Nigeria stone sector Iduwini celebrates

to create 1m jobs Shell sponsored

-World Bank FA
CTU
AL ENE
RG
Y projects

G
Page 48 Page 70

IN
SSEMINATIN

FOR
MATIO
DI

N
A Vanguard Monthly Review Of The Energy Industry
VOL 02 N0. 13 MAY, 2010

Shell suspends Nigeria

production at Angola
1.8
EA field
Saudi TOP 2009 OPEC
T h e S h e l l Pe t r o l e u m
Development Company
(SPDC) Joint Venture has
Arabia
8.22
1.82

announced that its operated EA Venezuela OIL PRODUCERS

field offshore Western Niger
Delta has been temporarily shut 2.2 (MILLION BPD)
down as a precaution to enable
repairs to equipment which
connects the Floating,
Production, Storage and
Offloading (FPSO) facility, Sea
Eagle with the mooring 2.3 UAE
platform.
The equipment in question
was scheduled to be overhauled
in May this year, but bad
weather - including a storm on 2.3
26 March - has forced the
schedule to be brought forward. Kuwait
4.3
Other
Countries 2.37

3.79 Iraqi
SOURCE: EIA
Iran
An Oil Rig

UPDATES

Nigeria's
YEARLY BASKET PRICE
2010 76.37
2009 61.06
2008 94.45
2007 69.08
2006 61.08
2005 50.64
2004 36.05
2003 36.05

oil industry tendering process

2002 24.36
2001 23.12
2000 27.60
1999 17.48
1998 12.28

goes online
Daily | Weekly | Monthly | Yearly

Senate commits to passage of PIB

FG moves to allay concerns 3
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 W hen Sweet crude grac
May 2009, our desir
voice and watchdog
ed the news stands in
e was to become the
2 industry. One year do
of the Nigerian en
wn the road, I dare s
ergy
h a v e ac co m p l ish ed ay we
t h i s o b j e ct i v e. B es
countless commend i d es
ations for our eff
providing in-depth, orts at
factual and easily v
industry reports, perha erifiable
ps, the NNPC's nomi
of Sweet crude as th nation
e official publication
Ni ge r ia n de le ga tio of the
n to t he 20 10 Of

Contents
Technology Conferen f sh or e
ce (OTC) taking pl
Houston, Texas, USA ace in
underscores our pre-e
position in more eloqu minent
ent terms.
In this edition, our
cover story focuses
Nigeria's oil and ga on
s projects tendering
which has gone onli process
ne, consigning to his
pr e v io us po or r tory its
e c or d of tra ns pa
accountability and le re nc y ,

4 COVER wide acceptance of

exchange) portends a
ngthy contracting cyc
NipeX (Nigeria's pe
le. The
troleum
Nigeria's Oil Industry tendering process goes oniline for expanded partic
revolution of sorts an
dh
ipation in the growt ope
development of the sec h and
tor.
OIL We have also dug

6 New quality Oil blocks for NNPC underway

international oil comp
fiscal regime containe
Bill (PIB) before the
into the concerns
anies (IOCs) surroundi
d in the Petroleum Ind he
national assembly. Sw
ng t
ustry
of

crude spoke with Sen eet

ator Lee Maeba, the ch
of the joint committ airman
ee of the national as

12 FOCUS working on the bill an

well as assurances.
d he provided deep ins
sembly
ights as
Nigeria Senate promises investors equitable fiscal terms As usual, we have ke
pt faith with coverage
of all
other spectrum of
the Nigerian energy
insurance, labour, pow chain:

14
er, finance, solid min
FEEDBACK ga s, f r e i gh t a n d
providing reportage
industry on an unparall
co mm u nit y d e ve lop ls,
of the Nigerian e
era
ment
nergy
eled scale.
May we seize this o
pportunity to urge fo

16 INSURANCE firms to seize the p

crude to take advantag
latform provided by
e of the huge opportun
reign
Sweet
Subscription Markets chop off 90% Oil and in the Nigerian mark
et through advertiseme ies
it
their goods and service nt of
Gas Insurance placement s.

21 OilLABOUR
workers present position paper on contract staffing

36 POWER
No quick fix for power sector -FG

40 FINANCE
NETCO moves to operate offshore Nigeria

49 SOLID MINERAL
Challenges before Sada, Nigeria's 15th Mines & Steel Minister

50 GAS
Power: NNPC set to boost gas supply

58 FREIGHT
Unified global maritime law underway -Hassan Bello

62 COMMUNITY DEVELOPMENT
Government should make Mega floating station work
-Ex milliant
Sweet Crude is a publication of Vanguard Media Limited

THE TEAM
EDITOR
Hector IGBIKIOWUBO
heckie4real@yahoo.com

CORRESPONDENTS
Victor AHIUMA-YOUNG
Ifeanyi UGWUADU
Godwin ORITSE
Yemie ADEOYE
Jimitota ONOYUME
Samuel OYANDOGHA
Oscarline Onwuemenyi
GROUP BUSINESS EDITOR
Omoh GABRIEL
Editor South-South
Emma AMAIZE
PAGE LAYOUT/DESIGN
Francis AYO, Johnbull OMOREGBEE, Enquiries Call:
Babajide BABATUNDE & Remi OGUNTEGBE
08051100256
Printed and Published by
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Apapa. All correspondence: P.M.B 1007, Apapa, Lagos.
SweetCrude 3
 Cover Story 4

Changes in oil & gas bid

ANNUAL OFFSHORE RIG SPENDING IN NIGERIA tendering system:
In an analysis gleaned from
Rigzone.com, it was gathered that
changes to the oil and gas industry
$2,000
Jackups bids tendering processes actually
changed on the 1st January 2010
when the pre-qualification stage
$1,800 Floaters $1,735MM was modified to require pre-
registration in a re-worked online
$1,637MM
system for all suppliers prior to
$1,600 $1,541MM bid submission.
The online tendering site is
expected to simplify supplier
$1,400 selection, as well as the contract
approval process and the
$1,248MM $1,228MM procurement process between
$1,200 multinational oil and gas
exploration and production
companies and the Nigerian
National Petroleum Corporation
$1,000 (NNPC).
It would be recalled that the
$800 changes in the oil and gas bid
tendering processes was initiated
by the NNPC which created an
$600MM online electronic center in 2005 to
$600 $557MM $563MM stream-line the contracting
$187MM $478MM process in Nigeria.
The electronic centre
$400 metamorphosed into the Nigerian
Petroleum Exchange (NipeX), a
virtual community that links
$200 buyers and suppliers. The NipeX
has increasingly played a role in
the tender process and has
$0 become a hub of tendering in the
oil and gas industry.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Last year, the NNPC issued a
directive urging industry to take
note that from the beginning of
2010, all tenders within the
National Petroleum Investment
and Management Services
(NAPIMS) must be processed

Nigeria's
through the NipeX portal.
Since then, all manual
submissions of contracting
documents for approval have not
been entertained leaving very
little room for under hand
dealings.
At the moment, all contracting
documents go through the NipeX
portal, an indication that all
suppliers of goods and services in
the Nigerian oil and gas industry

oil industry tendering process

must register to be eligible to
participate in new opportunities.
Checks revealed that the
introduction of NipeX has
updated the pre-qualification
stage of the three-step tendering

goes online
process with the online
Senate commits to passage of PIB registration, application, and
processing system; leaving the
rest of the bidding process intact.
FG moves to allay concerns Only registered and pre-
qualified companies can submit
rigs or services for a job after
paying a registration fee of $200,
and a filling out a brief
Hector IGBIKIOWUBO online, leaving behind an an equitable fiscal regime in the companies, Sweet crude gathered application.
analogue era noted for poor oil and gas sector to allay concerns that Dr. Goodluck Jonathan, the

I
N perhaps what may pass
as a revolution of sorts the
conventional bid tendering
processes for jobs within
the Nigerian oil and gas
industry has formally gone
transparency, accountability and
a lengthy contracting cycle.
The Nigerian Senate has also
committed to timely passage of
the Petroleum Industry Bill
(PIB), while noting the need for
earlier raised by international oil
and gas exploration and
production companies in the
country.
To further allay concerns raised
by the international oil
Acting President has issued a
directive urging Dr. Emmanuel
Ebogah, Presidential Adviser on
Energy to take a second look at the
PIB.
There is also a Joint
Qualification System (JQS) in
place which identifies pre-
qualified suppliers in NipeX
CONTINUES ON PAGE 5
 Cover Story
CONTINUED FROM PAGE 4
based on certain criteria.
To qualify:
To qualify, the NipeX Joint
Qualification System (NJQS)
team must first audit the
company, in part to ensure
Nigerian content. A
prequalification audit conducted
by NAPIMS and Achilles
(NipeX) includes a mandatory
visit to the supplier's site or
facility.
If the audit is successful, the
company is qualified for up to two
years. Suppliers cannot register
and become qualified after the
tender starts, thus it is important
to register early to avoid missing
out on future requirements.
Benefits of the Process
Change
Qualified buyers are given a User
ID to access the NipeX portal to
process a tender. User IDs are
unique to a specific NAPIMS
department and unit. They also
determine the NAPIMS approval
flow of documents.
Buyers also benefit from a more
effective tendering process with
lower administrative costs, better
collaboration between buyers and
suppliers, faster decisions and
approvals from NAPIMS,
competitive pricing, and
improved compliance.
Much like the previous tender
process, buyers are still required
to publish newspaper
advertisement which directs all
interested suppliers to the NipeX
portal where they are be
encouraged to register with
NJQS.
Once in the system, buyers and
contractors are at liberty to create
a shopping cart, submit ITT and
evaluation criteria documents for
NAPIMS' approval, publicize
approved ITT documents to
qualified bidders, and open and
evaluate bidder's tender
submissions.
Through NipeX, suppliers can
also see lower processing costs
and have access to more
opportunities.
Similarly, the NNPC can also
see a lower processing cost, be
able to accelerate first oil,
facilitate the Nigerian content
program, and benefit from an
efficient purchasing process and
increased transparency.
It is understood that the new
NipeX tendering system has not
been widely recognized by oil
service contractors.
Service contractors:
Sweet crude gathered that all
multinational oil and gas
companies have forwarded a list
of their incumbent suppliers and
technically qualified bidders to
NipeX, but th exchange has
granted automatic waivers into
NJQS to about 50% of these
suppliers.
Although many incumbents
with contracts in the region have
been granted waivers, registration
in the system is required to
participate in tenders. These
companies must complete an
application and pay the
registration fee. It is understood
that some incumbent companies
have yet to apply for
qualification, which if not
completed would preclude them
from participation in upcoming
tenders.
Industry sources indicate that
only a handful of international
drilling contractors are currently
registered. The oil service and
drilling bidding landscape may
potentially be slightly less
competitive in the short term until
everyone registers.
New entrants will still have to
establish a local presence before
registering and pre-qualifying to
bid. Nigerian establishment is
required to qualify, and there are
several ways to achieve this
mandate. Noble and Transocean
have established themselves in
Nigeria through the creation of
local subsidiaries. Noble has even
put the ownership of one of their
rigs against a local subsidiary.
Another approach is to partner
with a local company. Checks
revealed that Seadrill has an
agreement in place with Petrolog,
a Nigerian company. Petrolog is
Seadrill's official representative
in Nigeria, and all Nigerian
contracts are assigned to Petrolog.
In exchange for this service,
Petrolog takes a percentage of the
day-rate generated by Seadrill's
Nigerian rig contracts.
Meanwhile, service companies
qualified under the first batch of
audits nearly two years ago were
granted automatic waivers even
though their certificates are due to
expire. Those certificates are
considered valid until the next
round of NJQS audits begin. At
that time, they must seek re-
qualification. Suppliers who do
not meet the requirements for a
specific service can reschedule a
new date for a follow-up audit to
be conducted.
Drilling Activities:
Drilling contractors with a
presence in Nigeria include
Transocean, Noble, Seadrill,
Stena, Seawolf, and Frontier
Drilling. Currently, 10 jack-ups,
three deepwater semi-
submersibles, and three drill-
ships are in Nigeria, and all but
one jack-up are contracted. Pride
and ENSCO have worked jack-
ups in Nigeria in the past, but
neither of these US contractors
has had a rig deployed there in
several years.
Nigerian offshore rig spending
totaled nearly $1.7 billion in 2009
and more than $6 billion over the
past four years. With offshore rig
day-rates rising in most global
offshore rig markets from 2004-
2008, spending in Nigeria has
been on the rise. Like many other
Buyers also
benefit from a
more effective
tendering process
with lower
administrative
costs, better
collaboration
between buyers
and suppliers,
faster decisions
and approvals
from NAPIMS,
competitive
pricing, and
improved
compliance.
markets around the globe, the
Nigerian rig market was adversely
impacted by the global downturn
in 2009. However, over $1.2
billion in offshore rig spending is
already booked for 2010,
reflecting a 25 per cent decline
from 2009 levels if no additional
contracts are signed this year.
With the cost of offshore drilling
rigs understood to constitute
about half the cost of a typical
Nigerian drilling program, these
figures help provide perspective
on the opportunity Nigeria offers
both oil service companies and
drillers alike. If the 2x rig cost rule
of thumb holds, Nigerian drilling
programs alone present a 2010
revenue opportunity of over $2.5
billion for oil service and drilling
companies.
Even though Nigeria has been a
volatile region characterized by
unrest in recent years, the country
is still one of the largest oil
producers in the world. The
Nigerian economy is closely tied
to the oil sector, and the country's
oil industry officials have
encouraged local content
inclusion. In 2009, Nigeria was
the 8th largest OPEC oil producer,
averaging approximately 1.8
MMb/d during the year.
Much of the oil and gas activity
in the country is centered on the
Niger Delta area where security
has been a problem for the oil
industry in recent years. General
unrest in the country has resulted
in its oil output declining almost
35% from peak levels in the
2004/2005 timeframe. At the
moment, an amnesty programme
put in place by the government
appears to have taken care of
security concerns.
Although Nigeria has faced its
share of challenges, some 36
billion barrels of proven oil
reserves in the country are
attractive to international oil
companies (IOCs), and there is a
robust local market for contract
drilling and oil services. Some
key exploration and development
players working on projects in
Nigeria include Shell,
ExxonMobil, Chevron,
ConocoPhillips, Total, ENI/Agip,
and Addax Petroleum.
Notable early- to mid-stage
offshore field developments in
Nigeria include the Greater Ebok-
Okwok Complex, Akepo, and
Egina. High profile producing
projects include Agbami, Usan,
and Erha.
Nigerian National Petroleum
Corp. (NNPC) was created to
provide oversight and regulation
for the Nigerian oil industry in
1977. The lion's share of the
projects in the region are
structured as joint venture
arrangements with NNPC taking
a majority stake, and IOCs acting
as operators with a minority stake.
Senate commits to passage
of PIB
The Nigerian Senate has also
assured it is putting finishing
touches to the Petroleum Industry
Bill (PIB), adding that the
legislative process was affected
by deliberations on the 2010
appropriation bill. Senator Lee
Maeba, the Chairman of the
Senate Petroleum Committee
(Upstream) made the disclosure
while speaking in an exclusive
interview with Sweet crude.
“We are coming out with an
equitable regime that will ensure
adequate government take and
adequate incentives for foreign
firms.
We are very much aware of the
growing competition in the Gulf
of Guinea; Angola has opened its
doors, Guinea has opened its
doors, we are very much aware of
this and would not want to come
up with a tax regime that would
drive investors from the country,”
the Senator assured.
Senator Maeba also assured that
the PIB would address concerns
surrounding tenure of the group
managing director of the NNPC
to ensure the operations of the
corporation is not unduly
impacted by politicking.
FG moves to allay
concerns
Sweet crude also gathered that
following representations from
the multinational oil and gas
exploration and production
companies to the Acting president
on their reservations over
provisions contained in the PIB,
he issued a directive to the
Presidential adviser on Energy
urging him to address their
concerns.
At the time of filing this report,
Sweet crude could not ascertain
how far Dr. Ebogah has gone with
his task, but the expectations are
that the multinational oil and gas
exploration and production
companies may have their way.
5
Total and
Partex eye
Oman prizes
F rance's Total and Portugal's
Partex both plan to bid for
oil and gas exploration blocks
that Oman plans to auction,
executives from the companies
said.
Oman plans to offer 11 oil and
gas blocks for bidding by the
end of this year. The country is
relying on the expertise and
investment provided by foreign
energy players to help boost
output.
" To t a l i s p a r t i c u l a r l y
interested in the offshore
exploration block, one of the 11
concessions planned this year by
the government," Bertrand
Huillard, group representative
for Total in Oman, said on the
sidelines of an industry event in
Oman, according to a Reuters
report.
Bonga
celebrates
safety record
N igeria's first deepwater
discovery Bonga, has
operated continuously for four
years between April 2006 and
April 2010 without a single
safety incident resulting in lost
time injury (LTI). The milestone
was celebrated on April 9, 2010
onboard the huge Floating,
Production, Storage and
Offloading (FPSO) vessel
named after the field.
The Shell Nigeria Exploration
and Production Company
(SNEPCo) commenced
production in the field since
November 2005, increasing
Nigeria's oil production
capacity by 10 per cent.
The safety achievement was
made possible by strict
adherence to safety regulations
by staff and contractors.
SNEPCo Managing Director
Chike Onyejekwe, who joined
the celebrations on board the
FPSO, presented the LTI-free
award plaque to the team. He
said: “This is an excellent
achievement, and I am here
today to congratulate everyone
on a job well done and urge you
not to relent in your efforts, as
the biggest task is to sustain this
feat - a challenge I am confident
you will meet.”
The Bonga field is 120
Kilometres offshore Nigeria and
lies in water depths of 1000
metres across an area of 60
square km.

SOUTH ATLANTIC OCEAN
EXPLORATION: New, quality'
oil blocks for NNPC
underway
Oscarline ONWUEMENYI
T he Acting President,
Dr. Goodluck
Jonathan, has promised to
award “new quality oil
blocks” the Nigerian
Petroleum Development
Oil Company, the upstream
arm of the Nigerian
National Petroleum
Corporation (NNPC), in a
bid to foster exploration
efforts of the national oil
company in the upstream
sector.
This was disclosed by the
Group Managing Director
of NNPC, Dr. Mohammed
Barkindo, during the kick-
off of the NNPC
Transformation Town-hall
meeting at the Kaduna
Refinery and Petrochemical
Company (KRPC), in
Kaduna.
He noted that the on-going
NNPC Transformation
includes the consolidation
NIGERIA
of the Corporation's trading
outfits and capacity
building for direct
marketing by NNPC of the
Federation's cargoes.
Barkindo explained that
the Federal Government
created NPDC in 1988 and
awarded it premium oil
blocks with the intention
making the parent
company-NNPC a major oil
producer as distinct from
being just a passive
majority joint shareholder
in the Nigerian oil industry
while the international oil
companies operated the
ventures.
The oil blocks would
include some of the old
blocks formerly awarded to
NPDC and later taken away
and some new ones, would
position NPDC to perform
creditable and transform
into major oil producer in
the new regime to be
ushered in by the PIB.
Oil
He regretted that the
blocks were gradually taken
away by successive
administrations and
rewarded to private persons
and companies.
According to him, getting
new quality oil blocks was
the only way to make NPDC
compete the international
oil companies and other
international national oil
companies.
He said, “We are in
discussion with
government. We have
discovered unencumbered
assets, which we are
discussing with government
and we are confident that the
Acting President will
accede to our demand before
the passage of PIB.”
Barkindo who noted that
NPDC's production in 2009
increased to 60,000 barrels
per day from more dismal
performances in previous
years.
6
igerian
CONTENT INITIATIVE
Nigerian Content policy and
a new government
T he past governments of Nigeria have been accused of colluding
with oil majors and their home countries to ensure that crude
export is not hindered and as such in-country investments not
mandated. The short-term objective with long-term repercussions of
restiveness of youths, militancy and environmental degradation has
turned full circle to haunt major stakeholders in Nigeria's Oil and Gas
industry. Past governments can be blamed for being too slow to
implement reforms aimed at the development of the Niger Delta area.
However, with Nigeria's Acting President, Goodluck Jonathan and
Minister of Petroleum, Diezani Allison-Madueke being indigenes of
Bayelsa State (Oloibiri's location), Nigeria appears to have entered a
golden era of reforms and positive changes for the Niger Delta, the
provider of its primary natural resource.
Nigeria is now producing 1.8 million to 1.85 million barrels of crude
and another 600,000 barrels of condensate and is recognised as the 10th
largest producer in the world. Nigeria is grossly underperforming in its
downstream activities, having only four poorly managed refineries
with a theoretical capacity of 438,750 barrels per day. Also, corruption
and poor facilities management practice has resulted in the refineries
being comatose consistently and as such Nigeria is now dependent on
petroleum product imports and suffers fuel scarcity periodically.
Why is Nigeria exporting crude and importing finished products?
Why are the refineries comatose? Who are those behind the crude
lifting and products importation contracts? How can we make it very
attractive for Nigerians who have funds stashed away in foreign banks,
to repatriate and invest the funds in the development of a better
Nigeria? How can businessmen and companies be encouraged to
invest monies from past gains into the building of institutions,
organisations, systems, process, infrastructure and human capital so
that they focus on translating natural recourses into finished products?
Whilst the PIB is the most comprehensive re-write of the laws
governing the exploration, production and operations in the Nigerian
Oil and Gas industry and is strategic for increased value addition, both
bills (Nigerian Content bill inclusive) must be implemented in a
manner that makes investment in Nigeria very attractive.
Implementation programmes must encourage investment in refineries,
petrochemical, gas utilisation and fertiliser plants. These facilities
should be located closer to the source to minimise the cost of pipelines
and risk of sabotage.
A nationalistic overview of value addition would address an
improvement of the lot of the common man through Infrastructural
development, investment in human capital, uninterrupted power
supply and the delivery of free primary healthcare. Investment in Small
to Medium Enterprise (SME) programmes that optimise finished
petroleum products must integrated in Nigeria's immediate plans. Also,
Nigeria's domestic gas development policy could be designed not only
to tie in with Power generation, but to also stimulate the domestic
economy, through the production of Methanol, Fertilizers, LPG, CNG,
NGLs, all of which would create more jobs and reduce unemployment.
The establishment of functional arms of Nigerian Content
Departments within the IOC's and various oil and gas stakeholder
Parastatals should be viewed as an incomplete measure and not holistic
enough to fulfil the Federal Governments intent to influence increased
participation of locals and domiciliation of projects in Nigeria. The
holistic plan goes beyond the oil and gas industry, but primarily should
involve a national reorientation programme that encompasses all tiers
of governance and sectors of the Nigerian economy. A nationalistic
people and committed government would surely endear foreign
players into thinking and planning for a better Nigeria and embarking
on activities and projects that look beyond the short-term.
Directives and short-term interventions can not suffice if Nigerians
are not encouraged to think Nigeria. The alignment of our thoughts and
business models to address value addition as well as making the
business case for in-country investment based on sound Government
policies that are backed by legislation is fundamental for Nigerian
Content to succeed. To rid Nigerians of the get rich quick and isolated
profit oriented syndrome, a holistic plan to stimulate multi-sectoral
growth based on rolling plans must be pronounced at the highest level
of governance. National Content must be driven in consonance with the
Vision 2020 plan of the Federal Government if any significant progress
is to be achieved in the medium to long term.

NNPC transformation:
Cost, not staff rationalisation
Oscarline ONWUEMENYI
F
ears that the ongoing
Transformation of the
Nigerian National
P e t r o l e u m
Corporation, NNPC
may lead to massive job cut in the
Corporation was dispelled on
Wednes day as the G roup
M a n a g i n g D i r e c t o r , D r.
Mohammed Sanusi Barkindo
stated without mincing words that
the reform would create more job
opportunities for Nigerians.
Dr. Barkindo made this
disclosure during the launch of
the NNPC transformation zonal
town hall meeting while briefing
newsmen after an intensive
facility tour of the Kaduna
Refinery and Petrochemical
Company limited.
He noted that on the contrary,
the reform of the national oil
company, which is an expansion
programme of some sort, would
lead to the engagement of more
hands revealing that even some
retired staff have been contracted
to sustain the operations of the
Corporation.
Oil
According to him, “The
transformation of the NNPC is
cost rationalisation and not staff
rationalization, it is about
expanding the scope of the
The transformation Corporation, it is about efficiency
and I can report to you that NNPC
of the NNPC is cost
needs more staff for the effective
rationalisation and implementation of the reform
programme and we have resorted
not staff to recalling some of our retired
colleagues on contract.”
rationalization, it is Meanwhile, Barkindo has
about expanding the disclosed that plans are underway
to step up the operational capacity
scope of the
of the KPRC, which currently is
Corporation, it is operating at 60% to 90% as soon
as crude supply to the plant is up.
about efficiency and According to the NNPC
helmsman, KPRC has been
I can report to you receiving crude from crude
that NNPC needs suppliers in Warri and Escravos
which is insufficient hence the
more staff for the
present 60% operational capacity.
effective He was however quick to add that
the Corporation together with
implementation of KPRC are working round the
clock to increase crude supply in
the reform order to up the operational
programme capacity of the plant to 90%.
He disclosed that several
companies have indicated interest
in investing in the Corporation
NNPC Headquarters Abuja
saying that most of the investors
are waiting for the conducive
environment which is hinged on
the passage of the Petroleum
Industry bill and the Federal
Government proposed
deregulation of the downstream
sector of the petroleum industry.
Dr. Barkindo opined that the
present status quo where the
Corporation operate as a cost
centre and an appendage of
government with management
spending several hours off core
business was not sustainable and
called for the commercialisation
of the operations of the
Corporation and all its Strategic
Business Units as the panacea to
its financial down turn.
The Group Managing Director
alluded to the fact that the
domestic and international oil
markets have endorsed the
transformation agenda of the
NNPC considering the strategic
contributions of the national oil
company to the oil market.
In his welcome address, the
Managing Director of the KPRC,
Engineer Bolanle Ayodele
assured the NNPC management
of the readiness of KPRC and
other SBUs to key into the
transformation initiatives of the
Corporation as it moves towards
an international oil company.
“We are ready for the challenges
associated with finding our way
into the league of successful state
owned refineries. Nothing but a
complete turnaround from a cost
centre to a profit centre will be
good enough for us, Engineer
Ayodele declared.”
7
Cameroon to
open coastal
areas for oil
exploration
C ameroon will soon begin
licensing companies to
explore for oil in the Atlantic
coastal Bakassi peninsula and
nearby Mamfe basin, a senior
official in Cameroon's state-run
National Hydrocarbons Corp.,
or SNH, has said.
"Results obtained from the
Mamfe basin have since 2009
attracted the interests of oil
companies, which want to
invest in the area," said Serge
Angoua, who heads the
department for the promotion of
mining at SNH's oil exploration
directorate.
He said SNH wants to
"showcase" potential crude oil
discoveries in the East Bakassi,
West Bakassi and the Mamfe
basin during the first half of
2010 to enable interested
bidders to officially show their
interest, Angoua told the the
quarterly SNH News published
Thursday.
The West African nation's
crude oil production in 2009
stood at 22.37 million barrels,
down from 25.95 million
barrels produced in 2008,
according to SNH data.
Hyperdynamics
details PSC
amendment
with Guinea
H y p e r d y n a m i c s
Corporation provided
further details of the amendment
to its Production Sharing
Contract (PSC) with the
Republic of Guinea. The
amendment was signed late last
week in the capital, Conakry,
and Hyperdynamics has been
informed that the implementing
Presidential Decree is in the
process of issuance.
The amendment was intended
to bring the PSC into line with
international standards and the
amendment included the
following terms, in addition to
the terms discussed in the news
release issued by
Hyperdynamics on March 25,
2010:
Removing the right of first
refusal covering relinquished
acreage;
Clarifying that only those
expenditures which were made
following the date the PSC was
signed (September 22, 2006)
would be eligible for cost
recovery; and
Should the Government note
material differences between
provisions of the amendment
and international standards or
the Petroleum Code,
Hyperdynamics.
SweetCrude 8
Nigeria
Ectractive
Industries
Transparency
Initiative
SOUTH EAST ROAD SHOW
Yenagoa, Bayelsa State

Cross section of
participants, stakeholders,
and Community/opinion
leaders at the NEITI
Road show/Town
Hall meeting for the South-
South Geo-Political Zone
in

YENAGOA,
BAYELSA STATE.
5th-6th Oct. 2009
SweetCrude 9
Nigeria
Ectractive
Industries
Transparency
Initiative
SOUTH EAST ROAD SHOW
Owerri IMO State

Cross section of
participants, stakeholders,
and Community/opinion
leaders at the NEITI
Road show/Town
Hall meeting for the South-
East Geo-Political Zone
in

OWERRI, IMO STATE.

