Oil & Energy
Obio Hospital:How RSG, SPDC Set New Health Standard
The recent World Bank
rating of one of the cottage hospitals in Rivers, the Obio Cottage Hospital (OCH) in Obio/Akpor Local Government Area, as a model, in healthcare delivery not only in Nigeria but the world at large, was indeed a cheering news to the people and residents of the state and the nation.
World Bank said, a thorough investigation based on universal indicators on access to efficient and effective healthcare services to community members through sustainable operated healthcare facilities, Obio hospital came out with impressive result compared to what obtains in other healthcare facilities in Nigeria in particular and in the world at large.
Disclosing this at the fifth anniversary of OCH recently in Port Harcourt, Dr Olumide Okunola representing the International Financial Corporation/World Bank said the outcome of the research was heartwarming and attributed it to the approach of Community Health Insurance Scheme which gave the community people sense of ownership of the facilities.
“He said World Health Organisation (WHO) ranked Nigeria’s health system first out of 191 countries, with data indicating that Infant Mortality (110 deaths/1000 live births) and maternality (1500/100000 live births) rates being among the worst in the world. More disturbing was the fact that 70 per cent of the health care expenditures are out of pocket expenses by those who could ill afford it.
Out of concern for the high cost of health services especially in the oil-rich Niger Delta, Communities under its 1A cluster, Shell Petroleum Development Company of Nigeria (SPDC), the Rivers State Government sought a more effective healthcare delivery for the people and residents of the IA Cluster communities and came up with Community Health Insurance Scheme (CHIS) and signed an operational Memorandum of Understanding (MoU).
Under this CHIS initiative, with a paltry N10,000 enrollment fee per person, per year, one enjoys comprehensive primary and secondary care, including caesarean section and in-patient care, home visit termed healthcare at the doorsteps as well as other numerous client support services.
This is a far cry of what obtains today in other health institutions, both private and public are considered.
The success story is that Obio Cottage Hospital which, like other public health centres, grew from a facility concerned with mere immunization centre has 45,000 enroled persons, 3488 safely delivered babies in 2014, with an average of 270 monthly as against 10 before the scheme. It also recorded 3,108 caesarean sections, 1243 surgeries and 100 per cent uptake of ante-natal care, HIV counseling and testing, amongst other impressive records.
Excited by the success of the scheme, the Executive Secretary, Rivers State Primary Health Care Management Board, Dr Claribel Abam described the feat as an amazing milestone in five years of uninterrupted community-based health insurance scheme implementation in the Niger Delta. She commended the stakeholders for making one of the state’s facilities take a pride of place not only in Nigeria but in the world.
Abam, in her comment at the occasion said, “with the community-based Health Insurance Scheme, Obio is now a reference point both nationally and internationally”, and stressed that since the inception of this scheme in 2010 the facility has recorded a progressive increase in the number of clients while the state government’s health personnel which form part of the effort have built capacity and become role models in efficient management of health systems.
Reactions from some international figures who paid visitations to OCH based on the wonderful record set, show expressions of satisfaction and amazement.
“Fantastic!! Great Ambience, Committed Staff, well stocked pharmacies, efficient record keeping and great public, private partnership. A model for Nigeria”, said a Senior Health Specialist of the World Bank, Dinerh Nav.
A Member of Parliament, in United Kingdom and Secretary All Party Parliamentary Group, Nigeria, UK Parliament, James Doddridge said, “I was amazed to see so much being achieved in one small site. This clinic is truly a model for healthcare, not just in Nigeria but worldwide”.
Tracing the origin of the CHIS, the Chairman 1A Cluster Development Board, Chief Joseph Amadi, said the beginning was tough and challenging especially with the board not knowing where to raise fund. “But with the little we had, the people were enthusiastic and Shell was a willing technical partner and great support from the Rivers State Government”.
Amadi expressed joy that just like a mustard seed, the initiative began to grow from grass to grace such that today it has become one initiative viewed by even the World Health Organisation as a model and the way to go in the effort of delivery quality and efficient healthcare services to the people.
