Majorwaves Energy Report March-April 2019 by majorwavesenergyreport

www.majorwavesenergyreport.com

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 1

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 3

INDUSTRY NEWS

OPEC Secretary General Congratulates Nigerian President Muhammadu Buhari on His Re-Election

PEC Secretary General, HE Mohammad Sanusi Barkindo, has extended his congratulations to HE Muhammadu Buhari, President of the Federal Republic of Nigeria, following his election victory. The Secretary General commended President Buhari for his positive and successful first-term achievements and for his talk of advancing and building on these in his second term that gives great hope to the Nigerian people. The Secretary General also recalled the visionary leadership and steadfast backing that President Buhari has shown during the inception and implementation of the historic ‘Declaration of Cooperation’ between OPEC and participating nonOPEC producers.

Chevron Reinforces Commitment to Nigeria’s Socio-Economic Development

he Nigerian National Petroleum Corporation (“NNPC”) and Chevron Nigeria Limited (“CNL”) have signed a Gas Sale and Aggregation Agreement (“GSAA”) with Dangote Fertilizer Limited (“DFL”) and Gas Aggregation Company of Nigeria Limited (“GACN”) as the ‘Aggregator’. The agreement was executed on behalf of the three companies by Jeffrey Ewing, Chairman/Managing Director of CNL; Morgan Okwoche, Managing Director/CEO of GACN; and Devakumar Edwin, Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL, respectively. (NNPC executed the GSAA subsequently.) NNPC and CNL are obligated to supply 70mmScf/d of natural gas to Dangote Fertilizer Limited to enable start up and operation of the newly built fertilizer plant.

Lekki, Lagos, is a flagship mega fertilizer project designed to support the Federal Government’s drive to develop the agricultural sector and in-turn improve the Nigerian economy. Natural gas is the feedstock of the Dangote Fertilizer Plant. This GSAA for the supply of the major raw material needed to run the fertilizer plant is another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market. The NNPC/CNL Joint Venture (JV) is currently the largest and most on-spec supplier of gas to the domestic market. The JV continues to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market. The NNPC/ CNL JV is committed to supporting the Federal Government of Nigeria’s policy to boost local industries.

The Dangote Fertilizer Plant at Ibeju

NNPC Plans to Drill Four Wells in Chad, Gongola Basins – Baru advertisements in the national dailies and online media on Wednesday, 13 March, 2019.

he Nigerian National Petroleum Corporation (NNPC), has shutdown its application’s portal, signalling end of first phase of its ongoing recruitment exercise which kicked off via nationwide 4

Majorwaves Energy Report

A release in Abuja by the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said the Second Phase of the exercise involving shortlisting of qualified candidates had started, explaining that the qualified ones among them would be invited to participate in a computer-based aptitude tests. Mr. Ughamadu said in the release

MARCH - APRIL 2019, Vol 3 No 2

that tests would be administered in about 50 centres across the country, saying those who emerge successful in the tests would subsequently be invited for oral interviews for final selection. NNPC, an equal opportunity employer in the Oil and Gas Industry value chain, including exploration, refining, transportation and marketing of petroleum products, recently placed advertisements to recruit some categories of new hands to buoy its operations nationwide. These are: Graduate Trainee; Senior officer and Supervisory Cadre; and Managerial Cadre. www.majorwavesenergyreport.com

LOCAL CONTENT

NCDMB, NLNG Sign Train 7 Nigerian Content Plan, To Create 10,000 Jobs

he Niger ian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited (NLNG) recently signed the Nigerian Content Plan (NCP) for the NLNG Train 7 project, taking a big step towards kick starting the huge gas project that would create a flurry of activities in the oil and gas sector and contribute immensely to the nation’s economy. The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote and the Managing Director of NLNG, Engr. Tony Attah signed the NCP in Abuja at an event witnessed by senior personnel of the Nigerian National Petroleum Corporation (NNPC), Shell, Total and ENI – shareholders of the NLNG. The Train 7 project is expected to expand NLNG’s production capacity by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA. At peak construction, the Train 7 project is projected to provide direct, indirect and induced employment for over 10,000 persons. The Executive Secretary emphasised at the signing ceremony that Train 7, like other forthcoming major projects in the oil and gas sector must leave a legacy facility, just like Total’s Egina deepwater, which catalyzed the www.majorwavesenergyreport.com

development of an FPSO integration facility in Lagos. He explained that the expected job explosion from Train 7 is banked on the Nigerian Content Plan, which provides for 100 percent engineering of all non-cryogenic areas in-country. The total in-country engineering man hours is set at 55 percent, which exceeds the minimum level stipulated in the NOGICD Act, in line with the Board’s resolve to push beyond the boundary of limitations, he added. Wabote revealed that the Train-7 scope will deliver 100 percent incountry fabrication of the Condensate Stabilization Unit, pipe-racks, flare system, and non-cryogenic vessels. Site civil works on roads, piling, jetties and will also keep local businesses occupied. He added that “it will also provide great opportunities for utilization of local goods and services in addition to enhancing and developing new capacities and capabilities for the local supply chain. There will be 100 percent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, and all sacrifice anodes. 70 percent of all non-cryogenic pumps and control valves will be assembled in-country.” Other spin-off

Majorwaves Energy Report

opportunities would include logistics, equipment leasing, insurance, hotels, office supplies, aviation and haulage. The Executive Secretary pointed out that the increased number of NLNG Trains would also provide huge business opportunities for local businesses to build capabilities in the maintenance of LNG plants, especially in the area of cryogenics. The project would also catalyze other upstream gas supply projects required to keep the LNG train busy and make stranded gas fields in the shallow and deep offshore in the area economical. In his comments, the Managing Director of NLNG confirmed that the full value network of the Train 7 project was about $12bn, including the net cost of the project, estimated in the region of $4bn to $5 billion and a similar additional spend at its operational base in Bonny, Rivers State. “It is also about the upstream development which is the real gas that will come to us. That also is a huge investment of $5 to $6 billion. So, potentially, the full value network is almost $12 billion.” Engr. Tony Attah underscored that the Nigerian Content Plan for Train 7 contained clear and robust Local Content provisions that are significantly higher than the previous NLNG projects. “NCDMB and NLNG are fully aligned to collaborate during the operationalization of the plan. This synergy will ensure that value added opportunities for Nigeria are indeed maximized and the Train 7 project is delivered to meet international standards of quality and safety.” He also stated that NLNG shareholders are primed to take the Final Investment Decision (FID) for the project before the end of Quarter 4 2019. The MD further highlighted that the expected increase in the production capacity of LNG “will reinforce the company’s comparative and competitive advantage in the global LNG market while also increasing the country’s revenue and foreign investment profile. This is in addition to moving the nation’s economy from being oil-based to becoming a gasbased economy to be reckoned with globally. We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years, it is now time to fly on the wings of gas.” MARCH - APRIL 2019, Vol 3 No 2 5

LOCAL CONTENT

Ayuk Seeks Collaboration on Local Content Development, Improved Governance

“

The Chamber continues to be bullish about the potential of Nigeria and the investment opportunities for energy industry players here,”

enturion CEO and Executive Chairman of the African Energy Chamber, NJ Ayuk, will lead an industry delegation to Nigeria this week to meet various oil industry players.

for investment.

According to the statement by African Energy Chamber, Ayuk, who arrived Lagos, called for more industry collaboration on key issues pertaining to Nigeria’s oil & gas industry, including local content development, the signing of the Petroleum Industry Bill, the promotion of a better enabling environment for start-ups and SMEs, monetizing gas for domestic use, investing massively in energy infrastructure and building a robust petrochemical industry whilst ensuring that energy security is placed as a high priority agenda by both the Nigerian government and the country’s oil industry. The meeting included the signing of the Petroleum Industry Bill while the Chamber’s delegation notably highlighted the importance for both the government and key stakeholders in the oil industry to immediately collaborate to improve governance and create an enabling environment

“Many young Nigerians look at the energy industry for training, empowerment, innovation, and not just any job but good jobs.

Majorwaves Energy Report

“The Chamber continues to be bullish about the potential of Nigeria and the investment opportunities for energy industry players here,” NJ Ayuk said.

“The oil industry is going to continue being the largest investor in the country and recognizes its responsibility to work with all Nigerians to ensure that the resources benefit every Nigerian and the dignity of work becomes real. Passing progrowth legislation that incentivises growth and provides confidence to all investors is important,” he added. The Chamber further recognised the success of Nigeria’s local content development, which has enabled the creation of strong Nigerian exploration, production and services companies that can truly be part of an African content revolution across the continent. “As such, it will continue working with Nigerian officials to attract

MARCH - APRIL 2019, Vol 3 No 2

investment into Nigeria and push for skilled Nigerian entrepreneurs to expand across Africa. “At the African Energy Chamber we are seeing a great number of Nigerian companies seeking to expand across Africa, including Senegal, Ghana, Equatorial Guinea, Gabon, Congo and South Sudan. “We need to encourage African companies to take the lead in the development of the continent’s oil & gas industry,” he concluded. In various meetings with oil and gas entrepreneurs in Lagos, Ayuk also urged them to make an effort to participate in the APPO Cape VII Congress & Exhibition in Malabo on April 1-5 and in the 13th German-African Energy Forum in Hamburg on March 27-28. “African companies, and especially African entrepreneurs and SMEs, tend to be under-represented on the international stage, where decisions are made that affect them. Indigenous African companies also need to take advantage of the amazing growth and business opportunities provided by such international platforms

www.majorwavesenergyreport.com

LOCAL CONTENT

FG Launches ‘Project 100’ To Support Local Oil, Gas Service Firms

By Margaret Nongo-Okojokwu

today; create work. “Fight to be the best and strive to get the best contracts in the industry, because you are entitled to it; it is not a privilege; it is not a favour, it is your right. Deliver the best quality work results so that those who gave you the opportunity would be able to go home and feel very happy. Even if all we do is to create 10 Korean-sized firms, we would have done a lot.”

i g e r i a’s M i n i s t r y o f Pe t r o l e u m Re s ou r c e s has launched a business intervention programme, ‘Project 100’ that seeks to nurture indigenous oil servicing companies and develop them into next generation large scale Nigerian oil and gas companies. The project targets indigenous companies offering seismic, marine, engineering and drilling services and will provide financial and non-financial as well as technical support and access to market for the beneficiary companies. Minister of State for Petroleum Resources Dr. Ibe Kachikwu who performed the official launch said he initiated the Project 100 as an oil and gas industry intervention to identify, recognize and nurture wholly owned indigenous Nigerian oil and gas service companies into large scale players that will create high impact in the economy. Speaking in Abuja, during the launch of the programme with 60 companies, spearheaded by the Nigerian Content Development Monitoring Board, NCDMB, The Minister disclosed that the companies would be nurtured through structured capacity building and policy intervention.

www.majorwavesenergyreport.com

He noted that the government is promoting Project 100 as an oil and gas industry intervention to identify, recognize and nurture wholly-owned indigenous oil and gas service providers into large scale players that would create high impact in the economy, in terms of job creation, technology development, wealth creation and other local content indicators. According to him, the Federal Government would support the firms in the areas where they need critical government support, through the provision of support in terms of granting them import waivers among many other incentives. He said, “Project 100 is founded on the logic that Nigerians have the capacity to lead this industry; to build the best FPSOs, to build the best platforms, to build the power plants to run the best plants and communication companies. “There is nowhere in the world where people go through the kind of difficulties they go through in Nigeria. The expectations are that because I believe so much in you and you believe so much in yourself, we are working together as a nation and people, we can deliver the sort of results that are enunciated here

Majorwaves Energy Report

Also speaking, Executive Secretary of the NCDMB, Mr. Simbi Wabote, said the project was a brainchild of Kachikwu, who had given the charge to the industry. He said the 60 successful companies in the first tranche, emerged from the over 8,000 service companies registered on its Nigerian Oil and Gas Industry Content Joint Qualification System, NOGIC JQS, where it later discovered that only about 2,500 companies were active. He explained that the benefiting companies were from high impact oil and gas service providers, geosciences and seismic services, marine, drilling and engineering ser vices. He noted that the intervention would non-financial, which included provision of pecuniary intervention, such as strategic business/technical support, access to market, among others, to beneficiaries to promote local capacity development. On the other hand, Wabote stated that financial linkages would involve provision of relevant linkages for the provision of actual financial/pecuniary interventions to beneficiaries for well targeted initiatives that promote local content development. According to him, non-financial interventions included policy interventions, access to markets, capacity building, business insight, research and development, while financial linkages entails provision of access to finance and opportunities for mergers and acquisitions.

