OIL & GAS REPUBLIC Vol. 1 December 2014 - January 2015 CONFRENCE HIGHLIGHTS, INTERVIEWS AND INDUSTRY NEWS The Oil & Gas Climate Initiative: Highlights: West Africa Power Convention 2014 Featuring: Tony O. Elumelu, Chairman, Heirs Holdings Limited Renewable Energy in African Countries www.oilandgasrepublic.com Oil and Gas Companies Join Forces In Finding Effective Climate Change Solutions Creating Global Opportunities Covering all Areas of the Oil & Gas Industry
Transcript
OIL & GASREPUBLIC
Vol. 1 December 2014 - January 2015
CONFRENCE
HIGHLIGHTS,
INTERVIEWS
AND
INDUSTRY
NEWS
The Oil & Gas Climate Initiative:
Highlights:West Africa Power Convention 2014
Featuring: Tony O. Elumelu,Chairman, Heirs Holdings Limited
Renewable Energy in African Countries
www.oilandgasrepublic.com
Oil and Gas Companies Join Forces In Finding Effective Climate Change Solutions
Creating Global Opportunities
Covering all Areas of the Oil & Gas Industry
West Africa's leading power conference and exhibition since 2003
Introducing
CLEAN POWEREAST AFRICA
25 – 26 November 2015Pre-conference workshop 24 November | Site visit 27 November
West Africa’s power market is attractive for investment, given the country’s growing demand for electricity. Nigerians, for example use far less electricity per capita (5000 MW) than their counterparts in South Africa (a robust per – capita power supply of 41 990 MW for 52 million people). The implication of this is that Nigeria will need to generate 40 times more power to meet demand for its 160 million people.
Through participating at WAPIC you can showcase your products and services, and meet with the industry decision makersresponsible for driving the growth of the sector.
Contact us now to find out how your company can penetrate one of the fastest growing power and utility markets in the world.
www.oilandgasrepublic.com
Welcome
Contents:
WAPIC 2014 Event 4
Photo Gallery 10
Tenders 39
Thank you to our partners
Interview 11
Alternative Energy 32
Corporate Profile 25
Industry News 36
Dear energy, stakeholders, oil and gas professionals,
As a media partner, it is my pleasure to welcome you all to this publication about West African Power Convention 2014 (WAPIC) and latest oil and gas updates in Africa.
The WAPIC event was held on 17th - 20th November, 2014 at Eko Hotel & Suites, Victoria Island, Lagos - Nigeria.
Since 2003, WAPIC conference and exhibition has been bringing together senior decision makers from utilities, governments, large power users, IPPs, consultants, contractors and regulators to source the latest solutions and technologies from a comprehensive display of industry providers.
The WAPIC event provides a great networking opportunity where buyers and sellers meet together for partnership and to doing business.
The WAPIC 2014 event highlighted the use of renewable energy as an alternative energy source, challenges facing energy supply and the solutions to making power generation in West African region a success story.
We hope you have an enjoyable and productive time with this magazine. Should you have any questions or enquiries, feel free to get in touch with us with the contact details below:
Best Regards,Micheal Obineme,Publisher & Editor,OIL AND GAS [email protected]
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PUBLISHER & EDITORMicheal Obineme - Nigeria
TOP CONTRIBUTORSSimon Harding - UK
Benjamin Jones - South Africa
Annemarie Roodbol - South Africa
Santosh. Acharya - India
CORRESPONDENT:Spintelligent, Clarion Events 31 Bell Crescent, Tokai, 7947. PO Box 321, Steenberg, South AfricaTel: +27217003558
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WAPIC Event 2014
Agenda at a glance
Monday, 17 November 2014
v Workshop 1: Energy efficiency and renewable energy technologies.
v Workshop 2: Nigeria: After take over - Securing your metering infrastructure to ensure
financial sustainability
v Lunch
v Exhibitor briefing
v DTI briefing
v Welcome networking reception
v Advisory board meeting
Tuesday, 18 November 2014Registration Opens
www.wapicforum.com
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Tuesday, 18 November 2014
Over 1,000 Visitors and Delegates from different part of the world attended WAPIC 2014 event for networking opportunities, partnerships and to do business.
WAPIC Event 2014 5
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WAPIC 2014: Opening Keynote Session
Panel discussion:
v Funding power: what are the major challenges and how do you mitigate various risks?
v Risk perceptions and risk realities
v The private sector and energy finance
v Making the case for investors - what are their greatest objectives?
v Sustainable public-private partnerships (PPPs) - critical success factors
v Available options and access
Welcome note from Spintelligent: David Ashdown,Managing Director,
Spintelligent, South Africa
Welcome address: Update on the Nigerian power privatisation - Hon Minister Chinedu O. Nebo,
OON, Federal Ministry of Power, Nigeria.
Power investment and financing in Ghana: Thomas M. Akabzaa, Chief Director,
Ministry of Energy and Petroleum, Ghana.
Welcome note from the diamond sponsor: Shi Wei-Liang, Vice President
West African Region, Huawei, Nigeria
Welcome address from: Lagos State Governor Representative
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Keynote address: Unlocking investment and growth in the West Afrcian electricity power sector - Tony O.
