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FocusFocus 16

Bristow Nigeria buildsPort-Harcourt hanger

opportunities are back for renewal. And that is the industry, except all those in control by the oil companies and its tied to their projects. Therefore, we are hopeful of having succour between 2015 and 2016 when the tender market will come up again. At t h a t t im e w e w i l l b e appropriately seized for those opportunities, we will have the right people, aircrafts and facilities to be able to win them.

Can you address your plans to expand and the growth in market share in the face of the security situation in the country? Security remains a huge cost for us. The reason for that is we are scared because of the happenings up North. And people believe somebody may attempt to do something down south. So, if you look at our facility in Port Harcourt today, we have beefed up security; we have several baggage scanners and metal detectors. We didnt have those things before. You dont just buy two, you have to acquire four. We had to take on more people, and we have to do security checks at different points before one board the aircraft. So, substantial amount of money goes into security on a daily basis. This is the reality in Nigeria today and the reality in the world generally. Fortunately, when the late President made that decision (of granting Amnesty to militants), he made a huge

Bristow helicopter

CONTINUED FROM PAGE 15 change in Nigeria which has not been fully recognized out there. Without that, today, we probably will not be operating in Port Harcourt, we certainly wouldnt be operating in Warri, and neither would companies be in operation in Warri. It would have been extremely difficult for anybody to get anything done. Amnesty made a huge difference to Nigeria and it is a pity that nobody has really sat down to quantify what that did. I see the programme has made Port Harcourt become the vibrant place it used to be again. Although I havent seen much in Warri but it will happen. We certainly feel it; I can go to Port

Harcourt, we can move our expatriates around, previously we couldnt. They were in the bus and went in-between the accommodation which was heavily fortified. We have seen that change, but could that have happened without the a m n e s t y. I m p o s s i b l e ! Impossible! We were receiving bullets in aircrafts back then.

We have got pictures of bullets that went through our aircrafts. There were several areas that we couldnt even fly into back then and everywhere we flew i n t o w e h a d t o d o a reconnaissance. We shouldnt be flying in conditions like that, we are commercial operators.

Earlier, you talked about

expenditure on hangar expansion. How much level o f N i g e r i an c on t en t imp l emen t a t i on wa s achieved? These are infrastructures built in Nigeria; the hanger, etc. I will never be satisfied with the level of Nigerian content. In our industry, to get an appreciable level of Nigerian content you really need to build an aircraft in Nigeria. In the oil industry we are talking about ownership of the assets, what they are beginning to do is that they are building pipes in the industry, plants. What we should be talking about is building an aircraft in Nigeria even if it is assembling a helicopter.

How far are we from building an aircraft in Nigeria? A long way off, the only way I could see that happening is in a sort of joint venture. We are talking about 30 aircrafts to be bought, but I wouldnt do that without pushing for an assembly plant, even if it was for the very basic aircraft that could be used as a regional carrier. I wouldnt invest that sort of money without pushing for this, the Chinese do it. That way, we set standard for aircraft to be used in Nigeria. If buying the 30 aircrafts is true, I would insist that we use the platform to put something on ground here, because we learn in that process. And the multiplier effect that the people are going to enjoy is

huge. Basically, we are a long way from building aircrafts in Nigeria.Even if we are, do we have the capacity?We dont have the people, lets be frank with ourselves. There are a lot of reports by aviation personalities on building maintenance facilitate in Nigeria to work on large aircrafts, but we do not have the people to support that maintenance facility. I can say that openly because in Bristow here we are far ahead of any other operator in-country because we invested here and with the number of people that we have trained. Every other investor knows how much we spend in this area. We spend a lot at Zaria training pilots. This year it is $8 million on people going out to attend training and retraining; our pilots are attending course on h e l i c op t e r t ax i ing and operation. So, that one side of it and if I look at the number of Nigeria who are involved on that, at the moment we have 18 N ige r i ans i n Za r i a undergoing engineer ing training. We have just selected a whole lot for training in Zaria If we open a maintenance hangar today, the only way we can make that work is if we bring in experts. Yes, we have to start somewhere, but there will still be that gap and there has to be that training process, that mentoring process to bridge that gap. There have to

CONTINUES ON PAGE 17

Impossible! Impossible! We were receiving bullets in aircrafts back then. We have got pictures of bullets that went through our aircrafts

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February, Sweetcrude Reports 24

Techno Oil, a leading Oil and Gas company operating in the downstream sector of the petroleum industry.

Techno Oils deployment of strategic state-of-the-art assets has enhanced the daily distribution of 10 million litres of petroleum products in Nigeria. The feat won the company supplier of choice in 2009. Techno Oil also bagged the latest ISO 9001: 2008 Certificate for Quality Management System from the Standard Organisation of Nigeria(SON).

All these investments have increased the nations Gross Domestic Product (GDP) and have also given meaning to the whole essence of Nigerian Content Act.

Techno Oil court, Adewale lolawole Crescent, Plot 17, Block 122, Lekki Scheme 1, Lekki, Lagos, Tel: 01-8945494, 01-4629997, E-mail: info@technooil.com, Website:www.technooil.com

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PowerPower 30

AB U J A - P r e s i d e n t G o o d l u c k Jonathan has s a i d t h e country will generate 30 percent of all the power it requires through coal by the year 2020. The presidents position

was contained in a document obtained by Sweetcrude R e p o r t s d u r i n g a presentation of the Roadmap for the Development of Solid Minerals and Metals Sector in Abuja. He said presently a lot of

coal is being produced in the country and efforts are being made to attract investment in coal-powered plants to

he Ebonyi State government has s i g n e d a T

M e m o r a n d u m o f Understanding with a firm to produce 2,000 megawatts of electricity by September 2013.The State Governor ,

Martin Elechi, who disclosed this during a town hall meeting to round off the National Good Governance tour of Ebonyi State, said the principal partners, last week, signed a production agreement of the turbines in South Korea.H e s a i d t h e S t a t e

government was committed to putting in place, critical infrastructures that would promote economic activities and attract investors into the state.The governor noted that

the World Bank, federal ministry of finance and its

Jonathan demands 30% power generation from coalOscarline ONWUEMENYI

Ebonyi to generate 2000mw by September

Water Resources counterpart were assisting the state to ensure the completion of the state water projects.He said that the only

project embarked upon by his administration was the new campus of the State s university, estimated to cost about $500 million.He explained that the

repayment of the N20 billion bond secured by the state from the capital market has been structured in a way that by September 2015, the debts would have been liquidated.Elechi said: We are not

going to leave a debt burden for the next administration. By the time I leave office, the administration that would come after me would only pay about N560 million every month for four months. After the liquidation of the debts the benefits would be there in the state to enjoy forever.

take up the raw materials for power generation. Jonathan expressed the

hope that road map would transform the sector into a strategic catalyst for growth. Our aim is to facilitate the

production of coal needed to

fire coal-fired power plants that would contribute 30 percent of the nations power generation by 2020, he stated. He further stated that

government aims to revitalise the entire steel sector for the

operation and production of 3 million tonnes of liquid steel per annum by 2015 and 12.2 million tonnes of liquid steel per annum by the year 2020.The president also said

that Nigeria plans to become a major regional and global producer of aluminium and steel products with a target of 100,000 tonnes per year of primary aluminium and 3 million tonnes per year of steel products by the year 2015. According to him, the solid

minerals and metals sector possesses great potential for driving the diversification of N i g e r i a s e c o n o m y , considering the very rich mineral endowment that the country is blessed with.

Critically, the exploitation of these minerals can engender higher levels of production in other sectors of the economy as commodities from this sector serve as direct or indirect raw materials for other sectors, he noted. He explained that, The

desire for the diversification of our national economy from over-dependence on oil as the principal revenue source gave rise to the road map, a d d i n g t h a t h i s administration is fully c o m m i t t e d t o t h e operationalization of the document for a vibrant, productive and thriving m i n e r a l s a n d m e t a l s industry.

A power sub-station

The desire for the diversification of our national economy from over-dependence on oil as the principal revenue source gave rise to the road map

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An association of Nigerian e l e c t r i c i ty workers has said it has a g r e e d w i t h t h e management of the Power Holding Company of Nigeria, PHCN, on the payment of severance package for electricity workers. T h e S e n i o r S t a f f

Association of Electricity and Allied Companies, SSAEAC, said the union has agreed with the management on the payment of severance

h e Transmission Company T

of Nigeria (TCN) says t h a t e l e c t r i c i t y generation has hit 4,286 megawatts as against the 3,700 MW that has been reported by some media houses in the country.TCNs Assistant

General Manager, Public Affairs, Dave Ifabiyi also said that the drop in power g e n e r a t i o n o n Monday was due to t h e o n e - d a y shutdown of a power plant.Ifabiyi, who made

the clarifications in a telephone interview on Wednesday in Lagos, said that power generation d r opped by 460 m e g a w a t t s o n Monday. T h e 4 6 0

megawatts drop in

Nigerias power generation hits 4,286mw TCN

power generation on Monday was due to the one-day shutdown of the Okpai Power Plant owned by Agip Oil Company in Delta. The p lant was c losed to undergo repairs, he said.He said that the one-day

closure of the Okpai Power P l an t f o r c ed p owe r generation to stand at 4,100 megawatts, which rose to 4,286 MW on Tuesday.As at Tuesday, Nigerias

power generation stood at 4,286 megawatts. We are expectant that our power generation capacities will build-up with time.The shutdown of the

Okpai Power Plant was because of vandalised line which was later brought back on stream the same day, he said.Ifabiyi said the ongoing

privatisation of the power sector would result in i n c r e a s e d p o w e r generation and improved supply of electricity to Nigerians.