MARCH - APRIL 2019, Vol 3 No 2 7

LOCAL CONTENT

NOGAPS to Accelerate Oil & Gas Hub in Calabar

he Executive Secretary of the Nigerian Content Development a nd Mon itor i n g Boa rd (NCDMB), Engr. Simbi Wabote has asserted that the ongoing development of the Nigerian Oil and Gas Park Scheme (NOGaPS) in Odukpani, Cross River State will lead to the emergence of a vibrant oil and gas hub in the Calabar area. He said this recently during a facility visit to Ibafon Tank farm located at the Free Trade Zone in Calabar.

He stated that the visit was meant to assess the opportunities of the free trade zone vis-à-vis the oil and Gas Park, where most businesses would want to set up facilities and take advantage of the incentives that are obtainable there. He further indicated that the Board had been in talks with Ibafon Oil on their potential ten thousand barrels per day modular refinery. “The Board is assessing the opportunities within the hydrocarbon value chain from the upstream to the downstream to see areas it can support local players to take advantage of some of the objectives and lofty programs of the NCDMB”, the Executive Secretary said. According to him, Calabar as the hub for petroleum products supply to the South-East and South-South geopolitical regions makes it expedient on the Board to synergize with the NNPC and other stakeholders. In an earlier presentation to the Executive Secretary, the Depot Manager of the facility, Mr. Owolabi David indicated that Ibafon Oil Refining FZE intends to construct a

ten thousand barrels per day modular refinery in conjunction with existing Ibafon Oil Limited Calabar depot. He hinted that the existing tank farm facility has available land that can be utilized for the proposed modular refinery, with Qua Iboe crude selected as the preferred feedstock. He however, stated that though the refinery design will allow for a range of crude types to be processed, Bonny Light crude will serve as a secondary or substitute feedstock. In a related development, the Executive Secretary visited the NOGaPS site at Odukpani, Cross River State to assess the extent of work done in the first phase of the project. He expressed satisfaction at the quality of work done and commended the contractors, Messrs Megastar Technical and Construction Company Limited and Faithplant Global International Services Limited for their commitment in successfully completing the perimeter fence and sand-filling respectively.

NSE Confers Fellowship On Wabote, Ikuru The Nigerian Society of Engineers (NSE) on Friday conferred the rank of fellowship on Engr. Simbi Kesiye Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) for his outstanding contributions to the engineering profession and Local Content Development in the oil and gas industry. Wabote was decorated among 38 other eminent engineers, including the General Manager Capacity Building Division of the NCDMB, Dr. Ama Ikuru, at the 10th fellowship conferment lecture and ceremony held in Abuja recently.

Atume. Thereafter, Engr. Wabote was nominated to deliver the vote of thanks on behalf of the conferees and he thanked the NSE Council for bestowing the honour of fellowship on them. He noted that all the nominees were senior practitioners of the profession, who had made impressive contributions to the growth of engineering. He also promised that new fellows would continue to fly the flag of the society and uphold the responsibilities expected of them. Some staff of the NCDMB, friends and associates of Engr. Wabote and Dr. Ikuru were at the event to celebrate with them.

The new fellows were decorated by the President of the NSE, Engr. Adekunle Mokuolu and the Chairman of the Board Fellows, Engr. Felix

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

ENERGY WOMAN

2019 Women’s Day: LADOL, P4G Advocates Need for More Women Leaders

o mark this year’s Women’s Day, the Managing Director of Lagos Deep Offshore Logistics Base, LADOL; Dr Amy Jadesimi is advocating the need for more female leaders in the world. She said this is in line with 2019 International Women’s theme #BalanceForBetter in building a gender-balanced world where everyone has a part to play – all the time, everywhere. Gender parity is Goal 5 of the United Nations Sustainable Development Goals. However, women are not just beneficiaries of Goal 5, they are the key to achieving all the Goals. Research over the years has proven conclusively that gender parity, particularly in the work place will unlock billions of dollars in extra profits. Companies in countries in Africa, a continent poised on the verge of becoming the engine of the world, need to embrace Goal 5 to create the jobs that Africa needs. Commenting on the importance of having women in the C-suite and their contribution to sustainability, Dr. Jadesimi stated: “If you have women on your board of directors your company is going to be 42% more profitable than companies that don’t have female directors. Research shows that some of that

www.majorwavesenergyreport.com

benefit comes from the fact that women look at the world differently and that we more often make decisions and raise issues that lead to greater sustainability” Commenting on the work being done by P4G, Dr. Jadesimi stated: “Supporting women led-partnerships is an essential part of achieving the sustainable development goals and increasing corporate profits,” Commenting her on role as CEO of LADOL, Dr Amy explained that she has been privileged to have the opportunity to build a brandnew ecosystem from scratch – the world’s first Sustainable Industrial Free Zone. “Since joining the company in 2004 it has been clear to me that the winning business models of the future are sustainable ones. From inception LADOL has broken new ground and disrupted the local market by pursuing a new economy business model, which has now proven to be the winning strategy.”

“

African CEOs now know that our future lies not in emulating the West but in surpassing it, sustainable business models are one of our essential keys to success.”

and empowering women, she said LADOL supports SDG Goal 5 as a core part of its corporate policies and procedures, stating that: “As a company we go the extra mile to create a diverse environment and recruit the best people, which mean finding innovative ways to ensure the best women are considered as well. This focus on diversity, leads to hiring the best and building the most effective teams, which is one of the keys to our success.” “LADOL’s sustainable masterplan includes building fully serviced offices and workshops, which will enable more women in Nigeria to set up and expand their businesses by lower the financial and bureaucratic barriers to entry for women and providing a safe and sustainable work space.” Dr. Jadesimi reiterated that the Green Growth space is by necessity in need of highly disruptive innovation and brandnew business models, and therefore diverse, confident and skilled teams which embrace change are needed to build successful private and public sector organisations in this space.

I n l i ne w ith operati n g a sustainable Industrial Free Zone

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 9

GAS

Equatorial Guinea and Major Oil and Gas Companies Sign Definitive Agreements for Monetization of Gas from Alen Unit By Margaret Nongo-Okojokwu

he Ministry of Mines and Hydrocarbons of Equatorial Gu i ne a , h a s exe c ut e d Definitive Agreements with major oil and gas companies monetize to gas from the Alen Unit. The Agreements were signed on Monday 1st April 2019, at the ongoing APPO CAPE VII Congress and Exhibition 2019, in Malabo, Equatorial Guinea (EG) The Definitive Agreements have increased Sonagas’ stake in the EG LNG Plant by five percent Malabo, 1 April, 2019 – The Ministry of Mines and Hydrocarbons, on behalf of the Government of the Republic of Equatori al Guinea (EG), has executed Definitive 10

Majorwaves Energy Report

Agreements with the Alen Unit and respective Punta Europa Plant owners to monetize gas from the Alen Unit, located in Blocks O and I offshore Equatorial Guinea (EG) and operated by Noble Energy EG Ltd. The Definitive Agreements, which were signed at the ongoing APPO CAPE VII Congress and Exhibition 2019, in Malabo, Equatorial Guinea, on Monday, commit for tolling Alen Unit gas through Alba Plant LLC’s liquefied petroleum gas (LPG) processing plant and EG LNG’s liquefied natural gas (LNG) production facility, both located in the Punta Europa LNG terminal. Marathon Oil is the majority shareholder in both Alba Plant LLC and EG

MARCH - APRIL 2019, Vol 3 No 2

LNG. This agreement will see EG’s national gas company, Sonagas GE, increase its stake in the plant from 25 percent to 30 percent. Existing production and processing facilities are already in place at the Alen Platform and in Punta Europa. The Alen offshore platform will undergo minor modifications to export gas, while primary condensate will continue to be produced and lifted offshore via the Aseng FPSO. The Alen Unit joint venture will install and operate a 70km pipeline to transport gas from the Alen Platform to Punta Europa, where it will be processed and transported for sales in the global market.

www.majorwavesenergyreport.com

GAS

The pipeline will be capable of transporting approximately 950 million standard cubic feet of gas per day, with first gas expected in the first quarter of 2021. The Alen Unit gas monetization project will leverage the capacity of the world class Punta Europa facilities. Modifications are already underway at Alba to receive Alen Unit gas. No process modifications are expected at EG LNG to process Alen Unit gas.

gas assets in the country that must be developed. Development of the gas mega hub will ensure a thriving Equatorial Guinea gas industry into the future. It is my firm belief that it will create opportunities for development of our citizens in the upstream and downstream segments of the country’s oil and natural gas industry,” said Minister of Mines and Hydrocarbons, H.E. Gabriel Mbaga Obiang Lima.

The project will provide an additional source of gas for the Punta Europa facilities and will transform the Alen platform into an offshore gas hub for development of both Alen Unit gas, other Block O and I discoveries, and, potentially, additional Gulf of Guinea gas fields. The Alen Gas offshore hub will be the first hub in the Government’s vision of developing Equatorial Guinea as a gas mega hub, comprising of additional offshore gas hubs, all feeding gas into the Punta Europa facilities. “This is the kick off of our gas mega hub and we will do more deals on other

He added that the monetization of Alen Unit gas could deliver between $1.5 to $2 billion dollars in additional state revenue over the life of the project, including revenue from Alen Unit and respective Punta Europa plants. “Local content will play an integral role in the implementation of the project when it comes to contracting and jobs for our citizens. I am happy this project will support the employment of Equatoguineans employed by the Punta Europa plants and Alen platform, which currently stands at approximately 1,400 employees in total,” the Minister

noted. The Alen Unit is comprised of the Block O and Block I contractor groups. The members of the Block O contractor group are Noble Energy, which serves as the technical operator, Glencore Exploration Limited and Compañía Nacional de Petróleos de Guinea Ecuatorial (GEPetrol). The members of the Block I contractor group are Noble Energy, which serves as the technical operator, Glencore Exploration (EG) Limited, AtlasOranto Petroleum International Limited, Gunvor Resources Limited, and GEPetrol. The Punta Europa parties include Alba Plant LLC, Alba Unit and Equatorial Guinea LNG Train 1, S.A. (EGLNG). The shareholders in Alba Plant LLC include Marathon Oil, Samedan of North Africa, LLC (a subsidiary of Noble Energy Inc.) Sonagas. The shareholders of EG LNG’s holding company comprise Marathon Oil, Sonagas, Mitsui & Co. Ltd. and Marubeni Gas Development UK Limited.

