issue”
Huawei becomes the top IT product provider for
Sinopec. The company's high-end storage
devices and servers are bulk applied in multiple
Sinopec core systems such as X86 cloud, ERP,
MES, and mail systems.
Secure and clean energy has always been the
appeal of human civilisation optimized
production resources configuration and
efficient energy supply will be the direction we
need to concentrate our efforts.
Huawei Digital Oilfield IOT Solution
The world heavily relies on oil and gas. Oil
companies will continue to explore more oil and
gas for more years. Oil companies worldwide
are continously expanding oil wells for more
yields.
Yet production, operations and management
are challenging in desert oil fields. The priority is
to improve remote connectivitity, which also
helps reduce costs with more efficient
operations.
Long Term Evolution (LTE), an emerging wireless
technology, that helps oil fields enhance safety,
efficiency, and collaboration. SCADA, security
monitoring, leak and hazardous gas detection,
and other key services are centrally carried on
LTE.
Huawei LTE solution best suits multiple
scenarios and helps manage oil field production
systems in the control center, which provides
survelliance, remote control, and optimisation.
Once the camera detects suspicious activities in
the restricted area, appropriate actions will be
taken promptly. If there is an Hydrogen leak in a
well during routine inspection, both the
installed and portable hazardous gas detectors
detect H2S concentration. The portable
detector vibrates with an audible alert.
Simultaneously, monitors the remote control
centre, display abnormal production
parameters and locations of the intrusion
including leak and inspection workers.
Then, the supervisor will ask the inspection
worker to leave immediately. The inspection
worker replies and leaves quickly.
Meanwhile, security and asset managers
coordinate nearby personnel to investigate the
leak and intrusion and perform maintenance
and troubleshooting accordingly.
Real time information about production
parameters and intruder's location are
displayed. The security personnel take actions
immediately to stop the intruder. In the control
center, the supervisor keeps tracking progress
and coordinating resources to make better
decisions. The maintenance personnel fix the
leak which is recorded in real time.
The recorded video is transmitted back to the
control center for obtaining efficient support
and therefore reducing the downtime.
Huawei LTE helps oil companies step into a new
era. The whole oil fields assets are managed,
coordinated and streamlined in new ways
based on LTE.
Huawei helps drive production by minimizing
losses and maximizing production in a more
efficient and secure way all possible on an
integrated LTE network platform.
59
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Natural Gas a Vector of Energy Transition - GECF
T
he Gas Exporting Countries Forum
(GECF) supports the intention of
the EU to consider gas as a
sustainable source of energy under the
new green labelling system, the Secretary-
General of the association of 19 leading
gas-exporting countries has said.
Speaking as a keynote at the 8th Session of
the Group of Experts on Gas of UNECE
(United Nations Economic Commission for
Europe), HE Yury Sentyurin said the Forum
hopes that the European Parliament and
the EU Member States will support the
sustainability rating of natural gas when
they are due to discuss this next month.
“GECF believes that all UNECE member
States should recognise the use of gas,
especially in cases where the gas
technology replaces higher-emitting
power sources and can cut emissions,” said
HE Sentyurin.
The UNECE’s Group of Experts on Gas is a
high-level policy consultation body to
empower and inform the work of UNECE
Committee on Sustainable Energy. At
present, UNECE boasts 56 member States
in Europe, North America and Asia,
including Russia and the U.S. – two
members that are expected to provide it
with up to 70% of gas production by 2050.
Citing the latest available figures available
from the GECF Global Gas Outlook 2050,
the Secretary General noted that natural
gas supply in the UNECE region will
increase at an annual average growth rate
of 0.8%, representing an overall increase of
29%, climbing from 2,320 billion cubic
metres (bcm) in 2019 to around 3,000 bcm
in 2050.
“The UNECE region will be responsible for
18% of the total gas demand growth
through to 2050. Despite ambitious
decarbonisation targets in many UNECE
members, natural gas will retain a critical
role in region’s energy mix, being the most
resilient hydrocarbon resource,” added HE
Sentyurin.
