Oil & Energy

Akwa Ibom Fishermen And Oil Spillage

Published

14 years ago

January 14, 2013

Fishermen in Akwa Ibom in February 2011, held a prayer session to seek God’s intervention to stop oil spillage in the area.

Their prayer appeared answered as there was no case of spillage in the Qua Iboe oil fields for 10 months.

However, the December 20 Bonga oil spillage in the same year, in which 40,000 barrels of crude oil were discharged into the Atlantic Ocean, took industry watchers by surprise.

The spillage which emanated from the Bonga deep-sea oil facility operated by Shell Nigeria Production and Exploration Company (SNEPCO), ExxonMobil, Eni and Total as joint venture partners with NNPC, is located about 120 kilometres from the coastline and accounts for 200,000 barrels of crude oil per day.

The oil fields are named after a local fish species, Bonga. The fish is notable for its resilience and unique taste and suitable for most dishes along the West African coastline.

The Director-General, National Oil Spill Detection and Response Agency (NOSDRA), Dr Peter Idabor, says the spill covers approximately 950 squre-kilometres in the ocean surface.

Seven months after the spill, the agency imposed a $5 billion administrative fine on Shell.

Idabor says the fine is for impact of the spill on the sea and aquatic lives.

“Looking into the sea, the 40,000 barrels oil spill impacted about 950 squre-kilometres. beneath the sea bed. So as we speak, there is still a lot of oil at the bottom of the ocean which has not been cleaned up,” Idabo says.

“Let me note here that this administrative fine is different from compensation, because investigations are ongoing, and Shell may also pay compensation if we determine more damage.”

The NOSDRA boss notes that as a result of the spill, the livelihood of the people in the communities along 120 kilometres to Bonga has been affected.

“Due to contamination of the open water, there are job losses as the people are mainly fishermen, and this has also led to high incidence of migration of the people from these communities in search of fresh water.”

The people of the area were not so lucky in 2012, as three spill incidents have occurred within the year, on August 13, August 24 and November 9 at the Qua Iboe oil fields.

Chairman, Esit Eket Local Government Council, Chief Ibanga Etang, says the November 9 spill impacted negatively on fishing communities in southern Akwa Ibom.

“The spill contaminated the water, causing fish drought and distorting the marine food chain.

“Whenever a spill occurs, fishermen are thrown out of business because when the waters become toxic, fishes migrate from the reach of fishermen.

“The recurring spills put to question the claims by Mobil management that it has replaced aged pipeline network,’’ Etang notes..

Mrs Udual Eyo-Sunday, a fish seller, says that they were adversely affected by the oil spill.

“Whenever there is oil spill, the fishermen do not bring fish back from the waters and when we cannot buy fresh fish, we have nothing to dry and sell.

“We find it difficult to feed our children and the situation will continue for a long time.

“That is why we need relief materials and compensation for the damage to our source of livelihood,’’ Eyo-Sunday says.

A community leader in Ibeno Local Government, Chief John Etim, describes the latest spill as the worst in recent times.

He says that frequent spills have impoverished the fishing population on the coastline.

“Oil spills have been a major obstacle to our fishermen and it is worsened by the insensitivity of Mobil in the past. But we have seen signs that they are turning a new leaf.

“The way Mobil Producing Nigeria (MPN) has communicated with the communities gives us hope amidst disappointment. We, however, urge them to be reasonable and compensate every one that was impacted,’’ Etim says.

The fishermen, who operate under the aegis of Artisan Fishermen Association of Nigeria (ARFAN), say a safe operational environment at the oil fields will support fishing activities and ensure food security in the country.

Chairman of ARFAN in the state, Rev. Samuel Ayadi, says that the fishermen have suffered untold hardship since 2010 due to frequent oil spills.

“Many fishermen were forced out of business for the greater part of the year due to pollution of the Atlantic by oil and gas companies operating within our territorial waters, he says.

Ayadi explains that although 2011 was spill-free from January till December, fishermen in the state were yet to receive any compensation for the previous incidents.

The association’s chairman also notes that due to the rigorous oil spill compensation process, fishermen are always at the losing side whenever a spill occurred.

