Nigeria
S04 ORA 5 2012 Nigeria_Layout 1 02/10/2012 16:05 Page 26
Shell Nigeria sells OML stake to Elcrest
Nigeria pledges support for local oil firms
SHELL PETROLEUM DEVELOPMENT Company of Nigeria (SPDC), a subsidiary of Royal Dutch Shell (Shell), has completed the US$102mn sale of its 30 per cent interest in Oil Mining Lease (OML) 40 in the Niger Delta to Elcrest Exploration and Production Nigeria The divestment is part of Shell's strategy of refocusing its onshore interests in Nigeria and is also in line with the Federal Government of Nigeria's aim of developing Nigerian companies in the country's upstream oil and gas business. Including this license, six onshore lease assignments have been completed by SPDC in Nigeria since 2010. "These divestments mark another step in the strategy to re-focus the SPDC portfolio,” said Mutiu Sunmonu, the company’s country chairman in Nigeria. “SPDC is positioned well for investment and growth opportunities in all areas, including domestic gas, which will be delivered with the support of our government, partners and the people of Nigeria." Shell, which has been in Nigeria for more than 50 years, has stated that it remains committed to keeping a long-term onshore and offshore presence. Elcrest Exploration and Production Nigeria Limited is a majority Nigerianowned consortium consisting of Starcrest Nigeria Energy Limited and Eland Oil and Gas Limited. OML 40 covers an area of nearly 500 sq km and includes the Opuama, Abiala and Adagbassa Creek fields and related facilities. Operations had been suspended since 2006 because of militant activity. Total E&P Nigeria Ltd (10 per cent) and Nigerian Agip Oil Company Ltd (five per cent) have also assigned their interests in the lease, effectively giving Elcrest a 45 per cent interest.
NIGERIA’S PETROLEUM MINISTER, Mrs Diezani Alison-Madueke, has reiterated the government’s support for local oil companies in all aspects of the oil and gas sector, saying plans were in the works by the government to raise funds in support of genuine local investors wishing to exploit opportunities in the sector. She spoke at the inauguration of Orient Petroleum Plc’s Anambra River Production Facility in Aguleri-Otu in Anambra State, the first oil production from an inland basin in Nigeria. According to Alison-Madueke, President Goodluck Jonathan has directed both the Ministry of Petroleum and the Ministry of Finance to set up an inter-ministerial committee to fashion out modalities for raising financial support for indigenous oil companies like Orient who are ready to invest not only in production but also in refining to add value to the crude oil and gas locally before exporting in order to generate employment for the youth and more money for the country. Maintaining that the significance of the event was not just in the discovery and production of oil from an inland basin, she said the good thing was that the achievement was by an indigenous company. “This shows the way we want to go in the industry; we want to encourage more indigenous oil companies to emulate Orient Petroleum Resources in investing not just in production but also in refining. “We are working with the Ministry of Finance to set up an inter-ministerial committee to work out ways to give financial support to indigenous companies to bring in modular refineries,” she stated.
NNPC, NCDMB to integrate Nigerian Content into refineries THE NIGERIAN CONTENT Development and Monitoring Board (NCDMB) and the Nigerian National Petroleum Corporation (NNPC) have resolved to integrate Nigerian Content into downstream operations of the oil and gas industry, including the Turn-Around Maintenance (TAM) planned for the four refineries within the next two years. This was part of the strategic agreement reached between the top management of NNPC led by the Group Executive Director, in charge of Refineries and Petrochemicals, Mr. Anthony Ogbuigwe and the Executive Secretary of NCDMB, Mr. Ernest Nwapa in Yenagoa. Nwapa said appreciable progress had been achieved in the upstream subsector of the industry where his agency had set up an effective process for interfacing with operators and service companies to positively influence their activities, pointing out that a similar model needed to be worked out for the downstream. To achieve this, Nwapa said: "Institutional synergies must be enhanced at strategic levels, where the NCDMB would be able to obtain the subsector's long term plans, so as to identify opportunities, devise programmes and interface points that will best grow Nigerian Content in the downstream without disrupting operations". This, he said, would "engender job creation, spur local equipment manufacturing, retain spend, transfer technology and deliver other benefits of implementation".
26 Oil Review Africa Issue Five 2012
Private sector gas project A MULTI-BILLION naira gas project that will boost power generation in Nigeria by 1,000 MW, could be ready for commissioning by the end of the year. The project is being executed by a consortium of private investors which include Frontier Oil Limited, Gulf Energy Nigeria Limited and Septa Energy Nigeria Limited, in the Esit Eket Local Government Area of Akwa Ibom. Briefing the Akwa Ibom Governor, Chief Godswill Akpabio, in Uyo, the Chairman of Frontier Oil Limited, Chief Odoliyi Lolomari, said that the plant had the capacity to produce two million cubic feet of gas. Lolomari, who led management teams of the three companies, said that the 62-km gas pipeline from Esit-Eket area to Ibom Power Plant and Aluminium Smelter Company of Nigeria, ALSCON, all in Ikot Abasi Local Government Area, would also be ready. The chairman described the plant as an important project and a major milestone in the life of Frontier Oil Limited. Responding, Akpabio thanked the companies for the successful completion of the project. He said that the project was strategic to the transformation agenda of President Goodluck Jonathan in the power sector. “This is a practicable step by the private sector to look into gas flaring; Akwa Ibom is proud to partner with you on this project. “We will continue to encourage you. We will encourage every private industry, at least one in every local government area, to create employment opportunities for our children. “We have set aside funds to encourage the private sector to establish the industries. The oil and gas industry should also invest in other sectors, particularly the agro-allied industry.” The governor lauded the cordial relationship between the companies and the host communities and urged them to create employment opportunities for indigenes of the host communities. The MD of Frontier Oil Ltd, Mr Dada Thomas, said that the company had made substantial progress in the ongoing Uquo Field development and construction of the gas plant. He requested President Goodluck Jonathan, through Akpabio, as well as notable players in the power and petroleum sector, to witness the inauguration of the projects.