Whilst the 8th edition of the Group of
Experts on Gas was held in the backdrop of
COVID-19, the session noted that the
UNECE region is falling short of its
commitments and objectives on
sustainable energy. The Group of Experts
concluded that its key contribution to
achieving these objectives could be in two
areas: (a) deep transformation of the
energy system; and (b) reducing the
environmental impact of energy.
Natural gas, it was asserted, should begin to be
seen as beyond a fuel, and as a vector of energy
transition including, notably, hydrogen and biogas.
This catalytic potential of gas was highlighted by
other distinguished global gas executives who
had gathered to tackle the gas-powered post-
COVID-19 recovery as a step towards a
decarbonised world. The UNECE’s focus of
attention this year in the context of Sustainable
Development Goals (SDGs) is air quality and
health.
Francisco de la Flor Garcia, Chair of the Group of
Experts on Gas thanked GECF and International
Gas Union (IGU) for sharing case studies and
best practices on the role of gas in improving
urban air quality.
“A (UN) General Assembly resolution adopted
on 21 Dec 2020 recognised the key role that
natural gas plays in many countries and calls
upon governments to enhance energy security
through sharing of best practices in security of
gas supply and demand. I interpret this
resolution as a clear mandate for our continued
work,” said Mr Garcia.
Delivering the statement, the IGU President Joe
M. Kang noted: “Continued calls for only
electrical pathways to Paris (Agreement)
targets is a setup for failure on both Paris and
the Sustainable Development Goals. The
International Gas Union believes an achievable
transition is one that delivers clean, secure and
affordable energy, using electrons and natural
gas and hydrogen molecules.”
The Group’s mandate is a long-term, holistic
exploration of the role of gas in attaining SDGs.
Evy Maffini
In addition to its central theme – SDG7 (Access to
affordable, reliable, sustainable and modern energy
for all), in every two-year cycle the Group focuses
on a subset of SDGs. In 2022-2023 the Group of
Experts will take a deeper look at SDG3 (health),
SDG 9 (Industry and Innovation) and SDG 11
(sustainable cities).
Other areas that came under discussion were best
practices in methane management in the gas
sector, decarbonisation through synergies between
gas and electricity, hydrogen, sustainable
production and consumption of gas and liquefied
natural gas, and gas in transport.
At the end of the session, the Group recommended
that reducing pollution levels and improving air
quality will be tied to factors such as:
3Improved access to natural gas supply
3Improved monitoring and remediation of
methane losses
3Upgrade of bus fleets with natural gas-powered
buses
3Cleaning marine transport by developing LNG
bunkering in city harbours
The GECF is a regular contributor to the discussions
of the UNECE Group of Experts on Gas. Most
recently, it also took part in the 1st Steering
Committee of a UNECE project “Improving
capacities of UNECE member States to decarbonise
the transport sector by increasing the use of natural
gas as a motor fuel”.
60
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
European Investment Bank Signs Advisory Agreement
with Hydrogen Europe
The European Investment Bank (EIB)
and Hydrogen Europe, an umbrella
association representing European
industry, research, and national and
regional associations in the hydrogen and
fuel cell sector, has signed an agreement
for consultancy services.
Under the agreement, the EU bank will
provide financing advisory support for
hydrogen projects introduced by Hydrogen
Europe. Furthermore, it will cooperate on
market development initiatives and
conduct joint market outreach. Finally, the
agreement will help to develop dedicated
EIB financing products for green hydrogen.
Hydrogen technology can play a crucial
role in achieving a carbon neutral EU
economy by 2050. The current share of
hydrogen in Europe’s energy mix is less
than 2%, but it could rise to 14% by midcentury.
The European Hydrogen Strategy,
which is part of the European Green Deal,
aims to enable widespread use of
hydrogen by 2050.
According to the strategy, green hydrogen
will be produced on a systemically relevant
s c a l e b e t w e e n 2 0 3 0 a n d 2 0 5 0 .
Consequently, investments in renewable
or low-carbon hydrogen will need to
increase. The strategy anticipates that
between €180 and €470 billion will be
required for production capacities in the
European Union by 2050.