3rd Nov. 2009


New NNPC boss commits to continue
with transformation
C
ONTRARY to the
norm where new
appointees discard
initiatives they met
on ground, the new
Group Managing Director of the
Nigerian National Petroleum
Corporation, NNPC, Mallam
Shehu Ladan, has pledged to
continue with the ongoing
transformation programme of the
Corporation which is in line with
the aspirations of the Acting
President Dr. Goodluck Ebele
Jonathan, for the oil and gas
industry in Nigeria.
Ladan made this promise
during his maiden meeting with
staff at the NNPC Towers in
Abuja where he unfolded his
agenda for the Corporation and
the entire oil and gas industry.
The new helmsman who said he
was part of the management team
that introduced the
transformation agenda last year
until he retired on 6th April, 2009,
stated: “I still believe in the
transformation. It is the only way
to go if the Corporation is to
survive. I will continue from
where Barkindo has left off in the
transformation project.”
“There may be shift in emphasis
or in the way it will be delivered,
but the objective of transforming
the Corporation will remain the
same. What is important is for us
to keep our eyes on the ball,”
Ladan told staff of the
Corporation.
He also dispelled rumours of
imminent sack of top
m a n a g e m e n t s t a ff o f t h e
Corporation as reported in some
Beaufort green light for Shell
A nglo-Dutch supermajor
Shell has been granted a
long-awaited federal air-
quality permit the company needs
to conduct exploratory drilling
this year in Alaska's Beaufort Sea,
government officials said.
As earlier reported by
Upstream, the US Environmental
Protection Agency (EPA) issued
the permit to Shell to cover air
pollutants emitted from the drill
ship and fleet of support vessels
that the company plans to use to
drill two exploratory wells on
leases 16 to 22 miles (26 to 35
Kilometres) off Alaska's northern
coast.
The Beaufort Sea permit -
which Shell has been seeking for
newspapers, adding that there
was no basis for such speculations
as he has neither made any such
recommendations to the Acting
President nor received any
instruction in that direction from
any quarters.
The GMD listed other key
agenda of his management to
include the maintenance of the
integrity of the Corporation's
pipelines across the country,
stabilization of product supply,
nearly four years - was granted a
week after the EPA issued a
similar permit for the company's
planned drilling operations this
year in the Chukchi Sea off
Alaska's north-western cost,
according to a Reuters report.
The permit requires Shell to use
technological advances, ultra-
low-sulfur diesel fuel and to
commit to other protective
measures, EPA officials said in a
statement.
"This permit ensures that
exploration and drilling will
occur in a way that protects air
quality," Rick Albright, director
of the air, waste and toxics issues
for EPA's Seattle regional office,
said in a statement.
Oil
the passage of the Petroleum
Industry Bill, PIB, and adequate
supply of gas to the nation's power
plants with a view to meeting the
administration's aspiration to
provide constant electricity to
Nigerians.
He said he would learn from the
experience and success of the 'War
Room' in tackling the fuel supply
and distribution challenge and
“adopt it for gas supply to ensure
that gas gets to all the power plants
The Beaufort permit is an
important milestone, a Shell
spokesman in Anchorage said,
noting the company had already
spent $84 million on its Beaufort
Sea leases to drill the Sivulliq and
Torpedo prospects.
"The issuance of our final
Beaufort Sea air permit means we
can continue to advance our
exploration program with the
ultimate goal of drilling in the
Chukchi and Beaufort Seas in
2010," Shell spokesman Curtis
Smith said.
The permit is subject to a public
review period and could be
appealed by critics.
Shell is seeking to use a single
drill ship and a fleet of icebreakers,
within the shortest possible time.”
Ladan who called for maximum
cooperation from staff and unions
said he would work closely with
the top management team made
up of the Group Executive
Directors and would not allow
any crack. He also promised to
work in harmony with the media
and urged them to treat NNPC as a
friend and always endeavour to
verify information before going
to press.
An Oil Facility
oil spill response ships and other
support vessels to explore the
Chukchi and Beaufort prospects.
Drilling is planned for the
northern summer and fall to avoid
sea ice is absent.
The company plans to drill up to
three wells about 75 miles
offshore in the Chukchi Sea,
where it spent $2.1 billion in 2008
to acquire leases, and two wells in
the Beaufort Sea.
Environmentalists and the
native Inupiat Eskimo people of
the region expressed concerns, as
the permit was being drafted by
the EPA, about carbon-dioxide
emissions into a region already
strongly affected by climate
change, and the potential impact
10
'Majors line
up for ONGC's
KG block'
S upermajors ExxonMobil
and BP have expressed
interest in farming in to Block
KG-DWN-98/2 owned and
operated by India's state player
Oil & Natural Gas Corporation
(ONGC).
The offshore block contains a
cluster of oil and gas
discoveries including G-4-6,
GS-29-1 and G-4-5.
These discoveries hold
estimated reserves of around 5
trillion cubic feet of gas and 150
million tonnes of oil, according
to a report on the Hindu
Business Line.
ONGC has set up a data room
for oil and gas companies in
Chennai to review the block on
receiving several requests.
BG and Eni are among those
keen in acquiring an interest in
the asset, the report said.
ONGC has returned to the
market to source for farm-in
partners after Norwegian Statoil
and Brazil's Petrobras
reportedly backed out of the
offshore block.
Statoil and Petrobras signed
farm-in agreements for 10%
and 15% stakes in the KG block
respectively in 2007, but a joint
operating agreement never
came into force.
The deal with Petrobras will
officially expire in July, the
Hindu Business Line reported
citing an unidentified ONGC
official.
Dominion gets
green light to
drill Uganda
wildcat
D ominion has received its
drilling permit for the
Ngaji-1 well on Exploration
Area Block 4B (EA4B),
Dominion's first exploration
well in Uganda and the first
ever to be drilled in the Lake
Edward basin. The permit was
issued by Uganda's
Department of Petroleum
Exploration and Production.
Dominion's team in Uganda
is implementing a
comprehensive program, as
outlined in the application and
environmental impact
assessment, to address all
social and environmental
matters associated with the
drilling of the well, expected to
commence in June.
Andrew Cochran, Chief
Executive of Dominion
Petroleum, commented, "We
are very pleased to have
received our formal drilling
permit from the Government
of Uganda in such a timely
fashion.

Angola to invest more
than $50bn in oil and gas
A
ngola expects its
oil production to
rise to 2.2 million
barrels a day by
next year, is
investing $50.6 billion in
upstream and downstream
projects between now and 2013.
Just over two thirds of the money
will come from foreign investors.
Anibal da Silva, deputy oil
minister, told a conference in
Cape Town on Thursday the
investments will include a new
refinery, an LNG project and a
distribution network for refined
product.
"It is anticipated that the new
refinery will come on production
by 2014 and initial processing
capacity will be 115,000 barrels
of oil per day, to be increased up to
200,000 barrels a day by 2015,"
the deputy minister said.
He told delegates at the Oil and
Gas Outlook Africa that the LNG
plant will be up and running by
the first quarter of 2012, and that it
will put out 5.2 million tons of
product a year.
Da Silva said the distribution
market for oil refined product will
be liberalized to allow the
entrance of new operators to
develop a distribution network
across the country, using an
Total's Uche Ojomo appointed
board member of ICOH
T h e M e d i c a l
Administration
M a n a g e r o f To t a l
Upstream Companies in
Nigeria Mrs. Uche Ojomo, has
been appointed into the Board
of the International
Commission on Occupational
Health, ICOH, for the
triennium 2009 2012. In a
letter notifying Mrs. Ojomo of
the appointment, the ICOH
President Prof. Kazutaka
KOGI, said that the
Oil
equalized maximum price model.
He said the country has "an
attitude of absolute respect for
legal and contractual stability to
guarantee investors a favorable
work environment and the
recovery of their investments."
appointment was in recognition
of Mrs OJOMO's unwavering
commitment to and support for
ICOH works / activities. By this
appointment, Mrs OJOMO
becomes the first Nigerian to
serve; and one of the very few
Africans to have ever served on
the ICOH Board in the
organization's 104 years of
existence.
Mrs OJOMO, an ICOH
Member since 1993, holds a
Master of Science degree in
Lombo East, Angola
New ultra-deepwater fields will
come on stream and new
exploration licenses are being
granted, he said, and more than 30
new oil discoveries are under
development and production
phases.
Business Administration
(Specialising in Management)
from the University of Lagos, a
Bachelor of Science degree in
Nursing Administration
(overall best graduating
student) from the University of
Ibadan. A State Registered
Nurse (England and Wales), she
also holds a Certificate in
French Language, Culture and
Gastronomy from the Reseau
Langues et Cultures, Le
Creusot - St. Desert, France.
11
Eni's
discoveries set
stage for block
15/06 oil hub
F ollowing Petrobras'
announcement in February,
Eni and Sonangol confirmed
two new oil discoveries in Block
15/06 with the exploration wells
Nzanza-1 and Cinguvu-1,
offshore Angola. Both wells are
located around 350km north-
west of Luanda in 1,400 meters
of water depth and successfully
reached the targets in the Lower
Miocene layers, where oil pay
sands with good reservoir
characteristics were
encountered. The two discovery
wells were drilled by the
Scarabeo 7 semisub.
The results of the two wells
are within the predicted
hydrocarbon volume ranges of
pre-drill expectations and the
positive outcomes will allow the
ongoing pre-development phase
of the "Western Hub" to
proceed.
During production tests,
Nzanza-1 well produced oil at
rates above 1,600 barrels/day.
An analysis of the results
indicates the potential for future
production wells in excess of
5,000 barrels/day per well,
when associated to artificial lift.
At Cinguvu-1 the production
test, limited by surface
facilities, reached a maximum
flow of 6,400 barrels/day of oil.
The Nzanza-1 and Cinguvu-1
results follow the recent success
of Cabaça Norte-1 in 2009, and
Sangos and N'Goma in 2008.
This result confirms the high
potential of Block 15/06, which
was awarded to Eni in 2006
following a very competitive
international bid process. The
effective exploration of the
operated block is due to the
deepwater expertise that Eni has
brought into the project using
proprietary technologies to
improve probability of success
and to optimize time and costs in
well operations.
Alongside its partners in
Block 15/06, Eni will continue
the exploration drilling during
2010 with the aim of securing
the resources that will support
the sanctioning of the second
production hub in the North East
area of the Block.
Eni has a 35% working
interest and is the Operator in
Block 15/06, while Sonangol
E&P is the Concessionaire. The
other partners of the Contractor
Group are Sonangol Pesquisa e
Produção (15%), SSI Fifteen
Limited (20%), Total (15%),
Falcon Oil Holding Angola SA
(5%), Petrobras International
Braspetro B.V. (5%) and Statoil
Angola Block 15/06 Award AS
(5%).
Eni has been present in
Angola since 1980. Eni's current
equity production reaches
approximately 130,000 barrels
of oil equivalent per day.
 F Focus 12

Nigerian Senate promises investors equitable

fiscal terms
S
ENATOR Lee Maeba is the Chairman of the Senate
Committee on Petroleum (Upstream). Those who know him
describe him as irrepressible, blunt and indefatigable. In this
interview with Hector Igbikiowubo, Editor, Sweet crude,
he speaks on the Petroleum Industry Bill (PIB), 10 per cent
for oil producing communities, the Nigerian Content Bill (NCB) and
describes the Dr. Rilwanu Lukman/Mohammed Sanusi Barkindo era as
the most fraudulent, unfocused and unprofessional he had experienced,
among other issues.

Excerpts: attractive, balancing the act of

The Petroleum Industry Bill
(PIB) has been caught up in the
legislative process for quite
sometime now, where are we
with that and how soon should
we expect it to be passed into
law?
The report process is almost at
conclusion and as soon as the joint
committee meets to look at the
consultants report and either it is
committed or more work is done
on it. Give or take, within the next
few weeks the report must be
ready for plenary.
Concerns have been expressed
a b o u t t h e f i s c a l re g i m e
contained in the PIB and this is
mostly by multinational oil
exploration and production
companies. Does your
committee plan to address these
concerns?
I am sure the multinationals
cannot complain because the PIB
was open to scrutiny by our joint
committee, all of them
contributed by what they feel is
correct and all the positions given
by them including the Nigerian
National Petroleum Corporation
(NNPC) as memoranda were well
looked into. I believe that they are
well aware that we cannot come
out with a fiscal regime that will
either bring about very high
taxation to divert investment from
the country or very low to deprive
the government of adequate take.
So, we are coming out with an
equitable regime that will ensure
adequate government take and
adequate incentives for foreign
firms. We are coming up with a
tax regime that to put it in lay
man's terms would not be too high
or too low, something in the
middle to accommodate all. That
is what we can say for now. We are
very much aware of the growing
competition in the Gulf of
Guinea; Angola has opened its
doors, Guinea has opened its
doors, we are very much aware of
this and would not want to come
up with a tax regime that would
drive investors from the country.
We are responsible law makers
committed to balancing the act of
ensuring that our tax policy is
making sure that government has
adequate take from our operations
and balancing that act to make
sure that there is peace in the
Niger Delta to ensure the security
of welfare of the oil producing
communities.
Talking about security of
welfare for the oil producing
communities, there is this
concern that the delay in the
passage of the PIB has
inadvertently affected the likely
benefits that may accrue to the
communities through
implementation of 10 per cent
equity ownership of oil
produced. Considering the
delay in passage of the PIB and
the need to ensure guaranteed
security in the delta, is there any
plan to have the 10 per cent
consideration presented as a
separate bill?
I don't think the people of the
Niger Delta would constitute
themselves into the story of the
tortoise there is this story of the
tortoise who was jailed for over 7
years and the king said we have to
bring out the tortoise. When the
king's messenger went to the
tortoise and told him of the king's
plans, the tortoise said look you
have to do it hurriedly and the
king's messenger said but you
have been here for 7 years and the
tortoise said that is not the issue,
the issue is that since there is a
rumour that I must be removed
from here, then it must be done
q u i c k l y. I h o p e t h e o i l
communities don't want to
constitute themselves into another
tortoise fable. The reality is that
we are working round the clock to
make this happen and mind you, it
is 10 per cent profit, nobody is
talking about 10 per cent equity.
This would be delivered along
with the PIB, everybody knows
the PIB is needed, it is part of the
reform of the administration, the
national assembly is part of the
administration and we are
pursuing the reform aggressively,
both houses of the national
assembly are working to try to get
it passed. I think the PIB is coming
soon, the 10 per cent would be
delivered to the communities and
the 10 per cent for the
communities, we have designed
it, we have gone far, and it is going
to be delivered to the
communities.
We are well aware of your
efforts to bring the Nigerian
Content Bill to this stage. What
are your expectations for the
industry as soon as the bill is
signed into law?
It is not my effort you know, the
bill is a Senator Lee Maeba
sponsored bill, it is a private bill
sponsored by Senator Lee Maeba,
so my wish for the indigenous oil
companies is for the industry to be
given back to Nigerians because it
is their wealth and it is coming in
big folds. Once the acting
president comes back, I am sure
the Nigerian Content Monitoring
Board will be established
immediately and in the next six
months I expect the bill to dictate
the pace for the operations of the
Nigerian oil and gas industry so
that international companies that
Once the acting president comes
back, I am sure the Nigerian Content
Monitoring Board will be established
immediately and in the next six
months I expect the bill to dictate the
pace for the operations of the
Nigerian oil and gas industry
want to do business in Nigeria can
come and form partnerships with
our companies down here. The
job that Nigerian companies now
have to do is well defined and the
job of the international companies
is well defined. The international
companies that want to do
business in Nigeria and where the
bill has spelt out is in signing
partnerships so that they get
involved. So my wish is that the
bill is signed and my wish for the
oil producing communities in the
Nigerian oil industry would have
been accomplished.
There were concerns before
now that the multinationals
have suffered delays in getting
some of their work programmes
approved by NAPIMS
(National Petroleum
Investment Management
Services). Is your committee
doing anything to ensure that
the delay in the contracting
cycle is contracted?
One thing you don't know about
the NCB is that it has completely
Nigeria Liquified Gas
addressed the concerns
surrounding contract tendering
process; it has reduced it such that
when a company advertises for a
project, the time for pre-
qualification, the time for
technical and commercial bids
are all provided. By the bill is
signed, I am sure that no contract
would take more than six months
from the tender to the time it is
awarded.
In the last three and half years,
we have seen four group
managing directors
superintend the NNPC calling
to question the direction of
government regarding this
critical entity in the country's
economic life. As someone in
charge of superintending the
industry from the legislation
perspective, are you looking at
the possibility of ensuring that
the position of group managing
director is tied to a tenure to
avoid a situation where people
are replaced at the whims and
caprices of whoever determines
the fate of the person occupying
that portfolio?
The PIB has addressed this
concern, it stipulates the
qualification of who becomes the
group managing director and this
was not there before now in the
Petroleum Act, the PIB has
defined tenure and every group
managing director shall be
subject to confirmation by the
Senate. So the issue of group
managing director of the NNPC
is being treated along the same
lines as the institution of the
international oil companies. And
CONTINUES ON PAGE 13
 Focus
CONTINUED FROM PAGE 12
talking about the several changes
in group managing directors, I
have been here for 7 years as
oversight chairman of the
petroleum committee, I worked
with Jackson Gaius Obaseki, he
was a very wonderful man who
served from 1999 to 2003, then
Funsho Kupolokun came and
served from 2003 to 2007, he
enjoyed a full 4 years tenure
under Obasanjo. I think Funsho
left because he was not interested
in working any longer after
Obasanjo left but the issue
surrounding the departure of
Alhaji Abubakar Yar'Adua who
succeeded Funsho was a personal
vendetta of Alhaji Rilwanu
Lukman who came in with his
personal assistant, Mohammed
Sanusi Barkindo, he wanted to
take total control of the industry
and I can tell you as the oversight
chairman that the era of Lukman
and Barkindo was the worst in
the industry, the most fraudulent,
the most devastating impact on
local content, the worst in public
relations and I can tell you that
Barkindo still has a lot of cases to
answer. I can tell you that he was
not removed owing to political
consideration but for economic
fraud perpetrated on the
institution and the investigation
of his tenure would reveal much.
The Economic and Financial
Crimes Commission (EFCC) is
aware of this, he has a lot of cases
to answer and he may be the
typical example of a former
group managing director of the
NNPC that may face serious
charges out of office.
Can you shed some light on
these cases of corruption you
have mentioned?
A man's innocence is taken for
granted until he is proven guilty
by a court of law or investigation
panel but I can tell you that as a
man who has been in charge of
oversight function for the
industry for some time, their
administration marked the most
fraudulent, the most innate, the
most unfocused and the most
unprofessional administration of
the NNPC and I think the
decision of the Acting President
to replace him have saved the oil
industry in a million ways. And I
salute the courage of the Acting
President for reacting to the
recommendations of several
parties who have seen the
massive corruption that
underscored the Barkindo
administration and I can assure
you Barkindo will face
corruption charges very soon.
Under Barkindo, the NNPC
came into debt in excess of N1
trillion (one trillion Naira) for
sundry service, so it is an
organisation at the edge of
liquidation. I can be quoted, the
records are there. Over one
trillion naira was incurred in debt
from sundry services provided by
creditors. Anybody can go to
court and demand for a
liquidation. You can see that the
lives of Nigerians have been
taken to the lowest ebb. If an
organisation like the NNPC can
Nigerian Senate promises investors
equitable fiscal terms
face liquidation, then you can see
for yourselves what my concerns
are. It's like a man who loses his
I know from the soul; he dies spiritually, what is
left of the life of that man? That is
days of Funsho why we are investigating crude oil
sales and remittances to the
Kupolokun, up to federation account. So NNPC
Abubakar reduced itself to a position where
it was selling crude oil, remitting
Yar'Adua, issues what it liked to the federation
of single source
account and used the rest to cover
up the internal decay. Those are
part of what we are investigating,
negotiation
contracts were
fictitious contracts, and single
source contracts awarded by the
NNPC. I know from the days of
completely Funsho Kupolokun, up to
Abubakar Yar'Adua, issues of
banned but single source negotiation
contracts were completely banned
Barkindo came but Barkindo came back with so
many fictitious single source
back with so contracts. These are fraudulent
contracts that are questionable.
many fictitious We will see when we start the
single source investigation we will expose all
these. I am not telling you
contracts anything out of fiction. We will
take everything down on record
and hand them over to the
An Oil Rig At Night
necessary prosecution authority
to prosecute him and all his
cohorts. I have said it before, I had
passed a vote of no confidence on
Barkindo and his entire
management team and I
recommend that all of them be
sacked accordingly. Not just
Oil falls on higher inventories
O il prices fell toward $84
per barrel in seesaw trade
today, as high US inventories
outweighed early support from
strong Chinese crude imports
and a weak dollar.
US crude fell 58 cents to
settle at $84.34 per barrel, after
earlier rising to $85.71 per
barrel.
London Brent crude fell 6
cents to settle at $84.77,
moving to a premium above
US West Texas Intermediate
crude for the first time in
months.
The euro rose to its highest
13
Barkindo but all of them that
served in his management
committee should be sacked
because they are all part of the
inept and fraudulent executive
Barkindo committee of NNPC
The Offshore Technology
Conference (OTC) coming up in
Houston, Texas , USA is around
the corner. What do you expect
Nigeria to come away with in
terms of attracting foreign
investment to the country's
beleaguered oil and gas sector?
I am very sure that the issue of
the PIB will come to play in
Houston. I am chairman of the
joint committee working on the
PIB and until the report is taken to
plenary I am not in any way
authorised to reveal contents of
that report other than to give you a
synopsis like the highlights I gave
in answer to your earlier
questions. All we can say to the
international community is that
we are making a law that is
investor friendly and attractive
and we are very mindful of the fact
that unfriendly legislations would
drive away investors. We need our
friends, we need investors and we
are sure the PIB would enthrone
an investor friendly regime, very
fiscal friendly regime, very
operational regime and a very
friendly commercial regime. And
soon as the Nigerian Content Bill
is signed into law, it would
remove the conflict between what
is due to Nigerian companies and
that which is due to the
international service companies.
And above that the situation in the
Niger Delta is calm. Thus our
friends who are around the world
must encourage government by
participating to ensure that the
amnesty programme which
includes key aspects of provision
of rehabilitation facilities,
industrial estates are set up to
create jobs for the people so that
we can have a quiet oil industry.
level against the dollar in
nearly a month today on the
Euro zone's plans to aid
Greece, which provided early
support for crude. But gains
eroded as investors questioned
whether current prices were
justified, given the
fundamentals.
"Initial enthusiasm for the
plan to help Greece did not
increase oil demand. The larger
view must be that the sentiment
pendulum has shifted at least
temporarily back towards
skepticism about whether
demand has recovered enough
 Fee dback
Responses for “And
Assumpta died”
Habinga says:
About this and related cases. Someone should
be held accountable and compensation paid to
the families. It could be PHCN OR THE
STATE
GOVERNMENT!
David Osahon says:
What a tragic state of affairs indeed.
This goes to show the lack of safety
standards in our country. Western
countries mandate standards whereby
cars get hit by lightning and withstand
it just fine and as such I see no reason
for this tragic state of affairs just from
an overhead cable. Sad indeed! Nigeria
as a society is decaying sadly.
Responses for “Nig
erian solid Mineral now
toast of world's biggest
bank, Madueke”
Tunde says:
Her nature can best be described as well
discipline person. That's great!
Good for her, I guess she must have grown up
outside of the Nigeria.
Her calmness and composure brought good
results for the Country, as well. Thank you for
serving our great country very well. Long live
Nigeria!
Eze says:
Too much braggadocio
and nothing to show for
it. Nigerian leadership
makes me sick.
Ipko Okoronkwo says:
Scruplous, unethical and inhuman Chinese
Investors getting interested in everything
Nigerian? Am very very sorry for that Country
and wonder the myopicism of our socalled
Government and its idiotic Ministers.
Response for “NLNG lost
over $2 billion in 2009,
Ibeneche”
Wole vanRoy says:
Where is the 10 per cent and all other incentives
referred to? They are just there in someone's
imagination and should not be taunted anywhere.
Only and only when the PIB has been ratified as
a law and modalities for its full implementation
put in place will the people of Niger Delta be
able to SMELL the benefit at all. It will take
another 5years (minimum) of faithful and
committed (God-fearing) utilisation of accruing
resources by those entrusted with governing
Feedback
NIGERIA
authorities, before the masses in that region and other
Nigerians will have a TASTE i.e. “physical” feel, of
these rewards/benefits. Therefore our leaders, including
the expert Dr Egbogah, should please be truthful and
tactically measured in their promises and utterances.
Only then can we said to be truly and sincerely
engaging with our people and hence able to build
TRUST between the government and governed.
I welcome other views about this and indeed challenge
those in charge of the PIB related reforms to disprove
my position.
The future is indeed very bright if we do the right
things today. God bless Nigeria.
Responses for “Not every
Nigerian wants power,
Babalolola”
Nwa Delta says:
I believe Babalola is right. I will also add that medical
doctors benefit from sick people and hospitals will be
out of business if people are not being sick. Lawyers
will also be out of business if every individual and
corporation corporates and behaves right. As a minister
Babalola or whoever replaces him should be held
responsible in jobs he is being paid for, which are not
correctly carried out. The President or AG should be
ultimately held responsible by the voters. So to safe
guard his/her position s/he should hold ministers
accountable. Ministers will in turn hold their staff and
so on responsible. Ultimately Nigeria will see
functioning state. At the moment ministers think “it is
because the contractors we paid didn't do their job”.
The A.G should then sack him/her reappoint someone
else to do the job. By the time the process has been
repeated 10 times or more ministers will start taking
14
responsibi lity for the position
and thus work hard
knowing they
could be fired.
WOLE
WALE says:
Power!
Power!!
Power!! Who
does not know that
the Cabals are behind
importation of
Generators to the country
to kill innocent Nigerians.
Fumes from generator
circulate everywhere daily
and we are dying every
second. For as long as these
wicked people are getting money
from every angle, they careless what
happens to you and me. PHCN is
staffed by 75% casual and 25% real
staff that is another area whoever the
Minister in charge of power should look
into. It is shameful that what we did not
experience five decades ago is happening
now. Just go to Malaysia and see how they enjoy
power, road network etc and you will wonder what
kind of people are we in this part of the world. A
word is enough for the wise else he goes the same
ways others have gone. The difference between the
so called super rich who steals money here and
there and the poor is that they are rich but will
definitely die like the poor man and will not take
the stolen money with them. God saves Nigeria.
EMEKA N. says:
Lanre Babalola can be ignored as we know whom
he represents. But, correctly, he remains the BIG
FOOL he has been. IDIOT!
Responses for “Killing of
Christians up north is very
painful, River PFN
Chairman”
Dr. Olu says:
Who is this Gasky? Where are you from? Your
heart is evil. You can't even write simple statements
correctly with poor spellings (infedils and
progrom). Who is an infidel? If Christians are
infidels to you then you are a great infidel to them.
And you and your kind are on the way to hell. If
human life is not sacred to you who cannot make
one piece of hair to grow, then you should see your
belief as misguided and completely erroneous and
evil. I feel sorry for you and your religion. Any
religion that has no love for others is dead and it is
evil. Gasky Truth (Lie) repents!! God cares for
you; you still have the opportunity for salvation.
For there is only one way to heaven and it is
available to you through Jesus Christ. May God
have mercy upon you and your kind.
Gasky Truth says:
It is not only painful; it is a task that must be
fulfilled by any real Moslem against the infidels.
Started in 1966 in the genocidal “Pogrom of the
Igbo of Eastern Nigeria” & first ever ethnic
cleansing in Africa. History has a way of repeating
itself. Who said Muammar Ghaddafi is mad? It
must be Nigerians the highest asylum seekers that
are mad. Winston Churchill said it. …”The further
backward you look, the further forward you can
see.” gaskytruth@gmail.com
SweetCrude 15

…As Nigerian insurers stamp feet on US$86bn oil risks
Subscription markets chop off
90% oil, gas insurance placements
Patience SAGHANA
A
gainst all odds
being faced by
local insurance
industry in oil and
gas insurance
business compounded by
subscription market which often
rob the local market of 90 percent
placement, Nigerian insurance
industry is still able to stamp its
feet in US86billion oil and gas
insurance business
Subscription market often strip
the local market of huge premium
as it describes the commercial
insurance and reinsurance market
in London by which a single risk
is underwritten by a number of
underwriters, both at Lloyd's and
in the insurance company market
subscribing percentage lines of
the risk on a several, not joint,
basis.
This method of placing risks
typically requires a broker to act
as intermediary between the
insured and the insurers and as
between the reinsured and re-
insurer. It also typically requires
one of the underwriters to act as a
leader to agree the terms of cover
and the policy wording, and to
make decisions on claims.
The $86billion sum insured of
the Nigerian National Petroleum
Corporation (NNPC) and its joint
ventures has the active
participation of Nigerian
insurance companies in the
business.
A breakdown of the $86billion
total joint sum insured of NPPC
and its joint ventures showed that
$39.53billion for NNPC CIP;
$5.05billion for Mobil
Operational; $9.64billion, Shell
Operational; $9.47billion,
Nigerian LNG; $4.05billion,
Total Akpo; $5.92billion, Total
Usan; $4.37billion, Shell Bonga;
$4.70billion, Chevron Agbami;
$2.09billion, Total OML 58 and
$1.18billion, Tullow Jubilee
Field.
But the required capacity to
underwrite oil and gas business is
almost exclusively provided by
the subscription market,
a c c o r d i n g t o M r. K e n
Aghoghovbia, Regional Director
(West African Office), African
Reinsurance Corporation.
Aghoghovbia said the 90
percent placement in the
subscription market is true in the
upstream sector where the
subscription market mainly
London, Europe and New York
control over 90 percent of
placements.
Insurance
Aghoghovbia in a paper he
delivered title, 'The underwriting
of Oil and Gas Risks in
Anglophone West Africa' at the
We s t A f r i c a n I n s u r a n c e
Companies Association
(WAICA)'s conference held in
Ghana recently said, “Most of the
country's major oil and natural gas
projects (95%) are funded through
the Joint Ventures (JVs) with the
NNPC as the major shareholder.
Foreign companies operating in
JVs with the NNPC include
SPDC, ExxonMobil, Chevron,
Conoco Phillips, Total, Agip and
Addax Petroleum. The remaining
funding arrangements comprise
production sharing contracts
(PSCs), which are mostly
confined to offshore development
programme”
He noted, “Those risks are
Sonatrach cheers double strike
A lgerian state energy group Sonatrach unveiled
two more oil and gas finds, bringing to five the
number of hydrocarbon discoveries made by the
company this year.
The new finds were made on blocks 239a and
244a in the Tinrhert area in Illizi basin, the
company said in a statement on its internet site,
according to a Reuters report.
easily in excess of $1 billion.
Thus Loss Limits and Maximum
Probable Loss are often
employed to underwrite same
risks. For a class of business
where reinsurance treaties are not
easy to come by, most insurers
rely solely on their shareholders'
fund to write a net line. Yet, apart
from Nigeria, where the
minimum capital required to
transact non-life business is about
US$20m, all other countries in
the region have at the most 5
percent of that figure”
M r. A d e y e m o A d e j u m o ,
Managing Director of
Continental Reinsurance Plc
corroborated Aghoghobvia
saying that the international
scope of the subscription market
means that the regulatory issues
impacting its participants stretch
Sonatrach said the Akamil-2 well on Block 239a
flowed at a rate of about 600 barrels of oil per day,
from the Upper Devonian F2 formation between
depths of 1960 and 1967 metres.
The Antar Est-2 well on Block 244a flowed gas at
a rate of about 194,000 cubic metres of gas and 555
barrels of condensate per day from the same
formation.
16
beyond the rules of the UK
regulator, the Financial Services
Authority (FSA).
Adejumo reiterated, “Many
non-EEA companies write
business in the London market on
a subscription basis, although
they are not (and indeed, do not
need to be) directly authorised by
the FSA to carry on that business.
It is apparent that there is
widespread confusion as to the
regulatory position of such
foreign insurers and re-insurers
operating within the UK and the
EEA”.
Nigerian insurance companies
upped the ante of participation in
oil and energy insurance business
in Africa with the country's
underwriters leading the top five
oil accounts on the continent with
a whopping N24.6billion.
Analysis of the top five oil
insurance accounts in the
continent showed that Lasaco
Assurance Plc is leading the
USAN oil fields with a premium
income of $82,922,706.67
(N12.4billion); Leadway
Assurance is holding the ace with
the Nigerian National Petroleum
Corporation (NNPC) with
$48,598,716.47 (N7.2billion) and
OML 58 insurance account of
$3,138,012.71 (N470.7million)
along with foreign underwriter,
HSBC; and Guarantee Trust
Assurance (GTA) leads on Total
Insurance account with
$5,939,094.69 (N890,9million)
w hilst the Kosmos (Tullow)
insurance account is being lead by
SIC Insurance Company, Ghana
and RKH Insurance Services.
Out of 14 African countries that
are in the oil and energy insurance
business, Nigeria insurance
companies still remain the largest of
them all as they are actively
participating in the oil and energy
insurance business in the continent.
Nigeria's insurance industry
witnessed a major boost in its
premium generation with the
appointments of 21 underwriters by
ExxonMobil to underwrite the risks
from its ERHA projects for 2010.
The account led b y Lasaco
Assurance puts the indigenous
insurance industry in solid stead
to secure a significant slice of the
over $480 million paid annually
as premium by Nigeria's oil
industry. The development which
is an indication of growing
confidence of oil companies on
local insurance operators is hoped
would go a long way in
addressing huge capital flight that
has faced the sector over the years
 Insurance 17

