The Shell Petroleum Development Company of Nigeria has insisted that it does not make any business sense for any hydrocarbons exploration and production company to deliberately spill crude oil into the environment in a competition-ridden industry.
Instead, Shell would spend all available resources and deploy the most modern technology to capture, process, pump and store for export, the minutest drop of crude oil and natural gas liquids in order to make maximum return on investments.
Raymond Asukwo, head, pipelines, SPDC-East, who said this during a special media session in Port Harcourt last Thursday, stressed that the clarification became necessary following certain insinuations that oil majors operating in the Niger Delta, including Shell, were in the habit of spilling oil, and not making efforts to clean-up and remediate impacted sites.
Asukwo, noted instead, that the activities of pipeline vandals, crude thieves and operators of illegal refineries, have unleashed more devastating damage to the region’s environment.
He explained that more than 70 per cent of all spill incidents and 98 per cent of total volume of oil spilled yearly are associated with illegal activities of mostly armed gangs, who depend on crude and pipeline theft to eke out a living or deliberately attack oil facilities as a means of expressing their angst over sustained neglect of the region by the government.
Asukwo, particularly fingered Bomu and Soku oil fields in Rivers State as worst areas where criminal gangs have created oil blocks, built manifolds and refineries for themselves using most crude and unsafe means to siphon oil into barges, vessels, tankers, and sometimes, train coaches in exchange for cheap money and arms from ready buyers.
The Shell pipelines expert stated that the activities of operators of illegal refineries, oil bunkerers, and facilities vandals now threaten the United Nations Environment Programme (UNEP) study team’s efforts in Ogoniland as illegal refineries and oil facilities’ sabotage have become more frequent features, especially in the Bomu, Bodo, Kpor, K-Dere axis of Gokana.
A 40-minute overfly of Bomu field in Ogoni by The Tide, United States-based Cable News Network (CNN), and Bloomberg News spotted no fewer than 20 islands or blocks harbouring more than 200 illegal refineries, numerous illegal connections to crude facilities and deserted oil bunkering points, with resultant smokes billowing at intervals, and the crude thieves scampering for cover on sighting the helicopter.
The team also saw, with utter trepidation, kilometers of stretch of streams and rivers which empty into Bonny river, heavily polluted with crude formations and slicks, while the green vegetation has been completely eliminated in very large, hitherto, mangrove forests and wetlands.
Asukwo had explained that SPDC has some of the best oil spills management systems in the world, including Pipeline Integrity Management System (PIMS), Pipeline Intelligence Pigging System (PIPS), Oil Spills Response Management System (OSRMS), Oil Spills Contingency Plan (OSCP), as well as Communities And Shell Together (CAST), which manages pipeline stakeholder issues such as surveillance and security.
He said the application of the above plans ensures that weak and faulty pipelines, valves, among others, are detected and replaced to maintain production capacity, saying that only unserious business concern would allow its critical and essential facilities to fail, and consequently loose revenue.
According to him, deferments arising from crude shut-in as a result of operational failure or sabotage on its facilities and huge costs of repairs were business challenges Shell would want to avoid but pointed out that the socio-economic conditions have forced the company to operate under tight situations.
Nigeria’s LPG Production Hits 5m Tonnes
The Federal Government says Nigeria currently produces about five million tonnes of Liquefied Petroleum Gas (LPG) annually and only eight per cent of the production is being utilised domestically, with the bulk being exported.
It says domestic LPG production stands at about 45 per cent of annual consumption, with Nigerian Liquefied Natural Gas Limited (NLNG) supplying 450,000 metric tonnes per annum while 55 per cent is imported.
Special Adviser to the President on Economic Matters in the Office of the Vice President, Dr Adeyemi Dipeolu, made this known recently at an India-Nigeria LPG Summit, Abuja, 2022.
The Tide’s source reports that the India-Nigeria LPG summit was hosted by Nigerian National Petroleum Company Limited (NNPC Ltd.) with the support of the Office of the Vice President and World LPG Association (WLPGA).
The summit is expected to translate into bilateral exchanges to foster mutual collaboration and opportunities for the Nigerian LPG industry to learn from India’s experience, one of the world’s most successful National LPG penetration initiatives.
In a keynote address, Dipeolu said Nigeria had the ninth largest proven natural gas reserves in the world, and also the second largest producer of LPG in Africa after Algeria.
“LPG adoption in the Nigerian market, of course, is still very low with per capita consumption at about 1.8 kg, which is below the West African average.