Alongside the European Commission,
Hydrogen Europe is one of the three
participants of the European Joint
Undertaking on Hydrogen, a public-private
partnership working to facilitate the
market introduction of clean hydrogen
technologies in Europe.
“Green hydrogen presents an opportunity
to decarbonise industrial processes,
particularly in sectors where emission
reduction is urgent but difficult to
achieve,” said EIB President Werner Hoyer.
“Many European countries are actively
supporting the development of hydrogen
technologies. One of the main strengths of
the European Investment Bank is that it
combines advisory and technical support
in the initial phases of a project with
attractive forms of financing later on. This
model is perfect for the development and
deployment of new breakthrough
technologies, including those based on the use
of hydrogen.”
Obtaining green, zero-emission hydrogen is
very costly. In the EU context, the European
Investment Bank is a key funding partner. Over
the past eight years, the EU bank has provided
over €2 billion in advisory and financial support
to projects that use hydrogen technologies.
Projects that focus on scaling up deployment in
the transport sector by supporting new
hydrogen fleets and related infrastructure have
also received funding.
With its expertise and track record in financing
innovative technologies and infrastructure —
notably offshore wind and batteries — the EIB is
well placed to support the development of the
hydrogen ecosystem in Europe.
Currently, the Bank supports technologies such
as electrolysers, catalysts and fuel cells. It also
finances large-scale hydrogen production,
including electrolysis, carbon capture and
storage and hydrogen stations.
The European Investment Bank (EIB) is the longterm
lending institution of the European Union
owned by its Member States. The Bank provides
long-term financial support for sound
investments, thus contributing to the
achievement of EU policy goals.
Hydrogen
There are various types of hydrogen,
categorised by production process and the
resulting greenhouse gas emissions. Clean
hydrogen (“renewable hydrogen” or “green
hydrogen”) is produced by the electrolysis of
water using electricity from renewable sources
and does not emit any greenhouse gases during
its production. It is distinct from grey hydrogen,
which is produced from methane and releases
greenhouse gases into the atmosphere, and blue
hydrogen, which captures those emissions and
stores them underground to prevent them from
causing climate change.
In 2019 the EIB Board of Directors approved a new
set of ambitious targets for climate action and
environmental sustainability. The EIB Group
Climate Bank Roadmap 2021-2025 will guide our
ambition. It is the result of various rounds of
engagement with civil society and other
stakeholders.
The Roadmap outlines our bold ambitions for
climate finance to back the European Green Deal
and make Europe carbon-neutral. It maps the next
stages in the journey to sustainable investment and
provides a framework to counter climate change
and protect the environment during the critical
decade ahead.
The European Investment Bank (EIB) is the lending
arm of the European Union. It is the biggest
multilateral financial institution in the world and
one of the largest providers of climate finance. EIB
lend to clients of all sizes to support sustainable
growth and job creation.
EIB provide guarantees covering the risks of large
and small projects. We also provide loan portfolios
to make your projects more attractive to other
investors.
61 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Shell LiveWIRE Beneficiaries Receive N48 million Grant to
Set up Business
Social Performance and Social
Investment Manager, The Shell
Petroleum Development Company
of Nigeria Limited, Dr. Gloria Udoh
(middle), presents a N48 million cheque to
representatives of the 117 beneficiaries of
the Shell Nigeria LiveWIRE programme at a
graduation ceremony in Port Harcourt… on
Friday
Social Performance and Social Investment
M a n a g e r, T h e S h e l l P e t r o l e u m
Development Company of Nigeria Limited,
Dr. Gloria Udoh presented a N48 million
cheque to representatives of the 117
beneficiaries of the Shell Nigeria LiveWIRE
programme at a graduation ceremony held
in Port Harcourt over the weekend
117 young entrepreneurs from the Niger
Delta have graduated from the Shell
Nigeria LiveWIRE programme and have
been awarded this money as a grant to
either establish or expand their
businesses.
This brings to 7,913 the total number of
beneficiaries of the youth enterprise
development programme since inception
in 2003.