West African insurers position

for oil & gas insurance -Aghoghovbia
W
est African
insurance
companies
h a v e
positioned
themselves to keenly participate
in oil and gas business especially
those emanating from within the
continent.
Validating the preparedness of
the West African insurance
industry, Mr Ken Aghoghovbia,
Regional Director (West African
Office), African Reinsurance
Corporation, said the Anglophone
West African insurance sector has
organized itself in a way that the
sub-region can no longer be
ignored in the oil and gas
insurance business.
According to him, “The
insurance sector in Anglophone
West Africa is well positioned to
offer its services to the Oil and
Gas industry”.
Aside from the sub-region's
strive to enhance its capacity and
competence for the big risks, West
African insurance companies
have proven beyond doubt to have
a good grab of the oil and gas
risks.
Aghoghovbia affirmed that the
Nigeria insurance industry for
instance, is continually
developing its knowledge base of
the industry following the
frequent training and exposures to
international brokers and
underwriters.
He said, “Insurance companies
have set up Oil and Gas desks to
bid for the insurances of major oil
risks, though they are not yet in a
position to quote on these risks”.
In Ghana, he enunciated that
National Insurance Companies
Consortium was formed to
manage the Oil and Gas portfolio,
adding that SIC Insurance
Company Limited was appointed
the leader of the Consortium.
The consortium, he said, is open
to all members of the Ghana
Insurers Association
underwriting non-life business
R- Mr Adeyemo Adejumo, Managing Director of Continental Reinsurance Plc, Mrs Cecilia
Osipitan, Chief Executive Officer of Great Nigerian Insurance Company and Mr Taiwo
Oguniranye at the WAICA conference held in Ghana recently
knowledge of the business may be
at a slow pace since the
participating insurers in the
consortium would not have the
personal drive to urgently acquire
the relevant knowledge and
underwriting skill. It is also
wondered if this could be an
enduring arrangement or whether
establishing a Pool would not be a
better option”.
At this juncture, he advised
insurance companies in the West
African sub-region to join the oil
and energy insurance pool to
boost their capacity. “Pools are a
group of insurers that have come
together to subscribe a capacity
Oil falls on higher inventories
for the underwriting of a
particular risk. Businesses
received by a Pool, are shared to
all its members according to their
subscribed capacity. For
instance, an Oil Pool would
require all members to cede to the
Pool a proportion of their oil and
gas business, up to the Pool's
capacity. The entire business
received by the Pool shall then be
offered on original terms basis to
members, subject to any
reinsurance protection. Pools are
usually formed for risks with high
values, that are of hazardous
nature and for which underwriting
skills are limited. A good
example is the African Oil and
Energy Pool, which was formed
in 1989 by the African Insurance
Organization (AIO) and has been
very successful.
It would be recalled that African
Oil and energy pool reported a
premium income of $9,694,545
in the financial year ended
December 31, 2008. An
underwriting profit of
$10,019,535 was recorded in the
year under review against
$9,022,116 posted the year
before.
The number of Nigerian
insurance companies that are
members of the pool has
increased from 26 to 31 at present.
The pool at its Management
board meeting in Nairobi, Kenya,
early last month considered the
applications of the six companies
admitted having gone through
their accounts and fond them
eligible to be members of the
pool.
According to the pool,
"Application for membership of
the pool was received from Tunis
Re and five Nigerian companies-
Universal Insurance Plc, Aiico
General Insurance Company,
Union Assurance Company
Limited, Royal Exchange
General and Continental
Reinsurance Plc"
The financial statements were
analyzed and the companies were
found to be eligible for
membership. The managers
therefore recommend admission
with a participation of
US$200,000 each"
Africa Oil and energy pool has
reported a premium income of
$9,694,545 in the financial year
ended December 31, 2008. An
underwriting profit of
$10,019,535 was recorded in the
year under review against
$9,022,116 posted the year
before.
Within the period under review,
two West African insurers also
joined the league of 40 insurance
companies in the African
countries for Oil, Energy
Insurance Pool bringing the total
to 42.
The two companies are
Mainstream Reinsurance
Company, Ghana and Nigeria 's
Regency Alliance Insurance Plc,
totaling 42 companies now in the
oil and energy pool.
Regency Alliance's admission
into the pool has increased the
number of Nigerian companies in
the pool to 26 companies.
The Nigeria companies are

whilst he remarked that the
formation of the consortium, all
insurances would be placed
locally and reinsured to
international markets.
“The reinsurance commissions
received are set aside to cater for
all the expenses of handling the
business, training of the market
on Oil and Gas business and
building reserves to facilitate
higher market retention. There is
therefore no eagerness by insurers
to get the business at all cost.
However, the growth in market
O
il prices fell toward $84 per barrel in
seesaw trade today, as high US
inventories outweighed early support
from strong Chinese crude imports and a weak
dollar.
US crude fell 58 cents to settle at $84.34 per
barrel, after earlier rising to $85.71 per barrel.
London Brent crude fell 6 cents to settle at
$84.77, moving to a premium above US West
Texas Intermediate crude for the first time in
months.
The euro rose to its highest level against the
dollar in nearly a month today on the Euro
zone's plans to aid Greece, which provided early
support for crude. But gains eroded as investors
questioned whether current prices were competing with insurance
justified, given the fundamentals. companies from Algeria,
"Initial enthusiasm for the plan to help Greece Ethiopia, Egypt, Kenya,
did not increase oil demand. The larger view Madagascar, Senegal, Sudan,
must be that the sentiment pendulum has shifted Tanzania, Zambia, Tunisia, Togo
at least temporarily back towards skepticism and Zimbabwe that are into oil,
about whether demand has recovered enough to energy and aviation insurance
support current prices," said Mike Fitzpatrick, pool while insurance companies
executive at MF Global in New York. from Benin Republic and
US crude oil inventories likely rose last week Cameroon are for the oil and
for the 11th week in a row, on higher imports, a energy pool just as Libya,
Reuters poll ahead of week inventory reports Morocco, Ghana, and Eritrea are
showed today. for aviation pool only.
SweetCrude 18
 Insurance 19

Oil, gas insurance requires conventional treaty, training Lasaco ED

Patience SAGHANA the ability of the industry to fulfill Lasaco Assurance Plc has said Nigeria”. To maintain its position as a
its purpose and are continuously that its oil and gas insurance Mr. Olusola Ladipo-Ajayi, major player in the sector, he added

N
igerian insurance introducing or revising legislation premium in 2009 rose to Managing Director of the company that the company had been able to
industry could to ensure it is able to meet its N14.5billion. said that over the years, the groom a team of young men and
enhance its contractual (and social) obligations The company's share of the company has continued to enhance women who have become versatile
capacity and According to him, “It is also market has so far been its special risk portfolio in the oil in the business.
confidence in the necessary to have some form of encouraging in terms of premium and gas insurance business. The Lasaco boss said the
oil and gas insurance business if training in the oil and gas apart from income and profitability. According to him, “Lasaco has a insurance company does not
insurance companies can do more the fact that its risks are He stated, “I can conveniently strong reinsurance treaty with hesitate when it comes to
internationally rated, it will help the say that we are one of the key foreign reinsurers, which enhanced investing on its human capital
of conventional reinsurance
local market expose and players in the oil and gas its capacity to insure more risk in especially in exposing his staff to
treaty and expose their staff to
competence” insurance business in the the sector.” training abroad.
more training.
Those are the
submissions of
Mr Jide Wright,
Executive
Director of the
L a s a c o
Assurance Plc
in an interview
w i t h
Sweetcrude.
He said,
“There is need RC 38815
t o h a v e
conventional
t r e a t y. W h a t
insurance
companies have
generally are
n o t
conventional
treaties”.
Moreover, he
explained that
reinsurance
transactions are
a r r a n g e d
t h r o u g h
specialised
contracts and as
such, there is a
n e e d t o
understand the
legal and
regulatory
environments in
which these
contracts are
designed and
enforced. PROFESSION
“ T h e AL INDEMNIT
Y
reinsurance
WORKMEN C
business is OMPENSATIO
essential to N
international ALL RISKS IN
SURANCE
trade and to
economic GROUP PERS
growth. The use ONAL ACCID
ENT
of inappropriate
reinsurance GENERAL AC
CIDENT INSU
arrangements RANCE
and the effects
of inability to
r e c o v e r
amounts from
reinsurers here
contributed to
several high
profile failures
by insurers and
consequences
for those
involved with
them”.
Governments
are taking a
close interest in

Multinationals' captive companies
rib local market of premium
Patience SAGHANA
M
ultinational
companies are
increasingly
favouring
captives and
self-insurance due to the lack of
confidence in the traditional
market for emerging and big
r i s k s .
A good number of multinationals
use captive or other risk retention
vehicle whilst some of them are
considering embarking on some
sort of self-insurance programme.
Aside lack of confidence in the
traditional market more
especially in the local markets,
conventional insurance
companies are believed to lack
requirement for emerging risks
rather, their priority is more on
profitability in a softening general
liability market than confronting
the challenges in the difficult
risks headlong.
Globalization of business also
tends to favor captive formation
since allocating the true cost of
self- insurance without a formal
accounting structure creates
problems for multinational
corporations.
Mr. Simon Thompson, a
director at Aon, remarked that
said more companies are likely to
turn to captives unless the
insurance market responds
q u i c k l y .
According to him, “If buyers
cannot get the cover they need in
the market, they have every
incentive to continue the move
towards self-insurance. Once
buyers become used to the
philosophy of higher retentions or
captives, the business retained
and its consequent premium
volume is usually lost to the
insurance market for good”
A captive insurance company is,
in its purest form, a subsidiary
Insurance
company formed to insure or
reinsure the risks of its parent and /
or associated group companies.
Captives are usually formed to
provide alternative risk
management solutions to that of
the conventional insurance
market.
Examples of captive companies
in Nigeria, are: Intercontinental
Bank which bought substantially
into Intercontinental Wapic
Insurance Life and General
Insurance Companies); Oceanic
International Bank plc (which has
Oceanic Insurance Life and
General Insurance Companies);
FinBank plc (having Fin
Insurance Company Limited);
Union Bank plc (having Union
Assurance Company Limited as
subsidiary, and Afribank plc
(which also has as subsidiary,
Afribank Insurance Brokers
Limited).Adic Insurance is part of
Diamond Bank group. UBA
Metropolitan by UBA Plc;
Insurance PHB by Bank PHB;
Kapital Insurance by Unity Bank;
Guaranty Trust Assurance plc, the
insurance subsidiary of GTB;
Zenith Bank (Zenith General
Insurance); Skye Bank plc (Law
Union and Rock Insurance);
Oceanic Bank (Oceanic
Insurance); UBA Group
(UBA/Metropolitan Life
Insurance), and WEMA Bank
(Great Nigeria Insurance).
But the developments both at
the international and local
markets may pose a threat to the
continue increase in captive
formations. For instance, in
today's competitive insurance
market, where carriers are
continually developing creative
products and pure self-insurance
remains a popular and effective
option, parent organizations may
select risk transfer strategies
other than captives.
20
Lagos, Nigeria
Whether or not captive
formations increase substantially
in the future, several factors may
shape the captive industry over
the next five years. .
A Nigerian insurance chief
executive who preferred
anonymous in his view said that
parent organizations could use
their captives to access an
alternative market radically
different from the one that exists
today.
"This market could consist not
only of the reinsurance market as
we know it, but include
securitized insurance products
sold directly to investors and
other financial products that have
not yet been invented."
Developments in risk
management programs are also
having an impact on the way
parent organizations are using
their captives.
He said, "Some businesses are
significantly increasing their
retentions and often are funding
them in a captive,"
"In the past, people assumed
that an increased retention would
reduce the amount of excess
limits to be purchased. Risk
managers now are realizing they
often buy way too little in limits”,
he posited

Victor AHIUMA-YOUNG
W ORKERS in the
nation's petroleum
industry, in a bid to
address the proliferation of
contract and service employment
in sector which they perceived as
unfair labour practices and
potentials for industrial unrest,
have presented a position paper
on how it should be addressed to
avoid a disruption of the
industrial peace.
At a tripartite stakeholders'
meeting of operators in the
industry, held in Abuja under the
auspices the Federal Ministry of
Labour and Productivity, under
the umbrella of the Petroleum and
Natural Gas Senior Staff
Association of Nigeria,
PENGASSAN, the workers
lamented contract Staffing
remained a big challenge to all
sectors of the nation's economy,
not only in the oil and gas industry
In the position paper by the
President and General Secretary
of PENGASSAN, Comrades
Babatude Ogun and Bayo
Olowoshile respectively, they
posited that the drivers “of this
anti-labour practice have argued
that some jobs in the Oil and Gas
Industry, by their irregular and
terminal nature, are best done
without fully employed staff.
Oil workers present position
paper on contract staffing
This argument has become
largely untenable given that most
Contract Staff are hired to do
establishment jobs meant to be
on regular basis over many years
PENGASSAN
resolve that Labour
Contract has
become a ill-wind
that should not be
tolerated in
whatever gab it is
dressed in view of
the persistently
unguided abuses
Labour
but these categories of recycled
experienced Contract Staff have
little or no chance for conversion
to regular employment. The
Association duly note and
acknowledge that Service
Contract of genuine and proper
application cannot be completely
eliminated, given the fact that
these are specialized jobs
provided by organized and
structured companies with the
entire wherewithal to operate as
such; however, it is
PENGASSAN resolve that
Labour Contract has become a ill-
wind that should not be tolerated
in whatever gab it is dressed in
view of the persistently unguided
abuses, the prejudicial and the
unfair labour tendencies that are
endemic in the labour contract
applications.”
“Labour Contract Staffing is a
common staffing feature in the:
Upstream (Crude Oil Exploration
and Production) Oil and Gas
Pen, stamp, paper and ink
21
which could be an individual or
organization that provides a
specialized, consultancy or
professional service, with own.
Personnel facilities or equipment
under a “Contract for Service”
term and agreement..
Employment Contracts which
relates to job positions occupied
by workers who is on “Contract of
Service” or a regular basis over a
Companies; Downstream non-determinable period of years.
(Petroleum and Petrochemicals Manpower or Direct Hire
Products Refining, Marketing contract, defined as a labour
and Distribution) Oil and Gas contract that exist between a
Companies; Oil and Gas company and an individual
Servicing and Service Providers through direct hire without the full
Companies Government complements of benefits as in a
Corporation in the Oil and Gas regular employment. NYSC and
Sector. The terminologies use to SIWES This could be regarded as
depict the claims a form of contracting if an
organization reserves about 70%
for, and mode of
of its work force for National
Staffing: Labour
Contract which Youth Service members or
connotes the Industrial Attachés'”
deployment of Characteristics of labour,
human resources service contract
or human capital Explaining what the association
potentials (as adjudged the characteristics of
both labour and service, said:
l a b o u r o r
“Roll-over job which is
personnel) under a
third party continuous in nature and whose
arrangement, supervision and appraisal is done
which mainly by the user company. The user
plays no role other company determines the day-to-
than being a day tasks and assignments.
paymaster. Labour Contract Staff are found
Service Contract occupying positions that is
identifiable in the organogram of
the company. For a service
Features of specialized company
providing special expertise,
professional or consultancy
services over a given period of
time to client-user company for
agreed terms; Service company
stands as independent company
that trains and development own
employees for the specialized
expertise, professional or
consultancy services, and usually
deploy own work tools and
equipment. Such company have
such skills, tools and equipment
that the user company cannot
provide; recalling the resolution
reached at 2001 oil industry
seminar “Casual and Contract
Employment”, the oil workers'
union said, “The right of
Contract and Casual workers to
Unionize and their entitlement
to recognition in accordance
with Section 24 of the Trade
Unions Act (Cap 437) LFN. It is
an unfair labour practice to deny
labour the right to unionize and
is a contravention to the
provisions of Section 40 of the
Constitution of the Federal
Republic of Nigeria; and ILO
Conventions 87 & 98 among
other key ILO Conventions on
Decent Work. That Contract and
Casual workers should be given
equal opportunity for regular
employment when vacancies
exist. This is to enable these
category of staff have the first
opportunity to employment
before outsiders because of their
on the job advantage.
SweetCrue 22

The Executive Secretary, Petroleum Technology Development Fund

PTDF, Engr. Muttaqha RabeDarma presnting an award to one of the
winners during the 'catch them young' zonal competition in Kaduna.

by the
Engr. Muttaqha RabeDarma.
SweetCrude 23

C OMRADE Peter
Akpatason is the
immediate past
President of the National Union
of Petroleum and Natural Gas
Workers, NUPENG, who left
office in February, 2011 after
spending 11 years at the national
level of the union, first as
Treasurer and as President for
eight years. Comrade Akpatason
who is the current National
Trustee of the Nigeria Labour
Congress, NLC spoke with
Sweet crude Correspondent,
Victor Ahiuma-Young on the
issue of deregulation of the down
stream sector of the Petroleum
industry, his experience tenure as
the NUPENG President among
others.
Excerpts:You were the
President of NUPENG for 8
years, what will you say was
your greatest challenge?
Obviously the greatest
challenge has been the issue of
unfair labour practices especially
casulization of workers in the oil
and gas industry even though it is
a global thing even though it is
affecting every union but for us
we see it as a major challenge
because our industry as you know
is highly technology driven and is
also one that is dominated by
multinationals the protagonist of
casualization and contract
staffing. So it is so prevalent in
the industry, we have done so
much internally to try to control
that but despite all our effort it has
still remain a major challenge.
We are not relenting how ever,
our position has remain that the
policy must be challenged,
contract workers must be staffed
where they are not yet staffed we
must try as much as possible like
we have been doing to continue
to put in place some befitting
conditions of service for them.
Another major challenge is that
of the crisis in the Niger Delta.
You know our industry is majorly
in the Niger Delta region as
majority of our operations are
from there except from
marketing and the rest. For quit
some years now we have been
having very serious challenges
that when the companies are not
doing well it directly affects the
unions because it affect our
numbers, it affect moral, it affects
safety and all other issues and
institutions that we try from time
to time to create. We want a very
safe environment to work in. We
want people to work with a very
high moral so there could be high
productivity and efficiency. But
the whole of that was negatively
impacted by the crisis in the
Niger Delta to the extent that we
lost people not only to
retrenchment, redundancy and
dislocation by the crisis but also
to direct attack by the militant
and some opportunist in the
region. So, Niger Delta crisis
which has not been fully resolved
has actually affected the industry
very negatively and affected our
numerical and financial strength
Cartels can frustrate dividends
of deregulation —Labour
a l s o v e r y d r a s t i c a l l y.
At the time you became
president, was almost the same
time the issue of appropriate
pricing of petroleum products
or deregulation as now called,
gained ground. How would you
describe the whole issue and the
politics therein?
Whether it is politics or
deregulation or appropriate
Labour
pricing, the first way I look at it is
that no one particular policy in that
respect is totally wrong on its own.
Be it deregulation or appropriate
pricing, but you must bench mark
it with some other factors like,
what is the level of affordability in
the society? What is the income
level? What is the employment
level? A situation where you have
high income level and high
Dollars on the scale
employment, the people can
afford to pay appropriate prices as
corporate citizens. In a situation
where you have very abysmally
low income level and very high
level of unemployment, a lot of
people roaming the street and
then you keep on jacking up
prices, you only end up putting
the people in penury and that is
not good for any society. So, at
24
this point in time, you know that
we have actually carried out a lot
of campaigns in trying to
maintain affordable level of
pricing for petroleum products
that actually led to some strike
action by the Nigeria Labour
Congress, NLC, Trade Union
Congress of Nigeria, TUC, and
then the civil society
organisations that are mostly
appendage of labour. In this
country NUPENG has always
contributed its best to ensure that
prices are not fixed beyond the
reach of the common people, we
will not have any reason to
change from that position. But
just now we have attempted to
look at the issues more broadly.
For several years, we had said
total no to deregulation, just as
we speak that has not actually
changed the fortunes of the
industry. The expected result is
also not there because it was
expected that if we insisted that
there should be no deregulation
the fear that prices would
increase as a result of
deregulation would have been
allayed. Unfortunately that is not
the case. Right now as we speak if
there is scarcity and from time to
time it has happened, people are
even willingly any way offer to
pay more than what ordinarily
would have being the pump
price. In whatever dispensation,
we thought we should look at the
factors that were responsible for
this. Those factors that would
make the products expensive
weather deregulation or no
deregulation and we saw that
manipulations by some players in
the industry that some times, we
call cartels. But these are very
powerful individuals and
corporate organizations that have
made the subsidy scheme itself
unable to deliver dividend to the
Nigerian people. Those same
people and institutions would
make deregulations also not to
deliver to Nigeria people if some
basic fundamentals are not put in
place. Otherwise, the regime of
subsidy would make life easy for
Nigeria people. Never the less,
deregulation if properly done will
also deliver some positive
outcomes. But none of these two
policies or option will deliver
anything positive in the presence
of manipulation by these cartels.
We have a lot of societal
inefficiencies like those that lead
to the payment of affordable
demurrage that every Nigerian
per liter or fuel that we buy and
this is because the facilities are
grossly inadequate, coastal
waters needs dredging and its not
been done, big ships can not
come directly to berth even those
that come they have to cue for
quite some time and so pay
demurrage and even where they
manage to berth and offload
rather than supply through a
network of pipelines, they do by
road haulage and the roads are in
very terrible condition.

Oil workers task Jonathan on unfair practices
W ORKERS in the
nation's Petroleum
industry have called
on the Acting President, Dr.
Goodluck Jonathan, to address
nagging issues of contract
staffing and other unfair labour
practices among multinational
and local companies in the
sector.
Under the umbrella of the
Petroleum and Natural Gas
Senior Staff Association of
Nigeria, PENGASSAN, the oil
said this is only way to minimise
industrial unrest in the oil and
gas sector.
President of PENGASSAN,
Comrade Babatunde Ogun, who
spoke when he led other national
leaders of PENGASSAN on a
courtesy visit to the new
Minister of Labour and
Productivity, Chief Emeka
Wogu in his office in Abuja,
however assured of industrial
peace in the sector provided
government guarantees a
conducive environment.
According to him, “ we are
ready to give the Federal
Government our full support
provided government provide
the enabling environment.
Among such conducive
environment that the
administration to address is the
persisting issues such as contract
staffing and other unfair labour
practices among multinational
and local companies in the
sector.”
Welcoming the support of the
Association, the Minister said
the Ministry had in its
determination to realise the
O Labour gives recipe for revamping
RGANISED Labour
in the nation's
electricity sector,
under the umbrella of Senior
Staff Association of Electricity
and Allied Companies,
SSEAC, has given a ten-point
agenda on how to revamp the
electricity sector in the country
and provide stable power
supply to Nigerians.
President of SSEAC,
Comrade Bede Opara, said
among others, there should be
a discontinuation of plans to
sell Egbin Power station and
urgent re-organisation of the
distribution sector of the
power industry, building of
more and rehabilitation of
existing injection, 33/11kv
substations. That is, doubling
of existing capacity.
According to him, more
11/.415kv substations should
be installed as against the
Labour 25
We are going to give
including
casualisation,
c o n t r a c t
staffing and the
Petroleum
you maximum Industry Bill
support and (PIB).
“We have set
cooperation in
up a committee
ensuring that issues to look into
of industrial relations i s s u e s
concerning
in the oil and gas c o n t r a c t
sector are treated staffing/casuali
sation and
with maximum
unionization so
dispatch and in that we can
record time come up with a
blueprint to
tackle the
monster.
”Our Constitution ensures that
maximum there is freedom of association
welfare of all and I think that whatever we are
w o r k e r s going to do has to be done within
constituted a the ambits of the law. We are going
committee to to give you maximum support and
look into issues cooperation in ensuring that issues
s u c h a s of industrial relations in the oil
c o n t r a c t and gas sector are treated with
staffing, maximum dispatch and in record
casualisation time and we will work with you to
a n d a logical conclusion to add value
unionization to the oil and gas industry because
presently it is the mainstay of the economy.”
agitating the Among those present with
sector. Comrade Ogun were Comrade
The Minister Wali Mustapha, deputy national
assured of president, Comrade Bayo
government's Olowoshile, General Secretary;
determination Comrade Mohammed Saidu,
to confront Kaduna zonal chairman and
present issues Comrade Folorunso Oginni,
Dr Goodluck Jonathan facing the Lagos zonal chairman.
s e c t o r
engineers and technologists;
installation of three more units
at Egbin as provision had been
power sector
made for expansion during the
initial construction. This is
cheaper compared to building
of a new Station. Same goes
for Kainji as provision had
been made for four more units.
All civil works already
existing capacity x 1.5. completed. This is cheaper
Rehabilitation of 33kv, 11kv than building a new one. “Task
and 0.415kv reticulations. We teams” should be formed from
must use concrete poles, steel the existing staff for
cross arms and appropriate rehabilitation work in the
conductor sizes. There should Stations as was done at Sapele
be a fast-tracking of on_going P o w e r S t a t i o n . Yo u n g
transmission projects, fast- Engineers should be attached
tracking of on_going power to them for training purposes.
plant projects and re- Gradual and consistent
deployment of staff strictly on replacement of obsolete
competency and need.” equipment should be
“Employment and training of embarked upon. There should
young engineers especially by be close monitoring of all
the standard way of setting projects to conform to standard
exams for all fresh graduate Power station and completion within a time
schedule.”
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Looking Towards the Future

Corporate Directory
FULL NAME: NIGERIAN NATIONAL PETROLEUM CORPORATION

ACRONYM: NNPC

CORPORATE HQTRS: NNPC TOWERS, HERBERT MACAULAY WAY

CENTRAL BUSINESS DISTRICT
P M .B. 190, GARK1, ABUJA
TEL: + 234 9 460
WEBS1TE: www.nnpcgroup.com
VISION: NNPC will be a world class Oil and Gas Company
driven by shared commitment to excellence.
PETROL
MISSION:
AL
NNPC is an Integrated Oil and Gas Company engaged
in adding value to the Nation's hydrocarbon ResourcesEU
for the benefit of all Nigerians and all stakeholders.
N

M
O

(SCOPE OF ACTIVITIES: Oil exploration and production

NATI

Refining, products movement, marketing and retail

Gas development and utilization
Oil and gas research and development CORPOR
Oil and gas engineering
Monitoring/supervision of government investments
in the Upstream-sector
Marketing of Nigeria's accruable crude.
AN

CONTACT: Group General Manager, Group Public Affairs Division,

Tel: + 2349-46081 133
I
ER

Tel/Fax: + 2349-2340029
T

E-mail: nnpc-publicaffairs@nnpcgroup.com IO
NIG N
Business Offices
LONDON OFFICE: 159, Hammersmith Road
London W6 8BS Tel: +44(208)735-9600 E-mail: reception@Snnpc-london.conn

ZONAL OFFICES NATIONWIDE:

Warri
19/21 ,Warri/Sapele Road GRA, Warri
Delta State

Lagos
12, Milverton Street
Ikoyi, Lagos

Kaduna
24, Gobarau Road,
Kaduna
Kaduna State

Port Harcourt
49, Moscow Road, Old GRA,
Port Harcourt, Rivers State
Group Medical Division
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Introduction
The history of oil exploration in Nigeria dates back to 1908, when a German entity,
the Nigerian Bitumen Corporation commenced exploration activities in
Araromi Area of Ondo State, Nigeria. These pioneering efforts which ended abruptly
with the outbreak of the First World War in 1914 yielded some 1 6 shallow boreholes
and confirmed a line of oil seepage in Eastern Dahomey Basin in Okitipupa, Ondo
State.
Oil prospecting efforts resumed in 1937, when Shell D'Arcy (the forerunner of Shell
Petroleum Development Company of Nigeria) was awarded the sole concessionary
rights covering the whole territory of Nigeria. It's activities were also interrupted by the
Second World War, but resumed in 1947. Concerted efforts after several years led to
the first commercial discovery in 1956 at Oloibiri, Bayelsa State.
This discovery opened up the oil industry in 1 961 bringing in Mobil, Agip, Safrap (now
Elf), Tenneco and Amoseas (now Chevron Texaco). Production of oil in commercial
quantity commenced in 1 958 at 5,000 barrels per day (bpd) and reached 17,000
barrels p/d in 1960. At that time, the multinational oil companies operating in the
country bore the risk and cost of exploration, development, production and acquired
title to all crude oil produced. They also paid rent, royalty and taxes from the
operations.
Prior to 1963, the interest of the Federal Government in oil industry activities was
handled on departmental basis by the Hydrocarbon Section, the Department of
Petroleum Resources and Nigerian Petroleum Refining Company, (NPRC) which
were under the Federal Ministry of Mines and Power (FMMP).
Nigerian National Petroleum
Corporation, NNOC
In 1971, shortly before the country joined the Organization of Petroleum Exporting
Countries, (OPEC) as its tenth member, the Nigerian National Oil Corporation
(NNIOC) was established as a fully-fledged National Oil Company with the
responsibility for operating functions while the ministry took charge of regulatory
functions. The Corporation provided a platform for government to take up participating
interest in the operations of multinational companies which had dominated the
business before now. In 1971, government exercised its option of taking 33'/4 (per
cent) equity interest in Nigerian Agip Oil Company. In the same year, Government
again established her sovereign rights and acquired interest in Safrap.
In 1974, Government began acquiring participating interests in the operations of
multinational oil companies in conformity with OPEC's mandate requiring member
countries to take more active roles in the oil industry of their respective countries in
order to facilitate the transfer of technology, skill and experience to Nigerians.
Nigerian National Petroleum Corporation, NNPC
Apparently hoping to consolidate its multi_dimensional role as well as streamline
training requirement, the Nigerian National Petroleum Corporation, NNPC, was
27
AND
THE NIGERIAN
established on April I, 1977 under the statutory instrument_Decree No. 33 of same
year by a merger of Nigerian National Oil Corporation, NNOC, with its operational
functions and the Federal Ministry of Mines & Power with its regulatory responsibilities.
This decree established NNPC, a public organization that would, on behalf of the
government, adequately manage all government interests in the Nigerian oil industry.
In addition to its exploration activities, the Corporation was given powers and
operational interests in refining, petrochemicals and Products transportation as well as
marketing.
Between 1978 and 1989, NNPC constructed refineries in Warn, Kaduna and Port
Harcourt and took over the 35,000 -barrel Shell Refinery established in Port Harcourt
in 1965.
The Corporation constructed several kilometers of pipelines, pump stations and
depots for distribution of petroleum products throughout the country and pioneered
exploration activities in the Chad Basin around Maiduguri.
In 1982, products retail, which hitherto was firmly in the hands of major multinational oil
companies, was deregulated to accommodate independent (indigenous) marketers.
In 1990, with a view to improving the country's oil and gas reserve base, oil exploration,
which has progressively moved offshore Niger Delta, was further extended into frontier
areas including the deep offshore and the inland basins of Anambra, Benin (Dahomey)
and Benue where acreages were allocated to multinationals after signing a Production
Sharing Contract (PSC) with NNPC.
The same year, a reinvigorated indigenous operator_ship programme was introduced
through the allocation of blocks to indigenous companies, who presently operate on
sole risk basis. Currently, NNPC employs about 11,000 staff nationwide.
Transformation Programme - PROJECT PACE
The Corporation on June 1st, 2004, launched a transformation programme called
PROJECT PACE aimed at positioning and aligning the Corporation for higher
performance. PROJECT PACE is in response to the Federal Government's mandate
to NNPC to achieve an aggressive sustainable growth agenda in the Nigerian oil and
Gas industry. The project was executed in two phases totalling 24 months and was
concluded in 2006.
NNPC Structure
The current NNPC group comprises the Group Managing Director's Office, six
Directorates namely Exploration & Production; Refining & Petrochemicals, Finance &
Accounts; Commercial & Investment; Engineering and Technology and Corporate
Services. A Group Executive Director heads each of the Directorates. NNPC's 10 (ten)
subsidiary companies, two partly owned subsidiaries and some associated
companies manage the upstream and downstream activities of the Corporation.
Also, the National Petroleum Investment Management Services (NAP1MS) in the
Exploration and Production Directorate monitors and supervises government
investments in the Joint Venture, Production Sharing Contracts and other contract
agreements in the upstream sector of the industry. NAPIMS, in addition, markets the
Federation's accruable crude and engages in direct exploration services.
The Corporation hasthefollowing wholly owned subsidiary companies;
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1. Integrated Data Services Limited(lDSL)

2. Kaduna Refining and Petrochemicals Company Limited (KRPC)
3. Port Harcourt Refining and Petrochemicals Company Limited (PHRC)
4. Warri Refining and Petrochemicals Company Limited (WRPC)
5. Nigerian Petroleum Development Company (NPDC)
6. Nigerian Gas Company Limited (NGC)
7. National Engineering and Technical Company (NETCO)
8. Pipelines and Products Marketing Company Limited (PPMC)

Partly Owned Companies:

1. Calson (Bermuda) Limited
2. Hydro_Carbon Services of Nigeria Limited (HYSON)
3. Nikorma
4.NIDA5

National Petroleum Investment

Management Services (NAPIMS
Mission Statement: To enhance the benefits accruing to the Federation from its
investments in the upstream petroleum industry through effective cost control and
supervision of JV and PSC operations, as well as opening up new frontiers.
Office Headquarters: 8-10, Bayo Kuku Road, Ikoyi Lagos
Telephone: (+2341) 7901215, 2719028,7901217
Website:
Operational Offices: 36, Gerald Road, Ikoyi, Lagos
Gas Division: 1B, Adeyemi Lawson, Ikoyi, Lagos
Business Offices: (NIPEX Office): 30, Queen’s Drive, Ikoyi - Lagos
Accomplishments:
1. Manage Federation Investment in the Upstream oil and gas sector
2. Monitor the performance of existing investments 4. Executed a Strategic Alliance with SINOPEC for the development of OMLs 64
3. Promote Local Content and 66.
4. Encourage harmonious working relationship between operators and the host 5. Entered into agreement with Chevron Nigeria Limited for the operation of three
communities. fields: Yorla South, Aroh and Oghareki.
6. Entered into agreement with SPDC for the operation of Egbema, Orogho and
Current Operations- (Mandate): Utapate Fields.
Efficient deployment of resources for low cost operation with a view to yielding Current Operations:
optimum Revenue for Government assets 1. Today, NPDC has a capacity of about 82,000bopd from five fields in three blocks
Actualisation of Government agenda in the operations of JV/PSC assets (three onshore and two in the Continental shelf).
Spearheading introduction of new technology development in the industry and 2. Production is only from Okono/Okpoho Fields in OML 1 99 as land operations
sharing of best practices. have been shut in for 16 months due to vandalism of SPDC export pipeline.

