TOTALEnergies is concerned with the accelerated decline in Egina field, which output around 145,000 Barrels of Oil Per Day BOPD, as of March 2022, a clear 25% plunge from the 200,000BOPD it achieved before the OPEC Quota cut in 2020.
The field is located in 1,500metre water depth in deepwater off Nigeria.
Some of the wells are currently underperforming but about four to five (4-5) well interventions, and two (2) in-infill wells are planned for 2022. The company also wants to examine a satellite play to Egina. The Egina West (an exploration well) is planned for 2023. If successful, the field will be developed as a tie-back to Egina main.
TOTALEnergies will also re-start the development of the Preowei field, by commencing discussions with the Contractors/Alliances on the modalities for the restart of the FEED CCFT by the second quarter of 2022.
Preowei is a deepwater hydrocarbon pool located north of the Egina field in OML 130. The development is designed as a tie in to the Egina field development, which is delivered as a subsea production system connected to a FPSO (floating production, storage and offloading vessel) designed to hold 2.3Million barrels of oil.
Norwegian operator Aker Energy AS has returned to rejig the development work on the Pecan field and its satellites, in Ghana’s Deepwater Tano Cape Three Points (DWT/CTP).
There certainly won’t be first oil by 2024, as has been speculated, but the development, which had rolled off to the back of the burner since the onset of COVID-19 pandemic, is in full throttle
Last year (2021), the DWT/CTP block featured significantly in the Ghanaian media, largely because of the interest expressed by state firm GNPC to take a large stake in the development.
At the height of the public debate on the financial size of GNPC’s proposed stake in the asset, (in excess of $1Billion), a lot of emphasis was made of Aker Energy’s reluctance to continue investing in the asset.
Apart from the repeat of earlier statement about securing the FPSO Dhirubhai-1 for the first phase of the field development, and the pledge to “submit a revised Plan of Development for the DWT/CTP block before the summer of 2022”, Aker Energy has doubled the convertible bonds it issued to the pan Africa lender Africa Finance Corporation, from $100Million to $200Million. The terms of the bonds have been re-negotiated and extended to mature in December 2026, with an option to extend by a further three years.
Kofi Koduah (K. K) Sarpong, GNPC’s Chief Executive Officer has said that he sees first oil from the Pecan North satellite of the Pecan field, by 2024. That would be a stretch, as Aker itself would only be submitting a revised Field Development Plan by June 2022. Mr. Sarpong said: “There are two main discoveries: Pecan North and Pecan South. Dealing with Pecan North, we’ve divided the development into two phases. We focus on the first phase, get the oil out and then we come to Phase 2. So, it’s a graduated process. We intend that in 10 years if all goes well and we are developing, we may be able to add about 200,000 barrels to Ghana’s production”. It still not clear if GNPC would ultimately acquire the equity it wants from DWT/CTP block, but Aker Energy is far more upbeat about the field development today than it was a year ago.
The Selai Gas Station is a response to Nigeria’s proclamation of “The Decade of Gas”, but its promoters have discovered, in the process of the $0.4Million initial investment, that they could do well by doing good for the community.
Located in Fagba, a highly populated, development-challenged neighbourhood in the north of Lagos, Selai starts off as a Liquefied Petroleum Gas (LPG) dispensing station aiming to grow to wholesale delivery, and cylinder manufacture further down the line. But the immediate reality is that it is staring at the desperate face of poverty in the suburb and hopes it can deliver part of the development needs of the community as it looks to earn income.
Damilola Owolabi: “We have a delivery programme for our cylinders where we want to “Uberize” it. So, we are not the one handling the delivery of the cylinders to your homes. What we’ve been able to do is bring together ‘Keke Marua’ (motorcycle taxis) within the neighborhood and registered them, trained them on how to run deliveries.
