Energy
Train-7 Project Hits 52%, Employs 8,300 Persons
…NCDMB, NLNG Sign E-Market Place Agreement
The ongoing construction of the $5bn Train-7 project being undertaken by the Nigeria Liquefied Natural Gas (NLNG) at Finima, Bonny Island, Rivers State has reached 52 percent and currently engages 8,300 Nigerians of diverse skill sets.
These facts emerged on Friday as the Management of the Nigeria LNG Limited led by the Managing Director, Dr. Philip Mshelbila held an engagement session with the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote at the gas company’s operational base at Finima, Bonny Island.
The high-level engagement was part of the three-day Nigerian Content Stakeholders Retreat. The forum provided a platform for the two oil and gas industry leaders to sign an agreement on the Oil and Gas E-Market Place. The agreement will see the roll out of tender opportunities from the Nigeria LNG Ltd on the E-Market electronic platform, thereby implementing a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Section 106 of the NOGICD Act defines the “Oil and Gas E-Market Place” as a virtual platform for buyers and sellers of goods and services in the oil and gas industry that allows for speedy and transparent transactions.”
Dr Mshelbila, commented that the relationship between his organization and the NCDMB has been conscientiously nurtured over the years, with both parties striving ceaselessly to fulfil statutory obligations.
He said, “We recognise the role of the regulator and are happy you recognise that of the operator and the need for regular engagement.”
He acknowledged the crucial role played by the Board in the take-off of the Train-7 project and assured of the company’s resolve to stretch its local content practice beyond mere compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
He maintained that the company was committed to engaging in initiatives that would boost in-country productivity and economic diversification. “We cannot have a better Nigeria unless we develop the capacities of Nigerians,” he stated, restating the vision of his company to be “a globally competitive LNG company, helping to build a better Nigeria,” he added.
He bemoaned the difficulties the company is facing in getting adequate gas supply and the resultant under-production by its six plants to below 50 percent of their total installed capacity.
He remarked that feed gas to the NLNG plants comes mainly from some its joint ventures (JV) partners, including, Shell Petroleum Development Company (SPDC) Limited, Total Energies and Nigerian Agip Oil Company (NAOC), but their supply pipelines suffer recurrent vandalism, coupled with facility failure and low production from ageing wells, resulting in serious disruption of supplies.
He revealed that the Nigeria LNG was exploring several options to mitigate the challenge, including partnering with critical security agencies to curtail vandalism on the pipelines and working with their JV partners to increase their gas production. He added that the Nigeria LNG Board of Directors had also approved for the company to procure gas from other international and indigenous gas producers in the country, with the goal of enhancing the performance of Trains 1-6.
Dr Mshelbila expressed deep concerns that deepwater gas projects that would provide feed gas for the upcoming Train-7 and other future expansions had not been commenced by the international oil and gas companies (IOCs), despite the significant progress made in the construction of the Train-7 plant. This situation, he said, could lead to the completion of the plant without gas being available for it to liquify.
He solicited the Board’s support for the development of the deepwater gas projects, which are critical to keep Trains 1-6 full and provide gas for Train 7 and future expansion plans.
On his part, the Executive Secretary affirmed that the E-Marketplace will be a game-changer, which will enhance the Service Level Agreement (SLA) guiding the relationship between two organisations.
He noted that the Board decided to start with NLNG because the company’s record of excellence. He added that the intention of the E-Marketplace is to increase transparency in the tender process, “remove human interference in business processes, move things electronically and achieve better results”.
He described the Final Investment Decision (FID) and other critical steps that were taken for the Train-7 project taken at the height of COVID-19 as a proof of stakeholders’ enthusiasm for the project.
He expressed concern over the challenges of inadequacy of gas supply and promised to support the company along the lines of approving third party gas injectors and sanctioning new deepwater gas projects. He added that “most of the marginal operators have also found gas but part of their challenge is where to send the gas.”
He lauded the NLNG for its remarkable success, recalling that at the initial phases of the company’s take-off “the Management level had 90 per cent expatriates and 10 per cent Nigerians.” However, the table has now turned the other way, with the entire Management now consisting of Nigerians.