Elumelu, CON, Chairman, Heirs Holdings, Nigeria
WAPIC 2014: Exhibition Floor
WAPIC 2014 Industry Awards
Nigeria’s Minister of Power, Prof. Chinedu O. Nebo at WAPIC Exhibition Floor
Visitors and Delegates Networking at the Exhibition Floor
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Some Exhibitors at WAPIC 2014 8
WAPIC Conference Sessions
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Wednesday, 19 November 2014
Refreshment break - WAPIC Launch Hour
Visitors & Delegates in WAPIC Conference Sessions
WAPIC Technical Workshop
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Photo Gallery
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WEST AFRICA POWER CONVENTION 2014 AT EKO HOTEL & SUITES, LAGOS - NIGERIA
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Interview
Well-known Global Leader, Financier, Entrepreneur, Investment Guru and Philanthropist
projections, by the end of 2015, 150 mmscf per day will be produced and that will meet about 40 percent of the gas demands for Ughelli.As you can imagine, working to literally power Africa is truly exciting.
2. What, in your view, are the main challenges in Africa’s power industry? If you could change three things today, what would they be?Locally, the major challenges we have are:1) unre l iable t ransmiss ion infrastructure and 2) access to uninterrupted gas supply3) timely settlement of invoiced payments.
In Nigeria, one of the biggest challenges to power generation its transmission and in fact, while Ughelli Power Plant generated at full capacity for the first time in July, we’ve been asked to scale down generation because of the outdated transmission systems; for every 100MW generated and sent to transmission companies, 40 per cent is lost, in part because of this infrastructure issue.
And the challenges go beyond transmission; many plants in the country can produce more than they currently do, but the limited availability of gas makes it difficult to produce according to the companies’ individual capacities, which affects the total supply and explains why the average Nigerian hears reports of increased capacity which is yet to be translated to increased power availability in homes and places of work.
Also, power generation is capital intensive and as it stands, we send the p o w e r w e g e n e r a t e t o t h e transmissions company as soon as it’s generated and we count on the government to pay in a timely manner, but that has posed a bit of a problem.
ony O. Elumelu is a Nigerian economist, banker, investor,
and philanthropist. Tony Elumelu is Chairman of Heirs Holdings, a pan-African proprietary investment company with interests in strategic sectors of Africa's economy.
He is also the founder of the Tony Elumelu Foundation, an Africa-based and African-funded not-for-profit organisation (NPO) that is dedicated to the promotion and celebration of excellence in business leadership and entrepreneurship across Africa.
He holds the Nigerian national honour, the Commander of the Order of Nigeria (CON). New African magazine recently listed him as one of the 100 most influential people in Africa.
Tony Elumelu was among the power experts that addressed the West African Power Industry Convention in Lagos on 18 November 2014.
Here is an exclusive interview with the Chairman of Heirs Holdings.
1. What power projects are Heirs Holdings involved in that you are most excited about?The Power Africa initiative is an amazing opportunity to democratize access to power for Africans, and the $2.5 billion investment commitment we have made reflects exactly how
excited I am about it. The present administration made a bold decision when it decided to affect the changes envisaged by the Power Sector Reform Act - legislation that has been on the books since 2005.
And that bold step was reinforced during President Barack Obama’s last visit to Africa. We felt more strongly than ever, the need to help power Africa.
Our experience so far at Ughelli power plant is testimony to the size of the opportunity; our amazing team has taken that plant from 150MW capacity when we took over in November 2013, to 450MW today; we expect it to increase 700MW by October and to achieve 1000MW by the second quarter of 2015.
At that rate, we’ll be contributing 20 per cent of Nigeria’s total power generation. To push the possibilities further, we are working on a greenfield project that will expand the capacity of Ughelli by an additional 1000MW in the next 3 to 5 years and we’ve signed an MOU with GE and Symbion Power to facilitate this.
I must add, however, that gas is an integral part of power generation andwe are pleased that our oil assets in the Niger Delta will eventually produce gas to meet our gas needs at Ughelli. At current production
Tony O. Elumelu.
Chairman,
Heirs Holdings Limited.
The Founder of the
Tony Elumelu
Foundation
TBy Micheal Obineme
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www.wapicforum.com
Interview
What’s more, while regulation isn’t a key challenge, it is an issue within the sector that if addressed, has the potential to speed sector growth exponentially. We need pragmatic regulation that recognizes that within Nigeria, the sector is nascent and so policies must be designed to encourage growth.
In fairness, the federal government is confronting these challenges head on. It has introduced incentives for gas producers so that they can invest more in production; it is improving the gas pipelines and planning a transmission market for October.
The federal government is also making ongoing investments in upgrading the transmission infrastructure and that will make all the difference. So while the challenges exist, one must continue to plod on in anticipation of the changes to come.
3. What is your vision for this industry?I believe the power industry is a catalytic sector and the development of our country and our continent cannot happen without fixing it.
Our Group has the ambition to generate at least a quarter of Nigeria’s power consumption needs in the next five years. I realize that as we steadily increase our output, the base will change, but we are committed to keeping pace.
I am an avid believer in the capacity of the private sector and the discipline it can bring to bear. I know that we will deliver on the promise of abundant power, which in turn will help address the pent up demand for access to electricity that our vibrant economy needs to keep growing at even faster pace.
A healthy, well regulated, and largely private power sector is possible and will form one of the cornerstones of true economic development.
4. What surprises you about doing business in Africa?It’s less about surprise and more about what spurs me to do more and invest more.
For perspective, we are investing in oil & gas, agribusiness, hospitality, real estate, health insurance, medical services and power.
We do this because of the attractiveness of returns in these focus sectors and the opportunities that can be created for the people of Africa.
The size of the opportunities in Africa is big and that may be surprising to mothers, but not to us.
5. What has recently brought a smile to your face while doing business in Africa?I am a big believer in Africa and Africans. I often look back in amazement when I think about the progress that has been made in recent years and the pace of that change.
The fact that I believe we are at a tipping point is a constant source of happiness as I look forward to what I expect will be a very exciting and rewarding future for the continent and its people.
