Views
1 month ago

BusinessDay 11 Apr 2018

Wednesday

Wednesday 11 April 2018 C002D5556 BUSINESS DAY 05 POLICY Tanzania’s new $344M natural gas plant holds lessons for Nigeria ISAAC ANYAOGU With a population of over 54 million and grid connected power capacity of 1,400 MW, frequent power outages were the norm in Tanzania. All these will change soon as the country, one of Africa’s top ten economies, last week, opened a brand new $344 million, 167.82-megawatt natural gas power plant outside of the nation’s commercial capital, Dar es Salaam. Tanzania had always depended on hydropower but frequent droughts acted as threats to the country’s energy ambition. Along with new Kinyerezi II natural gas plant, the East African nation, in July, is embarking on a massive 2,100 MW hydropower project, to be built at the Stiegler’s Gorge in the Selous Game Reserve which would be completed in 2021. Combined with the new natural gas plant, Tanzania is expecting to solve the nation’s previous power woes with this massive development in the nation’s power generation capabilities. Analysts say the country may soon be able to sell off surplus energy to other countries. But what were some of the factors that helped the country on its way of realising its energy ambitions? Unlike many African countries that rely on China, John Magufuli, president of Tanzania turned attention to Japan. Japanese company Sumitomo Corp. constructed Tanzania’s new natural gas plant, and a Japanese bank loan covered 85 percent of the $353.72 million price tag. This is significant because it does not come with exploitative terms and conditions Chinese loans are perversely reputed for which sometimes demands Chinese citizens involved from project design to clearing bushes, leaving little value for the country’s citizens. While Nigeria regales its citizens with a dubious claim that it is spending over N1.4 trillion a year on fuel subsidies, Tanzania has moved away from importing fossil fuels to focus on using their own domestic natural gas reserves, allowing them to save $4 billion between 2015 and 2017, and therefore massively accelerate domestic economic output and capabilities. The adoption of natural gas and the shift away from HFO and diesel has also saved nearly $6.7 billion just in 2015. In Nigeria, the government is making arguments on why it needs to maintain a fraudulent subsidy regime that is cost the country billions. With landing cost of petrol put at N171 per litre, the Nigerian National Petroleum Corporation (NNPC) incurred N37 on each litre of fuel at a depot price of N133.80, leading to a daily subsidy of N2.046billion for 55million litres. The landing cost of petrol has been higher than N145, after crude oil prices rose to $45 per barrel in January 2017. This puts total subsidy spends since February 2017 to February this year at N746.79billion. There is no better manual on how to self-destruct an economy. Tanzania has 57 trillion cubic feet of proven natural gas reserves, but they are mostly undeveloped and infrastructure is still unavailable. Tanzania will need to invest $46.2 billion over the next 20 years to overhaul its outdated energy infrastructure and increase output capacity to meet with the developing nation’s fastgrowing demand for electricity. Nigeria has significant proven gas reserves of 187 Trillion Cubic Feet, (TCF) which ranks it the ninth in the world. But the LPG market has witnessed massive growth from less than 70,000 metric tonnes consumed in 2007 to about 500,000MT currently according to the operators. There are opportunities in Nigeria with deeper adoption of natural gas both for CNG vehicles and other uses for domestic gas but the country’s energy policy is grossly deficient. “There is a strong economic, environmental and security case for use of gas in Nigeria, including even for Compressed Natural Gas (CNG) cars” said Chijioke Mama, energy analyst and founder of EnergyDatar, an energy intelligence firm, in a recent comment for BusinessDay. Operators say big policy initiatives that will encourage investments in manufacturing plants, storage facilities and jetties, and the promotion of gaspowered vehicles are required in Nigeria.

