The Minister of Water Resources, Mrs. Sarah Reng Ochekpe, has stated that the Kashimbilla/ Gamovo multi-purpose Dam when completed in 2014, would add 40 megawatts of electricity to the national grid.

The Dam has the capacity to supply water of 60,000m3 per day for 400,000 people, irrigation of 2,000 hectares of farmland, including tourism and fishery potentials which would also alleviate poverty.

Ochekpe made the disclosure while inspecting the level of work on the dam alongside the Minister of State for Power, Darius Dickson Ishaku, and reiterated the determination of government to complete the project on time as promised, adding that government would ensure timely release of funds with the passage of the 2012 budget.

The minister promised to ensure timely release of funds for the hydropower component of the dam. He said with hard work and dedication on the part of the contractors and if the tempo of work was maintained, Nigeria can look forward to an additional 40 megawatts to the national grid which, “would be another step towards our hope of having uninterrupted light in Nigeria”

Ochekpe expressed her satisfaction at the level of work on the construction of Kashimbilla/ Gamovo multi-purpose buffer dam and associated structures.? “There is three times more? progress and massive improvement than what we saw three months ago.” She expressed optimism that if the tempo of work was maintained the contractors will be able to complete the work at the specified date”.

The minister noted that the turbines, irrigation components and reservoirs were some of the outstanding works which would ensure that the teeming youths were gainfully employed.

In his remarks, Ishaku said that though the hydropower component of the dam was just starting, he was however satisfied with the concrete work that has been done and expressed optimism that there would be substantial improvement by the end of 2012.

The National Union of Petroleum and Natural Gas Workers (NUPENG) has called off the nationwide strike it embarked upon on Tuesday to protest against some labour issues in oil giant, Shell.

Mr Tokunbo Korodo, Chairman of NUPENG in South-West, confirmed to the News Agency of Nigeria (NAN), in a text message, that the strike had been called off.

Dr Levi Ajuonuma, NNPC spokesman, had earlier informed NAN that the strike had been called off after the contentious issues were amicably resolved.

Meanwhile, the strike has caused? panic buying of petrol as many motorists in Lagos laid siege to filling stations in the aftermath of reports that NUPENG members had embarked on a nationwide strike.

The motorists said that were buying petrol in anticipation that the strike would cause petrol shortage.

A civil servant, Mr Sanni Abdul-Lateef, who was on the queue at MRS filling station in Alaka, told NAN that he got information late on Tuesday that NUPENG had embarked on an industrial strike.

“I don’t have choice than to queue at this? filling station to be able to buy fuel to power my generator and car.

“We hope that the strike will end very soon so that it will not cause another phase of economy sabotage in the country,’’ he said.

“Mrs Felicia Thompson, a businesswoman, who was also on the queue, said that scarcity of petrol would force motorists to buy at higher prices.

“This is why I am out to buy the fuel now,” she said.

Mr Muritala Sulaiman, MRS Manager, Alaka, however, said that the station had more than 5000 litres of petrol, but was experiencing power outage.

Sulaiman said that the station was having problems with its generators and this had limited its capacity to sell products.

The Department of Petroleum Resources (DPR) yesterday sealed off ten petrol stations in Kaduna State for involving in sharp practices ranging from diversion and selling of fuel above the price of 97 naira.

LEADERSHIP gathered that seven of the sealed filling stations were selling the product at about 100 to 125 naira per litre above the N97 benchmark price while three filling station were sealed off for diversion of the product delivered to them.

LEADERSHIP checks revealed that the three filling station sealed for diversion included, Porthworth NNPC Mega station, Barnawa, Kaduna, Total filling station in Zaria and Cidi global an NNPC mega station in Kaduna.

Read more later

President Goodluck Jonathan, has appointed Engr. Kenneth Achugbu, as the new chief executive officer of the Rural Electrification Agenda (REA).

The REA was established in 2006 following the passage into law of the Electric Power Sector Reform Act 2005, to carry out electrification in the rural areas of Nigeria both with grid and off-grid mode of electrification, but has been in limbo since 2009 following a N5.2 billion scam which rocked the agency.