“Of all the places we found, this neighbourhood seems to just fit into the business idea because there are a lot of small “Bukkas”, or as you would like to call it “mama puts” (ramshackle food canteens) within the neighborhood and a lot of them are still using firewood and coal pot”, says Damilola Owolabi, Selai Gas’ CSR minded chief executive. “I was coming from that part of creating that awareness and when we spoke to a few of them and asked why they were still using firewood and coal pots, ‘don’t you know it is dangerous to your health,’ the response I got was that an LPG cylinder is expensive how can they even afford it? But since we were looking at how to create an impact in this neighborhood, we came up with the idea of having a cylinder programme where those shops and those women that are selling by those joints can access to cylinders that affordable way”, Owolabi explains.
“What we plan to do after our launch is to be able to create a platform where we give you cylinders at an affordable rate and you spread the payment over a period of time. So yes, we are in business to make money but also, we want to create an impact in the community”.
Owolabi says her company has had to ingratiate itself with neighbourhod toughs, called ‘area boys,’ in Nigerian parlance and also had to deal extensively with the Landlord Association. “It was a lot of work and convincing sessions that we had to have with them, you know. Now we are very close because I started to see them as stakeholders”.
Apart from the cylinder programme for the canteens, and onboarding women into using gas to cook, Selai Gas wants to empower its teeming neighbourhood in several other ways. “We have a delivery programme for our cylinders where we want to “Uberize” it. So, we are not the one handling the delivery of the cylinders to your homes. What we’ve been able to do is bring together ‘Keke Marua’ (motorcycle taxis) within the neighborhood and registered them, trained them on how to run deliveries. We give you the platform and after you’ve gone through our training, we show you all the safety measures that you’re supposed to know and observe while delivering cylinders and products, then you’re registered with us. So once you have a Keke Marua, whenever there is a delivery to be done you’ll be contacted and you come pick up and a good number of them are excited. So beyond just the women and being transitioned into cleaning energy, also the men; we want to be able to engage them. We have a number of these Hausa guys that are already on this Keke Marua Scheme.”
The Fagba community has a large settlement of Nigerians from the far north of the country. In Lagos, (the country’s top commercial hub, located in the southwest), people from the North are simply called Hausas, irrespective of where exactly they come in the north(Nigeria has a high diversity of tribes per square metre). “I told the engineer supervising our construction project to engage the Hausas and the Yorubas within this community”, explains Owolabi.
“So a huge number of them were engaged and every time when I drive in, I see quite a number of them and they’re very happy warming up to us. It always reminds me of how badly we want to make an impact, why we’re settled here and the long queue of plans that we have for the community and each of them we are trying to implement”.
Selai launches on Thursday April 7, 2022 with a 30 Tonne facility, but from its projections, it expects to do two trucks and that’s about 50 tonnes “because you can’t fill a 30 Tonne truck to 100% of its capacity. It has to be 80%. So, we’re looking at 25 Tonnes of gas per truck which makes it two trucks. Within our first month, our projection is to sell two trucks within a week. In the first month of opening, we are not going to be doing home deliveries; we want to use that time to focus on our walk-in-customers and the bulk buyers. Then by the time we begin to do home deliveries, we estimate to do three trucks within a week. That is, 75 Tonnes”.
Selai Gas Station: We want to open well, we don’t want to open and we don’t want to open to the public and we’re having to deal with a lot of issues. So what we’ve been doing is training on safety and customer service just to help every staff of Selai Gas perform optimally
Owolabi, has been in oil and gas related business for close to 10 years. She is enormously excited by this phase in her career. “This is my first time of coming into the gas space; I’ve always been in the space for white product and offshore Logistics and Marine Logistics and so, coming into the gas space, we’re not playing small. We didn’t come in because we just want to be re-filing gas into cylinders, as we also want to do bigger things. We have it at the back of our mind where we’re able to get gas genset, where we are able to power some neighborhood, and even go into the Upstream side of gas. You know, where we’re selling gas for power and selling gas for other use. We’re not just going to be playing small where we will just be in the business of refilling cylinders. We also hope that by the time we own fleets of trucks, I mentioned to you earlier that we’re looking into having the cylinder production plant because there is a massive gap in that area because a lot of people can’t afford it because of the huge cost of acquiring a cylinder”.