6. Your philosophy of Africapitalism, where did it originate and how has it changed the way you do business?My years of living and working in Africa and learning from each success and failure have helped to shape my business outlook and my operating philosophy.
That philosophy is encapsulated in what we call Africapitalism.
Africapitalism is an economic philosophy that places more weight on long-term investments in key sectors that drive growth.
My personal experience also suggests that sustained economic prosperity must be inclusive and must create social wealth. Our group and those we partner with are building thriving businesses that generate healthy returns and tranforming the lives of ordinary Africans on the continent.
So, Africapitalism is my attempt to advocate and promote what has worked for me. We as Africans are uniquely qualified to take the lead and develop Africa. I think we need to be more self-continent in order to create the sort of future our children deserve. All the ingredients for success are here in Africa and investing for the long term in key sector, our people, and processes, will help to solve our problems and retain wealth within the continent. This is what underpins Africapitalism - by creating jobs and improving livelihoods, we are creating social wealth.
7. You are married and have five daughters, what has living with so many women taught you? Did you also grow up in a household with many women?Well I have always had strong women in my life, My mother, who is still active and is over 80 years old, was a strong influence.
My daughters, particularly my oldest have always challenged me. Being surrounded by women at home and talking with my daughters everyday provides me with insight into the female perspective on problem solving and my wife is a multi-tasker.
I guess that has resulted in my confidence in women and has informed and encouraged some of the appointments I've made. It’s no coincidence that three of our Board Chairs in the Group are women and that some of my top CEO’s are women including my wife, Dr. Awele Elumelu, who happens to be the CEO of Avon Medical Centre.
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Organo Gold is one of the fastest growing Network Marketing companies in the world.
We are operating in over 35 countries including Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Dominican Republic, Ecuador, France, Germany, Greece, Hungary, Ireland, Italy, Jamaica, Japan, Kazakhstan, Kenya, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Peru, Philippines, Poland, Portugal, Russia, Singapore, Slovenia, Spain, Taiwan, Thailand, Ukraine, United Kingdom, USA, Costa Rica...
What is Chronos Group all about?The Chronos Group is a US based organisation that has recruiting, RPO, software, technology and entertainment interests worldwide.
What is your position in the company?I am the Founder and Chairman of the Chronos Group.
How long have you been doing this business?I started the business by buying out distressed companies and turning them around into profit. The first Chronos businesses were set up in 1999. We have also opened new businesses in the market and our clients demanded.
What kind of recruitment services do you provide to companies?We provide the full range of recruitment services including retained and contingent search and selection, RPO and BPO services. We work with mainly Fortune 1000 companies but also increasingly
medium sized companies and start ups.
How many candidates do you have on your database and what is your client base presently like?We have well over 200,000 candidates in our database. Our client base consists mainly of large and medium sized companies in the oil, gas, renewable, IT, Telecom,retail and FMCG sectors worldwide.
Do you have international recruiting and outsourcing locations?Yes, we are able to work in almost any location globally. We have actual bricks and mortar offices in USA, Canada, Mexico, Costa Rica, Argentina, UK, Germany, Spain, Sweden, Poland, Hungary, Romania, Turkey, Russia, Latvia, Lithuania, Estonia, Nigeria, Israel.
Apart from your website, do you have other means to reach out to candidates?Mainly via LinkedIn and Facebook
What are the major achievements for Chronos Group of Companies?We have managed to grow almost every year since 1999 and in 2006 had a successful divestiture of 4 of our businesses to a NYSE listed company.
We have also been able to take over part of an ASX listed recruiter in 2009 and in 2010 we were able to expand both organically and by acquisition. We are able to provide a timely and cost effective set of solutions for our clients and delivery is our major achievement. We have many clients that have worked with us every month for the last 15 years and to me that is a major achievement.
Will you be interested to invest in Africa?Yes, we are interested to investing in Africa
If you are to invest, which industries will you be investing?We would be investing in Energy, Mining, IT/Telecom and Agribusiness recruiting services, RPO and BPO.
Which countries are your target market for investment in Africa?Nigeria, Kenya, Uganda but open to most countries with the right people and opportunity.
Simon Harding is the Founder andChairman of the Chronos Group, a company that provides recruitment,RPO , sof twar e and tec hno log y services worldwide with operations in over 70 countries. In this interview, the Chairman of Chronos Group speaksof their interest to invest in Africa.
“We are interested to invest in Energy, Mining, IT/Telecom and Agribusiness recruiting services, RPO and BPO in Africa” - Simon Harding
By Micheal Obineme
Corporate Profile14
www.oilandgasrepublic.com
he Power Africa Off-Grid Energy Challenge aims to provide electricity access to 20 million households and businesses. The 22 winners in the second round selected from nearly 300 applicants, each winner will receive a grant of up to $100,000 to support the deployment of off-grid solutions that put renewable resources to work to power increased economic activity.
Winners from Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania will receive grants of up $100,000 each. Renewable power projects, including wind, solar, hydro-electric and biogas, will provide 3.4 MW of new electricity to rural communities across sub-Saharan Africa.
The Off-Grid Challenge, funded by USADF, USAID and GE Africa, promotes innovative solutions that develop, scale-up or extend the use of proven technologies for off-grid energy – increasing access to reliable, affordable, and sustainable power.
According to the International Energy Agency, only 12.9 percent of rural communities in sub-Saharan Africa have access to electricity, compared to 64.2 percent in urban areas.
President and CEO of GE Africa said:“The high quality of submissions we have received throughout the Off-Grid Energy Challenge is a testament to the i n c r e d i b l e i n n o v a t i o n a n d entrepreneurship that is happening across the continent.