“Our existing laws on oil spill compensation favour the international oil companies to the detriment of fishermen who lack the resources to pursue their claims.

“We have oil spill compensation claims that have been pending for more than 10 years and even the cases we won in court, the companies refuse to comply with such judgment.’’

Ayadi stresses the need for a harmonious relationship between the host communities and oil companies.

“The Atlantic Ocean where the oil companies operate is our ‘farm’. We are there day and night and whenever there is an oil spill or any interference with oil installations, we are the first to know and report to the security agencies.

“The companies should see us as their neighbours,” Ayadi adds.

To ensure a cordial relationship between Mobil and host communities, Akwa Ibom Government in October, 2011 set up a committee to produce a Memorandum of Understanding (MoU).

The stakeholders at the meeting regretted the deteriorating relationship and promised to work together for the common good of all.

They also pledged to hold regular dialogue and consultations to build a cordial relationship that would ensure peaceful operations at the Qua Iboe oil fields.

Stakeholders have therefore, suggested that oil companies should hold regular consultations with oil producing communities, to reduce frictions.

They also stress the need for the companies to maintain their facilities to check avoidable oil spillage.

Nwakamma writes for News Agency of Nigeria (NAN)

Nathan Nwakamma

Oil & Energy

Global Coal Consumption Hits Record Even As Coal Power Declines

Published

14 hours ago

August 3, 2026

The Tide

Global coal consumption reached another record in 2025, seemingly contradicting years of discussion about phasing out the world’s most carbon-intensive fossil fuel.

But the headline number does not tell the whole story.

The latest Statistical Review of World Energy shows that global coal consumption rose to 166.0 exajoules last year. That represented an increase of 0.7% from 2024.

At the same time, global electricity generation from coal declined. Coal-fired power production fell 0.3% to 10,511 terawatt-hours.

Those two trends are not mutually exclusive. Coal is used not only to generate electricity, but also in steelmaking, cement production, and other industrial processes. The divergence also reflects a changing geographic picture in which coal is declining across much of the developed world while remaining deeply embedded in Asia’s industrial economy.

A Record With Important Qualifications

Coal consumption reached a record in absolute terms, but it did not keep pace with overall energy demand.

Total global energy supply increased from 592.2 exajoules in 2024 to 600.3 exajoules in 2025, an increase of about 1.4%. Coal grew more slowly, so its share of the global energy mix slipped from 27.9% to 27.7%. Thus, despite the global record in coal consumption, coal lost a small amount of market share.

This pattern appears frequently during energy transitions. A fuel can continue growing in absolute terms even as faster-growing alternatives reduce its share of the total. With global energy demand still rising, losing market share does not necessarily mean declining consumption.

Renewable energy provides a relevant comparison. Renewable energy supply increased by nearly 10% in 2025, far outpacing coal. But the world’s appetite for energy was large enough to accommodate growth in renewables and another record for coal at the same time.

Coal Is Increasingly an Asian Fuel

The most striking feature of the coal market is its geographic concentration.

Asia Pacific consumed 138.1 exajoules of coal in 2025, accounting for 83.2% of the global total. China alone consumed 92.2 exajoules, or 55.6% of all the coal used in the world.

India contributed another 23.1 exajoules, representing 13.9% of global consumption. Together, China and India accounted for almost 70% of the world’s coal use. Add Indonesia, and the three countries consumed nearly 73% of the total.

This is why broad statements about a global coal phaseout can be misleading. Coal may be steadily retreating in Europe and North America, but its future is increasingly being determined in Asia.

Non-OECD countries accounted for 85.2% of global coal consumption in 2025. Their coal use has grown at an average annual rate of 1.9% over the past decade. OECD consumption, by contrast, has declined at an annual rate of 4.8%.

Europe consumed just 4.4% of the world’s coal last year. The European Union’s share was only 2.8%, following another 3.2% decline in consumption.

The global total therefore combines two very different stories. One is a long-term retreat from coal across much of the developed world. The other is coal’s continued importance to the large and growing economies of Asia.

One surprise in the 2025 data is that coal-fired electricity generation declined even as total coal consumption increased.

