Tuesday 06 March 2018 32 BUSINESS DAY C002D5556 Energy Report Strategic commercialisation of gas flaring hinged on right regulatory framework KELECHI EWUZIE Operators in the gas industry insists that achieving commercialisation of gas flaring and total flare out by 2020 as projected by the Federal Government will be dependent on having in place the right regulatory framework. They argued that with just a few years before we hit year 2020 and the unresolved issue of lack of gas infrastructure coupled with the widespread flaring of associated gas, the Nigerian government has much ground to catch up if it ever wants to achieve this projection. Emmanuel Ibe Kachikwu, Minister of State for Petroleum Resources had at different occasion stated that the expectation of government when it developed a Draft National Gas Policy was to set out strategies and an implementation plan for medium to long-term targets for gas market development. Kachikwu insists the policy will promote a competitive business environment for both current and new investors, articulates government’s vision for the sector and sets policy goals. Nigeria currently produces an estimated 7 billion scf per day and account for an estimated 182 trillion scf of gas reserve. Among this Olusola Bello figures, only 13.3 percent is consumed locally of which 8.9 percent is allocated to gas-to-power. He assures that most of the investment required in the sector will be drawn from the private sector as government will set the environment and support investors with appropriate interventions to bring their projects to fruition Ayodele Oni, an energy sector lawyer observes that the aspiration to commercialise gas flaring by government would just be a mere policy statement if managers of the economy doesn’t address pressing issues bedeviling gas sector in the country currently. Oni maintains that attracting the needed investment to drive the commercialisation of gas should The Nigerian Content Development and Monitoring Board (NCDMB) has begun the construction of the Nigerian Oil and Gas Park at Odukpani, Cross River State, with the goal of creating a regional low-cost manufacturing hub that would produce equipment components and spare parts that would be utilized in the Nigerian Oil and Gas industry. The Odukpani Park is the first to take off among four planned sites and will be followed by the site in Emeyal 1, Ogbia Local Government Area, Bayelsa State. Speaking at the groundbreaking ceremony weekend, Simbi Wabote, executive Secretary, NCDMB. credited his predecessors for initiating the Nigerian Oil and Gas Park Scheme (NOGAPS),adding that it “fits nicely into our 10-year strategy roadmap aimed at raising in-country value retention in the oil and gas industry from the current levels to 70 percent.” He described the ground-breaking as great step towards achieving one of the Board’s key start with the introduction of the domestic gas obligation which imposes an obligation on the oil companies to assign certain percentage of the gas being produced for domestic uses. “Looking at what is going on in the industry, the future is selling our gas domestically because the international prices are in decline”, he said. To him, “To achieve the commercialisation of gas flaring projection, the domestic market must be made attractive to investors who need to invest huge capital upfront in gas processing and pipeline for distribution”. Oni further observe that if the issues around credible and enforceable gas contracts coupled with a price regime are not tackled, willing local investors will NCDMB begins construction of C/River Oil & Gas park mandates,which is ‘’to develop capacity of local supply chain for effective and efficient service delivery without compromising oil and gas industry standards.’’ He asserted that about 2000 jobs would be created when the park begins full operation while the citizens of the host community and environs will benefit from on-the-job training opportunities. “This project will positively impact Cross River State in general and Odukpani community and its environs in particular. This positive impact will be felt both at the construction and operations stages of the project.” Wabote explained that NOGAPS sites are planned to be sited close to existing power plants while provisions are also made to generate captive power in a bid to address the electricity challenge that face most Nigerian manufacturers and businesses. Giving further details, he added that the “park occupies a total land mass of about 25 hectares which continue to shy away from putting their money into production of gas for local use. Deepak Khilnani, a gas operator acknowledges that the present government is doing a great job in prioritizing utilising domestic natural gas. He further observes that government is connecting the dots in the power industry by investing in not only power plants, but also the gas fields and the transmission and distribution networks. This is very important to encourage additional private investment in the sector. He insists that the attainment of these projects will not only broaden the economy; related industries will grow out of these projects, such that jobs and other multiplier benefits will follow. The