PHCN, electricity workers agree on severance package

p a c k a g e t o P H CN workers. The President General of

SSAEAC, Bede Opara, said on Friday in Lagos that negotiations on the

payment of the severance package are ongoing. Mr. Opara, however, said that there were other areas that the union needed to clarify to the workers

advantage. We agree in principle

with the la id down measures for the payment of severance package to the workers. However, there are some technical issues that we are yet to agree on. We are going to look at

those technical issues with a view to resolving them in the next two weeks, he said. Mr. Opara said that the

association did not have any qualms with the e m p l o ym e n t o f a n international firm to work

outthe financial benefits to

each of the workers. T h e F e d e r a l

Government, had on January 10, appointed Alexandra Forbes, an international agency, to work out the benefits due to the workers. The Ministry of Power

said it had set aside N170 billion for the severance p a ckage . Th e ma s s retrenchment in PHCN is i n l i n e w i t h t h e unbundling process and subsequent privatisation of the company.

We are going to look at those technical issues with a view to resolving them in the next two weeks

PHCN Workers demonstration

The shutdown of the Okpai Power Plant was because of vandalised line which was later brought back on stream the same day

PowerPower 35

FinanceFinance 36

The World Bank has projected that Nigerias economy would s u s t a i n i t s growth trend in the New Year, with the countrys gross domestic product, GDP, widely forecasted at 6.6 per cent from the 7.3 per cent level last year. The Bank said in its latest

Global Economic Prospects, GEP, report published on Wednesday that fresh foreign investments are expected to be the main drivers of the economic growth in sub- Saharan Africa, including Nigeria. According to the report,

increased investment will be a major driving force of growth over the medium term, pointing out that since 2000, investment in the region has increased steadily

World Bank project Nigerias economy to grow by 6.6% in 2013

from 15.9 per cent of GDP to over 22 per cent of GDP in 2012, with increased number of the regions economies tapping into international capital markets to help redress infrastructural constraints widely expected to sustain the growth pattern.

The report indicated that foreign direct investment to the region is expected to remain strong over the medium term, with a forecast that it would increase to new record levels each year reaching a peak of about $55.6 billion in 2015. F D I i n f l o w s t o t h e

extractive industries sector,

particularly oil and gas, p e t r o l e um a n d s o l i d m i n e r a l s a s w e l l a s agriculture sector would be supported by spiralling commodity prices over the next two to three years. O i l p r i c e s a t t h e

international crude oil market are projected to average between $102 per barrel by 2013, $102.2 by 2014 and $102.1 by 2015, while international capital flows to developing countries as percentage of GDP would be about 4.7%, 4.7% and 4.9% by 2013, 2014 and 2015 respectively.In addition to growing

f o r e i g n s o u r c e s o f investment finance, the r e p o r t s a i d d ome s t i c investment is also expected to benefit from the ongoing financial sector deepening in the region.

Over the past decade, the report said bank deposits as a share of GDP have increased by some eight p e r c e n t a g e p o i n t s , supporting a 10 percentage point increase in the private sector credit to GDP ratio during this period. Noting the lag in monetary

policy transmission, the report said widespread cuts in policy rates in2012, is expected to provide

some stimulus to economic activity through 2014. While identifying the risks

that could potentially derail t h e r e g i o n s g r o w t h prospects, the World Bank said such risks remain tilted to the downside, as the global economy remains fragile, amidst weaker growth in Chinese investment, ongoing fiscal consolidation in the wake of the Euro Area debt crisis, and weaker U.S. economy. Besides, it also identified

s ome e x t e r na l r i s k s , bordering on a number of domestic concerns, such as p o l i t i c a l i n s t a b i l i t y , p r o t r a c t ed i n du s t r i a l d i sputes and adverse weather conditions. The World Bank said developing countries need to focus on raising the growth potential of their economies, while strengthening buffers to deal with risks. Overall, the report noted

that the global economic environment remains fragile and p rone t o fur ther disappointment, although the balance of risks is now less skewed to the downside than it has been in recent years. Global growth is expected

to come in at a relatively weak 2.3 per cent and 2.4 per cent in 2012 and 2013, respectively, and gradually strengthen to 3.1 per cent and 3.3 per cent in 2014 and 2015, it observed, adding that at an estimated 5.1 per c en t , GDP g rowth i n developing countries during 2012 was among the slowest in 10 years.

Global growth is expected to come in at a relatively weak 2.3 per cent and 2.4 per cent in 2012 and 2013, respectively, and gradually strengthen to 3.1 per cent and 3.3 per cent in 2014 and 2015

FinanceFinance 37

he Board of Directors of the African T

Development Bank (AfDB) has approved today a senior loan of US $100 million to I n d o r ama E l eme F e r t i l i z e r & Chemicals Limited (IEFCL) to build and operate a gas to urea fertilizer plant located in Port Harcourt, Nigeria, that will serve markets in Benin, Brazil, Ghana, India, Nigeria, South Africa, the United Kingdom and the

Kunle Quadri , the President of West African Union of Tax I n s t i t u t e s (WAUTI), on Thursday said that the N1.806 trillion declared as non-oil revenue in 2012 was unimpressive. Quadri added that there was nothing to celebrate in the data for the 2012 tax earnings from the non-oil sectors. T h e F e d e r a l I n l a n d

Revenue Service (FIRS) tax earnings in 2012 indicated that the Service made total revenue of N5.007 trillion. The non-oil sectors generated 36.07 per cent of the 2012 net tax income. The figure was N1.557 trillion in 2011. FIRS said that the earnings from Company Income Tax for 2012 was N847.5 billion, a marginal increase over the N715.4 billion the service declared in 2011.Gross income from VAT in

2011 was N659.15 billion, but rose to N710.5 billion 2012. Quadri said that the poor tax income from the non-oil sectors in 2012 gave the impression that the sectors were under-exploited. According to him, tax

revenue from education,

N1.806trn non-oil tax revenue is dismal Quadri

hospitality, agriculture, finance and other sectors outside the oil and gas

industry were substantial enough for government to reap bountifully if it had

exploited them optimally. Improving the policy

strategy and increasing

investments in the non-oil sectors will definitelyenhance governments tax

income from them and also create massive employment opportunities. I believe that the Federal

Government can surpass its N5.007 trillion tax revenue feat in 2012 if it invigorated activities in tourism and agriculture, he said. He urged the government

to inject more funds into the transport sector as much can be earned by way of tax from transportation. Q u a d r i , a l s o t h e

immediate past President, Chartered Institute of Taxation of Nigeria, said that theFIRS needed t o r e -

strategise with a view to collecting more tax from taxpayers. FIRS should widen its

dragnet to capture more taxpayers to fulfill their civic obligations to thestate, he said. Quadri stressed the need

to judiciously implement the National Tax Policy to the letter, sayingthat its implementation

would boost the nation tax revenue.

AfDB approves U.S $100m loan for fertilizer production in Nigeria

United States of America.The project will allow

Nigeria, which relies heavily (80 per cent) on imported fertilizer, to progressively become self-sufficient and a major exporter. Ultimately, the project will act as a catalyst to support job creation in the area, in addition to striving towards achieving the Millennium Development Goals in the areas of food sufficiency and a cleaner environment.The IEFCL plant, located in

the existing Eleme industrial complex, will produce urea to be sold in export and domestic markets. Other project components will include an

84-kilometre pipeline and a multipurpose jetty and terminal infrastructure at Onne Port, 16 km from the project site. The complex is expected to be among the most competitive production sites given the low feedstock price and economies of scale.Indorama Eleme Fertilizer

& Chem i c a l s L im i t e d (IEFCL) is the Borrower and Project Company. It is owned by Eleme and Indorama. Eleme is Africas second largest polyolefin producer and has a majority market share of polyethylene and polypropylene in Nigeria complimented by exports to nearby countries.

With this project, the AfDB also promotes small and medium enterprise linkages through the distribution supp ly cha in f o r t he domestic market . The project will create 3,854 jobs of which 250 are direct and 348 indirect local positions during construction and operation. Moreover, the IEFCL project will generate r e v e n u e s f o r h o s t communities, River State Government and Eleme employees as well as the Federal Government of Nigeria from dividends, taxes and foreign exchange savings through import substitution.