GE has a rich history in Africa that spans more than 100 years and we are very pleased to be a part of this Challenge to help identify and accelerate projects that will help Africans to compete in the global economy.”
The winning projects include 14 solar developments, six biogas generation projects, one wind turbine system and a small hydroelectricity power plant. The focus of these projects is on delivering more power for commercial activities, including agriculture production and processing, off-farm businesses, and commercial enterprises.
The Off-Grid Energy Challenge is a part of Power Africa, the White House-led initiative to drive growth by increasing access to reliable, affordable, and sustainable power and by helping to ensure responsible, transparent and effective management of energy resources.
The initiative aims to add more than 30,000 megawatts (MW) of cleaner, more efficient electricity generation capacity in sub-Saharan Africa as well as increase electricity access by adding 60 million new home and business connections.
The President and CEO of the USADF Shari Berenbach said, “We have been impressed by the broad range of innovative strategies that African entrepreneurs are developing to tackle local energy challenges.
Access to power is critical to spur economic growth and each winning project in
this Challenge will help bring electricity to communities who have lived without reliable power. We have already seen significant impact in the first phase of this Challenge and we’re excited to help the next 22 winners realize their goals.”
Andy Herscowitz , USAID and Coordinator for Power Africa, said, "These 22 winners exemplify what Power Africa is all about: multiple U.S. Government agencies and other partners working together with the private sector to increase electricity access in sub-Saharan Africa. Although less than a year and a half old, Power Africa and its partners are making progress in alleviating energy poverty challenges in sub-Saharan Africa.
President Obama recently announced a renewed commitment to Power Africa with additional resources so we look forward to increasing our efforts across all of sub-Saharan Africa in the months to come."
The 22 projects announced build on the progress and impact realized by the first round of winners, announced late last year. For the Green Village Electricity Project, a 2013 winner from Nigeria, the grant has enabled the project to grow from 140 homes to powering an entire community in Nigeria. They eventually plan to power 24 rural communities in Nigeria using their solar technology.
Ifeanyi Orajaka, founding partner of Green Village Electricity project, recently said, “The impact of this grant has been immeasurable, both to our organization and Nigeria. We have been able to expand our off-grid project to bring power to more people.
And, the recognition of being a Challenge winner has attracted the attention of other potential investors.”
Obama’s Power Africa Initiative Grants$100,000 to African Countries
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Renewable Energy15
By Micheal Obineme
www.oilandgasrepublic.com
Major International Oil and Gas Companies Join Forces In Finding Effective Climate Change Solutions
e p r e s e n t a t i v e s f r o m government, business and
civil society came together for the first time at a summit in New York City hosted by the United Nations Secretary-General Ban Ki-moon to inject fresh impetus into the fight against climate change. The Oil and Gas sector is proud of its pivotal role in providing the adequate and affordable energy the world needs. The sector is equally proud to be a part of the climate solution the world needs as well.
Indeed, for years, many oil and gas c o m p a n i e s h a v e i n v e s t e d considerable efforts in finding effective climate change solutions.
A growing number of Oil and Gas Companies are joining forces, under a unique climate initiative, to go beyond the sum of these various efforts.
In January 2014, within the deliberations of the Oil and Gas Community under the umbrella of the World Economic Forum in Davos, the Oil and Gas Climate Initiative was initiated. It carries the vision of Oil and Gas companies working together and sharing options on climate change and sustainable energy amongst companies within the sector.
Companies from different parts of the world have been engaged in discussions to build this initiative, including Saudi Aramco, BG Group, Eni, PEMEX, TOTAL, and others, representing diverse National and International Oil Companies, which together constitute a significant share of global Oil and Gas production.
This is a bottom-up, voluntary, industry-driven initiative, which will enable the Oil & Gas industry to work collaboratively to address climate risks. It is an unprecedented and unique collaboration. The Initiative serves as a platform to address key climate risks, to share industry best practices, and to catalyse meaningful action and coordination on climate change. This is the only initiative to provide a full spectrum on what the sector is currently doing about climate change, and what it is prepared to do, collectively, going forward.
While companies joining the Initiative will work together, they will individually define the scope and parameter of their contributions, in recognition of their different capacities and circumstances. The efforts will build on relevant initiatives currently in place, as anumber of participating companies
are already engaged in related partnerships, for example on gas flaring and methane reduction.
A value proposition is being finalized to further elaborate the focus and nature of actions. In parallel, initial work is already underway in a number of areas, including energy access, renewable energy, energy efficiency, reduction of gas flaring and methane emissions, carbon capture and storage, and the role of natural gas.
More focus areas will follow, with the aim of building a sector-wide, industry- led coalition.
Further advancements will be made over the coming months, with more elaboration by January 2015, at the next Davos summit, followed by regular reporting on ongoing efforts.
The Oil and Gas Climate Initiative is just starting, and it will grow stronger as more peers and other companies throughout the industry’s value chain join this historic undertaking.
RBy Micheal Obineme
Renewable Energy16
www.oilandgasrepublic.com
Total Provides 86 Megawatt-Peak To Communities in South Africa
otal South Africa has officially announced, the company is
being selected as the preferred bidder for an 86 megawatt-peak (MWp) ground-mounted solar power project by South Africa’s Department of Energy (DoE), as part of the third round of tenders for renewable energy generation facilities.
Total’s affiliate, SunPower Corporation is a global solar energy leader offering solutions unmatched in efficiency, reliability and performance, provided the photovoltaic specifications for the project. SunPower also is expected to provide Engineering, Procurement, Construction (EPC) services and long-term Operation and Maintenance for the project.
