DPR identifies 6 key areas of operational excellence for oil, gas industry

Mr Sarki Auwalu, Director, DPR

The Department of Petroleum Resources (DPR) has identified six key areas of operational excellence for Nigeria's oil and gas industry, advising stakeholders to build a culture in these specific areas.

Mr Sarki Auwalu, Director, DPR, made this known on Thursday while delivering a keynote address at the 2021 Oloibiri Lecture Series and Energy Forum (OLEF) organised by the Society of Petroleum Engineers (SPE) Nigeria Council.

Auwalu listed the key areas as health, safety and environment; cost performance and return on capital for all stakeholders across all assets, as well as  use of appropriate and consistent standards across the entire business. 

He said it also included continuous improvement culture that strives to exceed set targets; human capital development and improved reputation based on efficient operations and sustainable business practices. 

"DPR will regularly review the industry performance on operational excellence based on the above measures and provide appropriate feedback to respective companies and the industry in general," the director said.

According to him, the DPR will only use regulations as tools to allow the industry to develop and operate their assets safely, reliably, sustainably and cost effectively. 

He noted that the the theme of this year's event, ‘Operational Excellence and Portfolio Optimisation, Way Forward for the Oil & Gas Industry Post COVID- 19’ was very apt in view of current global realities.

Auwalu said: "It would be recalled that in the wake of the ‘Triple force’ of COVID-19, Oil Price Crash and OPEC+ cuts that impacted the global petroleum industry, the department, under the leadership of the Honourable Minister of State, rolled out four  strategic focus fo industry repositioning and business optimisation. 

"These measures were to ensure that the Nigerian Oil and  Gas Industry survive and thrive in the face of severe economic disruptions and daunting challenges.

" The Department has continued to monitor industry metrics and we are optimistic that the Industry is emerging stronger with key indicators pointing northwards. 

"A note of caution is in order though, like the saying goes: ‘The storm may be over; but storms come and go. Storms are part of life’. 

"Accordingly, we need to keep our eyes on the ball and make concerted efforts to wade through the fragile business environment by eliminating inefficiencies, reducing cost, 

building partnerships, and entrenching collaboration in the industry."

He said the DPR under his leadership was a business enabler and opportunity provider and would continue to incentivise operational excellence rather than focusing on sanctions.

"To achieve improved industry performance and businesses optimisation, DPR has streamlined its processes and leverage technology to enhance value, reduce industry cost of operations and support business continuity.

" Today, most of our processes are digitised through the DPR suite of business automation solutions for data gathering, reporting, issuance of Licences, Permits and Approvals, inspections, reviews and audits and so on," Auwalu added.

The DPR boss also urged stakeholders in the industry to leverage on the recently inaugurated National Oil and Gas Excellence Centre (NOGEC)to drive Safety, Value and Cost efficiency in the industry. (NAN)

Road safety: Total Nigeria trains 2,181 truck drivers in 4 years

By Solomon Asowata

Total Nigeria Plc says it has trained 2,181 petroleum truck drivers to enhance safety on roads and smooth distribution of products across the country in the last four years.

The oil firm said on Thursday that it also audited 2,740 trucks used for conveying petroleum products within the same period to ensure their road worthiness.

Mr Eghosa Okhuanesogie, the Product Transport Safety Manager, Total Nigeria Plc, made the disclosure in a virtual media engagement on “Total Nigeria Truck Plc Driver’s Initiative’’.

Okhuanesogie said the training and audit were conducted at Total Nigeria Drivers Training Centre in Ibadan from 2017 to 2020.

According to him, statistics by the Petroleum Products Marketing Company (PPMC) reveals that more than 1,200 trucks are loaded daily with petroleum products across Nigeria which makes it imperative for drivers to be properly trained.

Okhuanesogie noted that trucks belonging to Total Nigeria and its transporters had recorded zero fatalities since inception of the mandatory training and audit.

“The three-day training is done every two years. The lectures are translated to Yoruba, Ibo and Hausa and drivers are given a pocket safety handbook as well as information booklet to educate them on what and what not to do while on the road,’’ he said.