National Aspiration
Eliminate Gas flaring by year 2010
Achieve an accelerated Monetisation and commercialisation of Gas resources
To attain and sustain oil productivity level of 4.5 million barrels per day by 2010
Achieve and maintain reserve base of 40 billion barrels by 2010 and generate as
much revenue from gas as from oil by 2010
Maximise sector value and improve transparency in transactions.
Achieve 70% Local Content by 2010
Carry out major reforms to improve NAPIMS capability to manage Government’s
interest.
National Petroleum Development
Company (NNDC)
Vision Statement: To be Nigeria's Premier Exploration and Production Company
Mission Statement: To profitably operate a petroleum Exploration and Production
business both nationally and internationally using current technology.
Management Structure: Headed by a Board of Directors, a Managing Director and
Four (4) Executive Directors in charge of Operations, Technical Services, Joint Venture
Services and Finance and Accounts.
Office Headquarters: 62, Sapele Road, RM.B. 1262, Benin City, Edo State, Nigeria.
Telephone: 234-52-251907 Fax: 234-52-255498 Website: www.npdc-nigeria.com
Accomplishments:
I. Okono/Okpoho Fields offshore (OML 119) with a reserve base of about 240
million Barrels is currently producing about 70, 000bopd.
2. Commenced a five well drilling campaign in Oredo Fields (OML III) with the
drilling of the first two wells which is now in progress.
3. Embarked on a gas optimization project aimed at maximum utilization of gas
produced from Oredo and Oziengbe Fields.
Nigerian Gas Company Ltd (NGC)
Vision Statement: To be the preferred Gas Company to its present and future
customers
Mission Statement: NGC is committed to adding value to gas and making it an energy
resource of first choice for the benefit of all Nigerians and other stakeholders
Office Headquarters: Odin Road, Ekpan, RM.B. 1288; Warri, Delta State, Nigeria.
E-mail Address/ ngchq@ngc-nnpc.com
Telephone: Manager, Public Affairs Dept: + 23453254262
Operational Offices;
1. Western Operations Department (WOD) , Off Isoko Road, RM.B. 57, Ughelli,
Delta State.
2. Eastern Operations Department (EOD), 49, Moscow Road, RM.B. 5324, Port
Harcourt, Rivers State.
3. Lagos Operations Department (LOD), Egbin, Near Ikorodu, Lagos State.
4. Northern Operations Department (NOD), 76, Yaounde Street, Wuse Zone 6,
Abuja.
Tel: 09-5230770, 5230385
Business Offices
1. Lagos Business Office, 13B, Oju Olobun Close, Off Adeola Odeku Street,
Victoria Island, Lagos. Tel:012610637-9
2. Port Harcourt Business Office, C/O EOD, 49, Moscow Road, PM.B. 5324, Port
Harcourt, Rivers State,
Current Operations:
The NGC currently operates following supply systems:
1. The Aladja Gas Pipeline System which supplies the Delta Steel Company,
Aladja.
2. The Oben_Ajaokuta_Geregu Gas Pipeline System which will form the backbone
of a future Northern Pipeline System, supplies gas to Ajaokuta Steel Company and
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PHCN Geregu Power Plant. f. Detailed Engineering of Part of the topsides Modules for Agbami FPSO _
3. The Sapele Gas Supply System which supplies gas to PHCN power Station Completed
at Ogorede, Sapele. g. Detailed Engineering of part of ExxonMobil's East Area Project Package EPC IA-
4. The Imo River-Aba System for gas supply to the International Glass Completed
Industry Limited PZ, Aba Textile Mills and Aba Equitable Industry. h. Detailed Engineering of ExxonMobil's Erha FPSO EPC I Project _ Completed.
5. The Obigbo North_Afam system caters for PHCN Power Station at Afam. 2. ONSHORE ENGINEERING EXPERIENCE
6. The Alakiri to Onne Gas pipeline system for supply of gas to the National a. FEED for Brass LNG Project -Completed
Fertilizer Company (NAFCON), now NOTORE for fertilizer production. 3. LNG EXPERIENCE
7. The Alakiri-Afam-lkot Abasi system for gas supply to the former Aluminium a. FEED for NLNG Train 7 Condensate Stabilisation Unit - Completed
Smelting Company of Nigeria (ALSCON) Plant now Rusal Industries in Ikot b. Participation in the FEED for OKLNG Project _ Completed
Abasi. c. Detailed Engineering of Condensate Stabilisation Unit of NLNG Train 6 -
8. The Escravos_Lagos Pipeline (ELP), which supplies gas to PHCN's Egbin Completed
Power Plant near Lagos. Subsequent spur lines from the ELP supply the West d. Site Supervision of NLNG Expansion - Completed
African Portland Cement (WAPCO) Plants at Sagamu and Ewekoro, PZ I. Detailed Engineering Design for NLNG Train 6 -Completed
Industries at Ikorodu, City Gate in Ikeja, Lagos, PHCN Delta IV at Ughelli, and 2. Current Operations: NETCO provides the following Services for the Oil &Gas Industry;
Warri Refining and Petrochemical Company, Warri. 1. Feasibility Studies
9. Ibafo-lkeja Gas Supply Pipeline System supplies gas to Ikeja City Gate 2. Conceptual Design
from where Gaslink distributes to the Lagos Industrial Area (LIA). 3. Basic and Detailed Engineering Design
10. Ikeja-llupeju-Apapa Gas Pipeline System supplies gas to greater Lagos 4. Procurement
Industrial Area. 5. Construction Supervision
11. Ajaokuta-Geregu Gas Pipeline System which supplies gas to the Geregu 6. Project Management
Power Plant of PHCN. 7. Quality Assurance and Quality Control
12. Ajaokuta-Obajana Gas Pipeline System which supplies gas to Dangote's 8. Environmental Consulting
Obajana Cement Plant (OCP). Customers/Clients:
Current Customers: 1. NNPC and its subsidiaries
1. Aluminium Smelter Company Limited (ALSCON) which had now been 2. Exxon Mobil
bought over by RUSAL (Russia Aluminium). 3. Chevron Texaco
2. Ajaokuta Steel Company Limited (ASCL) being concesionally managed by 4. SHELL
Global Steel. 5. AMEC
3. Delta Steel Company Limited (DSCL) bought over by Steel Company. 6. KBR
4. Kew Metal Works Limited. 7. NAOC
5. National Fertilizer Company of Nigeria (NAFCON) now NOTORE 8. Saipem
Chemicals. 9. TSKJ Consortium
6. Power Holding Company of Nigeria (PHCN). 10. Techni'p-Coflexip
7. Paterson Zochonis (PZ) 11. NLNG
8. WAPCO 12. Acergy
9. WRPC
10. RVSG Integrated Data Services
11. SNG
12. Gaslink Limited (IDSL)
13. FALCON
14. GASLAND Vision Statement: To become one of the ultimate centres of technical excellence in
15. Obajana Cement Company the provision of Geophysical Petroleum Engineering Services in the world oil industry.
16. Indorama (EPCL) Mission Statement: IDSL markets world class quality Geophysical, Geological and
Petroleum Engineering Services.
Management Structure: Headed by a Board of Directors, a Managing Director and Two
National Engineering & Technical (2) Executive Directors in charge of Operations and Services.
Company Limited (NETCO) Office Headquarters: 36, Ogba Road, PM.B 1003, Oko, Benin City, Edo State.
Contact Address: Tel: 052-253 114,256591 Website: www.nnpc-idsl.com
Vision Statement: To be a world class engineering company Operational Offices: Data Processing Centre, Life Camp, Eleme Petrochemical
Mission Statement: To provide world class engineering services to the oil and gas Complex Eleme Road, Port_Harcourt, Rivers State. Tel.-084-200701
industry Business Offices: Lagos Liaison Office: 2nd Floor-Right Wing, Fore Shore Towers,
Management Structure: Headed by a Board of Directors, a Managing Director, Ikoyi Lagos. Tel.: 012672401
two (2) Executive Directors (Services and Operations) as well as a Company Abuja: Abuja Liaison Office: I st Floor, Block A, Room 16, NNPC Towers, Abuja
Secretary. Accomplishments:
Office Headquarters: Heritage Court, Plot 146B, Ligali Ayorinde Street, RO. 1. Provision of Reservoir Management Services to the Oil and Gas companies in
Box 74173, Victoria Island, Lagos. Nigeria, including Chevron, Exxon-Mobil and Shell. The Company is currently executing
Address (including contact person): Tel: 0 1-2718840-5, Fax: 0 1-2718839 e- over twenty field studies for Chevron, Shell and Exxon_Mobil. Most of the services are
mail: info@netco.com.ng website: www.netco.com.ng done wholly by IDSL and sometimes are executed with alliance partners.
Mrs Jane Ebong 2. Shallow Waters, OBC and Deep Marine Acquisition: Petroleum Geo_Services has an
(Manager, Public Affairs Department) alliance that has been on for almost a decade. They have state_of_the_art vessels that
Tel: + 234-1-2718053, Fax: 0 1-2716041 can tow 6,8, 10, 12, 16 or even 20 streamers. They have acquired over 30,000sq km of
e-mail: jebong@netco.com.ng 3D and 4D data in Nigerian waters. IDSL/PGS can offer optimal operational efficiency
Accomplishments: and economic benefit irrespective of the acquisition technique chosen for a project
1. OFFSHORE ENGINEERING EXPERIENCE (Completed Projects and those
in progress) Current Operations:
Recent Offshore Experience (FEED & DETAILED) Seismic Data Acquisition
a. FEED for Bonga Southwest/Aparo Field development -Completed Seismic Data Processing
b. FEED for QIT Gas Flare Elimination -Completed Reservoir Engineering Services
c. FEED for ExxonMobil's East Area Gas Projects _ Completed
d. FEED for Olokola LNG Gas Supply _In Progress
e. H Block development Project _In Progress
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Port Harcourt Refining Company Pipelines And Products Marketing

Limited (PHRC)
Vision Statement: Will be a world class refining company driven by shared customer
satisfaction, employee empowerment, professionalism and continuous improvement.
Mission Statement: To provide efficient high quality petroleum refining services at
minimum cost to local and foreign customers and to develop and exploit other related
business opportunities.
Office Headquarters: Alesa_Eleme, P O. Box 585, Port Harcourt Tel/Fax:
084_830497, 777851
Telephone: 084_830461,766951
Website: www.npdc_nigeria.com
Accomplishments: I, PHRC produces UNLEADED gasoline that meets
international standard.
Current Operations: PHRC produces the following products:
Liquefied Petroleum Gas (LPG), Kerosene (aviation and domestic), Automotive Gas
Oil (AGO-Diesel), Low Pour Fuel Oil (LPFO) and High Pour Fuel Oil (HPFO).
Warri Refining and Petrochemical
Company Limited (WRPC)
Company Name: Warri Refining and Petrochemical Company Limited
Vision Statement: To be a leader in the petroleum processing business in Africa.
Mission Statement: To efficiently and profitably process crude oil into petroleum
products, manufacture and market petrochemical products, through effective resource
utilization, while exploiting new business opportunities.
Management Structure: Headed by a Managing Director and two Executive Directors
Office Headquarters: Ekpan, Warri
Telephone: 053_250812
Mandate: To process Crude oil into various petroleum products such as LPG, LN, HN,
Kero, AGO, etc.
Quality Policy: Excellence is the foundation of our business and the cornerstone of our
goal of customer satisfaction. It is therefore our policy to:
i. Produce and supply petroleum and petrochemical products in conformity
with national and international standards.
ii. Continually upgrade technology, knowledge and skills for improved productivity and
profitability
iii. Maintain safe and environmentally friendly refining and manufacturing operations
iv. Promote teamwork in all aspects of our business and harmonious relationship with
our host communities.
The Company
Warri Refining and Petrochemical Company Limited was established in 1 978 and
incorporated in November, 1988, with a throughput of 1,000 BPSD and later
debottlenecked to 125,000 BPSD or 17,028 MT/D. WRPC has crude storage capacity
of 270,240m3 (1,700,000 bbls), sufficient for about 14 days operation.
Kaduna Refining And Petrochemicals
Company Limited (KRPC)
Company Limited (PPMC)
Company Name: Pipelines and Products Marketing Company Limited
Vision Statement: To be the dominant supplier of all refined petroleum products to the
existing domestic and growing export markets within the West African sub_region.
Mission Statement: To ensure supply of petroleum products to the domestic market at
low operating costs; market special products competitively in the domestic and
international markets; provide excellent customer service by effectively and efficiently
transporting crude oil to the refineries; and moving petroleum products to the market.
Management Structure: Headed by a Board of Directors, a Managing
Director and Four (4) Executive Directors in charge of Operations, Services,
Commercials and Finance and Accounts.
Office Headquarters: Block C, NNPC Towers, Herbert Macaulay Way, Central
Business District, Abuja, Nigeria
Telephone: 09_20083703,09_2346882 & 09_2348200_19
Operational Offices: The PPMC has five operations area offices viz:
1. PORT HARCOURT; This is in charge of PH Depot, Okrika Jetty, Aba Depot,
Enugu Depot, Makurdi Depot, Calabar Depot and the Bonny Export Terminal. Its
Headquarters is in Port Harcourt.
2. WARRI: This is in charge of Warn Depot, Warn Jetty, Benin Depot, Abudu Pump
Station, Auchi Pump Station, Lokoja Pump Station and Escravos Terminal
(PPMC). Its Headquarters is in Warri.
3. MOSIMI: This is in charge of Mosimi Depot, Atlas Cove Jetty & Depot, Satellite
(Ejigbo, Lagos) Depot, Ibadan Depot, Ore Depot and llorin Depot. Its Headquarters
is in Mosimi.
4. KADUNA: This is in charge of Kaduna Depot, Abaji Pump station, Izom Pump
Station, Minna Depot, Suleja Depot, Sarkin Pawa Pump Station, Zaria Pump
Station, Kano Depot and Gusau Depot. Its Headquarters is in Kaduna,
5. GOMBE; This is in charge of Jos Depot, Gornbe Depot/ Yola Depot, Biu Pump
Station and Maiduguri Depot. Its Headquarters is in Gombe.
Products Pumped:
Premium Motor Spirit (PMS) - Petrol
Automotive Gas Oil (AGO) - Diesel
Household Kerosine (HHD) - Kerosine
Aviation Turbine Kerosine (ATK)
Nigerian Content Division
Company Name: Nigerian Content Division
NNPC's Vision for Nigerian Content Division:
NNPC's "Nigerian Content" vision is to transform the oil and gas industry into the
economic engine for job creation and national growth by developing in_country capacity
and indigenous capabilities. In this way, a greater proportion of the work will be done in
Nigeria with active participation of all sectors of the economy and ultimately Nigeria will
be positioned as the hub for service delivery within the West African sub-region and
beyond.