China generated 5,756 terawatt-hours of electricity from coal, down 1.1% from 2024. India’s coal generation fell 3.0% to 1,464 terawatt-hours. Since those two countries produce nearly 69% of the world’s coal-fired electricity, relatively small percentage declines can have a large effect on the global total.

Coal generation across Asia Pacific declined 1.2%, while Europe posted another 3.4% decrease. The European Union’s coal generation fell 3.6% and accounted for only 2.6% of the global total.

The divergence between consumption and power generation indicates that coal demand outside the electric power sector helped support the record. Coal consumption statistics include industrial uses that are not captured by electricity-generation totals. Changes in plant efficiency, coal quality, inventories, and measurement can also prevent the two series from moving in perfect alignment.

Whatever the precise combination, the result is notable. The world consumed a record amount of coal while producing less electricity from it.

The United States broke sharply with the broader developed-world trend in 2025.

U.S. coal consumption rose 10.4% to 8.7 exajoules. Coal-fired electricity generation jumped 13.1% to 804 terawatt-hours, while domestic coal production increased 4.4%.

In absolute terms, the increase in U.S. coal consumption was larger than the net increase for the entire world. U.S. consumption rose by about 0.8 exajoules, while the global total increased by roughly 0.7 exajoules. Declines in several other countries offset part of the American increase.

Still, this should not be mistaken for a return to coal’s former dominance in the United States.

U.S. coal consumption remains about 62% below its 2005 peak. Coal-fired generation is approximately 63% below its 2007 high, and production is about 54% below its 1998 peak.

The 2025 increase was substantial, but it occurred within a long-term structural decline. The United States still accounted for just 5.3% of global coal consumption and 7.7% of global coal-fired generation.

Global coal production remained near record levels at 180.8 exajoules, but it was essentially flat in 2025.

China increased production by 1.7% and supplied 52.4% of the world total. Its coal consumption was nearly unchanged, but its imports fell 10.1%. The combination suggests that increased domestic production displaced a meaningful amount of imported coal.

That shift helped push global coal trade down 3.1% to 35.3 exajoules. Indonesia, the world’s largest exporter, saw exports fall 7.4%. U.S. exports declined 11.5%, while Colombian exports plunged 21.3%.

Thus, record global consumption did not translate into record international trade. Much of the world’s coal is produced and consumed within the same countries, especially China and India.

The 2025 data support neither the claim that coal is disappearing nor the claim that the energy transition has stopped.

Coal use reached a record, but its share of global energy declined. Coal-fired electricity generation fell, but industrial and other uses kept total consumption elevated. Coal rebounded sharply in the United States but remained far below its historical peak. Europe continued to move away from coal, while Asia accounted for more than four-fifths of global demand.

The coal market is no longer one unified global story. It is a widening divide between countries that are steadily reducing their dependence on coal and countries where it remains central to electricity, industry, and economic development.

That divide is likely to continue defining the coal market for many years.

By Robert Rapier

Oil & Energy

FG To Stop Electricity Subsidy Payments From 2027

Published

14 hours ago

August 3, 2026

The Tide

The Federal Government has announced plans to end electricity subsidy payments from 2027 as part of efforts to tackle mounting liabilities in the power sector.

Minister of Power, Joseph Tegbe, disclosed this at a media interactive session , in Abuja, at the weekend.

Tegbe said the Federal Government would phase out subsidies beginning from 2027, assuring Nigerians the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime.

According to him, the proposed removal forms part of broader reforms aimed at ensuring the long-term sustainability of the electricity sector while tackling the financial challenges confronting the industry.

Tegbe explained that despite the planned subsidy withdrawal, there are no immediate plans to increase electricity tariffs, reassuring consumers that the government is not considering a tariff hike in the short term.

“The phase-out of electricity subsidies will begin from 2027. However, there are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers.

“The Power Consumer Assistance Fund will play a critical role in cushioning the impact on vulnerable consumers as we implement these reforms,” the minister stated.

He pointed out that implementation timeline and consumer protection measures would be unveiled as the reform process progresses, emphasizing that Nigeria’s electricity subsidy has remained a major fiscal burden.