Still, the take-off of this journey has to be right, she admits. “We’ve been doing quite a number of training actually in the last six weeks for our staff because we want to open well, we don’t want to open and we don’t want to open to the public and we’re having to deal with a lot of issues. So what we’ve been doing is training on safety and customer service just to help every staff of Selai Gas perform optimally when our gates are opened to customers. I also want to mention that we have the part for accessories, what we call Selai Accessories. We sell cylinders and cylinder accessories and you could also call for a technician to come check on your burners, or check on your cylinder back at home and technician will be sent to you. One of the midterm goals for Selai is to own our cylinders because we cannot thrive in this cylinder programme without owning our own cylinders. So, at the moment, we’re in partnership with a company here and we buy cylinders from them but eventually, our goal is to own our cylinders”.
A fuller version of this interview will be published later. The publication is sponsored by Dregwaters Nigeria Limited.
As theAfrica Finance Corporation (AFC) marks its 15th anniversary, the Corporation is rebranding with ‘Instrumental Infrastructure. Instrumental Africa’ as its strapline.
Our new logo embodies our mission to be the bridge to a prosperous African future, as we relentlessly strive to advance our continent’s instrumental position as it takes its place on the global stage.
Core to our approach, is turning infrastructure into an instrument for change. We consistently deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash our continent’s prosperity. In so doing, we seek to elevate Africa’s instrumental role as a critical engine of global growth.
Through impact investing in infrastructure, we are committed to helping the continent position for greater success in a world of growing crisis and complexity. Ultimately, we are working to shine the spotlight on Africa as a major supplier of beneficiated resources, goods and services, and as the primary source of metals and minerals for new energy transition—with the underlying goal of creating jobs for the world’s largest and youngest workforce.
As Africa’s leading infrastructure finance institution, offering end-to-end finance and consultancy, AFC’s rebranding reiterates its capabilities to deliver across power, heavy industries, natural resources, transport, logistics and telecommunications.
“Our new identity reinforces our role in working to advance Africa’s instrumental role as a global growth engine,” said Samaila Zubairu, President and CEO of AFC. “Through impact investing in infrastructure, we are committed to helping the continent position itself for greater success in a world of growing crisis and complexity.”
With Africa’s infrastructure investment needs estimated at $130 to $170Billion a year, AFC’s new branding is emblematic of its strategic developmental role in the sectors most critical as growth engines for sustainable economic development. In the process, millions of jobs required for the continent’s rapidly growing youth population are generated.
This approach leverages on Africa’s many advantages, including:
The African Continental Free Trade Area agreement, which has created a single market of almost 1.4Billion people, the world’s largest
The world’s biggest reserves of minerals such as cobalt which are required for the global green energy transition
A workforce that is projected to exceed that of either China or India by 2034 and a population that is forecast to reach 2.5Billion by 2050
Returns on African infrastructure investments often exceeding that of other emerging markets
“Our approach puts the spotlight on Africa as a major supplier of beneficiated resources, goods and services, as the primary source of metals and minerals for new energy transition, and jobs for the world’s largest and youngest workforce,” said CEO Zubairu. “Our new brand endorses and anticipates the growing role Africa will play as it takes its rightful place on the world stage.” Ends.
…The former energy minister is now the economy and finance minister
Mozambique’s President Fillipe Nyusi has promoted Max Tonela to the position of economy and finance minister. In his place as energy and mineral resources minister, the President has appointed Carlos Zacarias, until now president of the National Petroleum Institute (INP), the country’s hydrocarbon regulatory agency.