key policy intervention that I believe would be a game changer would be to reduce the retail price of gas to industry to a competitive level, which in my view would foster significant industrial growth. Industry analysts are of the view that Nigeria’s gas development in the medium term could derive much from local demands as from export, if not in volume but in value. They believe that achieving the desire result in local gas supply or the lack of it will remain a very sensitive issue with government involvement in unrealistic prices. will comprise various warehouses, manufacturing shop floors and factories, training centre, hostels, administrative block, mini estate, security posts, fire station, including truck parking and holding areas.” The Executive Secretary also charged the host community to support and defend the project so it will be completed as planned, warning that the Board would discontinue the project if it faces unreasonable demands and disruptions by youths. In his remarks, the Deputy Governor of Cross Rivers State, Professor Ivara Esu congratulated the Board on the commencement of the project and promised that the state government will monitor and support the execution. The clan head of Odukpani, His Royal Majesty, Ekpeyong Effiok also spoke at the event and assured that the community is peaceful and the project will not be disrupted.He however pleaded that the youths in the community should be engaged in the construction and operation of the park. Nigeria’s first Marine Engineering Centre of Excellence takes off at Rivers State University The Centre of Excellence (CoE) in Marine Engineering and Offshore Technology established by the Shell Petroleum Development Company of Nigeria Ltd (SPDC)-operated joint venture at the Rivers State University (RSU) is set to open its doors to the pioneer students who are currently being screened in an elaborate admission process. More than 100 candidates had applied in response to newspaper advertisements, and the shortlisted ones are being screened and interviewed preparatory to commencement of studies in April. “We continue to thank NNPC and SPDC for being part of our success story at the university,” RSU Vice Chancellor, Professor Blessing Didia, said at the start of the admission interviews. “We are very happy that the centre has taken off, and we congratulate NNPC, SPDC and the other joint venture partners for what they have done for the university.” Also speaking, the Head of University Relations, SPDC, Professor Edmond Allison- Oguru, expressed the hope that the Centre of Excellence would bring the much-needed improvement in marine engineering and offshore technology in the Niger Delta. The CoE in Marine Engineering and Offshore Technology, the first in Nigeria, will run 18-month Master’s and Diploma programmes, covering classroom lectures, practical sessions, term project modules and a six-month internship in the oil and gas Mastercard and M-KOPA Solar partner to light up homes and businesses in Africa At Mobile World Congress in Barcelona, Spain, Mastercard and M-KOPA announced a partnership that will provide Africans living without electricity a simple way to light up their homes and businesses. M-KOPA, which already provides affordable, safe and clean energy to 3 million people in East Africa, will pilot Mastercard’s Quick Response (QR) payment technology in Uganda to extend the reach of its pioneering pay-asyou-go solar program. Masterpass QR, an open and interoperable technology will create a new payment channel for M-KOPA’s pay-asyou-go customers outside of Kenya. The network of mobile network operators and banks using Masterpass QR will help M-KOPA to scale and grow across Africa without requiring additional technology investments. Masterpass QR is currently available in Ghana, Kenya, Nigeria, Rwanda, Tanzania and Uganda. “We may take for granted our ability to produce light with the simple flick of a switch. But for many around the world, simple things like having electricity can be life changing,” said Kiki Del Valle, senior vice president, Com- industry. The multi-millionnaira facility was inaugurated in June 2017, during which Osagie Okunbor, SPDC, managing director and Country Chair, Shell Companies in Nigeria, pledged that it would produce industry-ready Master’s degree graduates to further advancements in Nigeria’s offshore technology sector. The SPDC JV had earlier established a CoE in Petroleum Engineering and Geosciences at the University of Benin, and endowed six professorial chairs in Nigerian universities as part of the support for the academia. In 2016, a Chair in Light Weight Automobile Engine Development was established at the Federal University of Petroleum Resources in Effurun, Delta State, which is expected to contribute to the growth of local content in Nigeria’s automobile industry. Also, research at the Shell Professional Chair in Petroleum Engineering at the University of Port Harcourt in 2012 produced the Optiwell well-bore stability software. Use of the software has significantly reduced drilling time as well as costs associated with mud loss and other drilling challenges. The support for universities is implemented along with other social investment schemes of