Company Name: Kaduna Refining and Petrochemicals Compart) Limited
Mission Statement: KRPC is in the business of refining crude oil into high value
petroleum and petrochemical products and also manufacturing packaging products
efficiently.
Management Structure: Headed by a Board of Director, a Managing Director and two
Executive Directors (Services & Operations) and six other Departments.
Contact Address: Km 16, Kaduna Road, RM.B. 2252, Kaduna
Telephone: 062-235104
Current Operations/Mandate: Explore and produce:
Refine crude and make Petrochemicals
Market Crude, Gas and Productions
Transport Crude, Gas and products
Retail petroleum products
Opportunities:
The Company has the only Lubes and Lab Plants in West and Central Africa
The largest manufacturer of high quality tins and steel drums in Nigeria
Potential demand for both conventional and specialized products.
The Thrust of the Nigerian Content Policy
The Nigerian Content Policy seeks to promote a framework that guarantees active
participation of Nigerians in oil and gas activities without compromising standards. The
policy also focuses on the promotion of value addition in Nigeria through the utilization
of local raw materials, products and services in order to stimulate growth of indigenous
capacity. The Federal Government is optimistic that its policy will result in steady,
measurable and sustainable growth of Nigerian Content throughout the oil and gas
Industry.
Contact Address: Suite 925, NNPC Towers, Central Business District, Herbert
Macaulay Way, P.M.B. 1 90, Gorki, Abuja.
Telephone nos.: 09-46081 734; Fax: 4608 1 294
E-mail Address: info-ncd@yahoo.com
Definition: Nigerian Content is the quantum of composite value added or created in the
Nigerian economy through the utilization of Nigerian human and material resources for
the provision of goods and services to the petroleum industry within acceptable quality,
health, safety and environment standards in order to stimulate the development of
indigenous capabilities.
Despite huge investments made by the Federal Government of Nigeria in the oil and
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gas sector of the economy, an average of $10 billion USD per annum, its contribution to
GDP growth has been minimal. This is largely due to low Nigerian Content in the
industry, evident from the over 80% of work value carried out abroad. This has led to a
dearth in jobs, skills development, capacity building / utilization and lack of sustained
national economic development.
To address the situation, the Federal government has set Nigerian Content targets for
the oil and gas industry of 45% by 2007 and 70% by 2010. In addition, presidential
directives have been issued with the aim of domesticating a significant portion of
economic derivatives from the oil and gas industry. To deliver on these directives and
targets, the Nigerian National Petroleum Corporation (NNPC) has put in place a
comprehensive Nigerian Content development strategy currently being rolled out in
the industry.
DIRECTIVES & REGULATIONS
Key Levers for Successful Nigerian Content Implementation
Short-Term directives for the industry
Short_term directives have been issued by the NNPC to all stakeholders in the industry
indicating the scope of work on all E&P projects that must be executed in Nigeria.
These are as follows:
1. FEED and detailed engineering design for all projects is to be domiciled in
Nigeria.
2. Project Management Teams and Procurement Centres for all projects in the
Nigerian Oil and Gas industry must be located in Nigeria.
3. Henceforth, all operators and project promoters must forecast procurement
items required for projects and operational activities and forward the Materials List
to NCD on or before 3 I st January of every year. Also, a Master Procurement Plan
(MPP) for ongoing and approved projects should be submitted to the Nigerian
Content Division of NNPC on or before 3 ("January of every year.
4. Fabrication and integration of all fixed (offshore and onshore) platforms
weighing up to 10,000 Tons are to be carried out in Nigeria. For the fixed platforms
(offshore and onshore) greater than 10,000 Tons, all items in directive 5, pressure
vessels and integration of the topside modules are to be carried out in Nigeria.
5. Henceforth, fabrication of all piles, decks, anchors, buoys, jackets, pipe racks,
bridges, flare booms and storage tanks including all galvanizing works for LNG
and process plants are to be done in Nigeria.
6. Henceforth, all flow_lines and risers must be fixed and must be fabricated in
Nigeria except for special cases to be demonstrated and approved by NCD.
7. Henceforth, assembling, testing and commissioning of all Subsea valves,
Christmas trees, wellheads and system integration tests are to be carried out in
Nigeria.
8'. All FPSO contract packages are to be bided on the basis of carrying out topside
integration in Nigeria. A minimum of 50% of the total tonnage of FPSO topside
modules must be fabricated in Nigeria.
9. All third party services relating to fabrication and construction including but not
limited to NDT, mechanical tests, PWHT as well as certification of welding
procedures and welders must be carried out in Nigeria. Nigerian Institute of
Welding must certify all such tests in collaboration with international accreditation
bodies.
10. All operators and project promoters must ensure that recommendations for
contract awards in respect of all major projects being forwarded to
NNPC/constituted boards of such oil and gas companies for approval must
include evidence of binding agreement by the main contractor with
Nigerian Content Subcontractor(s). Such agreements shall indicate the cost and
detailed scope including total man_hours for engineering, tonnage and man hours
of fabrication and relevant defining parameters for materials to be procured locally
as well as other services.
11. Henceforth, all low voltage Earthing cables of 450/750V grade and Control,
Power, Lighting Cables of 600/ I 000 V grade must be purchased from Nigerian
cable manufacturers.
12. Henceforth, all Line_pipes, sacrificial anodes, Electrical switchgear, paints,
ropes, pigs, heat exchangers and any other locally manufactured material and
equipment must be sourced from in_country manufacturers.
13. All carbon steel pressure vessels shall be fabricated in Nigeria.
14. All seismic data acquisition projects, all seismic data processing projects, all
reservoir management studies and all data management and storage services
are to be carried out in Nigeria.
15. Henceforth, all waste management, onshore and swamp integrated
completions, onshore and swamp well simulations, onshore fluid and mud solids
control, onshore measurement while drilling (MWO), logging while drilling (LWD)
and directional drilling (DD) activities are to be performed by indigenous or
indigenous companies having genuine alliances with multinational companies.
16. Henceforth, coating of all Line_pipes and threading of all oil country tubular
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goods (OCTG) are to be carried out in Nigeria.
17. Henceforth, all concrete barges and concrete floating platforms are to be
fabricated in_country.
18. Henceforth, operation and maintenance of offshore production units, FPSO
and FSO in particular, are to be performed by Nigerian companies.
19. All international codes and standards used in the industry are to be harmonized
to support utilization of locally manufactured products such as paints, cables, steel
pipes, rods, sections, ropes etc and to improve capacity utilization in local
industries. Clauses that create impediments for/exclude participation of local
companies should not be included in any ITT.
20. Operators and project promoters must ensure that recommendations for
contract award for all drilling contracts shall include a binding agreement at
Technical Evaluation stage for the sourcing of Barite and Bentonite from local
manufacturers.
21. Henceforth, all projects and operations in the Oil and Gas industry must
demonstrate strict compliance with provisions in the insurance Act 2003 and
submit a certificate of compliance issued by NAICOM to NCD as part of technical
evaluation requirements for insurance or reinsurance Contracts. In this respect/
NAICOM verified Gross underwriting capacity of Nigerian Registered Insurance
companies must be fully utilized to maximize Nigerian Content before ceding risk
offshore.
22. Henceforth, all projects and operations in the Oil and Gas industry must
demonstrate strict compliance with provisions of the Cabotage Act.
23. All operators and service providers must make provisions for targeted training
and understudy programs to maximize utilization of Nigerian personnel in all areas
of their operations. All operators must therefore submit detailed training plans for
each project and their operations.
IMPLEMENTATION FRAMEWORK
For effective implementation of the Local Content policy, NCD has put in place the
following structures:
a) An organizational framework comprising three departments each headed by a
General Manager or equivalent and reporting to a Group General Manager with
sufficient empowerment to work with industry stakeholders and relevant arms of
government to develop strategies, drive implementation and ensure compliance with
directives by the oil companies;
b) The Nigerian Content Consultative Forum (NCCF): a working committee comprising
eight sectors covering different aspects of the service industry to articulate issues
relating to performance and challenges facing the vendors groups;
c) Nigerian Content Support Fund (NCSF): a funding arrangement co_established
between the major operating companies and the banking industry to provide low
interest loans to deserving Nigerian suppliers of goods and services;
d) The Joint Qualification System (JQS), a databank introduced to facilitate the E&P
contracting process in the oil and gas industry;
e) Capacity Building initiatives established in collaboration with the Petroleum
Technology Development Fund (PTDF) to train Nigerian professionals and technicians
with a view to reducing the shortage of skills and competences required in the industry.
ACCOMPLISHMENTS OF NIGERIAN CONTENT ACTIVITIES:
Within the three (3) years of its establishment, the Nigerian Content Division has made a
mark on the oil and gas industry as well as the economy at large. Perhaps, the most
significant achievement of the division is the level of awareness created in the industry
on the issue of local content and its importance to Government with respect to
Increasing local capacity. Other successes achieved by the initiative include the
following:
Several engineering companies have established presence in the country
compared to the level a few years back such that man-hour domiciled in-country
has increased ten-fold;
Fabrication has increase in tonnage as all facilities below 10,000 tons are sourced
locally;
Threading of linepipes is now being carried out in-country;
Christmas Trees, Wellheads and Valves are now assembled in-country;
About a dozen new manufacturing plants and facilities have been established in-
country within the short period since the commencement of the initiative.
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Hyson (Nigeria Limited In Affiliation development. The overall objective is to maximize Oil and Gas value to the Nigerian
economy. The Division consists of Upstream, Downstream and Properties Investment
With Calson (Bermuda) Limited Departments.
New Businesses Division
Hyson is a joint venture between NNPC and Vitol S.A. Swiss International Crude Oil and The New Businesses Division has been created solely for evaluation of business
Products Trading Company. Hyson/Calson is in business to market Nigeria's excess enquiries from prospective local and international investors. It also evaluates
petroleum products in the West and Central African sub regions and elsewhere. proposals for partnership in new business ventures within and outside Nigeria.
It also imports various petroleum products to augment shortfalls from domestic Retail Services Division
refineries production e.g. PMS, DPK, AGO, LGP, etc. Retail Services Division was set up to enable NNPC take full advantage of the
Contact Address: 3rd Floor of South Atlantic Petroleum Towers 7 Adeola Odeku Street petroleum market liberalization In the country. This led to the development of a network
Victoria Island, Lagos of outlets, which provides NNPC with a channel to retail its own products In a liberalized
Tel: (01) 461 0760_9,2618057,01_2610604 environment on acceptable commercial terms. Also, the Corporation uses the outfit to
Other Offices: Room 024 _ 026, Opposite Refining Cash Office drive industry standards. The success recorded in the few initial NNPC retail outlets in
1st Floor, Old Admin Building the Country inspired the Management to pursue with greater vigour further
Port Harcourt Refining Company (PHRC), developments of Mega stations nationwide. The Division's business snapshots are as
Alesa, Eleme, Port Hacourt, Nigeria follows:
Tel: 084_238683,084_830549,084_830550
Fax: 084_258683,084_830542. 37 mega stations fully operational in all the states of the Federation including
Calson (Bermuda) Limited Abuja
Toddings Building, 10/12 Burnaby St. Hamilton II, Bermuda 12 floating mega stations completed and already deployed
Calson Services (UK) Limited 150 standard stations planned for construction.
6th Floor, Belgrave House 2007 market share of 4 .5%; to increase to 7% by 2009
76 Buckingham Palace Road London On-going efforts to extend service to West African sub-region
SWIW9TQ
Tel: +44 (0)207881 8000 NIKORMA: Transports LNG from Nigeria to various destinations in the world
Fax: +44 (0)207881 8009 NIDAS: Transports crude oil to various destinations around the globe.
Hyson (Nigeria) Limited
(NNPC/VITOL JOINT VENTURE) Research And Development Division
4th Floor, Ceddi Plaza
Plot 264, Tafawa Balewa Way Historical Background
Central Business District, Abuja In the early 1970s, during the construction of Warn Refinery, the then Managing
Tel: (09)4618118 Director of NNPC was invited to France to visit the Institut_Francois du Petrole (IFP),
Fax: (09)46181 19 the parent body of BEICIF At the end of that visit NNPC Management agreed to
establish a Research & Development outfit.
The establishment of NNPC under Decree No. 33 of 1st April! 977 included, as one of
Duke Oil Services (UK) Limited its key functions, the research into and development of technologies towards the
efficient exploitation of oil and gas in Nigeria.
Duke Oil Services (UK) Limited's mission is to launch the NNPC into the international NNPC R&D grew from its very humble beginning of an eight staff department in 1979
trading arena whereby additional profit could be made from crude oil and petroleum into a full division with over one hundred and twenty (120) staff in January, 2008.
products sales in the spot market. The growth of NNPC R&D was structured along a three_stage development program:
Contact Address: Capitol House, 159 Hammersmith Road London W6 8BS The First stage concentrated in the short_run, on the development of the capabilities
Tel: (208) 735 9600, Fax: (208) 748 1015 required for providing world_class laboratory services in the areas of immediate need
E-mail: of the operation/NNPC.
The second stage is to start undertaking, in the short to medium term, specific and well
articulated scientific investigative work targeted at providing solutions to identified
Commercial And Investment technological and operational problems of the operating SBUs.
The third stage which is in the long term, is for NNPC _ R&D to mature to undertake
Directorate scientific developmental work in diverse areas of strategic importance to the
technological development of the Corporation in particular and the country in general.
Division: Commercial and Investment Directorate Currently, the Division is being restructured and reinvigorate to redirect its focus more
Vision Statement: Commercial and Investment Directorate will become the fulcrum of on research activities and to participate actively in the global search for solution in the
the emerging world class NNPC, which anchors the Corporation's investments in Oil, oil and gas industry at national and international arena. This effort culminated in the
Gas, Energy and Properties. issuance of ISO Certification by Standard Organisation of Nigeria (SON) in December,
Mission Statement: To safely and profitably operate in the entire value chain of the oil 2007.
and gas business nationally and internationally using competent and motivated VISION: R&D will be a World Class Petroleum Research Centre driven by innovation
manpower and leading technologies. and quality.
To engage in lucrative non_oil and gas investments. MISSION: R&D carries out research, develops technology and provides services to
Office Address: 7th Floor, Block A, NNPC Towers, Abuja. the oil and gas industry.
Key Roles: Contact Address: 4 _ 9 Moscow Road, P.M.B. 5373, Port Harcourt, Rivers State
Tel: 084_230265; 239502, Fax; 084_237001
Identify good investment opportunities and proposals ISO: 9001:2000
Develop viable investment proposals with other stakeholders R&D, in December 2007, was ISO 900 I :2000 certified by the Standard Organisation of
Form strategic partnership with bonafide co_investors Nigeria.
Use Special Purpose Vehicle (SPY) for project financing STRUCTURE OF R&D
Nurture the project or investment to fruition The Research & Development Division is structured into three departments and
headed by a Group General Manager, GGM. The departments are; R&P E&P and
Investment Division Support Services. These three departments were headed by General Managers.
Investment Division is fully repositioned to provide and develop new vehicles for GGM's OFFICE _ The GGM's office is made up of Collaborative Research, Audit Unit,
diversification of the Corporation's investments portfolio. The Division vigorously Business Development, Planning and Budget, Legal and Public Affairs Unit.
pursues profitable economic ventures In the entire value chain of the oil and Gas R&P: Refining & Petrochemicals is made up of the following Sections;
business, expands the capital market investments, and engages in real estate ANS Analytical Services: This section provides analytical services to oil and gas
industries such as, Water, Chromatographic and spectroscopic analysis; and also
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supports the services of the sister subsidiaries.
ERS: Environmental Research Services: This section carries out services and
research activities in the following areas; Microbiology, Biology, Toxicology and
atmospheric pollution.
P&C: Process and Catalysis: This section carries out process elated services as well
as simulation and CAD related studies
PPRS: Petroleum Products Research & Services: This section carries out Research
and Development activities related to Petroleum Products and Crude oil. The section
undertakes comprehensive crude oil assays, asphilter and also in the areas of
lubrication, fuel enhancement and other product up_grade
REP: Renewable Energy and Power
E&P: Exploration & Production is made up of the following sections:
PER: Petroleum Engineering Research: This section carries out Core analysis. Core
analysis involves the determination of physical parameters of some portions of a
formation at particular depths.
E&R: Exploration Research: This section performs geo_scientific research and
provides Consultancy services for Basic studies and reservoir molding.
SS: Support Services: This Department performs Administrative & Technical Services
to R&D. The department Is made up of Technical Services (TS), General Admin.
Services (GAS), Human Resources (HR), Finance and Accounts (F&A), Materials
Management Services (MMS), and Library Services.
CAPABILITIES:
NNPC, R&D has, over the years, acquired the capabilities and have the capacity to
technologically add value to NNPC and Nigeria's oil and gas sector in the following
areas:
Upstream: In the upstream sector, our services include;
Basin Analysis,
Petroleum Source Rock Evaluation,
Seismic Studies,
Reservoir Simulation,
Formation Evaluation,
Reservoir Characterization,
Bio-stratigraphic studies,
Conservational and special core analysis,
Geochemical and Geophysical studies
PVT Analysis,
Local sourcing of materials for drilling fluids, gravel pack and
other inputs used in exploration and production of crude oil,
Formulation of drilling fluids from local raw materials,
Formation damage studies,
Enhanced oil recovery methods, etc.
Downstream: In the Downstream sector our services include:
Troubleshooting of plants operational problems
Improvements of existing processes and development of new ones,
New products development in fuels,
lubes
Bitumen and petrochemicals,
Natural Gas utilization for the production of solvents and other catalysts
characterization,
Development of refractory from local raw materials,
Environmental protection efforts,
Pre and post environmental impact analysis,
Industrial waste management,
Pollution abatement studies, bioremediation,
Remission problems and its control
Toxicological studies
Catalysis development,
Air monitoring of a vigen industrial area,
Petroleum Products Testing
Total crude assay,
Analytical chemistry, etc.
EXECUTED PROJECTS
Research & Development Division executed the following projects:
Analysis of cores for SPDC, Mobil and NAPIMS,
Sedimentological & Biostatigraphic analyses of Osioka South_2. Well,
Pollution abatement & remediation studies of PHRC, Crude Oil assay for KRPC,
WRPC, PHRC, MOBII, DPR, etcBiostratigraphic Services contract in OML
118 and OPL 219 Offshore of Niger Delta _5 Well'
Atlas Cove Environmental Impact Assessment,
Integrated Basinal Studies for the Chad Basin, etc.
POTENTIAL LABORATORY SERVICES/CONTRACTS
Some of the services rendered include:
Environmental Compliance Monitoring for SPDC,
Provision of Biostratigraphic Services -2005/2007 call-off for SPDC,
High resolution biostratigraphic studies -2005/2006 call-off for ExxonMobil,
Identification and Isolation of Toxic Algae Bloom in the new Calabar and
Bonny Estuary,
Cooling Water System Studies for PHRC,
Environmental Studies Services Contract for SPDC
International Collaborative Initiatives In addition to its in-house research initiatives,
NNPC R&D, has in the past, engaged in a number of collaborative research efforts, with
carefully selected local and international establishments. Key amongst these are:
Ahmadu Bello University under PTDF chair - (development of Zeolits catalysts from
locally sourced clay)
Usman Dan Fodio University- (Cyclo-hexane production from locally sourced
Benzene using locally developed catalyst substrates.)
University of Maiduguri- (Crude Oil Finger printing) an initiative partially
sponsored by
University of Plymouth, UK - UK Govt. under the Gulf of Guinea initiative.)
INTERNATIONAL ALLIANCES
NNPC represents Nigeria in alliances involving International Oil & Gas co_operating
Nations.
The Research & Development Division is aligned with knowledge management and
research studies with:
OPEC - in Crude Oil evaluation studies (Remaining Oil & oil in place)
NOC's - (Malaysia, Brazil) -Alternative fuel Bio_diesel
R&D is steadily growing in Its International outlook with strong local presence.
The Nigeria Oil And Gas Industry:
Looking Towards The Future
Preamble
Nigeria is the world's 7th largest exporter of crude oil and the 7th largest holder of
natural gas reserves. In the African Continent, the country holds the largest reserves in
both oil and gas. It is poised to play a greater role in the global energy market given the
potentials and opportunities that abound in the oil and gas sector.
The Petroleum industry today is the mainstay of Nigerian economy. It is the main source
of foreign exchange earnings (90%) and development finance in the country
accounting for 85% of total government revenue, 28% of Gross Domestic Product
(GDP) and employs a sizeable number of Nigerians.
The planned growth and potentials of the industry creates significant opportunities for
Nigeria and investors.
Current crude oil production is over 2 million barrels per day (mb), while oil reserves and
production capacity are 35.0 billion barrels and 3.0 mbd respectively. Natural gas
reserves have also increased to 187 trillion standard cubic feet. While the sector has
remained the pillar of socio_economic development and growth, it is poised to play an
even greater role in the larger Nigerian economy with current efforts to increase crude
oil reserves, monetize the vast natural gas resources and integrate the power sector
Into the Nation's gas sector in order to expand electricity generation capacity. The
on_going institutional and organizational restructuring, capacity building as well as the
local content development strategy will also accelerate overall national development.
Furthermore, the on_going transformation in the petroleum industry is part of the
Federal Government's overall Reform Agenda to place Nigeria on the path of growth
and sustainable development. These reforms are therefore to revitalize the sector into
becoming a catalyst and engine of growth to the national development. The petroleum
industry is being opened up for private sector investment In order to infuse capital and
technology. Nigeria being the gateway to oil and gas business and with a record of
stability of agreements in sub Sahara Africa is the natural choice of investors in oil and
gas business.
In order to reposition the industry, the Nigerian National petroleum Corporation (NNPC)
is being restructured into a world class National Oil Company to mid_wife the entire
industry. The repositioning strategy runs through the entire spectrum of the industry -
Upstream, Natural Gas and the Downstream.
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Upstream Sector
The national aspirations in the upstream sector include:
a. Growing crude oil reserves to 40 billion barrels and producibility to 4.5 million barrels
per day by year 2010 from 25 billion barrels reserves and produdbility of 2.2 mbd
respectively in 1999.
b. Maximizing the sector's value and
c. Improving Nigerian capacity and local content.
Some of these goals are already being met and are likely to be surpassed.
Strategic Imperatives to achieve the Aspirations
a. Joint Ventures/Production Sharing Contracts (PSC)
The major vehicles of crude oil exploration and production today in the Nigerian oil
industry are through the joint venture arrangement in which NNPC has 57% equity
interests in six operating oil companies and the production sharing agreements. The JV
and PSC companies are being encouraged to increase the tempo of exploration
activities through various attractive incentives.
B. Growing a National E&P Company
To complement the efforts of our Joint Venture partners, the NNPC established the
National Petroleum Development Company (NPDC) as an E&P subsidiary. Our
strategy is to grow NPDC into becoming a world_class E&P company. To this end,
capacity building is being encouraged. Its near term goal is to increase production from
its current 80,000 bid to about 150,000 barrels per day before close of the decade.
c. Marginal Fields Development
In order to increase indigenous participation in the upstream sector, marginal fields
were awarded to competent local entrepreneurs. The marginal field development
strategy is aimed at engaging the pool of high level technically competent Nigerians in
the oil and gas business; providing a spring board for development of indigenous
companies which can overtime venture into operations in the less conventional terrains
leading to greater opportunities for technological transfer and increased employment.
After decades of active exploration and production, Nigeria now boasts of a cadre of
highly trained industry professionals which can be pooled for the benefit of the West
African sub-region. Foreign investors are being encouraged to collaborate with their
Nigerian counterparts so that our objectives in this regard will be achieved.
Natural Gas
A lot of investment opportunities abound in the natural gas sector of the Nigerian
petroleum industry. More attention is now being paid to this vital sector. Government's
aspirations for the gas sector include: creating new industries out of the old oil industry;
capturing economic value and generating as much revenue from gas as from oil by
2010. Others are developing the domestic gas market; and ending gas flaring in 2010.
Remarkable progress has been recorded towards the realization of these objectives. Of
the current annual gas production of about 2,000 Bscf, about 40% is flared. This is a
drastic drop form the 70% proportion flared before the advent of the Administration of
former President Olusegun Obasanjo. The hitherto flared gas is being channeled into
gas powered projects for rapid utilization and monetization with a view to maximizing
value addition to the nation's natural gas resource by 2010.
Domestic gas consumption is expanding as a result of the on_going power sector
reforms while gas export which was non_existent prior to 1999, has received a boost.
34
AND
THE NIGERIAN
Comprehensive and integrated gas utilization Master plan/programmes have been
embarked upon, in which LNG and IPP developments are being given priority.
In deed, in May 2008, Government launched the first Gas Master Plan for the country,
underscoring the Administration of President Umaru Musa Yar'Adua's strong belief that
domestic utilization of gas should attract as much equal attention as gas export
programmes. The increased export earnings from LNG, coupled with adequate
domestic power supply from IPPs, will strongly support and broaden economic
expansion and urbanization, increase the income generating capacity of Nigerians and
lift their general well being. It will further reinforce Government's efforts towards
integrating the Host communities into the mainstream of national development and
growth.
Many gas_based projects are being undertaken in line with Government's aspirations.
They include:
a. Domestic Gas Market Expansion
As a result of various projects that have been established, total gas utilized in the
country increased from about 197 million scf/d in 1999 to about 573 mmscf/d in 2004.
Substantial demand growth is expected in this decade. Consequently, domestic
demand for natural gas is expected to increase to about 1 700mmscf/d by 2010.
Investment opportunities therefore abound in the domestic gas market.
b. Independent Power Plants
Government is encouraging JV and PSC multinational oil companies operating in
Nigeria to embark on IPPs, as part of the Power Sector reform.
The reform Act reviewed the generation, transmission and distribution of electricity in
the country in order to improve its performance. The IPPs will not only boost electricity
supply but also provide necessary infrastructural support for economic growth, and also
guarantee additional revenue to the participating JV/PSC companies. The IPPs will
further strengthen the oil companies' social responsibility in the local economy as well
as protect the environment through environmentally sustainable operations and
industry best practices. The various IPPs are expected to contribute about 3,000 MW to
the national grid by 2007. This strategy will ensure the realization of Government's
Intention to increase the national electricity generation from the current 4,000 MW to
about 10,000 MW by 20 I 0 to enhance economic activities.
c. The Liquefied Natural Gas Project
Since production started from trains I & 2 in 1999, NLNG has been one of the fastest
growing endeavours in the world. Train 3 was commissioned In November 2002 while
Trains 4, 5 and 6 have also been streamed. LNG output is expected to total about 22
metric tons per annum with the streaming of Train 6. In addition, the Brass LNG with 2
trains and an output of 10 mtpa is expected to be on stream in the first quarter of 2009
while the Olokola (OK) LNG which is a 4 train plant with an output of 20mtpa will have
the first 2 trains commissioned in 2009/2010.
d. The West African Gas Pipeline
The Final Investment Decision of the West African Gas Pipeline was signed on 16th
December, 2004. The initial capacity utilization of the pipeline
which is 200 mmcf/d is expected to increase to about 460 mmcf/d by 2026. This project
which is of strategic importance is expected to foster cooperation and economic
development in the subregion in the spirit of the New Partnership for African
Development (NEPAD),
e. The Iran Saharan Gas Pipeline
A Iran Saharan gas pipeline running from Nigeria to Algeria is under consideration. The
objective is to make Nigerian piped gas available to Europe. The technical and
commercial viability of this project is however being studied through a feasibility study
being undertaken by a consultant on behalf of NNPC and Sonatrach. In deeds, in a
recent meeting between governments of Nigeria and Algeria in Abuja, Niger Republic
was admitted as a stakeholder in the project.
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opportunities in collaboration with present and prospective investors and operators

f. Gas to Liquids & Natural Gas Liquids
who possess the requisite capital, managerial expertise and technical know_how.
These include the Escarvos Gas to Liquids with a capacity of 34,000 barrels per day,
There are a variety of structural and institutional reforms being pursued in the
the Escravos Natural Gas Liquids 1, 2 and 3 as well as the Mobil Natural Gas Liquids I &
Nigerian oil and gas sector to ensure a competitive and attractive environment for
2.
both external and local investors. These include the downstream gas policy which is
In total, on_going gas transmission programmes would entail commercialization of
about to be passed into law, the gas fiscal regimes, the NNPC transformation, local
about 14,750 mmscf/d of gas by 201 1 (80% for LNG), However, about $2.5 billion will
capacity development to mention but a few. This innovation presents significant
be required annually in stable investments (upstream and LNG plants) to capture
opportunities for both local and foreign entrepreneurs.
opportunities in gas and power by 2010. The private sector therefore has a critical role
The immediate past Administration and the current one, have done a lot to revitalize
to play in the realization of these and other projects.
the oil and gas industry after a period of decline. Policy initiatives have improved the
With these developments in the gas sector as well as the transformation in the
business climate resulting in increase in the level of investment in the country. This
upstream, it is believed that the energy sector driven initiatives could make up to 60%
has led to rapid growth of oil and gas reserves as well as increase in the number of
contribution towards doubling of the nation's GDP over the next 10 years.
gas projects.
Downstream Sector
In addition, the opening up of both the upstream and downstream sectors has led to
Downstream assets in the country include four refineries with a combined installed
increased participation of Nigerians as well as building indigenous capacity in the
capacity of 445,000b/d, over 5,000 km products pipelines and 21 storage depots
industry. New industries have been created, boosting industrial growth and creating
spread across the country. Others include 9 LPG depots and the numerous retail
employment opportunities and avenues for acquisition of modern technology, and
stations all over the country.
increasing business and contracting opportunities.
Government is putting machineries in place to liberalize the downstream sector of the
Private sector participation is however necessary to achieve the transformation
petroleum industry to increase private sector participation. To this end, establishment
envisaged in the oil and gas industry to expand the economic base of the country. To
of private refineries in the country is welcome.
this end, the Government is leaving no stone unturned in order to create conducive
business environment.
Conclusion Already, the economy is being liberalized and there are bold and committed attempts
to expand basic infrastructure to meet the emerging growth in the business sector.
In summary, the Nigerian economy in general and the oil and gas industry in particular
Apart from attractive fiscal terms, export processing zones have been created to
are being rapidly transformed for greater efficiency and sustainable growth. This
export goods and services manufactured or produced within the zones. In addition,
entails, among other things, market reforms, diversification of the revenue base,
transparency and due process are now the hallmark of Nigeria's industry.
monetization of the vast natural gas resources and encouragement of E&P operations
The Nigerian Oil and Gas industry therefore stands out in Africa as a place of
in new inland basins, deep offshore and the Gulf of Guinea. Thus, the future portends
opportunities where all genuine investors should be.
enormous growth and business opportunities. NNPC is poised to exploit these

Oscarline ONWUEMENYI
P erhaps in a bid to avoid
the mistakes of the past,
the Minister of state for
power, Arc. Nuhu Somo Wya has
stated that the present
administration of Acting
President Goodluck Jonathan
would not declare an emergency
for the power sector, even though
it was committed to a complete
rehabilitation of the sector.
Wya, who made the disclosure
in an interview with
correspondents in Abuja after
resuming work, noted that the
ministry would do more of
project monitoring and
evaluation, rather that sitting
down in meetings.
He further warned that “no
director will be found sitting in
the air-conditioned office. The
electricity cannot be generated in
the office, it can only be
generated from the power
plants.”
According to him, “There is no
declaration of state of emergency,
but we are working in an
emergency manner. We are
getting all the stakeholders
involved to participate in this
committee because power is a
No quick fixes for
power sector —FG
chain of many stakeholders, from
the fuel to the generation to the
transmission, to distribution,
involved a lot of people.”
The minister of state explained
that the immediate objective of
government “is to improve the
power supply to the generality of
Nigerians, get sufficient gas,
reinforce our transmission and
distribution networks and ensure
that whatever has been put on
ground is improved and
sustained, to create an enabling
environment for the private
sector to come in and invest, to
make the power sector a very
conducive environment for both
present and new participants.
“We are going to explore in the
Power
medium term other sources of
energy. We have many dams that
had been constructed by the water
resources; they have huge hydro
electric potential. We are going to
tap into those resources so that we
can give Nigerians more
electricity delivered to the point of
consumption,” he added.
He noted that, “We are pleased
that the ministry is being
supervised directly by the Acting
President. The cheering news is
that the Acting President has a
passion for power. He is much
concerned about the development
of this nation and without power,
we cannot develop.”
Wya described Jonathan as an
ardent supporter of the power
sector, adding that he has been
leading the sector particularly
through the National Independent
Power Project.
“He will do everything humanly
possible to see that we unravel the
mystery surrounding the powers
sector. He is an ardent supporter
of the sector. He has also been
working tirelessly to achieve the
mandate of the ministry.
“This is the reaping point for us
because we have planted, we
have watered and tendered the
plant and it is now reaping time.
We shall achieve a magnificent
improvement in power in the
shortest possible time,” he added.
The Minister of state stressed
that the powers sector needs
36
Carpenter’s tools
reform similar to what happened
in the telecommunication sector,
noting that engineers and
technicians in the sector should
not be afraid of reform.
He said, “Engineers and
technical people should not get
afraid as all of us will find
relevance within whatever
comes out from the reform.
Please embrace this all important
aspect of the power sector
transformation. Reform does not
mean sacking people, it only
changing means of doing things,
doing things more efficiently.
“There should be proper
accountability and rule of law in
whatever we do. We must try to
pass the message down to the
junior ones particularly the
unions to embrace this new lease
of life that the acting president is
giving to the power sector. We
must work with him to move the
country move.
He noted that for the ministry to
be directly headed by the Acting
President was a sure sign that it
was no longer business as usual,
adding that the aim of
government is to achieve
significant improvement in
power in the shortest possible
time.
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 Power 38

Private investment key to reviving

Oscarline ONWUEMENYI

T he parlous state of the

Nigerian power sector

Nigeria's power sector

received a shot in the arm
with the recent issuance of a $100
million grant by the World Bank
to guarantee private investment
within the sector, under the
Commercial Reorientation of the
Electricity Sector Toolkit
(CREST) initiative of the bank.
According to the World Bank
Country representative, Mr.
Onno Ruhl, who commented on
financing challenges in the power
sector, the electricity supply
industry is a capital intensive
industry and so adequate cash
flows are critical to recovering
costs and returns on investment.
Experience from other countries
has also shown that transferring
assets to private hands cannot by
itself bring about investments in
collections needed to make
investments commercially
viable. For private participation
to succeed therefore, all
stakeholders need to reach a
consensus about the tariff regime
that should be introduced and
about the enforcement of
collections, including
disconnection for non-payment.
Unlike the telecommunications
industry, non-payment by
customers is a problem that
investors cannot fix without
government's commitment to
payment enforcement, and so this
should be given priority by the
regulatory commission in the
new dispensation. Given Nigeria
's volatile investment climate and
the capital intensity of
investments in the power sector,
we can expect investors to want
some level of guarantee from the
government or multilateral
agency to protect their
Naira notes
investments and cover their risks.
This guarantee may be in form of
generation concessions or some
security to cover the risks of non-
payment. lay emphasis on transmission and as a result of the the epileptic state take part in power generation,
Many experts on the sector have distribution. “It is not enough to of the nation's power sector. distribution and supply to
noted that while it is the Federal focus on building generation
Government's desire to reduce its
World Bank has plants, transmission is important
“Electricity crisis is the most customers,” noted. Dimitriyev
important infrastructure explained that the project also
funding of power sector projects, been helping the too. It is a long-term issue that bottleneck in Nigeria today. It is targets investment in an area of
private investors should be given Nigeria has to look at, there is not
a level of comfort via the
Nigerian enough investment over time, and
the main driver of Nigeria 's high power infrastructure, seen as
indirect cost,” he said. Dimitriyev unlikely to attract private sector
provision of guarantees and other Government's the sector has reached a stage further stressed that unreliability investment in the near term, but is
forms of protection from where it can not improve unless
investment losses. This funding
program of power there is a conscientious effort to
of electricity costs an average 10 a critical part of the power supply
percent of sales per year to a system.
does not have to come from the sector reform and attract private investment,” he typical Nigerian firm. “All types The issuance of 29 private
coffers of the government as said.
international organisations like
privatization Beyond the issue of low
of firms experience power outages licences to independent power
and 85 percent of them own producers by the Nigerian
the World Bank, IMF and the through a project investment in the sector over generators, this is higher than any Electricity Regulatory
UNDP can provide guarantee time, he said the government must
funding. It is therefore imperative
approved in July, ensure that appropriate tariff was
of Nigeria 's comparator Commission (NERC) in 2008 had
countries,” he said. provoked mixed reactions. But
that such agencies are carried 2001, called the collected from electricity He pointed out that World Bank with its potential to boost
along as the country proceeds consumers. He said the tariff been
with the reform programmes.
Transmission collected did not cover the cost of
has been helping the Nigerian electricity production from the
Government's program of power present 3400 megawatts to a
I n a n i n t e r v i e w, R u h l Development producing electricity, thus sector reform and privatization targeted 10,000 megawatts by the
emphasised the need for proper making it difficult, if not
financing of the sector to be
Project impossible, to carry out regular
through a project approved in end of 2011, many observers have
J u l y, 2 0 0 1 , c a l l e d t h e lauded it as a pragmatic approach.
streamlined to give investors maintenance in the sector. Transmission Development However, there are hints that the
enough confidence in the sector. The World Bank's Senior Private Project. “The bank has supported potential may remain unfulfilled.
In addition to such guarantees, he to protect investors' interests is Sector Specialist, Mr. Steven two main goals of its Country The Ministry of Power,
said, other measures should be critical. A key priority for most Dimitriyev, had in a recent press Strategy for Nigeria privatization however, has been unrelenting in
taken to send the right message to foreign investors will be the conference attributed the high and improved infrastructure. For depicting the nation's electricity
investors on the viability of nature of regulations that clearly cost of investment in Nigeria to the power sector, an efficient sector as a goldmine waiting for
investing in Nigeria 's electricity define and allow exit for electricity crisis, noting that transmission network, along with prospectors. During a recent visit
industry. Beyond persuading investors and infrastructure. private sector involvement holds a fully function control system
investors about the huge returns In addition to focusing on the key to the rehabilitation of the were seen as necessary to
that can be reaped, adequate power generation Mr. Onno sector. According to him, Nigeria CONTINUES ON PAGE 39
encourage the private sector to
information on available policies Ruhl, said the country should 's economic growth was stunted
 Power
Private investment key to reviving Nigeria's power sector
CONTINUED FROM PAGE 38
by a delegation from the
American power house, General
Electric (GE) to Abuja, the
former Minister of Power, Dr.
Rilwan Babalola, noted that the
deregulation of the sector from a
monopoly to a more competitive
market environment, will make
it appealing to players with the
financial and technical
capabilities. But
producers already
involved in the project have
pointed at shortcomings that
require urgent fixing in order to
ensure that private participation
in electricity generation and
distribution becomes more
viable than it presently is.
The Chairman, Independent
Power Producers Association of
Nigeria (IPPAN), Prof. Barth
Nnaji, had in a recent interview
listed some shortcomings faced
by power producers in the
country to include access to
bank credit, signing of
the Power Purchase
Agreement and the
perennially
inadequate gas
supply as some of
the shortcomings.
The impediments
have so far
contributed in
one way or
another to
frustrate
investors in
Independent
Power Plants (IPPs).
Even as the NERC has
invited private
participation, touting the
attractive power market in
Nigeria with an un-met demand
in excess of 20,000 megawatts,
the generation and distribution
ends of the business remains
difficult to access.
In order to promote
competition and private sector
participation, the ministry which
established NERC vowed that
the commission had put in place
a simplified application process
and market entry that allows for
prudent cost recovery and
reasonable margins, using a
model of Power Purchase
Agreement. But contrary to this
promise, a major problem being
experienced by producers is the
difficulty in signing their Power
Purchase Agreements. Nnaji had
claimed that in order to build a
power plant, getting the required
financial backing by banks
remains almost impossible,
except the banks are assured of
being able to recoup their funds
when the electricity is sold.
“Selling electricity will have to
be a credible up taker and the
credible up taker will be the one
to sign the Power Purchase
Agreement,” said Nnaji. But the
question of who will sign the
agreement remains pertinent.
There is yet another question: is
the agreement bankable such that
the
b a n k
concerned can use
it to give credit?
Apart from battling with the
constraints of signing the Power
Purchase Agreement (PPA),
perhaps the most daunting
challenge remains the issue of
gas. Although the country has
gas in abundance, it does not get
to the areas where a lot of the
IPPs are setting up. In reality, all
of the associated gases in the
country have not actually been
harnessed and are still being
flared, while the non-associated
gas field remains undeveloped.
Most of the private sector
operators given the go-ahead to
generate electricity will have to
contend with these realities with
perhaps the exception of the
Notore Power Limited, recently
allowed to generate 50
megawatts. The company will
enjoy the use of the facilities of
the defunct National Fertiliser
Company of Nigeria
(NAFCON), Onne, Rivers State .
It has the mandate to supply
power to Notore Chemical
Industries Limited (formerly
NAFCON) and also the National
Grid. What stands the Notore
Power Plant apart is that it is
management process,
maintaining consistency in policy
and the political will to honour
joint venture agreements. The
issue of straightening out the legal
infrastructure must be sorted out,
according to Independent
Producers, to avoid consequent
untidy developments such as the
one concerning the state of the
Enron, (now AES) Power Project
in Lagos State, which has
prompted the state government to
file a petition against the partners
in the projectPower
Holding
Company
o f
Nigeria
, busine
PHC
N, Ikeja
Electricity
Distribution
Company, Eko Electricity
Distribution Company and the
Transmission Company of
What stands the Nigeria plc.
Despite series of challenges, the
Notore Power Federal government remains
optimistic that with the 29
Plant apart is licences issued, the country
would have mustered an
that it is about additional 10,271MW in the grid
the only one with when all the IPPs become fully
operational. This target is to raise
the plant and generation up to 6000MW in two
years (counting from 2008), take
gas readily it to 10,000MW by 2011 and
18,000MW in the unspecified,
available and is near future.
The new Minister of State for
therefore ready Power, Arch. Nuhu Somo Wya,
to hit the ground stated last week that the ministry
is aware of the plight of the
running licensees, but promised that the
commission and other relevant
agencies will fight in their corner.
“In addition, we have embarked
on consultations with
about the only one with the plant
stakeholders on the trading
and gas readily available and is
arrangements and as soon as this
therefore ready to hit the ground
is concluded, licenses will be
running.
certain on who they will be
Also yet to be properly spelt out
negotiating power agreements
is the issue of legal infrastructure
with,” he said. While the
in the form of government
declaration may appear to have
interference in the human
39
cleared the ground, the
concerned Independent Power
Producers are awaiting the
impact of these words with bated
breath, particularly as regards
sourcing for credit.
Currently, Nigeria has 14
generating plants, three hydro
and 11 thermal with an installed
capacity of 7876 megawatts. But
available capacity is about
4361MW, with an output of just
over 3000MW. The biggest plant
is Egbin, with an installed
capacity of 1320MW. Most of the
plants have very low availability
partly because of limitation in gas
supply, but mostly due to their
dilapidated condition.
In order to engage the private
sector effectively in power
ss,
the
Minist
er said
P o w e r
P u r c h a s e
Agreement (PPA) and
Gas Supply Purchase
Agreement (GSPA) as well as
Gas Transportation Agreement
(GTA) have been drafted in line
with international standard to
facilitate private sector
involvement in the industry.
According to Wya, these
documents are vital as bankable
instruments that help would-be
investors to obtain loan or to
access other financial sources
that would aid investment in the
power sector.
He pointed out that while all
these enabling conditions are
being addressed the issue of
qualified manpower that will
deliver the targets as well as gas
not only to power some of the idle
power plants but the ones in plan
are equally receiving greater
attention from the Ministry.
Since Nigeria is generally
perceived as an unpredictable
investment location, we can expect
that in the first few years, investors
would be more comfortable if they
can quickly exit. The government
must therefore send the right
signals to investors. For instance,
delays in government approvals
and licensing have an opportunity
cost for international investors
responding to concession auctions
and solicitation for bids.
The government needs to be
aware that international investors
are less likely than local investors
to continue to put up with the costs
of administrative inefficiency.

