COVID 19: Oilserv Donates Medical Supplies To Enugu State Government

By Chioma Orji

Nigerian engineering, p r o c u r e m e n t a n d construction (EPC) g ia n t , O il s e r v o n Friday August 7, donated medical supplies and Personal Protective Equipment (PPE) to Enugu State Government and people, in furtherance of the Group corporate social responsibility initiatives and support in the fight against Covid-19 pandemic in the state.

This gesture is sequel to the Oilserv Group donations and support to host communities in Abia and Rivers States, in the fight against the pandemic and to provide palliative to the teeming populace, to help cushion its effect. The donated items, which were received by the Governor, His Excellency, Gov. Ifeanyi Ugwuanyi at the Enugu state Government house, were presented by Oilserv Boss; Engr. Emeka Okwuosa.

The items donated include: Disposable Face Mask 3-PLY Flu Virus Dust Protec tion (20,000pcs); FFP2 FDA Approved Mask (400 nos); Nitrile Protective & Disposable PVC hand glove (10,0 0 0 nos.); Transparent Medical Face Shield (200 nos); Disposable Non-woven Protective suit made with breathable film (200 nos); Neutral Infrared Thermometer (50 nos); and Facial and Temperature Monitor Facial and Temperature Monitor / Camera with Accessories and Brackets (1 nos).

Others were: COVID-19 Rapid Test Kit (200 nos); Alcohol based hand sanitizer (70ml) – 500 nos; Alcohol based hand sanitizer (125ml) – 360 nos; Alcohol based hand sanitizer (500ml) – 120 nos; Alcohol based hand sanitizer (5 Litres) – 60 nos; and Antiseptic liquid handwash (600ml) – 180 nos Oilserv commended the governor on his indefatigable effort and determination to keep Enugu State safe at this time of COVID-19 pandemic.

By JEROME ONOJA AND AMOS IKE

Unemployment, one of the root causes of poverty and crime, has over the years, been a major challenge and burden to Nigeria.

The National Bureau of Statistics’ (NBS), had in its third quarter 2018 report, pegged unemployment in Nigeria at 23.1 per cent; underemployment at 20.21 per cent; youth unemployment and underemployment at a worrying 55.4 per cent. That means for every 100 Nigerian youth in the working-age range, approximately 56 persons are either unemployed or underemployed. These statistics has further been worsened since COVID-19 struck, as more and more businesses have been affected by the lockdown. The decline in economic activities has made some businesses go bankrupt. This is also threatening the promise of President

Muhammadu Buhari to lift 100 million Nigerians out of poverty, mainly through job creation, making its attainment seem impossible.

Nigeria’s unemployment rate had been projected to rise to 33.5 per cent by 2020, while it has been estimated that the “ global pandemic could push at

Vice President Yemi Osinbajo had argued that the combination of the

Osinbajo stated that the government anticipates 39.4 million job losses by December due to the pandemic. Before the COVID-19 pandemic, Nigeria’s unemployment rate was already high at 23.1 per cent, while underemployment stood at 16 per cent, according to the NBS.

In May 2019, Chris Ngige, the Minister of Labour and Employment, also projected an unemployment rate of 33.5 per cent by 2020.

In its June 2020 report, analysts at Financial Derivatives Company (FDC) stated that the imposition of lockdown measures has had a severe impact on business operations and raised the threat of massive job cuts as companies struggle to survive the nightmare of the century.

For instance, the analysts noted that

“the United States reported a spike in its unemployment rate to 14.7 per cent in April 2020, the highest since the inception of the unemployment survey,

before it eased to 13.3 per cent in May 2020. They explained that although the unemployment statistics of many African economies including Nigeria is not up to date, these countries are also likely to experience a surge in unemployment rates. Situating the problem, the analysts said: “The Nigerian government’s ability to create employment for its growing youthful population has been gravely undermined by the plunge in oil revenue due to the crash in global oil prices.

“This has necessitated several revisions to the country’s 2020 budget and significant reductions in certain planned fiscal expenditure. Although the oil price benchmark was reviewed upwards to $28 per barrel from $25 per barrel, according to the recently passed revised budget, the fiscal revenue projection is based on expected oil production of 1.8 million barrels per day (mbpd).