Axxela Unveils $30mn Greater Lagos Iv Gas Pipeline Network, Elegbata Sports Complex

xxela Limited, has officially commissioned its Greater Lagos IV (GLIV) gas pipeline network and the newly renovated Elegbata Sports Complex. Greater Lagos IV (GLIV) is Axxela’s gas pipeline network, developed by its Gaslink Nigeria Limited subsidiary in partnership with the Nigerian Gas Marketing Company (“NGMC”). Spanning from Ijora through Lagos Island’s Marina axis, the $30 million pipeline will supply gas to commercial and industrial off-takers along its route, and already has First Power www.majorwavesenergyreport.com

and Island Power amongst its customers. Speaking at the event, Axxela Chief Operating Officer, Rasheed Olaoluwa remarked, “This occasion demonstrates our continued contribution to the growth of Lagos State’s burgeoning socio-economic landscape, and also reinforces Axxela’s commitment as trailblazers in the distribution of natural gas to industries, and we are immensely proud of this pioneering effort. There remains a considerable demand for power generation, and this pipeline extension project will revitalize industrial development across the metropolis. We are also delighted to commission the sports complex, affirming our promise and always-on engagement of host communities in our areas of operation.” The Lagos Sports Commission Chairman, Dr. Kweku Adedayo Tandoh, representing the Lagos State Governor, His Excellency, Governor Akinwunmi Ambode applauded Axxela for the initiative and its role in boosting economic

development in the state. He said: “I would like to thank Axxela for developing this sports facility which indicates its firm commitment to the welfare of its host communities. This project is a welcome development for denizens of Elegbata which signifies the many possibilities that abound from public and private partnerships and the significance of sports in the community. The Lagos State Government is steadfast in the provision of world class facilities under the umbrella of tourism, entertainment, hospitality, and sports excellence together.” As part of its sustainabi lity effor ts, A xxela also recently renovated Olowogbowo Methodist Primary School located within the neighborhood, in a bid to improve the quality of education available. Olowogbowo Primary School also defeated Dele Ajomale Primary school 1-0 in the first ever match held at the new facility.

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 11

ENERGY FINANCING

Shell, UBA Sign $200m Contractor Support Fund signed the deal on behalf of SPDC. “This funding will enable us to achieve our community content ambition of increasing participation of host communities in the SPDC value chain.” The General Manager Energy Bank of UBA, Ebele Ogbue, said the bank was committed to providing support to Nigerian companies through its partnership with SPDC JV. Ogbue, who signed the MoU for UBA, commended the Nigeria and community content efforts of Shell companies in Nigeria, noting that UBA was ready to provide the needed financial backing that would empower Nigerian companies to play more active role in the country’s energy sector and beyond.

he She l l Pe t r ol e u m Development Company of Nigeria Limited (SPDC) has upped its contractor support fund with $200 million in a latest effort to boost the financial capacity of vendors and suppliers in Nigeria’s oil and gas industry. This latest move brings the fund size to $2.4 billion. SPDC’s Director and General Manager, Government and Business Relations, Bashir Bello who signed the $200 million Memorandum of Understanding (MoU) with the United Bank for Africa (UBA) in Abuja on Friday described the initiative as a product of the

Majorwaves Energy Report

continuous effort by SPDC and its joint venture partners – NNPC, Total and Agip – to enhance Nigerian content and local participation in the nation’s oil and gas value chain. The fund provides support for contractors to finance projects executed for Shell companies in Nigeria in line with the aspirations of the Nigerian Content Act. To access the fund, the contractors must have a valid purchase order and meet the bank’s risk assessment criteria. “Findings indicate that lack of access to capital hinders many Nigerian companies from competing for and executing contracts effectively” said Bello who

MARCH - APRIL 2019, Vol 3 No 2

The Shell Contractor Funding Scheme started in 2011 with the Shell Kobo Fund, which gave rise to the Shell Contractor Support Fund in 2012. The scheme has been redesigned to address the current economic exigencies and to align it with stakeholder needs by merging the two initial initiatives. In 2016, Shell signed a $2.2 billion MoU with seven Nigerian banks that have since then disbursed around $1.5 billion loans to about 372 small- and medium-sized Nigerian suppliers and vendors in the oil and gas industry.

www.majorwavesenergyreport.com

LOCAL CONTENT

Abu Dhabi International Petroleum Exhibition & Conference Abu Dhabi National Exhibition Centre Abu Dhabi, UAE

www.adipec.com

TECHNICAL ABSTRACT SUBMISSIONS CLOSE ON 10 APRIL 2019

Technical Conference Call for Papers

NOW OPEN SUBMIT YOUR ABSTRACTS BEFORE Wednesday 10 April 2019

REASONS WHY YOU SHOULD SUBMIT ABSTRACTS FOR THE TECHNICAL CONFERENCE

Be part of an unparalleled gathering of 900 industry leaders speaking at ADIPEC, which includes global energy Ministers, CEOs, C-Suite Executives and more.

adipec.com/cfp TECHNICAL CONFERENCE PROGRAMME CATEGORIES: • Artificial Intelligence in Oil and Gas • Drilling and Completion Technology • E&P Geoscience • Field Development • Gas Technology • HSE • IOR/EOR • Offshore and Marine • Operational Excellence • People and Talent • Petroleum Advanced Analytics • Production Facilities Technologies • Project Engineering and Management • Unconventional Resources

Gain an unrivaled opportunity to network as an industry expert with over 10,000 technical engineers from around the globe.

Explore cutting-edge technologies, products and services showcased by over 2,200 exhibiting companies from 53 countries.

Raise your organisation’s profile and be recognised as a leader in your field of expertise.

DON’T MISS THE OPPORTUNITY TO SPEAK AT ONE OF THE WORLD’S LEADING OIL AND GAS TECHNICAL CONFERENCES

adipec.com/cfp

Supporters

Venue Partner

ADIPEC Host City

www.majorwavesenergyreport.com

Official Media Partner

Technical Conference Organised By

Majorwaves Energy Report

ADIPEC Organised By

MARCH - APRIL 2019, Vol 3 No 2 13

GAS

NNPC Pledges Support for Gas Development Projects in the Country …Charges NCDMB to Raise Nigerian Content, Commits To Gas Development By Margaret Nongo-Okojokwu

Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, has expressed the corporation’s commitment to support any project that would encourage production and utilization of natural gas for the benefit of the nation. Disclosing this recently at the signing ceremony of the Nigeria Liquefied Natural Gas Limited, NLNG, Train 7, Nigerian Content Plan, in Abuja, Baru, who was represented at the occasion by Saidu Mohammed, chief operating officer, COO, Gas and Power, said the signing ceremony was important as one of the major processes to bring the Train 7 project on board. He noted that the project had a lot of potentials that would benefit the nation, but called on the Nigerian Content Development and Monitoring Board, NCDMB, to ensure that Train 8 and any other LNG projects in the future should be designed to accommodate more local content in the fabrication of facilities.

Majorwaves Energy Report

Commenting on the corporation’s interest in the signing agreement, he said that the Train 7 project was in line with NNPC’s vision of prioritising the use of natural gas to the greater benefit of Nigerians. “Apart from being 49 per cent share holder in NLNG, we are more interested because it will enhance the development of gas in the country. Bringing the gas to this Train 7 would involve a robust gathering system that will connect trunk lines from offshore to the hinterland, looking beyond NLNG to domestic market, which will open up a flexible system that allows us to swing gas either way, depending on need. This implies that if NLNG is not running, the gas meant for it can be sent to the local market, and when the local market has difficulty in getting the gas consumed, same can be sent back to NLNG.

room for more Nigerian Content in subsequent LNG projects. The group managing director, GMD, called on other partners in the project to obey the rules of engagement. My fellow shareholders, please let us continue to provide the necessary support that NLNG as a company requires and always remain compliant with what we are signing today”. Earlier, in his address, Tony Attah, NLNG manag i n g director, expressed gratitude to the management of the NNPC for its roles in seeing the project to this critical stage. Similarly, Simi Wabote, NCDMB executive secretary, said that NNPC’s presence at the signing ceremony was an indication of the corporation’s commitment to ensuring that the Train 7 project gets to Final Investment Destination, FID, this year as projected

Baru stated that NNPC’s 49 per cent share in the NLNG meant more dividend to the corporation, even as he advised NCDB to make

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

GAS

Forum Urges NLNG Not To Change Contractors for Train 7 Project

he $12 billion Train 7 (T7) project got a boost as the Bonny Entrepreneurs and contractors Forum has assured the Nigerian Liquefied Natural Gas (NLNG) and the federal government that Bonny is ready for the project. T h e Fo r u m C h a i r m a n , Idawarifagha Benstowe, who spoke to newsmen after the forum’s inaugural meeting said: “We are hopeful that the Final Investment Decision (FID) for the NLNG Train 7 project would be signed before the end of the third quarter (Q3) of this year, as all stakeholders are very committed to see to the addition of the seventh train to boost the gas revenue of the country.” In a statement signed by all indigenous entrepreneurs and contractors, they demanded that B7 JV Consortium led by the KBR group should be given the right of first refusal for the construction of the LNG T7 project.

www.majorwavesenergyreport.com

“The B7 JV consortium, having constr ucted the si x trai ns effortlessly in line with global practice, with little or no loss time injury, safety of the environment should be awarded the T7 project by Nigeria LNG. According to them, B7 JV Consortium has the expertise which has been demonstrated six times in all of NLNG’s trains, hence their appeal to still considered as plans for T7 are underway. Benstowe, also added that the forum is a pool of indigenous entrepreneurs and contractors from Bonny Kingdom; the host community of NLNG, hence the acceptability by the community, “Bonny is ready for Train 7, our people have gained experience in virtually all aspects of the construction of LNG trains, having worked in six of such trains.”

vendors, skilled and unskilled labour are all on ground in the community, waiting to render services such as in -country fabrication of: Pressure vessels, pipe spools, Gratings, manhole covers, flare stack, communications mast, and fencing among others,” he added. It would be recalled that in July 2018, the NLNG signed the frontend engineering design (FEED) contract for the T7 project, in line with its goal of increasing LNG production from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA, but however failed with its shareholders to take a Final Investment Decision (FID) on the $12 billion expansion project scheduled for December, last year without giving a new date within which the signing would be actualised.