This solar power project of 86 MWp will deliver clean, reliable energy to the community. The solar power plant is expected to generate approximately 210 gigawatt-hours (GWh) of power each year, which represents the electricity consumption of approximately 45,000 South Africans.
Total has been present in South Africa for almost 50 years and remains very committed to the country.
This is another great example where Total’s international footprint has provided opportunities to SunPower, following the recent announcement to build the world’s largest solar merchant plant in Chile. SunPower's successful track record of building solar power plants around the world, coupled with Total’s historic presence in South Africa, will positively impact this region, including creating job opportunities. The project is secured under a co-development agreement with South African Mulilo Renewable Energy.
Total will own 27% of the project, along with five partners:
Total is one of the first energy companies to explore this avenue. Some 500,000 Awango by Total solar lamps have been sold so far in 2014 through the Total Access to Energy program.
Thanks to this initiative, 2.5 million people equivalent to the population of Bamako, Mali now have access to energy.
In developing countries, some of the population, especially in rural areas, lacks access to power.
Total responded to this problem by doing what we can to enable as many people as possible to access energy, through sustainable infrastructure tailored to local needs.
Total also have developed innovative business models and new distribution channels, including networks of local resellers.
Solar energy now gives the low-income populations of Dakar in Senegal, Yaoundé in Cameroon and Port-au-Prince in Haiti a genuine engine of development.
Calulo Renewable Energy with 25%, Mulilo Renewable Energy with 18%, the Industrial Development Corporation (IDC) with 15%, Futuregrowth Asset Management (Pty) Ltd with 10% and a Local Community Trust will own 5% of the project.
The project is estimated to cost approximately $200 million. It will be financed 80% through non-recourse project debt from South African banks.
The remaining 20% equity portion will be funded by Total, Calulo Renewable Energy, Mulilo Renewable Energy, the IDC, Futuregrowth Asset Management (Pty) Ltd and a Local Community Trust, based on their respective ownership interests.
A megawatt-peak (MWp) = 1 million peak watts. A peak watt, the unit used to rate the performance of photovoltaic collectors, will deliver 1 watt of electricity under standard conditions of 1,000 watts of light intensity per square meter and temperature of 25°C.
Over 500,000 Awango By Total Solar Lamps Sold in 2014
Photovoltaic Solar Energy in Non-OECD Countries
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Renewable Energy17
By Micheal Obineme
By Micheal Obineme
www.oilandgasrepublic.com
WAPCo, WAGPA and ECOWAS Held
Talks on Gas Pipeline Safety he West African Gas Pipeline Company (WAPCo) and the
West African Gas Pipeline Authority (WAGPA) in collaboration with the Economic Community of West African States (ECOWAS) have held a 2-day meeting on the safety of the West African Gas Pipeline (WAGP).
The meeting brought together about sixty stakeholders from the four WAGP states, Benin, Ghana, Nigeria and Togo and discussed measures to further protect WAGP. It is part of WAPCo’s efforts to continuously address emerging threats to the safety of the pipeline through promoting dialogue among the various entities that have a role to play in the protection of the pipeline.
The meeting focused on improving upon WAPCo’s current pipeline damage prevention program to cover new threats to the pipeline.
Participants included representatives of governments, some security agencies, the World Bank and WAPCo shareholders.
WAPCo Managing Director, Mr. Walter Perez, thanked the governments of Ghana, Nigeria, Benin and Togo for the enormous support and cooperation the company has received over the years at every phase of its operations.
These include the harmonization of the Pipeline Protection Zone (PPZ) in
Nigeria, Benin and Togo, as well as the dedicated patrols by the naval officers of the four countries, electronic surveillance of vessel traffic in the PPZ and the deterrence of sand mining on the pipeline in the various countries.
Ghana's Minister for Defense, Mr. Mark Woyongo, also recommended the efforts of the various naval officers and advocated that pipeline safety be accorded high priority. He asked WAPCo to take advantage of the recently commissioned Ghana Maritime Authority Vessel Traffic Management Information Systems (VTMIS). He also advocated for the exploration of other cost effective ways of monitoring activities within the PPZ rather than relying heavily on ships.
The Director General of the West African Gas Pipeline Authority (WAGPA), Mr. Debo Barandao, said since the last breach of the pipeline in August 2012, offshore Lome, which resulted in a ten month interruption of gas delivery, the WAGPA and WAPCo have revised the Offshore Damage Prevention Program.
The Director of Energy at the ECOWAS Commission, B.J.A. Dabire, said WAPCo
was created to boost the economic development of the sub region and the initial plan was to have a gas pipeline across the entire region.
The final option chosen was to construct a gas pipeline from Nigeria to Ghana, representing the first phase of the project. ECOWAS is currently in talks with stakeholders regarding an extension of the pipeline beyond Ghana. Invited guests present included Professor Thomas Akabzaa, Chief Director, Ministry of Energy and Petroleum and Rear Admiral O. Medani of the Nigeria Navy.