Oil workers attending to the pipes

FinanceFinance 38

ABUJA - The N i g e r i a n N a t i o n a l P e t r o l e u m Corporation, NNPC, on Sunday night discredited aspects of the N i g e r i a n E x t r a c t i v e Industries Transparency Initiative (NEITI) oil and gas audit report which accused it of widespread corruption and misapplication of oil revenue.It noted that NEITI without

taking cognizance of the extant laws and regulations, guidelines and terms of relevant contracts in NNPCs operations has continued to portray the Corporation to the public in bad light.I n a p o i n t - b y - p o i n t

rebuttal, the NNPC said the watchdog agency acted in bad faith, and did not give the Corporation the chance to explain some of the issues before going ahead to release

NNPC blasts NEITI report as misleading*Claims subsidy payment followed due process

Oscarline ONWUEMENYI

a half-baked report with the sole intent to mislead the public.The Corporation in a

release made available to our correspondent said the NEITI draft report, covering the period of 2009-2011, was made available to NNPC on 17 January, 2013 and the Corporation was in the process of reviewing same for reconciliation when it was hurriedly made public and

released to the press.Standard audit procedure

requires close-out between the auditor and the auditee before it is finalized and put in the public domain.The r epor t c on ta ins

fundamental inaccuracies which are misleading and constitutes misinformation to the generality of the public. Given that the NEITI audit report is expected to be factual in all respects, it has become

necessary to make the following observations and clarifications, the NNPC stated. .On its purported debt to the

Federation, the NNPC said the sum of N1.3trn as indicated by the NEITI report was incorrect and misleadingIt said with regards to the

un - re conc i l ed d eb t o f N928bn, NNPC has 90 days moratorium for the payment of domestic crude. This implies that at every year end, the Corporation will have outstanding 3 months balances not yet due for payment.However, the debt portion

of the N928bn had been paid in the first quarter of 2012 on the relevant due dates. This can be verified with the relevant authorities. One would have expected NEITI to take cognizance of this process in the report to avoid misrepresenting NNPCs

debt profile, the statement noted.It added that the N377bn

purported debt was a carry-over of 2004-2005 when NNPC was directed to buy crude oil for domestic c o n s u m p t i o n a t international market price while the sale of petroleum products was at subsidized prices without appropriate instrument to recover the shortfall.A c c o r d i n g t o t h e

Corporation, NEITIs report ought to have identified the anomaly and vindicated NNPC o f the N377bn imposed debt repayment.On the subsidy payment, in

which the report questioned both the process and NNPCs right to re-imbursement under the subsidy scheme, the Corporation insisted that everything was carried out transparently in the spirit of due process.

The report contains fundamental inaccuracies which are misleading and constitutes misinformation to the generality of the public

Oil Workers

FinanceFinance 39

The Chevron Co rpo ra t i on has cited its N i g e r i a n projects among the major contributors to its oil production growth.The oil multinational in the

fourth quarter report, 2012, stated that its worldwide net oil- equivalent production was 2.67 million barrels per day, up from 2.64 million barrels per day in the 2011 fourth quarter, with thanks to projects in Nigeria, U.S and others.Production increases from

project ramp-ups in Nigeria, the United States and Tha i land , h igher c os t r e c o v e r y v o l um e s i n B a n g l a d e s h a n d n ew volumes from the recently-

Chevrons projects in Nigeria, major contributor to its success

acquired Delaware Basin properties partially offset by normal field declines and the continued shut- in of the Frade Field in Brazil, it stated.Although, the report was

not specific on the projects, Chevron Corporation had recently given priority to development of its Usan, Agbami and Escravos Gas- t o -Liquids pro jects in Nigeria, under its $33 billion global investment plan for exploration and production in 2013.Chevron reported earnings

of $7.2 billion for the fourth quarter 2012, compared with $5.1 billion in the 2011 fourth quarter. Results in the 2012 period included a gain of $1.4 billion from an upstream

asset exchange.Full-year 2012 earnings

were $26.2 billion, down 3 per cent from $26.9 billion in 2011 . Sa les and o ther operating revenues in the fourth quarter 2012 were $56 billion, down from $58 billion in the year-ago period, mainly due to lower crude oil volumes.The Chairman and CEO,

John Watson said: Chevron delivered another very strong year in 2012. Our upstream portfolio continues to produce excellent results.Weve now led the industry

in earnings per barrel for over three years. Our downstream businesses also delivered highly competitive earnings per barrel.Strong cash flows allowed

us to invest aggressively in

our major capital projects and to acquire several important, new resource opportunities. We also raised the dividend on our common s h a r e s f o r t h e 2 5 t h c on se cu t i v e y ea r and c o n t i n u e d o u r s h a r e repurchase program, both of which demonstrate our commitment to providing near- term, top-tier returns to our shareholders.Watson continued, We

made significant progress on our Gorgon and Wheatstone LNG projects in Australia in the past year. At the same time, we announced six additional natural gas d i s c o v e r i e s o f f s h o r e Australia, and completed an a s s e t e x c h a n g e t h a t increased our interests in

Carnarvon Basin fields.These results support

f u t u r e e x p a n s i o n opportunities for these two projects. We also expanded our global exploration resource acreage in 2012, Watson noted, including entr ies into f ive new countries, the addition of significant new acreage in the United States, and the r e c e n t l y a n n o u n c e d acquisition of a 50 per cent operated interest in a wes tern Canada LNG project, he said.Watson stressed that the

c o m p a n y a d d e d approximately 1.07 billion barrels of net oil- equivalent proved reserves in 2012. These additions, which are subject to final reviews, equate to 112 percent of net oil- equivalent production for the year.

Crude oil in barrel

LabourLabour 40

WORKERS in N i g e r i a s P e t r o l e um i n d u s t r y called for an equitable between government take and industry growth as a way of resolving the concerns o f I n t e r n a t i o n a l O i l Companies, IOCs, operating in Nigeria the Petroleum Industry Bill, PIB.Under the umbrella of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, and Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, the workers argued that the PIB should not only allow for the optimization of returns to Nigeria, but should stifle investments and growth of the industry.NUPENG and PENGASSAN, posited that

PIB: NUPENG, PENGASSAN seek balance in govt interest, industry growth

Eluonye KOYEGWUAEHI PIB should look at global industry best practice on the taxat ions , tar i f f s and royalties as well as other c o s t s a ssoc ia ted w i th o p e r a t i o n s i n Nigeria.Speaking on behalf of the two unions, President of PENGASSAN, Comrade Babatunde Ogun, explained that while oil companies should be able to operate profitably and transparently in Nigeria, the government should also maximize the benefits from operations to b e t t e r t h e l o t s Nigerians.According to him, workers had to settle for the survival of the industry and t h e c o u n t r y , s a y i n g Presently, Nigeria depends on oil and gas to survive and unless the oil and gas industry survives, the survival of Nigeria is also in jeopardy, because the sector is the mainstay of our

economy. As much as we want more income for the country, as workers and major stakeholders in the oil and gas industry as well as in Nigerian nation, we believe that a just and equitable balance needs to be struck b e t w e e n i n c r e a s i n g government take and the oil companies profitability so that they can continue to make more investments which invariably will also translate to more money for

government.Ogun said NUPENG and PENGASSAN were not oblivious of the fact that in recent times, there had been discovery of hydrocarbon resources in the Gulf of Guinea, especially, Ghana, Sierra Leone and Liberia and even in other Africa countries such as Tanzania, Mozambique, Kenya and Uganda thereby increasing the competition for investment.Oil is being discovered almost on a daily

basis in other countries and there are prospectsfor more as many countries are intensifying their search for petroleum. Nigeria should not do anything that will price it out of the competitive global oil market by putting in place an fiscal regime that will put off investors. The PIB should have a fiscal r e g im e t h a t w i l l b e favourable to both existing oil companies and potential investors that may want to come into the country, he said. He contended that the unions had engaged both the IOCs under the aegis of Producers Trade Section, OPTS, and the Nigerian N a t i o n a l P e t r o l e um C o r p o r a t i o n , NNPC , stressing that they both brandished different figures as to their costs, taxes, royalties and tariffs post-PIB, saying.

