Marketers, airlines dialogue over aviation fuel price hike – MOMAN

Lagos, March 16, 2022 (NAN) The Major Oil Marketers Association of Nigeria (MOMAN) says it is holding talks with domestic airlines for steady supply of aviation fuel for their operations.

Mr Clement Isong, Executive Secretary, MOMAN, confirmed the development in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

He said the engagement followed the intervention by the House of Representatives and supervision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The executive secretary empathised with all stakeholders, including ordinary Nigerians who are struggling with the consequences of the increment in the price of crude oil at the international market.

Isong blamed the hike in the price of crude oil and its derivatives such as aviation fuel, petrol, diesel and kerosene on the ongoing hostilities between Russia and Ukraine.

“We understand their pains even the Federal Government that is paying a higher cost to subsidise petrol.

“The rise and fall of oil prices is cyclical. We have been here before and we are hoping that within a short period that international supply of crude will adjust to meet demand and prices will come down to more acceptable levels,” he said.

According to him, the situation can also abate if marketers are able to get foreign exchange at decent rates instead of sourcing from the parallel market.

Isong, however, advised the domestic airlines to change the way they do business to enable them get steady supply of aviation fuel to run their operations.

He urged the airline operators to clear their debts and adopt a pricing formula for procurement of aviation fuel in line with international best practices.

Isong said: “There is aviation fuel in the country. However, the product is expensive. Many of us who have contracts with international airlines have to keep stocks for them.

“Now, international airlines pay for their products based on a pricing formula, so it is predictable. There is no quarrel on the price. It is Platts plus Premium.

“The Premium is fixed. The Platts, which is a price benchmark service for the oil industry, goes up and down depending on the international market price.”

The executive secretary said the pricing template is transparent and predictable.

“I should also add that we buy the product in forex and the foreign airlines pay in forex. So there is no forex risk.

“For the local airlines, there are two challenges. First of all they don’t like signing binding contracts based on pricing formula. They prefer running from one marketer to another trying to get products at cheaper rates.

“Secondly, many of them are owing. They are owing millions of naira to the industry not just marketers alone. When they finish from one marketer, they run to another one.”

According to him, the marketers are demanding that the airlines  pay up their debts because the burden on the industry is becoming too much.

Explaining further, he said adopting a pricing formula meant that the marketer must commit to a volume of products that would be supplied to the the airline within a specific period.

“The pricing formula means that you buy over a period of one month a certain quantity of products and the airline must pick that product.

“So when they have agreed, you go and buy that volume and you keep for them but if they don’t agree, you can’t keep that volume for them,” he said.

He explained that the domestic airlines had to change the way they did business.

“This is what the Group Managing Director of Nigerian National Petroleum Company Ltd., Mele Kyari has asked them to do.

“There are international best practices that they need to adhere to in running their businesses.

“This include a pricing based formula committing to volumes and also clearing their outstanding debts to ensure smooth operations in the sector.

“If they adopt this method, marketers can take the risk of buying products and keeping for them in our tank farms but they need to commit to volume because that is how the business is done,” said Isong.

The executive secretary said he had nothing but respect for the domestic airlines who had over time invested in leasing more modern aircraft to improve the quality of their service to their passengers.

He added that he equally understood the challenges in charging airfares that were reasonable but allowed them to meet their obligations to their vendors. (NAN) (www.nannews.ng)

CSR: Ikeja Electric upgrades electrical workshop at Ikorodu Technical College

Mrs Folake Soetan, Chief Executive Officer, Ikeja Electric Plc, flanked by other dignitaries unveiling the upgraded electrical workshop at Government Technical College, Ikorodu on Tuesday in Lagos.

By Solomon Asowata 

Ikeja Electric (IE) has renovated and upgraded the electrical workshop at Government Technical College, Ikorodu, as part of efforts to support the improvement of technical capacity building in Lagos State.

The News Agency of Nigeria (NAN) reports that the workshop was inaugurated by Mrs Folake Soetan, the Chief Executive Officer, Ikeja Electric, on Tuesday in Lagos.

Soetan noted that the gesture was aimed at boosting technical education in the state, while complementing the efforts of government through its Corporate Social Responsibility (CSR) initiatives.