The board chairman explained that provision of standard healthcare particularly to the poor rural people is a challenge in view of the high cost of medical services today and stressed that the CHIS idea is a clear proof that such rural people can be assured of quality health services if they pool their little resources under Community Health Insurance System.
“It requires an all inclusive involvement of the people, the government and other partners and a clear understanding of the importance of dependence of one another is paramount for the success of any such scheme. I am happy so also the people and other partners that today the scheme is a total success worth emulating”, he stated.
The Regional Community Health Manager, Community Health Department SPDC, Dr Babatunde Fakunle said as part of SPDC’s commitment to the quality health of its host communities (Shell Industrial Area (1A) it partnered with the people, Obio/Akpor Local Government and the Rivers State Government to launch Niger Delta’s first Community Health Insurance Scheme (CHIS) was introduced for indigenes and non-indigenes resident in the 1A communities consisting of Oginigba, Rumuobiakani, Rumuomasi and Rumuozeolu, using Obio Primary Healthcare Centre as the healthcare provider for the scheme.
Fakunle said Obio Cottage Hospital through the CHIS has become a big success and that the scheme has proved itself a wonderful initiative and we are interested in getting it replicated in our other host communities to boost healthcare in the Niger Delta.
The Chief Medical Director of Obio Cottage Hospital, Dr Umejiego Chigozie said the success so far recorded is not the end point because it is about quality, noting that when you set a high standard, the challenge is how to sustain the record set so that you do not fall back.
He said Obio is extending services to other centres around with surgeries and other complex services to enable them enjoy the quality services as found in OCH.
On those poor persons who still are unable to afford the N10,000 enrollment fee, the CMD said there is Indigenes Committee put in place and that the committee investigates such complaints and if actually such people are unable to afford, a special fund set aside annually would be used to complement the shortfall from those who are unable to afford the official enrollment fee of N10,000 per person per year.
He also disclosed that the centre is undergoing expansion in terms of structure and facilities to contain the growing number of persons enrolling and for improved services.
To complement the regular power outages in public electricity supply, the CMD also revealed that wind and solar energy systems have been installed.
“The green energy project is an economically friendly, power dependable and efficient solution to modern day hospital requirement for our environment. It ensures an uninterrupted power supply 24 hours as Analysts believe that with the over one hundred primary health centres built across Rivers State by the Governor Rotimi Amaechi’s administration, the Community Health Insurance initiative could be a wonderful complete to high quality and efficient healthcare service delivery.
Chuma Akazie advised the Rivers State Government and other state governments in the Niger Delta region to include the Community Health Insurance in their system.
Akazie, a business consultant said the people especially the low income earners would enjoy same high quality healthcare as provided by OCH if they pool their resources and risks together in the insurance scheme.
“Today, large number of the poor masses besiege spiritual homes, unorthodox practitioners for their health challenges because of the high cost of drugs and other health services. And this systems have resulted in many avoidable deaths which could otherwise by resolved through the Community Health Insurance initiative.
The impact of the initiative has elected the Obio Cottage Hospital to a medical research centre as record shows that both Braithwaite Memorial Hospital (BMH) and University of Port Harcourt Teaching Hospital (UPTH) have signed Memorandum of Understanding with OCH in research relating to attitude of staff while not less than 20 publications and abstracts at various levels of medical researches including PHD students are so far recorded.
Chris Oluoh
Oil & Energy
Savannah To Take Over Stubb Creek Field in Nigeria
Savannah Energy PLC has signed agreements to take over Sinopec International Petroleum Exploration and Production Company Nigeria Ltd. (SIPEC), the British company’s co-venturer in the Stubb Creek oil and gas field in Nigeria, for $61.5 million.
SIPEC owns a 49 percent interest in the proven onshore asset in the Akwa Ibom State, which sits on the southern coast of the Western African country.
Savannah affiliate Universal Energy Resources Ltd. operates Stubb Creek with a 51 percent interest.
London-based Savannah, in a Press Release, said it has now inked separate share purchase agreements (SPAs) with the Chinese and Nigerian owners of SIPEC—Sinopec International Petroleum Exploration and Production Corp. (SIPC) and Jagal Ventures Ltd., the completion of which will result in Savannah taking full ownership of Stubb Creek, SIPEC’s principal asset.