Presently, Nigeria depends on oil and gas to survive and unless the oil and gas industry survives, the survival of Nigeria is also in jeopardy

Oil rig

LabourLabour 4 1

Nigerias oil i n d u s t r y workers are insisting on t h e correction of some faulty aspects of the Petroleum Industry Bill, PIB, currently awaiting passage into law by the national legislature. But, they are also insistent

that despite flaws in the bill, the document must not be thrown away, but should rather be amended to address the flaws before passage by the National Assembly.President of the Petroleum

and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Comrade Babatunde Ogun, identified as faulty the absence of labour issues relating to staff transfer, conditions of service, severances, pensions and gratuities in the bill, alleging that they were deliberately left out by those who crafted the bill.On his part, president of the

National Union of Petroleum and Natural Gas Workers, NUPENG, Comrade Igwe Achese, expressed worry on the scanty provisions made i n t h e P I B o n t h e downstream petroleum sector, especially in the area of refining, which, according to him, does not adequately provide enough incentives to engender local refining of products. The union leaders, in

s e p a r a t e i n t e r v i e w s , expressed worry also that the bill purportedly premised on t r a n s p a r e n c y a n d accountability does not guarantee the transparency and accountability objectives the bill stands for. There is need to strengthen the t r a n s p a r e n c y a n d accountability provisions of the bill, they said on behalf of the unions.For the oil workers also, the

bill should ensure a balance between governments stake and investor interests in the oil and gas industry to guarantee continued growth of the sector. The unions also condemned

what they described as excessive powers accorded the Minister of Petroleum

PIB lacking on welfare of oil workers PENGASSAN, NUPENG

Resources and the President in the PIB, demanding the reduction or removal of such powers.Commenting further on the

absence of labour issues in the bill, Ogun noted that this was so because of the non-representation of NUPENG and PENGASSAN on the boards of institutions and agencies in the oil and gas industry. H e i d en t i f i e d t h e s e

institutions and agencies to i n c l ude t h e N i g e r i an Content Development and M o n i t o r i n g B o a r d , ; P e t r o l e u m T r a i n i n g Institute, PTI; Petroleum Produc t s P r i c ing and Regulatory Agency, PPPRA, Petroleum Equalisation Fund, PEF; Petroleum Technology Development Fund, PTDF; Department of Petroleum Resources, DPR, insisting that PENGASSAN and NUPENG should be represented in the pre-PIB and post-PIB membership of boards of the institutions and agencies.Speaking on other issues

affecting the industry, the PENGASSAN president frowned at the continued

importation o f re f ined petroleum products, saying that effort should be made to at least refine 30% of crude p r o d u c e d b y t h e o i l companies in Nigeria to encourage downstream petroleum development.On his part, NUPENG

president, Comrade Achese noted with dismay the prostrated fuel shortage in the country over the years and the resultant sale of petroleum products above official pump prices.He called on the Federal

G o v e r nm e n t t o t a k e appropriate measures to address the situation in the

interest of the nation. He added that government s h ou l d p r o v i d e mo r e incentives to encourage i n v e s t m e n t s i n t h e d o w n s t r e a m s e c t o r , especial ly bui lding o f refineries by investors.He s a i d t h e s c an ty

provisions made in the PIB o n t h e d o w n s t r e a m petroleum sector, especially in the area of refining, does not adequately provide enough incentives that would engender l o ca l refining. To actualise this, the union chief urged government to embark on immediate commencement

o f t h e T u r n A r o u n d maintenance (TAM) of the existing refineries as earlier pronounced by the Federal government during the January 2012 fuel subsidy crisis so as to increase local refining capacity, improve availability of petroleum products and ensure job creation and security.On Mallam Nuhu Ribadu

r epor t s on p e t ro l eum revenue and the Kalu Idika Kalu reports on refineries, the oil workers disagreed with any recommendation that would decimate or further delay comprehensive TAM of the refineries. They described as uncalled for, the idea of balkanising the products pipeline under the name of unbundling. The oil workers called on

government at all levels to make known p ro j e c t s executed with specific cost details of their allocations from money realised from SURE -P r o g r amme a s promised by the Federal Government, noting with dismay that this allocation has not impacted on any aspect of infrastructure in any state as promised.

Comrade Igwe Achese, NUPENGBabatunde Ogun, PENGASSAN

There is need to strengthen the transparency and accountability provisions of the bill, they said on behalf of the unions

R G A N I S E D L a b o u r i n Nigerias Power O

Sector , advised the Federal Government to implement to the letter the agreement reached between i t and the Federal Government on the ent i t lements o f workers of the Power Holding Company of Nigeria, PHCN, in the b u i l d - u p t o t h e privatization of PHCN assets.Under the umbrella of

t h e S e n i o r S t a f f Association of Electricity and Allied Companies, SSAEAC, the union vowed that no investor would take possession of

Yenagoa - The implementation o f t h e N i g e r i a n Content Act in the past 30 months has deepened the Nigerian Oil and Gas local supply chain and increased industry manhours performed by Nigerians by over 350 per cent resulting in over 30,000 direct productive jobs, the Minis ter o f Petro leum Resources, Mrs. Diezani Alison-Madueke has said.Speaking at a meeting of the

Governing Council of the N i g e r i a n C o n t e n t Development & Monitoring Board held in Abuja last week, the Minister who doubles as the Chairman of the Council explained that just by insisting on using Nigerians in the industry, we have deepened the local supply chain

Nigerian Content creates 30,000 jobs in 30 months Alison-Madueke*Nigerians win 87% of Oil & Gas Contracts

The jobs were generated in engineering, fabrication, exploration and production, marine transportation and logistics sectors, which had been developed to become more robust.She expressed optimism

t h a t t h e j o b g r ow th trajectory will not only be sustained but also drive multipliers across industries following the integration of youths training into the implementation process.I have no doubt that more

jobs will be created in 2013 and we shall achieve greater localization of industry services, manufacturing and fabrication in 2013, she added.According to Al ison-

Madueke, Nigerian Content i m p l em e n t a t i o n h a s increased the level of participation of Nigerians in oil and gas contracts to 87

per cent of total industry contracts, describing this is a f i r s t s t e p t o w a r d s domiciliation of spend and local value addition.Commenting further on the

success recorded so far, the Minister noted that The Board has to a large extent achieved consensus in most aspects of Nigerian Content implementation to the extent that there has been no major d i s p u t e a m o n g s t

s t a k e h o l d e r s o n interpretation of provisions of the Nigerian Content Law.Stakeholders are also

responding positively to the need to do things differently in the industry, for the benefit of all. This clearly demonstrates that we have been carrying the industry along in the implementation of the Act.Al ison-Madueke a l so

assured that the Federal Government will continue to support the Board and its numerous l o ca l v a lue addition initiatives, aimed at d e epen ing i nd i g enous participation in the industry.Dwelling on the Petroleum

Industry Bill presently b e f o r e t h e N a t i o n a l Assembly, the Minister noted that that the provisions of the Nigerian Oi l and Gas I n d u s t r y C o n t e n t Development Act were safeguarded in the PIB, in a bid to sustain the momentum that has been achieved in Nigerian Content.The PIB is now in the

National Assembly and should provide the needed impetus for additional investments in the industry. This should be a major benefit for the capacity we are building in the local industry, she said.

PHCN privatization: Dont renege on our agreement, labour tells FG By Eluonye KOYEGWUAEHI

any asset of PHCN if the government reneged on any part of the agreement signed l a t e l a s t y e a r a f t e r protracted negotiations and disagreements.Speaking , Pres ident -

G en e r a l o f S SAEAC , Engineer Bede Opara, said it would the government and the industry a lot of good if the government did not renege on the agreement.According to him We will

always prevail on them to appreciate that labour is the most important resource in any industry or workplace. The interests of Nigerian workers remain paramount b e c a u s e w i t h o u t t h e workers, where will the company go? No matter the type o f machines you install,human beings are going to operate them. Mrs. Diezani Alison-Madueke

Stakeholders are also responding positively to the need to do things differently in the industry, for the benefit of all. This clearly demonstrates that we have been carrying the industry along in the implementation of the Act

LabourLabour 4 2Briefs

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February, Sweetcrude Reports 43

LabourLabour 44

President Goodluck Ebele Jonathan has said that the reforms embarked upon by his administration in the agricultural sector would add 20 million metric tonnes of food to domestic supply and create at least 3.5 million new jobs in agriculture and allied industries by 2015.The president who made

this disclosure at the formal opening of a meeting with members of the Eminent Persons Group on the Transformation of Nigerias Agricultural Sector, said that objective of these structural and policy reforms was to b u i l d o n N i g e r i a s t r em e n d o u s n a t u r a l resources and reverse the decline in the agricultural sectors productivity which followed the discovery of oil, establish domestic self-sufficiency in food and make the country a major net exporter of food.According to the president,

Such a shift will not only reduce the billions of dollars we spend importing basic food items, but will also create millions of jobs, especially for our youth. This s h i f t w i l l a l s o d r i v e a g r i c u l t u r a l industrialization as more agro-allied enterprises are established to process and add value to local foods for domestic and international markets,.He emphasised that his

A d m i n i s t r a t i o n w a s committed to a government-enabled, private sector driven transformation of the nations agricultural sector in order to change the perception in the country that agriculture is for the never do well.Government will continue

to support public-private sector partnerships that reduce the costs of doing b u s i n e s s i n N i g e r i a especially by providing critical infrastructure such as power, water and roads. This is why my Government is developing Staple Crop Processing Zones as a new framework for attracting the private sector into areas of high food production, to process, and add value to all commodities produced in

Nigeria govt reforms to generate 3 million jobs Jonathan

Nigeria.We also recognise the need

to accelerate investments in research and development, and take advantage of m od e rn t e c hno l o g i e s , including bio-technology and ICT technologies that will expand possibilities for our farmers, he noted.He disclosed that the

initiative to transform Nigerias agricultural sector through the private sector is already paying off with new private sector investments worth about Eight Billion U.S. Dollars now committed to agriculture.While thanking members

of the Eminent Persons Group for their support, President Jonathan said that their contributions to the positive transformation of Nigerias agricultural sector will not only help to

achieve food security for the nation, but will also help to enhance national security by helping to create more new jobs to take millions of unemployed youth off the streets and into productive employment.Those present at the

meeting included the former Secretary-General of the United Nations and current Chairperson of the Alliance for a Green Revolution in Africa, Dr. Kofi Annan, the President of the African Development Bank, Mr. Donald Kaberuka, the

P r e s i d e n t o f t h e International Fund for Agricultural Development, Dr. Kanayo Nwanze, the Chairman of the Del Monte Fresh Produce Inc., Mr, Mohammed Al-Ghazaleh, Mr. Pierre Vandebeeck and Mr. Ides De Willbois among others.President Jonathan was

accompanied on the trip by the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, the Minister of Agriculture, Dr. Adewunmi Adesina, the Minister of Trade and Investment, Dr. Olusegun Aganga and some Chief Executive Officers of Global Corporations and Nigerian companies.