She emphasised that the electricity distribution company remains passionate about giving back to communities where it operates.

Soetan said: “We care about our customers and we look for every opportunity to support them, through our CSR platform, which has touched thousands of lives positively.

“We acknowledge the efforts of the federal, state and local governments in providing quality education for our children and raising the future leaders of tomorrow.

“No doubt, the responsibility being handled by government is huge and demand is enormous. Government cannot do it all alone.

“That is why private organisations like Ikeja Electric throw their weight behind initiatives that support government and drive development. At IE we give back to the societies where we operate.

“Therefore, in line with our commitment toward education, we decided to rehabilitate the electrical workshop at Government Technical College, Ikorodu.”

According to her, the upgraded workshop will enhance technical capacity building and create a conducive learning environment for the students.

Speaking further, Soetan noted that education was the bedrock of development for any nation.

“Clearly, when technical skills are encouraged among young people, it helps a nation to develop in terms of technology, economy, manpower, self-sustenance, creation of job and reduction of unemployment,” Soetan said.

The Lagos State Commissioner for Education, Mrs Folashade Adefisayo, commended Ikeja Electric for the initiative which would add value to the college.

Adefisayo, represented by Dr Olufunke Oyetola, Director of Policy, Planning, Research and Statistics, Lagos State Ministry of Education, called for more partnership between the DisCo and the state.

She said the impact would definitely be meaningful to the students because the quality of learning would improve thereby enhancing their capabilities and potential.

On her part, Ms Moronke Azeez, Executive Secretary, Lagos State Technical and Vocational Education Board (LASTVEB), said the board’s mission was to provide industry response and gender inclusive technical and vocational education.

Azeez said the board was not only interested in the training of the students but was also engaging technical partners to help create start-ups and employment opportunities for them.

She said the state currently had about 400 partners involved in the exercise, adding that there was a need for more private sector support of technical and vocational education in the state.

Earlier, Mrs Adegboyin Kenku, Principal, Government Technical College, Ikorodu, lauded Ikeja Electric for expending resources and time in order to impact on the lives of students and teachers.

Kenku said: “The students feel very comfortable in the workshop, they are excited to learn because of the conducive environment.

“Therefore, we want to express our gratitude to Ikeja Electric for being our partner in progress in nurturing and supporting the talents that will graduate from this college.

“We want to reassure them that we will maintain it. And we believe you hear positive news about our students,” she said.(NAN) (www.nannews.ng)

 

Eko DisCo appoints Sanda Deputy CEO

Dr Tinuade Sanda, Deputy Managing Director, EKEDC.

By Solomon Asowata

The Board of Directors of Eko Electricity Distribution Company (EKEDC) has approved the appointment of Dr Tinuade Sanda, as the Deputy Managing Director of the company.

The company made the announcement in a statement issued by its General Manager, Corporate Communications, Mr Godwin Idemudia, on Monday in Lagos.

The statement said prior to her appointment, Sanda was the Chief Accounting Officer, a position she had occupied since 2013.

According to the statement, Sanda’s appointment is in line with the company’s strategies and procedures.

It said the board and the management were confident in her proficiency and capacity to assist in leading the company toward its vision of becoming the leading and customer-centric electricity distribution company in Africa.

The statement quoted the Board Chairman, EKEDC, Mr Oritsedere Otubu, as saying the DisCo was proud to appoint Sanda as its first female Deputy Chief Executive Officer (CEO).

“Her appointment has proven the resilience of our succession planning mechanisms and the value we place on our corporate governance practices, which underpin our philosophy of building and recognising home-grown talents,” the statement also quoted Otubu as saying.

It said Sanda was a senior executive with vast experience in financial reporting, treasury management, taxation, mergers and acquisitions, finance regulation, risk management and financial modeling.

The statement said: “Prior to joining EKEDC in 2013, she was the Head, Finance and Administration at Vanguard Energy Resources, a leading oil and gas trading services company.

“In 2001, she joined the banking sector at the Chartered Bank of Nigeria where she rose through the ranks before joining Access Bank, as the Head of Retail Risk Management till 2012 when she left the sector.