Oil & Energy

Firm unveils New Products For Oil Facilities

Published

14 hours ago

August 3, 2026

The Tide

An oil servicing firm, Solewant Group, has unveiled protective coatings and paints to secure oil facilities.

The products, manufactured at its new plant, sited in Alode Eleme, Rivers State, comprise of paints and coating that aid durability of oil facilities.

The products included the Solguard Architectural Coatings range comprising emulsion, matt and silk paints; Solguard Industrial Protective Coatings, featuring red oxide metal primer and alkyd gloss enamel; Solguard Heavy-Duty Protective Systems, including zinc-rich epoxy primer, high-build epoxy coat and acrylic polyurethane; and the flagship Novaguard Premium Specialty Coatings, made up of 100 per cent solid epoxy, polyurethane and polyurea systems for heavy industrial applications.

Unveiling the paints, at the weekend, Minister of State for Petroleum Resources(Oil), Senator Heineken Lokpobiri, described the products as innovative and pledged the federal government’s support to indigenous companies.

Lokpobiri described Solewant’s products as milestone in Nigeria’s industrialisation drive and local content development.

“This is clear evidence of the growth, which shows that local service providers in Nigeria have developed over the past 15 years.

“I’m very happy today that I have the privilege to witness this plant that will not just service Nigeria, but will service the entire African continent”, the minister said.

Lokpobiri praised Solewant’s expansion into Namibia, saying it marked the beginning of broader opportunities for Nigerian companies across Africa’s energy sector.

“We are fully committed to supporting companies like Solewant Group. That is the only way we can grow this industry.

“The solution to Nigeria’s energy problem lies with Nigerians. Nobody will come from anywhere to solve our problems in Africa”, he said.

He noted that the company’s new manufacturing capability would help address one of Nigeria’s biggest oil production challenges by providing locally manufactured protective coating solutions for ageing pipelines.

“Our pipes are completely corroded, and we need solutions that Solewant is providing to address that problem. What you have done here is a Nigerian solution to the Nigerian problem”, he said.

Speaking at the occasion, Solewant Group Chief Executive Officer, Solomon Ewanehi, said the investment was driven by the vision of ending Nigeria’s dependence on imported industrial coatings while building globally competitive manufacturing capacity.

In his words, “today we are not just launching the Solewant Coating Manufacturing Plant. We are launching confidence; confidence that Nigeria has the competence, the capacity and the courage to manufacture not just what we consume but also what we can export to compete with international standards.”

Ewanehi explained that the company unveiled 11 enhanced coating products under the Solguard and Novaguard brands, developed and manufactured in Nigeria for the oil and gas, marine, infrastructure and industrial sectors.

“Sixteen years ago, we asked a simple question: Why should Nigeria, a leading oil and gas nation, continue to import the very coatings that protect our critical assets?

“Today, that vision has become steel, concrete, plant and people”, he stated.

According to him, the products were designed to deliver world-class corrosion protection for pipelines, offshore platforms, refineries, storage tanks, bridges, power plants and other critical infrastructure operating in harsh environments.

Also speaking, Secretary to the Government of the Federation, Senator George Akume, described the project as “a powerful statement of confidence in Nigeria” and applauded Solewant for expanding local manufacturing despite ongoing economic reforms.

Represented by the his Special Adviser on Technical Matters, Prof Bolaji Babatunde, Akume said “your decision to expand manufacturing capability, develop technology and create value within Nigeria is a commendable example of the kind of private sector leadership that the Federal Government seeks to encourage me”.

Rivers State Governor Siminalayi Fubara, represented by his Chief of Staff, Barr. Sunny Ewuhle, also commended the company for choosing Rivers State as its industrial base.

“We are calling on all local and foreign investors to emulate what Solewant Group has done in Rivers State,” he said, pledging the state’s support for manufacturing, local content development and industrial growth.

Namibia’s High Commissioner to Nigeria, H.E. Walde Natangwe Ndavishiya, described the investment as timely, saying Solewant was well positioned to support Namibia’s emerging oil and gas industry.

“I particularly commend Solewant Group for taking the bold step of establishing a branch office in Namibia. This demonstrates confidence in Namibia and its emerging opportunities,” he stated.

By: Kevin Nengia