the SPDC JV, which include the Shell Eco Marathon, the Sabbatical and Research Interns Scheme, Research and Development Grant for competitive proposals and Data support for academic activities from undergraduate to doctoral levels. merce for Every Device, Mastercard. “By using our digital payment capabilities, we want to make it easy for people to access reliable and regular sources of energy and become more economically resilient – earn a livelihood by working from home, keep shops and businesses open for longer and study after dark.” An estimated 16 percent of the world’s population — 1.2 billion people — have little or no access to electricity. In Sub-Saharan Africa alone, 625 million people lack access to electricity, relying on bio and fossil fuels such as wood, charcoal and kerosene. Solar is an independent way for people to power homes and businesses but requires a large, one-time investment. With pay-as-you-go financing, M-KOPA customers purchase a solar home system on credit and make small daily payments using mobile money for less than what they previously spent on hazardous, kerosene lamps. Customers will now be able to make daily payments or top up the solar accounts easily by either scanning a Quick Response (QR) code from their smartphone or by entering the merchant ID associated with the QR code into their feature phone.
Tuesday 06 March 2018 C002D5556 BUSINESS DAY THE BIG HEART DIGEST In association with Delta State Micro, Small and Medium Enterprises Developement Agency (DEMSMA) 33 More jobs for Deltans as N2.5bn refinery is set to birth in Isoko … Okowa sees peace as tonic, says Delta is now investors’ haven A N2.5bn refinery is set to birth in Isoko North Local Government Area of Delta State. This is seen as indication that the state is open for business and safe for investments that would provide more job opportunities for the youth of the state. Delta State governor, Ifeanyi Okowa, has not hidden his joy over the current atmosphere of peace and security in the state. He has thus continued to urge the citizens and all stakeholders in the state to sustain the tempo to enable them reap the multiplier effects. So far, wherever the governor goes, he has let the people understand that investors were investing in different parts of the state, saying it was evidence that no investor should be afraid of losing his investment to insecurity. Few weeks back, he assured the consortium handling the $20 billion Ogbidigben gas industrial park billed to be established in Warri axis of the state, that Delta was readiness to provide the needed security for the take-off of the project that is expected to spill jobs. STORIES by MERCY ENOCH, Asaba Gov Okowa is a medical doctor and thus many expect his state to be first in healthcare delivery. He reflects this posture in the yearly budgets. In 2018, he stated thus: For accessible, affordable and qualitative healthcare, the Delta State Contributory Health Commission was established in 2016. With just N7, 000 as premium, the health insurance scheme is already providing pre-paid health services to 112,169 registered enrolees. The scheme is currently functional in 63 secondary healthcare centres, while 97 primary healthcare facilities in the Now, a $2.5 billion refinery with the capacity to process 60,000 barrels of crude oil per day is set to birth in Isoko North Local Government Area of the state. Plans have been concluded for the groundbreaking ceremony expected to hold in May this year. The project is said to be a vertically integrated refinery that would be pollution-free by capturing all carbon dioxide emitting from the refinery. The management of Shepha Refinery and Petrochemical Company Limited, Ovrodhe, Isoko North LGA, led by the managing director, Wilson Agha, paid a courtesy visit on Governor Okowa, at Government House, Asaba, Thursday, March 1 where they briefed on the success of proposed project. Agha informed of its forth-coming groundbreaking ceremony as well as asked for security during the event. An elated Governor Okowa congratulated the management of the firm for concluding the process of the ground-breaking ceremony. He thus assured: “Isoko nation is peaceful but I want to assure you that we take matters of security very serious in this state.” He described the state as “bride of investors” with the huge deposit of oil and gas in the area just as he expressed joy with the level of investors harnessing the peaceful atmosphere in the state. According to the Governor, “A lot of companies Editorial coordinator’s corner: Understanding Delta’s 2018 fiscal direction: Health IGNATIUS CHUKWU Delta State Governor, Ifeanyi Okowa (left); receiving a letter of address from, His Royal Majesty Emmanuel Efeizomor II, Obi of Owa (middle) and His Royal Majesty, Jonathan Kanegede I, Ogene of Ibedeni, during a meeting by the Governor with Traditional Rulers, at Owa Oyibu, Delta State. State have been designated to commence provision of services under the scheme. The Free Maternal and the Free Under-Five Healthcare programmes that were initiated by the previous administration in 2007 and 2010 (respectively) are still being implemented. In January 2017, the financing of these programmes was taken over by the Delta