All articles in the Others Section:


Africa Energy Week 2021, Taking Place in Cape Town; Will  Focus on Investment, Oil and Gas, Renewables and Energy Transition

Partner Content

  •  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.

For more information about this transformative event, visit www.aew2021.com or www.energychamber.org /or email Amina Williams at amina.williams@energychamber.org

 For registration related enquiries contact registration@aew2021.com

For sales related enquires contact sales@aew2021.com

For media related enquires contact media@aew2021.com

For speaker opportunity related enquires contact speakers@aew2021.com

 

 

 

 

 

 


Final Edits Hold Up Release of NNPC’s Full Audited Accounts

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”.


Jubilee, TEN Deliver 120MMscf/d of Gas to Ghana’s Atuabo Plant

By John Ankromah, in Tema

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.


Nigeria’s Producers Are Generally Non-Compliant with Oil Spill Regulations, Data Shows

By Bunmi Christiana Aduloju

NAREP Fellow

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. 

NEGLIGENCE 

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 Africa Oil+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.”

However, criss-crossing NOSDRA’s data with SPDC’s oil spill report showed that the company did not report this incident in its January 2020 report

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). 

CLEANING-UP OIL

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 Nigeriastated 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.


Lekan ‘Remains CEO of Lekoil Nigeria’, Fights Termination by Lekoil Cayman

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”.


Africa Oil+Gas Report’s May 2021 Edition is Out

The Africa Oil+Gas Report has released the May 2021 edition of its monthly magazine and has distributed the e-copies, in pdf format, to its tens of thousand paying subscribers around the globe.

The theme of the current issue is the refining opportunity on the continent, with some of the highlights of the rich, market intelligence filled, 52-page industry trade journal listed below:

REFINING GAP ANNUAL, 2021

  • Africa’s Refining Boom is at Hand
  • Four Countries Close the Gap
  • South Africa Abdicates Leadership
  • Dangote: What Took So Long?
  • Refiners want Crude in Local Currency

A sweeping overview of Africa’s refining landscape is something that AOGR undertakes once every year, even though the ‘Refining Gap’ section is a prominent part of our monthly issues, as well as our website.

But this particular edition is a celebration of an imminent boom in the continent’s hydrocarbon processing activity.

We are not unaware that this is happening in the context of a global energy transition and what some have described as the twilight of the fossil fuel era. So, some can argue: Why the hoorah if Africa is waking up to manufacture gasoline and aviation fuel when the rest of the world is talking about electric vehicles and the growing preference for zoom link over physical conferences?

Our response is that we will celebrate this moment; any morsel of information about Africa’s industrialization, Africa’s beneficiation of its natural rec sources, is an idea we will promote at Africa Oil+Gas Report.

Other highlights of the edition include:

 ACTIVITY MAPS

..Of Ghana,

Mozambique,

Angola,

Eq. Guinea,

Nigeria

 PRODUCTION SPREADSHEETS

Nigerian Indies’ Latest Production Update

Angolan Export Numbers, Block by Block

RIG ACTIVITY SPREADSHEETS

Angola Rig Count, Detailed Activity

Nigeria Rig Count, Detailed Activity

To access the edition, please click here.

 

 

 


Elohor Takes Over SNEPCO From Bayo Ojulari

By Sully Manope

Elohor Aiboni has taken over from Bayo Ojulari as Managing Director of Shell Nigeria Exploration and Production Company (SNEPCO).

She is the first woman to take the job, which has become increasingly important as AngloDutch Shell increases its focus on deep-water, hub-scale opportunities.  

Mrs. Aiboni’s chief immediate task is to find a way to achieve Final Investment Decision (FID) for the pending Bonga SouthWest Aparo (BSWA) project, a job that Ojulari laboured over in the last three years. If she is lucky, she might even witness, on her watch, the 150,000BOPD (peak production) project from construction to first oil.

A 1999 bachelor of science degree holder in Chemical Engineering from the University of Benin, and Masters’ degree in Integrated Environmental Management from the University of Bath in the United Kingdom, Aiboni has moved through the ranks, serving as operations support engineer in Shell’s Eastern Nigeria Division and team leader on the relatively large Obigbo oil field (around 160Million barrels reserves as of 2008), straddling two Oil Mining Leases (OMLs) 11 &17. 

Her first look-in into Upper Management philosophy was as Business Analyst to the Executive Vice President Shell E&P Africa. She then moved on cross posting to Kazakhstan, where she was part of the Kashagan project, returning to assist in overseeing the divestment of Shell’s onshore eastern assets(OMLs 18, 24 & 29) in 2014/2015.

Aiboni’s first work on a Nigerian offshore asset was as operations manager of the Floating Production Storage and Offloading (FPSO) facility on the shallow water EA field, which is a SNEPCO asset, in 2015. She moved into deeper waters three years ago, when she was appointed Asset Manager for the Bonga project, Nigeria’s flagship deepwater field.

