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PIB Won’t Be Rushed Into Law -Senate

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The Senate will not rush the passage of the Petroleum Industry Bill (PIB) into law to avoid short changing Nigerians, the chairman of its committee on Gas Resources, Senator Nkechi Nwaogu, has said.
She  said efforts were being made to ensure the speedy passage of the Bill, adding that it was the desire of the committee to ensure that the legistlation WAs all –encompassing, spelling the dos and don’ts in the oil and gas industry.
Senator  Nwaogu said  the bill  was such an important document that should be given priority  attention because it would remove fears about the oil industry, especially the gas sector.  She  added that if passed into law,  it would address bottlenecks  in oil and gas operation in the country.
The Bill has passed the first and second readings and is at the domain of public hearing. She noted that it would be detrimental  to the economy to rush the process of passing the Bill into law, with out allowing experts’ input. This is to ensure that, at the end of the day, the Bill would be seen as a democratically assembled document comprising inputs from –experts in oil and gas and other sectors, senator Nwaogu said.
“That is why we are going to hold a public hearing, and for my committee on Gas. We want to ensure that this document has a transparently identifiable dos and don’ts  for gas  exploration, production and processing and gas distribution. We don’t want a situation where we  would say  we have a petroleum industry law that does not  take into account the peculiarities in gas exploration, processing and distribution”, she stated.
“We want to ensure that  the volume of gas we have translates into  increase in revenue  profile for the  country, and ensure  that the  new document gives opportunity for investment in the gas sector, as well as ensure that  there would be easy entry  into gas business in the  country and easy exit of gas business at the same time.
“We expect  the petroleum industry law as it affects gas, would  help create  more wealth  for Nigeria, more  employment  for Nigerians, and at the  end of the day place Nigeria in the committee of nations  as  regards gas production and gas exploration,” adding that domestic gas development could be used to reduce  the continuous abuse of our environment through deforestation and through gas flaring by putting a stop to the practice.
She said if there is a law that prohibits gas flaring  and ensures that we create  a conducive  environment for  investors  to come into  the gas infrastructure business,  firms  would come in from outside  the country that would  want to establish  a  network of gas pipelines.

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Oil & Energy

‘NNPC Has Violated Its Own Guidelines, Reporting Production Shut-Ins As Losses’

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Nigerian National Petroleum Corporation (NNPC) has violated its own guidelines, reporting production shut-ins as losses.
The violation is contained in the Corporation’s latest monthly report for January obtained by SweetcrudeReports, adding also, that six million barrels of oil production had been deferred following the shutdowns of the export terminals between November and December 2021.
The shut-ins termed losses by NNPC had led to Nigeria’s inability to export over 6 million barrels of crude oil, according to NNPC.
In the past, the Nigerian National Petroleum Corporation had severally admonished reporters to stop reporting shut-ins as losses, however, the Corporation appears to have also fallen foul of same misrepresentation it had flagged.
For instance, while detailing some of its key challenges in the January 2021 report, the Corporation disclosed that 10 crude oil terminals were shut down within two months as a result of either leaks, fire, or for maintenance purposes.
The January 2021 report went ahead to tag the inability to export crude through those channels as “loss” instead of shut-ins.
In the past the Corporation had admonished journalists not to report crude oil shut-in as a loss because when such production comes back on stream, the same would be exported and revenue obtained.
The Corporation had put the supposed loss at the export terminals (Batan flow station at Forcados, Opuama flow stations at Trans Escravos pipeline, Abo terminal, Agbami terminal, Brass and Erha terminals, Ugo Ocha terminal at Odidi flow station, Jone Creek FS, Yoho terminal, Usan and Ima terminal, Qua Iboe terminal, Okono and Escravos terminal, and Escravos Dubri terminal) at over 6 million barrels within the said months.
Nigeria has 26 export terminals scattered across the country with 10 located in the Western zone, 11 in the Eastern zone, and 5 in the Lagos zone.
A breakdown of the “losses” as reported by the NNPC, showed that the Batan flow station at Forcados terminal was shut down on the 18th of November 2020, and for 31 days in December due to protest by the community over outstanding payments. Also, the Opuama flow stations were shut down due to reported leaks on 20’’ Trans Escravos Pipeline on December 1. Cumulative “loss “ over 31days in December was 359,200bbls.
At the Abo terminal, production shut down for maintenance took place on the 7th of December 2020 for 13 days. Another shutdown occurred on December 20 for 6 days. Cumulative “loss” for the period was put at 360,000bbls.
Production curtailed for flare management for GTC no.3 first stage discharge cooler repairs and planned maintenance at the Agbami terminal on 24th and 11th November respectively resulted in an aggregate “loss” of 294,414bbls.