Speaking at the graduation ceremony,
Shell’s Country Head of Corporate
Relations, Igo Weli, restated the
commitment of SPDC to the development
of Niger Delta youths and providing them
alternative livelihood opportunities
t h r o u g h L i v e W I R E a n d o t h e r
empowerment programmes in the wider
social investment portfolio of the
company.
Weli said, “This is one opportunity to set
you on the path of self-reliance and to be
employers of labour as we have seen with
previous beneficiaries of the programme
many of whom are now employers with
several others having also taken up the
opportunity to play in SPDC’s supply chain
as vendors.”
Explaining the criteria for the selection of
the beneficiaries from across the Niger
Delta, Dr. Udoh, said the selection was
from a pool of graduates from university or
its equivalent who have credible business
ideas and were able to produce a business
plan.
“The 117 beneficiaries were selected from
a large pool of participants who went
through the entrepreneurship training; wrote
their business plans and successfully pitched
their business ideas. The expectation is that
they will be able to successfully establish or
expand their businesses and also enjoy the
many linkage opportunities offered by SPDC,”
Udoh said.
Previous beneficiaries, who now run successful
businesses, also inspired the graduates with
their own stories towards success. Yolo
Bakumor Smith, the Chief Executive Officer of
De-Rabacon Plastics, described the training as
priceless. “It was instrumental to using the
limited resources to improvise and
implementing a plan that has led me to still
making profit.”
Executive Director, Centre for Information and
Development, Mrs. Belema Ogbuigwe,
inducted the new graduates into the Shell
LiveWire Alumni group, which further enables
the young entrepreneurs to enjoy mentorship
from previous beneficiaries.
In the last 10 years, five Shell Nigeria LiveWIRE
beneficiaries have won the LiveWIRE
International “Go and Trade Enterprise Linkage
Award” which enabled them to make
international trade visits to the United
Kingdom, the United Arab Emirates, and Ghana.
LiveWIRE beneficiaries are also able to join
thousands of young entrepreneurs from all over
the world who compete for the Global Shell
LiveWIRE Top Ten Innovators Award which
comes with huge benefits and rewards.
Shell LiveWIRE Nigeria is the flagship of our
youth enterprise development programmes.
The initiative was launched in Nigeria on March
27, 2003, to provide access to entrepreneurship
training, business development services as well as
business start-up capital for youth-owned
businesses. The programme also provides
opportunity for beneficiaries to access fund from
financial institutions. To date, 6,580 youths have
been trained and 3373 have received business
start-up grants. Most of whom are now employers
of labour.
The objectives for the LiveWIRE Programme in
Nigeria are to;
3Provide intensive entrepreneurship training
3Raise business awareness amongst final year
university students to encourage them to see
starting a business as a valid career option.
3Support youths to discover and develop business
'ideas' through Bright Ideas workshops.
3Make available to youths, business planning and
management guidelines and skills through the
‘Become A Successful Owner Manager Course’
(BSOM).
3Provide business start-up grant for candidates
with the best business plan
3Run awards for best business plans, of which the
prize gives access to micro-credit facilities, through
third parties like banks, NGOs and allied financial
institutions.
3Support young entrepreneurs to formalise their
businesses
3Run an award for young people who have
sustained a business for 1 to 3 years and continue
the award on an annual basis.
3Provide a volunteer mentoring programme for
those who have completed the training course and
decide to pursue starting their own business.
3Mentors can be drawn from oil and gas, banking,
social voluntary sectors, etc.
3Provide opportunity for young people to
participate in global award programmes
3Provides automatic membership of LiveWIRE
alumni
62 21
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Investors Proposes $500m for Gas Pipeline in Nigeria - DPR
Investors have proposed to spend
over $500m in building gas pipelines
and other facilities in Nigeria
following the implementation of the
Nigerian Gas Transportation Network Code
that was launched last year, the Department
of Petroleum Resources has said.
The Director and Chief Executive Officer,
DPR, Mr Sarki Auwalu, said this on Tuesday
at a media briefing on the occasion of the
first anniversary of operationalising the
network code in the country.
He said through the implementation of the
network code, the DPR was able to improve
the much-needed market alignment
between critical demand points for gas and
available supply opportunities.