On March 2, 2022, Nyusi dismissed six of his 18 ministers. In the following morning, he announced the dismissal of the prime minister, Carlos Agostinho do Rosário, replacing him with former economy and finance minister Adriano Maleiane as the new prime minister, then handed Maleiane’s former job to Max Tonela, his close confidante who had run the energy and mineral resources ministry for the last four years.
Zacarias graduated from the Petrochemical Institute of Baku – Azerbaijan, with a masters’ degree in Petroleum Geology and worked at the National Directorate for Coal and Hydrocarbons (DNCH) as Head of its Technical Department for about 10 years, supervising petroleum and coal activities. In that role, he was involved in the revision of the country’s legal package, exploration activities and implementation of Pande/Temane Gas Project. With the creation of the National Petroleum Institute in April 2005, Zacarias was appointed as the manager of the Projects and Development Division, dealing with Mozambique’s promising and growing gas production and evacuation. In 2008, he was appointed as INP Exploration Manager, supervising and monitoring all exploration activities that led to Rovuma discoveries, including Prosperidade and Mamba. In August 2015, he was appointed in Chairman of INP.
His career has been forged in the crucible of the Mozambican “gas rush”.
As chair of the regulatory agency, he has headed negotiations with concessionaries of the highly prolific Rovuma Basin; negotiations which, in the course of their leading to project implementation, have also informed the country’s new legislations on hydrocarbon development. .
Zacarias supervised the negotiation of the Legal framework for Rovuma projects designed for Area 1, including the Plan of Development Approval (Coral FLNG and Golfinho/Atum) and all discussion related to Rovuma LNG Phase 1.
The African Energy Chamber is set to host the first-ever African Energy Week (AEW) in Cape Town on 9th – 12th November 2021.
Replacing Africa Oil Week, the four-day interactive conference seeks to unite industry stakeholders, international speakers and movers and shakers from the African oil and gas sector.
The conference comprises high-class networking events, innovative exhibitions, and one-on-one private meetings, with a golf tournament on the final day, providing a one-of-a-kind experience for stakeholders interested in the growth and success of the African energy sector.
The African Energy Chamber (AEC) is excited to announce the official launch of African Energy Week (AEW) 2021, taking place in Cape Town on 9th – 12th November 2021. AEW 2021 will showcase the first-ever African Energy Village, an interactive exhibition and networking event that seeks to unite African energy stakeholders, drive industry growth and development, and promote Africa as the destination for African-focused events.
Commencing with a three-day conference and ending with a golf tournament on 12th November, the event’s primary focus is to define and promote the African energy agenda through development, deal-making, and private sector participation. Key topics include making energy poverty history before 2030 and the future of the African oil and gas industry; African upstream, midstream and downstream opportunities; African oil, gas and finance in the face of the energy transition – highlighting African financing institutions such as the African Development Bank, the African Export-Import Bank, the African Financing Corporation, Africa50, the Industrial Development Corporation and the Development Bank of Central African States; local content; women in energy and making African energy competitive for investment into a decarbonized Africa.
Additionally, the conference will address the role of the Organization of the Petroleum Exporting Countries (OPEC), the Gas Exporting Countries Forum (GECF), the International Energy Agency (IEC), the African Petroleum Producers Organization (APPO), the International Association of Geophysical Contractors (IAGC), and the American Petroleum Institute (API) and Africa. By opening the dialogue on Africa’s gas miracle and its potential in markets including Senegal, Mozambique, Nigeria, Ghana, South Africa, Algeria, Tanzania, Equatorial Guinea, Congo-Brazzaville, and Angola – as well as small-scale Liquified Natural Gas, intra-African trade and the African Continental Free Trade Agreement – the conference represents the ideal networking and deal-making platform for all African energy stakeholders.
The AEC’s commitment to hosting this Africa-focused event in Africa comes at a crucial time for the oil and gas industry. In light of recent developments that seek to suggest that Africa is not capable of hosting events of global standards, the Chamber feels responsible to voice against this and lead by example by showcasing the continent and all its profound beauty.