“The SIPC SPA will see Savannah Energy SC Limited (a wholly owned subsidiary of Savannah) acquire a 75 percent equity interest in SIPEC for cash consideration of US$52 million, payable on completion and subject to customary adjustments for a transaction of this nature from 1 September 2023.
“The Jagal SPA will see Savannah Energy SC Limited acquire a 25 percent equity interest in SIPEC for cash consideration of US$7.5 million (without adjustment), payable on completion, plus US$2 million in deferred cash consideration payable in eight equal quarterly installments post-completion”, it stated.
Savannah simultaneously released an independent analysis showing gross proven and probable (2P) oil and condensate reserves of 11.9 million stock tank barrels (MMstb), as well as a gross best contingent gas estimate (2C) of 515.3 billion cubic feet (Bcf), in Stubb Creek as of January
It also holds an 80 percent interest in Accugas Midstream Business, which owns and operates the Uquo central gas processing facility and 260-kilometer (161.6 miles) pipeline network. The processing facility has a declared capacity of 200 million cubic feet a day.
SIPEC meanwhile had an estimated 8.1 MMstb of 2P oil reserves and 227 Bcf of 2C gas as of yearend, while its oil production is estimated to average 1,400 barrels per day (Kbpd) this year.
“Savannah’s Reserve and Resource base will increase by approximately 46 MMboe [million barrels of oil equivalent] following completion of the SIPEC Acquisition.
“It is anticipated that, within 12 months following completion of the SIPEC Acquisition, Stubb Creek gross production should increase by approximately 2.7 Kbopd to approximately 4.7 Kbopd through implementation of a de-bottlenecking program”, it said.
Oil & Energy
NNPCL Lists Transparency, Accountability, Others, As Transformation Drivers
The Executive Vice President, Gas, Power and New Energy, Nigerian National Petroleum Company Ltd, Olalekan Ogunleye, has identified transparency, accountability, research, technology and innovation as key drivers of the ongoing transformation in the company.
Ogunleye disclosed this while speaking during a Panel Session hosted by the NNPC Ltd at the ongoing 2024 CERAWeek Conference in Houston, the United States.
Ogunleye, whose session addressed the theme, “Africa’s Energy Future: Access, Investment & Sustainability”, said under the current leadership of Mr. Mele Kyari, the Company has institutionalized the use of modern technology to drive its operations, a development that has created tremendous value for the company in its quest to compete with its global peers.
He said with the coming of the Petroleum Industry Act (PIA) in 2021, NNPC Ltd has today transformed into an integrated commercial entity that is focused on transparency and accountability, two core values that are vital towards the Company’s quest to float an Initial Public Offer (IPO) at the stock exchange.
“Over the last five years, the NNPC Ltd has been pushing the agenda of transparency, accountability and performance excellence. I am glad to say that we are setting very high standards, and this is a journey that we are all committed to going forward”, Ogunleye stated.
He further observed that transparency and accountability have a commercial component to them, because they can make any organisation attractive to its partners and potential investors.
He said currently, the NNPC Ltd is working assiduously to become IPO-ready, stressing that once that is done, the IPO would be phenomenal and successful.
Ogunleye, who described the future as exciting for the NNPC Ltd, said as the biggest energy company in Africa with the biggest resources and largest market, the Company remained committed to delivering value to its shareholders by relentlessly improving its processes in line with global best standards.
He said gas would continue to be an important resource for Africa because it is the surest tool for economic development and for delivering better living standards for the teeming population on the continent.
Ogunleye called on all gas players to sustain the advocacy for gas as a major energy source that will be utilised to develop the economic and industrial fortunes of the continent.
According to him, gas is a top priority for NNPC Ltd because the Company is at the forefront of Nigeria’s gas commercialization efforts and flare elimination.
“Gas has come to stay. It is going to be part of the energy mix for us in the long term. We shall continue to be at the forefront of accelerating gas development and commercialisation in Nigeria”, he added.
Oil & Energy
Africa’s Energy Leap From Fossil Fuels To Renewable Powerhouse
The African continent is at a critical turning point. The region’s energy demand is set to skyrocket, just as climate change is starting to impact local livelihoods in earnest.
