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Group Wants More Indigenous Firms In Crude Dev

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Ahead of the bidding rounds for 47 expiring oil licenses in 2019, Partners for Petroleum and Energy Sector Prosperity Initiative (P-PESPI), an advocacy group in the petroleum and Energy sector has called for more opportunity to be given to indigenous oil companies in the exploration and production arm of the oil and gas sector.
Charles Ibiang, chairman of the group said allowing local companies like Seplat and Belemaoil will take some of the marginal fields and onshore oil blocks due for renewal, is a strategy that will reduce conflict in host communities.
“We advocate that future allocation of oil leases, particularly in 2019, when most or about 47 oil block leases would have expired and subsequent renewal processes commenced, our model should be put into consideration even as we call for an open and transparent bidding round.
“Indigenous upstream companies and marginal field operators that have shown serious capacity like Belemaoil, and Seplat, should be given an opportunity for more assets in order to decrease their exposure to risk through huge production and economy of scale.
“Nigerians must begin to play a major role in both the onshore and deep offshore upstream sector of the Petroleum Industry,” the statement read.
According to the group, a strategy of reducing conflicts in oil-bearing host communities in the Niger Delta and preventing oil and gas infrastructure/ pipeline vandalism will be by allowing indigenous upstream oil companies take over or acquire oil assets from the divestment of marginal fields owned by multinationals and NNPC in various host communities.
Ibiang says these companies have good will, a comparative advantage over community relations and security issues in these areas. He feels they should, therefore, be given serious consideration as long as they possess the requisite experience, competence, technical and financial capabilities.
He, therefore, cautioned against Shell applying for a renewal of the Oil Mining Lease (OML1) 11 and 25 blocks. Ibiang believes the further operation of these blocks should be turned-over to Belemaoil, who has expressed interest in the fields.

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Micro-Grids, Solution To Africa’s Power Problems – Expert

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The incorporation of micro-grids into a hybrid system of electrification is the best solution for Africa’s power supply problems, an international energy consultant based in Johannesburg, Anastasia Walsh, has said.
Walsh, who described electrification as an ongoing and foundational investment necessary to realise all modern-day development objectives, urged governments in Africa to explore the use of mini and micro-grids as they strive to provide power.
She said, “Despite bullish policies, the fact remains that over 640 million Africans lack access to electricity. The effect of this is apparent.
“It impedes economic growth, it inhibits the advancements of self-reliant local communities and it threatens national security. African governments are beginning to rethink their electrification plans.
“Grid modernisation, specifically the deployment of micro-grids in rural areas, provides a promising strategy.”
She noted that attempting to replicate the centralised utility models implemented in the United States and Europe had not succeeded in improving energy access across the continent.
Walsh said despite this, it was as if many governments and utilities wrongly maintain the position that the expansion of the traditional grid infrastructure was the solution.
She said, “In areas where communities have access to the central grid, they still have to supplement the intermittency of the power with diesel generators.
“On the flip side, the utilities are financially strained because they are unable to collect revenues from their customers.
“The low rate of revenue collection is due to the unsustainable tariffs the providers impose on customers as a result of the political pressure exerted on them. This results in the utilities being unable to finance upgrades in infrastructure, further exacerbating the issues.”

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Cautious Optimism Greets Oil Discovery In Gongola Basin

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Exciting as the news of the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin may be, stakeholders, yesterday, insisted that the development would only be meaningful after the volumetric of the hydrocarbon is determined.
They equally noted that festering insecurity, environmental issues, dearth of infrastructure and cost of production were major factors that must also be taken into account, just as economically viable farmlands, as well as communities may be affected and relocated.
Exploring the many implications of the development, some industry players noted that the development is also capable of dousing agitations of the Niger Delta region, hoping that it would balance resource locations in the country.
Exciting as the news of the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin may be, stakeholders, yesterday, insisted that the development would only be meaningful after the volumetric of the hydrocarbon is determined.
They equally noted that festering insecurity, environmental issues, dearth of infrastructure and cost of production were major factors that must also be taken into account, just as economically viable farmlands, as well as communities may be affected and relocated.
Exploring the many implications of the development, some industry players noted that the development is also capable of dousing agitations of the Niger Delta region, hoping that it would balance resource locations in the country.
The Nigerian National Petroleum Corporation (NNPC), which announced, on Friday, the discovery of crude oil and gas in the Gongola Basin, northern Nigeria, noted that the commercial viability of the discovery coming from the drilling of a total depth of 13, 701ft before hitting oil and gas in several levels is yet to be ascertained.

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PANDEF Applauds OML 25’s Peaceful Resolution

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The Pan Niger Delta Forum(PANDEF) has applauded the peaceful resolution of conflict arising from the Oil Mining Licence (OML) 25 between the multinationals and host communities in Rivers State.
Leader of PANDEF, Chief Edwin Clark, gave the commendation at the official reopening of the flow station by host communities, including, Koko Ama, Offoin Ama, Belema Ama, and Ngeje in Kula Kingdom in Degema Local Government Area of Rivers State, at the weekend.
Clark, who spoke through a former Nigerian Ambassador, Godknows Igali, stated that the approach could be used to address similar issues in other oil bearing communities within and outside Rivers State.
He pledged his commitment towards working with the Federal Government in ensuring that the OML community engagement model is replicated in other oil bearing communities in the Niger Delta region.
Clerk commended Belema oil, Nigeria National Petroleum Corporation (NNPC) and Shell Petroleum Development Company (SPDC) for their spirit of negotiation and peaceful resolution of conflicts.
“He (Clark) asked me to let you know that he would continue to work with you, work with the Federal Government and work with all stakeholders and ensure that this type of synergy is replicated not only in and around Kula OML area, but around the oil producing communities so that there can be peace”, Igali said.
In his address, the spokesman of PANDEF, Mr Anabs Sara-Igbe, thanked the Federal Government for moving the construction of the 85 km Degema-Kula Express Way away from the Ministry of Niger Delta to the Niger Delta Development Commission.
He said, “I thank the Federal Government particularly for moving the 85 km Kula road to Degema from the Ministry Niger Delta Affairs to NDDC, who will work with Belema Oil and SPDC”.

 

Tonye Nria-Dappa

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