With this in mind, the only African-focused, in-person energy event aims to capture the essence and cultural hub that exists in Cape Town. The AEC will not abandon the continent for international venues. AEW 2021 is an energy event like no other and the AEC is fully focused on promoting African development and growth through African-held events.
“We are happy with the tremendous support from so many in-and-outside Africa. Our Oil and Gas producers have been a force for good and we must be proud of this industry. We must also welcome energy transition and engage Africa with the most forceful conversation and solutions for the future. AEW 2021 offers a unique and interactive networking experience in which global energy stakeholders can unite and participate in the continent’s transformation. The time is now,” says NJ Ayuk, Executive Chairman, African Energy Chamber.
“Africa Energy Week will have a bold message that encourages energy solutions that cut out entitlements, handouts and foreign aid. No one owes us anything and in order for so many Africans who want to make energy poverty history to triumph, we must embrace all forms of energy in our energy mix. We must attract investors and push our leadership so that each country wins when we create and encourage an enabling environment,” adds Ayuk.
AEW 2021 is taking place with the full support of prominent African and global industry leaders and oil and gas organizations and is focused on expanding opportunities in Africa. Additionally, AEW 2021 will present innovative exhibition spaces at Cape Town’s V&A Waterfront that aim to promote African heritage and culture, while showcasing the exciting technological advancements the industry has to offer.
“African energy producers can only grow and meet energy demand when we all do our best to mobilize our resources and advocate for important principles of personal responsibility, smaller government, lower taxes, free markets, personal liberty, and the rule of law. This will kick start investment and make a transition that works for Africa. Let’s do this in Africa, for Africa and for the energy sector,” concludes Ayuk.
Of equal importance, the event will take place under strict COVID-19 protocols to ensure the safety of all attendees. In line with current government regulations, AEW 2021 will host a series of networking events across a variety of locations at the V&A Waterfront, thereby ensuring social gathering limits are in place at all times. Additionally, through mandatory testing and the availability of personal protective equipment and facilities, AEW 2021 aims to protect attendees while ensuring a successful and productive event.
Some process bottlenecks are preventing the Nigerian National Petroleum Corporation (NNPC) from releasing the full, detailed audited accounts for 2020 until late Friday, September 3, 2021, or Monday, September 6, 2021.
Ranking sources at the state hydrocarbon firm tell AfricaOil+Gas Report that the publication of the audited accounts was shifted from Tuesday, August 31, 2021, to September 3 or 6, 2021 “because we had to be sure that every little error is spotted and cleaned up”.
NNPC’s full audited account for 2020 has been widely anticipated since President Muhammadu Buhari announced the headline earnings on August 25, 2021, especially with the claim that the company made a profit after tax of ₦287Billion, and it was its first profit in 44 years.
BusinessDay, the country’s top financial daily, claims that its fact-checking reveals that NNPC reported a profit of ₦111.59Billion, in 2017. But the newspaper did not say whether those figures were fully audited. Then again, BusinessDay’s report is clearly a counterpoint to NNPC’s claim that its first audited annual report since its creation in 1977 was released in 2019, for the full year 2018. The corporation has also stated that the second annual audited report, released in 2020, was for 2019.
Part of the query trending on social media is how the corporation moved from a loss of ₦803 Billion in the year 2018 to a loss of ₦1.7 Billion in the year 2019 to a profit in 2020- a year of lower crude oil prices and lower crude output- and how it seemed to have zoomed to its first profit in 44 years when it never reported an audited account until 2019?
There are allegations that the ₦287Billion PAT “is actually a retention of 20% of the profits and dividends paid by independent entities, which the NNPC received on behalf of the federation (Federal Government of Nigeria, States, and Local Government Areas)”.
NNPC spokespersons would not respond to these insinuations, and even our sources would not volunteer answers, but they insist: “wait till the report is published, then you can analyze all you want”.
Tullow Oil has announced that its oilfield production performance in Ghana “continues to be supported by reliable gas offtake from the Government of Ghana”.