That appointment can now be interpreted as the training opportunity for Elohor Aiboni to take the reins of SNEPCO.


Natural Resource Governance Institute Appoints Suneeta Kaimal as President and CEO

PARTNER CONTENT/NRGI

The Natural Resource Governance Institute (NRGI) has appointed Suneeta Kaimal the new President and CEO of the independent, non-profit organization.

Ms. Kaimal, currently Interim President and CEO of NRGI, joined the organization in 2009 and previously served as Deputy Director and Chief Operating Officer.

“NRGI’s trajectory is such that it requires someone who has a holistic understanding of the field of resource management and knows how to deal with the consequences of the upheavals we are going through,” said Smita Singh, Interim President of the Institute’s Board of Directors.

“After careful and in-depth global research that identified many excellent candidates, the Board of Directors came to the conclusion that Suneeta Kaimal offers the ideal combination of attributes: a vision for the future, interdisciplinary knowledge of issues related to the management of extractive industries in resource-rich countries, extensive external networks and in-depth knowledge of the internal strengths of the Institute. Her unique skills make her the ideal candidate to guide the Institute through the important changes that must continue to take place in order to continue its work with communities. The Board of Directors is unanimously convinced that Suneeta Kaimal has the capacity to continue the activities that make the reputation of the Institute and adapt to the profound changes we are witnessing around the world. “

Suneeta Kaimal to lead Institute’s ambitious programme for 2021, building on the successes f a difficult 2020. The Institute’s programme teams work with national and international civil society organizations, multilateral organizations and governments to facilitate the transition to a more climate-friendly future in countries dependent on fuel extraction. fossils; to help countries with significant mineral deposits meet growing demand for critical minerals in a way that benefits their citizens while reducing corruption and environmental impact; reduce resource-related debt; and to defend and develop governance, environmental and social standards.

“We are at a historic turning point in the area of ​​natural resource governance,” said Suneeta Kaimal. “New thinking conducive to transformation is needed if we are to face the heavy economic consequences of the global pandemic and the looming climate emergency.” I have the honor and the privilege, as President and CEO, to have the opportunity to build on the success of the Institute to meet this challenge. In collaboration with the outstanding staff of the Institute, distinguished members  of the Board of Trustees and advisers, committed donors and accomplished partners, I believe we can create a more just and sustainable future for resource-rich countries. “

NRGI’s goal is to ensure a future where countries rich in oil, gas and minerals achieve sustainable, equitable and inclusive development, enabling citizens to benefit sustainably from extractive industries and helping to reduce the associated negative effects. to the sector. The organization is present in more than a dozen resource-rich countries in Latin America, the Middle East and North Africa, Eurasia, sub-Saharan Africa and Asia-Pacific.

“Good governance of natural resources is more than ever essential if we want to strengthen economic resilience and advance social justice for the benefit of more than a billion people living in poverty in resource-rich countries” , added Suneeta Kaimal. “The NRGI team remains unfazed by the scale of the challenges and is emboldened by the opportunities ahead. “

Suneeta Kaimal succeeds President Emeritus Daniel Kaufmann, who worked for the Institute from 2013 to February 2020.

 


Has the World Moved Beyond Peak Gasoline Demand for Light Vehicles?

PARTNER CONTENT/IHS MARKIT

GM’s aspirations to End Sales of Gasoline-Powered Light Vehicles by 2035 Latest Sign that Peak Gasoline Demand from Light Vehicles Has Already Come and Gone

Oil demand (gasoline and diesel) from Light Vehicles peaked in 2019

The recent announcement by GM that it aspires to phase out sales of oil-powered light vehicles (LVs) by 2035—part of a broader proposal to make the automaker a net-zero-carbon company—is a prominent signpost that oil demand from LVs has already peaked, according to a new analysis by Jim Burkhard and the IHS Markit Crude Oil Market Service.

IHS Markit places the global peak for oil demand (gasoline and diesel) from LVs in 2019 when said demand averaged 29.1Million barrels per day (MMBOPD). The peak in demand is due to the impact of rising vehicle fuel economy and emission standards, and as time goes by, from more sales of electric vehicles.

“The GM announcement is a notable signpost on the road to decarbonization of road transportation. It demonstrates growing acceptance of tighter vehicle emission standards and of the energy transition beginning to move at a faster pace. When it comes to oil demand from light vehicles, it’s the latest sign that the 2019 peak is permanent.” – Jim Burkhard, vice president, oil markets and mobility and energy future, IHS Markit

For the oil market, what matters is the amount of demand that will be displaced by electricity.

Previous IHS Markit research has projected that electric vehicles (including battery, plug-in hybrid and fuel cell electric) will comprise 60-80% of all new car sales in 2050 (compared to just 2.2% of new car sales in 2020, according to IHS Markit data).

Nevertheless, oil will still be the dominant energy source for transportation for years to come due to the sheer size of the global car fleet and the amount of time it takes for it to turn over.