NETCo moves to
operate offshore
Nigeria
N ational Engineering
a n d Te c h n i c a l
Company (NETCo) is
Nigeria's first national
engineering company and is
wholly owned by the state-run
NNPC, with the sole aim of
developing in-country oil and gas
engineering capability. Yemie
Adeoye of Sweetcrude cornered
Mr. Kenneth Ejuoneatse, the
Managing Director of the
company on the sidelines of the
Offshore West Africa conference
in Ghana, and he noted that the
company intends to partner with
the Ghanaian government in
bringing about state of the art
engineering and oil exploratory
facilities in the former Gold
Coast. He also disclosed that
Nigerian companies are not in
Ghana to take over their oil
industry but to partner with them
and ensure that they benefit from
our experience and as well learn
from our mistakes.
Excerpts:
Most Nigerian engineers
trained by NETCo are working
in some new engineering
companies, could this be
Financing
because they're paid better?
Not really because they are paid
better. You know some of them
just went there and some are
overseas. It is a pride to NETCo
and Nigeria that we have trained a
lot of Engineers in the years, that's
the result of the federal
government's local content. They
are working for other companies
in Nigeria as well, even the IOC's.
You use to have a partnership
with HL what's the situation
now?
They left us long time ago, over
30years now, we are working on
our own, we have grown and we
are building engineering
knowledge. It is not meant for the
type of country or race, but if you
are given the opportunity. We
were given an opportunity and we
are utilizing it. so, basically, all the
engineering studies, detail
engineering, project
management, we can do it in-
house. We are moving further and
we want to go further into
procurement and into
construction. That's where the
money is in the industry.
What is the difference between
what you are doing now and the
procurement process?
What we are doing now is
design. When you design, you go
into detailed design from that you
do material check off, which
enables you to buy, and then you
have enough materials to buy. The
next thing after that design, we go
into procurement which is you go
in to buying of Vessels, pipes,
compressors and so on, there are
people who are manufacturing
those things. In Nigeria now we
have only few companies
involved in fabrication, that is,
only Dorman Long and
Nigerdock.
No other company does this,
some of them have to be imported
We are moving
further and we
want to go
further into
procurement and
into construction.
That's where the
money is in the
industry
from overseas, that is the area we
want to go into now. After buying
those materials, you have to do
constructions as if you are
building a house, that means you
have to buy the material, and this
is what is applicable in the
petroleum industries but there are
some group of companies who go
through the whole hog, from
engineering, procurement, and
construction. But now we are
going into procurement and
construction but ours will be in a
big way. We want to start with
small jobs, small engineering
jobs, as we gain experience, we
go into bigger ones like Hi-tech.
you know Hi-tech is a big
construction company.
So what are you doing to build
the capacity of your staff? Are
you also talking about
partnering with other foreign
40
companies?
There are so many companies
here in Nigeria we want to partner
with. Some of them have
approached us. We have an
advantage because they know too
that this is a government
subsidiary that is commercially
driven, so they know our worth,
the IOC's are full of credits for us.
So we want to partner with a lot of
companies both in procurement
and construction, I don't want to
mention any of these companies
in bidding for any construction
job or any procurement job.
That's how you learn. You learn
by partnering. Inexperienced
people over a couple of years,
becomes more efficient and are
able to handle their own stuffs.
But are you not deviating from
the original concept?
No! If you look at when NETCO
was established, it was very clear
that we will be involved in the
whole gamut of EPC contracts,
but you cannot put that at a go, it
is impossible, you have to build it
little by little. We are so good in
engineering so we want to go into
procurement after that,
construction. We are involved in
Bonga, we are involved in
Agbami, these are big FPSO's,
LNG we are also involved in
Egina and it is a big FPSO. They
have just opened the pre-qual
now for the EPC. So, we are
discussing with other partners
who were involved in that pre-
qualification too for the list of
procurement.
I know that Uganda came, the
Uganda petroleum ministry
sent a delegation long time ago
and it came to NETCO. What's
the outcome of that?
Nigeria has a lot of experience.
The Ghanaian Ambassador came
and we have not followed up, we
have to follow up. We need to
even go and visit them in their
country and sell ourselves to
them, not only him but to his staff.
Because those are the people who
engineered this things. This is the
reason we came here for this
exhibition. We wanted to sell
ourselves to the Ghanaian
government. This afternoon we
are having a meeting with the
minister of energy and tomorrow
we are going to see the MD of
Ghana National Petroleum
Company (GNPC), The Man
knew all what happened to
Nigeria. We are meeting them so
that they can have a sort of
association with their own
engineering companies so that all
the mistakes we had in Nigeria
won't happen here. Basically, left
to the international oil
companies, they are ready to
build the engineering overseas
but the local content of the federal
government has helped. All the
basic Engineering must be done
in house and it can start here in
Ghana immediately. There is no
need awarding contracts to
CONTINUES ON PAGE 43
SweetCrude 41
 Finance 42

Oscarline ONWUEMENYI

T he nation's quest for

enhanced accountability
in public service, good
corporate governance and
transparency in remittances to
government coffers no doubt
suffered a setback with the
release of the Nigeria Extractive
I n d u s t r i e s Tr a n s p a r e n c y
Initiative (NEITI) Report on the
1999-2005 Audits of the
extractive industries, which
indicted the Nigerian National
Petroleum Corporation (NNPC),
the Niger Delta Development
Commission (NDDC) and the
Central Bank of Nigeria (CBN).
Speaking during the a High level
Roundtable on issues arising
from the Audit Report in Abuja,
the Chairman of the National
Stakeholders Working Group of
NEITI, Professor Asisi Asobie
noted that the audit of the
Nigerian oil and gas industry
conducted by the agency has
“thrown up all sorts of issues
relating to both immediate and
long-term viability of the
industry,” adding that these
issues mainly deal with both the
structure and governance of this
all important sector of our
national economy.
Among these, he added, are the
inefficiencies that characterized
the production, marketing and
accounting for government's
equity oil, the challenges that
confront the assessment and
collection of petroleum profit
tax, and various other associated
problems relating to the optimal
management of the country's
petroleum resources.
NEITI is the national version of
the Extractive Industries Magnifying glass
Transparency Initiative (EITI), a
global movement aimed at
ensuring that extractive resources
aid sustainable development. It is
mandated by law to promote
transparency and accountability
in the management of Nigeria's
oil, gas and mining revenues.
NEITI report:
Further speaking on the report ,
the Executive Secretary of
NEITI, Mr. Haruna Yunusa
Sa'eed, lamented that the nation's
The need for transparency & accountability
oil, gas and mining sector was
bedeviled by poor accountability
and transparency issues, adding
that billions of naira is lost in the
in Nigeria's oil & gas sector
nation's oil and gas industry due
to lack of transparency and poor
monitoring of oil and gas of wrong price to determine such unremitted revenue from the of the upstream operations with
production in the country. He liabilities. There are equally NNPC. r e g a r d s t o J o i n t Ve n t u r e
noted that in the case of Nigerian issues that we are working with The NNPC management has Operations and acreage
National Petroleum Corporation both the Federal Inland Revenue argued in the past that the passage management. Pointing
(NNPC), “there are issues Service (FIRS) and the There are issues of the Petroleum Industry Bill specifically to Section 3,
regarding withholding revenue Department of Petroleum (PIB) currently in the National subsection (1) of the bill,
and payments for lifting being a Resources (DPR) to determine regarding Assembly would address the Barkindo states that, “The
buyer of Nigeria's crude oil.” fundamental challenges relating
Sa'eed added that, “The NNPC
the net amounts payable by these
companies.”
withholding to the structure and governance
management and allocation of
petroleum resources and their
was expected to pay fully for
what they lifted. That payment
Sa'eed pointed out that although
the agency was yet to receive any
revenue and of the Nigerian oil and gas
industry. According to the Group
derivatives in Nigeria shall be
conducted strictly in accordance
was short and at the last count, it money from the NNPC, payments for Managing Director of the NNPC, with the principles of good
was N654 billion based on the considering the Corporation's D r. M o h a m m e d S a n u s i governance, transparency and
2005 audit. There was also the claim that part of the money was lifting being a Barkindo, “at the core of the sustainable development of
issue of poor accounting systems deployed as subsidy for philosophy behind the PIB is the Nigeria and at all times be
and funds not well accounted for. petroleum products, efforts are buyer of Nigeria's issue of greater transparency, conducted to maximize the
“We are talking about $243 openness and good governance.”
million under-calculated in terms
still on to make such recovery. He
added that the agency was still
crude oil According to him, the bill was
economic value and benefits to
the Nigerian people.”
of royalties; about $340 billion in facilitating remediation efforts designed to significantly address
terms of petroleum profit tax aimed at getting to the root of the the concerns raised by the NEITI
underpayment based on the use outstanding N654 billion report, especially in the processes CONTINUES ON PAGE 43
 Finance 43

NETCo moves to operate offshore Nigeria

CONTINUED FROM PAGE 40

overseas companies to go and do

the engineering works for them. if
we have an association with them,
the Ghanian government forming
a kind of an engineering
government just like NETCo. We
can go ahead to assist them but the
benefit will go to NETCo and the
Ghanaian government.
Following the much proposed
reforms in the sector, what is
NETCo doing in terms of
capacity building for staff?
We are the only subsidiary of
NNPC; we are the only company
that is commercially driven
amongst all NNPC subsidiaries.
We don't get money from the
NNPC. It is from the engineering
works that we do that we pay our
staff. They pay us and we use the
money. We like every other
organisation, we are autonomous
and government doesn't dictate to
us. We bid and if we win the
contract, we will get the job. As
regards the reforms, it would help
the NNPC, by then the PIB will be
approved by the national
assembly then NNPC will be a
commercially driven company
then NNPC will run like a
commercial entity like
ExxonMobil, or like Chevron. so
basically, we are already in that
line. They are only assisting us to
do better. That is what I see.
Government doesn't dictate to us,
we have our own finances and we
bid for jobs we think that we can
win and that's how we go about
our jobs.
How much dividend have you Oil drill
paid to NNPC?
When a company starts, it runs
into a lot of expenditures, we have profit and dividends. Of course If there is no money in some times it last for 6 months or coming out from school, you cant
not been able to declare any NETCO is owned hundred engineering, you cannot break even 9 months. Up till now, the just come out and say you want to
dividend yet because in percent by the government, the even. one we did, they just did go into design. We have to train
Engineering, the money that NNPC. we have broken even. the What are you doing in the area clarification few weeks ago. So it you. You have to stay with us for a
comes in is very little, but we have profit starts to come in when you of building capacity? takes a long time. But we are period of one year, we build you
broken even, we have always are doing procurement for the We are having very major having MoU's with various into knowing some of the
been able to meet our costs, and as IOC's and constructions that is partners and MOU with companies, procurement precautions and how we do the
we go into procurement and where the money is. if you are not companies and we are bidding. companies, EPC companies. If job. if you are good, then we can
construction that is when the doing engineering, That is why You know the bidding process is the jobs come up, then we will start to pay you on the experience
money starts to come in, that is all the big companies go into the long, and that is one of the highest work with them. Like I said, it is a you have gain and that is what we
where we'll be able to declare whole gamut the EPC contracts. benefits in the PIB. When you bid, learning place, just like graduate want to do.

NEITI report: The need for transparency & accountability in Nigeria's

CONTINUED FROM PAGE 42
He adds that even more
specifically, Section 5 of the
Bill states that in achieving
their functions and objectives
under the Act, the institutions
and the National Oil Company
shall be bound by the
principles of the Nigerian
Extractive Industries
Transparency Initiative Act of
2007.
Barkindo further stressed that
the on-going NNPC
Transformation includes the
consolidation of the
Corporation's trading outfits
and capacity building for
direct marketing by NNPC of
the Federation's cargoes. He
added that, “The PIB will
result in the creation of
Incorporated Joint Venture
Companies with the direct
oil & gas sector
participation of NNPC in all Joint
Venture operations. It will also
enable the consolidation and
enhanced clarity of Nigeria's
fiscal provisions and minimize
the differences in interpretation.”
The NNPC helmsman conceded
that the passage of the PIB would
only be the beginning of a
difficult and protracted match
towards transforming the
Nigerian oil and gas industry,
noting that the more the passage
of the bill is delayed, the more the
challenges inherent in the
industry would become
entrenched.
Meanwhile, Prof. Asobie has
pointed out that lack of
accountability in the industry was
at the root of the crises in the
Niger Delta, noting that poor
accounting and measurement of
oil and gas production was a
major challenge to the initiative.
He said, “We have been having
problems with knowing exactly
how much is produced, so we
have commissioned a consultant
to help us know the international
best practices with regards to
production accounting. It is so
important because if you do not
determine how much is lost, those
companies that are producing
benefit, and Nigeria is cheated. It
is in the interest of producers that
the status quo is maintained and
that the nation never knows how
much is lost and who is stealing
the product. You know wherever,
there is anarchy, some people take
Cash Safe
advantage of the situation, and the
way Nigeria's oil and gas industry
is structured today has given so
much room for stealing and
corruption to go on.
According to him, there is need,
therefore, to use the latest
electronic technology that can
detect where these pipelines are
sabotaged, and then capture the
images, so that the perpetrators
can be apprehended and made
to face the wrath of the law.
He said, “Oftentimes, the DPR
has complained to us that they
c a n n o t d o i t ( e ff e c t i v e
monitoring and measurement)
that is why we got someone
from abroad to help us identify
these technologies that use
sonic systems and then use
cameras to capture those behind
the theft. We know that there are
bigger personalities behind all
these pipeline sabotage than the
so called militants, so it is
important that we begin to do
things differently to ensure that
a few people do not benefit
from the wealth that belongs to
everyone.”
SweetCrude 44
SweetCrude 45
SweetCrude 46

Challenges before Sada, Nigeria's 15 mines and steel minister
Luka BINNIYAT
I n its15 years as a full fledged
Ministry, the Ministry of
Mines and Steel
Development in March this year
produced its 15th Minister, Arch.
Musa Mohammed Sada.
That means that the average
staying period of a Minister in this
Ministry is just about a year.
At its best, Sada would have to
put in about 1 year and 3 months if
all goes right for him before the
coming of a new government in
April, 2011.
The high turn-over rate of
Ministers in this establishment,
according to watchers of Nigerian
mineral and metal sector, is
largely responsible for the blurred
focus of the mineral and steel
sector, especially as it affects
mining titles, the Ajoakuta Steel
Company Limited (ASCL) and
the Nigerian Iron Ore Compnay
(NIOMCO), Itakpe.
In some instances, we have seen
Ministers of the Ministry who
looked rather dumbfounded with
what role to play, and their sojourn
on the helm of affairs was a
complete waste of public fund and
time though it is generally agreed
that they were never dumb in
getting at the “filthy lucre”. And
when they left, the stakeholders
clicked glasses and hugged in
celebration. Yet, there were a few,
who have forever left their
imprints by their remarkable
positive contributions in the
sectors. And for reasons that are
never rational for watchers of
these sectors, these Minister were
always removed on the verge of
implementing what was
considered as productive plans
for both the mineral and steel
sector. And, of course everyone
wept on their sack.
But, since this is not an attempt
to score past Ministers, it suffice
to add that Arc. Sada would be
saddled with huge challenges. But
they are not insurmountable. The
good news for him is that some of
them have been taken care of
before his coming, as he must
have found out by now.
Challenges before Arch.
Sada:
Mineral sector - Non
issuance of new Mining
licences
So far not less 9,300 licenses
have been processed by the
Mining Cadastre office, but not a
single new license has been issued
in the past one and half years. The
issuance of these licenses is of
serious concern for lots of
investors
The Permanent Secretary of the
Ministry Engr. Sheik Goni in an
exclusive chat with Sweet Crude
last March, said that the
immediate past Minister of the
Solid Mineral
Arch. Musa Mohammed Sada
Ministry (Mrs Diezani Allison-
Madueke, now Minister of
Petroleum Resources) was going
to convene a World Press
Conference on the matter a week
before the sack of the last cabinet.
She was to have announced the
issuance of new mining tittles,
because everything had been
concluded, he had said.
Both prospective small, medium
and big time miners are worried
that non issuance of these titles is
slowing down their momentum
for business as they cannot
approach banks for facilities nor
engaged partnership with foreign
financiers.
Maiatined the status quo -
NMA
Again, the Chairman of Nigerian
Miners Association, Dr. Kola Ojo,
in a telephone chat, told sweet
crude that his Association would
want Arch. Sada to maintain the
status quo. He said that the
Minister should ensure that the
recently approved $80 million
dollars grant by the World Bank
for small and medium scale
miners is not hijacked by Banks
th
sectors
Again the idea of building
capacity for the mineral sector is
of paramount importance. Already
two bills, namely: the National
Metallurgical Training Centre,
Onitsha and Nigerian Institute of
Mining and GeoSciences, Jos,
have been presented to the last
Executive Council of the
Federation for onward
transmission to the National
Assembly. It would now behoves
on Arch. Sada to see that the bills
arrive the National Assembly and
gets a speedy passage. That is only
if he appreciates the fact that the
industry would be in serious
dearth of indigenous skill hands
should mining get the influx of
expected investments in the next
three years.
Push for mining
regulation
Though, and happily too, there is
already a law the Mines and
Mineral Act, 2007 - and a Mining
and Metal policy launched in
2008, the most desirous of them is
still held up by undue bureaucracy.
And that is the Mining Regulation.
Stakeholders believe that without
a clear Mining regulation, most
blue chip mining firms will
continue to be wary of taking risks
to invest in Nigeria. It is therefore
one of his main challenge to see
that Nigerian mining regulation is
out.
The Metal Sector - ASCL
and NIOMCO
The story of these 31 year old
babies that have refused to walk
after injecting in them a total sum
of $13 billion dollars represents
the tragic metaphor of Nigeria.
Rape and dumped by every
Minister in every administration,
the two companies are again
entrusted to another one.
Deliberately superlatively
The Minister designed and built to 93%
would have completion by the Russains at that
time to produce liquid steel for
realised that the Nigeria's leap into
ASCL and industrialisation, the story of
Ajaokuta and Itakpe is the most
NIOMCO staff are apt reason why most people
believe that Nigerian may never
fearless develope.
negotiators. He But, be that as it may, Arch. Sada
has these problems to contend
must court their with. And they are rather urgent.
That status of the Interim
confidence by
Management Committee
avoiding all the (IMC)
After the revocation of the
pitfalls of his concession agreement of the two
predecessor firms from the Indian owned
Global Infrastructure Nigeria
Limited (GINL) in March, 2008,
out of the hands of the Sustainable the Federal Government set up an
Management of Mineral Interim Management Committee
Resources Project office. He said (IMC) made up of presumed
that if the grant is disbursed by experienced Nigerians.
Banks, stiff and rigid conditions The Committee's life span was to
would be set to make it impossible last for a just six months.
for would be beneficiaries. From what Sweet Crude has
Capacity building for the gathered, the IMC seems to have
47
outlived its purpose. Staff of the
two companies says that the IMC
have dumped its responsibilities
and left the day-to-day running of
the companies to the traditional
management of the two
perennially abused firms.
“These men are made up of
b u s in es s men an d s tead y
government jobbers”, said one of
the Staff Union officials who
asked for anonymity,
“Some of them are on other
Boards of several Federal
parastatals and one is even on the
new Presidential Contract
Review Committee”, he said.
“We hardly see them twice a
month”, he said
The new Minister therefore has
to take a firm decision on the
status of IMC and make
recommendations to his boss.
Let Government
patronise ASL workshops
With the completion of the
Technical Audit of ASCL and
NIOMCO by Reprom of Ukraine,
ASCL has another chance to put
some completed sections of the
plant into use. This true based on
the order by the acting President
in March that N450m be
disbursed to ASCL and N200m to
NIOMCO for the two companies
to start operations.
The ASCL has a Machine tool
making workshop that has the
capacity to produce all the
machine parts used by Nigerian
Refineries, Ships, Military
Equipments, and Air planes.
Successive Ministers have never
deemed it proper to lobby
government to mandate all its
establishments that need this
service to patronise ASCL.
Instead, all worn-out heavy
machine parts are procured
abroad for obvious reasons. Arch.
Sada would write his name in gold
if he is able to influence
government to patronise ASCL for
this service.
Enough of conferences and
Seminars on the Steel
Sector
All Arch. Sada need do is to call
for the report of the August 2008
report on the 1st Nigerian Steel
Summit. Every information, ideas
and models for the sector are
brilliantly captured in that summit.
It was attended by the most prolific
experts in the sector within and
without the country.
He would find, most interesting
the investments options available
for ASCL and NIOMCO.
Union and Staff matters
The Minister would have realised
that the ASCL and NIOMCO staff
are fearless negotiators. He must
court their confidence by avoiding
all the pitfalls of his predecessor,
because they have seen them come
and go with all their empty
promises and treacherous deals
that have kept these companies
shut for so long.

Luka BINNIYAT
A BUJA The Project
Coordinator, Sustainable
Management of Mineral
Resources Project (SMMRP) Mr.
Linus Adie has cited a World Bank
study on Nigerian Dimension
Stones (Granite and Marble) sector
as capable of producing 1 million
jobs in a short time, while cutting
the high production cost of tiles in
Nigeria by 100%
Meanwhile the newly appointed
Minister of Mines and Steel
Development, Arch. Musa
Muhammad Sada said the Ministry
would upgrade its website with
very rich materials that would
convince foreign investors to take
the juicy opportunity that the sector
offers.
The Head, Press and Public
Relation Unit of the Ministry, Nr.
Marshall Gundu made this known
in a Pre4ss Statement yesterday.
Adie who spoke on the World
Bank study, made this known in
Abuja last week at parley with
meeting Nigerian Dimension Stone
investors, after which the Nigerian
Dimension Stone Association of
Nigeria was formed.
His words: “We are told that the
stone industry is capable of
providing over one million jobs in
Nigeria. And that is what the project
and the ministry is looking at.
“We are told that Nigeria can be
self-sufficient in marble and granite
products. We are told that in
sharpening the manpower in this
country Nigeria can also be self
sufficient in the required manpower
to drive this industry.
“We are told that because of your
product can cut cost by 100%”, he
said
He lamented that Nigeria Spends
billions of Naira in importing
substandard granite and marble
tiles in Nigeria to the disadvantage
Solid Mineral
Job seekers and solid mineral
Nigerian stone sector to
create 1m jobs —World Bank
of the stone industry here.
“We have far higher quality
products in Nigeria”, he said, “but
the cost of production is so high that
at the end, many cannot afford
them”, he said
He then informed the Association
about the Carrara Marmotetic
Stone Fair in Italy in May this year.
According to him, that Fair is the
best and biggest in the world and
world afford members to meet
investors, financiers and equipment
makers with the view of forging
enduring partnership.
“The expected outcome is that
some of you will be coming back
with investors to help you develop
the industry”, he said.
The stakeholders after
deliberating on the sector agreed
that there was a need to form
themselves into an Association as
one of the means of growing the
industry. An election was then
conducted for protem officer from
whom, the Group President of Rich
Group of companies, Alhaji Kabir
Umar emerged president with Mrs.
Vivian Wya of the Ministry of
Finance as the Vice President.
The Minister on his part enthused
about propelling Nigeria's drive for
investors into the Mineral and
Metal sector of Nigeria via the
Internet when he paid a courtesy
call on the Governor of Kastina
State, Ibrahim Shema yesterday,
according to Gundu.
“Arch. Sada explained that
through this strategy, prospective
investors would have seamless and
fast business transactions with the
Ministry thereby resulting to the
much desired development of the
sector”, reads part of the statement
“The Honourable Minister also
said that the mining and steel sector
should be seen as the hope of
revamping the nations' economy
and industrial development.
“He assured that the Ministry
would put in place the necessary
legislative framework through
collaboration with all stakeholders
for the development of the sector”,
he added
The Minister said that the
artisanal and small-scale miners
will be assisted in their operations
to make meaningful contributions
to the national economy.
According to the Minister, the
aim of the courtesy visit was to
thank the Governor and the people
of Katsina State for nominating
him as a Minister representing the
state.
He assured the government and
the people of Katisna State that he
would not disappoint them in his
appointment.
48
Smiling away
with N5.2 billion
loot
After the termination of the
controversial sales of 80%
shares of the Ajaokuta Steel
Company Limited (ASCL)
and the National Mining Iron
Ore Company (NIOMCO),
Itakpe to an Indian firm in
March 2008, it was revealed
that Global Infrastructure
Nigeria Limited (GINL),
made not less than N5.52
billion from deals related to
ASCL, NIOMCO and Delta
Steel Company Limited
(DSCL) and had not remitted
a kobo as tax or any other
statutory payments to the
Federal Government, the
Magaji Inua panel which
nailed it had revealed.
What has become of this
loot?
MIREMCO:
Death after
birth
It was with much fanfare that
the then Minster of Mines and
Steel Development, Chief
Tu n j i I s h o l a Sharafa
inaugurated a 37-strongman
standing committee charged
with the responsibility of
ensuring that mining in each
State follows environmental
Global Best Practices, among
others.
Chief Ishola who
inaugurated the Committee
known as Mineral Resources
and Environmental
Management Committee
(MIREMCO), said he drew
his power from the Nigerian
Minerals and Mining Act,
2007 section 19.
And the committee members
include Prof. Babs Fafunwa a
former Minister of Education
in the 80s'; Air Vice Marshal,
Ishaya Shekari a former
Military Governor and
Mallam Shehu Mallami a
former Ambassador and 36
others.
Since that hot Thursday
morning, no one has heard of
MIREMCO
SweetCrude 49

Power: NNPC set to boost gas supply
Yemie ADEOYE
F OLLOWING the seeming
interest and commitment
of the Acting President,
Dr Goodluck Jonathan in the
power sector, the new Group
Managing Director of the
Nigerian National Petroleum
Corporation (NNPC) Mallam
Shehu Ladan has stated that he
would give top priority to the
issue of gas in order to enable the
various power plants perform
optimally.
Ladan who dropped the hint in
Abuja during the formal handing
over from his predecessor
Mohammed Sanusi Barkindo in
Abuja recently.
The new GMD stated further that
he intends to learn from the
experience and success of the
'War Room' in tackling the fuel
supply and distribution challenge
and adopt it for gas supply to
ensure that gas gets to all the
power plants within the shortest
possible time.
On the issue of transformation
Mallam Ladan shocked many
when he disclosed that he would
continue with the ongoing
reforms and transformation
program he met on ground. This
according to many is contrary to
the norm where new appointees
discard initiatives they met on
ground.
The new GMD made this pledge
in order to continue with the
ongoing transformation
programme of the Corporation
which is in line with the
aspirations of the Acting
President Dr. Goodluck Ebele
Jonathan, for the oil, gas and
power industry in Nigeria.
Ladan made this promise during
his maiden meeting with staff at
the NNPC Towers in Abuja
where he unfolded his agenda for
the Corporation and the entire oil
and gas industry.
The new helmsman who said he
was part of the management team
that introduced the
transformation agenda last year
until he retired on 6th April, 2009,
stated: “I still believe in the
transformation. It is the only way
to go if the Corporation is to
survive. I will continue from
where Barkindo has left off in the
transformation project.”
“There may be shift in emphasis
Gas
or in the way it will be delivered,
but the objective of transforming
the Corporation will remain the
same. What is important is for us
to keep our eyes on the ball,”
Ladan told staff of the
Corporation.
He also dispelled rumours of
imminent sack of top
m a n a g e m e n t s t a ff o f t h e
Corporation as reported in some
newspapers, adding that there was
no basis for such speculations as
he has neither made any such
recommendations to the Acting
President nor received any
instruction in that direction from
any quarters.
The GMD listed other key
agenda of his management to
include the maintenance of the
integrity of the Corporation's
pipelines across the country,
stabilization of product supply,
the passage of the Petroleum
Industry Bill, PIB, and adequate
supply of gas to the nation's power
plants with a view to meeting the
administration's aspiration to
provide constant electricity to
Nigerians.
Ladan who called for maximum
cooperation from staff and unions
said he would work closely with
the top management team made
up of the Group Executive
Directors and would not allow any
crack.
It would be recalled that the
situation in the power sector
further deteriorated recently when
the Anglo-Dutch oil giant Shell
threaten to shut down the Oben
50
and Sapele flow line if the NNPC
fails to evacuate the condensate
line for easy flow of gas. The
NNPC under Dr.Barkindo had
replied that it is not under
compulsion to take up the
responsibility. And as the
controversy trails the nation's
power generation dropped to a
little over 1000 megawatts. The
then Minister of Power Dr. Lanre
Babalola had confirmed to
newsmen in Lagos that the
standoff between the two oil
giants is dealing a great blow to
the power sector as no significant
progress can be recorded if there is
no easy flow of gas.
Analysts in the power sector are
also of the opinion that for the
Acting President to make an
impact as the Minister of power
and the NNPC must be made to
understand that a collective effort
of all government agencies in the
energy chain is important for
success to be recorded. “NNPC
should understand the sensitive
role it is expected to play and we
should do away politics and
bureaucracies for once so that
Nigerians could heave a sigh of
relief”.
Gas Tanks
SweetCrude 51

Oando:
Building sub-Saharan Africa's Energy Conglomerate
T he renewed zest by the Federal Government towards
cementing the local content policy and legislation, geared
at boosting the capacity of indigenous oil and gas
companies to take leading roles in the development of the
hydrocarbons in Nigeria, may have been spurred by the
phenomenal growth of some local firms such as Oando.
From its origin as medium sized petroleum products marketing
company, known then as Unipetrol, with its focus primarily on the
downstream oil segment, Oando has today grown into a full scale
energy conglomerate, with operating divisions across the energy
value chain.
The company gave an early sign of audacious growth propositions,
when it became the first African company to have cross-border
inward listings in separate Stock Exchanges. This it achieved
when it obtained a secondary listing on the Johannesburg Stock
Exchange (JSE), South Africa in November 2005, after meeting
the stringent requisite conditions set by the Country’s Exchange
and authorities. It has a primary listing in the Petroleum Marketing
Sector of the Nigerian Stock Exchange.
Initially incorporated in Nigeria in 1956 as Esso West Africa, a
subsidiary of the Exxon Corporation, USA, it was again
incorporated under Nigerian laws post-independence as Esso
Standard Nigeria Limited in 1976. Following the indigenisation
policy of the 1970’s, the Federal Government acquired a 100%
equity stake in the Company and rebranded it Unipetrol Nigeria Refinery
Limited. In 1991, 60% equity was sold to the Nigerian public in the
first phase of the Government’s privatisation programme. The
Company was later listed on the Nigerian Stock Exchange in 1992. funding for its vision, Oando quickly expanded its downstream
The privatisation of the Company was completed in 2002, when business, improved internal processes, deployed world class
the Government divested the balance of 40%, which it still technology benchmarking Fortune 500 companies and most
controlled. While the Nigerian public took up 10% of the balance, significantly, diversifying its existent revenue streams by
a new core investor emerged, Ocean and Oil Investments Limited, investing in big margin businesses such as natural gas distribution
which took up the 30%. Later in the same year, the Company and upstream exploration and production to sprout a model case
acquired Agip Petroli’s 60% stake of Agip Nigeria Plc, through an of how local companies can attain global relevance.
international bid. The Company was subsequently rebranded With subsidiaries in petroleum products Marketing, Exploration
Oando PLC in December 2003. & Production, Supply and Trading, Gas and Power, Energy
Now under a new leadership, a vision to orchestrate organic & Services and Refinery and Terminals, Oando is one of Nigeria’s
inorganic growth for its downstream business and diversification most profitable businesses netting tax profits at a Compounded
into other energy business was conceptualised. With requisite Annual Growth Rate of 128%. The Group’s diversification
proposition seems to be taking shape with its subsidiaries
attaining leadership status in their various market segments.