That offtake, from Jubilee field and the TEN cluster of fields, “is regularly averaging between 110 – 130MMscf/d”, the company says in its latest operational statement.
This is a far more upbeat news about gas production than Tullow has had in the last two years.
It suggests that the Ghanaian economy is absorbing an increasing volume of natural gas. In late 2019, Tullow had lamented that “Gas export from both fields has been limited in 2019 due to low demand from the Ghana National Petroleum Company (GNPC)”, which is the offtaker.
“Discussions on increasing gas offtake are ongoing with GNPC with an increase anticipated towards end of 2019. Sustaining increased levels of gas offtake will reduce the amount of gas being reinjected into the fields, improving oil production over time”, the operator explained.
The gas that Tullow supplies to the Ghanaian government is delivered unprocessed from the two FPSOs (Kwame Krumah for Jubilee and John Atta Mills for TEN) through 12-inchpipelines to the Ghana National Gas Corporation (GNGC) controlled Atuabo plant, which has a processing capacity of 150MMscf/d. Processed gas is evacuated from Atuabo plant through a 20-inch 111km pipeline to (primarily) Volta River Authority’s Thermal Power Stations.
Since oil was first discovered in Oloibiri, in Nigeria’s Bayelsa State in 1956, communities hosting the hydrocarbon reservoirs in the Niger Delta have had to put up with devastating oil spills. Biodiversity has suffered from harm done to it by the continual flowing oil in the region.
An integral part of oil spill clean-up and remediation is oil stoppage. This practice aims to close off oil spills as early as possible. The faster the response to oil spills, the likelier the cushioning of its effects and so ideally, the journey to oil spill clean-up should begin in twenty-four (24) hours.
In Nigeria, under the law, oil spills must be stopped by thefacility operators within 24 hours of being notified of the oil spill, whether the spill was caused by the company’s activities or third-party action. In other words, it is the duty of facility operators to ensure that oil flow is closed off as soon as it is detected.
However, there are shortfalls in the discontinuation of oil spills at the appropriate time by oil companies, according to data obtained from the National Oil Spill Detection and Response Agency (NOSDRA), the Federal Government oil spill monitoring agency in Nigeria.
An AfricaOil+Gas Report analysis of data obtained from NOSDRA, indicate that a total of 494 oil spill incidents occurred from January 2020 till May 2021.
A further analysis of the time between oil spill incidence and the oil spill stop showed that in 2020 alone, there were about 373 incidents of oil spill.
At the time of filing this report, from January 2020 till May 2021, oil companies failed to stop oil spill within 24 hours of the incident in 110 cases and in 133 cases, oil companies stopped oil spill within 24 hours. In 251 cases, due to missing data in NOSDRA’s dataset, it was not specified when the oil spill was closed off.
Within this timeframe, a total of 26178.34 barrels of oil was spilled by 26 oil companies.
The Shell Petroleum Development Company (SPDC) was the highest offender within this period. In 80 cases, it failed to stop oil spill within 24 hours and in 82 cases it stopped oil spill in 24 hours. Also, SPDC tops the list with the longest response time to oil spill during this period. It stopped an oil spill after 185 days in an incident that occurred due to sabotage at the 28” Bomu-Bonny Trunckline at Alaskiri, Rivers State on the 28th of January, 2020. The oil spill was stopped on the 31st of July, 2020. The impact of the spill was labelled, “Non-leaking and no impact on the environment.”
In another occurrence, on the 23rd of March 2021, which is the second slowest response to oil spill stoppage in the analysed period of January 2020 to May 2021, Shell Petroleum Development Company (SPDC) responded to an oil spill in 20days. The oil spill was caused by corrosion and it affected 3” Imo River Well63T at the Owaza community, Etche Local Government, Rivers State. The impact was labelled, “Dripped of crude oil within right of way.” It was stopped on the 12th of April, 2020. However, in SPDC’s March 2021 oil spill report, this incident was recorded to have occurred on the 24th of March, 2021. Additional information by SPDC on the oil spill event attributed the delay to “security concerns.”