“The manpower, contractors,

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 15

DOWNSTREAM

Sahara Group Advocates Uniform Petroleum Products Standards in Africa …Charges NCDMB to Raise Nigerian Content, Commits To Gas Development

Tope Shonubi, the Executive Director, Sahara Group has told stakeholders at the African Refiners Association (ARA) meeting in Cape Town, that adoption of unified standards across Africa will create a bigger and more effective regional market that will enhance the continent’s competitive positioning in global energy markets, Shonubi said the existence of a fragmented petroleum products market with different product specifications, sulphur content and emission requirements remains a huge stumbling block to accessing the benefits that can accrue from intra-regional trade in the sector. “Adoption of similar specifications and standards has been achieved across Europe and most of North America creating a single larger market for petroleum trade. While gasoil specifications remain fragmented across Africa, jet fuel specifications are almost completely unified across the world. This similarity has improved the ease of trading jet fuel across borders, ensured access to a wider market and enhanced competitiveness in 16

Majorwaves Energy Report

the aviation industry,” he said.

to a larger customer base.

Shonubi urged all stakeholders to embrace the AFRI-4 standards which were the outcome of a partnership between ARA and the World Bank to promote the adoption of a single standard for cleaner fuels.

Shonubi said Africa must accord the prospects of intra-regional trade the urgency it deserves to ensure accelerated economic development. “In line with the vision of a harmonized Africa, Sahara Group is building an integrated energy business across Middle Africa to harness the potential of intraregional trade. We are delighted to be one of the first African companies to carry out full cycle crude and product trade transactions using only African resources within the continent. All transactions were carried out by Africans for Africans using African resources. The future of our business depends on how well we can work together across Africa.”

According to him, “the adoption of the Afr i- 4 Specif ications will guarantee unified product standard across the reg ion, ease of intraregional petroleum product trade, reduction i n bu l k t r a n s p o r t at i o n c o s t s and optimization of regional infrastructure. This will ultimately make Africa a more influential economic block” He added that unified standards would de-fragment African markets resulting in favourable economies of scale in intraregional trade, regional harmonization of taxes and excise duties, reduction in smuggling and adulteration of products, improved local refining capacity, reduced landing costs of petroleum products, joint infrastructure projects as well as export diversification and access MARCH - APRIL 2019, Vol 3 No 2

He concluded by urging ARA members and other stakeholders in Africa’s energy sector to work towards developing a competitive African Brand. “Africa countries cannot hope to shape globalization or even retain marginal relevance individually. It is only by working together that we have the weigh to influence the big picture.”

www.majorwavesenergyreport.com

DOWNSTREAM

NNPC Insists Pump Price of Petrol Remains N145 per Litre per litre. The Corporation also cautioned petroleum products marketers not to sell the product above N145 per litre.

The Nigerian National Petroleum Corporation (NNPC) has warned depot owners or terminal operators not to sell Premium Motor Spirit, otherwise called petrol, above the official ex-depot price of N133.28k

Ex-depot price is the ceiling at which depot owners or terminal operators sell products to marketers, while the pump price of a product is the amount consumers buy it from fuel stations. A release in Abuja by the corporationâ&#x20AC;&#x2122;s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said the subsisting ex-depot petrol price of N133.28k per litre was consistent

with the Petroleum Products Pricing Regulatory Agencyâ&#x20AC;&#x2122;s (PPPRA) template and should be adhered to. Mr. Ughamadu stated that NNPC held stock of over 1billion litres, adding that imports of 48 vessels of 50million litres each have been committed for the month of April alone. He advised Nigerians to remain vigilant and volunteer information to the Department of Petroleum Resources (DPR), the Industry regulator or to any law enforcement agency around them, on any station which sells petrol beyond N145 per litre.

OGTAN Goes to the Polls As new executives emerge... By Jerome Onoja next two years. The elections which held on the 29th of March 2019, had representatives from the Petroleum Technology Development Fund (PTDF) and the Nigerian Content Development and Monitoring Board (NCDMB) on the electoral committee.

he Oil and Gas Trainers Association of Nigeria has held its general elections

www.majorwavesenergyreport.com

ushering in a new set of National Executives that will run the affairs of the association for the

The new set of National Executives are Dr Mayowa Afe, who is returned as the President, Mazi Samuel Azoka Onyechi as Vice President, Afolabi Davidson as General Secretary, Erae David as Assistant General Secretary, Matthew Olaleye as Financial Secretary, Azogu Ifediora Chukwunyelum as Treasurer, Emmanuel Emielu as Publicity Secretary, and Austin Ogu as University Liaison Coordinator .

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 17

UPSTREAM

Qatar to help South Sudan increase oil production

outh Sudan’s Oil minister Ezekiel Lol Gatkuoth met in Doha with Qatar National Bank’s Acting Director General, Mubarak Al-Khalifa, to seek the institution’s support in the plan. Juba to bring production to 300,000 barrels a day. The head of Qatar’s public bank agreed to accompany the young state in this process. However, discussions on how Qatari investments will develop local supply are still at an early stage.

“Together with Qatar, we have a lot of work to do to boost oil production. I am convinced that with Qatar National Bank and our local partners, we will go far , “ said the South Sudanese minister after the meeting. According to the Qatari press, the two officials also discussed ways to improve ties in the areas of trade, economic development,

infrastructure and support for SMEs. With 2% of the world’s oil reserves, Qatar has long experience in the oil sector. But this year, the country should abandon the exploitation of oil to focus on natural gas. An area in which, he plans to reach an annual production of 110 million tons of LNG by 2024, against 77 million today.

Aker Energy Submits to Government of Ghana $ 4.4 Billion Development Plan for DWT / CTP Block

orwegian company, Aker Energy has announced that it has formally submitted to

Majorwaves Energy Report

the Ghanaian government the development plan for the DWT / CTP offshore block reserves. The $ 4.4 billion plan will see an initial 334 million barrels of oil on a plateau of 110,000 barrels a day. According to the development plan, the first drop of oil should flow on site in 2022. A few weeks ago, Aker planned to start production in 2021. It must be said that the planned investment excludes the charter rate for the rental of a floating production, storage and offloading vessel (FPSO).

MARCH - APRIL 2019, Vol 3 No 2

On-site resources could reach 1 billion barrels, according to data produced by Aker. Future ex ploration campa i g n s w i l l confirm or refute its predictions of the billionaire-controlled firm Kjell Inge Rokke. If developed, the Pecan field, discovered on the block, could become the fourth producing area off Ghana. Aker operates the block with 50% of total holdings. Its partners are Russian Lukoil (38%), Ghana National Petroleum Corporation (10%) and Fueltrade (2%).

www.majorwavesenergyreport.com

Industry Events in Pictures

www.majorwavesenergyreport.com

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 19

NIPS Photo Gallery

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

INTERVIEW

Our Lack of Infrastructure Means That We Have Not Created The Demand Centres We Need to Justify Keeping Our Oil and Gas on the Continent - NJ AYUK

J AYUK is the CEO of Centurion Law Group and author Big Barrels. Originally from Cameroon, NJ is a leading energy lawyer, entrepreneur and Africa development specialist. In 2009, he founded Centurion Law Group, a Pan African law firm, implanted across the continent. A dealmaker and advisor to investors, he has acquired an extensive knowledge of the energy legal framework in Africa and on-the ground experience. He is also the author of Big Barrels, a book which gives an insider view of how developing petroleum resources can positively impact the continent: www.bigbarrelsbook.com. NJ is the driving force behind Africa Oil &Power (AOP) conference. He is one of the founding members of the African Energy Chamber of Commerce which was formally established early June last year. He is also a driving force behind Africa Oil & Power. NJ speaks with MAJORWAVES ENERGY REPORT about the growing need for local content implementation in Africa and the exciting Year of Energy in Equatorial Guinea. Excerpts.

It has been a short period since the launch of Equatorial Guinea’s Year of Energy, but have you seen changes in the sector across Africa. For example, more cross border co-operation or more openness from investors to look at projects in Africa? Lots of changes are underway in Equatorial Guinea. The launching of the country’s one-stop shop and its very first mining bidding round are very important developments both for the country’s ease of doing business and for the diversification www.majorwavesenergyreport.com

of its extractive industry and economy. Equatorial Guinea has managed to impose itself as an energy leader not only in the Gulf of Guinea, but in Africa. Across the rest of the continent, we are seeing lots of changes on the regulatory and business fronts. Major economies are reforming their legislation to incentivize investments in oil and gas, like Angola, Senegal, Congo or Gabon. Energy cooperation in Africa is also increasing, though it remains too low. Cross-border energy projects like the NigeriaMorocco gas pipeline, the Niger-

Majorwaves Energy Report

Nigeria pipeline or the UgandaTanzania pipeline are signs that African nations are talking to each other, cooperating and finding ways to create a common and mutually beneficial energy future. At an OPEC meeting in December 2018 the Mines and Hydrocarbons Minister of Equatorial Guinea said that we are “in a complex period for the oil and gas industry.” Can you elaborate on that? And explain how that is specifically true for Africa?

MARCH - APRIL 2019, Vol 3 No 2 21

INTERVIEW

Global oil markets are just out of a 3-year downturn due to lower oil prices. We now need to be prepared to sustain an era of lower commodity prices. The days when an oil barrel could be sold for over $100 are over. At the same time, the geopolitics of the market have changed too. The US is not longer importing any oil, it is now the world’s biggest producer and a big contributor to the global supply glut causing oil prices to be so low. Traditional producers such as Venezuela or Libya are facing internal challenges that are affecting their production levels. On the other side, new producers are coming to the market, especially in Africa. In Africa, traditional producers like Nigeria, Angola, Equatorial Guinea or Gabon are struggling with a declining output due to maturing fields. Meanwhile, new producers such as Ghana or producers making a comeback such as South Sudan are now competing for the top spots in terms of output. That puts pressure on African nations to boost exploration and discover more reserves, at the same time when lower commodity prices means investors are more selective. What major projects have you seen, in the beginning or planning stages, to diversify Africa’s energy mix? Also, am I right in saying that the lessons learned in the downturn of the petroleum price made it important for African countries to diversify their energy mix? The diversification will come a lot from gas and renewables. Looking at master plans such as Senegal’s or South Africa’s shows that natural gas is about to play a much bigger contribution to our energy mix. Diesel power plants and coal-fed ones are increasingly being converted into gas, and the completion of such projects will make our energy mix cleaner, cheaper and more efficient. Since 2014, African nations have realized that not only do they need to diversify their energy mix, they above all need to diversify their economies. Over reliance in one commodity, be it oil, gas or even cocoa, ultimately leads to being very dependent on prices f luctuations you cannot control. African oil nations need to use the revenues from oil to finance their economic diversification agenda.

Majorwaves Energy Report

One of the biggest hurdle in Africa is the lack of infrastructure. It makes production more expensive than in the Middle East for example. Will infrastructure be among the discussions in Malabo? The higher cost of production in Africa is more a factor of the nature of our reserves, mostly located offshore and in deep-water, rather than a lack of infrastructure. Oil and gas production in the Middle East is largely onshore which is why the cost of production is so low. Our lack of infrastructure has bigger consequences when it comes to the transportation and processing of our oil and gas. Africa’s pipeline network is massively under-developed for instance, and so is our refining and downstream infrastructure. Lack of processing infrastructure means that we have not created the demand centers we need to justify keeping our oil and gas on the continent. It is more profitable to export LNG to Asia than to use our gas to produce electricity, fertilizers or petrochemicals because such facilities are lacking. Similarly, the lack of refining capacity means that we need to export our oil abroad only to re-import it later as refined petroleum products. This is where investments into infrastructure can make a big difference for our trade and fiscal balances.