In 2020, there were about 9.2Million light plug-in electric vehicles (PEVs) in the global light vehicle fleet. When you include 20,000 fuel cell electric vehicles, these vehicles displaced about 150,000 barrels per day (b/d) of oil consumption—less than 0.2% of world consumption. When you include electric city buses and two-wheelers, the amount of oil displaced by electric vehicles totals 370,000BOPD, or just 0.4% of world oil demand in 2020.

“By 2020 electricity use in road transportation had only displaced about 370,000BOPD of oil demand—0.4% of world oil consumption. But it is clear that this will rise. By 2025, as much as 1.5 MMBOPD of oil will be displaced.” – Jim Burkhard, vice president, oil markets and mobility and energy future, IHS Markit

The amount of oil displaced by electricity will continue to rise, led by growth in PEV sales. IHS Markit estimates that by 2025 light PEVs will displace about 0.9-1.1 MMBOPD of world oil demand. Adding in electric buses and two wheelers, oil displacement by electricity in road transport could hit 1.5 MMBOPD—the equivalent of 1.4% of what IHS Markit projects for total world oil demand in 2025.

That much displacement—while still relatively small—is significant in the sense that oil-powered LVs were the biggest source of aggregate oil demand growth from 2000 to 2019. Increased electrification, along with rising fuel economy and emissions standards, will play an important role in the plateau and then decline of world oil demand that IHS Markit expects to emerge at some point over the next 10-15 years in its base case outlook.

“The GM announcement is the latest piece in a much larger story. It’s further proof that, while the road ahead is still a long one when it comes to dislodging oil as the predominant transportation fuel, it is very much a one-way street and there is no turning back.” – Fellipe Balieiro, director, mobility and energy future, IHS Markit

 


WELLSWORTH ENERGY SERVICES RECEIVES ISO 9001:2015 AND ISO 14001 INTEGRATED MANAGEMENT SYSTEMS CERTIFICATION.

PARTNER CONTENT

Wellsworth Energy Services Limited (WESL), a Nigerian oilfield service company, officially received its ISO 9001:2015 and ISO 14001 Integrated Management Systems Certification from the Standards Organisation of Nigeria (SON).

The certification was delivered on December 8, 2020.

Wellsworth specialises in the provision of oilfield Drilling & Production chemicals, Equipment Rental & Engineering services to Exploration and Production companies. SON is the Nigerian regulatory agency tasked with ensuring compliance to laid-down operating procedures and guidelines for various sectoral service organisations.

At a ceremony held at Wellsworth’s headquarters in Victoria Island, Lagos, the SON team led by Engineer Felix Nyado, Fsi, Director, Management Systems Certification representing the Director-General of the agency and Mallam Farouk A. Salim officially presented the Certification to Mr. Olusola Falodun, the company’s Managing Director.

The Director-General commended Wellsworth Energy Services Limited for undertaking the audit process to ensure their internally-developed systems and procedures measure up to globally acceptable standards. The ISO 14001 is an Environmental Management System while the ISO 9001 is the Quality Management System, which its dual use will strengthen the systems and processes of Wellsworth Energy in line with her Corporate Strategy of exceeding internal and external stakeholder expectations

The presentation of the ISO9001:2015 and ISO 14001:2015 certificate to Wellsworth Energy Services Limited effectively puts the organisation  in the elite league of those service companies  adhering to a high level of globally acceptable standards. Re-certification occurs every three years, with routine annual surveillance checks. The initial certification comes up for renewal in 2023. Negligence or untimely correction of non-conformities within an observed space of time can result in the withdrawal of the certificate.

Wellsworth Energy Services Limited has been in existence since 2007 and provided oilfield services through partnerships with credible local and multinational companies. Wellsworth undertook a rebranding exercise in 2017 to streamline service offerings and deepen customer-facing activities aimed at sustaining shareholder value. The multi-layered technical and management experience offered by Olusola Falodun (Managing Director) and Emeka Emezi (Executive Director) have ensured development and implementation of the company’s strategic initiatives. The company’s employees have a combined work experience of over 100 years in land, swamp, shallow water and deep water terrain garnered in regions such as Nigeria, Gabon and the Middle East. Wellsworth Energy services Limited has as its core competencies in the provision of drilling fluids and production chemicals used in the drilling and production sectors of the Oil & Gas industry ensuring production of crude oil with API qualities according to clients’ specification.

In its short span of existence, Wellsworth Energy Services Limited has worked in the IOC-dominated deep water terrain with SNEPCO, TOTAL & Chevron and Mobil Producing Nigeria, Elcrest, in the shallow water field and Nigeria Agip Oil Company on Land to mention a few. With certification of its processes and procedures, the company brings to bear the ability to influence to the highest possible standards the level of performance of any and all stakeholders associated in the drilling and production phase of the oil and gas industry, so echoes Emeka Emezi.

© 2021 Festac News Press Ltd..