Auwalu said, “To grow the Nigerian
economy with the Nigerian Gas Master Plan,
there is a need to stimulate the multiplier
effects of gas in the domestic market.”
He said the agency had so far issued 12
shipper (off-taker) licences, with three
licences under processing; one transporter
licence; and three agent licences.
Hon. Tom Alweendo, Namibia’s Minister of Mines and Energy
Nigeria Targets 50 Billion-Barrel Oil
Reserves, says DPR
According to him, the NGTNC ensures nondiscriminatory
access to the pipeline
system, and guarantees secure, available,
reliable and safe gas transmission system.
He said the network code had improved
investors’ confidence in the evolving
domestic gas market.
He said, “Confidence of investors across the
domestic gas value chain has shown a
positive trend through specific requests for
regulator’s support for gas supply to the
tune of over 500 mmscf/d and for
investments of over $500m.
“NC investment areas that the DPR has
received proposals on include power
generation, ammonia for fertiliser,
methanol plant, domestic LNG, virtual
pipeline systems, new gas hubs, and
establishment of a Nigerian Gas Trading
Exchange.”
Auwalu said the agency would in this second
year revise the network code with all
relevant stakeholders’ feedback, adding
that it would extend the code to cover
distribution systems.
The target of the Federal
Government i s to i n c re a s e
Nigeria’s oil reserves from 36.91
billion barrels to 50 billion barrels in the
short to medium term, the Department
of Petroleum Resources announced.
Director/Chief Executive, DPR, Sarki
Auwalu, announced this during a
workshop with industry partners
recently.
He also disclosed that the regulator
would inaugurate annual awards for
companies, projects or individuals who
add value to the Nigerian oil sector
through enhanced recovery of the
country’s oil and gas resources.
Auwalu in a statement issued by the Head
of Public Affairs, DPR, Paul OSU, said the
Improved Oil Recovery/Enhanced Oil
Recovery Awards were part of deliberate
engagements with industry partners to
achieve maximum economic recovery
strategies for Nigeria.
Auwalu noted that the Federal Government,
through the MER strategies, was also
targeting to increase Nigeria’s proven gas
reserves from 206.53 trillion cubic feet to
250TCF.
According to him, companies, individuals,
fields, research institutions and technologies
were eligible for the IOR/EOR awards.
He said the industry initiative was one of the
outcomes of the work of the National Oil and
Gas Excellence Centre, Lagos inaugurated in
January by the President Muhammadu
Buhari.
63
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Chevron Reposition its Top Management Executives
Chevron Corporation has strengthened
its business prospect on hydrogen,
carbon capture, biofuels among others.
As part of the company's effort to reposition its
business portfolio towards clean energy,
Chevron has appointed Jeff Gustavson as
President, Chevron New Energies, effective
August 2, 2021. Gustavson will serve as a
corporate officer and report to Chevron
Chairman and CEO Michael Wirth.
Gustavson, 49, will lead a new, dedicated
organization focused on low carbon business
prospects that have the potential to scale.
Chevron New Energies’ initial focus will include
commercialization opportunities in hydrogen,
carbon capture, and offsets and support of
ongoing growth in biofuels. Additional detail
about these efforts will be provided on
September 14th during the company’s Energy
Transition Spotlight investor presentation.
“Chevron New Energies reflects our higher
returns, lower carbon strategy,” said Wirth.
“We believe the dedication of resources in a
new organization will accelerate growth in
multiple business lines that we expect to be
part of a lower carbon energy system.”
Gustavson is currently vice president of
Chevron North America Exploration &
Production Company and oversees its Mid-
Continent Business Unit. He previously served
as president of Chevron Canada Limited, and
has held positions in Investor Relations,
Corporate Strategic Planning, Finance,
Mergers & Acquisitions, and Supply & Trading.
Michael Wirth, Chief Executive Officer,
Chevron Corporation
Jeff Gustavson, President, Chevron New Energies
Ryder Booth, Vice President, Chevron North
America Exploration & Production Company
In a separate appointment, Ryder Booth, 52,
has been named Vice president of Chevron
North America Exploration & Production
Company, leading the Mid-Continent Business
Unit and succeeding Gustavson.