Foreign companies are welcomed because they bring the capital and technology that Africa needs to develop its energy sector. The right local content frameworks are those that recognize the need for foreign capital and expertise while implementing the right mechanisms to maximize their presence for the development of local talent and capacities. Where local content is lacking one often finds local content regulations that are not adapted to the conditions of the market, or that are not implemented. Where local content is succeeding, one finds well-suited local content frameworks. Making local content a reality is a matter of properly assessing a market’s needs and existing capacities, and developing the right tools and frameworks to develop those capacities accordingly. Developing national training and educational institutes is a good way forward, such as Senegal’s newly-opened Institut National du Petrole et du Gaz. These allow an early training of local talent so that once the industry develops; you have a pool of well-trained local citizens to mobilize and hire to build the industry.

The African Union Free Trade Zone project is becoming more of a reality. How can the energy and petroleum sector benefit from a single continent-wide trading zone? And how can the sector help in making it a reality? For t he ene rg y s e c t or, t he implementation of an African Free Trade Zone will go a long way in supporting the development of regional electricity markets. Their development has remained a challenge not only for Africa, but for the rest of the world. We see the free trade agreement as being a considerable step forward in encouraging cross-border trade in electricity, which already exists in part of Africa. Smaller African nations will benefit most from this, providing infrastructure is at scale and functioning. Finally, you have been a proponent of Local Content in the energy and petroleum sectors. How do you see that being made a reality given the challenges the industry faces?

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

COMMUNITY REPORTS

HYPREP in Tripartite Collaboration with SDN, IITA

n implementing one of the recommendations in the UNEP Report to provide alternative source of livelihood for the people in oil-impacted communities of Ogoniland, the Hydrocarbon Pollution Remediation Project, HYPREP, has trained 15 Ogoni youths on fabrication of cassava processing machines. Project Coordinator of HYPREP, Dr Marvin Dekil, said the agency in a tripartite collaboration with Stakeholders Democracy Network, SDN and International Institute of Tropical Agriculture, IITA, developed the template for the training to empower the Ogoni youths. Deikil spoke at the event to mark the passing out of the 15 Ogoni youths, which represents the first batch of Ogoni people trained in fabrication and welding of cassava processing machines at IITA in Onne, Rivers State. He reaffirmed the commitment of the Federal Government to the cleanup of Ogoni and also assure the people of Ogoni that HYPREP will implement the UNEP Report to the later. According to him, “Three months ago we ushered in 15young men and women to a life transforming training in the fabrication of machines for the processing of cassava.

previous training or skills in machine fabrication. today, we are here to see a group of youths who are determined, focused, ready to leverage on the opportunities provided by this training to change their lives and be ambassadors of their communities.

“It has been a long journey for the trainers, who before now had

Also speaking, Head of Station, IITA On ne, Dr. Richardson

www.majorwavesenergyreport.com

“

At HYPREP, we will ensure that our skills are put to good use as a cassava processing center will be set up to generate income and also create economic hub for the community.” Dekil who was represented at the event by the Head of Legal Services, HYPREP, Grace Ekanem, also announced that the agency will train more Ogoni women in the livelihood program, while commending IITA and SDN for the rich course content and facilities made available for the the training. “Moving forward, HYPREP will train 400women, a hundred from each of the four LGAS of Ogoniland in different skills by the United Nations Institute for Training and Research, UNITAR, at Songhai farms for six months. “The training will o in batches until a total of 1200 Ogoni women are trained in the livelihood program.”

Majorwaves Energy Report

Okechukwu, described the centre as a training centre on agrobusiness and crop value-chain with specialization in cassava, plantain, maize, banana etc, as well as postharvest processing. Okechukwu said the beneficiaries have been trained on how to fabricate basic cassava processing machines such as roasters, graters, presser, bhurr mill, sifter, peeling machines and cabinet dryer. For his part, the Senior Project Officer, SDN, Jesse-Martin Manufor, expressed optimism that graduating trainees will themselves become trainers to train others, as well as set up cooperatives for easier access to other forms of empowerment. He said they will continue to partner with HYPREP to help improve the livelihoods of the Ogoni communities. “The choice of this skill was well thought out, since cassava is a staple food around this area and Nigeria is the highest producer of cassava in Africa. “So this training in essence is adding value to cassava which in turns get garri, starch, flour etc. We are happy with the collaboration with HYPREP and IITA, the training hasn’t stopped, we are going to set up cassava processing plants in Ogoni where the trained youths will process surplus cassava planted in Ogoni for sustainable development.”

MARCH - APRIL 2019, Vol 3 No 2 23

COMMUNITY REPORTS

Aiteo Confirms No Life Lost In Nembe Creek Oil Pipeline Explosion

iteo Exploration Ltd, operator of the 97 kilometre Nembe Creek Trunk Line (NCTL), has confirmed there is no loss of life in Friday’s explosion on the crude export pipeline. Aiteo officials said that the fire from the explosion, which burned till Saturday, had been put out without loss of life. The NCTL situation, with a capacity of conveying 150,000 barrels of crude daily to the Bonny oil export terminal, will adversely affect crude export, having been put out of use. A Public Relations Manager of Aiteo, Mr NdianaAbasi Matthew, confirmed the incident to the News Agency of Nigeria in a phone message on Saturday.

at the moment but I can gladly inform you that the fire has been contained and no lives were lost,” Matthew said. NAN learnt that the oil export line was shut for emergency repairs following a leak when the incident occurred and discharged residual crude and gas trapped in the pipeline. Shell Petroleum Development Company (SPDC), in 2015, divested its equity in OML 29 and transferred its interest in NCTL for $1.7 bn to Aiteo, an indigenous Oil and Gas Exploration and Production firm. Community sources at Nembe in Bayelsa have bemoaned the negative impact of the explosion, saying that the incident led to both gas leakage and oil spill, compelling them to flee.

“There is no official statement

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2

Spokesperson for the Nembe Chiefs Council, Chief Nengi James– Eriworio, who confirmed the development, said the explosion caused massive destruction of the area with air and water heavily polluted. “People have deserted the area and the company has refused to respond in spite of series of emergency calls to report the incident to them “As at early morning of Saturday, the fire is still raging. And with gas and crude leak flowing freely, you can then imagine the fate of our people.

“

The poor response of Aiteo to this incident is not acceptable and questionable. The people are traumatised and their health put at risk” James-Eriworio said.

www.majorwavesenergyreport.com

HOSTED & ORGANISED BY:

SAVE THE DAT

YOUR UPSTREAM CONNECTIONS INTO AFRICA Advance Notice

REGIS

Featuring the Africa E&P Summit & Exhibition, London SkylineTER NOW Networking Reception & *Africa SAV E&P Summit Gala Dinner E THE DAT

IET London: Savoy Place, 22 - 23 May 2019 The Africa E&P Summit and Exhibition brings together Africa’s upstream industry at a world-class venue in London for a unique event shaped for companies active in Africa’s oil & gas game and provides unrivalled insight into the Continent’s fast

changing exploration horizon. Hear directly from key players and decision-makers from corporate players active in Africa through Advancindependents, to fast-moving finance, legal e Notice and service & supply companies and African governments and NOC’s seeking investors.

* The Africa E&P Summit Gala Dinner is open to registered attendees of the Africa E&P Summit only and separately bookable.

2019 Confirmed Sponsors & Exhibitors

Event highlights • • • •

Uncover the leading edge on Africa’s E&P hot spots Enjoy the Africa E&P Summit Gala Dinner Attend the London Skyline Networking Reception Hear from Africa’s leading E&P companies

• • • • •

50+ world class speakers over 2 days High-level C-Suite networking Africa Licensing Promotion & NOC Showcase Excellent Sponsorship & Exhibition opportunities Opportunities, outlook, risks & challenges

www.africaepsummit.com | Tel: +44 20 7193 8224 | email: info@frontier-communications.com www.majorwavesenergyreport.com

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 25

Strategic positioning for coming Nigerian projects: Are investors willing? By Jerome Onoja, Godspower Ike

he African petroleum industry had been termed the emerging frontier of the global energy landscape and a large number of projects have been lined up in the coming months. These projects are expected to drive investors’ interest and attract the much-needed foreign investment into the continent. This article explores the various opportunities in the Nigerian and African petroleum industry, and the willingness or nonwillingness of investors to tap into these opportunities. A number of big ticket projects are expected in the Nigerian petroleum industry in the next couple of years, across all strata of the sector, both the upstream and downstream sectors, and the Federal Government of Nigeria is already putting in place measures to attract investors to 26

Majorwaves Energy Report

these projects. However, despite the availability of these projects, some questions on the minds of energy experts are: if these projects are attractive enough for investors to stake their funds and if these investors are willing to invest in the African continent?

Baru disclosed that close to $194 billion had been earmarked to be spent between 2018 and 2025 on 93 upcoming oil and gas fields in Africa, while he noted that there had been a surge in the capital expenditure (CAPEX) across Africa’s oil and gas sector.

Group Managing Director of the Niger ian National Petroleum Corporation (NNPC) Mr. Maikanti Baru, had disclosed that Africa’s energy outlook was looking positive amid difficult operating and economic headwinds. He explained that over 41 billion barrels of oil and 319 trillion cubic feet of gas were yet to be discovered in sub-Saharan Africa alone, while adding that between 2008 and 2017, exploratory success in the sub-region was at least 45 per cent. MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

COVER STORY He stressed that several new frontiers for exploration opportunities abound in Nigeria, even as offshore discoveries in the country have mostly been limited to between 1,000 - 1,500 metres of water depth. Beyond these water depths, Baru stated that the new frontiers of ultradeep waters needed to be tested, adding that that is where Nigeria and other African countries need the investors. Mr Ajibola Oyebamiji, President of Nigeria Association of Petroleum Explorationists believes the decision by the NNPC to extend the search for hydrocarbon into the frontier basins is a welcome development. He restated his remark that the search should go beyond the Kolmani river into neighbouring states like Bauchi, Bornu and places with similar geological formations.

Out of this $194 billion, Baru revealed that Nigeria accounts for $48.04 billion, representing over 24.8 per cent of the total CAPEX has been earmarked for upcoming projects in Africa between 2018 to 2025, with more than 20 planned projects in Nigeria. He observed that 23.8 per cent of the CAPEX in Africa would be spent in Mozambique, 11.3 per cent in Angola while about 29.2 per cent would be spent in Tanzania, Senegal, Mauritania, Uganda, Egypt, Algeria and Kenya combined. Baru noted that with more than 14 oil producing countries, Africa currently accounts for 7.5 per cent, representing about 126.5 billion barrels of crude oil, and 7.1 per cent, representing 488 TCF of gas of global proven oil and gas reserves respectively.

www.majorwavesenergyreport.com

He maintained that in terms of production, the continent accounted for 8.7 per cent, about 8.1 million barrels per day of global oil production and 6.1 per cent, about 21.8 billion SCF per day of global gas production, even as it consumed four million barrels of oil per day and 13.7 billion SCF per day of gas, equivalent to 4.1 per cent and 3.9 per cent of global oil and consumption respectively. Shedding more light on investment opportunities in Nigeria, Baru observed that the NNPC’s Frontier Exploration Service was currently drilling the Kolmani River-2 Well where desktop estimates revealed that about 400 billion SCF of gas is expected to be encountered.