“She earned her bachelor’s degree in Financial Accounting from Obafemi Awolowo University, and Master’s Degree in Business Administration from the Heriot-Watt University in Edinburgh.

“She also attended Strategic Financial Analysis for Business Evaluation Programme at the Harvard Business School in 2015.

“She is a Fellow of the Institute of Chartered Accountants in Nigeria; Institute of Management Consultants, United States; and Institute of Professional Financial Managers, London.”

It said she was also an Associate Member of Risk Management Association of Nigeria; Financial Reporting Council of Nigeria; and the Institute of Directors, Nigeria.

The statement added that in 2020, Sanda was awarded a Doctor of Philosophy in Financial Management and Entrepreneurship from the ICON University of Management Science and Technology, Benin Republic.

Reacting to her appointment, Sanda expressed her gratitude toward her new responsibility in the company.

She said: “I appreciate the board’s belief in my ability as I look forward to supporting the CEO in developing Eko DisCo further with the formidable workforce.

“We know our role in the electricity industry; hence, I am going to give my best to ensure EKEDC continues to deliver on its promise to our customers.

“We will enhance collaboration with stakeholders to bring about further growth and development in the Nigerian Electricity Supply Industry.” (NAN) (www.nannews.ng)

IWD: EKEDC boss calls for end to gender-based violence

Mr Adeoye Fadeyibi, Managing Director, Eko Electricity Distribution Company in a group photograph with staffers of the DisCo during the International Women’s Day celebration on Tuesday in Lagos.

By Solomon Asowata

Mr Adeoye Fadeyibi, Managing Director, Eko Electricity Distribution Company (EKEDC), has called for an end to gender-based violence and all forms of discrimination against women.

Fadeyibi made the call during the review of a book titled: “She Triumphs: A Story of Faith, Hope and Restoration,” authored by Mrs Rita Akpata on Tuesday in Lagos.

The News Agency of Nigeria (NAN) reports that the review was part of activities by EKEDC to mark the 2022 International Women’s Day (IWD).

Fadeyibi said the IWD was a special day to celebrate women and their outstanding contributions to the society and humanity.

He said there should be concerted efforts to abolish gender-based violence and all forms of discrimination against women.

Fadeyibi noted that there was still work to do in achieving this despite some significant progress made to close the gender gap.

On her part, Akpata said the 39-page book was written to encourage women who had gone through bad marriages and divorce not to give up on life and love.

She said divorced women and single mothers often faced stigmatisation from the society, which could force them into depression and having suicidal thoughts.

Akpata said hope in God made her triumph as she was blessed with another husband and had been able to set up a foundation to assist other women facing similar challenges. (NAN) (www.nannews.ng)

African countries engage DFIs to fund oil, gas projects

Chief Timipre Sylva, Minister of State for Petroleum Resources

By Solomon Asowata

Lagos, March 7, 2022 (NAN) Nigeria and other petroleum producing countries in Africa have begun engagements with Developmental Finance Institutions (DFIs) to fund critical oil and gas projects in the continent.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, made this known while declaring open the first African Local Content Investment Forum (ALCIF) on Monday in Lagos.

The forum was organised by the Nigerian Content Development and Monitoring Board (NCDMB), with the theme: “Pan-African Strategy Towards Sustainable Funding of Africa Oil and Gas Projects”.

Sylva, represented by Dr Nasir Sani-Gwarzo, Permanent Secretary, Ministry of Petroleum Resources, said the countries were engaging the Afrexim Bank, African Development Bank and other institutions to finance their projects.

He said that the move was necessitated by the refusal of international finance institutions to approve funding for development of hydrocarbons due to the global push for transition to cleaner sources of energy.

According to Sylva, Africa has 120 billion barrels of proven crude oil and about 600 trillion cubic feet of proven gas reserves that must be harnessed for the continent’s socio-economic development.

 

The minister said: “Without doubt, the emerging trend is that leading multinational financial institutions are factoring Environmental, Social, and Corporate Governance (ESG) in their lending decisions.

“The seeming freezing of equity investment in upstream field development projects by International oil companies is a wakeup call for Africa to provide alternative funding to sustain hydrocarbon development and secure our energy future.”