“This is above the new OPEC quota of 1.4mbpd. Invariably, it could be as unrealistic as the newly revised 2020 budget of N10.81 trillion, which is 2.08 per cent higher than the initial budget of N10.59 trillion. In other words,

“This is aggravated by the possibility of massive lay-offs of workers by firms operating in the country, especially companies offering non-essential services who have been the most affected by the lockdown measures. A number of companies have reported

a steep decline in earnings in first quarter 2020, largely attributed to the unintended consequences of the COVID -19 lockdown measures.” However, World Bank Lead Economist for Nigeria, Marco Hernandez, argued that

And this is the leadership role stakeholders in the Nigerian petroleum industry have displayed. Despite the lull in economic activities, the Nigerian oil and gas industry is forging on and providing the muchneeded succour and cushion needed to sustain the economy in these trying times. Since the pandemic broke out and the attendant lockdown, most businesses in some sectors of the economy had cut down on their operations, but the oil and gas sector, the country’s major source of revenue and foreign exchange earnings, has continued to forge on, with a number of projects continuing unhindered, while new ones came on stream. Specifically, during the lockdown, investors in the Nigeria Liquefied Natural Gas (NLNG) had taken the Final Investment Decision for the Train 7 project; the Nigerian Content Development and Monitoring Board (NCDMB) had entered into agreements with firms for the development of an oil and gas park, a modular refinery and lubricating plant projects in Edo and Bayelsa; construction of a shipyard in Brass Island and a research institute and a museum in Oloibiri.

The NNPC is moving beyond its unprecedented audit to the revamp of the country’s refineries and proceeding with its plan to construct condensates refineries; Dangote Group is inching closer to completion of its 650,000 barrels per day refinery project, while oil majors have promised to continue with their ongoing projects. Almost all of these projects, among others, are labour intensive and are envisaged to create massive job opportunities for Nigeria as well as make meaningful impact in the economy of the country.

For instance, the NLNG Train 7 project has been estimated to create over 40,000 direct and indirect jobs at its peak, this is in addition to several thousands of jobs it would create from associated industry that would spring up from the expected increase in gas production and utilisation.

Executive Secretary of the NCDMB, Engr. Simbi Wabote, had stated that the

in line with resolve to push beyond the boundary of limitations. The schedule of the NOGICD Act set the minimum engineering man-hours for FEED and Detailed Engineering on LNG Facility at 50 per cent.

He stated further that

“the benefits of the Train 7

The target, according to Wabote, is to assemble over 70 per cent of all non-cryogenic pumps and control valves in-country, while other spinoff opportunities include logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage and many more. He added that “ the project would open up other

Wabote had charged the SCD consortium to fully implement the agreed Nigerian Content levels as contained in the approved Nigerian Content Plan for Train-7 project, covering engineering, fabrication, civil works, local procurement, project services, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, human capacity development and jobs.

Apart from the job opportunities and the accruable revenues from this multi-billion dollars Train-7 project, the Minister of State for Petroleum, Chief Timipre Sylva, also sees the additional tonnage of LPG to be produced from Train-7 as a key benefit to reduce importation of LPG into the country.

Another massive job creating project is

Estimated to cost about $18 billion, the refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene. The refinery will be able to process 650,000 barrels of crude oil per day into refined petroleum products, which would help Nigeria become an oil refining country, not just an oil exporter.

The Dangote Refinery, which was recently put at 71 per cent completion, is currently envisaged to be completed by 2021. While upon completion, the

Dangote refinery

International and local contractors like MAN Diesel & Turbo, Schneider Electric, C&I Leasing, Honeywell UOP, and Air Liquide Engineering & Construction have benefitted from the building of the refinery and these companies have employed Nigerians to work on the project. In addition, Governor of the Central Bank of Nigeria, Godwin Emefiele, disclosed that the Dangote Refinery would lead to the employment of over 70,000 Nigerians when it finally starts operation. According to Emefiele, the Dangote Refinery and Petrochemical plant, when operational, would increase its workforce from the current 34,000 to over 70,000. Another job creating project is the Dangote Fertiliser plant, which had been envisaged to create thousands of jobs in addition to its opportunities for the Nigerian economy. President of the Dangote Group, Alhaji Aliko Dangote, stated that operations at its new $2 billion granulated urea fertiliser plant at Ibeju-Lekki would begin soon, adding

that

He said, “Nigeria would soon become the biggest and only urea exporter in sub-Saharan Africa, for the first time. And we are not only exporting, but we would also be exporting big time. “We are also going to have polyethene which is about 1.3 million tonnes annually. These two products would bring in about $2.5 billion annually in terms of foreign

exchange. A lot of forex would now come in and that $2.5 billion is only about 10 per cent of remittances.”

“Pre-testing of the fertiliser plant, all the sections of the fertiliser plant, such as Central Control Room, Ammonia and Urea Bulk Storage, Cooling Tower, Power Generator Plant and Granulation Plant, have all been completed and are going through pre-testing.”

