The Department of Petroleum Resources (DPR), Friday unveiled the new upstream guidelines which would promote efficiency, transparency and accountability in the sector.
Director of the agency, Engr Sarki Auwalu, who spoke at the annual rig and vessel stakeholders regulatory workshop in Lagos also said the DPR has actual volume of crude oil produced in the country.
Represented by Engr. Enorense Amadasu, Deputy Director and Head of Upstream Division, of the DPR, Awalu said the agency’s ability to account for Nigeria’s crude oil volume was premised on innovation and the ultimate agenda of the incumbent administration to run the nation’s oil and gas sector efficiently and transparently.
He said:”We, as a regulatory agency, can account for every molecule produced in this country, at the well head, at the flow stations and at the terminal. We have all devices to monitor and account for every hydrocarbon produced in the country today.
Next year, we will organise production accounting workshop with all stakeholders including Nigeria Extractive Industries Transparency Initiative (NEITI), Federal Inland Revenue Servuce (FIRS), Oil Producers and Trade Section (OPTS), National Assembly and the media for all to understand how we account for every drop of oil produced and exported,” he said.
Speaking against the backdrop of concerns raised by stakeholders on the possibility of multi-layer taxes in the upstream sector, the agency’s boss said royalty is statutory
He added:”The other costs people are talking about is the processing fee. The new amendments they are concerned about is a token because these are amendments that have not been done in the past 20 years. Thus government is working with all stakeholders to ensure it is reviewed.
“The cost is a minute aspect of the production cost we are talking about. It is less than 0.0001 per cent of the production cost. That basically will not have much impact on the cost of production. But when we talk of cost reduction, we are talking of how you can improve on your logistics to reduce cost, how you can benchmark your cost with other industry related costs in the gulf of Guinea, your data acquisition cost and other big item costs.
“We have also been given a mandate as a regulatory agency to go out and work with sister agencies to reduce production cost by 5 per cent.
In 2020, we will continue with government’s mandate to promote efficiency and accountability and transparency in the sector. We will ensure we grow production from 2.2 million barrels per day, mbpd to 3.0 million barrels per day mbpd and sustain constant engagement with all stakeholders in the sector,” he said.
He spoke on the guidelines,saying it will guide operators on what is expected of them at every stage of their operations.
He said:”The essence of our meeting is to engage the industry and sensitize them on the programmes we have embarked upon for the past one year and also to seek more collaborations and for them to buy into our initiatives.
“The initiatives will promote efficiency in the industry, promote transparency and meet up with government aspirations by keying into government’s agenda on exploration and to achieve the three million barrels per day (bpd) target by year 2020 and to improve reserves to 40 billion barrels from 37 billion barrels as at today”.
RSG Lauds Refining Firm’s Friendly Policies
The Rivers State government has commended Niger Delta Refineries Limited, an indigenous petroleum refining company, based in the state, for its friendly policies on environment and community relations.
The State Deputy Governor, Dr Ipalibo Banigo, made the commendation, when she led members of the House of Assembly Committee on Environment and officials of the State Ministry of Environment on a facility visit to the company.
She said the state government, was aware of the company’s positive impact within and outside its area of operation, appreciated its impact on environment and in community relations.
According to her, the state government is interested in modular refineries in order to discourage illegal refineries as well as safeguard the lives of the people of Rivers.
“We want to discourage illegal refineries to save lives and ensure a safe environment.
“ We are also interested in knowledge transfer and job creation for our teeming youths,” she said.
Earlier, the company’s General Manager (Refineries/Projects), Mr Femi Olaniyan, who conducted Banigo’s team around the facility, said the company established about 25 years ago was operating on Ogbele Field Oil Mining Lease (OML) 54 in Rivers.
He said the company’s vision was to be completely indigenous, adding that it was 95 per cent owned by Nigerians.
According to Olaniyan, the refinery is managed by Nigerians with proven expertise and track record.
“As early as 2006, our company decided to eliminate gas flaring and a gas processing plant was built and commissioned.
“Now, we are the only indigenous company to supply gas to the Nigeria Liquefied Natural Gas (LNG) facility in Bonny Island here in Rivers state.
“We have so far supplied over 50 billion tons of gas to LNG in Bonny. In 2011, we built 1,000 barrels per day production facility.
“We now produce three trucks of diesel per day from our plant here.
