All Posts in "Day: September 1, 2022"
Insecurity: FG Plans 2.5MW Solar Power Plant In NDA
Alimosho, Ikorodu, Others Record Highest Cases Of Sexual Violence
Why PIA Will Guarantee Investors’ Confidence
The new Petroleum Industry Act will enhance investors’ confidence in the Nigerian oil and gas sector due to the possibility of recouping such funds, Head, Gas and Power for Quest Oil & Engineering Services, Engr. George Amara ,has said.
Amara,who spoke at the recent concluded Strategic International Annual Conference 2022 organized by the Association of Energy Correspondents of Nigeria (NAEC) in Lagos, also said the development will ensure successful transitioning of the Nigerian oil and gas industry.
Speaking in one of the panel sessions on the theme: Energy Transition, Shaping the future of Nigeria’s Energy Industry, an appraisal of PIA, evolving benefits and challenges, Engr. Amara, further said that the stakeholder-based inclusiveness framework and market-driven nature of the Act, provides a transparent platform for both the regulators and operators to work together, where the former acts as partners in progress.
He emphasized the need for stakeholders to collaborate in order to succeed in this transitioning phase of the industry”.
Supporting the call for right pricing of petroleum products, Engr. Amara maintained that it was imperative for market forces to be given the right of way to encourage competition within the industry as in other climes.
He explained that this will drive growth and development of the downstream Oil and Gas sector.
Engr. Amara also emphasized the need for local refining of the petroleum products in order to lower the operational/logistic costs, create employment in-country and harness the entire value chain benefits of the petroleum and other related industries.
Another panelist on the session, the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Comrade Festus Osifo, noted that in order to build lasting success in the industry, government needs to prioritize the refineries. According to him, this has the potential of producing a multiplier effect of better pricing and ensuring availability of products for the Nigerian people.
The NAEC Strategic Conference is an annual event which brings together leaders, captains of industry, government and policy makers as well as the media to discuss strategies that will promote better management of the industry and enhance collaboration between the government and private sector players and ultimately navigate the emerging business environment.
Churches, Mosques, Security Agencies Involved In Oil Theft -NNPCL
The Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited (NNPCL), Mele Kyari, has again raised the alarm over the involvement of communities and religious groups in theft of petroleum products in the country.
Kyari stated this at the weekly Ministerial Media Briefing organized by the Presidential Media Team led by Mr. Femi Adesina, the President’s Special Adviser on Media and Publicity.
He said churches, mosques, security agencies as well as communities where pipelines pass through were involved in pipeline vandalism and theft of petroleum products.
The NNPC, in conjunction with security agencies, he said, had destroyed 959 metal tanks for storage purposes, 737 ovens, 452 dug-out pits, 355 cooking pots, and 179 wooden boats between April and August, this year.
He added that the security officials also recovered 207 pumping machines, 12 welding machines, two power generators, and two filling machines.
Kyari said 11 vessels, 30 speed boats, 37 trucks and cars were impounded, while 122 suspects were arrested in connection with various cases of theft of petroleum products.
He said:” As you may also be aware, because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan, and all others connecting all the 37 depots that we have across the country. You know, none of them can take delivery of products today.
Kyari said:” And the reason is very simple. For some of the lines, for instance, from Warri to Benin, we haven’t operated that line for 15 years. Every molecule of product that we put get lost. And of course, you remember the tragic fire incident very close to Warri, close to Sapele that killed so many people.So, we had to shut it down and as we speak, the level of losses that we have on our product pipeline, and I’m sure you may have seen it and I’ll invite you at the right time so we can take a look at it jointly.”
He also recalled the fire outbreak happened in the Lagos area, adding,” in one of our pipelines, we discovered that some of the pipelines were actually connected to individuals homes.
” And not only that, and with all sensitivity to our religious beliefs, you know, some of the pipelines and some of the products that we found, were actually in churches and in mosques. That means that everybody is involved. There is no way you will take products, bring in trucks in populated neighborhoods, load it and leave without everybody else knowing about it.
” That everybody includes members of the community, members of the religious leadership and also and most likely government officials of all natures, including security agencies personnel. They are everywhere. And I’ve seen this even in the Niger Delta. There’s no way you would deliver a volume and lose up to 30 per cent and you will continue to put that products in this line.”
