In line with global best practices and the principal aim of the Nigerian Extractive industry and Transparency Initiative (NEITI), President Jonathan recently forwarded the Petroleum Industry Bill to the National Assembly for passage into law. By the time the Petroleum Industry Bill is passed into law, Nigeria would have successfully broken the jinx of being a Nation where global business rules and practices are flouted with impunity. Estimated annual earnings of 680 billion dollars would be added to our Gross Domestic product. Crude oil theft and other sharp practices are also being combated with much vigour by various security and regulatory agencies on the president’s instructions. Furthermore, the fuel subsidy regime which had been a conduit pipe through which huge funds were siphoned from the National treasury has been subjected to forensic scrutiny by various agencies and committees set up by President Goodluck Jonathan in the last twelve months. The Aig-Imoukhuede Presidential committee on verification and reconciliation of subsidy claims and payments led to the arrest and arraignment of a number of individuals and firms by the EFCC. It is also on record that the president, upon receipt of the House of Representatives subsidy probe panel report, forwarded same to relevant security agencies with a firm instruction that there must be no sacred cows in the prosecution of culpable individuals and corporate entities. The on-going implementation of this and other reports has resulted in huge savings of money hitherto stolen by corrupt public officials.’ These are initiatives which had not been taken by any other previous government. Key projects in the oil and gas sector: Construction of a 36”x136 km gas pipeline from Oben to Geregu for the supply of gas to Geregu Power Plant in 2011 Construction of a 24’x31 km gas pipeline from Itoki to Olorunshogu to supply gas to Olorunshogo PHCN/NIPP Power Plant. Completed and currently supplying gas Six (6) University Upgrade projects have been completed and handed over to the beneficiaries,while others below 45 percent completion are now at advanced stages of 60 percent - 95 percent completion. Under the Amnesty Programme in the Niger Delta, over 1,368 trainees and scholars have graduated in various disciplines, within and outside the Nigeria. About 1,696 are currently undergoing training with others numbering 110 to commence training Trans-Sahara Gas Pipeline (TSGP): As an offshoot of the Trans Nigeria Gas Pipeline, the 5-phase TSGP currently at the 3rd phase, is expected to be completed during 2013 – 2016. The overall project to be completed in 2018, is aimed at further transporting gas from Nigeria to Europe through Niger and Algeria; Completion of the processing of about of 1,096 km2 seismic data. Phase 5 seismic data acquisition commenced in Dec. 2012, while scanning and vectorization of 380,471.69 km 2D seismic section commenced in Oct 2012; crude oil production (including condensate) averaging 2.30 million barrels per day has been consistently maintained, in spite of oil bunkering and pipeline vandalism; Increased indigenous participation in the oil and gas sector, leading to the establishment of the Ebok Terminal, with a current daily crude oil production of 7,000 b/d and a plateau production of 50,000 b/d at full capacity; Reduction in gas flared from 25.3 percent in 2011 to about 20 percent in 2012, due to the government’s increased effort in implementation of programmes and projects in the Nigeria Gas Master Plan (NGMP) and Gas Revolution; Nigeria Gas Company (NGC) gas sales and transmission throughput grew from 722 mmscf/d in 2011 to about 800 mmcsf/d in 2012; Completion and commissioning of a 45mmscf/d gas processing facilities by an indigenous company. A gas flare penalty of $3.5 per 1000scf approved to further deter companies from gas flaring; Reduction in the payment of fuel subsidy of over N2 trillion in 2011 to about N1 trillion in 2012 through the introduction of certified cargo inspections, insistence on adequate documentation, reduction of the number of participants by 67 percent from about 128 in 2011 to 38 currently; Revamping of the Fluid Catalytic Cracking unit (FCCU) in Kaduna Refinery after eight years in limbo, to boost local refining. Currently the Kaduna refinery is producing at 60 percent of installed capacity; On-going rehabilitation of the Port Harcourt and Warri refineries to meet at least 70 percent of the country’s needs. This will save $3.5billion foreign exchange and enhance tax payment to treasury; Niger Dock fabricated and completed the Abang and Itut oil production platforms, using 100 percent Nigerian engineering and fabrication. The total investment in the facilities upgrade was estimated at above $2billion and has generated over 10,000 jobs; Increase in Local Scholarship Schemes run by Petroleum Training Development Fund (PTDF) from 10 to 19 universities, to enable more participation of qualified Nigerians. This is due to the positive impact generated by the Scheme; Establishment of the Hydrocarbon Pollution Restoration Project (HYPREP) in July 2012, to investigate and evaluate all hydrocarbon-polluted communities and sites in Nigeria, as well as identify oil spill sites and assess the impact of spillage on the eco system in the Niger Delta region. Documentation of oil spill sites in 9 States of the region have been undertaken; HYPREP robust programme has continued to restore the environment for healthy ecosystem, reduce draw-back in agriculture and fish farming which is a major component of Small and Medium Enterprise SME and is impacting positively on the health of the people; Project Aquila payment efficiency has encouraged increased investments of N53 billion in the downstream sector, resulting in emergence of additional 27 new depots from 44 locations in 2010 to 71 depots in 2013, 1,000 new retail outlets and 800 new trucks; and Reduction of daily consumption of premium motor spirit (PMS) from over 60 million to about 40 million litres per day in 2011 and 2012 respectively, due to improved documentation process under project Aquila. This has also led to a reduction in the subsidy gap, following the increase in pump price from 65 to 97 Naira/litre.
Posted on: Tue, 13 Jan 2015 01:24:11 +0000
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