Presidential Amnesty Programme To Prosecute Erring Staff, Contractors

The Presidential Amnesty Programme (PAP) says it has uncovered unsavoury acts of fraud perpetrated by some vendors/contractors. The office is currently investigating these activities to determine how widespread and the extent of involvement or connivance with internal elements within the programme.

According to a statement signed by the Interim Administrator, PAP, Col. Milland Dixon Dikio (rtd), “while this investigation is ongoing, it will not stop the payment of those whose contracts and documents have been verified and reconciled as soon as the expected funds are released.”

The statement further read, “However, It will be recalled that before the close of the year 2020, the Presidential Amnesty Programme had sequentially paid a minimum of 104 contractors that had hitherto been owed. This process will continue until everyone is paid what they are owed, subject to the availability of funds.

“It must be noted that while the continuing process is evidence of the PAP’s commitment to its mandate which covers the delegates, the investigations will continue to ascertain the issues that gave rise to this allegation.

“Meanwhile vendors/contractors whose contracts have not been revalidated, have not received an approval to self-fund or been mobilized for their respective contracts are advised to suspend and maintain the status quo.”

Bayelsa Oil and Gas Park to be Ready in 2022, says NCDMB

The Nigerian Oil and Gas Park being developed by the Nigerian Content Development and Monitoring Board (NCDMB) at Emeyal 1, Bayelsa State would be completed in the 4th quarter of 2022, the Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote has said.
According to a statement from the Commission, Wabote spoke on Wednesday after inspecting construction work at the project site in company with senior management of the Board.
He hinted that his assessment visit was a prelude to the planned tour by the Minister of State for Petroleum Resources, Chief Timipre Sylva to the Board’s major projects, including the oil and gas park projects at Emeyal 1 and Odukpani in Cross River State and the Composite Gas Cylinder Manufacturing facility at Polaku.
Wabote expressed delight with the quality and speed of work by the wholly Nigerian contractors. He noted that their work compared favorably with similar jobs across Nigeria and provided evidence that the Board was always acting in accordance with its guidelines on patronage of local service companies.
The park will create a low-cost manufacturing hub that will produce equipment components and spare parts to be utilized in the nation’s oil and gas industry.
The project started with a groundbreaking ceremony on April 27, 2018 and has now reached about 68 percent completion, with four major structures nearly completed, while foundation work was starting on some buildings and parts of the project.
According to the Executive Secretary, “we did the groundbreaking ceremony in 2018 and we were practically inside water; but today, we are seeing structures coming up. We still have a long way to go because most of the buildings are getting to the finishing stages while some are just starting. We believe that we will complete this project by Q4, 2022.”
Explaining the benefit of the park scheme to the nation’s economy, Wabote hinted that the facility would stimulate the manufacturing of oil and gas components in-country and reverse the current trend whereby the sector depended on importation for most of its finished products.
The park would also save the much-needed foreign exchange for the nation and create jobs for our people, he said.
“It will also enhance our capacity and bring about technological innovations because most of those manufacturing will be done here. For the community, it will create a lot of jobs and there will be a spin-off effect to other economic activities. The benefits are enormous.”
He also assured that shortage of electricity would not affect companies that would set up in the park. He said: “We have been able to conquer the challenge of electricity at this site. We have built a 10megawatts gas plant to guaranty power to the site.”
The Executive Secretary also confirmed that Shell Petroleum Development Company (SPDC) was supporting the oil and gas project through a Capacity Development Initiative (CDI).
Shell’s commitment to the project included the construction of Effluent Treatment Plant, Fire Station and acquisition of two fire trucks. The company also committed to construct water treatment plant, sewage systems and piping network for water.

NDDC’s Administrator Harps on Security in Niger Delta

The Interim Administrator of the Niger Delta Development Commission, NDDC, Mr. Efiong Akwa, has stressed the need for peace and security to create the necessary environment for the rapid development of the Niger Delta region.

Akwa stated this when a delegation from the Nigerian Navy Hydrographic School paid him a courtesy visit at the NDDC new headquarters in Port Harcourt.

According to a statement by the Commission, he said that NDDC needed the support of security agencies to succeed, noting that the presence of international oil companies in the Niger Delta region had made the area susceptible to kidnapping and other forms of criminality.

The NDDC Chief Executive Officer said that much as the mandate of the Hydrographic School was basically training, it should also help with surveillance to provide information and data that would help the other security agencies to ensure a safe marine environment in the region.

He added: “The school should be able to share information and intelligence to make the Niger Delta region a place people will want to visit and set up businesses.”

Akwa said that as an interventionist agency, NDDC had a responsibility to ensure that those who safeguard the lives and property of the people were given the necessary support to enhance their capacity to maintain security in the Niger Delta region.

He deplored a situation where after three decades, the Nigerian Navy Hydrographic School was still unable to get international accreditation because of the absence of some critical infrastructure.

He said: “It is regrettable that you have training boats yet you don’t have a jetty. I assure you that NDDC will assist the school to achieve the objective for which it was established.

“Getting accreditation is something we should be proud to help you achieve because it will enhance the capacity of the Nigerian Navy to project us to the outside world as a people that are ready to make progress in the maritime sector.