The third slowest response to oil spill stop, brought off by Nigerian Agip Oil Company (NAOC), was 16 days, according to NOSDRA. The incident was caused by sabotage at the 16” Tuomo Ogbainbiri Delivery Gas Line at Ayamasa, at EkeremorLocal Government, Bayelsa and the impact was labelled, “Gaseous Emission (Condensate).”
The oil companies who complied fully with the oil spill stoppage timeline of 24 hours from January 2020 till May 2021 are KAMLIK Nigeria Limited, Pipelines and Products Marketing Company (PPMC), PPMC (NPSC) and TOTALUpstream Nigeria (TUPNI), according to NOSDRA’s data.
The companies with missing data during this period are Mobil Producing Nigeria Limited (MPN), National Petroleum Development Company (NPDC), Heritage Energy Operational Service Limited, Enageed Resources Limited, Platform Petroleum Limited, Infravision Ltd Company, Esso Exploration and Production and Production Nigeria Limited, First Hydrocarbon Nigeria, ND Western, Midwestern Oil & Gas Corporation, Neconde and Pan Ocean Oil Corporation Nigeria Limited (POOCN).
Out of the 494 incidents of oil spill recorded from January 2020 till May 2021 by NOSDRA, oil spill clean-up data was recorded scantily for only 40 incidents. First Hydrocarbon Nigeria started cleaning an oil spill after 13 months and 10 days, accounting for the longest response time in the 40 incidents recorded. The incident, caused by sabotage, happened at Isoko-North, Delta State at the NPDC OGINI – Eriemu 10” Delivery Line at Eniagbedhi Owhe on the 23rd of February, 2021. It started cleaning the oil spill on the 10th of March, 2021 and ended the clean-up process on the 22nd of April, 2021.
The fastest clean up response was carried out by NAOC from January 2020 till May 2021. On three occasions, on the 9th of January, 2020, 11th of January, 2020 and the 30th of January, 2020 at the Ebocha 9l Flowline at Mgbede, Rivers State and the 10” Clough Creek/Tebidaba Pipeline at Gbaraun, Bayelsa State, oil spill clean-up was achieved in 24 hours.
SHELL AND ENI
In 2018, Amnesty International, an international human rights organisation, published a report that accused Shell and Nigerian Agip Oil Company (NAOC), subsidiaries of Shell Petroleum Development Company (SPDC) and ENI respectively, of being negligent with oil spill clean-up. Long delays in conducting the Joint Investigative Visit (JIV) to ascertain the extent of damage of the oil spill to the environment, slow response to shutting off the flow of oil, and contradicting evidence pointing to their activities instead of recorded oil spill caused by “third party interference”, are some of the issues raised by the international NGO.
The 2011 United Nations Environment Programme (UNEP) report on Ogoniland reiterated that, “Any delay in cleaning up an oil spill will lead to oil being washed away by rainwater, traversing communities and farmland and almost always ending up in the creeks.”
As with Ogoniland, in Nigeria, communities are at the receiving end of oil spills. Even when Shell Petroleum Development Company, in keeping with the polluter-pays principle, accepted liability for the clean-up of Ogoniland 11 years after the oil spill, the UNEP study revealed that cleaning up Ogoniland could take about 30 years.
OIL SPILL COMPENSATION
According to NOSDRA, sabotage and theft is the highest cause of oil spill in oil producing states.
Consequently, if an oil spill is not caused by the company’s activities, compensation would not be paid to the affected communities. Stakeholders Democracy Network (SDN), a watchdog organisation, in one of its publications titled, International Compensation Systems for Oil Spills in Relation to Reform in Nigeria, stated that the compensation structure for oil spill in Nigeria doesn’t measure up to international standards, as they come with “highly variable rates of compensation and high legal costs.”