Achugbu who is a COREN-registered engineer and a member of the Nigerian Society of Engineers, until his recent appointment, has been coordinating the activities of the REA for the past one year.

The Senate Committee on Ecology and Environment has urged the federal government to provide more funding for agencies responsible for monitoring the environmental impact of oil exploration to enable them function effectively.

Chairman of the committee, Senator Bukola Saraki, said agencies responsible for monitoring the activities of multinational companies in the oil rich Niger Delta were grossly underfunded for them to meet the challenges of the region.

Speaking to journalists at the Lagos airport, Bukola who spoke against the back drop of recent oil spillage in Bonga in the Niger Delta region, said the Senate Committee would ensure that global best practices in the oil region would be adhered to by oil companies operating in the area irrespective of the company involved.

The Senate yesterday said it never? at any time barred President Goodluck Jonathan from drawing from the 2011 Budget beyond December 31.
?

It Instead said it had rather empowered the President to extend the spending to March 31, 2012.
?

Chairman of the Senate Committee on Business and Rules, Senator Ita Enang, was quoted by some newspapers to have said that the 2011 budget would expire on December 31.
?

Enang was reported to have said that the process to empower the President to draw from the budget up to March 31, 2012, has not been completed.
?

But spokesman of the Senate, Senator Enyinnaya Abaribe, in a reaction yesterday said that Senator Enang was on his own, adding that “the executive wanted the extension and we gave them.”
He said the two chambers had earlier agreed to allow the president to extend the budget to March 31, 2012.
?

Also, the Senate Leader, Senator Victor Ndoma-Egba,in a separate reaction, said: “Those must be the personal views of Senator Enang because you can recall that the House of Representatives passed the new timeline and we concurred.
?

“You would also recall that in the course of the consideration of the virement, there was a joint resolution of both houses that the lifespan of this budget should be extended to March 31 and beyond that, both houses have concurred.
?

“So, there is no basis for Enang’s comments on the status of the budget…”
?

But Enang, in a reaction yesterday insisted that he was misquoted, saying he was aware of the said agreement to extend the life-span of the 2011 budget and therefore could not have said anything to the contrary.
?

The Federal Government has assured Nigerians that in less than 24 months, the current refineries in the country would become 90 per cent operational, and that the application of the money saved from the petroleum subsidy would generate over one million jobs, outside the multiplier effect that would result from investing the fund.
?

Speaking at a town hall meeting organised by the Newspaper Proprietors of Nigeria (NPAN) in Lagos yesterday to discuss the removal of fuel subsidy, Diezani Allison-Madueke, Petroleum Minister reminded discussants that the issue of subsidy removal actually started in 2003 with the removal of discount on prices of crude oil sold to the Nigeria National Petroleum Corporation (NNPC).
?

She assured that, with the removal of? petroleum subsidy, the current refineries in Port-Harcourt, Warri, and Kaduna would? become 90 per cent operational in at most 24 months. She said, the original builders of the refineries have been contacted and have agreed to turnaround the refineries within the period.
?

She assured that when savings from the petroleum subsidy was? put to use, over a million jobs would be generated outside the multiplier effects that would accompany the investments of the money.
?

But the problem is that Nigerians generally mistrust government due to the pattern over the years to promise without delivering on the pledges made to the people. Finance minister and coordinating minister of the economy, Ngozi Okonjo-Iweala, who made this submission said there? was need for a paradigm shift in the way government? dealt? with the people.
?

She admitted that the resistance to the policy was due to the poor delivery on government promises to the people over the years, adding that Nigerians should? give government the opportunity to regain the trust.
?

The Senate Committee on Environment and Ecology yesterday summoned the management of Shell Petroleum Development Company (SPDC) and officials of the ministry of environment over the oil spill in Bonga deep water facility off the coast of Nigeria.
?

Others stakeholders to appear before the committee are officials of National Environmental Standards and Regulation Enforcement Agency (NESREA) and National Oil Spill Detection and Response Agency(NOSDRA).
?

According to the chairman of the committee, Senator Bukola Saraki, who spoke on behalf of the committee, he said the committee would conduct a comprehensive investigation into the oil spillage.
?