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Nigeria to Support EU Long Term Gas Supply Security Shell Discovers Gas, Offshore Gabon
Gas18
Headline News
By Micheal Obineme
Dr. Abdu BulamaHonorable Minister of Science & Technology, Ministry of Science & Technology, Nigeria
Dr. Joseph T. DawhaGroup Managing DirectorNigerian National Petroleum Corporation (NNPC)
REGISTER ONLINE NOW AT WWW.OFFSHOREWESTAFRICA.COM
20 - 22 JANUARY 2015 EKO HOTEL & SUITES LAGOS NIGERIA
MEDIA PARTNER:
Managing West Africa's Major Projects
ENDORSED BY:
Distinguished Speakers Will Include
Dr. Diezani Alison- MaduekeHonorable Minister of Petroleum Resources, Ministry of Petroleum Resources, Nigeria
Mr. George OguachubaGeneral Manager, Corporate Nig. Content, Venture Management & Corporate Geosciences,TOTAL Exploration & Production Nigeria
Mr. George OsahonDirector Department of Petroleum Resources,Nigeria
SPONSORS
PRESENTED BY:
Ms. Rolake AkinkugbeFBN Capital
Mr. David PaganieChief Editor, Offshore magazine,PennWell Corporation
PRODUCED BY:
Nigeria’s Petroleum Minister, Alison-Madueke Elected as New OPEC President
www.oilandgasrepublic.com
igeria’s Petroleum Minister, M r s D i e z a n i A l l i s o n
Madueke, has been elected as President of the Organisation of Petroleum Exporting Countries (OPEC).
She is the replacement for the former president, Abdourhman Atahar Al-Ahirish who hails from Libya. Alison-Madueke’s election as President of OPEC took
They were chosen from more than 400 applicants following a series of assessment centres carried out across the seven countries throughout May and June.
The group then assembled in Abidjan in July for a four-week intensive classroom based programme in which they covered advanced technical, engineering and project operations modules.
They were also introduced to the A g g r e k o b u s i n e s s a n d t h e fundamental aspects of operating and working within an Aggreko facility.
The students were off icial ly recognised at a formal celebration
ggreko awarded twenty African students at a formal celebrartion
held in Abidjan last Friday. Twenty students from Burkina Faso, Cameroon, Benin, Senegal, the Democratic Republic of Congo, Chad and Ivory Coast have been selected to progress into the programme’s Summer Module.
held in Abidjan on Friday 17th October in the presence of top a c a d e m i a f r o m l o c a l universities, representatives from the local energy sector and senior management from both Aggreko and CI-Energies, the state utility of Ivory Coast.
Upon completion of the programme, graduates will be e l i g i b l e f o r f a s t - t r a c k employment opportunities within Aggreko in technical a n d p r o j e c t o p e r a t i o n s positions across Aggreko’s network of international power projects.
place on Thursday at the ongoing 166th ordinary meeting of the Organisation, taking place in Vienna, Austria. She becomes the first female to be elected into that position.
Before her election, Mrs Alison-Madueke was the alternate president of OPEC and is expected to immediately begin to serve her one-year term at the helm
of OPEC affairs. It is expected that OPEC, during its ongoing 166th meeting, would make key decisions that could halt the falling price of crude oil.
Diezani Alison-Madueke, born 6 December 1960, became Nigeria’s Minister of Transportation on July 26, 2007.
She was moved to Mines and Steel Development in 2008, and in April 2010 was appointed Minister of Petroleum Resources.
In accordance with its Statute, the mission of the Organization of the Petroleum Exporting Countries, OPEC, is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.
She
Becomes
First
Female
President
of OPEC
Aggreko Awards Twenty African Students in Abidjan
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Industry News 20
By Micheal Obineme
By Micheal Obineme
www.oilandgasrepublic.com
Aggreko Expands Technical Training Programme in West Africa
g g r e k o U n i v e r s i t y h a s expanded it’s technical training
programme beyond Ivory Coast to now draw students from across seven Central and West African countries. The programme is widely regarded by students, academia and industry as the leading private sector training-to-employment scheme in the West African utility sector.
Fourteen students from Burkina Faso, Cameroon, Benin, Senegal , the Democratic Republic of Congo, Chad and Ivory Coast had been selected to progress into the programme’s Summer Module.
They were chosen from more than 400 applicants following a series of assessment centres carried out across the seven countries throughout May and June.
The group assembled in Yamoussoukro in July for a four-week intensive classroom based programme in which they covered advanced technical, engineering and project operations modules.
They were also introduced to the Aggreko business and the fundamental aspects of operating and working within an Aggreko facility.
The students were officially recognised at a formal celebration held in Abidjan on Friday 17th October in the presence of top academia from local universities, representatives from the local energy sector and senior management from both Aggreko and CI-Energies, the state utility of Ivory Coast.
Upon completion of the programme, graduates will be eligible for fast-track employment opportunities within Aggreko in technical and project operations positions across Aggreko’s network of international power projects.
“Aggreko takes its commitment to Africa very seriously. By identifying high-potential local talent and fast-tracking them through the Aggreko University programme we are able to provide opportunities and future prospects for the students
and ensure we have a source of highly competent future leaders for our projects business. It is also an essential element in developing a strong local workforce and giving back to the communities in which we operate,” commented Yan Pardailhe-Galabrun, Director of Human Resources, Aggreko Europe, Middle East and Africa.
“The Aggreko University continues to be a great initiative that is helping to build a solid base of well trained and experienced electrical and mechanical technicians across West Africa,” commented Tanoe Bile Operations Director, CI-Energies.
“We are proud to be a key partner with Aggreko in the delivery of the programme and offer our full support to ensure its ongoing success, both for the students themselves and for the development of the West African energy sector.”
“As one of West Africa’s leading engineering schools we take great pride in s u p p o r t i n g t h e e d u c a t i o n a n d employment of talented, along with our young brothers and sisters from neighbouring countries,” commented Dr Yao K. Alphonse, Director of Mines and Geological Engineering School, Institute National Polytechnique Houpouét Boigny.
“The Aggreko programme is a fantastic initiative that is adding real value by giving experience and employment to the future leaders of the West African utility sector.”
“This programme will see Aggreko, CI-Energies and INP-HB working together to develop West Africa’s next generation of energy industry professionals,” added Serge Mevo, General Manager, Aggreko West Africa.