He noted that governments of Africa Petroleum Producing Organisations (APPO) member countries were heavily dependent on oil and gas revenues to meet their socio-economic obligations.

According to him, dearth of funds, limitations in technology mastery, high-end skills gap, undeveloped internal market for hydrocarbon derivatives and inadequate energy infrastructure are some of the challenges facing the industry.

He said the continent’s oil and gas infrastructure requirements include upstream field development projects; pipelines; depots; terminals; refineries; petrochemical plants; and research and development among others, which required huge funding.

Also, Mr Simbi Wabote, Executive Secretary, NCDMB,  said that more than 640 million people, representing about half of the total population in Africa, had no access to electricity while the other half with access had unreliable supply of electricity.

“The challenge of inadequate energy is partly the reason why Africa is faced with poverty, conflicts, migration, brain drain and ranks very low on Human Development Index,” he said.

Wabote said that the Afrexim Bank and the AfDB had the opportunity of taking advantage of Africa’s abundant hydrocarbon resources by providing funding for oil and gas development.

The Secretary General, APPO,  Dr Omar Ibrahim, said Africa’s contribution to green house gas emissions was about four per cent, and it was, therefore, unjust for the continent to be railroaded into the global energy transition timeline.

He called for the setting up of an African Energy Investments Corporation (AEICorp) which would fund oil and gas projects as the traditional financiers withdraw from the industry.

Ibrahim said: “But we are realistic. AEICorp cannot do it alone. No financial institution in Africa can do it alone. But through cooperation and collaboration, we are confident that Africa shall succeed.

“If we see energy security as critical to our national security, we should enact laws that provide for a portion of windfalls from oil and gas sales to be re-invested in the industry.

“We need to find a way or ways of getting African oil and gas producing countries governments to commit to a certain percentage of the windfalls to a special fund for the sustenance of the oil and gas industry during the transition period.”

Also, Dr Benedict Oramah, Managing Director, Afrexim Bank, represented by Mr Ibrahim Sagna, Head, Advisory and Capital Markets, Afrexim Bank, said that the bank would continue to support the development of oil and gas projects.

Oramah said that the bank had provided funding to the Nigerian National Petroleum Company Ltd and the Dangote Refinery as well as other players in the sector. (NAN)(www.nannews.ng)

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NURPC highlights implications of global change from fossil fuels

Mr Gbenga Komolafe, Chief Executive, NUPRC

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) says the goal of the global change to move completely away from fossil fuels has its implications.

Mr Gbenga Komolafe, the Chief Executive, NUPRC, said this on Thursday in Abuja at the ongoing fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition.”

Komolafe, represented by his Senior Technical Adviser and Assistant Director, NUPRC, Mr Abel Nsa spoke on  “Fundamental Shifts in NUPRC in a Time of Transition.”

He said that all nations were being jointly held responsible for environmental impact of fossil fuels, while oil producing nations that have the appropriate economic model may escape a lot of impact.

Komolafe noted that oil producing nations without the appropriate economic model, might be worst hit in spite of their endowment with abundance of fossil resources.

“Responsive nations can still make the proper shift even in the seemingly short time left,” he added.

He said the growing concern around energy transition affected all economies of the world especially those most dependent on fossil fuels for their energy needs and national revenue.

Komolafe said the targeted state of net-zero emission might be challenging to attain but a lot of effort was being put into curtailing fossil fuels and advancing cleaner alternatives by developed countries.

He said in Nigeria’s case, the quest for sustainable development had two dimensions; quest to get the best economic model for harnessing oil and gas resources and to balance the environmental demands of the comity of nations.

To this end, Komolafe said Nigeria commenced a holistic reform of the industry in the 2000s to address the first problem, along the line the second issue took centre stage.

“But gladly the Petroleum Industry Act (PIA) 2021 was progressively adapted to address both issues,” he added.

According to him, Nigeria has indeed commenced the necessary shift toward sustainability.

He noted that the passage of the PIA, 2021, offered fundamental shifts in the regulatory architecture of the NUPRC.

Komolafe said the Act provided for legal, governance, administrative framework and attractive fiscal regime.

