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PETAN Rewards SPDC With Best LCD Award

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For its pioneering role in the introduction and implementation of local content development initiative, aimed at building indigenous capacity and capability in the oil and gas industry, the more than 50-member strong indigenous companies providing technical services in the upstream and downstream sectors of the oil and gas industry, Petroleum Technology Association of Nigeria (PETAN), has rated Shell Petroleum Development Company of Nigeria (SPDC), with an award as the best in local content development among all major international oil companies (IOCs) in Nigeria.

The award, which was presented to Shell at the just concluded Offshore Technology Conference (OTC), the world’s leading melting point for exhibition of cutting-edge innovations and expertise in oil and gas industry, in Houston, Texas, United States, by PETAN Chairman, Shawley Coker, is coming just few days after President Goodluck Jonathan signed the Nigerian Oil and Gas Content Development Bill into law, late last month, at the State House, Abuja.

A large contingent of PETAN members, and Nigerian government delegation led by Petroleum Minister, Mrs Deziani Allison-Madueke, were at the OTC to showcase their inventions, innovative skills and expertise in the critical oil and gas industry, and to also learn from global leaders in both upstream and downstream sectors of the industry that would continue to drive world economy and politics for decades to come.

Presenting the award to Shell, Coker said PETAN was excited at the commitment and driving force SPDC has brought to bear in the tacit implementation of the Federal Government’s policy on Nigerian content development and its contributions towards the passage of the bill by the National Assembly.

The PETAN chairman, commended SPDC for the “visible steps” taken so far to encourage the participation of indigenous companies in the highly technical and capital intensive oil and gas industry, and appealed to other IOCs to take a cue from SPDC and improve their stakes in local content development as a veritable means of fast-tracking the involvement of Nigerians in the industry’s lucrative playing field.

Announcing receipt of the unanticipated award on behalf of SPDC before some 40 senior journalists at the 2010 Bureau Editors/News Editors’ Forum in Port Harcourt, last Wednesday, General Manager, Nigerian Content Development, Simbi Wabote, said, Shell was “happy at the recognition, and will continue with efforts to empower more Nigerian companies, especially those based in the Niger Delta, to render key services in the oil and gas industry”.

Wabote noted that he was not surprised at the award following SPDC’s startling performance in the implementation of local content in critical areas of its operations, leading to the award of contracts to indigenous contractors valued at more than $1billion in 2008, adding that despite slow down in the global economy in 2009, SPDC also awarded contracts to indigenous contractors to the tune of more than $718million.

Focusing on the 2009 figure, the Shell NCD general manager stressed that, “of this, some 52 per cent of the contract value, representing $373million, went to companies based in the Niger Delta”.     

According to Wabote, Shell is “committed to developing Nigerian content by partnering with local community contractors to gradually build their capacity”, adding that the major industry player believes that “by supporting both established and new contractors in the Niger Delta, they will grow to play leading roles in the provision of goods and services in the oil and gas industry”.

He listed areas where Shell has excelled in developing indigenous capacity and capability of Niger Delta contractors to include marine logistics, surveillance, civil construction, flowline construction, information technology, and dredging, emphasizing that the focus now was to support community contractors to build additional capacity in engineering, fabrication, materials procurement, supply of steel plates and sections, wells and drilling services as well as inspection and testing.

The Tide recalls that SPDC’s community content initiative is designed to promote the use of human, material resources and services from local communities in the Niger Delta, without compromising quality, health, safety and environmental standards, in order to stimulate the development of the region in particular and Nigeria in general.  

 

Nelson Chukwudi

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US Plans To Reduce Gasoline Prices

