The Nigerian National Petroleum Corporation (NNPC) may have issued the 2018/2020 crude export contracts to 50 local and international oil traders, including Vitol, Trafigura and Glencore.
It was gathered that as part of the efforts to encourage local participation in the lifting of crude, the corporation selected 20 Nigerian companies, unlike in the 2017/2018 contracts where 18 Nigerian companies made the list.
Also, unlike the 2017/2018 contracts where all the contracts were for 32,000 barrels per day (bpd) except for Duke Oil Limited, the oil trading arm of NNPC which got a term contract for 90,000bpd, the crude allocations for the 2018/2020 contracts are for 30,000bpd.
According to the allocation paper cited by The Tide and was signed by NNPC’s Group General Manager in charge of Crude Oil Marketing Division, Mr. Mele Kyari, each of the 50 companies would lift 950,000 barrels of crude oil in the two-year duration of the contracts, which would run from July 2018 to June 2020.
It was gathered at the NNPC Zonal office in Port Harcourt that apart from the three world’s largest oil traders, several local and international traders such as Total, Oando, Masters Energy, Sahara Group and NNPC’s Duke Oil also made the final list.
Other beneficiaries of the two-year term contracts include MRS, Matrix Energy, Aipec, AMG, Arkleen, Augusta, Barbedos, BB Energy, Bono Energy, Calson, Cassiva, Cepsa, Cretus, Eterna Oil, Gladius Commodities, Hinstock, HPCL, Leighton, Levene, Litasco and Mocoh.
Also included in the list is Emadeb, a fast-growing Nigerian oil trader, AA Rano, North West, Ocean Bed (Sahara), Petraco, Petrogras, Propetrol, Prudent, Sacoil, SEER, Setana Energy, Setraco, Shoreline, Socar, Sonara, Ultimate Gas, Voyage, West African Gas, Zitts and Lords, ZR Energy (Trafigura) and Obat Oil & Gas.
The contracts would run for two years, unlike previous contracts, which were valid for one year.
‘FG Loses N5.9bn Annually To Illegal Bunkering, Pipelines Vandalisation’
A group known as the Association of Surface Tank Oil and Gas Retailers, (ASTOGRN) says available statistics have revealed that oil bunkering activities and pipeline vandalisation in the Niger Delta costs the Federal Government about N5.9 billion annually.
Chairperson of the Rivers State chapter of the association, Comrade Patience Uche, made the disclosure during an exclusive interview with The Tide in Port Harcourt, at the weekend.
Apart from the huge loss in revenue, she said oil bunkering and pipeline vandalisation had also resulted in the colossal loss of lives as most of the vandals were always consumed in pipeline explosions during the bunkering activities.
Comrade Uche, who decried the increasing involvement of youths in illegal bunkering, advocated for a more proactive and corrective measure to bring lasting solution to the vice.
According to her, part of the solution is the building of modular refineries in the Niger Delta and the engagement of the youth in the oil and gas sector.
“Most of the youths who got involved in illegal oil bunkering and lost their lives in the process could have played a more creative and productive role in the oil and gas industry if they were functionally trained.
“The Federal Government should be serious about the establishment of modular refineries and the training of youths to participate in the process, this will go a long way to tackle the challenges of illegal bunkering in the Niger Delta, she said.
Comrade Uche said the major drive of the association was to make oil and gas business rural based, “to improve the socio-economic and general living conditions of its members”.
She was optimistic that the association will achieve the targets by encouraging its members to get licences from the Department of Petroleum Resources (DPR) to be actively involved in the oil and gas business.
She pointed out that the initiative would also reduce petroleum supplies from foreign marketers through importation of products, kill the spirit of bunkering and increase the federal government’s revenue on surface tank retails business in the country.
By: Taneh Beemeneh
NLNG Offers 55% Of Procurement For Train 7 Execution To Nigerians
Managing Director, Nigerian Liquefied Natural Gas (NLNG) Mr Tony Attah, says that 55 per cent of all procurement for execution of the Train 7 project would be undertaken by Nigerian vendors.
Attah disclosed this at the just concluded 3rd Nigeria International Petroleum Summit (NIPS) in Abuja.
The theme of the summit is: “Widening The Integration Circle: Technology, Knowledge, Sustainability Partnership’’.
He said, “The very quick wins from Train 7 project for Nigeria is the creation of jobs for our teeming youth, netting up to 12,000 direct jobs at the construction phase and the associated skills acquisition through technology transfer.
“Riding on the back of a robust Nigerian Content plan endorsed by the Nigerian Content Development Monitoring Board (NCDMB), 55 per cent of the engineering activities for Train 7 will be carried out in-country
“Fifty-five per cent of all procurement for execution of the project will be undertaken by Nigerian vendors.