He said the project would be the largest fertiliser plant in the world with its three million tonnes per annum capacity which would make Nigeria the largest exporter of petroleum products in Africa.

Alhaji Aliko Dangote

The NNPC had recently secured financing from two oil trading companies and some banks to pay off taxes owed by its subsidiary, Nigerian Petroleum Development Company (NPDC), and also utilise some of the funds to finance the revamp the refineries. During the revamp of the refineries, Nigerians would be engaged by the firms contracted by the NNPC to carry out the revamp, while the revival of the refineries would further create more jobs as more Nigerians would be engaged to work at the refineries. The NNPC said it was also in the process of establishing two new 200,000 barrels-per-day condensate refineries to boost in

country refining capacity. Nigerians would be engaged during the construction of the refineries, and more Nigerians would also be employed when the refineries come on stream.

Furthermore, the Ajaokuta-Kaduna

Kano (AKK) pipeline, which was flagged off during the COVID-19 lockdown, is another project that would impact Nigeria’s employment rating positively. According to the

Federal Government, the economic benefits of the AKK pipeline which would originate from Ajaokuta, in

Kogi State and traverse Abuja, Niger,

Kaduna, and terminate at Kano, would boost domestic utilisation of natural gas for Nigeria’s socioeconomic development, when completed “ It is envisaged to unlock 2.2

Already, Oilserv Limited, one of the nation’s leading EPC partners in the project had said it would employ and absorb about 3,000 workers to complete the project.

Engr. Emeka Okwuosa. Chairman/ Group Chief Executive Officer of Oilserv, said these workers, including engineers, would be engaged to complete a 303 kilometers part of the project in record time of 12 months and commissioned within 18 months. Oilserv said it is going to complete its own portion of the project, which runs from Ajaokuta to some kilometers after Abuja, faster than the 24-month period expected by the Federal government for the completion of the project.

safet y and maintenance on completion of the project. According to the company, all the engineering works on the project would be done by certified Nigerian engineers, as this is part of efforts to promote local content in the oil and gas sector.

Okwuosa said, “We are ready for it. We are already working at laying the lines.

“We will crank up our employment by more than 1,000 and the major part of this 1,000 will be indigenes of the areas where we operate. We have a clear plan to develop the areas where we build pipelines.”

Also, the NCDMB recently signed two agreements with two firms in a deal worth $25 million combined, for the construction of a lube blending plant in Bayelsa State, and an energy park in Edo state, comprising among others, the setting up of a modular refinery and power plant.

Simbi Wabote stated that

which are also capable of creating enormous job opportunities. The two separate partnership agreements and share subscription agreements were signed, firstly, between NCDMB and Duport Midstream Company Limited for the construction of an energy park at Egbokor, Edo State and between NCDMB and Eraskon Nigeria Limited, for construction of a lube blending plant at Gbarain, in Bayelsa State.

The deal saw NCDMB acquire equity stakes in the companies with the intent of ensuring that the aims and objectives of the projects come to fruition. NCDMB is investing $15 million in Duport and $10 million in Eraskon. Wabote explained that the partnership with Duport Midstream Company Limited entails the construction of an energy park at Egbokor, Edo State comprising 2,500 barrels per day (BPD) modular refinery, 30 million standard cubic feet per day (MMscfd) gas processing facility which would include a Compressed Natural Gas facility and two megawatts (MW) power plant.

Regarding the partnership with Eraskon, Wabote said the project would be the first and only lubricating oils blending plant in Bayelsa State, adding that the 45,000 litres per day facility would enhance the availability of engine oils, transmission fluids, grease, and other products.

Chief Executive Officer of Duport Midstream Mr Akintoye Akindele, assured that the energy park project would add value to the nation’s natural resources and create wealth and social amenities for communities.

He added that

noting that the modular refinery would produce a combination of Naphtha, diesel, kerosene and HFO, otherwise known as residual fuel oil.

Wabote, also disclosed

“the Board was in talks with a

Also,

in addition to its target of boosting gas supply and consumption.

Specifically, Programme Manager – National LPG Expansion Plan in the Office of the Vice President, Mr. Dayo Adesina said, the government, with the various gas projects, had projected gas consumption volumes and value to be unlocked in different sectors of the Nigerian economy.

“In the textile industry, for instance, there is a potential to have about 500,000 metric tonnes deployed in that area.

“When we revamp this gas industry, we can create about

opportunity for LPG in the industry for cooling, heating and power generation,” he maintained.

There is also the Project 100 initiative, promoted by the NCDMB, where indigenous oil and gas service

“companies involved in the project have contributed over

that benefit the nation.