Also, it stated that because oil spills instigated by third parties are not compensated in Nigeria, “many communities are blighted by the illegal actions of the few.”
This story was produced under the NAREP Media Oil and Gas 2021 Fellowship of the Premium Times Centre for Investigative Journalism.Aduloju is a reporter with Africa Oil+Gas Report.
Lekoil Nigeria, has reacted to the termination of Lekan Akinyanmi’s contract as Chief Executive of Lekoil Limited, the AIM listed company which is actually Lekoil Cayman.
It says that the decision, announced June 3, 2021, is the culmination of the efforts of the consortium led by Metallon Corporation to take control of Lekoil Cayman as foreshadowed in the circular to shareholders of Lekoil Cayman dated 11 December 2020.
Lekoil Cayman had said that the sack of Lekan Akinyanmi, with immediate effect, was due to a corporate governance breach. “The Company will commence a search for a new CEO and, in the interim period, Anthony Hawkins will act as interim Executive Chairman of the Company”.
But Lekoil Nigeria Limited declares, in a counter release: ”Mr. (Lekan)Akinyanmi remains on the Board of Lekoil Nigeria Limited and also its Chief Executive Officer. Mr. Akinyanmi created and executed the vision of an independent indigenous Nigerian energy company that is Lekoil, for this generation and in this emerging market and he has always worked with the best interest of Lekoil shareholders in mind”. It then says that “Lekoil Nigeria remains committed to the vision of developing Nigeria’s energy sector’.
Does it look complicated?
Lekoil Cayman is the investment vehicle which raises money on the Alternative Investment Market (AIM) of the London Stock Exchange, for the property acquired by Lekoil Nigeria. Lekoil Nigeria owns the assets, the more substantial of which are, 40% of the Otakikpo Field onshore (producing roughly 5,500 Barrels of Oi Per Day gross) and 17% equity in the undeveloped Ogo field, in shallow to deep water Benin Basin offshore Lagos. The estimated reserves, unproven is stated as in excess of 500 Million Barrels of Oil Equivalent. Lekoil Cayman has 10% of Lekoil Nigeria in equity, but may have up to 90% of the economic interest. This part is not clear.
Back to the issue at hand.
Lekoil Cayman’s notice of termination had added that Anthony Hawkins became interim non-executive chair only in April 2021, after Michael Ajukwu resigned, after having been in the chair since January 2021.
But Lekoil Nigeria’s response argues that “recent additions to the board of Lekoil Cayman by Metallon Corporation and its collaborators should have been vetted (as is the practice of LekoilCayman) and due diligenced as required by the AIM Rules and as would be normal for listed companies”.
It notes that “seasoned oil sector executives such as George Maxwell, and former directors with deep knowledge of the continent, such as Mark Simmonds, have resigned and been replaced with directors lacking industry expertise, knowledge of the continent, impartiality and objectivity and appointed to secure for Metallon Corporation and its collaborators, the full takeover of Lekoil Cayman”.
Lekoil Nigeria contends that “the procedure leading to the termination of Mr. Akinyanmi’s service is not compliant with the company’s corporate governance policies. Together with the appointment of unvetted new appointments to the board of Lekoil Cayman by the Metallon Corporation consortium, it is clear that the majority of the board of Lekoil Cayman is failing persistently to comply with its corporate governance code, yet the board of Lekoil Cayman determines on this ground to terminate the service of Mr Akinyanmi”.
Conclusion, for now, by Lekoil Nigeria: “While we take legal counsel regarding this decision by Lekoil Cayman, we wish to assure our numerous stakeholders, especially the Nigerian people that the strategic national assets under our purview will be protected by all legitimate means available to us”
Conclusion, for now, by Lekoil Cayman: “Lekoil is the lender under a loan agreement with Mr. Akinyanmi, of which outstanding balance, as of May 31 2021, was approximately $1.5Million. The company will commence proceedings to recover the Loan”.