“We also produce diesel in commercial quantity with customers drawn from the North East, North West, Abuja, Lagos and so on,” he said.
He also told the team that in 2016, the company commenced the expansion of its refinery to an integrated facility to produce up to 11,000 barrels of jet fuel, diesel, marine diesel and heavy fuel oil per day, adding that the expanded facility would commence full operations by May 2020.
Olaniyan further said that the company, which also produced gas for domestic consumption, “has since Jan. 26, 2019 clocked one million man hours with zero lost time injuries.”
“Our facility, a subsidiary of Niger Delta Exploration & Production Plc, is privately owned and can convert Naphtha to petrol with 60 per cent of its labour force from the community and has no negative safety issues.
“A considerable number of Nigerians have gained from our deliberate efforts to ensure knowledge transfer,’’ Olaniyan said.
Power Supply: AfDB Set To Invest $200m In Nigeria
The African Development Bank (AfDB) is to invest 200 million dollars through the Rural Electrification Agency (REA) to boost power supply in Nigeria.
The Acting Vice President, Power, Energy, Climate and Green Growth Complex (AFDB) Mr Wale Shonibare, said this when he led some management staff of the bank on a visit to the Minister of State for Power, Mr Goddy Jedy-Agba in Abuja on Monday.
Shonibare, also the Director, Energy and Installation in the bank, said that the AfDB board had approved 200 million dollars for the sector through REA to support the roll out of mini grids.
“The AFDB is very active in the power sector of Nigeria and we are ready to do more, the board has approved 200 million dollars to the sector through the REA.
“We are supporting the programme to roll out mini grids across the country and also to encourage productive use of the grids to upgrade communities
“We are also involved in energising education, a programme under which we are dedicating power systems to eight federal universities,’’ he said.
Shonobare said that the bank was also very involved in the transmission sector of the country as it had a 410 million dollars project to support transmission.
According to him, 200 million dollars has already been approved by AfDB board for phase one to improve transmission lines and provision of sub-stations.
“I understand that the agreement was signed last week and we expect the project to progress.
“We are involved in the Jigawa power project, we have approved a grant of one million dollars to support the feasibility study for phase one and the studies are almost completed.
“We are aware of the issues in the sector and we are working with all the players in the sector, the regulators, NBET all along the value chain looking at how we can make the sector efficient,’’ he said.
Responding, the Minister of State, Jedy-Agba said that the federal government was willing to do more in partnership with AfDB to provide electricity for Nigerians.
Jedy-Agba said that power was the bedrock of development, adding that if the country could get it right with technology, they could also do same with power.
He said that Nigeria was in the process of increasing its power generation capacity and the sector as it was keying into funds available by the AfDB to enhance further growth in the sector.
“AfDB had been investing in the sector and they planned to invest more by increasing their funding in development of the power sector,’’ he said.
He assured the AfDB team that any money given to the power sector would be judiciously utilised and accounted for.
PHED Links Power Outage To TCN’s Technical Fault
The Port Harcourt , Electricity Distribution Company, PHED, has disclosed that the power outage being experienced by the residents of Elelenwo, Old Oyigbo, Rivers State Television station and its environs, Onne, Bori since Friday, March 6, 2020 was due to a faulty auxiliary transformer belonging to Transmission Company of Nigeria, TCN.
The power distribution company, in a press statement however, stated that the technical crew from the TCN had already been mobilised to the station to ensure that the fault was rectified as soon as possible.
The statement added that power supply will be restored at the affected areas as soon as the fixing of the technical fault was completed.
The statement, solicited for the patience of its esteemed customers that were affected by the forced outage, while waiting for the restoration.
The company also restated its commitment to quality service delivery to its members.
Meanwhile, some residents of the affected areas have lamented the effects of the outage on their businesses.
A cross section of the residents who spoke with our correspondent, called on PHED and other relevant authorities to fix the problem and restore power supply in the area.
The residents also called on PHED to live up to its new policies on enhanced service delivery to enhance its business profile and earn the confidence of its teeming customers.
One resident, Comrade Michael Budum, who spoke with The Tide, said power supply had been one of the major challenges in the area.
He said , “I want to use this opportunity to urge PHED to improve on its services to earn the confidence of its customers, let people get results form their power bills through power delivery services”.
By: Taneh Beemene
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