The areas of competencies of the Project 100 beneficiaries include exploration , subsur face and seismic services, fabrication and construction, Front End Energy Design, FEED, detailed and other engineering services, marine services and operations and inspection, testing and certification.

Other key areas of competencies are inspection, hook-up and commissioning, material and procurement, project management and consulting, well drilling services and petroleum technology as well as maintenance and modification among others.

Simbi Wabote had explained that Project 100 was conceived to identify 100 start-up oil and gas companies and support them through special interventions to facilitate their incubation, maturation and growth into world class service companies.

He said the programme was introduced as part of the NCDMB’s mandate to develop the capacity of the local supply chain for effective and efficient service delivery in the oil and gas industry.

There is also the LPG cylinder plant being planned in some states across the country that is expected to create about 1,000 jobs; like the proposed plant in Polaku, which the NCDMB said would create between 250 and 350 jobs during the construction phase and other LPG cylinder projects in the south-west region of the country. Other ongoing and soon-to-commence oil and gas projects that would improve the country’s employment statistics over the next coming years include the Brass Island shipyard project; Bonga South-West Aparo; Brass Liquefied Natural Gas (LNG); Olokonla LNG project; Gas Revolution Industrial Park, Ogidigben; Zabazaba-Etan and Preowei projects among others.

However, for these projects to go on as envisaged, experts are unanimous in their views that the much-needed reforms in the petroleum industry should be instituted urgently, especially with the passage of the Petroleum Industry Bill (PIB).

Specifically, immediate past President of the Petroleum Technology Association of Nigeria (PETAN), Engr. Bank-Anthony Okoroafor, argued that

“Nigeria would continue to be faced with severe cases of

and if it also fails to undertake farreaching reforms of the sector. Okoroafor, who is also Managing Direc tor of CB Geophysical Solutions Limited, disclosed that the delay in the passage of the PIB was holding down lots of final Investment Decisions (FID) and critical investments in the Nigerian oil sector.

According to him, the uncertainty created by the lack of passage of the reforms have significantly affected investments in the Nigerian oil and gas sector, adding that it is important for the country to send a signal to the market that the government is serious about the oil reform agenda.

“Time is of the essence now to pass this PIB. There is no better time than now, especially as oil is being found everywhere around the globe,” he argued. Okoroafor maintained that Nigeria’s production was declining by between 10 per cent and 15 per cent annually, adding that

“for the country to maintain two million barrels per day,

He added that to grow to its target daily production of three million barrels per day, Nigeria needs to be spending between $20 billion to $30 billion dollars capex yearly, especially as this would guaranty activity level to achieve and maintain the desired level of daily production.

He said: “Government should assent to and speedily sign the PIB, which comprises the Petroleum Industry Fiscal Bill (PIFB), Petroleum Industry Administration Bill (PIAB), Petroleum Host and Impacted Communities Development Bill (PHICDB).

“Timely conclusion of the ongoing industry reforms would guarantee legislative certainty and clarity. The government should work with the National Assembly and critical stakeholders to actualize this.

“Delay in passing the PIB is holding down lots of FIDs and critical investment. The passage of and the assent by Mr. President to the PIB is important to send a signal to the market that this government is serious about the oil reform agenda.

“The uncertainty created by the lack of passage of the reforms has significantly affected investments in the Nigerian oil and gas sector.

“I call on the legislators to expedite action on the

Also speaking, Senior Partner, Energy and Commercial Contracts of Primera Africa Legal, Mr. Israel Aye, lamented that the country had lost billions as a result of the delay in the passage of the PIB, adding that the opportunity cost of the delay in terms of industry growth, infrastructure and value addition to the economy was too high, for the country to continue to toy with the passage of the bill.

According to him, until Nigeria reviews its strategies and policies relating to the petroleum industry, focusing more on increased domestic consumption of its oil and gas resources and development of the midstream sector of the industry, the industry would continue to make limited contributions to Nigeria’s economic growth, while its impact would always be limited.

He said:

““We believe that this time around, the Ninth National

On her part, President of the Women in Energy Network (WIEN), Mrs. Funmi Ogbue, maintained that the delay in the passage of the PIB was creating uncertainties in the Nigerian oil and gas industry.

She said that the current legal framework in the sector was ineffective, especially with the many regulator y overlaps in responsibilities.

She said, “The expedient passage and purposeful implementation of the PIB is critical to addressing most of the loopholes in the management and governance of the sector.

““The PIB when passed into law will improve governance

In addition, Energy Research Fellow at the Surrey Energy Economics Centre, University of Surrey, Dr. Carole Nakhle, however, commended the Federal Government, stating that the country was on the right path in terms of moving with the long awaited reforms of its petroleum fiscal regime.