We also recognise the need to accelerate investments in research and development, and take advantage of modern technologies, including bio-technology and ICT technologies that will expand possibilities for our farmers

President Goodluck Jonathan

Solid MineralsSolid Minerals 45

ABUJA - The N i g e r i a n Government s a y s i t i s determined to i n c rease the r evenue generated from exploitation of solid minerals and metals resources in the country and thereby d ivers i fy the national economy from its dependence on oil and gas. The Minister of Mines and

Steel Development, Arc. Musa Mohammed Sada who stated this while formally presenting the Road Map for the Development of the Solid Minerals and Metals sector to stakeholders at an event in Abuja, said it will chart the path for the resolution of

Solid minerals sector to contribute 10% to GDP by 2020 FG*To create 3m jobs through minerals and metals sector by 2015

Oscarline ONWUEMENYI the problems and challenges facing the sector. H e n o t e d t h a t t h e

implementation of the road map for the development of Nigerias minerals and metals sector would among m a n y o t h e r t h i n g s contribute at least 10% to the nations GDP by 2020, as well as create about 3 million direct and indirect jobs by 2015.He said, The road map for

development of the solid minerals and metals sector is designed to create wealth for our citizens and produce needed raw material for the manufacturing sector/ the construction Industry.It will also earn foreign

exchange for the nation through export of mineral

commodities and metals.A c c o r d i n g t o h i m ,

government recognizes the need for a road map that will pave the way for the country to attain its economic, social and environmental objectives t h r o u g h s u s t a i n a b l e exploration and exploitation of the nations vast mineral endowmentThe explorat ion and

exploitation of Nigerias available solid minerals resources is an important component of a diversified economy, a desired outcome o f N i g e r i a s e c onomi c transformation, strategy and one of the policy priorities of the Federal government, he said. S a d a n o t e d t h a t

development of the road map

for the solid minerals and metals sector is to take full advantage of the rising international and local commodity prices and the g l o b a l r e s u r g en c e o f exploitation and exploitation activities with attendant huge investment in the sector. The road map for the

development of the solid minerals and metals sector will operate on the short term, medium term and long term basis.The Minister further

stressed that several factors are currently in place to s t imu l a t e t h e s e c t o r i n c l u d i n g i m p r o v e d geological information on the diverse metallic and non-metallic mineral potentials,

and a favorable policy framework for international and local investors.Other impetus for the

g rowth o f the sec tor , according to him include, the new national solid minerals po l i cy which o f f ers a competitive environment for solid minerals development, and the availability (on the International technology market) of low cost mineral production processes which if p r ope r l y s our ced and assembled.He stressed that the road

m a p f o c u s e s o n t h e exploration, development, exploitation (mining and processing) and marketing of t h e m i n e r a l r e s o u r c e s / m i n e r a l s commodities of the country.

Solid Minerals

Solid MineralSolid Mineral 46

The National I r o n O r e M i n i n g C o m p a n y ( N I O M C O ) located in Kogi State is capable of generating N72.9 billion annually as revenue and provide employment opportunities to thousands. But the project is suffering from several constraintsAtop an ancient hill lying

about 10 kilometers to Okene from Lokoja in Kogi State lived an ancient warlord who, legend has it, became an oracle to be consulted whenever warriors in the zone wish to embark on any battle.The warlord, Itakpe, who

lived alone with his hunting t o o l s a n d f a r m i n g implements, never knew he

Nigeria: NIOMCO - Constraints of a Multibillion Naira Project

was sitting on top of a gold mine, for the entire hill, christened after him, was blessed with a huge amount of iron ore deposit that, arguably, could not be rivalled in the entire West African sub-region.The Itakpe Hills in and

around the town of Itakpe, discovered in 1908, contain very pure deposits of iron ore. The National Iron Ore Mining Company (NIOMCO) is located here and operates an open pit mine. It supplies the steel works of Ajaokuta and Aladja, as well as producing

ore for export.Iron ore is used for making

steel, transformers and motor cars, electro-magnetic devices, electric bulbs, engineering works etc.The National Iron Ore

Mining Company operates the Itakpe iron ore mine which has an annual capacity of 5.5 Mt per year. The beneficiated product contains 64.7% Fe. The largest deposit of iron ores of Kogi and Enugu States are yet to be fully exploited.On April 14, 1971 the

F e d e r a l G o v e r nm e n t promulgated Decree 19 setting up the Nigeria Steel Development Authority (NSDA) to plan, operate and maintain iron and steel plants in Nigeria.In 1979 Decree 60 of

September 19, FG dissolved the NSDA and established six companies among which was the Associated Ores Mining Company which was later renamed National Iron Ore Mining Company.Nigerias overall demand

for iron rod is mostly being sourced from the recycling of waste metal scraps. Besides, there are three inland rolling mills at Oshogbo, Jos and Katsina in addition to some privately-owned rolling mills in Lagos, Calabar and Kano.The nation also has the

Aladja and Ajaokuta steel c ompanies which a re potential buyers of the iron ore to be produced apart f r o m t h e l u c r a t i v e international market.

Nigerias overall demand for iron rod is mostly being sourced from the recycling of waste metal scraps. Besides, there are three inland rolling mills at Oshogbo, Jos and Katsina in addition to some privately-owned rolling mills in Lagos, Calabar and Kano

Iron ore mining site

Uyo - T h e Akwa Ibom Government says it will g r an t t a x hol iday to prospect ive investors in the steel and building materials sector of the states economy.Gov. Godswill Akpabio said

this when Mr Alex Gbosi, the Chairman, Rigid Global Buildings, a US-based steel building industry, paid him a courtesy visit at Government House in Uyo on Sunday.Akpabio said the state was

prepared to partner with Rigid Global Buildings to boost industrialisation in the state.

Akwa Ibom offers tax holiday to investors in steel mill

I can assure you that you wont make a mistake to invest here. Akwa Ibom State is a Free Trade Zone where major industries do not pay tax.I would also recommend

that you invest in Qua Steel Rolling Mill, Eket, that has long been abandoned, Akpabio said.H e s a i d t h a t h i s

a d m i n i s t r a t i o n w a s determined to support and

provide land for immediate c ommencement o f the investment.We will provide you a land

in the free zone area at the envisaged Ibaka Deep Seaport project so that as you produce you can also export.If we build the industries

in Nigeria, we would reduce the cost of construction because Nigeria has the m a r k e t f o r b u i l d i n g materials, headded. He also promised that the

administration would supply the prospective investors with gas from the gas processing plant being built b y S e p t a E n e r g y i n partnership with Akwa Ibom Government.

Earlier, Gbosi said the company had expertise in steel manufacturing, made name in the bui lding industry and designed the largest airplane hangar in Dallas, USA.He said that his company

had put in more than 34 years in steel business and could supply and recycle all types of building materials.Gbosi said that his visit to

the state was informed by the need to bui ld an industrial park which could host 20 to 30 industries.He said that such park

could serve as an industrial hub not only for the state but also for the country.