“The household energy mix in Nigeria is about five per cent LPG, 65 per cent biomass and 30 per cent kerosene.
“The preference for the use of other sources is largely due to high switching costs associated with the acquisition of cylinders and LPG stoves, lack of awareness of associated benefits and safe LPG handling across consumer basis.
“There is also the high cost of LPG in comparison with alternative fuels, insufficient and inappropriate cylinders in circulation and inadequate infrastructure, especially trucks, roads, rail pipelines and plants,” he said.
He said the predominant use of biomass for household cooking resulted in deforestation and ambient air pollution, which also could lead to death due to stroke, heart disease, lung cancer and chronic respiratory diseases.
The Presidential Aide underscored the imperative for policies, incentives and investment to grow the Nigerian LPG market.
This, he said, would make cleaner fuel available, accessible and affordable, not only for household cooking, but also in autogas, captive power generation, heating and cooling as well as agriculture and industry.
He expressed optimism that Nigeria would learn from Indian’s experience with the Pradhan Mantri Ujjwala Yojana (PMUY) scheme implemented by the Indian Government in May 2016 such that LPG penetration in that country increased from 62 per cent to 100 per cent currently.
He said the theme of the summit, ‘Energising the Future: Leveraging the Indian Experience to Achieve Nigerian National LPG Aspiration’ underscored the need for cooperation and collaboration between the two countries.
Dipeolu said the cooperation should dwell on policy structures; health, safety and environmental methods and standards, ICT, infrastructure management techniques, stakeholder engagement and innovative programmes to incentivise Nigerian LPG market growth.
According to him, the recently enacted PIA specifically provides enablers for robust midstream and downstream gas development through promotion of policies, incentives and wavers to stimulate investments.
Others, he said, included removal of VAT on domestic LPG, presidential waiver on duty imported LPG equipment, tax holiday on new investment on gas and approval of eight new LPG terminals and storage facilities to add 150,000 metric tonnes gas capacity.
FG, NNPC Inject 20m Cylinders Via New Gas Coy
The Nigeria National Petroleum Company (NNPC Ltd) is collaborating with the Office of the Vice President on establishment of Gas Funding Company Ltd for injection of 20 million cylinders in the next five years.
The NNPC Ltd said the company’s establishment, which involved collaboration of other relevant stakeholders and being done under the Marketer Cylinder Owned Model, would boost Liquefied Petroleum Gas (LPG) penetration.
The Group Chief Executive Officer (GCEO), NNPC, Malam Mele Kyari, said this at the opening of India-Nigeria Liquefied Petroleum Gas (LPG summit) in Abuja.
The India-Nigeria LPG summit was hosted by the NNPC with the support of the Office of the Vice President and World LPG Association (WLPGA).
The summit is expected to translate into bilateral exchanges to foster mutual collaborations and opportunities for the Nigerian LPG industry to learn from India’s experience, one of the world’s most successful national LPG penetration initiatives.
The summit has its theme as: “Energising the Future: Leveraging the Indian Experience to Achieve Nigerian National LPG Aspiration.”
Kyari, represented by the Group Executive Director, Downstream, NNPC, Mr Adeyemi Adetunji, said the summit would be required to submit a report detailing gaps identified and recommendations on best practices from the Indian experience.
This, he said, would be for adoption in Nigeria by relevant stakeholders to achieve rapid National LPG penetration.
He said the summit would equally discuss the Nigerian experience and Indian example covering safe LPG handling, pricing and financial support.
According to him, this will enhance LPG affordability among the poor, communication strategies, ICT and infrastructure as well as collaboration on Cylinder management and manufacturing.
Kyari said Nigeria had identified its abundant gas resources as fuel for energy transition which informed its net zero commitments by 2060 and the declaration of 2021-2030 as Decade of Gas.
“NNPC Ltd is an energy company with new investments in gas, power and renewables. Key pipeline projects such as ELPS II, OB3 and AKK to deliver a total of 6.2 billion cubic feet of gas per day to demand nodes across the country are at various stages of completion.
“We have strong presence in the LPG value chain contributing about 45 per cent of domestic supply via JVs (Oso Bonny River Terminal) affiliates (Nigeria LNG Ltd and Ashtavinayak Hydocarbon Ltd) and subsidiaries of NPDC.
“The NNPC Ltd. is fully aligned with the Federal Government’s National Gas Expansion Programme (NGEP) and National LPG Expansion Plan initiatives and has a full-fledged LPG business unit established to commercially drive the National LPG penetration.