“This close cooperation and mutual desire to add value to the wider region is testament Ivory Coast’s support in developing the regional utility sector.” With more than 1.3 GW currently installed across 25 African countries, Aggreko is the largest supplier of fast-track temporary power to the continent.
Aggreko first entered the African market in 1995 and since then has established a presence across the continent with service centres located in Lagos, Luanda, Dar es Salam, Nairobi, Johannesburg, Port Elizabeth, Cape Town, Durban and Walvis Bay, supported by regional hubs in Dubai and Paris.
Across its African operations Aggreko employs in excess of 700 people with more than 90% of this workforce being African nationals.
Students from
Burkina Faso,
Cameroon,
Benin, Senegal,
Democratic
Republic of Congo,
Chad and
Ivory Coast
were Selected
A
Industry News 21
By Micheal Obineme
www.oilandgasrepublic.com
Chevron Opens New Science Learning Centre in South Africa
hevron South Africa, which retails under the Caltex brand,
has officially opened science learning centre at Bosmansdam High School in Bothasig, Cape Town.
The company donated over half a million rand towards the development of the centre to enhance maths and science education at the school.
“This year Government emphasized investment into improving maths, science and technology education as a priority.
Chevron South Africa invests considerably to advance education o u t c o m e s i n d i s a d v a n t a g e d communities as part of a strategy that aligns with both the needs of the communities and the priorities of Government,” says Donna Fata, Manager for Policy, Government and Public Affairs at Chevron South Africa.
Speaking at the opening of the learning centre Debbie Schäfer, Western Cape MEC for Education, said the future growth of the economy is hugely dependent on education outcomes that harness the development of scarce skills.
“Eleven of the top 20 scarcest skills identified in the National Scarce Skills List are engineering-related.
In order to improve the availability of these skills we need to attract new talent; how best to do so than to invest in maths and science resources, providing an exciting learning environment for high school learners.”
Prior to the construction of this centre, most of the 820 learners currently enrolled at the Bosmansdam High School for Grades 8 to 12 conducted science experiments in an ordinary classroom.
“If we are to nurture future engineers we need adequate facilities for doing so. This centre will go a long way in achieving this by elevating the teaching of maths and science,” says Danie Human, Headmaster at the school.
Chevron’s investment funded the construction and resourcing of the centre to specifications of a proven design by the University of the Western Cape’s Science Learning Centre for Africa.
The SLCA, which is part of the UWC’s Faculty of Education, designs and constructs facilities that are aligned to the Department of Education’s curriculum. They also support teachers and learners in mathematics, science and technology education.
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Industry News22
By Micheal Obineme
Coberon Chronos Group is a leading provider of recruitment, staffing, consulting, software outsourcing services & solutions for blue chip customers around the world for over 15 years.
www.chronosconsulting.com
Contact:Coberon Chronos ConsultingHoward Hughes Building Las Vegas, 89169 United StatesEmail: [email protected], [email protected]: +1773 935 2581, +1312 464 9127
Industry News
www.oilandgasrepublic.com
Eco Atlantic Completes Two Petroleum License Blocks, Offshore Namibia
co Atlantic Oil & Gas Limited holds t h r e e
offshore petroleum license blocks covering more than 25,000 square kilometers in the Walvis Basin and one license block covering 23,000 square kilometers, which includes both onshore and offshore areas.
Founded in 2008, Eco Namibia enjoys a strong local presence and has a longstanding relationship with the energy and oil and gas sector in Namibia and other maturing exploration plays in Africa.
On October 16 2014, Eco Atlantic announced that, it has commenced its planned 1,097 km2 3D Seismic Survey on the Cooper block located in the Walvis Basin, offshore Namibia.
In its capacity as the Operator of the Block, the Company has entered into a service agreement with PGS Geophysical Ltd, who will use its proprie tary high resolut ion GeoStreamer technology to perform the Survey.
The significant Survey, covering more than 1,000 km2, is expected to be completed during the month of November 2014.
Tullow Kudu Ltd. (“Tullow”) holds a 25% working interest, AziNam Ltd. (“AziNam”) holds a 20% working interest, and NAMCOR holds a 10% carried working interest.
If drilling targets are identified on the Block, Tullow has the option to acquire an additional 15% working interest in exchange for a full carry of Eco Atlantic’s cost through the drilling of an exploration well, and the repayment of an additional 18% of Eco Atlantic’s past costs.
November 17, 2014, – Eco Atlantic commenced a 1,000 Km 2D Seismic Survey on the Guy block located in the Walvis Basin, offshore Namibia.
The Company engaged PGS Geophysical Ltd to perform the Survey, which is expected to be completed by the end of the month.
Subject to Namibia’s Ministry of Mines and Energy approving the Company’s transfer of an additional 10% working interest in the Guy Block to Azimuth Namibia Ltd. (“Azinam”), Eco Atlantic will hold a 60% working interest in the Guy Block, Azinam will hold a 30% working interest, and NAMCOR holds a 10% carried working interest.
December 2 2014, – Eco Atlantic Oil & Gas Limited announce that, further to its news release dated November 17, 2014, it has successfully completed a 1,000 Km 2D Seismic Survey on the Guy block located in the Walvis Basin, offshore Namibia.
The Survey was executed by PGS Geophysical Limited using its high r e s o l u t i o n G e o S t r e a m e r technology.
The Company has also contracted PGS to begin processing the 2D data immediately.
Eco Atlantic is fully carried through the processing and interpretation of the Survey and has a 45% working interest in the Block.
As described in the Company's news release dated February 18, 2014, the Company received a Gross Prospective Unrisked Resource Lead Report prepared by Gustavson Associates LLC of Colorado, on the Block, supporting a P50 Best Estimate of 4.5 billion barrels of gross prospective oil over the existing targets.