According to him, Total Nigeria also organises an annual drivers competition which sees three winners each emerging from the North, East and West regions of the country with winners rewarded with cash and gifts.

He said an overall winner wass selected among the nine competitors and also presented with gifts and cash aimed at encouraging drivers to adhere to safety on the road.

Also speaking, Mr Muhyideen Nurudeen, the General Manager, Health, Safety, Environment and Quality, Total Nigeria Plc, said the drivers were being monitored through the installation of On Board Computers and Cameras on their trucks.

According to Nurudeen, drivers are mandated to abide by the prescribed rest hours while the company also has a policy of removing trucks above 10 years old from its operations.

He said Total also had a zero policy for alcohol intake by its drivers and those of its transporters, stressing that tests were usually carried out on them at the loading and discharge points.

On his part, Mr Charles Ebereonwu, Country Communications Manager, Total Nigeria Plc, said the initiative was a welcome development that should be embraced by other stakeholders in the sector.

“In training drivers, we are protecting the road, we are protecting our citizens and protecting the products to ensure they get to their destinations as and when due,’’ he said. (NAN)

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Edited by Folasade Adeniran/Ese E. Ekama

 

EKEDC appeals for calm amid prolonged outage in Lekki-Ajah corridors

Eko Electricity Distribution Company (EKEDC) has appealed for calm following the prolonged outage experienced by its customers in the Lekki, Ikoyi and Ajah areas under its network.

The electricity Distribution Company made the appeal in a statement signed by its General Manager, Corporate Communications, Godwin Idemudia on Friday in Lagos.

Idemudia said EKEDC regrets the outage which was being experienced by the customers and was working with the Transmission Company of Nigeria (TCN) to ensure that supply was restored very shortly.

He said that the ongoing repair work was almost completed.

Idemudia said: “We are not unaware of the difficulties our customers are experiencing within the Lekki, Ajah and Ikoyi areas of our network.

“As we have restated earlier, the outage is as a result of ongoing maintenance by our TCN partners.

“While the work is already behind schedule, we are glad to inform our customers that the repair work has reached an advanced stage and will be completed as soon as possible.”

He thanked the customers for their continued support and cooperation and assured them that EKEDC was committed to its objective of providing reliable power to its customers. (NAN)

Absence of effective legislature responsible for delay in implementation of Nigeria Gas Master Plan, says expert

 An oil and gas expert, Dr David Ige says the absence of effective legislature is responsible for the delay in the full implementation of the Nigeria Gas Master Plan.

The News Agency of Nigeria (NAN) reports that Ige, Managing Director, GasInvest Limited,  made the assertion on Thursday in Lagos at a Media Engagement Session on the Petroleum Industry Bill (PIB)

The session was organised by the  Facility for Oil Sector Transformation Project (FOSTER).

Ige said the Nigeria Gas Master Plan was conceptualised in 2005 to make the gas sector among the top five in Africa by deepening gas utilisation in the country.

He said unfortunately, the delay in passage of the PIB which could have provided a clear fiscal framework to attract investors, stalled the implementation of the plan.

According to him, with over 200TCF of proven gas reserves, Nigeria has the potential of becoming a gas-based industrialised nation if the right policies and infrastructure are put in place.

Ige said: "You cannot have a fully competitive gas market without a competent regulator to drive it to full liberalisation.

"So, the law must provide sufficient legislative incentives to allow the market to grow at the rate it was projected to grow."

He noted that with International Oil Companies now moving their Investment towards renewables, it was imperative that Nigeria use the limited time remaining to maximise its oil and gas resources.

Ige said the PIB, which was currently before the National Assembly ought to have been passed a decade ago, stressing that the country could not afford any further delay.

Petroleum engineers want deployment of technology to curb oil theft

The Society of Petroleum Engineers (SPE) Nigeria Council says deployment of modern technology can assist in curbing crude oil theft in the country.

Mr Tunji Akinwunmi,  Chairman, SPE Nigeria,  made the assertion while speaking with newsmen  in Lagos on Wednesday.

He spoke ahead of the council’s 2021 Oloibiri Lecture Series and Energy Forum (OLEF) holding on  March 18 in Abuja.