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The Biden Administration is considering tapping the Strategic Petroleum Reserve as a potential tool to bring down the gasoline prices
Selling millions of barrels from the SPR may do precious little to impact the price of gasoline directly
·If the Administration were to opt for an SPR sale to increase the availability of crude, it could likely release up to 60 million barrels of crude oil
·The Biden Administration is considering tapping the Strategic Petroleum Reserve as a potential tool to bring down the gasoline prices in America that have hit a seven-year high this year.
However, selling millions of barrels from the SPR may do precious little to impact the price of gasoline directly, traders and analysts say.
A sale from the SPR could be one of “tools in the arsenal”—as U.S. President Joe Biden said this weekend – which the Administration could use to relieve the burden on households who have been paying in recent months the highest prices at the pump since 2014.
Yet, the U.S. may be able to release up to a tenth of the current stockpile in the SPR, traders have told Bloomberg. That wouldn’t be enough to bring down gasoline prices as much as the Administration possibly hopes, they warn.
Moreover, most of a potential sale could consist of sour crude grades, which currently are not the favorite of refiners because they need more natural gas—whose prices are much higher now—to process those sour grades into fuels.
SPR Release On The Table After OPEC+ Snub
“The SPR is certainly on the table as an option. The president will have more to say about that,” U.S. Energy Secretary Jennifer Granholm said on Friday when asked what America can do now to reduce gasoline prices.
President Biden is considering a release from the SPR as a possible move to reduce gasoline prices in the United States, after OPEC+ ignored on Thursday calls for putting extra barrels on the market, Secretary Granholm told Bloomberg last Friday.
The President could announce measures to address high gasoline prices as soon as this week, Granholm told MSNBC in an interview on Monday.
“Hopefully there will be an announcement or so this week,” Granholm told MSNBC, referring to the President’s possible moves.
“He’s certainly looking at what options he has in the limited range of tools a president might have to address the cost of gasoline at the pump, because it is a global market,” the energy secretary added.
Gasoline Prices Highest Since September 2014
Meanwhile, U.S. gasoline prices continued to climb despite the end of driving season two months ago.
In the week to November 8, “The price at the pump continued its slow climb, rising two cents on the week, with the national average for a gallon of gas hitting $3.42,” AAA said on Monday. That’s the highest since September 2014.
“The latest decision by OPEC and its oil-producing allies to maintain their planned gradual increase in output will not help lessen supply constraints, so any relief will most likely have to come from the demand side,” according to AAA.
Shorter days with the end of the daylight saving time could decrease demand for gasoline in coming weeks, AAA spokesperson Andrew Gross said.
SPR Sale Will Likely Be Up To Three Days Of U.S. Petroleum Consumption
If the Administration were to opt for an SPR sale to increase the availability of crude, it could likely release up to 60 million barrels of crude oil, after accounting for mandatory sales pre-approved by Congress and the minimum volumes needed at the storage sites, a source at one of the world’s top oil trading houses told Bloomberg on condition of anonymity.
As of November 5, the SPR held 609.4 million barrels of crude oil, of which 252.5 million sweet crude and 356.9 million sour crude.
A release of up to 60 million barrels in theory would cover around three days worth of total U.S. petroleum consumption, which was 20.5 million barrels per day (bpd) in the pre-pandemic 2019, per EIA data.
According to analysts, an SPR sale wouldn’t do much to reduce prices at the pump and relieve the burden on households amid inflationary pressure for all other goods.
“Other Tools In The Arsenal”
President Biden hinted during the weekend of “other tools in the arsenal” to tame rallying gasoline prices.
“There are other tools in the arsenal that we have to deal — and I’m dealing with other countries; at an appropriate time, I will talk about it — that we can get more energy in the — in the pipeline, figuratively and literally speaking,” President Biden said, referring to the oil market after OPEC+ snubbed the U.S. Administration’s call for extra supply.
On Monday, eleven Democratic Senators wrote a letter to President Biden “to express our support for your efforts to help families and businesses across the nation who are struggling to cope with soaring gasoline prices.”
“Continued U.S. exports and overseas supply collusion could be devastating to many in our states, contributing to higher bills for American families and businesses,” the Senators, including Elizabeth Warren, said.
“In light of these pressing concerns, we ask that you consider all tools available at your disposal to lower U.S. gasoline prices. This includes a release from the Strategic Petroleum Reserve and a ban on crude oil exports. We hope you will consider these tools and others to make gasoline more affordable for all Americans,” the Senators wrote.
Faced with the highest gasoline prices in seven years and one of the worst fears of every American president—high prices at the pump, the U.S. Administration with the long-term clean energy agenda is now scrambling to provide immediate relief to people’s gasoline and energy bills.

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FG Increases Prices Of Electricity Meters

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The Federal Government has raised the cost of both single-phase and three-phase electricity meters.
In a circular dated November 11, 2021, issued by the Nigerian Electricity Regulatory Commission, NERC, price of a single-phase meter has been increased from the current cost of N44,896.17 to a revised price of N58,661.69.
It also increased the price of a three-phase meter from the current cost of N82,855.19 to a revised rate of N109,684.36.
The memo with reference number NERC/REG/MAP/GEN/751/2, entitled ‘Review of the unit price of end-use meters under the Meter Asset Provider and National Mass Metering Regulations’; managing directors, all electricity distribution companies and all meter asset providers are to effect the increment from November 15, 2021.

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Seplat Energy Distances Self From Chairman

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Seplat Energy Plc has said that an ex parte order granted by the Federal High Court in Lagos has barred it from doing business with its Chairman, Dr. ABC Orjiako, and two energy firms.
A statement from the company on Tuesday, signed by its Director, Legal and Company Secretary, Mrs. Edith Onwuchekwa, said: “Seplat Energy has been made aware of the ex parte Interim Orders of Mareva Injunctions which were granted by the Federal High Court sitting in Lagos, Nigeria in a court action instituted by Zenith Bank Plc against Shebah Exploration & Production Company Limited and eight others, with an additional 29 cited parties.
“The Interim Orders give an administrative mandate to Seplat Energy Plc and others not to deal with the assets of (or transfer funds to) Shebah Exploration & Production Company Limited, Shebah Petroleum Development Company Limited and Dr. A.B.C. Orjiako.
“The order has no impact on the operations of Seplat Energy. We understand the injunction relates to loans made by Zenith Bank Plc to Shebah Exploration & Production Company Limited in 2014.”

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