November 13 2014, Eco Atlantic completed its 1,097 km2 3D Seismic Survey on the Cooper block located in the Walvis Basin, offshore Namibia.
The Survey began on October 16th and was completed on the 13th of November 2014. The Company has contracted PGS to begin processing the 3D data immediately.
Eco Atlantic holds a 45% working interest in Cooper Block and is fully financially carried through the processing and interpretation of the Survey.
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24
By Micheal Obineme
Shell Deep Water Projects Provides Job Opportunities in Nigeria
www.oilandgasrepublic.com
Industry News
h e l l i s u s i n g a d v a n c e d technology to deliver safe,
economic deep-water projects in Nigeria that provide jobs and training for local people.
Shell also plan to drill more wells in the deep waters of the Gulf of Guinea in 2015 to unlock valuable resources of oil and gas, with the decision to move the Bonga Main Phase 3 project forward. Tapping into these fields will deliver energy to help meet growing demand in Nigeria and beyond.
Far from Nigeria’s coast and more than a kilometre below the ocean’s surface, our people delivered a challenging project ahead of time and with an impressive safety record.
Drilling new wells will boost valuable energy supplies from the Bonga field, which was Nigeria’s first deep-water development in more than a kilometre of water when it began production in 2005.
Shell Nigeria Exploration and Production Company Limited (SNEPCo) used one of the world’s largest floating production, storage and offloading vessels for the original project to pump oil and gas from deep beneath the seabed. The vessel’s capacity has been upgraded, enabling SNEPCo to unlock new energy resources with the start of production at the nearby Bonga North West field in August 2014.
“The country’s deep-water resources are making an important contribution to meeting growing energy demand in Nigeria and around the world,” said Tony Attah, SNEPCo’s Managing Director. Delivering on Nigeria’s promise Production from deep-water fields in the last decade has already added more than 800,000 barrels per day (bpd) to Nigeria’s total output, which currently stands at around 2 million bpd, according to the US Energy Information Administration.
Shell and other leading oil and gas companies have been using advanced technology to safely tap into Nigeria’s deep-water resources.
Deep-water developments have higher capital and operating costs than onshore fields but, with the right government support, the industry is able to make the multi-billion dollar investments needed to unlock vital energy for the future.
Technical precision Shell has decades of experience in deep-water projects and has pioneered many of the industry’s technologies. The Bonga floating production, storage and offloading facility is one of the world’s largest. Three hundred metres long and the height of a 12-storey building, its deck spans an area as large as three football fields.
One of the main challenges in developing the Bonga North West field was ensuring that it did not disrupt production at this vast facility. Far below the ocean’s surface, project engineers used remotely-controlled robots to piece together new and existing equipment, connecting additional pipelines from wells in the Bonga North West field.
Shell works to ensure that the knowledge gained from one project is transferred to others. Uche Okonkwo, lead engineer for undersea equipment
who worked on Bonga North West, spent seven years in Houston, USA, with the group that designs underwater control systems used in Gulf of Mexico deep-water projects. “My time in Houston prepared me for what we needed to deliver in Nigeria,” Uche said.
By bringing in outside experience, SNEPCo also helped create the first generation of Nigerian deep water oil and gas engineers through the initial Bonga project. Its ongoing efforts to develop local deep-water engineering skills continued with Bonga North West: over 90% of people who worked on the project are Nigerian. SNEPCo provided specialised training for Nigerians to work in the energy industry.
Leaders also helped to develop a strong safety culture among staff and contractors, resulting in the project – involving over 4 million hours of work being completed without any time lost due to injury. “The success of the Bonga North West project has opened many doors,” Tony said. “The future for deep water oil and gas in Nigeria is promising.”
SBy Micheal Obineme
25
Renewable Energy/Energy Project in African Countries
1 - Machine Tools | South Africa | TID: 12350081Design, Procurement, Construction, Commissioning, Operation & Maintenance of the Eskom Kimberly Solar Photovoltaic Project. | Due on 29-Jan-2015
2 - Machine Tools | South Africa | TID: 12350261Design, Procurement, Construction, Commissioning, Operation & Maintenance of the Eskom Bellville Solar Photovoltaic Project. | Due on 27-Jan-2015
3 – Power Plant | Kenya | TID: 12261974Retrofitting Of Existing Diesel Mini Grids With Renewable Energy. | Due on 16-Dec-2014
4 – Power Plant | Senegal | TID: 11951321Regional electricity interconnection project between Senegal and Mauritania. | Due on 30-Jan-2015
5 – Power Plant | Kenya | TID: 12544994Expression of Interest for Consultancy Services for 140MW Olkaria V Geothermal Power Project includes Construction & commissioning of at least 2 x 70 MWegeothermal steam turbine power plant, Drilling for this proposed plant is at an advanced stage. | Due on 09-Jan-2015
6 - Business Consultancy | Kenya | TID: 12501269Designing, Supply, Delivery & Installation of Pilot Ultra Low Head Micro Hydropower System. | Due on 18-Dec-2014
7 – Corporations/ Assoc/ Chambers/ Govt Agencies | South Africa | TID: 12400991Pre-qualification Design, install, operate & maintain a rooftop solar PV system at various health institutions. | Due on 15-Dec-2015
8 – Corporations/ Assoc/ Chambers/ Govt Agencies | Kenya | TID: 12509290supply install test & commissioning of solar PV power systems to 50 NO of schools, Health facilities,& police posts of the 7 Seven Sub Counties in Turkana County. | Due on 16-Dec-2014
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