According to him:“The information suggests that this spill has released over 30,000 barrels of oil spilled off the Nigerian coast. It will be recalled that the last time Nigeria had this level of spillage was in 1997 from Mobil producing facility in Nigeria.
?

“As a matter of urgency, one of the things we are trying to do? is to invite the managing director of NOSREA, NOSDRA, ministry of environment and the managing director of SNEPCO, the shell company involved. And we will visit the site as soon as possible to provide logistic support.”
?

Saraki decried the lack of technical equipment to control such situations by NOSDRA, the agency which he said was directly responsible for checking oil spill in the country.
?

“To the best of our knowledge NOSDRA lacks the necessary equipments such as boats, vessels to navigate the typical terrain where most of this spill took place. The agency now rely almost exclusively on the grace and benevolence of the oil companies in this case Shell,” he added.
?

The year 2011 is gradually coming to an end and the energy sector is still entangled in one controversy or the other. Despite its ambitious economic development programmes aimed at placing the country in the league of twenty most developed economies in the world by 2020 , the government is yet to come to terms with the urgent need to fix the sector and formulate policies that would enhance it, even in the new year .

Despite the fact that oil was first discovered in the 1950s , the year 2011 could not reverse the seeming jinx that tend to rubbish the fact that the country with proven oil reserves exceeding 9 billion tons cannot boast of functional refineries or utilise the natural gas reserves of over 5.2 trillion cubic metres which has? made it the world’s seventh biggest resource.

As usual , the country throughout the year under review relied heavily on its petroleum industry for economic growth? as the sector accounts for about 80 per cent of government revenues and provides 95 per cent of foreign exchange.

For? better part of the year, the sector apart from giant strides made by the private sector in the in gas distribution networking, it was the same old song? of promises , debates , accusations and counter accusations of fraudulent practices.

Oil exploration
Oil exploration in the country which slumped to the lowest in a decade after producers like Royal Dutch Shell Plc and Total SA, backed away from investment until the country’s petroleum sector improved in the year 2011 with the success recorded with the? amnesty programme of the federal government .

Attacks in the South-South by militants and armed groups including the Movement for the Emancipation of the Niger Delta(MEND), cut more than 28 per cent of the country’s oil output between 2006 and 2009, just as it deterred new investments.

The attacks which decreased after thousands of fighters accepted a government amnesty in 2009, brought some good tales to the nation’s oil exploration sector.

Shell sold some of its Nigerian onshore licenses to allow local producers and new investors to develop the deposits. The company’s decision to sell four out of a total of 34 blocks it holds in the country was recorded during the year.

According to its? Chief Financial Officer, Simon Henry , “The blocks sold and for sale represent less than 10 per cent of our production in Nigeria . So we’re really reducing the footprint and increasing indigenous participation.”

Power supply
Despite its pre-eminent role in global oil production, the country’s domestic power supply is under-developed, and shortages of power have hampered industrial growth.
As the country draws curtain on the year, the reality on ground seems not to reflect the efforts of the present minister, Professor Barth Nnaji, who adopted fresh strategies to boost power supply.

Nnaji , had at different? fora said the various power plants in the country would be repositioned to produce over 5000 Mega Watts of power before December this year.

? The minister of who undertook the tour of? power facilities with the Minister of Information, Mr. Labaran Maku, said the federal government was determined to ensure? that the problem of power failure was a thing of the past.

Amid palpable challenge of shortage of gas supply to the power generation plants , funding, inadequate power generation, radial and fragile grid , obsolete equipment and transmission line redundancy, the minister was very optimistic as the year rolled –by that the country would have power sufficiency within the shortest possible time.
He consistently maintained that the present administration was? aware that Nigerians desired stable power , pointing out that it has become a strategic national objective to which the nation was committed to change its economic fortunes.

More than ever before, there was a sincerity of purpose on the part of government to achieve the quest? for a? stable? power? supply through the Independent Power Producers (IPPs), even as the federal government’s plants were constantly been overhauled to recover lost capacity.
Nnaji at Egbin Power Plc located in Lagos said the federal government would? immediately disburse N1.5 billion required to complete repairs of the ailing ST-O6 for it to function at its full capacity.