I can assure you that you wont make a mistake to invest here. Akwa Ibom State is a Free Trade Zone where major industries do not pay tax

Iron mill factory

Solid MineralSolid Mineral 47

FreightFreight 48

STAKEHOLDERS in the Nigerian M a r i t i m e industry and the O r g a n i s e d Private Sector, OPS, have unanimously called on the leadership of the Senate, ahead of its resumption from recess, to stop the passage of the amended Customs and Excise Management Act, CEMA, recently passed by t h e H o u s e o f Representatives.This was the decision at a

breakfast meeting in Lagos organised by the Maritime Industry Advocacy Initiative, MAIN, where stakeholders averred that the process leading to the passage of the B i l l by the House o f Representatives was shoddy as relevant stakeholders, including OPS and the maritime industry, were not carried along.They alleged that the Bill as

passed conflicted with other extant legis lat ion and functions of other agencies of government , inc luding usurping the powers of the President and the Minister of Finance. A c c o r d i n g t o t h e

stakeholders, agencies like t h e N i g e r i a n P o r t s Authority, NPA, Standard Organisation of Nigeria, SON, and National Drug Law E n f o r c em e n t a g e n c y , NDLEA, National Agency for F o o d s a n d D r u g Administration and Control, NAFDAC, Central Bank of Nigeria and the Federal Ministry of Finance would have their functions removed with the passage of the Bill, even when their enabling laws subsisted.Besides, passage of the bill

will distort the current post-p o r t s c o n c e s s i o n arrangement between the B u r e a u f o r P u b l i c Enterprise, BPE, Nigerian Ports Authority and various concessionaires.The meeting was attended

by representatives of NPA, SON, NAFDAC, Seaports

Senate urged to stop passage of controversial Customs Bill

Toju VINCENT

T e r m i n a l O p e r a t o r s A s s o c i a t i o n , S TOAN , National Association of Chambers of Commerce I ndus t ry , M ines , and Agriculture. NACCIMA and licensed Customs agents. Participants at the meeting

a l s o v i e w e d s o m e amendments contained in the Bill as obnoxious and not i n l i n e w i t h b e s t international practice. They also feared that the Bill, if passed into law, will not be in the interest of the nation and her economy.C a p t a i n I h e n a c h o

Ebubeogu, NPA General Manager in charge of Marine and Operations, advised the Senate to consider the Ports and Harbours Bill now before the National Assembly side by side with the new version of CEMA and address various areas of duplication or attempt to cede the authoritys landlord-status as embedded in the Ports Act.Mr. Yunusa B. Mohammed,

r e p r e s e n t a t i n g S ON , described some aspects of the Bill as an infringement on SONs responsibility, which may cause delays in the goods clearance process at the ports and approved border stations.

He no ted that s ince Customs have no mandate to declare any product as being of acceptable standard or substandard, adding that Customs Laboratory for testing, which the Bill

provides for, will create duplication and subject importers to avoidable delays.

fter gulping m i l l i o n o f n a i r a A

without any progress, the dredging of the Calabar Channel in Cross River State is to undergo a r e -b id process.This follows Federal

Government approval for the process in the wake of controversies that have marred the previous bid process.

Dredging of Calabar Channel to undergo fresh bid process

Disclosing this to both the Senate and House o f Representative Committees on Mar ine Transport , Transport Minister Senator Idris Umar said the facility would be undergoing another round of bid process for Capital dredging, following approval to that effect by the Federal Executive Council, FEC.According to Umar, apart

from the capital dredging, FEC also approved that the managers of the channel,

believed to be Niger Global Limited, a local firm, may also bid for the capital dredging.Previously, the Senate and

House of Representative Committees on Marine Transport had set up a committee to investigate the failed Calabar Channel dredging project. M a r i t i m e i n d u s t r y

watchers claim that the success of the Calabar dredging project would be vital to the success of the Tinapa project in Calabar.

National House of Assembly building

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February, Sweetcrude Reports 49

FreightFreight 50

Multinational oil company, Chevron, has been warned b y t h e N i g e r i a n C o n t e n t D e v e l o p m e n t a n d Monitoring Board, NCDMB, over alleged discrimination against local Nigerian companies in the maritime industry.The warning arose from a

petition by the Indigenous Ship-owners Association of Nigeria, ISAN, against Chevron, alleging neglect, on their part, of Nigerian shiiping companies. Specically, ISAN had in the

petition asked Chevron to withdraw a marine notice it published to counter the one published by the Nigerian Maritime Administration a n d S a f e t y A g e n c y , NIMASA.Alligning with the local

ship owners, NCDMB said discrimination against the Nigerian ship owners is a violation of section 3(2) of the NCDMB ActThe board, in a letter to

C h e v r o n s m a n a g i n g d irector , d i rected the company to withdraw the marine notice it published, which is at variance with the s p e c i f i c a t i o n s o f t h e

H E N i g e r i a n P o r t s T

Authority, NPA, has a c h i e v e d o v e r $1.8million (N466 million) revenue in the last nine months

Chevron accused of non-patronage of local shipping firms

NPA reaps N470m revenue from ship dues in 9 monthsSam UDUOVIE of last year.

It realised the sum from ship dues received from the Harbours department of the Delta ports alone.Reports of a Committee

c o o r d i n a t i n g t h e reconciliation of accounts and payment of ship dues to local pilots showed that $209, 350.01 was received for pilotage service that was paid by ship owners to the NPA for the month of December 2012, as against $157,940.61 in November of 2012.In the months of October

and September of the same year, a total of $120,992.08 a nd $ 2 47 , 6 27 . 8 4 wa s collected as fees for pilotage services respectively from vessels that called at the ports.The sum of $154,172.62

was recorded as ship dues for the month of August while the sum of $256,797.44 - being the highest collection, was recorded for the month of July.Ship dues for the months of

June, May and April stood at $214,919.62, $284,429.29, and $228,345.31 respectively from the Delta ports.For the ship dues collected

in Naira for the months of December and November, N18.2 millon and N16.6 million was recorded as against N30.022 million and N14.050 million received for the months of October and September.The sun of N19.4 million

was collected for the month of August. Ship dues recorded for the month of July stood at N22.9 million as against N28.7 million, N24.4 million and N25.7 million in the months of June, May and April 2012.Local pilots who provide

local pilotage services are, meanwhile, being owed about N100 million in dues and fees for over six months.The pilots have threatened

to down tools if their bill are paid in two weeks, a development that may disrupt shipping activities in the entire Delta ports.Effort to speak with the

General Manager, Marine and Operations, Mallam Mohammed Bulango was unsuccessful as he was said to be away in Ghana.

NIMASA.The letter, dated January

14th 2013, has as reference number, NCDMB/ES/18/13. I t was s igned by the N C DMB s E x e c u t i v e Secretary, Engr Ernest Nwapa.In trhe letter, Nwapa

stated that the board in conjunction with NIMASA is empowered by law to enforce the Cabotage Act in matters pertaining to Nigerian Content Development.The Boards attention has

been drawn to a letter by the Indigenous Ship owners Association of Nigeria to Chevron Nigeria Limited (CNL), demanding that you withdraw a Marine Notice NMA SBU Marine Notice

2010/02 by you dated 7th December 2011, the letter read.It continued: As stated in

the letter, the referred Marine Notice issued by CNL gave p r e f e r e n c e t o c e r t a i n classification societies and has been the reason for discrimination against the vessels belonging to Nigerian Ship owners.The discrimination against

N iger ian Sh ip owners Association is in violation of section 3(2) of the NOGICD Act 2010 which stipulates that first consideration shall be given to Nigerian companies.:Furthermore, sction 105 of

the NOGICD Act 2010 empowers the Board in conjunction with NIMASA to

enforce compliance with relevant sections of the Cabotage Act in elation to matters pertaining to Content Development. I n v i e w o f t h e

aforementioned, the Board urges CNL to withdraw the said Marine Notice and adopt the Classification Societies authorised by NIMASA.Industry sources, who

condemned the martime notice by Chevron, claimed that the notice, which countered that of NIMASA was published with a view to e x c l u d i n g N i g e r i a n classification societies from surveying vessels that provide services for Chevron.While the marine notice

that was published by C h e v r o n o n l y h a d c lassi f ication societ ies belonging to Association International Classification Societies, AICS, as against that o f NIMASA that i n c l u d e d N i g e r i a n classification societies, including the International Naval Survey Bureau, INBS, and the International Register of Ships, IRS.

Chevron Office in Lagos

The discrimination against Nigerian Ship owners Association is in violation of section 3(2) of the NOGICD Act 2010 which stipulates that first consideration shall be given to Nigerian companies

Members of t h e Indigenou s Shipowners Association of Nigeria, ISAN, have urged the N i g e r i a n M a r i t i m e Administration and Safety Agency, NIMASA, to grant national carrier status to the I SAN Sh i pp ing L i n e , established and owned by them.The shipping line was

formed in 2007 bymembers of the association with the aim of enabling Nigerian own ocean-going ships to participate, under the Cabotage Law, in lifting and transporting the nations crude oil, besides engaging in the wider international maritime business.

AWTHONE Marine and O f f s h o r e H

Services Limited, a subsidiary of United S t a t e s - b a s e d Hawthone Energy Services Company, has opened its African office in Nigeria with its operational base in LagosHawthone primarily

Local ship owners demand national carrier status

Sam IKEOTUONYE

Chief Isaac Jolapamo, chairman of the association, who made the request on behalf of the association in Lagos, explained that the ISAN Shipping Line had fulfilled relevant conditions required for its conferment with the national carrier status.Jolapamo, who emphasized

that the shipping line was set up to enable Nigerian ship owners play effectively in affreightment of the nations cargo, lamented the sorry state of local operators in the shipping sector.

