Oil & Energy
Oil Firms Still Flaring Gas – NNPC Report
Gas flare figures released in the most recent monthly financial and operational report of the Nigerian National Petroleum Corporation shows that oil companies in Nigeria are still flaring the commodity in large volumes.
Flare gas is essentially associated gas that is produced with oil, as they both come out of the ground. Flare gas pollutes the environment, causing sickness and other environmental hazards, particularly in locations where the International Oil Companies operate in the Niger Delta.
An analysis of NNPC’s latest monthly report for January 2019 showed that as much as 610.07 million standard cubic feet of gas were flared daily by oil companies in the first month of this year.
Although this volume is 119.48mmscfd lower than what the firms flared daily in December 2018, it was far from the Federal Government’s target of zero gas flare in Nigeria.
It also indicated that there was still enough flare gas that should be commercialised, and as such should adequately fit into the plan of the Nigerian Gas Flare Commercialisation Programme.
On the off-take of natural gas, commercialisation and utilisation, the latest NNPC report stated that out of the 244.65 billion standard cubic feet of gas supplied in January 2019, a total of 151.5BCF of gas was commercialised, consisting of 38.03BCF and 113.47BCF for the domestic and export markets respectively.
This translates to a total supply of 1,226.83mmscfd of gas to the domestic market and 3,780.24mmscfd of gas supplied to the export market for the month.
This implies that 61.73 per cent of the average daily gas produced was commercialised while the balance of 38.27 per cent was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 7.52 per cent for the month under review, which was 610.07mmscfd compared with average gas flare rate of 9.76 per cent, i.e. 770.31mmscfd for the period January 2018 to January 2019.
The report noted that total gas supply for the period January 2018 to January 2019 stood at 3,081.17BCF, out of which 468.23BCF and 1,342.99BCF were commercialised for the domestic and export markets respectively.
Gas re-injected, fuel gas and gas flared stood at 1,269.95BCF.
The figures above, therefore, showed that the volume of gas being flared in the oil sector was still high.
Senior government officials told our correspondent that this was why the NGFCP was initiated to help address the issue and possibly end gas flaring. Gas flaring can be solved with cogeneration
They stated that the Federal Government recently received statements of qualification from a total of 240 firms that want to commercialise flared gas in Nigeria.
It was gathered that the interested parties submitted their statements of qualification in response to the request for qualification package of the Nigerian Gas Flare Commercialisation Programme.
This was contained in an email on updates about the NGFCP, which was sent to our correspondent by the Chairman, Ministerial Steering Committee, NGFCP and Group Executive Director, NNPC/Senior Technical Adviser, Refineries, Gas, Power and Downstream Infrastructure to the Minister of State for Petroleum Resources, Rabiu Suleiman.
“NGFCP is very pleased to advise that 240 SOQs (Statements of Qualification) were received. As you are aware, a Proposal Evaluation Committee and an Independent Observer Group were appointed and inaugurated on the 11th of April, 2019 by the Minister of State for Petroleum Resources, Ibe Kachikwu,” Suleiman said.
He added, “The PEC shall evaluate the SOQs submitted by the applicants to determine qualified applicant status in compliance with the design criteria of the request for qualification and also to evaluate the proposals that would be submitted by qualified applicants to determine those bidders that achieve preferred bidder and reserved bidder status.”
Suleiman said the PEC and IOG would begin their work of evaluating the SOQs starting from June 2019, adding that it was expected that the results would become known at the end of the exercise within four weeks.
“The general public and all applicants will be advised thereafter on the names of the candidates adjudged successful who shall be invited to submit their proposal for flare gas utilisation through the request for proposals phase of the NGFCP,” he stated.
Oil & Energy
AEDC Confirms Workforce Shake-up …..Says It’ll Ensure Better Service Delivery
As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.
It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.
“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.
“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.
“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.
AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.
The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.
“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.
“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.
Oil & Energy
Economic Prosperity: OPEC Sues For Increase In Local Crude Oil Refining
Oil & Energy
Senate Seeks Mandate To Track, Trace, Recover Stolen Crude Oil Proceeds
Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.
“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.
Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.
“This represents one of the most troubling cases of economic sabotage our nation has ever faced.
“We have made far-reaching recommendations to end this long-standing menace.
“There is need for strict enforcement of international crude oil measurement standards at all production and export points.
He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.
The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.
He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.
“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.
“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.
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