He revealed, the NNPCL had recovered 35.8 million litres of the stolen crude oil, 22 million litres of diesel, 0.15 litres of petrol, and 0.76 million litres of kerosene. (NAN)
Nigeria Needs $20bn Annually To Fix Gas Infrastructure Deficit
Zipline, Jumia Partner On Drone Delivery Of Products In Africa
Jumia , the leading e-commerce platform in Africa, and Zipline, the world’s largest instant delivery service, announced today a collaboration to deploy automated, on-demand delivery for e-commerce in Africa.
Pilot program and testing were launched a few months ago in Ghana,a statement said.
The collaboration will integrate Zipline’s automated, on-demand delivery system with Jumia’s existing distribution network to enable customers to receive instant, on-demand delivery of exactly the products they want, exactly when they want them and from the comfort of their homes.
“Using the latest instant logistics technology will allow Jumia to offer our consumers on-demand delivery of the products they need – instantly. Whether they’re ordering electronics, fashion, health, and beauty, or other categories, Zipline’s instant logistics system will provide fast and convenient access. This will support Jumia’s commitment to sustainability and innovation and provide much-needed access to rural and remote areas where conventional delivery services have challenges”. said Apoorva Kumar, EVP Jumia, Group COO.
An initial pilot was carried out across multiple use cases with varying product assortment logging up to 2,500km in testing.
Deliveries to outlying Jumia hubs as far as 85km from the take-off location at the Zipline operational hub in Omenako (Ghana) were completed in less than 1h with real time visibility of the drone for all stakeholders in the delivery cycle.
Eventual plans call for expansion to Cote d’Ivoire and Nigeria, and ultimately to other countries in the future.
“Zipline is pleased to partner with Jumia to use instant logistics to improve the lives of customers across Africa. This collaboration will increase access to goods for customers and help small and medium sized businesses grow. Zipline’s safe and efficient instant logistics system will make shopping on Jumia even more convenient, sustainable and accessible for its customers”, said Daniel Marfo, SVP – Zipline Africa.
Jumia’s logistics network includes 30+ warehouses and 3,000+ drop-off stations and pick-up stations, located across Jumia’s 11-country market. In 2020, Jumia announced that its logistics service would now be available to third parties seeking to leverage the network, technology, and expertise for last-mile deliveries across its 11 countries in Africa.
Zipline’s instant logistics system, on the other hand, is made up of a world class autonomy platform, fleet of light, electric aircraft, and flight management systems that reduce green-house gas emissions by 98% compared to delivery by car.
This system is designed to enable all consumers, from the most urban to the most remote, to access the products they need in 45-minutes or less while reducing the carbon emissions of last-mile delivery up to 98% compared to traditional cars.
Jumia’s partnership with Zipline is part of its commitment to providing affordable and eco-friendly delivery of online orders for consumers.
Nigeria Rakes In N799bn From Oil Sector
The Central Bank of Nigeria (CBN) has disclosed that the country generated N799.10 billion from the oil sector in the first quarter of 2022.
This represents a 28.3 percent decline from N1.11 trillion it recorded in the fourth quarter of 2021.
The apex bank, in its economic report for the first quarter of 2022,also said the figure was 66.4 percent below the projected revenue.
On the other hand, non-oil revenue in the quarter under review was N1.73 trillion, a 0.13 percent increase from N1.72 trillion in the previous quarter. However, the figure was 22.1 percent below projected earnings in Q4.
“The uptick in earnings, relative to 2021Q4, was attributed, largely, to a significant increase in collections from value-added tax and Federal Government independent revenue,” the report reads.
“Improvement in these revenue components underscored the intensification of non-oil revenue drive through broadening the tax net and plugging of revenue leakages, particularly, in government-owned enterprises (GOEs).”
The report said that non-oil revenue accounted for 68.4 percent of the total federation account remittances, while oil revenue contributed 31.6 percent to federation account collections. “Federation account operations receipts into the federation account declined by 2.5 per cent and 45.0 percent, relative to the preceding quarter and target, following a sharp decline in oil revenue sources,” the report added.
“Gross federation receipts in 2022Q1 amounted to N2.530.49 billion. This compares with N2.594.26 billion in 2021Q4 and the benchmark of N4.598.25 billion.”
The apex bank said the observed drop in federation receipts was triggered by the decline in all components of oil revenue.
It said the fiscal deficit of the federal government was N1.6 trillion, 11.8 percent below the level in the previous quarter.
Shell, ZIM Seal $ 1bn LNG Deal
Shell has sealed ten-year marine Liquefied Natural Gas (LNG) sales and purchase agreement with Israeli container shipping company, ZIM valued at more than $1 billion.