? One of the novel ideas in the sector that was also vigorously pursued during the year under review was the issue of privatisation.

He said: “ Privatisation is about money.We want all the units of the 1320 mega watts of power be provided for Nigerians. Let us even consider expansion of the plants .There is nobody in the country that will take up the power plants and operate it the way it is . It would be operated above its original capacity.”

During the year, some of the impediments to effective power generation was also uncovered by the minister when he visited the Olorunsogo Power Station located in Ogun State.

There it was discovered that the Chinese operating the plants were frustrating power generation efforts by refusing to transfer the technology and manual of its operation written in Chinese language , just as they were accused by the management to have developed the penchant of ridiculing Nigerians and deserting the plants at will.

These efforts soon waned into despair with the shutting down of the nation’s biggest electricity generating plant which is the Egbin Power Station located?? in Lagos with its attendant loss of 1,080 megawatts.

The Chief Executive Officer, Egbin Power Plc, Mr. Mike Uzoigwe, confirmed the development and said the shutdown was caused by equipment failure, saying? before the setback,the station was contributing about 1,080MW to the national grid.

When it finally commenced operations less than 48 hours after it was shut down due to the said equipment failure it could only recover about 400 megawatts out of the 1,080 it lost .

The Chief Executive Officer, Egbin Power Plc, Mr. Mike Uzoigwe, simply told disillusioned Nigerians that “Unit 2 and Unit 5 are back. Unit 1 is now okay, but not connected to the grid yet. The two working units are altogether doing less than 400MW

Fuel subsidy bogey??
Debate on the contentious issue of fuel subsidy removal by the federal government? took the centre stage in the oil sector dividing members of the Organised Private Sector (OPS)? and every other segments of the society, with stakeholders taking different position on the issue.

While the government maintained that fuel subsidy removal would help to revamp the nation’s economy , many other stakeholders including the religious leaders and former President Olusegun Obasanjo to mention but a few said its removal would inflict more hardship on Nigerians.

Gas project
To this end, energy experts who appraised the sector during the year noted that the ongoing debate over the federal government’s decision to remove subsidies from petroleum products underscored the need to focus on alternative sources of energy needed for both domestic and industrial uses.

The private sector operators in the energy sector rose to the occasion with investments in alternative and cost effective energy fuels.
One of such projects in the year 2011 is the 128km Akwa Ibom-Cross River natural gas pipeline constructed by a subsidiary of Oando Plc, the Eastern Horizon Gas Company, for the Nigerian Gas Company.

The project, was conceived by the Nigerian Gas Company, mid-wifed by Oando Gas and Power, an indigenous company, financed by a consortium of Nigerian banks comprising First Bank, Kakawa discount House, FSDH Group, First City Monument Bank Plc, Access Bank Plc, Fidelity Bank Plc, Ecobank Nigeria Plc and Sterling Bank Plc and executed by a Nigerian contractor, Oilserv.
The project, which was commissioned within the year, not only guarantees the supply of affordable energy sources but also opens up the south-south to industrial growth.

Petroleum product scarcity
The sector witnessed soaring price of Kerosene and cooking gas in the country , compelling? many people to resort to alternative sources, like firewood, charcoal and saw dust.

This is despite the fact that Nigeria is the world’s sixth largest exporter of crude oil. Kerosene, an essential product in most households, did not suddenly become expensive and scarce at major filling stations in the country, the price of cooking gas also went through the roof by over 7 per cent in most parts of the country .

While Kerosene sold for N170 per litre at filling stations in Lagos and neighbouring states in the year, to fill the 12.5-kilogramme cylinder costs consumers at N3,200 at most LPG plants and N3,400 and N3700 at retailers’ out-lets.
?

JULIET ALOHAN who? just returned from the 20th World Petroleum Congress in Doha, Qatar, takes a look at Nigeria’s outing at the conference and examines the possibility of achieving its set targets of becoming a huge exporter of refined products and ultimately the world’s largest producer of liquefied natural gas.