“Accordingly, NNPC Ltd is commissioned to deploy 740 LPG Micro Distribution Centres (MDCs) 37 Filing Plants and Skids in its 541 stations within the next three years,’’ he said.
Michael Kelly, the Chief Advocacy Officer and Deputy Managing Director, WLPGA, said the both countries had a powerful role to play in geopolitics for the rest of the century.
Kelly said the discussions would be followed up to foster the cooperation during its LPG week in Delhi in November, adding that looking at lessons learnt and grafting them into Nigerian context would be impactful.
He said the focus of the summit was to share India’s experience with the Pradhan Mantri Ujjwala Yojana (PUMY) scheme implemented by the Indian Government in May 2016.
This scheme pursued an aggressive LPG penetration drive, providing free cylinders, stoves and valves to end users.
This resulted to growth in LPG consumption in last 10 years, with the Indian National consumption currently at 30 million MT per annum and LPG penetration from 62 per cent in 2016 to 99 per cent in 2019.
TotalEnergies Commits To Grooming Young Leaders
An International Oil Company (IOC), TotalEnergies, has restated its commitment to grooming tomorrow’s leaders using its Book Reading programme as a way of helping children to deal with all distractions, including social media.
Deputy Managing Director, Joint Venture Assets (JVA), TotalEnergies, Guillaume Dulout, made this known at the company’s 2022 Book Reading and Open Day held in Port Harcourt for Senior Secondary Schools in Rivers State, weekend.
Represented by General Manager, Facilities Management and Administration, Mr Patrick Somiari, Dulout noted that it was exciting to the Book Reading event, being the first physical book reading event after the COVID-19 lockdown and restrictions.
He added that TotalEnergies would apply the Book Reading and Open Day programme, with the theme, “Today A Reader, Tomorrow A Leader”, to drive a sustained measure to nurture children into becoming successful leaders of tomorrow.
He explained that the annual Book Reading programme is TotalEnergies/NNPC Joint Venture’s goodwill to encourage students to embrace reading as a way of life, noting that “Open Day presents a window to share career paths and opportunities in order to guide the students to make informed and rewarding career decisions”.
Observing that reading did not come without some difficulties, Dulout encouraged the students to continue to push as it was the only way to prepare for leadership.
According to him, “being a leader does not usually come without effort. Thankfully, the few who put in the work prepare themselves to be leaders when the opportunity comes.
“Perhaps, nothing positions you better for leadership than reading. You must read; read regularly, read voraciously. It was in that light that the English philosopher and statesman, Sir Francis Bacon, observed that ‘Reading maketh a full man’.
“Reading involves a considerable level of concentration and thus, nurtures patience. What follows is better vocabulary and knowledge. Indeed, patience, knowledge and a rich reservoir of vocabulary help you establish the identity of a leader. Reading nurtures values that make you a leader”.
He stated that the book chosen for the event, “Diary of Fatherland”, by Charles Nelson, was chosen for its content as it would increase their appetite for books and place them on the path of leadership.
“You must start reading today. The book we have chosen to read at today’s event, ‘Diary of Fatherland’ by Charles Nelson, is designed to heighten your appetite for books and place you on the path of leadership.
“Of course, you will not find reading a piece of cake or undemanding, especially in the times we live in. If dealing with the appeal of the traditional media, especially TV and cinema, was difficult, the proliferation and allure of the social media would make reading more challenging.
“But don’t allow these media and their devices to be a drag on your dream of becoming a leader. I believe all the distractions that are incidental to young ones today have magnified the importance of the Book Reading & Open Day programme”, he said.
He charged them, saying, “Participate, be attentive, be involved, read. My sincere hope is that at the end of today’s programme, you would make the decision to be a reader, a leader”.
In his remarks, the Rivers State Commissioner for Education, Prof Prince Chinedu Mmom, charged the students to sustain their reading habits as there was no short cut to academic progress.
Participants were drawn from 10 Rivers Senior Secondary Schools, including Bluebell Montessori International Secondary School; Government Girls Secondary School, Rumuokwuta; Army Day Secondary School, Bori Camp; Community Secondary School, Okporo; Community Secondary School, Rumuomasi; Community Secondary School Rukpokwu; Graceland International School; Community Comprehensive Secondary School, Rumuokwurusi; Tantua International Group of Schools; and Government Technical College, Port Harcourt.
By: Tonye Nria-Dappa
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