In line with Federal Government’s flare out regulations, the French oil and gas giant, Total Exploration and Production Nigeria Limited (TEPNI), a subsidiary of Total Group, has signed a milestone Memorandum of Understanding (MoU) with stakeholder communities for the right of way of the strategic Obite, Ubeta and Rumuji (OUR) gas pipeline.
Signing the MoU in Port Harcourt between Total E&P and the land owners, families and communities from Rumuji, Ndele, and Elele Alimini where the gas pipeline traverse, the company said that the agreement would ensure that stakeholder communities derive optimum benefits from the project to maximize their development potentials.
Deputy Managing Director, Total E & P, Port Harcourt District, Denis Berthelot, who signed for the company, said the OUR Gas Pipeline, a major component of the OML58 upgrade, cannot be realized without the support of the communities, and enlisted their cooperation to make the project succeed.
Berthelot stressed that, “as our strategic and very important partners, the company has put its cards on the table through series of consultations and negotiations with all of you, our host communities, and the conclusion culminates today with this ceremony”, adding that Total E & P was “conscious that the set timeline for this project cannot be achieved without your support” and the validation of the product of our various decisions so that full implementation of the provisions of the agreements could commence.
In their response, the communities thanked Total E & P for providing the opportunity for both parties to firm up a workable agreement to guide the operations of the company while executing the gas pipeline project, and pledged their readiness to support the company in any way possible to ensure that set goals are met, while delivering sustainable development to the impacted communities.
The Tide learnt that the 45.6-kilometre OUR with 42-inch diameter gas pipeline, which is to be constructed by Zakhan Baywood Joint Venture, will facilitate the transport capacity of gas from the OML58 fields to the Nigerian Liquefied Natural Gas facility on Bonny Island in Rivers State for processing and export to foreign markets.
The company said the OML58 upgrade is designed to increase gas production capacity from the current 10.6million standard cubic metres per day, approximately 370million standard cubic feet per day, to 15.6million standard cubic metres per day or 550million standard cubic feet per day, while also increasing oil and condensate output by around 15,000 barrels per day, bringing the total output from the fields to 140,000 barrels of oil equivalent per day.
Industry sources note that Nigeria has flared more natural gas associated with oil extraction than any other country, suggesting that of the 3.5billion standard cubic feet, about 99m of associated gas produced annually, 2.5billion standard cubic feet, representing some 71m³ or 70 per cent of production capacity is wasted through flaring.
This, according them, has denied the country an estimated $2.5billion annually.
According to Total, the OML58 upgrade is expected to comply with Federal Government’s gas flare out regulations, contribute to meeting the growing demand for gas in Nigeria as well as supply gas feedstock to the Nigeria LNG.
The Tide gathered that the project will also contribute to an improvement in the safety profile of the company, and extend the life of existing facilities while enhancing oil recovery to boost production and increase the nation’s revenue earnings.
Buhari Thumbs Up For NLNG As NNPC Reviews Activities
The Nigerian National Petroleum Corporation (NNPC) held its head high as it commenced activities for the week following commendation from President Muhammadu Buhari for rallying shareholders to make Nigeria Liquefied Natural Gas Limited (NLNG) a company to reckon with.
Buhari who is also the Minister of Petroleum Resources gave the commendation at the ground breaking of the NLNG Train 7, recently.
He said that the NLNG had always been associated with success and had become a global company.
“The NLNG Train 7 represents another historic milestone in the history of NLNG. NLNG story has been associated with success,” he said.
The president also said that the NLNG had contributed 114billion dollars in taxes to Nigeria, and tthat with NLNG Train 7, there would be more jobs that would touch the lives of everyone particularly the host community.
He expressed joy how the NLNG had transformed from just a project to a very successful company in about 30 years.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, urged all shareholders to work hard to ensure the successful completion of the project which he said would boost government’s efforts to make Nigeria a fully industrialised nation.
Sylva also said the project would help the nation’s gas development aspiration.
NNPC’s Group Managing Director, Mallam Mele Kyari, that there was consensus among shareholders and board members to take the next step towards providing additional capacity which should be greater than what was on ground.
The NNPC GMD thanked President Muhammadu Buhari for his quick intervention which ensured the eradication of all pre-existing stumbling blocks on the path of NLNG Train 7 project
Also in the week under review, Minister of State for Petroleum, Sylva commended President Buhari at a ceremony to mark the execution of Shareholders Agreement between the NNPC, the Nigerian Content Development & Monitoring Board (NCDMB) and Zed Energy.