Acknowledging the fact that Nigeria has an enormous gas reserve, he believes that if well harnessed, with the right infrastructure and policies, Nigeria should witness its industrial revolution in no distant future. In addition, in its review of the African petroleum industry, Menas Associates noted that recently, much attention has been focused on the promising north-west, with examples including: Woodside’s $446 million acquisition of ConocoPhillips’ 35 per cent stake in three deep-water blocks in Senegal; BP’s farming into Kosmos Energy’s six offshore blocks in Senegal and Mauritania for $916 million. The report by the company disclosed that the outlook seems encouraging, with North and West African countries positioning to attract the most investment.

“However, the ability of both Senegal and Mauritania to work out their differences to ensure a more sustainable development of their offshore reserves and facilities around the MSGBC Basin is a factor to watch out for.”

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 27

COVER STORY According to the report, recent exploration successes in Egypt, Senegal, and Côte d’Ivoire, and renewed stability and political confidence in established producing provinces in Mauritania, Morocco, Ghana, Gabon, and Equatorial Guinea, has encouraged greater optimism about the years ahead. It, however, added that, in the continent’s largest economy, Nigeria, there continues to be significant opportunities for current and new investors, particularly as the majors divest their onshore and shallow water acreage to concentrate on deepwater. According to the report, much of this confidence would be tied to President Buhari’s health and stability, his promised fight against the country’s systemic corruption (which has seen positive breakthroughs), and continuing peace in the Niger Delta. Looking east, the report noted that several African governments — exemplified by the World Bankfunded project in Kenya, Uganda’s 2020 pipeline, and the reforms and legislation introduced in Somalia — have introduced new initiatives aimed at improving the environment for new capital, whilst reducing the burden on the oil and gas sector, so as to facilitate smoother transactions. It added that with a shift towards the introduction of investor-friendly legislation, economic reform, and infrastructure development, Africa, an especially Nigeria, would provide a more stable environment for new green-field exploration, and additional investment in existing production assets. African Energy Chamber, in its report titled, ‘10 developments to shape Africa’s energy sector in 2019’, disclosed that Africa’s come back on the global oil and gas map was not only due to the vast natural resources found in its soil and waters, but also to the continent being home to mega energy projects set to transform the future of the industry. It said, “On the upstream side, the recent intergovernmental cooperation agreement between Senegal and Mauritania, and BP’s FID on its cross-border Greater Tortue Ahmeyim development, bodes well for the future of West Africa’s hydrocarbons industry. The project aims at extracting the 15 TCF of gas estimated to be held in the Tortue gas field, located at a depth of 2,850 metres.

sustainable development of their offshore reserves and facilities around the MSGBC Basin is a factor to watch out for.” It added that, “African mega gas projects are not the sole property of the continent’s West coast, with Mozambique moving forward with two landmark projects putting the Southern African nation on the global LNG map. “Following the launch of the Coral South FLNG project by ENI in June 2017, a FID is now expected in the coming months for the Anardarko-led Mozambique LNG project, an onshore LNG development initially consisting of two LNG trains totaling 12.88MTPA to export the gas extracted from the offshore Area 1, estimated to contain a whooping 75Tcf.” It added that sub-Saharan Africa’s biggest petroleum producers, Nigeria, is also moving forward with massive oil development projects in 2019. It said, “Last year already saw the launch of Total’s $3.3 billion Egina FPSO in Nigeria, where production officially started in the first days of 2019 and is set tko peak at 200,000 bopd. “FID is now expected on Shell’s Bonga Southwest offshore field in Nigeria early this year, a multi-billion-dollars development whose production is expected to reach 180,000 barrels of oil per day, bopd.” Referring to a compendium of existing and coming projects released by the Nigerian Content Development and Monitoring Board, NCDMB, Dr Afe Mayowa, President of Oil and Gas Trainers’ Association of Nigeria, OGTAN, is quoted to have said, “These identified projects are opportunities to develop human capacities that will run them.

Afe added, “there are always “However, the ability of both opportunities in Nigeria, but I Senegal and Mauritania to work out appreciate the fact that the NCDMB their differences to ensure a more 28 Majorwaves Energy Report MARCH - APRIL 2019, Vol 3 No 2

has taken time to identify and publish them. That’s why our drive to categorize our members is timely. Categorization will help our member companies fit in whenever and wherever opportunities are identified from any part of the world. Also speaking, Dele Kuti, global head of oil and gas for Standard Bank Group, noted that since many of the new oil and gas finds are in Africa’s fast-growing emerging and frontier markets, as well as in Nigeria, the continent’s rapidly growing consumer and infrastructural opportunities, adds to the rationale for locating new oil and gas developments on the continent. He said, “It makes economic sense for oil majors and leading independents, comprised of a group of the world’s largest oil companies, to pursue opportunities across the oil and gas value within the African economies in which these resources are found.” In addition, in its report titled, ‘Africa’s opportunity as a global oil and gas hub,’ African Law and Business (ALB) noted that a host of new finds, gradually entering into production, across Ghana, Kenya, Mozambiq ue, Senegal and Mauritania, Tanzania and Uganda, have significantly boosted sub-Saharan Africa’s traditional upstream players. According to the report, Senegal, for instance, has seen investment from oil exploration companies, Cairn Energy and Kosmos Energy, respectively, discovering some of the largest offshore gas deposits between Senegal and neighbouring Mauritania’s territorial waters. It added that North Africa also offers opportunities, with Egypt’s return being promising. It further stated that exploration was also continuing in a number of other prospects, which had transformed the continent’s energy outlook – as well as its relevance to global energy markets. However, despite the attractiveness of the opportunities on offer in Nigeria and across the African petroleum industry, Standard Bank disclosed that beyond raising capital, the capability to execute across the whole value chain is, in fact, often the biggest challenge for local businesses and global majors alike when seeking to tap Africa’s vast oil and gas potential.

www.majorwavesenergyreport.com

COVER STORY In a report on opportunities in the industry, the bank, which had indicated its interest to invest in the continent petroleum industry, noted that although initial capital i nvestments i nto th is sector would accrue to non-domestic manufacturers, the impact thereof will lead to developments of new domestic sectors and new supplier networks. The bank explained that the successful development of these projects in Nigeria and the continent, would boost fiscal revenues, enhance national capital formation and positively impact the balance of payments. It said, “Similarly, as with the example of cellular technology, Africa has the potential to benefit from a number of industry technological developments, for example, Floating Liquefied Natural Gas (FLNG), Floating Storage & Regasification Units (FSRU) and modular product storage.

“

Taking them together, one begins to understand the full potential of the investment and development synergies likely to arise as more oil majors bring investment and expertise to building Africa’s future oil and gas capacity and synergies.” In addition, in a report titled, ‘Investing in Africa’s extractive industr ies: Chal lenges and opportunities,’ the Minister of Energy and Mineral Development of the Republic of Uganda, Engineer Irene Nafuna Muloni, listed the challenges involved in investing in the African petroleum industry, Nigeria inclusive, to include managing expectations of the indigenous people. According to her, the planned development of extractives and their related activities have raised the expectations of many Africans about the potential for; increased employment opportunities, industrial development, energy supply, tax revenue and overall economic development. She identified other challenges to include inadequate specialized skills relevant to the extractive in Africa; inadequate competitiveness at international level for most of the enterprises to support the extractive industries; and limited financial capacity of African or indigenous enterprises to support the extractive industries. Others, according to her, include the high cost of available local finance; low level of technology within Africa; inadequate infrastructure; www.majorwavesenergyreport.com

acquiring surface rights for mining by investors; and sustainable environmental management of the affected areas involved in resource harnessing. On its own part, Menas Associates noted that stakeholders have found it difficult to raise the necessary funds for new projects in Africa, especially in Nigeria, due to the very limited market capital for African exploration. It noted that the majors and larger independents have been the main drivers of activity, but mid-sized firms are now beginning to become more active as confidence about the oil price stabilising at over $50 a barrel continues. However, despite the challenges, the African Law and Business (ALB) disclosed that investors are beginning to indicate interest in the Africa’s petroleum landscape. For instance, it noted that Standard Bank, which partners with Industrial & Commercial Bank of China (ICBC), aims to work with both local and global energy players eager to participate in the development of the world’s last oil and gas frontier. “It is easy to see why; the Financial Times reported in March 2018 that Beijing had invested $34.8 billion in the continent’s energy infrastructure since 2000, having attracted more Chinese state lending for energy infrastructure than any other region last year, with $6.8 billion being invested by China’s state-owned development banks, like ICBC,” the report noted. It quoted experts as saying that gas discoveries in Mozambique had consequently led to further developments, with the latter country set to benefit from more than $30 billion in planned energybased investments, mostly offshore, by companies including Anadarko, Eni and Exxon. Furthermore, African Energy Chamber disclosed that ongoing bidding rounds kin key existing and new African hydrocarbons markets will tell if Africa further confirms its position as the world’s new exploration hotspot and manages to attract necessary investment in its oil and gas acreages.

struggling to implement their new Hydrocarbons Codes, the success of these rounds will tell if investors have been convinced by policy reforms developed over the past two years,” the Chamber declared. The AEC also added that two bigger African producers and also OPEC members, Nigeria and Angola, are set to launch landmark and out-of-the-ordinary bidding rounds this year. According to the report, Nigeria will auction its gas flare sites under the Nigerian Gas Flare Commercialisation Programme, likely to happen after the February general election, and Angola will hold its Marginal Fields Bidding Round. It said, “With the Nigerian Petroleum Industry Bill yet to be signed and the ink still fresh on Angola’s new policy regime, both rounds will also be key in assessing investors’ interest for both countries’ business environments,” the Chamber explained. To this end, as the NNPC boss, Maikanti Baru, had stated, unless issues related to legal and regulatory uncertainties, lack of infrastructure, skilled manpower shortage, transparency and accountability are addressed amongst key stakeholders, Nigeria, and indeed, the continent’s oil and gas industry may not achieve its full potentials and would continue to scare investors away, despite the continents immense potentials. Mr Bank-Anthony Okoroafor, the Chairman of Petroleum Technology Association of Nigeria (PETAN) decried the uncertainty in Nigeria’s regulatory and fiscal frameworks. He wonders why the PIB in Nigeria’s national assembly was still lagging since 2008. Meanwhile, Tanzania passed two laws in July 2017 allowing the government to forcibly renegotiate contracts, among others. Commenting further, he stated that with Africa’s 128 billion barrels or 7.5% of world proven oil reserve, and 503.3 Tcf (86.8 billion BoE) or 7.6% of world’s proven gas, the continent, and Nigeria by extension is under explored, though with a huge hydrocarbon potential and a readily available market.