State Contributory Health Commission. As at July 2017, total enrolment of these categories of people in the scheme stood at 71,350 (under 5 - 44,445; maternal – 26,905). Registration of civil servants under the scheme has commenced and is currently in progress. Sustaining the Free Maternal and the Free Under-Five Healthcare programmes has been critical in ensuring that the maternal mortality ratio and under-five mortality in the State remain the lowest in the country. We have infused vigour and vitality into the teaching hospital at Oghara with critical personnel changes and the overhauling of the MRI and CT scan facilities that are now functional. In addition, we have instituted Public-Private Partnership for some diagnostic services to ensure sustainability, and a grant of N142m was released to the institution to meet pressing needs. Infrastructural work at the Asaba Central Hospital has continued to receive priority attention from this administration and is now almost 70% completed. The health sector has received significant penetration of information technology with the signing of the Memorandum of Understanding (MoU) with Instrat Global Health Solutions. This is a pilot project in partnership with Instrat Global Health Solutions to digitize data management processes in our primary and secondary health facilities and eliminate the challenges associated with manual collation and assessment of data. With a unique software, ‘CliniPAK,’ some of our healthcare centres are now are coming to Delta State because. The state is largely peaceful and we are doing a lot to maintain that peace. With the oil and gas that we have, Delta State is the place to invest. We like investors, we know the important roles they play in the lives of our people and we will continue to encourage them in whatever way possible for them to succeed”. Earlier in the week, Governor Okowa had while addressing traditional rulers in the state, described the peace existing in different parts of the state as “a tonic for investors”, and urged the natural rulers to sustain the peace in their kingdoms. “When the different kingdoms and local government areas are peaceful, I will have less need to hold security council meetings.” Gov Okowa spoke at the 10th coronation anniversary ceremony of Emmanuel Sideso, Abe I, the Ovie of Uvwie Kingdom, Uvwie LGA of the Delta State which was well attended by top government functionaries, illustrious sons and daughters of the state, even as minister of state, petroleum resources, Ibe Kachikwu, represented the federal government at the occasion. able to streamline electronic medical records, data capture and a reporting system that would cover patient registration and demographics, vital statistics, diagnosis, treatment, case review and administrative task support, lab order management, pharmacy distribution and inventory control, as well as patient flow management. The software also offers both workflow and forms-based data capture at the point of care and real time access to patient records and reporting tools. This digitisation process is a big boost to the State’s implementation of the Saving One Million Lives Programme for Results. 63 traditional rulers want Okowa to seek 2nd term so job creation drive can continue The endless job creation opportunities being created in Delta State may have spurred traditional rulers in the state to demand for a second term for the administration. Thus, 63 recognized traditional rulers in Delta North Senatorial District have passed a vote of confidence on the state governor, Ifeanyi Okowa, and endorsed him for a second term in office, saying they took the action because of the governor’s tirelessness in seeking the people’s well being and progress. The natural rulers took the action during a meeting held at the Palace of the Obi of Owa, Obi Emmanuel Efeizomor II under the aegis of Delta North Traditional Rulers Forum (DNTF), last week. “We are not surprised that your massive people-oriented programmes are being recorded and appreciated by many through numerous awards, and since you are not tired in seeking the people’s well-being and progress, we unequivocally pass a vote of confidence on you, Governor Okowa, and your administration”. They made the declaration in an address read by the Ogene of Ibedeni, Jonathan Kanegede I: “We, the Royal Fathers, the sixty-three traditional rulers representing the various groups in Delta North, on behalf of our chiefs and the entire people, are happy with your famous SMART agenda, the massive road construction across the state, Youth Agricultural Entrepreneur Programme, Skill Training Entrepreneurship Programme, and many others too numerous to mention”. They want the youths in the state to take advantage of the various empowerment programmes in the state to better their future rather than destroying their future by embarking on negative tendencies. Responding, Governor Okowa expressed appreciation, saying, “if vote of confidence comes from those who own the land, we must appreciate it. Most importantly, I thank the traditional rulers for providing the enabling environment for my government to execute its programmes”. He added that a lot was being done and that more would still be done.