Total Nigeria Advocates Petroleum Subsidy Removal
Managing Director Total Nigeria, Plc, Mr Imrane Barry, says removal of petrol subsidy will help government to redirect its earnings to support infrastructure development for economic growth and development.
Barry made this known when he featured on a roundtable on Downstream and midstream at the Nigeria International Petroleum Summit (NIPS) in Abuja.
He spoke on the topic “The down/midstreams: Paths to the future through holistic and integrated solution”.
He said that signing of the Petroleum Industry Bill would help to unbundle the oil and gas industry and encourage development, private investment and create jobs.
“The petrol subsidy regime costs the country approximately 2.6 billion dollars (N1 trillion) per year and the country can no longer afford it.
“The removal of the subsidy will allow government direct more of its earnings towards infrastructure and social development,” he said.
He said that since government had declared decade of gas, there was need for Investment in Natural Gas.
He added that government needed to continue to push policies that would favour private participation and investment in the gas value chain, production, storage and distribution.
“Also, government needs to give incentives for investors in the sector, tax rebates etc to encourage long term participation.
“In the B2C sector, the government should put in place incentives for customers to switch from white fuels to gas powered machines for road transportation.
“They should continue investment in the nation’s critical infrastructure that aids trade and commerce,’’ he added.
He further called for the fixing of Apapa ports and other ports in Nigeria, development of interstate road network, fixing of rail lines for human and cargo transportation
Commenting on impact of COVID-19 pandemic to global oil market, he said that it made the market volume shrank by 30% while margins became weak(Losses) with aviation sector mostly affected for the following reasons.
He added that the global economy was badly affected generally due to airport closure, drop in international prices of jet fuel platts which , led to a huge loss in aviation business due to contractual agreement with international airlines coupled with large amount of “old stock” in tank.
“PMS is a regulated product, with the price fixed by the government; resulting in fixed margins.
“The devaluation of the Naira from N360 to N380 during the pandemic, coupled with rising inflation in the country further eroded this “fixed margin” for the players in the downstream sector,” he said
He urged government to ensure speedy passage of the PIB to help the sector play its part effectively.
Partners Execute Shareholder Agreement For Brass Products Terminal
The Nigerian National Petroleum Corporation, (NNPC), along with their partner, the Nigerian Content Development & Monitoring Board, NCDMB, and Zed Energy have executed a shareholders’ agreement for the establishment of a 50 million litre Petroleum Products Terminal in Brass, Bayelsa State.
The N10.5 billion Brass Petroleum Products Terminal project is expected to deliver an automated 50 million litre depot with two-way product jetty, automated loading bay, and 6 automated tanks for storage of 30 million litres of Premium Motor Spirit (PMS)and 20 million litres of Automotive Gas Oil (AGO) and Dual Purpose Kerosene (DPK).
While speaking at the signing ceremony, the Minister of State for Petroleum Resources, Chief Timipre Sylva commended President Muhammadu Buhari for his giant strides in the Niger Delta which is making a huge impact on the people of the area.
“I make bold to say today without any fear of contradiction that no President has impacted the people of the Niger Delta like President Muhammadu Buhari. Aside from what we are witnessing today, remember there is also the Brass Fertilizer & Petrochemical Company, the Oloibiri Oil and Gas Museum and the Oil & Gas Park in Ogbia, all under Mr. President,” the Minister stated.
Sylva added that the establishment of the Terminal further demonstrates Mr. President’s commitment to the enhancement of the livelihood of the Niger Delta people particularly, the riverine communities in Bayelsa State where people purchase products at exorbitant prices due to logistics challenges associated with transporting products to that area.
Speaking shortly after signing the agreement, the Group Managing Director of the NNPC, Mallam Mele Kyari said the Corporation was proud to be part of the project which aside ensuring products availability in all nooks and crannies of the Niger Delta, will also guarantee the nation’s energy security and generate employment.
“This Terminal will create 1,000 direct jobs during the construction phase, and over 5,000 indirect jobs during its operation. Considering the potential for employment when completed, this will definitely reduce youth restiveness in the Niger Delta area and will also address the problem of illegal refining in the area,” Kyari stated.
In his remarks, the Executive Secretary of NCDMB, Simbi Wabote stated that this milestone was as a result of strong interagency collaboration and public-private sector partnership.
“The NCDMB will continue to drive such partnerships across the industry to bring development in Nigeria,” he noted.
Earlier, the Coordinator of the Project and Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Bala Wunti stated that the project would enhance the economics of marine petroleum products distribution.
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