On milestones achieved by the foremost gas company since inception, its General Manager, Production, Engr. Nnamdi Anowi, said NLNG has as its core areas of operation – Liquefaction, Transmission, Transportation, Marketing and sales. He disclosed that over 5,770 LNG cargoes have been delivered as of September 2023 and over 500,000 tons of liquefied petroleum gas (LPG) produced and sold to markets overseas and in Nigeria.
Keen on optimising production from the nation’s hydrocarbon assets to boost revenues and meet her OPEC production quota, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd., have restarted production from the Awoba field which last contributed production to the Bonny Terminal in 2021 and was finally shut down in February 2022 due to evacuation issues and crude oil theft.
This was contained in a statement put out on the state oil company’s X handle on Tuesday from Abuja, under the signature of its Chief Corporate Communications Officer, Olufemi O. Soneye.
He asserted that since the restart of the Awoba field by NNPC Ltd and it partners on April 13, 2024; production from the field has averaged 8,000 barrels per day and is expected to plateau at 12,000 per day at full ramp up within 30 days.
Awoba is also expected to significantly boost gas supply to the power sector and other gas-based industries, Soneye added.
Biztellers reports that the Awoba Unit which straddles OMLs 18 and 24 is located in the mangrove swamp south of Port Harcourt, Rivers State. Both OML 18 and OML 24 assets are under the management of the NNPC Upstream Investment Management Services (NUIMS).
Recall that the NNPC Ltd. has been recording a string of production successes from the JV portfolio which have significantly lifted overall national production. Besides the recent start of production at the Madu Field by the NNPC Ltd/First E&P JV, the company has achieved the restart of production at OMLs 29 and OML 18 in late 2023 which have steadily contributed an average of 60,000bpd to the nation’s production output since their restart.
The Group Chief Executive Officer of NNPC Ltd., Mallam Mele Kyari, ascribed the achievement to the President Bola Ahmed Tinubu administration’s success in providing enabling operating environment for businesses to thrive.
He expressed appreciation to all stakeholders (staff, operators, host communities, government security agencies, and private security contractors) who played a pivotal role in achieving the feat.
The Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset also known as Madu Field.
Biztellers reports that production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.
The achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of enabling environment for existing and prospective investors.
According to the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, the commencement of oil production at the Madu Field is a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.
He commended stakeholders for their support, and opined that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.
Recall that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd/First E&P JV in 2018.
Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000bbls.
Chevron Nigeria Limited (CNL) has denounced stories being peddled around that it is recruiting.
General Manager, Policy, Government & Public Affairs, CNL, E. O. Brikinn, denounced the stories in a statement made available to Biztellers, in which he cautioned that the company will not respond to enquiries about “fraudulent advertisements and job offers”.
It reads, “Chevron Nigeria Limited (“CNL”), operator of the Nigerian National Petroleum Company Limited (“NNPCL”) and CNL Joint Venture, is aware of the circulation of false recruitment information in some media and online channels in the name of CNL and Chevron Corporation, purportedly advertising job positions in CNL.
“Additionally, fraudulent job offers have reportedly been sent through emails, text messages and phone calls by individuals purporting to be staff or representatives of CNL and Chevron Corporation.
“Members of the public are hereby notified that CNL does not solicit job applications or initiate recruitment processes through emails, posters, handbills, text messages, social media, or phone calls.
“Job seekers are advised to always check the company’s website at: http:/www.careers.chevron.com, and the national newspapers for job advertisements from CNL.
“CNL does not and will not require applicants to make any payment towards processing any job application. Job offers requesting candidates to pay money, at any point during the recruitment process, are not from CNL. CNL advises that anyone who receives these fraudulent communications should report them to the appropriate law enforcement agencies.
“CNL hereby dissociates itself from all false job adverts and offers published in any online media platform, web site, email, poster, handbill or any other medium.
“CNL will not respond to enquiries about fraudulent advertisements and job offers.”
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