The industry has been floundering like a rudderless ship for a very long time and we appear helpless. We are not only helpless

now but are now spectators in an industry where we should be calling the shots and this is the major challenge for the seasoned players who are

dwindling by the day, he said.ISAN members met two

weeks ago, during which they adopted a constitution that would enable them meet the demands of modern s h i p p i n g a s w e l l a s accommodate all Nigerians playing actively in the i n d u s t r y . N IMASA s E x e c u t i v e D i r e c t o r , Cabotage and Maritime L a b o u r o f N IMA SA , Barrister Obi Callistus Nwabueze ,was a t t he meeting to witness the a d o p t i o n o f t h e n ew constitution.Jolapamo, at the event,

ou t l ined s ome o f t he c h a l l e n g e s b e i n g experienced by Nigerian ship owners to include non-d i s b u r s em en t o f t h e Cabotage Vessel Financing F u n d , C V F F ; n o n -implementation of the vessel repair and maintenance subsidy which was initiated during the era of Dr. Ade Dosunmu, the f o rmer director general of NIMASA, and foreign dominance of the business. We are all here to secure

our maritime freedom and I implore every one of us to rise up to this challenge of mov ing t h i s i ndus t ry forward for the benefit of Nigeria and Nigerians.

Hawthone Offshore Services opens African Office in Nigeria

provides logistics supports services to oil and gas companies operating in the West African region.It provides world class

v e s s e l t r a n s p o r t f o r p e t r o l e u m p r o d u c t marketers in Nigeria, Togo, Republic of Benin and Ghana.Speaking with Sweetcrude

R e p o r t s , H a w t h o n e Executive Director, Captain Abel Memuduaghan, said

the firm has about 200 vessels operating in the African continent, adding that p lans have been concluded to break into the Nigerian oil and gas market.He explained that the

company has a commitment to meeting the need of its clients in the ever-changing offshore environment and that the firm has earned a reputation for consistent performance over the years.

Ship on the high sea

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TechnologyTechnology 52

Geoth e r m a l energy is the heat from the E a r t h . I t s c l e a n a n d sustainable. Resources of geothermal energy range from the shallow ground to hot water and hot rock found a few miles beneath the Earths surface, and down even deeper to the extremely high temperatures of molten rock called magma. Almost everywhere, the

shallow ground or upper 10 feet of the Earths surface maintains a nearly constant temperature between 50 and 6 0 F ( 1 0 a nd 1 6 C ) . Geothermal heat pumps can tap into this resource to heat and c oo l bu i ld ings . A geothermal heat pump system consists of a heat pump, an air delivery system (ductwork), and a heat exchanger-a system of pipes buried in the shallow ground near the building. In the

Geothermal EnergyGeothermal power plant

winter, the heat pump removes heat from the heat exchanger and pumps it into the indoor air delivery system. In the summer, the process is reversed, and the heat pump moves heat from the indoor air into the heat e x c h an g e r . T h e h e a t removed from the indoor air during the summer can also be used to provide a free source of hot water.In the United States, most

geothermal reservoirs of hot water are located in the western states, Alaska, and Hawaii. Wells can be drilled into underground reservoirs

f o r t h e g ene ra t i on o f electricity. Some geothermal power plants use the steam from a reservoir to power a turbine/generator, while others use the hot water to boil a working fluid that vaporizes and then turns a turbine. Hot water near the surface of Earth can be used directly for heat. Direct-use applications include heating buildings, growing plants in greenhouses, drying crops, heating water at fish farms, and several industr ia l p r o c e s s e s s u c h a s pasteurizing milk. Hot dry rock resources occur

at depths of 3 to 5 miles everywhere beneath the Earths surface and at lesser depths in certain areas. Access to these resources involves injecting cold water down one well, circulating it through hot fractured rock, and drawing off the heated water from another well. Currently, there are no commercial applications of this technology. Existing technology also does not yet allow recovery of heat directly from magma, the very deep and most powerful resource of geothermal energy.

Many technologies have been developed to take advantage of geothermal energy - the heat from the earth. NREL performs research to develop and advance technologies for the f o l l ow i n g g e o t h e rma l applications:

Geothermal electricity productionMost power plants need

steam to generate electricity. The steam rotates a turbine that activates a generator, which produces electricity. Many power plants still use fossil fuels to boil water for steam. Geothermal power plants, however, use steam

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Geothermal Energyproduced from reservoirs of hot water found a couple of miles or more below the Earths surface. There are three types of geothermal power plants: dry steam, flash steam, and binary cycle. Dry steam power plants

draw from underground resources of steam. The steam is piped directly from underground wells to the power plant, where it is d i r e c t e d i n t o a turbine/generator unit. There are only two known underground resources of steam in the United States: The Geysers in northern California and Yellowstone National Park in Wyoming, where theres a well-known geyser called Old Faithful. S i n c e Y e l l ow s t on e i s protected from development, the only dry steam plants in the country are at The Geysers.Flash steam power plants

are the most common. They use geothermal reservoirs of water with temperatures greater than 360F (182C). This very hot water flows up through wells in the ground under its own pressure. As it flows upward, the pressure decreases and some of the hot

water boils into steam. The steam is then separated from the water and used to power a turbine/generator. Any leftover water and condensed steam are injected back into the reservoir, making this a sustainable resource. Binary cycle power plants

operate on water at lower temperatures of about 225-360F (107-182C). These plants use the heat from the hot water to boil a working fluid, usually an organic compound with a low boiling point. The working fluid is vaporized in a heat exchanger and used to turn a turbine. The water is then injected back into the ground to be reheated. The water and the

working f luid are kept separated during the whole process, so there are little or no air emissions. Small-scale geothermal

power plants (under 5 m e g awa t t s ) h a v e t h e potential for widespread application in rural areas, possibly even as distributed energy resources. Distributed energy resources refer to a variety of small, modular p o w e r - g e n e r a t i n g technologies that can be combined to improve the operation of the electricity delivery system. In the United States, most geothermal reservoirs are located in the western states, Alaska, and Hawaii.

Geothermal direct useWhen a person takes a hot

bath, the heat from the water will usually warm up the entire bathroom. Geothermal reservoirs of hot water, which are found a couple of miles or more beneath the Earths surface, can also be used to provide heat directly. This is called the direct use of geothermal energy. Geothermal direct use

dates back thousands of years, when people began using hot springs for bathing, cooking food, and loosening feathers and skin from game. Today, hot springs are still used as spas. But there are now more sophisticated ways of using this geothermal resource.In modern direct-use

systems, a well is drilled into a geothermal reservoir to provide a steady stream of hot water. The water is brought up through the well, and a mechanical system - piping, a heat exchanger, and controls - delivers the heat directly for its intended use. A disposal system then either injects the cooled water underground or disposes of it on the surface. Geothermal hot water can

be used for many applications that require heat. Its current u s e s i n c l u d e h e a t i n g buildings (either individually

or whole towns), raising plants in greenhouses, drying crops, heating water at fish farms, and several industrial processes, such as pasteurizing milk. With s o m e a p p l i c a t i o n s , researchers are exploring ways to effectively use the g e o t h e rma l f l u i d f o r generating electricity as well. In the United States, most

geothermal reservoirs are located in the western states, Alaska, and Hawaii.

Geothermal heat pumpsThe shallow ground, the

upper 10 feet of the Earth, maintains a nearly constant temperature between 50 and 60F (10-16C). Like a c a v e , t h i s g r o u n d temperature is warmer than the air above it in the winter and cooler than the air in the summer. Geothermal heat pumps take advantage of this resource to heat and cool buildings. Geothermal heat pump

systems consist of basically three parts: the ground heat exchanger, the heat pump unit, and the air delivery system (ductwork). The heat exchanger is basically a system of pipes called a loop, which is buried in the shallow ground near the building. A fluid (usually water or a mixture of water and antifreeze) circulates through the pipes to absorb or relinquish heat within the ground.In the winter, the heat

pump removes heat from the heat exchanger and pumps it into the indoor air delivery system. In the summer, the process is reversed, and the heat pump moves heat from the indoor air into the heat e x change r . T h e h e a t removed from the indoor air during the summer can also be used to heat water, providing a free source of hot water. Geothermal heat pumps

use much less energy than c onv en t i ona l h e a t i n g systems, since they draw heat from the ground. They are also more efficient when cooling your home. Not only does this save energy and money, i t reduces air pollution. All areas of the United

States have nearly constant s h a l l o w - g r o u n d temperatures, which are suitable for geothermal heat pumps.

Geothermal Energy diagram

Small-scale geothermal power plants (under 5 megawatts) have the potential for widespread application in rural areas, possibly even as distributed energy resources

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Ni g e r i a s r e c o r d e d achievement of 2.6 million b a r r e l s o f crude oil daily has come under immense threats as Oil Vandals appears set to resume operations with intensity due to the long recess theyve been forced to embark upon since the government contracted ex-militants who knows the creek better to embark on survei l lance o f a l l o i l facilities in the Niger-Delta.Recently it was reported

that the Country has lost about N170 b i l l ion to pipelines vandalism in the past, an anomaly that was checked when the Jonathan-led government contracted ex-militants to monitor these facilities.The Pipelines and Products

M a r k e t i n g C o m p a n y (PPMC), while reacting to our reporters questions tried to put things in perspective.