“Amongst well-established African producers, OPEC members Gabon and Congo-Brazzaville each have ongoing bidding rounds. Gabon’s 12th shallow and deep-water licensing round is set to close in April 2019 and CongoBrazzaville’s License round phase II in June 2019. “With both countries

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 29

SOCIAL INVESTMENT

11Plc Boosts CSR Investment … Renovates 21 Classrooms In Apapa Lagos

ead i n g oi l major ,11plc ,formerly Mobil Oil Nigeria Plc , has raised the bar in social investment with the renovation of two building structures consisting of twenty one classrooms at Baptist Primary School ,Marine Beach ,Apapa Local Government Area ,Lagos State as part of its corporate social responsibility initiatives in its host community. The multi million naira infrastructure upgrade which was embarked upon as part of the company’s cardinal programme of giving back to the communities where it operates has been handed over to the state government through the State Universal Basic Education Board [SUBEB] . The decision of the oil giant to once again intervene in the development of Apapa Local Government and its environs followed an appeal from the school to carry out the rehabilitation of their building through Marine Beach Community head ,their counselor in the LG and representative of the LG who visited 11Plc office on the issue . Baptist Primary School is within Apapa LGA and was in a very deplorable state with 8090 per cent of the building roofing sheets blown up leaving the upper floor of the three storey structure out of use and the walls in dire need of repainting . The pupils of the school and teachers alike were also having a hard time coping with the rigors of using the facility thus inhibiting conducive learning opportunities in the school. The Managing Director 11Plc, Mr Adetunji Oyebanji said the company took the opportunity

Majorwaves Energy Report

to rehabilitate the school on four different fronts namely: giving back to the host community; creating a conducive learning environment for the pupils and other stakeholders; responding positively to the request of the community heads and government agencies; and avenue to the company’s positive contributions to its customers and community to reinforce its brand equity and corporate image. He pointed out that the school is not only [popular within the company’s immediate community as it is one of the biggest in the LG and operated since the 1960s stressing that the gesture will go a long way in deepening and reinforcing the harmonious relationship between 11PLC and her host community as well as government agencies .

‘

’We are always happy and delighted to give back to our community and the environment as a whole .Without the peace ,cooperation and support of the host communities I am certain businesses cannot thrive .So as they say charity begins at home “ the MD noted . According to him, the project is our humble gesture even as we hope the community appreciates to further serve as encouragement for 11PLC to do more. “We feel glad and satisfied as we know this is a citadel of learning and you cannot imagine what level of good children who come out of this school; will do for the greater good of the society as a whole “Mr Oyebanji pointed out. He emphasized that assisting government to provide good infrastructure to aid quality

MARCH - APRIL 2019, Vol 3 No 2

education delivery is a cardinal aspect of its social investment initiative adding that this also partly explains the fast delivery of the project. The 11PLC Chief Executive recalled that the company has been in the forefront of contributing meaningfully to the nation’s development through thought out strides as part of social investment after purposeful interactions with benefiting communities on how best the company could impact on their lives. Mr Oyebanji recalled with deep sense of fulfillment some notable CSR activities undertaken by the company amongst which was the extensive construction and rehabilitation work on the then Malu Road ,now Mobil Road en-route to Boundary market , a project that was handled by Julius Berger . In acknowledging 11PLC on the project ,the State Universal Basic Education Board said “ the Board appreciates this noble gesture as it complements the efforts of the state government at improving basic Education through the provision of conducive environment for effective teaching and learning activities “ . The Board through its secretary Mrs Adelaja Abosede on behalf Executive Chairman expressed deep thanks for the project embarked by the company which had already been put in use at the commencement of the 2nd term of the 2018/ 2019 school session in the state. In a similar vein, the Head Teacher of the school, Mrs Eke Justina said the intervention of the company is a commendable one as it would remain indelible in the minds of both staff and pupils of the school for long “The gesture will come a long way in the history of the school and your company will be growing from strength to strength and progress to progress “she declared in an emotion laden appreciation letter to 11Plc. She described the company as a socially responsible organization that cares for the wellbeing of its host communities a lot adding that the facelift given to the school has affected positively the affective and psychomotor domain of the pupils.

www.majorwavesenergyreport.com

SOCIAL INVESTMENT

CSR: Dangote Refinery Trains 200 Youths Ahead Of 2020 Commencement Target

he Oba of Lagos, Rilwan Akinolu, has commended Dan gote Group on its youths empowerment programme within the host communities which commenced six-month vocational training for youths of Ibeju-Lekki on human capital development in various marketable skilled.. Akiolu said this at the official flag-off of the capacity building programme for 200 youths in Ibeju Lekki area of Lagos State recently. He said that Dangote Group was one of the few indigenous companies that had impacted their host communities even before commencement of operations. According to him, he prayed for the successful completion of Dangote Refineries so that Lagosians as a whole can be beneficiaries. Akinolu urged the youth to put in their best in the programme by concentrating on what they were learning. “You have to be very hard-working because Dangote is giving you forever and everlasting skills.

“

This is an ever lasting legacy which has not been done anywhere, the people will be benefit tremendously.” He also urged the leaders of the communities to encourage the people to support Dangote’s programme. Dan gote Industr ies Ltd., commenced six-month vocational training for youths of Ibeju-Lekki on human capital development in various marketable skills. The Group Executive Director, Dangote Industries Ltd., Mr Devakumar

www.majorwavesenergyreport.com

“

Edwin said that the project was designed to eq u ip you n g men and women with trade skills. T he prog ra m me was organised by Dangote Petroleum Refinery & Petrochemicals and facilitated by the National Directorate of Employment (NDE) and the Nigerian Content Development and Monitoring Board (NCDMB).

Our aim in training these 200 youths is in line with Chinese maxim, “give a man a fish and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.”

According to Edwin, the company’s fo c u s on C or porat e S o c i a l Responsibility (CSR) projects is centered on the development and wellbeing of the people, especially its host communities.

The Executive Secretar y of NCDMB, Mr Simbi Wabote who was represented by Mr Frank lbi, Manager, Gas and Refinery, NCDMB, commended Dangote for the landmark initiative towards empowering youths of their host community. Wabote assured that the board would also support in the human capital development, affirming that the board would ensure that the youth would be engaged after completion of their training. He urged the trainees to be more dedicated, focused and committed to the programme.

Edwin said, “We have executed several projects that are enhancing the lives of the people. We have also provided boreholes for all the communities, classrooms for the local school, and we just awarded scholarships to 51 secondary school students. “This programme is another level of our intervention as it is targeted at providing vocational skills to the teeming youth population in our host communities. “The youths are veritable assets in any society and the quality of the youths determines the outlook of tomorrow’s society. Therefore, an investment in developing vocational skills among youths will yield the desired results. “The training, to be conducted by the National Directorate of Employment, is meant to prepare the youth with vocational skills that will eventually make them employable or self-employed. “We have deliberately targeted vocational skills such as plumbing, masonry, welding, iron bending, auto mechanics and electrical works because of the instant value addition to their lives and communities.

Majorwaves Energy Report

The Dangote helmsman said that the 650,000 barrels-per-day refinery would become the world’s largest single train refinery on completion. Edwin said that the trainees will be given allowance during the course of their within six-month, while those who excel would be employed.

“We are confident that you will do well and be employable with the involvement of the NDE. We commend Dangote for the gigantic project in the community; this is a litmus test for bringing local content development to the youth of this community. One of the trainee, Mr Yesiru Sanni, a mechanic commended Dangote for the opportunity given to the younger generation in Ibeju-Lekki commun ity, urging Dangote to assist the community with library and school to encourage the youths. The flag-off ceremony witnessed by dignitaries among were representative of the Lagos State Government, Council of Obas, Representative of Vice-Chancellor of University Lagos, the Chairman of Lekki LCDA, Mr Olaitan Ogidan among others.

MARCH - APRIL 2019, Vol 3 No 2 31

SPECIAL REPORT

Equatorial Guinea Takes Bold Steps as Africa’s Energy Hub for 2019 Launches Year of Energy with APPO’s CAPE VII By Margaret Nongo-Okojokwu, Kunle Ayodele

ocated on the West Coast of Central Africa, with an area of 28,000 square kilometers, and a population of 1.22 million, Equatorial Guinea is poised to take up the leadership role as an African’s energy capital. Quite ambitious, you want to say. “As I have said many times, Equatorial Guinea is a small country with big ambitions,” Min ister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima said. Believe it or not, experts and analyst including International Energy Agency, IEA have forecasted 2019 as the year for oil producing African countries. Equatorial Guinea is ready to take leadership position against the continent heavy weights (Nigeria, Libya etc) in the oil and gas industry. Prior to 2019 Q1, precisely in Q3 2018, the former Spanish colony launched an initiative that will leapfrog her as Africa’s Energy Capital. It is tagged ‘Year of Energy.’ The initiative, according to the

Majorwaves Energy Report

country’s Ministry of Mines and Hydrocarbons will shed light on new and innovative petroleum projects in Equatorial Guinea and assembling industry leaders at a series of energy-focused events. The objective of The Year of Energy is to further Equatorial Guinea’s leadership role as an African energy capital, to showcase oil and gas projects, to promote its companies and accomplishments and to support the agenda of Africa’s oil and gas countries. The initiative was opened officially in Malabo, the country’s capital and it was followed by an international launch at the Africa Oil & Power 2018 conference on September 5 in Cape Town. “With the Year of Energy, we want to make a big impact in bringing together global leaders in Malabo to promote cooperation and encourage new investments,” said Minister of Mines and Hydrocarbons, H.E. Gabriel Mbaga Obiang Lima. “This is our moment as a nation to show the caliber of our oil and gas projects and to bring the

MARCH - APRIL 2019, Vol 3 No 2

industry to Malabo to celebrate the achievements of oil and gas producers all over the continent.” The government of Equatorial Guinea has designated Africa Oil & Power, the premier energy investment and policy platform on the continent, as the official organizer of the event programs for the Year of Energy, together with a special organizing committee designated by the Ministry of Mines and Hydrocarbons. “Equatorial Guinea has a proud and distinguished legacy in the energy industry and as a host of landmark events. Through the Year of Energy the country is again demonstrating its leadership role in bringing together Africa and the world’s energy leaders. We are proud to work with the Government of Equatorial Guinea on this exciting initiative,” said Guillaume Doane, CEO of Africa Oil & Power.