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NNPC Tasks Investors On Refineries

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The Nigerian National Petroleum Corporation, NNPC, has tasked investors on the construction of greenfield condensate refineries, in order to meets the country’s aspiration towards becoming net exporter of petroleum products.
The Group Managing Director of NNPC, Mallam Mele Kyari, gave the charge at the ongoing virtual bi-annual Nigerian Oil anc Gas Opportunity Fair, NOGOF 2021, with the theme ‘Leveraging Opportunities and Synergies for Post Pandemic Recovery of The Nigerian Oil & Gas Industry’.
Kyari reiterated the NNPC’s willingness to partner with investors towards value creation and a fair share of Return on Investment in the exploration of frontier basins, development of upstream gas fields and financing of greenfield/brownfield additional production on de-risked assets.
He assured that the country’s oil and gas sector is replete with opportunities, particularly in gas and power infrastructure development, gas pipeline networks expansion, development of gas based industries as well as the Integrated Power Plants.
Other areas of opportunities he said, include the rehabilitation of existing refineries, as well as construction of LPG and CNG plants across the country, pipelines and storage tank construction as well as developing shipping capacity.
“In the Upstream, opportunities abound in the area of exploration of frontier basins, the development of upstream gas fields and the financing of greenfield/brownfield additional production on de-risked assets.
“In Gas and Power infrastructure development, there are opportunities in expanding our Gas Pipeline networks, development of Gas based industries as well as the Integrated Power Plants.
“In line with our aspiration towards becoming net exporter of petroleum products, opportunities abound in the rehabilitation of our existing refineries as well as the construction of greenfield condensate refineries.
“As we strive to deepen domestic gas utiliisation, it has created more opportunities in the downstream sector especially in LPG and CNG plants across the country. There are also opportunities in the pipeline and storage tank construction; as well as developing Shipping Capacity.
“In the Ventures & Business Development, we are ready to partner investors in the development of multi-specialist hospitals to strengthen healthcare service availability and support telecommunication infrastructure availability.
“Finally, let me once again re-assure you that at NNPC, we are ready to collaborate with investors towards turning opportunities into real value, for the benefit of all, and especially towards taking our Industry to even greater heights.”
The NNPC boss further reiterated the corporation’s support and full alignment with NCDMB in its quest to engage Industry professionals, towards achieving its primary mandate of building and supporting the development of local capacities and capabilities in the industry.
Also, the pioneer Executive Secretary of NCDMB, Engr. Ernest Nwapa, noted that the oil and gas industry had experienced remarkable and sustainable growth in the last 15 years through local content and no other sector in the Nigerian economy had recorded comparable development.

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Former Adviser Advocates Investment In ICT For Oil, Gas Sector Revolution

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Amid daunting challenges plaguing Nigeria’s oil and gas sector, an industry expert and former Technical Adviser to the Ministry of Petroleum Resources, Engr. Rabiu Suleiman has called for higher investments in Information Communications Technology, ICT to fully harness the huge economic potential the petroleum sector holds.
He said ICT plays a significant role in optimisation, efficiency, technology advancement in the oil and gas sector.
“I believe it is time for the oil and gas industry to embrace more ICT. There are new ICT innovations coming up to help tackle most of the challenges faced in the industry. I know Huawei Technologies has been coming up with some new solutions for the petroleum industry.
“ICT is also useful for data management. The oil & gas industry handles lots of information and a lot of it has been paperwork. There is therefore a need for digital transformation to foster efficiency in the way information is stored using ICT.
“The most sensitive equipment in the process plants in the oil and gas industry is the programmable logic controllers, online analysers and all other instrument that control process, temperature, flows and pressure. So, if a company such as Huawei focuses attention on optimisation, efficiency, control and improvement, maximisation of production it will be very good”, he said.
He further explained that ICT has proven useful across other industries, adding that Nigeria can achieve up to 5 percent more oil productivity and at reduced cost using ICT.
“Regarding oil exploration, it is now possible to achieve up to 5% more oil productivity at areduced cost of investment using ICT. There are now ICT solutions that make oil extraction easier at a lower price than what it used to be.
“The major challenge today is that of insecurity. Other challenges include; general economic recession, the recent COVID-19 pandemic that almost grounded the entire world economy. Many countries passed through recession, there was the lowering of oil reserves because production was halted in some countries and therefore, production became low and of course, there are other challenges related to high production cost. If you narrow down and do a comparative analysis between Nigeria and other countries, cost of production per barrel in Nigeria is significantly very high. It went as high as $32 per barrel and crude oil price at the international market went as low as $9/barrel. But quickly, it went up to $140/barrel later and then crashed to below zero by COVID-19.”
He explained that the 2021 edition of the Nigeria International Petroleum Summit, NIPS, which starts on the 6th of June, 2021 in Abuja, provides a great opportunity at this critical time for the Oil & Gas sector in Nigeria, to focus on how to leverage ICT to transform the sector and the economy at large.
“You can easily integrate various ICT components in terms of monitoring of volume flows, temperature, attack, corrosion, contamination, communication, you can tie all these to a dedicated command and control centre. With Huawei’s oil & gas solutions, it is possible to manage pipeline damages. Yes, this has been a major challenge over the years which has greatly affected the economy.
However, there are no ICT solutions to manage these occurrences. It is now possible to track the pipelines and keep them safe through technology. With this in place, more revenue can be generated”.
He also spoke on the need for quick energy transition to renewables like solar, hydro and wind, to safeguard the environment.
“Nigeria is abundantly blessed with renewable energy sources. Sunlight is in abundant, from here in Abuja to the far north. It can be captured and converted into solar system. The main engine for growth is to have uninterrupted power supply. We also have many solar power projects going on. There is 100 megawatts of solar power that I initiated in Kano State. We have many others going on in other parts of the country. We small power panels that you can throw unto the roofs in villages.”
He thus challenged Huawei Technologies to widen its green energy solution provision, especially in solar power for Nigerians.
“Look at the three Nigerian refineries, none of them is producing aviation kerosene, why? Because of the ingress of water into the system and the inability of the laboratory to detect moisture content and poor knowledge of operators who are reluctant to apply new technologies because they are afraid to carry out certain decisions”.

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