Wednesday 11 April 2018 06 BUSINESS DAY C002D5556 WEST AFRICA ENERGY intelligence Brief Eni offices searched in Congo Republic corruption probe Offices of Italian oil major Eni were searched and documents seized in an investigation by Milan prosecutors into alleged corruption in Congo Republic, the company said. Prosecutors asked the company to hand over documents relating to operations in Congo between 2009 and 2014, an Eni spokesman said adding that Eni had met the request. The state-controlled major, under investigation in a separate case over alleged corruption in Nigeria, said the offices of two employees at the company had been raided, but gave no names. Eni said last year it was being investigated by Milan prosecutors for international corruption in the Congo Republic. The case revolves around agreements signed by Eni’s Congo subsidiary with the country’s Ministry of Hydrocarbons between 2013 and 2015 covering exploration and production permits and the choice of partners in the African country. The sources said prosecutors were investigating whether certain contracts hid bribes to Congo public officials. “Eni has absolutely nothing to do with alleged wrongdoing regarding operations that are the object of investigation,” the Eni spokesman said. Eni has worked in the Congo Republic since 1968. In 2016 it produced 98,000 barrels of oil equivalent per day in the country. finance people appointments Ibe Kachukwu to deliver keynote address at Brandzone’s ‘Light Up Nigeria Energy Conference’ The Honourable Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, will be delivering the keynote address at this year’s Brand Innovation Light Up Nigeria Energy conference with the theme; “Repositioning the energy sector for growth” which would hold on Tuesday May 15th, 2018 at the Oriental Hotel, Lagos. The annual Brand Innovation Conference is organized by Brandzone Consulting LLC. The Light Up Nigeria conference advisory board and conference chairperson is Tonye Cole, Executive Director & Co- Founder Sahara Energy Group. Other key industry thought leaders confirmed as Speakers at the upcoming conference include Gabriel Ogbechie, Managing Director CEO, Rainoil Nigeria Limited, Nkechi Obi, Vice Chairperson, Techno Oil, Joe Ezigbo Founder and CEO, Falcon Corporation, Dada Thomas, President Nigeria Gas Association and Founder/CEO, Frontier oil Limited, Yomi Awobokun, CEO, Enyo Re- tail Oil and Gas, and others. The Brand Innovation Conference in its 5th year, is an annual multi-sector Thought Leadership Series created by Brandzone Consulting LLC. The conference gathers industry thought leaders, global leaders, technocrats, government policy makers, economic experts, investors, regulators and experts from diverse sectors and industries annually. So far, the yearly event has become a platform for the dissemination of accurate and beneficial narrative around the Conference focus area. This year’s conference is primarily focused on the Nigerian Energy sector. The Light Up Nigeria conference is designed to draw industry experts across the various subsectors to share insights and knowledge on industry growth topics, collaborate and deliberate on timely relevant issues that would help to unlock opportunities for growth in power generation, transmission and distribution. It is structured to stimulate the downstream sector growth, drive energy availability through increased natural gas optimization, and the provision of power to enterprises. It would also explore the opportunities in building strong Energy brands as a lever for overall sector growth and national development. As Nigeria’s most influential industry conference, the annual Brand Innovation Conference is a transformation platform that leverages its extensive network of experienced and accomplished speakers for knowledge sharing, proffer solution to issues of national and economic development while building a networking platform that fosters collaboration and growth. Speaking on the conference, Chizor Malize, Managing Partner and Chief Executive Officer of, Brandzone and Convener of the Light Up Nigeria Energy Conference said “Energy plays a crucial role in the economic growth, progress, and development, as well as poverty eradication and security of any nation. Uninterrupted energy supply is a vital issue for all countries today. Future economic growth depends largely on the long-term availability of energy from sources that are affordable, accessible, and environmentally friendly. JP Morgan says it knew ex-minister linked to firm in Nigeria oilfield deal JP Morgan Chase has acknowledged it knew a former Nigerian oil minister convicted of money laundering would benefit when it transferred over $800 million of government funds to a company he controlled, according to a court document seen by Reuters. JP Morgan made the acknowledgement in its legal response to a lawsuit filed by Nigeria over transactions made by the US bank when Royal Dutch Shell and Eni bought offshore oilfield OPL 245 from Malabu Oil and Gas in 2011. The $1.3 billion deal has spawned legal cases spanning several countries and involving Nigerian government officials and senior ENI and Shell executives, a number of whom face trial in Italy on corruption charges next month. Malabu is controlled by Dan Etete, who was Nigeria’s oil minister at the time of the deal and was convicted of money laundering in France in 2007. The lawsuit against JP Morgan accuses the bank of negligence over the transfer of funds from a Nigerian government escrow account into which Shell and Eni had deposited money to secure OPL 245. It claims $875 million from the bank. In its written defense, filed in a British court last week, JP Morgan said Britain’s Serious Organised Crime Agency (SOCA), now renamed the National Crime Agency, had approved the transfers to Malabu. It denied negligence. The bank had previously said only that it “considers the allegations made in the claim to be unsubstantiated and without merit”. It was not immediately clear whether JP Morgan’s acknowledgement that it knew of Etete’s links with Malabu will have any impact on the trial starting in Milan in May. Eni’s chief executive is among those going on trial in Milan on charges of paying bribes to Etete and others, including sums that went to Malabu. Shell and Eni deny wrongdoing in relation to OPL 245. Shell said in April last year that it “always knew” the Nigerian government would compensate Malabu and that Etete was involved. It had previously told Reuters only that payments went to the Nigerian government. The lawsuit against JP Morgan said that although it received a request from Nigeria’s finance ministry to transfer funds to accounts controlled by Malabu, the bank showed gross negligence by not making further checks before allowing the transaction.

IT Focus Mar-Apr 2018
Exclusively British Mar/Apr 2018
Kidney Matters - Apr 2018 Final - Web
IRSE NEWS 166 Apr 11 with Watermark.pdf
Apr 11 2013. - Images Alberta Camera Club
Tropicana Magazine MAR/APR 2018 (Vol 117: Edge Of Excitement)
Compliance Seminar New Orleans - Apr 11-12, 2012 - SERC Home ...
Apr 2009 - Issue 11 - United 1st Federal Credit Union