African countries are among those most vulnerable to climate change despite having contributed the least to the climate crisis.
Faced by a sharp population growth, and a need to develop local and national economies, Africa also must simultaneously contend with the urgent imperative to keep emissions in check. It’s a tall order.
Indeed, Africa is a perfect example of what is known as the energy trilemma: the tricky problem of creating enough energy while also keeping that energy sustainable and affordable.
What makes Africa’s situation so unique and so dire is the intense scale of each of these trends. The continent has some of the most underdeveloped energy grids on the globe, and is also facing the biggest population boom anywhere on Earth.
Africa has the fastest growing population in the world, expected to double between now and 2050. This means that, by midcentury, a quarter of the global population will be in sub-Saharan Africa. This presents a massive energy and infrastructure gap in the coming decades.
Currently, about 600 million people across Africa completely lack access to electricity. Furthermore, for a great many of those who do have access, it is not reliable or stable, as power failures and rolling blackouts are a common occurrence.
Such intermittent electricity is common in urban areas, while in rural areas establishing any form of grid connectivity can present a major challenge.
African energy demand is expected to increase by a third over the next decade as sub-Saharan Africa grows, develops, and industrializses.
To meet this demand, power generation capacity will have to increase by a factor of 10 by 2065. But to advance toward such goals without breaking climate pledges and more generally counteracting global progress toward decarbonization, Africa has to “leapfrog” over what is normally the next phase of development in a poor nation’s economic journey.
Unlike other nations in history which have enriched themselves and developed their economy by burning massive amounts of cheap and abundant fossil fuels with abandon, countries developing now do not have the same option.
Luckily, Africa is a goldmine of potential renewable energy resources.
“The continent is extremely rich in natural gas (considered to be a stepping stone away from dirtier fossil fuels like coal and oil), as well as abundant sunshine, wind, and highly sought-after rare Earth minerals such as lithium and cobalt which are essential components of renewable technologies including photovoltaic solar panels and lithium-ion batteries for electric vehicles and renewable energy storage”, Oilprice reported in July of 2023.
It’s just a matter of securing sufficient investment, fostering a supportive political environment, and establishing trans-national intra-African energy sharing agreements to be able to tap all of that green energy potential. If managed properly, clean energy could benefit the African economy enormously while helping to solve the riddle of the energy trilemma.
According to a new database of planned and installed renewable energy capacity across Africa, the continent is well on its way to achieving its ambitious energy “leapfrogging” goals.
In fact, figures show that if all planned additions are carried out without issue, some African nations could totally decarbonize by midcentury.
The Renewable Power Plant Database Africa, built by a renewable energy scientific modelling team from Rwanda and Germany, is the first comprehensive overview of renewable energy plants in Africa to include key details such as their geographic coordinates, construction status and capacity (in megawatts), allowing for more accurate and sophisticated modelling.
Such modelling shows that some of the countries with the most advanced renewable energy sectors and plans (such as Nigeria and Zimbabwe) already have enough clean energy projects lined up to conceivably transition away from fossil fuels as soon as 2050.
Furthermore, 76% of Africa’s electricity demand could be supplied by renewable sources by just 2040 in a scenario in which all clean energy plants in the pipeline are built as planned, and existing hydro-, solar and wind power plants are used to their full capacity.
This 76% would be composed of 82% hydropower, 11% solar power and 7% wind power.
However, the heavy dependence on hydropower in the short term is not a good long-term solution as periods of drought pose serious energy security risks.
“We conclude that combining the advantages of hydropower with wind and solar would be a more sustainable alternative to hydropower alone”, the Database team states, adding, “And that hybrid solutions would be the best option’.
Despite Africa’s many challenges, it stands to be one of the most important players in the global energy industry going forward. Its climatic and ecological characteristics and relatively low population density compared to other key regions gives it a major advantage as a hydro, wind, and solar powerhouse.
If built out according to plan, its clean energy output will be formidable. And as the continent develops, its massive workforce could make it a clean energy manufacturing source to reckon with.
Zaremba writes for oilprice.com concessional and semi-concessional.
By: Haley Zaremba
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