Nigerias oil production faces immense threat

Oil vandals return with a vengeance

Yemie ADEOYE The nation is losing huge amount of money to the spate of vandalism across the country, both on crude theft and refined products.According to the company,

over N90 billion was lost to crude oil theft, against N10 b i l l ion lost to ref ined products stolen in 2011. In 2012 alone, stealing of crude oil through pipelines reduced to N 42 billion, while products theft increased to N20 billion.Considering the huge

damage on the lines, it was gathered that about N8 billion was spent to effect repairs on the lines between 2011 and 2012. This includes the expenditure on security and environmental integrity.The recent attack on oil

facilities was system 2b, Nigerias most strategic pipeline running Atlas cove, offshore Lagos up to Kwara state, the recent attack on this line is responsible for the epileptic supply of petrol across the Country which has given rise to occasional

vehicular queues at filling stations around Lagos, Abuja and other major cities in the Country. Aside from this about 3 staff of PPMC was also lost to the attack on Oil facilities by well trained and armed vandals.Meanwhile, the Nigeria

Security and Civil Defence Corps (NSCDC) said 1,283 suspected vandals had been arrested from early 2012 to January 2013, while this is true not a few industry watchers and analysts dismissed this as a scratch on

the surface as the real Vandals are too sophisticated to be apprehended like mere criminals.S p e a k i n g o n t h e

development Mr. Tamuno Green an Engineer with an oil servicing Company in Warri, Delta state said that a contract was signed by the federal government and some ex-militants for the purpose of intense surveillance of oil facilities in the Niger-Delta and afterwards there was sanity.Sometimes in 2012 the

President for whatever reasons thought it wise to engage the r epentant m i l i t a n t s i n a m o r e productive project of oil facility surveillance across the region and in Delta state for instance Oil Facility Surveillance Ltd was so contracted, and even if some of us criticized the rationale behind the Presidents actions back then it later dawned on us that nothing could have been more effective as this people seem to know the creeks better than government uniformed agents and in most instances they even know those who carry out these acts and penetrate them so easily, hence before long the Nations crude production began to rise! Not because new fields were discovered after all there has been no licensing rounds since 2008 or thereabout but we were as a nation able to ramp up 2.6 m i l l i o n d a i l y c r u d e production, that was due to the activities of these surveillance contractors, and now the Government has refused to renew their contract hence the rise in activities of oil Vandals. This is because the people

you refer to as vandals are not rag-tag or riffraffs they are professionals, very enlightened and educated people engaged by highly unscrupulous elements with a c c e s s t o c a s h a n d ammunitions, and they are also following events. They are aware that there is no c o n t r a c t b i n d i n g t h e surveillance companies of these dreaded ex-militants and the government, hence they should be able to unleash terror on o i l f a c i l i t i e s w i t h o u t interference, so I think the Government should as a matter of national urgency renew the contract for these companies to continue their surveillance activities of Oil facilities especially in the Niger-Delta, and this should not be politicized in any way in view of its strategic importance to national earnings and development.

Over N90 billion was lost to crude oil theft, against N10 billion lost to refined products stolen in 2011. In 2012 alone, stealing of crude oil through pipelines reduced to N 42 billion, while products theft increased to N20 billion

Illegal refinery set on fire

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Yenagoa - The J o i n t T a sk Force, JTF, code named O p e r a t i o n Pulo Shield, at the weekend launched an operation along the creeks and waterways of Delta and Bayelsa states, resulting in the seizure of three vessels and destruction of 362 illegal refineries.Areas affected by the

operation in both states include Kolokolo, Bisigo, Igbomatoru and Sagana.The Ogbokodo creek and

the Ugbokolo area of Delta State were also raided by the men of the JTF.Many of the indigenes of the

area panicked at the sight of armed soldiers and heavy gun boats, but were assured by the soldiers of their safety.The spokesperson for the

JTF in the region, Lt. Col. Oyeama Nwachukwu, said

JTF impounds 3 vessels, destroys 362 illegal refineries

the action was new as it is part of the strategy of the newly deployed commander, Major General Bata Debiro.The operation led to the

destruction of 362 illegal oil cooking ovens usually referred to as local refineries in Kolokolo area and Bisigbo in Warri South Local Government Area of Delta State; Igbomatoru, in Ijaw South Local Government and Sangana in Bayelsa

State,Nwachukwu stated.Three vessels and seven

barges engaged in oil theft were also scuttled by troops of the JTF in Opobo River, Bonny Local Government of Rivers State and Tomkiri in Brass Local Government of Bayelsa state.The operation also led to the

scuttling of 75 wooden boats (Cotonu boats) conveying illegally siphoned petroleum products at Ogbokodo creek

and Ugbokolo areas of Warri South West of Delta state. 175 suspects were arrested in the operation and handed over to prosecuting agencies for litigation.The JTF spokesman also

n o t e d t h a t t h e n e w commander of the JTF, Debiro, had unfolded his strategy to stamp out illegal oil bunkering in the Niger Delta.The new commander

averred that he would be highly mobile and fluid in the fight against illegal oil bunkering. He stated that sitting like a lame duck in the office is not his approach and had already embarked on an appraisal tour of t r o o p s d e p l o ym e n t s including Naval Forward Operational Bases (FOB) in Brass, Bonny, and Escravos. The tour also took him to Nigerian Navy Ship Delta in

Warri, and to amphibious t r o o p s o f 3 a n d 1 4 6 Battalions and 343 Regiment of Nigerian Army deployed in Warri, Bonny Island and Nembe respectively, he said.The commander of the

multi-agency security outfit, while on courtesy visit to m i l i t a r y f o r m a t i o n c ommander s , s e cu r i t y agencies and traditional rulers council in Bayelsa State Capital, Yenagoa during the week, General Debiro stated, unequivocally, that his mission is portrayed in the four-word directive of P r e s i d e n t G o o d l u c k Jonathan to the task force to StopIllegal oil bunkering.Nigeria is the only country

where people engage in oil theft with the connivance of our country men and we must put an end to it.

Joint Task Force in search of illegal refinaries

The new commander averred that he would be highly mobile and fluid in the fight against illegal oil bunkering

The European Union (EU) a n d t h e UNICEF have signed a five year contribution agreement worth 20.6 million euro to boost rural water and sanitation project in the Niger Delta Region.Mr Bishnu Timilsina,

UNICEF Water Sanitation and Hygiene Specialist (WASH), made this known in an interview with the News Agency of Nigeria (NAN) in Uyo, at the sideline of a two-day workshop on rural water supply and sanitation component of the N i g e r D e l t a Suppo r t Programme (NDSP).Representatives from

EU, UNICEF commits 20.6m euro for projects in Niger DeltaEU, UNICEF commits 20.6m euro for projects in Niger Delta

Akwa Ibom, Bayelsa, Delta, Edo, Rivers and other stakeholders such as the EU delegation, UNICEF, the Federal Ministry of Water R e s o u r c e s , N a t i o n a l Planning Commission and the Niger Delta Ministry, were at the project start-up workshop.Timilsina explained that

the aim of the workshop was t o b r i e f t h e s t a t e g o v e r nm e n t s o n t h e objectives, results and implementation modalities under the rural components of the NDSP.He said the project was

expected to contribute to conflict mitigation in the region by improving access to basic social services.

This project will support the state governments and the rura l water sani tat ion institutions in five Niger Delta states to develop and implement needed reforms in the sector. I t w i l l a l s o d e l i v e r

sustainable water supply, sanitation and hygiene services within communities and schools.Timilsina said that roles and

responsibilities of partners under the programme were being worked out as well as t h e c o s t - s h a r i n g a r r a n g e m e n t s a n d coordination mechanism.He said that the pilot

programme for the Rural Water Supply and Sanitation Component of the NDSP

would be implemented in two local government areas in each of the participating states.

He also said that the benefiting states, LGAs and the communities would make their contributions in form of counterpart funding to the programme.He said modalities were

being worked out to ensure t h a t t h e c o un t e r p a r t contributions would be deposited in the States Project Accounts before the procurement tender would be launchedT im i l s i n a s a i d t h a t

programme would provide employment opportunities and access to socio- economic services, public financial r e f o r m s , w a t e r a n d sanitation and the extension of micro- projects.

This project will support the state governments and the rural water sanitation institutions in five Niger Delta states to develop and implement needed reforms in the sector

EU, UNICEF commits 20.6m euro for projects in Niger DeltaEU, UNICEF commits 20.6m euro for projects in Niger Delta

Rural water project

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Two soldiers and o n e c r e w member was k i l l e d w h e n g u n m e n ambushed an Indian-owned oil barge, Tuesday, as it was being escorted by the military through Nigerias Niger Delta region, a security forces spokesman said.The vessel belonging to

Sterling Global Oil Resources, part of the Sandesara Group conglomerate, was fired on in the Angiama area of the delta, a c c o r d i n g t o O n y ema Nwachukwu, spokesman for mixed military and police

Three dead as gunmen attack Nigeria oil barge

brigades in the Niger Delta region.He added that the gunmen

were repell