Both, currently Vice President, Capital Projects,
will be responsible for a large resource base of
oil and liquids-rich assets in the mid-continent
United States, including Chevron’s significant
Permian assets in Texas and New Mexico. His
appointment is effective August 2, 2021.
Chevron is one of the world’s leading integrated
energy companies. We believe affordable,
reliable and ever-cleaner energy is essential to
achieving a more prosperous and sustainable
world.
Chevron produces crude oil and natural gas;
manufactures transportation fuels, lubricants,
petrochemicals and additives; and develops
technologies that enhance our business and the
industry.
To advance a lower-carbon future, we are
focused on cost efficiently lowering our carbon
intensity, increasing renewables and offsets in
support of our business, and investing in lowcarbon
technologies that enable commercial
solutions.
64
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Forth Develops World-First Oil Pipeline Robotics, Seeks
Investor to Bring Prototype into Commercial Stage
AN EXCITING opportunity has become
available to help bring to market
world pioneering robotics to repair
oil pipelines from a safe, remote distance
without the need to stop production.
A team led by engineering firm Forth has
worked for the past two-and-a-half years on
the creation of FSWBot, an innovative
friction stir welding robotic crawler devised
for internal repair and refurbishment of
pipelines, and they are now looking for
assistance to help bring the working
prototype to the commercial stage.
The FSWBot is being developed to travel
hundreds of miles down an oil pipeline to
scan for any defects in the structure, and
carry out subsequent repairs - all while oil
continues to flow. The robot is controlled
remotely by engineers at a safe distance
from the pipeline.
This process will remove the need for divers
to work on pipelines and for oil production
to be halted, therefore saving significant
time, money and, by removing humans from
hazardous environments, potentially saving
lives.
The FSWBot has innovative technology
which allows the robot to ‘walk’ to the exact
point of defect, place a milling patch in place
and then weld the problem area.
Forth has produced a concept model of the
FSWBot and successfully demonstrated the
prototype to a consortium of partners at its
headquarters in Cumbria in July. The
Innovate UK-backed project has also been
supported by partners TWI, Joining 4.0
Innovation Centre (J4IC, a partnership
between TWI and Lancaster University),
Innvotek and London South Bank University
(LSBU).
Now that the pilot system has been
demonstrated successfully, Forth is seeking
further partners for full commercial deployment
of the equipment.
Chris Downham, programme manager at Forth,
said: “An exciting opportunity to bring such a
pioneering piece of kit to the commercial stage
now exists, and we’re keen to hear from anyone
who may be interested in helping us get to the
final stage.
“Our team has worked tirelessly to design and
construct the prototype, and we are extremely
proud of how well the new technology works.
“In order to improve on the working prototype
and assist with the commissioning process, we
would like to work with partners who would be
interested in helping develop such innovative
technology.
“This technology is a world-first piece of
equipment and it will have a major, positive
impact on the oil and gas industry, ensuring oil
pipeline repairs are carried out more safely,
quicker and without restricting production.
“It is a great opportunity for partners to be
involved in something which will change the way
the industry works across the world.”
The FSWBot integrates several state-of-the-art
technologies, including friction stir welding,
milling, patch deployment and ultrasonic NDT,
onto a robotic system which can be deployed to
conduct repairs on pipelines without the need for
the pipeline to be closed down for the duration of
the repair.
Friction stir welding is a solid state welding
process which generates enough frictional heat
to soften or plasticise the metal without melting
it, allowing metal components to be forged at the
joint line.
The FSWBot will be a five or six-segment PIG type
which will be inserted at the production end of
the pipeline and will flow with the oil to a predesignated
area, where it will stop and perform
the repair work.
One segment will carry the FSW machine and a
steel patch dispenser, with other segments
carrying the navigation, control system,
c o m m u n i c a t i o n s , N D T a n d p o w e r
storage/generation payloads.