Oando Marketing (OML)

From a network of over 600 retail outlets in Nigeria, Benin
Republic, Togo and Ghana; 18% market share of the downstream
business in Nigeria; OML is indisputably West Africa’s leading
petroleum products retailer. In addition to six strategically
located terminals, three aviation fuel depots, two Lube blending
plants and ten Liquefied Petroleum Gas (LPG) filling plants,
Oando Marketing continues to expand its capacity as it is set to
build sub-Saharan Africa’s largest petroleum product reception
terminal in Lekki, Lagos and one Nigeria’s largest LPG plant at
Apapa, Lagos. The 210,000 MT capacity terminal is
conceptualised to be best-in-class and purpose built product
terminal with Single Point Mooring (SPM) facility located about
7km offshore, capable of berthing of 80,000 deadweight tonnage
Oil Pipeline (dwt) vessels as well as dispatching over 500 trucks per day in

www.oandoplc.com Oando ...the future

SweetCrude
what is set to revolutionise petroleum products distribution in
Nigeria.
Mr. Wale Tinubu, Group Chief Executive, Oando PLC is confident
the project “will be the benchmark for product reception terminals
in sub-Saharan Africa that will once again attest to Oando’s
superior execution capabilities. We project strong early cash flow
that will provide immediate shareholder value and the financial
platform for the development of our ultra-modern refinery in the
same location.”
Oando Supply and Trading
Oando Supply and Trading is sub-Saharan Africa’s largest
independent and privately owned oil trading company, which is
responsible for a significant portion of the volumes of refined and
unrefined petroleum products supplied to Nigeria and other West
African countries. Its activities also encompass the freights market
for chartered vessels.
Oando Exploration and Production Limited (OEPL)
The Group’s strategic decision to expand to the Upstream Division
of the oil and gas sector has began to reflect in its strengthen its
earnings profile, as it commenced incomes generation from one of
its producing upstream assets (OML 125). OEPL is the first
Nigerian oil and gas company to have participatory interest in a
producing deep offshore asset. The company is set to commence
production of crude oil from its Akepo and Obodeti/Obodugwa
oilfields having successfully completed test productions in major
wells within the fields.
The Company’s asset portfolio includes interests in OML 125,
OML 134, OML 56, OML 90, OML 278, OPL 236 and OPL 282,
whilst the company continually seeks opportunities to expand this
asset base through acquisitions of near term assets. It is anticipated
that more of the assets which are currently in their exploration
phase would enter the production phases shortly, thus increasing
the Division’s contribution to top line and more importantly
bottom line performance, via its high margin potential.
Oando Gas and Power (OG&P)
Through its subsidiary, Gaslink Nigeria Limited, the Oando Gas
and Power pioneered private sector piping and distribution of
natural gas to industrial and commercial off takers in Nigeria. It has
today completed 100km gas pipeline infrastructure in the Greater
Lagos 3 project, which covers the Lagos industrial layouts from
Ikeja to Tin Can Island at Apapa, thereby extending its gas
distribution services to industrial customers within the area.
Its second subsidiary, East Horizon Gas Company, is currently
www.oandoplc.com
52
A Filling Station
constructing a 128km pipeline infrastructure from Akwa-Ibom
State to supply natural gas to UNICEM’s factory in Cross River
State and other industrial opportunities in the South East axis.
Given the current determination and move towards the utilization
of natural gas by industries, backed by the focus of the Federal
Government to harness the country’s gas potential through the
Gas Master Plan, the Gas and Power Division is well positioned to
tap from the benefits inherent in natural gas distribution.
OG&P’s power division recently came on stream with the
commissioning of Akute Power Plant built to generate power for
Lagos State Water Corporation in order to optimise its water
production efficiency, leveraging Gaslink’s 100km gas grid to
fuel the 12.15 megawatts generators. The Lagos State Governor,
Mr Babatunde Fashola stated that the Akute power project will
save the state government N591 million yearly. Oando Gas &
Power plans to replicates such captive power solutions across the
country for the benefits of the local industries and Nigerians.
Oando Energy Services (OES)
Encouraged by the local content policy in Nigeria, Oando Energy
Services positioned itself as the partner of choice by building
capacity and increasing its investments in its market niche. OES
distinguished itself as Nigeria’s largest provider of oil drilling
services, with five rigs in its fleet executing contracts for oil
companies in the Niger Delta. It also demonstrated project
execution and operation excellence in providing completion
fluids, drill bit solutions and oil well cementing.
Oando Refinery and Terminals
Oando Refinery and Terminals completes its investments across
the entire energy value chain, thereby creating an integrated
platform that will relieve product supply gaps and enable Nigeria
meets its energy requirements from within. The planned
construction of a 210,000MT terminal project is expected to
herald the construction of 240,000 barrels per day refinery in the
Lekki Free Trade Zone, which the Oando Group believes will
solve some of the critical supply issues of the downstream sector.
A feasibility study has been conducted by Wood Mackenzie and
Foster Wheeler, a United Kingdom based energy services firm,
while the Front End Engineering Design for the Terminal has
commenced.
Even with these gigantic footprints across the energy landscape,
Oando’s target is not only to become Nigeria’s leading indigenous
integrated energy company that is respected across the sub-
Saharan Africa region but to emerge Africa’s first indigenous oil
major.
Oando ...the future
SweetCrude 53

PETROLEUM TECHNOLOGY ASSOCIATION

AL
OF NIGERIA (PETAN)
PETROL
EU
N

M
O
NATI

CORPOR

...championing nigerian content in the oil & gas industry

IAN
ER

AT

IO
NIG N

ANA INDUSTRIES LIMITED ATLANTIC FLUIDS &

ARIBOIL COMPANY LIMITED
Services- INTEGRATED SERVICES LTD
Drilling Fluids Chemicals ;- Services:
Drilling Fluids Engineering Services- Services-
Drilling Mud Solids Control, - Mud & Brine Chemicals &
Solid Mineral Processing Services Mud Eng Services,-
Oilfield and General Fabrication.
Mud Specialist & Drilling Engineering
Email/Fax/TelTel: -Consultancy Services -Provision of Mud
(234)-84-771354, Email/Fax/Tel:
(234)-84-461141, Equipments for Hire
489529
Fax: 461142, 461143
Fax: Email/Fax/TelTel:
(234)-84-230159 (234)-84896651,
anaindustry@hotmail.com , (234)-84-461142
ariboilus@aol.com 08033126390, 07028712172,
ana@anaindustries.net 08034440913 enquiry@atlanticfluids.net.

BAYWOOD B.G. TECHNICAL LIMITED

CONTINENTAL LTD Service: CHESROC NIGERIA LIMITED
Services: Pipeline Services & Well Services -
Engineering - Procurement, Routine & Intelligent Pipeline Pigging; Services-
-Construction, - Installation - Chemical Cleaning, Dewaxing & Oil & Gas Engineering,
& Commissioning De-Scaling of Pipelines And -Operation & Maintenance Of
Wells; - Pumping Services; Production Platform, - Electrical,
Email/Fax/Tel: Pipeline Integrity Assessment And Re Mechanical &
234 1 7942152 Instrumentation Contractors.
Email/Fax/Tel:
Telfax: (234)-84-463592 Email/Fax/Tel:
234 1 4970646 (234)-84-239719
chrisbaywood@baywoodcontinental.com Fax: kodusami@chesroc.com
084 238647
geoff.onuoha@bgtechnical.com

DRILLOG
CISCON NIGERIA LIMITED DORMANLONG NIGERIA LTD PETRODYNAMICS LTD.
Services:
Casing & Tubing Services & Services: Services:
Tools; - Fishing & Tool Rentals; Oil & Gas Process Equipment Borehole Surveys. -Directional /Horizontal
-Eng. & Maintenance Services -Engineering & Field Services Drilling, Measurement While Drilling &
(Compressors, Pumps, Etc.) ; Mudlogging -Marine Structures & Logging While Drilling (Mwd/Lwd);
and Geological Services Structural Steel Engineering; - Full Range Fewd
-Well Completion Services. -Fabrication Services Parameters ? Gamma Ray, Resistivity,
Density & Neutron Measure
Email/Fax/Tel: Email/Fax/Tel:
(234)-84-612081, (234)-1-7748357, Email/Fax/TelTel:
612082-3, 612288, 612023, 612273, 7919877, (234) ? 84 ? 233707 (234)-84-233719,
(234)-53-253784 Fax: (234)-1-4529027 237195, 239668, 237190, 237237
Fax: (234)-84-613024, 612080 dlae@hyperia.com Fax: (234)-84-232350
cisconphc@cisconservices.com drillogp@drillogpdl.com
SweetCrude
EMVAL NIGERIA LIMITED
Services:
Wireline (Slickline & E-Line) Services
- Valve Supply & Maintenance
-Instrumentation Services - Supply,
Installation And Maintenance Of
Wellhead Equipment & Accessories
- Artificial Lift Services
Email/Fax/TelTel:
(234)-53-250367,
(234)-84-746073, (234)-53-816292
Fax:
(234)-53-257965
info@emval.net
EPIC ATLANTIC LIMITED
Services:
Engineering & Technical Services
Project Management & Inspection
Services -Virtual Construction
-Operations & Maintenance
Services - Vendor Representation
of Colfax / Allweiler Centrifugal &
Email/Fax/Tel:
+234 84 747 236,
84 897 691, +234 803 356 2328,
803 421 4616
Email: consultants@epicatlantic.com,
aloyduru@epicatlantic.com
HOBARK INTL LTD
Services:
Definite Borehole Surveys; -
Loss Circulation Solutions;
-Reservoir Studies And
Manpower Resources
Email/Fax/TelTel:
(234) ? 84- 230664,
Fax:
(234) ? 84 -234710
Obi_Okoroafor@hobarkintl.com
LASER ENGINEERING &
RESOURCES
CONSULTANTS LIMITED
Services
Reservoir Management
(Static & Dynamic Modeling, etc)
-Petroleum Reserves and Data
Management Services (PERDAM) -
Laboratory Services (PVT, etc)
-Environmental Studies and
Modeling -Geoscience T
Email/Fax/TelTel:
(234)-84- 485742,
897964, 769665, (234)-803-3103628
Fax: (234)-84-612325
laser@phca.linkserve.com,
md@laser-ng.com, mikeonyekonwu@yahoo.com,
info@laser-ng.com
54
PETROLEUM TECHNOLOGY ASSOCIATION
AL
OF NIGERIA (PETAN)
PETROL
EU
N
...championing nigerian content in the oil & gas industry
M
O
NATI
CORPOR
IAN
ER
AT
IO
NIG N
HALDEN NIGERIA LIMITED
GIL AUTOMATIONS
Services:
Services: Waste Management Services;
Instrumentation, Control & -Environment Services;
Safety Systems - Power Systems & -PVT Services ?Laboratory Services,
Renewable Energy -Systems Integration -Procurement Services;
& Industrial Automation - Panel Building -Engineering Designs.
& Instrument Calibration - Technical
Training & Consulting Service Email/Fax/TelTel:
(234)-84-799344, 231750 Mobile:
Email/Fax/TelTel: (234)-803-0677-307,
234-84-783400, (234)-805-1557-810 info@haldengrp.com,
234-8055027048 chris.umunna@haldengrp.com
info@gilautomations.com
INTERNATIONAL ENERGY KASOLUTE NIGERIA LIMITED
SERVICES LTD Services:
Services: Directional Drilling &
Engineering Designs Borehole Surveys; - Measurement
-Environ/Analytical lab services While Drilling (MWD); - Logging While
-Recruitment & Training Drilling (Lwd)
Email/Fax/Tel Email/Fax/TelTel:
94, Awolowo Road Energy (234)-84-239605, 230166-7,
House, P. O. Box 54345, Ikoyi, Lagos, (234)-53-250869
Nigeria. Tel: (+234)-(0)1-4615636, Fax: (234)-84-236134, 237926
4630183 Fax: (+234)-(0)1-4630936 kasolute@phca.linkserve.com
E-mail: energyhouse@ieslglobal.com,
ieslagos@hyperia.com
MANSFIELD ENERGY
LONESTAR DRILLING NIGERIA LIMITED
NIGERIA LIMITED
Services:
Well Completions,
Services
Liner Hanger Equipment and Services,
Drilling / Workover - Drilling
Sand Control, Well Stimulation, -Screens
& Petro. Eng. Consultancy
Email/Fax/TelTel:
Email/Fax/TelTel:
(234)-1-7900939,
(234)-84-612593,
Fax: (234)-1-4614921-4
612505, 610305
info@mansfieldenergy.com,
Fax:(234)-84-610305,
www.mansfieldenergy.com
(234)-53-251320
SweetCrude
MAVLIN PROJECTS LIMITED
Services
Consultancy & Engineering Services
-Project Management - Procurement
Email/Fax/TelTel:
(234)-84-748012,
786590 info@mavlinprojects-ng.com,
mavlinengineering@yahoo.com
NESTOIL LIMITED
Services:
- Environmental &
Waste Mgt.; - Pipeline Construction;
-Dredging & Marine Logistics
Email/Fax/TelTel:
(234)-1- 2626685
Fax: (234)-1- 2626687
info@nestoilgroup.com
OILSERV LIMITED
Service
-Flowline Station Works; - Pipeline
& Flowline Construction/Repair;
-Mechanical Fabrication; -Process
Pipework & Facilities; - Associated
Electrical/Instrument Work;
-Associated Civil/ Structural
Email/Fax/TelTel:
(234)-84-610739,
571773 Fax: (234)-1- 611626
emekobi@aol.com
PETROLOG GROUP
Services:
Drilling Services (Oil Well Drilling)
-Mud Logging; - Consultancy Serv.,
-Engineering & Engineering Design Services;
-Offshore -Drilling Services
Email/Fax/Tel:
(234)-1-2614030,
261380, (234)-84-610967-9,
Fax: (234)-1-2613807, 2615309
admin@petrologgroup.com,
voe@petrologgroup.com
55
PETROLEUM TECHNOLOGY ASSOCIATION
AL
OF NIGERIA (PETAN)
PETROL
EU
N
...championing nigerian content in the oil & gas industry
M
O
NATI
CORPOR
IAN
ER
AT
IO
NIG N
OILDATA WIRELINE
SERVICES LIMITED OIL & INDUSTRIAL
SERVICES LTD
Services:
-Production Enhancement; Services:
-Fabrication/Construction/Installation
-Reservoir Monitoring Services.;
-Formation Evaluation And Remedial & struct. - Repair & Maintenance of
Governors - Provision of
Workover Services.
Marine services and support.
Email/Fax/TelTel:
Email/Fax/TelTel:
(234)-84-463256-9, 239398, (234)-84-232024,
Fax: (234)-84-463259, (234) 235739 Fax: (234)-1- 232635
-1-2692072 emekae@aol.com oisadm@oiskenquip.net
OILTEST GROUP
ORBITAL & ORANGES
Services: NIGERIA LIMITED
- Production Logging Services; Services
-Laboratory Services; -Completion - Pipeline services ?
Services. -Completion Tool & Accessories; Laying Oil & Gas Pipeline\ Pipeline
- Surface Readout / Memory / Permanent Fabrication Consultancy Services
Downhole Gauges, -Slickline and BHP -Nigerian Manpower Supply,
Services. Training\Manpower Development and
Management. -Technical Consultancy Servi
Email/Fax/TelTel: (234) Email/Fax/TelTel: (234)-84-611143
-84-235254, 238743, 230913, Fax: (234)-84-613424
461261-3 Fax: (234)-84- orbitaloranges@hotmail.com,
238685, 239230 Tel: (234)-1-2695280 orbitaloranges@yahoo.com
md@oiltestng.com
RESERVOIR FLUIDS LAB. INC.
(SART NIGERIA LIMITED) SEGO OILFIELD SERVICES
Services: Services- Wireline (Slickline) - Wellhead
Laboratory Services; -PVT Services. Maintenance - Oilfield Manpower Supply
-Gas Lift Valve Sales & Services
Email/Fax/TelTel
: (234)-84-236645, Email/Fax/Tel:
230709 Fax (234)-84-236645, (234)-84-611012,
230708, 750948, 08037110262,
bertrfl@aol.com okoro.c.ed@sego-nig.biz
SweetCrude 56

SOWSCO WELL SERVICES

(NIG) LTD. PETROLEUM TECHNOLOGY ASSOCIATION
Services:
Cementing; - High Pressure
Pumping; - Wellhead Maintenance; AL
OF NIGERIA (PETAN)
PETROL
EU

...championing nigerian content in the oil & gas industry

M
O
- Wellbore Cleaning; - Brine Filtration

NATI

CORPOR
-Process and Pipeline Cleaning;

IAN
ER

AT
IO
NIG N
Email/Fax/Tel:
234-(0)84-461693,
487676 Fax: 234(0)84-461 693,
swnl@sowsco.net,
sadegboyega@sowsco.net

TECON OIL SERVICES

SPECIALTY DRILLING
FLUIDS LTD
Services:
Drilling Waste Management &
Ancillary Services - Waste Management
(Thermal Oil Recovery System -Tank &
Vessel Cleaning -quipment Rental (Skips,
Tanks, Forklifts Etc)
-Haulage Services - Marine Serv
Email/Fax/Tel:
(234)-84-235915,
231322-5, (234)-486049,
Fax: (234)-84-238786, (234)-1-2618371,
specialtynigeria@aol.com
LIMITED
Services:
TOLMANN ALLIED SERVICES
Fighting Equipment & Services;
-Downhole Oilwell Fishing Services & COMPANY LTD
Tools Rentals; - Casing & Tubing Running
Equipment And Casing Crews; - Drilling Jars, Services:
Drilling Accelerators & Shock Tools Renta Marine & Industrial Safety Training
-Helicopter Underwater Training (HUET)
Email/Fax/Tel: -Survival at Sea (SAS)
(234)-1-4803413,
7918094, (234)- 053-255831-2, (234) Email/Fax/TelTel:
-84-480863, 483006-7 (234)-84-238006,
Fax: (234)-480863, Fax: (234)-84-237795
teconph@teconoilserv.com, tolmann@tolmann.com
ccm@teconoilserv.com

WEAFRI WELL SERVICES

VHELBHERG INTL LTD.
Services:
-Riser/Splash Zone Repairs & Protection
- Grit Blasting & Painting -Pipeline/
Flowline/Facility wall loss reinforcements
/ corrosion control -xternal Corrosion
Repairs - Platform Corrosion Repairs
Email/Fax/Tel:
(234) ? 84- 570474,
trutubingsolutions@yahoo.co.uk
COMPANY LIMITED WELTEK LIMITED
Services:
Service: Engineering Design And
- Cementing Services; Project Management;
-Coiled Tubing Services; -Systems Integration;
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SweetCrude 57

Unified global maritime law underway
—Hassan Bello
T HERE are moves by United
Nations to bring about a
unified maritime law that
will definitely change the face of the
international shipping community.
In this interview with Godwin
Oritse of Sweetcrude, the Director
Legal services of the Nigerian
Shippers' Council Mr. Hassan
Bello said that the unified law will
put the cargo owner at an
advantageous position when it
becomes effective.
Excerpts:
Before now, there was the Hague
and the Hamburg rules that
govern international shipping
what do we expect from the
proposed unified maritime law?
Before now were had two
diametrically opposed legal
framework covering the carriage
of goods by sea, the Hague Rules
which was crafted by carrier nations
or ship owning nations in the 1920s.
There was also the Hamburg
Rules which was a reaction to the
Hague Rules and it was designed to
favour cargo owning nations
purportedly.
So we have two opposing
conventions and this is detrimental
to the conduct of international law,
international thrives when the
procedures and regulations are
uniform.
When we have different sets of
rules in Nigeria, India and England
then there will be chaos.
There is a need to harmonize a
unifying law so that we have the
same applicable throughout the
carriage
Now, it was a reaction to this that
the Rotterdam Rules were put
together and right from that
moment Nigeria played a very
important role in the negotiation
process - negotiation that Nigeria
and indeed Africa's interest will be
protected in the new convention.
Nigeria led the African group
during negotiations in Vienna and
New York.
By and large, the new convention
reflects the interest of developing
countries because there had to be
some compromise.
During negotiation, we could not
get all that we wanted but there
were so important milestones
achievements we recorded for the
example, the limit of liability
which is more than all what the
Freight
convention offers, we have the
limit of liability, we have the time
for suit, but even more than that the
Rotterdam Rules is a modern
convention, modern in the sense
that the Hague Rules of 1924
Hamburg Rules of 1978, these are
outdated conventions, they cannot
take care of modern trend in
international law so there is gap.
The Rotterdam Rules covers all
that has to do with door to door
delivery of cargo.
Before you have to come to the
port and clear your goods but that
concept is becoming obsolete.
With the Rotterdam Rules, people
can take delivery of their goods at
the door step of their warehouses
from anywhere in the world.
The two previous conventions
were merely maritime
conventions, so you find out that
they are restricted to the sea but the
Rotterdam Rules, apart from being
a maritime convention, it is
maritime-plus that means it will
also take care of other modes of
transportation as long as the first
leg involves the sea.
So multi-modalism is a modern
concept and the Rotterdam Rules
58
Also, another significant modality
in Rotterdam Rules is the aspect of
electronic commerce, neither the
Hague nor Hamburg Rules have
provisions for electronic Bill of
Lading, but Rotterdam Rules has
made adequate provision for
electronic document.
You can see every aspect of
modernity in the Rotterdam Rules.
Germany does not seem to be
too comfortable with proposed
law, why are they not supporting
it?
In Europe, they have lot of limited
liability regime in their laws; they
have developed laws to transport
goods by other means so they do
not want these laws to be affected in
any way.
However, there are other countries
in Europe that support this
proposed law, but that is what we
should expect some will support
and some will not because some
like their municipal laws more than
a thing that is universal.
The United States of America for
example is very much in support of
the unified law
About twenty countries have
appended their signature to the new
l a w, w h a t i s d e l a y i n g i t s
implication?
The convention is barely out of the
works, people are still looking at it
and see how it will affect their
nations but I think the Rotterdam
Rule has come to stay
What will Nigerian shippers
Port Harbour benefit from the new law?
Nigerian shippers are going to
benefit tremendously like I have
told you the law will give their
cargo more protection and it will
give us the opportunity also to
adopt certain powers of
negotiations with the shipping
company.
It has given us variety of modern
concept which will boost their
trade, it will Nigeria to the
international community of nations
and it will also help in the
infrastructural development of the
Nigerian maritime industry more
so that the Ministry of Transport is
Before you have to
come to the port
dredging the River Niger and
concentrating in developing rail
lines all these will be within the
legal framework of the Rotterdam
Rules.
and clear your These ship owners have a way of
circumventing such
goods but that international convention and we
concept is are aware that they are already
making such moves how would
becoming obsolete. you react to this?
You know what we want is
With the Rotterdam equilibrium, in as much as both
Rules, people can carriers and the cargo owners are
always at the opposing ends, it
take delivery of important to know that the shippers'
needs the carriers as much as the
their goods at the carriers need the shippers.
So there must be some harmony,
door step there must be some equilibrium in
the entire playing field of shipping
necessary for the operation of
has taken care of this.
shipping and I think the earlier we
In Nigeria for example where we
discuss these issues antagonism
have the dry ports , you can import
between the carrier and the
anything from any where in the
shippers the better.
world , it can come through the sea,
I think that both the interest of the
it will come through or through
carrier and the shipper have found a
the rail and at the same time using
perfect place in the Rotterdam
one single document and one agent
Rules.
and you will receive your goods
that is the model we are looking at.
SweetCrude 59
 Freight
'Seafarers have become
an endangered specie'
— Master Mariners
Godwin ORITSE
T HE Nigerian Association
of Master Mariners
(NAMM) has warned that
the global economic trade may
further decline if the threat faced
by seafarers' manning vessels that
move cargoes around the world is
not checked.
In the same vein, the International
Maritime Organization (IMO) has
declared 2010 as the year of the
Seafarer in celebration of its
annual world maritime day.
Addressing newsmen in Lagos
recently, the Chairman of the
Technical Committee of the
Association Captain Abiodun
Omotesho said that besides that
pirate and armed robbery attacks
faced by seafarers on the seas, poor
working conditions have also been
attributed to reason why people
declined to take up a career in the
seafaring profession.
Omotesho stated that apart from
the threat melted to seafarers in
developing maritime nations, the
same can also be said of developed
economies.
He called for the full
implementation of the Maritime
Labour Convention (MLC) saying
that “it will give better working
condition for seafarers”.
He disclosed that the dangerous
situation facing seafarers has
prompted both the IMO and the
NAMM to launch a campaign with
theme 'Save the Nigerian Seafarer'.
His words “Now is not the best
time to be at sea considering the
poor wages paid as per when
received by some shipping
companies, exploitation of African
seafarers, poor working conditions,
the lonely life away from the family
and their abandonment in foreign
ports by some scrupulous ship
owners.
“The seafarers of today faces
criminalization in both developed
besides that pirate and
armed robbery attacks
faced by seafarers on
the seas, poor working
conditions have also
been attributed to
reason why people
declined to take up a
career in the seafaring
profession
and developing maritime nations,
piracy and armed attacks common
in Indian Ocean, West Africa ports
(Nigeria in particular), Malacca
Strait.
“These are the dangerous situation
faced by seafarers of today in
rendering their professional
services to maintain the economic
trade of the world.
“The implementation of the
Maritime Labour Convention
coming up in 2011 which will give
better working condition for
seafarers is a tool of improving the
standard of seafarers globally.
The implementation must be
followed up by judiciously once
ratified”.
Both the 'Go to Sea' campaign by
the IMO and the Nigerian Maritime
Administration and Safety Agency
(NIMASA) National Seafarers
Development Programme (NSDP)
are yet to yield results as the
response to these programmes have
been ignored by Nigerians as not
many are willing to take career in
the sea profession due to the hazards
faced by seafarers in recent times.
There are about 750,000 global
vacancies in the profession
currently, while there are only
1.5million currently working
worldwide.
The group was also of the opinion
that only a deliberate private and
public sector initiative can solve the
crisis facing the seafarers in Nigeria.
The Cabotage Act which has
provision for the engagement on
board vessels trading on the
Nation's coastal waters has also
failed to achieve its purpose as a
study has shown that out of the
12,000 seafarers working in Nigeria
only 800 are Nigerians
The implication of this is that
billions of Naira from the Nigerian
economy is freighted abroad every
year.
Ship
60
Nigeria confronts
pirates with
rusty ammo
T HE gleaming
Nigerian naval
patrol boat heaved
across the rough waters of
the Atlantic Ocean in search
of pirates. Beyond the crisp
white hull, however, crew
members in cheap sandals
manned machine guns
whose ammunition had
rusted in the chambers. And a
computer_guided gun on the
bow had no ammo at all.
This is the first line of
defense against growing
piracy off West Africa.
The patrol boat Burutu,
which recently participated
in a training exercise with the
U.S. military, is part of a
force that patrols Nigeria's
530 miles (853 kilometers)
of coastline. But the navy
appears overmatched as
attacks on shipping continue
and grow more violent, and
militants resume strikes on
oil platforms and pipelines.
The coastline of Africa's
most populous country is a
target_rich environment.
Barges and other vessels
belonging to energy
companies crowd the waters
off the Niger Delta, one of
America's top sources of
crude oil. At night off the
megacity of Lagos, lights
from scores of cargo ships
twinkle like an archipelago
as crews wait for weeks to
unload at the city's busy,
mismanaged port.
About 10 pirates on Thursday
night boarded a
Turkish_flagged freighter
waiting to unload its cargo.
They stole money, mobile
telephones and computer gear,
Turkish maritime authorities
said. The crew apparently
fought back and sent an alarm
before the pirates clubbed
them with Kalashnikov rifles
and stabbed the captain. Two
Turkish sailors and a Nigerian
worker were injured.
"The Western African coast,
especially around Nigeria, is a
high risk area for piracy," said
Cyrus Mody, a manager at the
International Maritime
Bureau, which tracks piracy
worldwide. "It also one of the
most violent places."
The bureau reported 28
attacks off Nigeria during
2009 and believes at least
another 30 pirate attacks went
unreported, either due to
companies worried about
having higher insurance
premiums or concerns about
advertising their security
weaknesses, Mody said.
SweetCrude 61

Govt should make mega floating
stations work —Ex militant leader
S OBOMABO
Jackreec aka
Egberipapa was a former
leader of the Movement for the
Emancipation of Niger Delta
(MEND). He was among
prominent ex militant leaders in
the region that gave up militancy
following the presidential
pronouncement of amnesty for
repentant militants in the region.
Recently, he spoke with Jimitota
Onoyume of Sweet crude on a
number of pertinent issues
concerning the Niger Delta
security, oil and gas exploration
and production, improvement in
living conditions in the area.
Excerpts:
In this interview he speaks on
sundry issues among which is the
mega floating station built on the
water ways in his Buguma village
three years ago to serve the
kalabari kingdom but has not
commenced operations. He said
the state of the station is enough to
provoke youth restiveness in the
area. As an ambassador of peace
which he now calls himself he said
it his duty to draw attention to
issues that could spark up any form
of crises in an area he said he
exercises so much influence.
Excerpt:
You said youths in your
Kalabari area are getting
provoked. What is the issue?
It has to do with a mega floating
station built on our
water ways in
Buguma three years ago
to take care of the fuel need
of the kalabari kingdom. Till date,
that filling station that was
completed three years ago has not
started dispensing petroleum
product.
We welcomed the project when it
came to the area. Because we saw
it as something that would serve
the overall interest of the area. We
gave the project security. I ensured
that nobody harassed the
contractors while they were
working. But surprisingly three
years after they completed the
project it is yet to serve its
purpose. The painful thing is that
those in charge of the place still
supply diesel to the station that is
not working. And also run other
cost for the floating station that
has never dispensed product to the
area. We have not seen the benefit
of the floating station to the area. I
am saying that it is either they
make that station begin to
dispense product or they should
come and remove it. Because it is
not serving its purpose yet some
people are using it to make money.
NNPC should do something about
it immediately. We gave support to
the project because we taught it
would be useful to everybody.
Imagine with a mega floating
station on our water we still go to
look for fuel in Port Harcourt.
Then of what use is it to us?
Let me also talk about the shore
Floating station and Sobomabo Jackreec (inset)
protection project going on in
Buguma. The kind of job the
contractor is doing is causing
provocation all over because of the
poor quality. We are not satisfied.
Just go and look at the quality of
work. Either he sits up or NDDC
should revoke the job. Again, I
have been getting reports from the
boys that he is paying them paltry
sum he should jack up what he
gives them for labor to an
appreciable amount. You can not
come here to enslave our youths
because you are doing a project in
our community. Nobody is
disturbing any job going on in this
community because I have given
orders that all projects should be
allowed to run but the contractor
should reciprocate this by giving us
quality job. Erosion is a major
problem we have in the riverine
area. Now that government has
remembered us to protect us from
this problem anybody doing the job
must do a good one. This is my
argument. They should do what is
good for us because we don't want
to be provoked. We have a duty to
monitor projects going on in our
area and cry out when they are not
being well done
How will you react to the bomb
blast in Warri that rocked a post
amnesty dialogue?
All I can say is that youths in the
region should allow the acting
President Good luck Jonathan to
make meaningful impact in the
region. And he can only do this in
an atmosphere of peace. History
will not forgive anybody if we
don't give Good luck the chance to
work.
You said you want to comment
on the recent Jos killing.
(Cuts in) Our Muslim brothers
should be accommodative. We
Christians have a history of being
hospitable to them. They owe our
Christian brothers and sisters in
their midst this level of
hospitality as well.
I felt a very great pain when my
dear friend I heard took his life
because his only son was killed in
the recent Jos crisis. Please all
sections of the country should
promote peace. No group has the
monopoly of being violent so we
should all promote peace. This is
my appeal
Any comment on the post
amnesty programme?
I think we are satisfied by the
concerns so far expressed by the
government to make it work.
Government should take the right
steps. For instance the likes of
Prince Joseph Etella Harry aka
God father who was among those
that made a lot of us to give up
militancy should be brought into
any programme to pursue the
post amnesty to its logical end.
Government should start
something immediately in the
area of rehabilitation so that the
boys that have given up militancy
all over can be useful to
themselves and the state. I think
this is all I have to say
62
NDDC to train 25
in South Africa on
international
welding skill
Jimitota ONOYUME
P ORT HARCOURT:
AS part of effort
aimed at tackling
youth unemployment in the
Niger Delta region, the Niger
Delta Development
Commission in partnership
with the Nigerian Institute of
Welding is to send twenty
five youths to South Africa
this year for training on
international welding skills.
The twenty five would in
turn train three thousand
within the next three years on
similar skills.
Chairman, Nigerian
Institute of Welding, Mr.
Solomon Edebiri who spoke
to the Vanguard yesterday at
the end of an aptitude text
for the seventy that applied
for the opportunity said the
screening process to select
the twenty five would be very
thorough after which they
would be sent to the
Petroleum Training Institute
for training for ten weeks.
And later they would
proceed to South Africa for
another round of training
which would run for five
weeks.
He urged those that would
be finally selected for the
international training
opportunity to ensure they
make good use of the
opportunity. Adding, he said
they would be trained in all
the branches of welding. The
resultant benefit according to
him is that there would be a
drastic reduction in the influx
of expatriates' welders into
the country because the
nation would have had
enough international welders
at the end of the exercise.
He said to ensure a smooth
training period for the
trainees at the Petroleum
Training Institute (PTI) and
NDDC would provide a 500
kva generating set. This he
explained would guarantee
power supply all through the
period of the training
exercise. He said the
commission would also
supply fifteen multi process
welding machines.
Edebiri expressed the hope
that the exercise would
greatly assist in reducing the
problem of unemployment
and other related challenges
in the region.