www.majorwavesenergyreport.com

SPECIAL REPORT

The honourable Minister, H.E Gabriel Mbaga Obiang Lima had announced that he expects a final investment decision on the natural gas ‘backfill’ project linking producing gas fields in Equatorial Guinea to onshore liquefied natural gas facilities in April. Local content is going to be a key part of the execution and contracting strategy as more jobs and contracts need to be awarded to citizens and companies that are compliant with the laws. The minister who also emphasized his country’s commitment to using its energy resources to diversify the economy, also welcomed petroleum sector operators to explore Equatorial Guinea through the EG

www.majorwavesenergyreport.com

Ronda 2019 licensing round, stated that new operators would soon be entering the country to take over amortized fields. “Oil and gas has been fundamental to our growth and we have taken advantage of our resources to fuel development,” said the Minister, “but it will not be enough to secure our future. We are looking to the Canary Islands as an example that is close to home for many of us, of a place that has succeeded in building a sustainable economy on tourism and services. Equatorial Guinea will be the Singapore of the Gulf of Guinea. For that to happen, we invite our international partners to invest with us in technology,

infrastructure and education and to exchange their experiences with us.” The Year of Energy, spearheaded by the Ministry of Mines and Hydrocarbons, positions Equatorial Guinea as Africa’s energy hub. Through events in Nigeria, Spain, the Emirates, South Africa and Equatorial Guinea, it brings attention to issues of regional cooperation, gaining greater value from natural resources and promotes investment in world-class oil and gas projects. Key events will be the APPO CAPE VII Congress & Exhibition on April 2-5 and the GECF 5th Gas Summit on November 26-29, 2019

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 33

INTERVIEW

“Africa is the World’s Most Overlooked and Under-Estimated Region for Oil and Gas Exploration” – Guillaune Doane

There have been large gas finds in Africa over the last year. How does this change the conversation around energy on the continent? Africa’s natural gas potential has been known for decades. In fact, some of the world’s oldest LNG facilities originated in places like Algeria and Libya. But until only recently, gas production in Africa was confined to mainly four countries – Algeria, Nigeria, Equatorial Guinea and Egypt. That has changed in recent years with countries like Mozambique, Senegal, Ghana, Tanzania and others making significant gas discoveries that have changed the game for the entire continent. Everywhere around Africa we are seeing the creation of a legitimate gas economy that is founded on new gas legislation and monetization. We are seeing 34

Majorwaves Energy Report

the creation of local gas markets, the elimination of gas flaring, the utilization of gas for power and local industry and the trade of gas between African countries. Natural gas has the potential to rewrite the way that energy is produced and sold in Africa. The APPO Cape VII Congress in Malabo, Equatorial Guinea, brings together all of Africa’s energy and petroleum producing countries. Besides the discussions at the Congress, it is also a chance for Africa to highlight the opportunities across the continent. In your opinion, what are the those opportunities?

exploration. Africa continues to lead the world in oil and gas discoveries but it also leads the world in discoveries that never make it into production. There are several reasons for that which events like the APPO Cape VII Congress provide an opportunity for reform in the oil and gas industry to make African countries more competitive for investment. In part, Africa Oil and Power’s mission is a dedication to empowering local leadership and entrepreneurship. In a sector like energy and petroleum, what are the opportunities for smaller African companies?

For starters, it is for us a constant reminder that Africa is the world’s most overlooked and underestimated region for oil and gas

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

INTERVIEW

For small and medium sized companies to thrive, they need to be given an opportunity to grow and succeed. And they cannot do that without being noticed. We believe it is part of Africa Oil & Powerâ&#x20AC;&#x2122;s responsibility to give those companies a chance to be in the spotlight and to provide them a stage for competing. We do that across all our events and investment reports. The Year of Energy is, in part, about diversifying Africaâ&#x20AC;&#x2122;s energy mix. Was this thinking a direct result of the drop in petroleum and resource prices? And, how important to the African economy

www.majorwavesenergyreport.com

is it that we get that mix - the change in thinking - right? The oil and gas slump of 2014 to 2017 was destructive for countries that are over-dependent on petroleum revenues to fuel their economies. That taught the industry a hard lesson that diversification will protect them in the future. Investing in the whole value chain including refining, petrochemicals and power will provide a hedge for oil and gas producers in the next price shock. There will be another one. The industry is cyclical that way. A diversified energy economy will create a cushion.

Fostering cooperation will be an important point of discussion at Cape VII. How important is that to building a more resilient continental economy and to raising Africaâ&#x20AC;&#x2122;s influence internationall?. It is very important. We highlight often that intra-African trade lags behind the rest of the world. The continent needs more pipelines, more i n f rast r uctu re s, more exploration joint ventures, more collaboration amongst governments and national oil companies and more energy trade between countries that have resources and others that do not.

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 35

UPSTREAM

Seabird Secures Two New Contracts

eaBi rd Exploration has announced two new contracts: The Company has received a letter of award for a niche 3D survey in West Africa, with a total value of approx. USD 6.5 million. The survey is expected to commence in the 2nd quarter of 2019, with a total duration of about 80 days. The total duration includes associated vessel transit. Due to fleet positioning and other contract opportunities, SeaBird will time-charter the Nordic Explorer for this survey and will also bid the Nordic Explorer for subsequent opportunities in the second half of 2019. In connection with the charter agreement, SeaBird will receive nine kilometers of ION DigiSTREAMER from the owners of the Nordic Explorer. Furthermore, SeaBird has secured a source contract for an OBN survey in the Gulf of Mexico. The contract has an expected duration of three weeks and will start in early April. SeaBird’s Harrier Explorer has been working on this survey since February 2019, under a previously announced contract. She will now be joined by the Osprey Explorer,

which recently completed other work in the region, for a period of simultaneous source operations. Separately, SeaBird has also agreed a 21 day off-hire period for the Voyager Explorer related to a technical stop in January 2019. SeaBird is seeing increasing demand for its services within the source vessel, 2D and niche 3D markets. In 2018, total duration on received tenders was up 52% compared to 2017, and the Company experienced a 40% increase in days on contract in the same period. Rates on new contracts across the three operating segments are as a result up 15-30% year on year. As a consequence of increased demand in all regions, SeaBird turned down work in the first quarter of 2019 due to scheduling conflicts based on its current fleet capacity of four operating vessels. To be able to pursue a strong and diversified pipeline of contract leads in all segments, the Company is evaluating several attractive opportunities for vessel capacity expansion. This includes an option to add the BOA Galatea and BOA Thalassa to the operational fleets,

which are currently owned by BOA SBL, a subsidiary of BOA Offshore. These vessels are well suited for source and 2D operations, as well as EM seabed logging, for which BOA Thalassa is currently contracted with EMGS ASA until September 2019, with options to extend for three times six months. SeaBird has received irrevocable acceptances from a majority of Boa SBL bondholders for a sale of the vessels based on an en bloc valuation of NOK 185 million. In addition, the Company is considering entering into other negotiated charter arrangements for capacity expansion at flexible terms. SeaBird emphasizes that no binding decisions have been made regarding any capacity expansion at the current stage and the Company is evaluating the alternatives. SeaBird will only enter into binding agreements at structuring terms accretive to current shareholders.

Botswana: Tlou Energy awarded new CBM prospecting licence on-trend with the Lesedi CBM Project

lou Energy, the ASX, AIM and BSE listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane (‘CBM’) has confirmed that a new prospecting licence has been issued to the Company by the Government of Botswana. Highlights The new licence, designated ‘Boomslang’ is located on-trend with the Lesedi CBM Project, where independently certified gas 36

Majorwaves Energy Report

reserves are already in place; The Boomslang area is considered highly prospective and provides significant potential development flexibility; The licence covers ~1,000 Km2, bringing the total licence area held by the Company to ~9,300 Km2. New CBM Prospecting Licence awarded The Company has been awarded a new coal bed methane prospecting licence by the Department of Mines at the Ministry of Mineral Resources, Green Technology and

MARCH - APRIL 2019, Vol 3 No 2

Energy Security in Botswana. The new licence, PL011/2019 designated “Boomslang” is valid for an initial term of 3 years. The licence area is approximately 1,000 Km2 and is situated adjacent to the Company’s existing licences. The Boomslang area is located on-trend with the encouraging results observed to date at the Lesedi project and is considered to be highly prospective. With initial development operations ongoing at the Lesedi gas field, the award of the adjacent Boomslang area along with the Mamba area provides the Company with further flexibility and optionality. www.majorwavesenergyreport.com

UPSTREAM

LEKOIL Requires Ministerial Consent for OPL 310 Interests – Court

Federal High Court sitting in Lagos, and presided by Justice Sule Hassan has ruled that Lekoil’s acquisition of an interest in the OPL 310 block still requires consent from the Minister of Petroleum Resources. Justice Hassan stated that the Executive Order issued by the Nigerian Acting President, Prof. Yemi Osinbajo in 2017, which should have deemed the Consent to have been granted, could not supersede the powers of the Minister of Petroleum Resources to grant such Consent. More specifically, the Judge disagreed that the Consent could be deemed granted and obtained in default which Lekoil believes is contrary to the provisions of the Executive Order. The Judge further noted that the Executive Order was signed in 2017, while Lekoil’s application for the

Consent to acquire the 22.86% participating interest in the block was made in 2016 and so could not be applied retroactively. Justice Hassan further ruled that the Sale and Purchase Agreement executed by and amongst Lekoil 310 Limited, Afren Nigeria Holdings and the administrators for the purchase of AIOGL was inchoate based on the fact that Consent is pending. Based on the judgment, the OPL 310 interest is still held by the seller, Afren press Investments Oil and Gas Nigeria Ltd. Lekoil still holds a 17.14% participating interest in the block, however, which received ministerial consent back in 2017. Commenting on the development, Lekan Akinyanmi, CEO of Lekoil said: “The Company is yet to receive the judgement in writing, and believes it has strong grounds to appeal against this judgment by the Federal High Court; and intends

to file a notice of appeal, and a stay of execution of this judgment with the Court of Appeal within a week. The company will take all necessary action to preserve its right to the 23% interest in OPL 310.” The OPL 310 license originally ended in February, but Lekoil has applied for the license to be extended due to regulatory issues. The Department for Petroleum Resources has recommended that the extension be granted, although it is still awaiting presidential approval. “The company believes that the OPL 310 license is still in good standing given that the extension is in process and there has been no communication from the regulators to indicate that an extension will not be granted,” Akinyanmi said. *Guardian

oday, the Rotary Club of Yenagoa, led by it's President, Rotarian Obioma Obikeze and it's members paid a visit to the Executive Secretary, #NCDMB, Engr. @wabote_simbi at NCDMB headquarters in Yenagoa.

www.majorwavesenergyreport.com

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 37

WHO WE ARE / OUR EXPERTISE KAMHARIS ENERGY LIMITED is an engineering, construction and Procurement company established in Nigeria to provide services such as Corrosion control, (blasting and painting), Passive fire protection (PFP), hot & cold insulation, pickling and passivation, rope access, scaffolding, Welding and fabrication (structural / piping) and procurement to the oil and gas industries. Our competence and proven performance since inception in 2011, extends to Hyundai Heavy Industries, SPDC, Total E&P, and Daewoo Nigeria Limited, just to mention but a few. We are dedicated to providing excellent services to various oil and gas industries.

PASSIVE FIRE PROTECTION (PFP)

CORROSION CONTROL SERVICES

INSULATION SERVICES

SCAFFOLDING & ROPE ACCESS Address: No 4/42 Nembe Street Rumuibekwe Estate Port Harcourt, Rivers State. Phone: 09090704418, 08093184995. Email: info@kamharisenergy.com Website: www.kamharisenergy.com

WELDING AND FABRICATION

PARTNER

â&#x20AC;¦Prompt service delivery 38

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2

www.majorwavesenergyreport.com

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2 39

Majorwaves Energy Report

MARCH - APRIL 2019, Vol 3 No 2