An FSWBot2 is also under consideration for
multipurpose repairs and inspections. This
innovation would be a very different robot but
would build on the learning from the initial
development. It would be able to inspect and
repair fatigue and corrosion in offshore assets as
well as other subsea infrastructure and
applications in other industries. It will be able to
climb and walk and will be deployed from a
system which has the ability to lock onto a
structure.
Founded more than 20 years ago, Forth
specialises in providing engineering solutions
across all sectors and provides management of oil
and gas and subsea industries to nuclear
standards.
The company is able to test its prototypes at its
main base in Cumbria which also boasts a
bespoke Deep Recovery Facility which, at 22.5
metres long and six metres deep allowing it to
hold 1.2 million litres of water, is one of the largest
wet test facilities in the UK. This facility allows the
company to test underwater technology and
innovations.
Forth can be contacted at:
01900 816000
Website: www.forth.uk.com
65
OIL AND GAS REPUBLIC I SPECIAL EDITION
INDUSTRY NEWS
Schneider Electric, others Reiterate the Need for
Deployment of Technologies to Ensure Energy Security
Schneider Electric has reiterated the need
for deployment of technologies to
ensure energy security and sustainable
development in Nigeria.
General Manager Sub-Saharan Africa for
Schneider Electric Process Automation, Mr.
Ajibola Akindele, stated this at the 2021 Society
of Petroleum Engineers (SPE) Nigeria Annual
International Conference and Exhibition (NAICE),
with the theme: “The Future of Energy – A Trilogy
of Determinants: Climate Change, Public Health,
and the Global Oil Market", which held in Lagos.
Speaking on a panel on “Energy Security and
Sustainable Development in Nigeria”, Akindele
noted that energy security is about availability,
accessibility and affordability, adding that it is
also about meeting today's challenges without
negating the requirement for tomorrow.
According to him, energy security is the life-blood
of a country’s economy; but he bemoaned the
general lack of energy efficiency in Nigeria –
getting energy to the right place at the right time.
This, he said is where technologies come in.
He averred that technology is an enabler and not
an end itself, noting that the use of technology
helps in good decision-making, transparency,
increased production, and cost reduction.
Akindele also noted that there are several
technologies available today, which can help
players in the oil and gas industry to make better
decisions, ensure transparency, increase energy
production and reduce cost.
He listed predictive analytics, digital twins, IoT,
3D printing, robotics, machine learning,
blockchain, big data and drones deployment as
some of the technologies that will continue to
matter in the future with
respect to operations in the oil and gas industry.
“All of those technologies are coming upstream
and we are going to see more and more of those
technologies. What do they do? Essentially, when
you look at Internet of Things (IoT), Machine
Learning, blockchain and Big Data, they help you
with better decision-making, transparency – so
that ultimately you can out-produce more energy
at a cheaper price. You are making it more
affordable, hence it becomes more accessible and
more available,” he said.
He also listed some of the challenges that may
affect the Oil and Gas companies from adopting
these technologies as costs, lack of infrastructure
backbone and exposure to cyber-attacks.
However, he stated that all of these challenges
can be successfully mitigated and overcome.
Mr. Ajibola Akindele
On the challenge of upfront costs, he suggested
that these technology services can be provided on
a subscription model thereby reducing upfront
costs.
He also stated that cyber-attacks while becoming
increasingly common, can be mitigated by
applying the appropriate technology solutions
and constantly educating employees on the
threat of cyber-attacks and ensuring vigilance
within the organisation.
Akindele concluded by stating that “the use of
technology has a big role to play in ensuring
energy security and sustainable development in
Nigeria”. He urged organisations to embrace the
use of digital technologies where possible for
operational efficiency improvements.
Sonangol Extends Farm-down Bid Rounds to September 2021
Sonangol hereby informs the general public that, due to companies increased interest in
Sonangol’s farm-down bid process, the access to the virtual Data Showrooms sessions was
extended to August 20th, 2021.
The national oil company also informs that, as a result, the deadline for proposals
submission was extended until September 20th, 2021.
For any additional question inherent to the process, the interested parties should
contact the Evaluation Committee created for this purpose by e-mail,
alienacaoblocospp@sonangol.co.ao
66
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