Akinwunmi said that some operators had started utilising drones and other modern gadgets to monitor pipelines and petroleum infrastructure.

He said that  it needed to be expanded and sustained.

Akinwunmi said that the COVID-19 pandemic had negatively affected the oil and gas industry, hence the need to improve on operational excellence and portfolio optimisation going forward.

According to him, both factors can help to reduce the Unit Operating Cost (UOC) of producing crude oil in Nigeria which the government targets to be not more than $10 per barrel by December 2021.

Akinwunmi also noted that the passage of the Petroleum Industry Bill , currently before the National Assembly, would stimulate more activities in the oil and gas sector.

He said it would maximise opportunities for the benefit of the country.

On the 2021 OLEF,  he said Chief Timipre Sylva, Minister of State for Petroleum Resources; and Mr Mele Kyari ,Group Managing Director, Nigerian National Petroleum Corporation; were among stakeholders expected at the hybrid event.

He said also expected as keynote speaker is  Director, Department of Petroleum Resources, Mr Sarki Auwalu.

Akinwunmi said the lecture would look at reducing overall cost of doing business through digitalisation, reevaluation of operational strategies, deployment of local technology and entrenchment of good governance.

The SPE chairman said over 3,000 participants from the industry, government and academia are expected to participate in the lecture both online and offline. (NAN)

Dangote Refinery coming on stream (Pictures)

Ex-trade minister backs full deregulation of petroleum downstream sector

Mr Okechukwu Enelamah, former Minister of Industry, Trade and Investment, on Thursday said the full deregulation of the petroleum downstream sector would allow the industry to reach its full potential.

Enelamah also advised the Federal Government to look for a win-win solution to the issue of removal of petrol subsidy, being the right thing to do from an economic perspective.

The News Agency of Nigeria (NAN) reports that Enelamah spoke at the 18th Annual Memorial Lecture of Chief Aret Adams, the first Group Managing Director of the Nigerian National Petroleum Corporation (NNPC).

The lecture  had as its theme: “Total Deregulation of Nigeria’s Downstream Oil and Gas Sector: Challenges and Opportunities.”

The former minister, who chaired the lecture, said  a lot of capital would be freed up for developmental purposes if the sector was fully deregulated.

He noted that the deregulation of the telecommunications sector which had transformed to a $20 billion industry in less than 20 years was a pointer that same could be achieved in the petroleum sector.

According to him, true competition, independent market regulator, consumer protection and investor protection are some of the factors that can help achieve a fully deregulated petroleum sector.

Delivering his lecture, Mr Tunji Oyebanji, Chairman, Major Oil Marketers Association of Nigeria (MOMAN), said Nigeria lost $13 billon in 2019 to non-functional refineries.

Oyebanji noted that if the four NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.

He said : “Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space.

“Total deregulation is more than just the removal of price subsidies, it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain and resulting in the growth in the nation’s downstream petroleum sector as a whole.”

Oyebanji said that though the government had announced the removal of petrol subsidy in March 2020, with the price of crude  oil above $60 per barrel, the N162 the product was currently being sold was below the landing cost.

He said NNPC as the sole importer of petroleum products was currently defraying the cost through ‘under recovery”, stressing that this was not sustainable in the long run.

The MOMAN chairman also disclosed that Nigeria had the cheapest fuel price among its African neighbours, which encouraged smuggling of the product across its borders.

He said deregulation would increase more investment especially with the taking off of the African Continental Free Trade Agreement (AfCFTA) which would give Nigerian businesses opportunities to expand.

Oyebanji said the coming of stream of the 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and others would transform Nigeria into a net exporter of crude oil  in the near future.

In his address of welcome, Mr Charles Osezua, Chairman, Board of Trustees, Aret Adams Foundation, said the late NNPC boss had over 32 years ago championed the campaign for full deregulation of the downstream sector.

“Aret fought for the removal of subsidy and wanted to release the creative and entrepreneurial capacities of Nigerians.

“There was resistance which led to his removal as the GMD which was termed ‘national interest’, but 32 years later, the discussion of subsidy removal remains topical and emotive, ” Osezua said. (NAN)