“100 per cent of the installations and construction will happen in Nigeria and the entire project will attract huge foreign direct investment to the Nigerian economy.”
Represented by the General Manager, Production, Mr Adeleye Falade, he said that other benefits of train 7 included the emergence of upstream and other associated projects that would bolster the economy.
“With conversations like the ones we are having here at NIPS, there is no doubt that we can all build synergies that should propel Nigeria LNG to sustain its winning streak and support the emergence of new LNG suppliers in the country and the continent at large,” he said.
“Our motivation to build and operate Train 7 is heightened by the proven success recorded by Nigeria LNG in the past 20 years of operation,’’ he said.
On hazards, he said that at the current state the company had significantly reduced the environmental hazards arising from gas flaring.
“To date, the company has converted about 191.5bcm (billion standard cubic metres) or 6.8cf (trillion cubic feet) of Associated Gas (AG) to Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs),’’ he said.
According to Attah, the feat has reduced gas flaring by Upstream Companies from over 60 per cent.
“ln the past 20 years, Nigeria LNG has resiliently maintained top rating as a significant player and the 5th major supplier of global LNG with the export of over 4,500 LNG cargoes delivered safely worldwide.
“The addition of Train 7 to our current six-train plant will add another eight million metric tons of LNG to the current sustained 22 million metric tons production capacity of our plant.
That, he said, would keep Nigeria prominently on the list of the top 7 suppliers of global LNG.
“This is an enviable position for an African country to achieve in the face of our evolving technological advancement on cleaner energy,” he added
He noted that Nigeria’s growing response to the demand for cleaner energy sources to power the world had accentuated the critical role that the premium crude oil and natural gas resources played in that space.
He noted that the focus of this year’s conference was a pointer to the fact that Nigeria and Africa continent were conscious of the need to strategically harness all those elements.
“They will certainly give us an edge to maximally benefit from the volatile and highly competitive global energy sector,” he added. (NAN)
Stakeholders Want Replacement Of Obsolete Pipelines In N’Delta
As part of measures to avert further pipeline explosions in the Niger Delta, stakeholders in the region have called for the replacement of all obsolete oil pipelines in the area.
Stakeholders expressed their views during a random interview with our correspondent on the growing spate of pipeline explosions in the region.
President of the Niger Delta Coalition Against Violence (NDCAV), Comrade Lekia Christian, said pipeline explosions in the Niger Delta were linked to leakages from broken pipelines that spilled out petroleum products to the surface.
He said people were tempted to scoop the spilled crude and were burnt to death in the process.
“Pipeline explosion has become a recurrent event in the Niger Delta and lives have always been wasted in these sordid experiences. It is the responsibility of the federal government, through relevant institutions, to find a lasting solution to this prevalent issue.
“Most of the pipelines in the Niger Delta are old and need replacement; something has to be done as a matter of urgency to avert further disasters”, he said.
Comrade Christian called for improved security and surveillance on the pipelines, while also recommending active involvement of the communities in pipelines surveillance activities.
In his views, an environmental sociologist and lecturer in the University of Port Harcourt, Dr Steve Wodu, also blamed the sequence of pipeline explosions in the Niger Delta on broken down facilities which he said, constituted serious risk to the lives of the people of the host communities.
“It’s unfortunate that most of the pipelines conveying crude oil in the Niger Delta are yet to be replaced despite the dilapidated status of the facilities. This is totally wrong and constitutes big risk to the lives of the people. The NNPC and PPMC should embark on an overhaul of all oil pipeline facilities in the Niger Delta to address the issues of pipeline explosions in the area.
“The negligence of relevant institutions in maintenance of pipelines is an issue of critical concern as it affects the lives of the people negatively. This is a disservice and another worst form of injustice to the people of the Niger Delta”, he said.
A lecturer at the Ken Saro Wiwa Polytechnic, Bori, Engineer Festus Tor, told The Tide that, “pipeline explosions can only be tackled effectively if the host communities are fully mobilised by the government to enable them get involved in surveillance activities. The communities stand a better chance to keep watch over the pipelines, because they are also the victims of the explosions that kill the people and destroy their farm lands”.
It would be recalled that the issue of pipeline explosions was recently raised at the plenary of the Senate, following a motion by Senator George Sekibo and three others.
The Senate, in its ruling, urged the NNPC and PPMC and other relevant agencies in the oil and gas industry to find a lasting solution to the issue.
The Senate also called for a holistic review of all existing pipelines to ascertain the levels of their functionality.
By: Taneh Beemene
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