Royal father harps on significance
of education
Jimitota ONOYUME
P ORT HARCOURT:
EDUCATION has
again been identified
as a relevant instrument for
national development. Urging
governments in the country to
take steps to effectively build
the structures of education in
the country paramount ruler,
Choba, Port Harcourt in
Obio/Akpor Local
Government Area of Rivers
State, King R. W. Okocha,
described it as the strongest
instruments needed for the
nation's growth.
He said there was need to
pursue qualitative education as
this would take the nation to a
g r e a t e r h e i g h t .
Okocha who spoke during the
presentation of science
equipment to Olobo Premier
College, Choba by Dufil
Prima Foods Limited, and
producer of Indomie noodles
said no amount of money spent
on education would be a
waste. The monarch who was
represented by the Chairman,
Community Development
Committee (CDC), Igwe
Chukwuemeka, further
appealed to the school to make
good use of the equipments.
Principal of the school, Mr.
Kingson Dumo Okubo,
assured that the equipments
would be well used.
Area Marketing Manager,
Dufil Prima Foods Limited,
Students in the classroom
responsibilities in the area of
education.
Salisu said: “It is a way of
We discovered
that there is need
for us to improve
giving back to the society,
where we have equally taken
from. We discovered that there
is need for us to improve on
science and technology, being
on science and very key to any nation's
d e v e l o p m e n t .
technology, being “Basically, there is nothing
you will do now, without
very key to any science and technology,
nation's especially Information and
Communication Technology
development (ICT). Once you do not get
these rudiments right from the
secondary schools, it will be
d i f f i c u l t . ”
Mr. Haruna Salisu said the Adding, he said the firm has
donation was part of their been operating in Choba in the
corporate social last eight years
63
Rotary donates
materials to 4
primary schools
in Warri
Emma ARUBI
W ARRI-AS part
of its mandate
this Rotary
year, the Rotary Club of
Warri, District 9140 has
donated learning materials
worth over four million
naira to four primary
schools, even as it also
commissioned a water bole
hole project at the Federal
Prisons, Warri to alleviate
the acute water shortage
problem confronting
inmates of the prisons.
The District Governor,
Rotarian Uduak Inyang led
the President of the Rotary
Club of Warri , Rotarian
Gabriel Adoghe and other
members to the prisons
during the commissioning
and enjoined the inmates of
the Prisons to maintain the
water project aimed at
reducing their sufferings
with a promise to continue
to support them.
Presenting the learning
materials to the
Headmasters/Headmistres
ses of Ikengbuwa, Mowoe,
Ojojo and Igbudu primary
schools A and B
respectively, Rotarian
Gabriel Adoghe charged
the pupils to put them into
effective use as it is aimed
at enhancing their learning
abilities and also reduce the
financial burden on their
parent.
The learning materials
which include 7,440 pieces
of exercise books; 1,240
pieces of school bags and
1,240 pieces of raincoats
were valued at
#4,166,400.00.
Responding, the
Controller of Prisons, Delta
State Command, Mr.
Emmanuel Bassey
described Rotary Club as
the World's foremost
service delivery club,
noting that the bole hole
project will promote good
health and hygiene
amongst the inmates.
On their part, the various
school heads thanked the
Rotary Club for their kind
gesture and for
remembering them while
wishing them God's
abundant blessings.

Shell under pressure to end gas flaring
Development Company (SPDC)
Samuel OYADONGHA
has again come under pressure to
Y enagoa - The Anglo end gas flare in the troubled Niger
Dutch oil giant, Shell Delta.
P e t r o l e u m
Millieu Defensie (Friends of the
Earth, Netherlands), a leading
clean environmental campaigner
Thursday in Holland, staged a
peaceful protest against the oil
major in which a total of 110
Gas flaring
torches were lighted to signify the
number of gas flare locations in
the Niger Delta as recorded by
Shell.
The protesters numbering about
64
two hundred according to the
Founder/President The Netherland
based Hope for Niger Delta
Campaign, HNDC, Comrade
Sunny Ofehe, moved to Shell
headquarters with Dutch police
escort where symbols of gas gas
flare were displayed and later
extinguished.
Ofehe said, prior to the
demonstration, a letter of peition
was signed and sent to the CEO of
Shell, Mr. Peter Vosser adding that
the protest march started at the
famous Madurodam and moved
down to the Nigerian embassy.
His words, “The people of The
Netherlands came out today
(Thursday) under the auspices of
renown environmental NGO
Milieu Defensie (Friends of the
Earth) to say no more gas flare by
Shell International in the Niger
Delta.”
“The turn out was impressive and
it was heartwarming to see this
people show concern for the
voiceless Niger Delta people.... I
was proud to be an integral part of
this demonstration,” he declared.
On why environmental groups are
piling pressure on the oil majors to
put an end to gas flaring in the
fragile Niger Delta he said, “We all
know that Nigeria is the second
most gas flared country in the
whole world after Russia.
“This flare is as a result of the
burnt associated gas that comes as
by products of oil drills. The
carbon content of the gas flare has
caused much health hazards to
people living in that environment.
“In Western countries these are
the gases that are channeled to
homes for domestic usage. In
Nigeria they are wasted by the oil
multinationals because they
consider it cheaper that way. Now,
with the threat of global warming
and greenhouse gases, we are
saying gas flare must stop in the
Niger Delta!”
Ofehe who thanked the
demonstrators for standing on
behalf of the traumatized Niger
Delta people pleaded with them to
continue to exert the pressure on
the multinational communities and
their government to end gas flare
in the Niger Delta and save the
people of diseases associated with
carbon emission.
Lamenting the serious ecological
and environmental damages done
to the lands and environment of the
Niger Delta by the Nigerian
government and its joint venture
partners for more than 50 years of oil
and gas exploration in the region he
said the genuine struggle of the
people for justice and equity should
be given the deserved attention.
According to him, the people of the
region are entitled to a healthy
environment and compensation for
the ecological and environmental
damage done to their lands.
He recalled that the people had been
in exclusive ownership of their lands
from time immemorial adding that
the area is difficult due to the nature
of the terrain hence the Willinks
commission recommended that it be
treated as a special area for
development.
SweetCrude 65

JTF intercepts 800mt of stolen crude
in Bayelsa, arrest foreign national
Samuel OYADONGHA
Y enagoa-The Joint Task
Force has smashed yet
another syndicate with
international connection that
specializes in lifting stolen
Nigerian crude following the
interception of a vessel laden with
crude oil on the Brass fringe of the
Atlantic Ocean.
The seized vessel owned by a
Greek firm, Blossom S.A was
carrying 800 metric tonnes of
crude oil allegedly stolen from a
facility operated by the Nigerian
Agip Oil Company (NAOC).
An Asian, identified as Mr.
Minzaw Tinmaungyaw from
Myanmar was nabbed on board
the vessel, MT Glory.
The vessel according to a
security source was intercepted at
about midnight March 31, by men
of the Joint Task Force along the
Lagogbene community of Brass
in the Bayelsa East senatorial
zone Aside the Myanmaris
national that was arrested by
security operatives on board the
vessel the other crew members
reportedly dived into the sea and
escaped.
The seized vessel sources told
Vanguard was a courier to a larger
vessel with over twenty-five crew
of Myanmaris nationals on board
floating outside the nation's
territorial waters waiting for the
stolen crude.
It was also learnt that a Nigerian
link with the seized vessel had
made a N2m bid for the release of
the suspect and the vessel which
was rebuffed and that the
authorities are on the trail of those
involved in the attempted bribe.
The coordinator of the Joint
Media Centre of the JTF, Lt. Col.
Timothy Antigha who confirmed
the incident to newsmen said the
arrest has further shown the
resolve of the Federal
Government to put a stop to the
The seized vessel
Was a courier to a
larger vessel with
over twenty-five
crew of Myanmaris
nationals on board
floating outside the
nation's territorial
waters waiting for
the stolen crude
cases of illegal bunkering
activities along its territorial
waters.
Though he said the vessel has the
capacity to load over 2,000 metric
tones of crude oil, over 800 metric
tones had been loaded before it
was intercepted.
“All we have done is to conclude
our report on the arrest and it will
be forwarded to the appropriate
authority for further action,” he
said.
Antigha noted that the JTF will
also hand over the arrested vessel
to the authority of the Economic
and Financial Crime Commission
(EFCC) for investigation and
prosecution of the suspects.
The arrested Myanmaris,
Minzaw Tinmaungyaw
confirmed the illegal loading of
the crude oil but denied any
involvement in the act saying he
was only a passenger on board the
seized vessel.
Vessel loading crude oil
66
Buildings in
Yenagoa yet to
be numbered
Y enagoa - Almost 14
years after the creation
of Bayelsa State, most
of the residential and
commercial buildings in
Yenagoa the capital city are yet
to be numbered.
This sad state of affairs might
have informed the position of the
state house of assembly which
three years ago passed a
resolution calling on the state
government to commence the
naming and numbering of streets
and houses in the capital city but
not much had been done in this
regard.
Presently, it is a difficult
exercise for a first time visitor to
the capital city to locate his
destination due to the absence of
street names and house numbers.
Given the scenario, most
residents are compelled to use
landmark features in describing
their homes whenever they are
giving out their addresses to
would be visitors.
Some residents who spoke to
Sweet Crude described as
embarrassing and sad the
situation where the state capital
does not have properly defined
street names and numbered
houses for easy identification
and location as obtained in cities
all over the world.
Others blamed the situation on
the Yenagoa City Council which
they claimed did not leave up to
its primary responsibility by
failing to name and number
streets and houses under its
jurisdiction.
They lamented that the council
could have used street naming
and selling of number tags as a
veritable source of revenue and
called on the state government to
take over the task describing the
marking of street names and
house numbers as a road map to
development.
While berating the Capital City
Development Authority, the
body saddled with the
responsibility of implementing
the Yenagoa master plan of not
doing its job, a resident who
simply gave his name as Ben
said, “How can we number
houses when there is no effective
housing or town planning
authority? People build houses
in front of road, besides roads
and you see glass houses and
hotels in the midst of slums.
“How do reconcile a situation
where residents park their cars to
walk long distances to where
they live in some areas, or
meander to where they live?
If the state really has a master
plan for Yenagoa as suggested by
this government and previous
ones, what then stops the
government from putting it to
work?
SweetCrude 67

Nigeria
Ectractive
Industries
Transparency
Initiative

NEITI and the effects of transparency

in an emerging economy

O
country.
VER fifty years of oil production in Nigeria appears to have brought
the country, especially its citizenry more hardship than comfort, with
an unprecedented level of crises ion the oil producing regions of the

The multinational oil companies have been accused of not doing enough for
the country which has brought them lots of wealth. They too on their part have
countered the accusations, claiming they have expended more in Nigeria than
on any other country of the world.
This has continued unabated for long until recently when the country suddenly
woke up from a protracted slumber and discovered that part of the reason for
this anomaly is the lack of cogent and adequate regulatory rules for the sector to
abide by; a set of laws that is in tune with modern realities of the Nigerian oil
and gas sector. In their clamour they settled for the Oil and Gas
Implementation and reforms Committee (OGIC), which sat, deliberated and
also settled for the now so called Petroleum Industry Bill (PIB) currently
causing ripples in the National Assembly.
At the public hearing organised by the tripartite committee of the National
Assembly, the accusations and counter accusations became the order of the
day, especially between government agencies and operators in the sector.
After due and proper scrutiny, this writer was able to conclude that a major part
of the problem which brought about these accusations was due to a lack of
transparency and accountability by stakeholders in the sector, especially the
federal government.
It is no longer news that there is a high level of incompetence in the federal
arrangement. Undue favoritism and so on have all contributed over the years
to the unproductive status of the oil industry.
However, there was a major achievement in the sector by the immediate past
administration, in 2004, the Nigeria Extractive Industries Transparency
Initiative, popularly known as NEITI was established after the country signed
to be a member of the Extractive Industry Transparency Initiative (EITI), a
world renowned body which busied itself on nothing other than turning
exploratory finds into the wealth it supposed to generate through proper
accountability of all finds and a more transparent modus operandi.
An oil sector analyst who spoke with Sweetcrude recently on conditions of
anonymity noted that if the oil and gas sector noted for its huge contributions to
the nation's foreign exchange earnings still has most of its activities shrewd in
secrecy even with the presence of an organ like NEITI, Then it is better
imagined what could have been the case had there not been a transparency
organization like the NEITI.
Since inception in 2004, the Nigerian Extractive Transparency Initiative has
repeatedly held road-shows in virtually all of the nation's Geo-political zones,
where issues affecting the wellbeing of the common man always take the front
burner and is discussed with unimaginable passion.
“It is only in NEITI road-shows that you get people questioning their leaders
about transparency and utilization of funds. In this country that is rare. People
eagerly attend these meetings and road-shows because it gives them the rare
opportunity to hold their leaders accountable. In a society where every public
office holder is first seen as a thief! Until, of course proved otherwise, and this
is so because of the level of poverty even in the midst of plenty.
Acting President Goodluck Jonathan noted at a forum on transparency put
SweetCrude 68

Nigeria
Ectractive
Industries
Transparency
Initiative

NEITI and the effects of transparency

in an emerging economy
together by the NEITI that “the comprehensive Process, Financial and Physical Audit
of the Oil and Gas sector periodically carried out by the Nigerian Extractive Industries
Transparency Initiative [NEITI] has significantly improved information flow”
This assertion by the Acting President has been further intensified by the series of road-
shows, round table discourse and town-hall meetings held across 6 geopolitical zones
between 1999 and 2004, as well as 2 other roadshows in the Sout-South and South East
Geopolitical zones of the country between 2005 and 2009. Further roadshows are
expected shortly even as a high level round-table discourse was held in April
2010.Goodluck Jonathan further enthused during the April 1 roundtable discourse that
“while it is NEITI's responsibility to increase the capacity of all stakeholders to access,
understand and participate in the exchange of ideas on extractive industry
accountability, for Government, the touchstone for economic policy is to make sure that
everybody has opportunities in that system, and we will not rest on our oars until we
close the gap between policy and implementation. The public has a right to full and
timely information necessary to meaningfully participate in environmental and social
decision-making, which resource extraction invariably involves. But beyond building
public trust and meeting international standards of good governance, transparency in
the sector ensures the country gets the full value for its resources”
The above statement however countered recent reports that NEITI may have
descended into lethargy because it has not prosecuted agencies of government said to
have been indicted by its audit reports. The role of NEITI is not to prosecute but to
checkmate by way of whistle-blowing against any institution, public or private that is
indicted by its audit.
NEITI is mandated by the Nigerian extractive transparency initiative act, 2007 “to
PROMOTE due process and transparency extractive revenues paid to and received by
government as well as well as to ensure transparency and accountability in the
application of extractive revenues”
The act allows it to promote, and not to prosecute as some Nigerians may be yearning.
If the whistle blower completes its job, then the appropriate authorities are expected to
move in and do theirs.
NEITI has among other things since 2004 engaged in various activities in pursuit of its
mandate part of these includes:
Commissioning the financial, physical and process audits of Nigeria's Petroleum
Industry for 1999 to 2004. This was the first comprehensive audit of this strategically
significant since the country struck first oil in 1956.

Communicating the findings of the audit in a comprehensive and comprehensible

manner to various stakeholders.

Working with Government agencies and other stakeholders to remedy the lapses
identified by the audit.

Building the capacity of civil society organisations, government officials and

parliamentarians, and the media to understand and monitor extractive revenue
transparency In Nigeria.

Forging a national consensus on need for extractive revenue transparency in Nigeria

through outreach and advocacy activities such as road-shows, consultative forums and
town-hall meetings.

Commissioning the 2005 Audit of Petroleum Industry in Nigeria

Communicating findings of the 2005 audit to various stakeholders.

SweetCrude
'Feelers and reactions
from across the Nation’
“The NEITI progress is a good step forward and my
belief is that many more such steps by government and
other initiatives would help us reach a tipping point in
the fight against corruption in Nigeria. When
governmentisabletoallowrevenuesofallsectorstobe
monitored and publicised, when motivation for
corruption and misappropriation of revenues are
reduced, when the citizenry is able to see how earnings
from their natural resources are being utilized, when
these resources start translating to good schools,
hospitals, roads and food, then a profound shift would
have been achieved”. --Acting President and
Commander in Chief of the armed Forces Federal
Republic of Nigeria, Dr Goodluck Ebele Jonathan
GCON.April,1,2010
“Inadequate and poor manpower, poor welfare
package, poor record keeping processes, inadequate
accounting systems and manual information storage
systems,poorinterface,co-operationandinformation
sharing between government agencies, maintenance
ofasingleaccountformorethanonetaxtypeandlackof
anadequateandsufficientdatabasefortheverification
of records submitted by oil and gas companies due to
lack of automation of systems. The above were in a
nutshell the major issues noted by the NEITI as fallout
of the audits. It must however be noted that these
comments are in tandem with the reports of the study
group on Nigerian tax system, which was submitted in
2003 and ledto thetaxreformagendaapprovedin2004
by the federal government and formed the
underpinning of all actions taken to date and still being
taken to improve the tax system”.--Ifueko Omoigui
Okauru MFR, Executive Chairman, Fed. Inland
RevenueService.
“One of the strengths of NEITI is the fact that it is
stakeholder driven, which allows for frank
conversations on how best to collectively make
progress. The role of each stakeholder can not be
discarded as each is important and imperative to the
EITI process”. Mallam Haruna Yunusa Sa'eed,
ExecutiveSecretaryNEITI.
69
Nigeria
Ectractive
Industries
Transparency
Initiative
NEITI should as a matter of focus, strengthen
technical capacity of its Secretariat by way of in-
housetrainingsessions,Supportimplementationof
remedial action plan for identified lapses in NEITI
audit reports. Assess options for expanding EITI to
mining. Engaging Civil Society Organisations and
stakeholders-dissemination of the 2005 audit
reports findings, validation findings and remedial
actions”.Onno Ruhl, World Bank Country
Director,Nigeria/AfricaRegion
“It is common knowledge that the Audit of the
Nigerian Oil and Gas Industry conducted by the
NEITI threw up all sorts of issues relating to both
immediate and long term viability of the industry.
These issues mainly deal with both the structure and
governance of this all important sector of our
n a t i o n a l e c o n o m y. A m o n g t h e s e a r e t h e
inefficiencies that characterised the production,
marketing, and accounting for government's equity
oil, the challenges that confront the assessment and
collection of petroleum profit tax, and various other
associated problems relating to the optimal
management of the country's petroleum
resources”Dr. Bello Aliyu Gusau, Secretary, Oil
and Gas Sector Reform Implementation
Committee.
A sixth function of NEITI is to monitor and ensure
thatallpaymentsduetothefederalgovernmentfrom
all extractive industry companies, including taxes,
royalties, dividends, penalties, levies and such like ,
are duly made.The 7th function is to identify lapses in
the governance processes of the extractive industry
regulatory agencies. NEITI is expected and
empowered to undertake measures that shall
enhance the capacity of any relevant organ of the
federal, state or local government that has statutory
responsibility to monitor revenue payments by all
extractive industry companies to the Federal
Government, it is clear then, why financial audits
coupled with Physical and process audits
preoccupiesNEITI”.
Professor Humphrey Assisi Asobie, Chairman,
National Stakeholders Working Group
(NSWG)ofNEITI. April1,2010.
Notable Nigerians and stakeholders react to the
activitiestheNEITIsinceinception

Iduwini celebrates Shell
sponsored projects
Samuel OYADONGHA
T he people of Iduwini
D e v e l o p m e n t
Foundation in the
Ekeremor local government area
of Bayelsa State had cause to roll
out their drums last week
following the commissioning of
Shell Petroleum Development
Company (SPDC) sponsored
projects and award of scholarship
to students in institutions of higher
learning.
The projects which spanned
across six communities was
estimated at N166m.
The fanfare which greeted the
commissioning exercise which
lasted two days is understandable
given the near absence of both
state and local governments in the
Iduwini communities located in
the hinterland of mangrove
swamp on the Atlantic fringe of
Bayelsa West senatorial district.
A total of fifteen projects
bankrolled by the Anglo-Dutch
oil giant spread across six
communities that made up the
Iduwini Foundation were
commissioned with scholarship
awarded to one hundred and eight
indigenes of the area in
institutions of higher learning
across the country.
The projects were executed
under the second and third phase
of the Global Memorandum of
Understanding GMoU entered
into between the SPDC and the
Iduwini Foundation.
Dancers
Among the projects
commissioned were two concrete
roads with drains at Amatu I, one
concrete road with drains and
three public toilets at Amatu II,
one Walkway Bridge and town
hall building at Aghoro I as well as
one walk Way Bridge and three
classroom blocks with
headmaster's office at Letugbene.
Others include one concrete
road with drain and renovation of
town hall building at Aghoro II,
electrification and provision of
70
110KVA generator, fabrication
and installation of 6000 liters
tank, provision of eight fishing
boats with 15 horse power
Yahama engines and fishing
equipment for members of the
communities.
Though some of these projects
might mean little or nothing to
those in the privileged and visibly
developed parts of the country but
to the poor rural settlements of
Iduwini communities, Walk Way
Bridge, fully furnished classroom
blocks and concrete roads in this
predominantly wet and marshy
enclave is a luxury.
Speaking at the commissioning
ceremony which was turned into a
carnival by the elated natives, the
Chairman of Iduwini
Development Foundation, Mr.
Elimi Geregere thanked SPDC for
its support and commitment
towards the actualization of the
GMoU driven projects.
Geregere who described the
projects as people oriented said
they were designed to meet the
immediate pressing
infrastructural needs of the
benefiting communities.
His words, “The fifteen
completed second and third phase
projects are in furtherance of the
existing partnership between
Shell Petroleum Development
Company (SPDC) and the Iduwini
communities in line with the
Global Memorandum of
Understanding GMoU which both
parties entered into on January 29,
2007.
“It is therefore pertinent to state
here that the fifteen completed
projects and others in the pipeline
are direct reflection of the Iduwini
peoples input towards meeting the
developmental needs of the
communities in this cluster.”
Aside the fifteen projects which
he said were completed at the cost
of the N139, 862, 070.00 Geregere
said the foundation also disbursed
scholarship to one hundred and
eight beneficiaries at the cost of
N26m.
In his remark, His Royal
Highness I.B Ojukosin, Angolo I,
the Amananaowei of Aghoro II
community who spoke the mind
of the royal fathers present at the
occasion thanked the oil major for
the sponsoring the projects and
called on other multinational oil
companies in the area to emulate
SPDC gesture.
The royal also called on the
federal, state and local
governments to invest more in the
infrastructural development of the
oil producing communities
especially with the restoration of
peace so as to give the people a
sense of belonging.
Also an elated middle aged
woman, who simply gave her name
as Goldere said the event which is a
culmination of several months of
waiting represents yet another
important milestone of the
communities collective resolve to
better their lot and pleaded with the
relevant authorities to always give
priority attention to the oil
producing communities.
 71
The
Question

Jonathan, the Niger Delta

and nationhood
A lthough in theory,
Nigeria is multi-
ethnic and multi-
confessional, it is in reality
the country of the
Hausa/Fulani, Yoruba and
Igbo. In religious matters no
considerations are given to
animists, humanists, pagans
and Buddhists or the
sacrosanct exhortations of
Section 10 of the
Constitution. Christians and
Muslims, officially allotting
to themselves primacy in God
matters relegate the welfare
and patronage of other
religious faiths to the level
where their collective
contempt consign the
religions.
Water hyacinth The temporary ascendancy
of Dr. Goodluck Jonathan, a
son of the Niger Delta, to the
highest political office in
have joined them in
reminding the present
Commander-In-Chief of
what they idiotically
conceive to be his true place.
Those who argue that as a
member of the PDP, Dr.
Jonathan adopted the party
rules that threw him up,
forget that such club rules
offend the Constitution and
can only apply even within
the structure that adopted the
rules where there are no new
and intervening factors. In
any event those who seek to
preclude the Acting President
from the 2011 race because
he is not from the North are
the degenerate politicians
who have made it impossible
for Nigeria to achieve
Nationhood. Although
democracy permits the gang
up of a majority tribe for

Water hyacinth threaten

Nigeria has brought to the political advantage, the
fore the presumptuous
contest process cannot
'ownership' attitude of the
exclude any section and
tribal triumvirate that has
remain democratic. For
allotted 'turns' of governance
instance, the Zulus in the
to its members. In the guise

Ebelebe community
that the ruling Peoples
Democratic Party zoned the
presidency to the North,
whatever that means, for eight
unbroken years, Dr. Jonathan
has been reminded that the
Samuel OYADONGHA mistake that brought him to
has completely paralyzed both
power would terminate in
fishing and farming activities in
2011, when a Northerner
the area.
This is certainly not would regain power and serve
African National Congress
may deploy their numbers to
install their kind as the flag
bearer of the party but any
official arrangement that
excludes a minority
Afrikaner or Swazi or
Ndebele from presenting
himself for a political contest
the Zulus pretend a

E lebele community is one

of the several oil and gas
rich communities in
Ogbia local government area of
Bayelsa State.
The community is also known
for its production of farm produce
such as plantain, palm oil, cassava
and large fishing due to its fertile
land.
However, this is certainly not the
best of time for the natives of this
predominantly fishing and
farming but serene rural
settlement located in the outskirts
of Yenagoa the state capital as
they are groaning under the
onslaught of water hyacinth.
Unlike Odenwari and some
other oil rich communities in
Southern Ijaw council area which
are still battling to come to terms
with the recent tragic measles
epidemic that ravaged the area
and left several families mourning
the loss of their children, the
people of Elebele are on the verge
of starvation if nothing tangible is
done to rid the creek of the
invading plant.
Already, the people of this rural
settlement who are predominantly
farmers and fishermen and whose
live revolves around the creek can
no longer fish as well as access
their farmland due to the invasion
of the dreaded water hyacinth
plant.
This floating plant with thick,
the best of time for the
natives of this
predominantly fishing
and farming but
serene rural settlement
located in the outskirts
of Yenagoa the state
capital as they are
groaning under the
onslaught of water
hyacinth
glossy, round leaves, inflated leaf
stems, and very showy lavender
flowers has completely taken
over the community creek.
The water weeds which are
believed to have migrated from
the Orashi River in neighbouring
Rivers State have become a
constant source of pain to the
natives.
When Sweet Crude visited the
community it was observed that
the water hyacinth mats have
clogged the creek, making
boating, fishing and almost all
other water activities impossible.
Some of the natives who spoke
with correspondent expressed
concern over the invasion and
colonization of their creek which
They noted with sadness that
unlike their lucky Otuasega,
Imiringi and Oruma neighbours
which waterways were recently
rid of the water plant by Daewoo
out the 'turn' commenced by
Umaru Yar'Adua in 2007.
Some Northern politicians
who had retired from active
proprietary interest in, puts
the minority elements in a
position where they can
legitimately question and re-
politics having handed examine their nationality.
oil servicing operating in the area
Yar'Adua eight nice years are That is the predicament of
they are currently rendered the Niger Delta people in the
incapacitated by the water weed
back in the fray now.
Although we ought to chide present political situation
menace.
them for their initial surrounding Dr. Goodluck
An elderly man who identified Jonathan. Struggling forever
cowardice, one is of the
himself as Sample James,
opinion that they have as to enthrone a federal system
lamented that the cluster nature of
much right as any other where all states contribute
the weed on the creek has resulted
qualified Nigerians to present equal shares of their material
in situation where their farm
products especially plantain and
themselves for election. We and human resources for the
have nothing against those administration of the central
palm fruits are left to rotten in the
who are posturing to succeed interests (legislature,
bush because of their inability to
the Acting President in 2011 d i p l o m a c y, d e f e n s e ,
paddle through the weed.
as it is their right to challenge currency, etc) common to all
According to him, the plant not
an incumbent and even to and stop the forceful
only degrades the water quality
remove him from office if the appropriation of their
thereby reducing fishing
people support their resources for the benefit of
opportunities it also limits the use
aspiration and lack the commonwealth, they now
and makes it very difficult for the
confidence in the incumbent. also have to contend with the
natives who rely on it for bathing.
We are simply insulted by the derision of their minority
“As you can see, how do you
position of those who have status. There is no doubt that
expect me at my age to paddle
totally ruled out his what is happening today to the
through this dense mat called
participation in the next Acting President could
water hyacinth covering our
general elections because of happen to a minority from the
creek? It has not been easy for us
his ethnic affiliation. North or the Middle Belt but
here as our existence as a people
U n f o r t u n a t e l y, s o m e that does not make it right.
revolve around this creek,” he
governors of the Niger Delta Until every citizen can claim
told Sweet Crude.
who misapprehend the value an equal stake in the
“Continuing he said,
of their heritage in this opportunities thrown up by
“Sometime last month our youths
country and promote their our common patrimony, those
mobilized themselves to clear the
private political careers by who are kept out should not be
creek using local net and traps to
brazenly advancing the evil called upon to make sacrifices
clear the weed but the floating
agenda of the triumvirate for the common good.
mats have since multiplied and
completely blocked the creek.”