The just concluded World Petroleum Congress (WPC) in Doha, Qatar drew participants from all over the world with Nigeria making an impressive outing.

The event which held from December 4-8, for the first time in the Middle East since its inception 20 years ago, gave Nigeria another opportunity to showcase the abundant resources the nation is blessed with before the world with a view to wooing investors to its oil and gas sector.

The desire of the federal government, according to the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who led a powerful Nigerian delegation to the conference, is to become an export hub of refined petroleum products by 2015, and ultimately the world’s largest exporter of liquefied natural gas.

Speaking during her ministerial presentation, Madueke told the world that the federal government was targeting $130 billion investment inflow in the oil and gas sector even as it aspires to grow oil production to 4million bpd by 2015. Similarly, she said government desired to grow gas production to 5billion cubic feet per day at the same time from current levels of 1billion cubic feet.

She listed plans put in place by the government to achieve the target to include the construction of additional 2,000 km pipelines across the country to meet the envisaged requirement in the industry within the next five years, in addition to the existing 5,000 km pipeline of both oil and gas. Also listed amongst the plan was the establishment of an enabling environment for investment.

The Petrochemical plant in conjunction with Zenel Group, she said, should be up and running by 2015, while the food fertiliser plant as well and the blending plants would also be up by then, while informing that final negations with the original builders of the nation’s three refineries were being finalised for the purpose of transparency and elimination of the abuses associated with past turn-around maintenances.

“Port Harcourt refinery will kick off in a couple of months once we finish the negotiations; they (original builders) have assured us that the refinery will be up to 90 per cent utilisation. Warri and Kaduna refineries will be phased in over the next 12 months, and by the time we finish in two years time we should have 90 per cent utilisation in all three refineries,” she assured.

She said final negotiations with the green field refinery consortium would begin in a month’s time, having just concluded the feasibility study. “We are moving into final negotiations, hopefully within the next quarter we will kick off with the green field refineries and we have a time period of 36 months to be up and running fully and that will give Nigeria another 445,000 bpd in refining production. It will mean that in three years approximately we will become a huge exporter of refined products,” she said.
Furthermore, She noted that the successful implementation of the amnesty programme which has restored peace to the Niger Delta resulting in the increase of crude production to 2.4 million barrels per day from 700,000 bpd in 2009, was among reasons aspiring investors should be sure of their investment safety and returns, adding that the federal government has worked out different investment partnership models to guarantee quick return on investment to all investors.

The Petroleum Industry Bill (PIB) currently before the National Assembly, when passed, she said, would further help transform the sector, adding that it was designed to protect the interest of both the Nigerian government and its investment partners. While informing that the sub-sahara gas pipeline was still very much on the front burner, she assured that the Brass and OK LNG projects should come on stream soon.???

Areas open for potential investment according to the minister, include engineering design services, petroleum engineering services, fabrication and construction, civil works, logistics and haulage as well as financial services.
While calling for foreign intervention in these areas, Madueke, however, opined that although Nigerian indigenous companies have shown strong capabilities since the advent of the Local Content Act, more foreign investments were still needed to help increase the quantity and the quality of in-country capacity.

In his remarks, the Director, Department of Petroleum Resources, Osten Olorunshola, noted that Nigeria’s transformation agenda of the oil and gas industry was still hinged on the passage of the PIB. While noting that it would be desirable to have the PIB passed as soon as possible, he said there were however, certain aspects of the PIB that do not have to wait for its passage before the ministry can start working and wooing investors ahead of its passage.

Also speaking with LEADESRHIP on phone, an industry expert who did not want to be named, opined that the country can achieve its set target within the period if the PIB was passed early. “We can become the world’s largest producer of LNG if we want to, we have the resources. We are only where we are now because of lack of will to make things better. Should our refineries work at full capacity, and we put an end to gas flaring, we can achieve the target,” the source said.

He however, stressed that the passage of the PIB would help clear the doubts presently entertained by investors who would naturally aspire to invest in the country. “At the moment, most investors are skeptical of their investment safety, only the passage of the PIB can help clear their doubts. By then they would know what they are going into and what their options are,” he stated.????