“We are going to take your designs for the jetty to our Planning Department to incorporate in our 2021 budget and I am confident that the National Assembly will do justice to it. The jetty will be taken care of as soon as the budget processes are through.”

Earlier, the Commanding Officer, Nigerian Navy Hydrographic School, Capt. Mahmud Fana, appealed to the NDDC for support in providing critical infrastructure that would qualify the training school for international accreditation.

He said: “We are having setbacks because of infrastructure deficiency and we need to have the right environment to be able to provide needed security in our area of operation.”

Fana observed that the Hydrographic School was selected for accreditation in 2018 by the International Hydrographic Organisation but following an inspection of their facilities, the accreditation was withheld pending the availability of some facilities, such as surveying boats and a jetty.

He said that a 2018 contract for the construction of a jetty for the school by NDDC was cancelled on account of design deficiencies. However, he said, the school had now produced an appropriate design and would, therefore, want the NDDC to re-award the contract for the construction of the jetty.

Brass Methanol Plant to create 35,000 jobs as NCDMB, NNPC stake US$670m

The  construction of the 10,000 tonnes/day methanol production plant by the Brass Fertiliser and Petrochemical Company Ltd (BFPCL), would not only be the largest methanol plant in Africa and the first in Nigeria, the construction phase is expected to create 30,000 direct and indirect jobs, as well as an additional 5,000 permanent jobs during the operations phase.

The Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Corporation (NNPC) and DSV Engineering had last Friday signed the Final Investment Decision (FID) for the construction of 10,000 tonnes/day methanol production plant by the Brass Fertiliser and Petrochemical Company Ltd (BFPCL), committing equity investment of US$670m.

According to the financing plan, the project is estimated to cost about US$3.5bn and aside the equity from NCDMB, NNPC and DSV, there is an impressive cast of lenders which includes a consortium of Chinese banks led by the China Exim Bank, African Development Bank (AfDB), international commercial banks, regional banks and African institutions and they would be expected to raise 70 percent of the project cost.

Other agreements that have been firmed up include a Gas Supply Purchase Agreement (GSPA) with the Shell Petroleum Development Company (SPDC) led joint venture, offtake agreements and contracts for Engineering Procurement and Construction and technology provider.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, the Group Managing Director (GMD) of the NNPC, Malam Mele Kolo Kyari and Executive Vice-Chairman of BFPCL, Chief Ben Okoye signed the FID on behalf of their organisations.

Speaking at the event, the Minister of State for Petroleum Resources, Chief Timipre Sylva said the project was part of the strategic efforts to maximize value and monetize the country’s vast gas endowments. He stated that President Muhammed Buhari had in July 2020 “approved the development of the Brass Gas Company with the sole aim of aggregating and monetizing all stranded gas in the Brass area, which amounts to over 10 trillion cubic feet of gas, into the processing facilities to be built in the hub.”

He expressed confidence that the project would have significant economic and developmental impact on the country, including support for gas-based industries, revenue generation and import substitution for methanol needs of the nation that is currently 100 percent imported.

Other economic benefits include foreign direct investment, economic diversification, acceleration of Nigeria’s march to zero gas flaring and community development through the company’s plan to offer one percent equity to host communities.

In his remarks, the Executive Secretary NCDMB underscored the significance of two Federal Government’s agencies – NCDMB and NNPC catalysing investments in the country. He added that the project would place Nigeria in the world’s map as one of the top 10 producers of methanol.

He emphasised that Local Content can only grow sustainably when there are oil and gas projects, adding that a mega project of this size provides opportunities to utilize local capacities and capabilities built over the years.

He further explained that opportunities provided by the project in job creation, gas utilization, local availability of methanol for primary and secondary users, formed part of the basis of the Board’s decision to partner with Brass Fertiliser and Petrochemicals Company Ltd to enhance delivery of the project.

Wabote also commended Chief Sylva for recording huge achievements in the energy sector, at a time when most nations are unsure of decisions to make amid the COVID-19 pandemic. He listed some of the Minister’s accomplishments to include the signing of Train-7 FID, Gas Flares Commercialisation, Marginal Field bid rounds, Petroleum Industry Bill (PIB), Refining Roadmap, and others.

The GMD NNPC in his comments described the BFPCL as the most third most important project that had taken FID in the last five years. He stated that achieving FID for the project was proof of the Federal Government’s commitment to monetize the nation’s gas resources, notwithstanding the challenging investment environment. He pledged the commitment of NNPC to ensure the delivery of the methanol plant on schedule by 2025.

According to him, “The country is blessed with abundant gas resources, over 200 trillion standard cubic feet of gas (tscf) proven, with potential of over 600 tscf. As energy transition processes go on, you must monetize these gases as quickly as possible. NNPC will continue to collaborate with all the strategic partners. We will ensure that feedstock is available for this project and subsequent projects that would happen in the Brass hub.”

Executive Vice-Chairman of BFPCL, Chief Ben Okoye said that jobs that would be created from the project would help to assuage the restiveness in the Niger Delta in addition to the development of a new oil and gas city in Brass Island.