The deal is intended for ten LNG-fueled vessels that will be deployed on ZIM’s flagship ZIM Container Service Pacific (ZCP), on Asia to USEC trade.
These ten 15,000 TEU vessels are expected to enter into service during 2023-2024 and will be transporting goods from China and South Korea to US East Coast and the Caribbean.
The vessels have been chartered from Seaspan Corporation. The charter agreement, announced in February last year is also valued in excess of one billion dollars.
The construction of the vessels has already been launched with South Korean shipbuilder Samsung Heavy Industries (SHI) completing the keel-laying for Sammy Ofer dual-fuel containership at its Geoje yard.
On the basis that LNG emits ~20% less GHG emissions when compared to conventional marine fuels, using LNG on these ten ships is equivalent to having two out of the ten vessels in the fleet with zero emission, ZIM said in a statement.
“With the addition of significant LNG-powered capacity to our fleet, beginning in 2023, we have positioned ZIM as a leader in carbon intensity reduction among global liners. We are pleased to execute this long-term supply agreement with Shell to secure LNG at competitive terms and look forward to partnering with a global industry leader such as Shell as we take an important step to ensure our fuel sourcing is well planned and of the highest quality,” said Eli Glickman, ZIM President & CEO.
“We are delighted to collaborate with ZIM on their impressive efforts to reduce emissions in their maritime supply chain. Decarbonization of the shipping industry must begin today, and LNG is a lower emission fuel choice currently available in meaningful volumes, and via liquefied biomethane and liquified e-methane, offers a credible pathway to net zero GHG emissions,” said Steve Hill, Executive Vice President, Energy Marketing at Shell.
Akeredolu Picks Holes In FG’s N48bn Pipeline Protection Contracts
Ondo State Governor Oluwarotimi Akeredolu has faulted the reasons for the award of N48billion contract for the protection of oil pipelines against vandals to an individual by the Federal Government.
He faulted the defence of the Group Chief Executive Officer of the Nigeria National Petroleum Company(NNPC), Mr. Mele Kyari, on the contract.
He accused the Federal Government of covertly permitting non-state actors to bear heavy assault weapons while denying the same privilege to the federating units.
Kyari had claimed that: “We need private contractors to man the right of way to these pipelines. So, we put up a framework for contractors to come and bid and they were selected through a tender process. And we believe we made the right decision.”
But said the award of the contract to a private organisation, raised fundamental questions on the sincerity of the advisers of the government on security issues.
He said: “The engagement of private organisations to handle serious security challenges reinforces the belief that the whole defence architecture in the country needs an urgent overhaul. It is safe to conclude that the Federal Government has, impliedly, permitted non-state actors to bear heavy assault weapons while denying the same privilege to the States, the federating units.
“The news concerning the purported award of pipeline contracts to some individuals and private organisations by the Federal Government has been unsettling. More disquieting is the barely disguised hostility displayed against either the idea or the actual establishment of security outfits by some State Governments to fill the widening gaps in the scope of security coverage noticeable nationally.
“The Federal Government, through the Office of the National Security Adviser, has been consistent in its refusal to accede to the request by some States in the Federation to strengthen the complementary initiatives adopted to protect lives and property. This is done despite the knowledge that the very issues which necessitated the creation of these outfits support providing adequate weaponry.
“All attempts to persuade the Federal Government to look, critically, into the current security architecture have been rebuffed despite the manifest fundamental defects engendered by over-centralisation. It is, therefore, shocking to read that the Federal Government has maintained the award of the contract to “protect” the country’s pipeline from vandals to private organisations.
“This story, if true, leaves a sour taste in the mouth. The NSA will, obviously, not advise the President to approve the award of a contract of such magnitude if the operators have not displayed sufficient capacity to checkmate the criminal activities of equally powerful groups.The open and seeming enthusiastic embrace of this oddity, despite the constant and consistent avowal of the readiness by the Security Agencies in particular the Navy to contain the pervasive and deepening crises of breaches and threats to lives and property, attracts the charge of insincerity bordering, deplorably, on dubiety.
“If the state overnments, which are keenly desirous of protecting their citizens, establish ancillary security outfits and there has been pronounced reluctance, if not outright refusal, to consider permitting them to bear arms for the sole purpose of defence, granting private individuals and or organization’s unfettered access to assault weapons suggests, curiously, deep-seated suspicion and distrust between the Federal Government and the presumed federating units.The engagement of private organization’s to handle serious security challenges reinforces the belief that the whole defence architecture in the country needs an urgent overhaul. The Federal Government cannot be seen to be playing the Ostrich in this regard.”