“In a clear departure from the past, the law provides clarity on areas that were hitherto uncertain or ambiguous in the regulation of upstream operations.

“Empowered by the PIA, the commission naturally tapped into its wealth of experience, expertise and institutional memory that it has garnered over the years to implement the desired change and bring about monumental shifts.

He outlined some of the strategic focus of the NUPRC toward attaining the desired change as envisaged in the PIA 2021 as Development of Regulations, Environmental Remediation Fund and Field Development Plan, among others.

“Committee on Implementation of the PIA (STEERCO) is developing draft regulations for effective implementation of the Act. In this respect also, NUPRC is in consultation with upstream stakeholders to ensure all-inclusiveness and robustness.

“Some of these regulations are being developed to address critical industry issues such as, acreage administration, decommissioning and abandonment, commingling of stacked reservoirs, oil and gas royalty administration and host communities development trust, amongst others.

“The process of stakeholder’s engagement has commenced, and the commission has requested input from various stakeholder groups which will be evaluated for adoption in the regulations. In a short while, the commission will publish.

“The PIA has vested in the commission, the power to set up an environmental remediation fund into which licensee and lessees will make financial contributions as determined by the commission toward potential degradation or damage to the environment.

“Towards meeting the government aspiration of 40 billion barrels of oil reserves, 220TSCF of gas reserves and three million bop production target, innovative ways are being employed by the commission in collaboration with industry players,” he said.

This, he said, would ensure maximum economic recovery through exploration and resources maturation, improved oil recovery, reserves maturation and production optimisation, asset stewardship and risk management.

He said with the focused implementation of these initiatives, it was confident that the NUPRC could drive the attainment of the Nation’s Reserves and Production target. (NAN)

Nigeria can use mass data to meet energy needs, increase reserves - NUPRC boss

Mr Gbenga Komolafe, Chief Executive, NUPRC

By Solomon Asowata

Mr Gbenga Komolafe, Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria can utilise mass data to meet its energy needs and increase its hydrocarbon reserves.

Komolafe spoke at a panel session on "Data to Barrel” at the ongoing 5th Nigeria International Energy Summit in Abuja.

He said: " According to U.S. Energy Information Administration (EIA), Petroleum energy remains the largest source of energy, though its share of world marketed energy is in decline from 33 per cent in 2015 and projected at 31 per cent in 2040. 

"With this huge opportunity, the key challenge is using mass data to meet Nigeria’s energy needs and increase proven reserves by ensuring that our oil and gas resources are not left behind in the subsurface without being beneficial in a timely manner for the Nation. 

"No era lasts forever, so Nigeria must make haste to harness fossil fuel energy while its still relevant."

Komolafe noted that the upstream industry was facing challenges that require the need for mass data in high-precision reservoir modelling and surveillance. 

"Consequently, superb computing power, high-performance storage capacity, powerful and integrated mapping applications are required to be able to turn big data into barrels and value for money.

"Hence, the key challenge for service providers in producing oil companies is to demonstrate the value that gathering additional data will bring to the asset. 

"So, it is not just about gathering more data, but equally about the Value of the Information (VOI) from the data gathered," he said.

According to him, the development and use of Artificial Intelligence (AI), through generating new and robust mapping applications, requires big data and supercomputing technology.

He said this helps to decide investment in the right prospects, development of a robust Field Development Plan (FDP), drilling and completions in safe and cost-efficient operations, all in order to optimise production and meet daily deliverables. 

"Big data only makes sense when it leads to safer operations, cost efficiency, and increased profit margins," Komolafe noted.

He said the NUPRC has taken technological advancements into consideration in its work processes.

Komolafe said currently, the Technological Adaptation Unit within Engineering and Standards Department engages service providers on new technologies that could be implemented in the Nigerian Petroleum Industry.

" In addition, we have established more data related initiatives in the NDR such as National Improved Oil Recovery Centre (NIORC) focussed on utilizing big data to drive reduction in cost per barrel.

" Also, the Integrated Data Mining and Analytics Centre (IDMAC) was setup to assess and analyse data for informed business decisions," he said. (NAN)

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