To an observer, it would seem that the NNPC mega station along Argungu Road,? Birnin Kebbi, Kebbi State has been taken over by shylock kerosene dealers.

Kebbi State, like any other in the country, is supplied with the commodity for the benefit of the people, but it does not get to them, as people continue to suffer for it because dealers come from different locations, including the neighbouring Sokoto State, to load trucks to Niger Republic.?

Our reporter’s findings revealed that whenever the product was brought to the NNPC mega station in Birnin Kebbi, the officials always connived with these dealers to sell the product at a higher price? than the official N50 per litre tag, which, according to them, “is more profitable than selling to the consumers”. Imagine a litre of kerosene selling for between N150 and N180 in black markets.

A source close to one of the dealers revealed to this reporter that when the trucks were loaded, instead of being supplied directly to the people, it is spirited through Sokoto to Illela, into Niger Republic where they make more profit.???

Last Monday, a resident, Sunday Aliyu, informed this reporter while he waited for kerosene, that: “Today is my second day? here, though all I want to get is just 10 litres of? kerosene. But as I am talking to you, I have no hope of getting the kerosene. The funny thing is, while I was here, about four trucks were loaded with the 30-litre jerry cans, despite the presence of the security men deployed to the station.”? He branded one of the managers of the station responsible for overseeing kerosene sales, Oga Kabiru , as “the wicked man who always instructs the attendants to concentrate on their business associates, instead of selling to consumers who do not buy in large quantities, because they do not gain anything from us.”

A septuagenarian, Malam Yahaya Attahiru, could not disguise his disdain for and dissatifaction with the way and manner in which the kerosene was being sold at the station, and called on the authorities concerned to “please, find out what is happening and punish anyone caught in connection with this bad habit, as the country is now on the move to fight corruption. We are hoping that the bad eggs will be flushed out of the system,” he said.

One of the dealers, Malam Sani liman, told this reporter that: “People have been accusing us of dominating the mode of the distribution of kerosene by the NNPC for long. I have to tell the world that? the allegation is not true, and that the reason they concentrate on us is this: whether the kerosene is available or not, we do associate with these other bulk dealers. For the normal customers, they only show up when the product has been supplied. I also want to clearify this: we do not smuggle the product. Rather, we take it to places like Yauri, Zuru, Kamba and other areas where we can make more profit. What is wrong with that?” he queried.

The Federal Government yesterday disclosed its desire to become the world’s largest producer of Liquefied Natural Gas (LNG) by increasing production capacity from the current levels by five times.

The government’s intention, according to the Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation (NNPC), Dr. Levi Ajuonuma, is to take advantage of the on-going 20th World Petroleum Congress (WPC) in Doha, Qatar, to seek partnerships.

Ajuonuma, who further disclosed to journalists in Qatar that government seeks to secure partnerships in the proposed LNG plants, particularly the Brass LNG and Ok LNG, explained that top government officials have arrived in Doha to unveil opportunities for investors in the nation’s gas sector with a view to achieving President Goodluck Jonathan’s desires for the sector.

He said, Nigeria’s intention is to surpass Qatar, currently the world’s largest LNG producer.

He said, “We have abundant proven natural? gas deposit capable of increasing? Nigeria’s LNG production capacity from the current levels per annum by five times which would make Nigeria to surpass the capacity of Qatar, the world’s largest LNG producer.

He added; Nigeria has the best natural gas and incentives for investors. “There is improvement in security just as the government is willing to receive all investors.”

The NNPC spokesman noted that various incentives have been packaged for prospective investors willing to take advantage of the gas revolution unveiled by the Federal Government.

He expressed optimism that the unveiling of the Nigerian stand in Qatar, scheduled to take place today by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, would attract chief executive officers of multinational oil companies willing to acquire stake in the proposed LNG plants.

Ajuonuma further revealed that top officials of the ministry of petroleum resources and the NNPC will be available at the stand to answer questions from prospective investors who would partner with the Nigerian government towards developing its gas deposits and becoming the world’s largest LNG producer.