GRBusiness
Abia blames core investor for delay in Aba Leather/Garment Cluster take-off
The Abia Government has blamed the core investor for the delay in realisation of the Umukalika Leather/Garment Cluster facility project in Aba.
The state Commissioner for Industry, Chief Henry Ikoh, told the News Agency of Nigeria (NAN) on Sunday in Aba that the investor, Reticulated Construction Nigeria Ltd. was not doing what the government had demanded of them.
He said the state government would soon decide on the way forward and what to do with the investor.
“If you call me in two weeks’ time, I shall be able to tell you if we are going on with him (the core investor) or not.
“What we planned is not what the government is seeing on ground at the site now,” he said.
According to him, though work is ongoing at the site, as the government has acquired a 500 KVA generator for its operations.
On alleged extortion of the project’s stakeholders by officials of his ministry, which they noted was also hindering take-off of the facility, Ikoh said he was yet to receive any complaint.
He, however, said that the N7,000 the off-takers were to pay was a “small amount of money” for forms to enable the government know the type of shop each applicant would need.
The commissioner said the state government was committed to clustering major businesses in Aba, adding: “Umukalika is for real and it is going to happen”.
Ikoh said that the government had also created and was working on what he called “the mechanic cluster” at Ovom Community in Obingwa Local Government Area for motor parts dealers and mechanics.
However, Mr Emem Coffie, the Managing Director, Reticulated Construction Nigeria Ltd, the contractor handling the project, said the company was waiting for guarantee from Abia state government to commence work.
He said that since they took over the job in 2015, they had spent so much money but when asked what the money was spent on, as there was virtually nothing at the site, he got angry.
Coffie said that his company had only collected N200,000 from the sale of forms to off-takers, and so could not do much until the end-users make enough commitment to the project.
According to him, the Umukalika cluster project is a Public-Private Partnership project as contained in the Memorandum of Understanding (MOU) his company signed with Abia government and the off-takers.
According to him, the off-takers are to buy application forms for N7,000, fill and return it with initial deposit of N50,000 to show commitment before his company can begin work.
He said that these were some of the terms of agreement between both parties upon which his company could get the assistance of a bank to commit to building the project.
Coffie, however, said “things are on course” regarding the project.
A correspondent of NAN, however, visited the site and discovered that it was virtually empty, except for a block of building, which was just at the foundation level.
NAN also observed that weeds had also covered the rest of the openings dug for the foundation of some of the facility’s buildings.
It would be recalled that the state governor, Dr Okezie Ikpeazu, had promised to develop industrial clusters in Aba when he assumed office in 2015, beginning with Umukalika Leather/Garment cluster.
But three years down the line, the plan to establish clusters for these creative, artisanal sectors had been mired in perpetual delays.
The President, Leather Products Manufacturers Association of Aba (LEPMAS), Mr Okechukwu Williams, said that there was the need to cluster the leather and garment sectors in Abia.
He said that this was because a cluster assembles small and medium scale manufacturers under one roof, providing them with common facilities like power, water, access roads and equipment.
According to him, clustering the sectors together will ensure increased productivity, creation of jobs in the affected sectors and fostering the competitiveness of their products against imported ones.
Williams said that the Leather Workers would prefer to be given another site with landed documents to enable them get banks that could build the facility for them in record time.
The President, Association of Tailors and Fashion Designers (AFTAD), Abia State, Mr Onyebuchi Nwaigwe, said there were many problems facing the realisation of the Umukalika cluster facility project.
He said that the realisation of a leather and garment cluster facility in Aba would require government knowing what the end users would need in the facility and what they were willing to do to have such facility.
He said that the personnel government sent to supervise the projects were not sincere, hence the delay and non-commitment shown over the years in the project resulting in its non-realisation.
Nwaigwe, therefore, urged the state government to hand over the Umukalika Cluster project to sincere and upright people who would not seek to “make millions” from it to ensure its realisation.
Both Nwaigwe and Williams agreed that the size of the Umukalika project would serve only one of the sectors.
They said that merging leather and garment workers at the place would result in some workers remaining at their old shops at Ariaria after others had moved to Umukalika.
They advised the state government to take a census of the leather and garment sector workers in Aba to know their numerical strength before deciding where to relocate any of them.
According to them, the census will save the government the stress of doing a haphazard job that will result in government’s inability to solving the targeted problem. (NAN)
…OML 13 Asset Eyes 80,000 bpd by End of 2025
In a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts, the NNPC Ltd has officially unveiled its latest crude oil grade, the Utapate crude oil blend, before the international crude oil market.
It would be recalled that in July, 2024, NNPC Ltd and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate crude oil blend, following the lifting of first cargo of 950,000 barrels which headed for Spain.
During a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, the Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Foucart told a packed audience of European crude oil marketers.
He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of 330million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf of gas.
“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.
He said the Utapate crude oil terminal is sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles especially those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
He said in bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.
He added to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.
Energy
NNPC Ltd Set to Supply 100mmscf/d Gas to Dangote Refinery
…10-year Deal to Boost Local Production, Revamp Industrial Growth, reports Ikenna Oluka
The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.
This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.
This development, which sees a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.
NNPC Ltd, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
The agreement represents a milestone for both NNPC Ltd and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country.
Women in Maritime Africa (WIMAfrica), in a significant step forward for female representation in the Maritime field, held a strategic meeting with SIFAX Group at the SIFAX headquarters on November 12th, 2023.
The two organizations aim to foster mentorship, sponsorship, and skills development programs that will empower women to pursue and excel in maritime careers, where female representation remains below 1%. Key figures from WIMAfrica, including Continental Vice President Mrs. Carolyn Ufere and Nigeria’s President Mrs. Rollens Macfoy, emphasized the need for corporate partnerships to expand access to training and professional networks for women. SIFAX’s Coordinating Director, Mrs. Wunmi Eniola-Jegede, expressed the Group’s commitment to gender inclusivity and highlighted the presence of women in leadership roles across its various sectors.
In closing, WIMAfrica extended an invitation for SIFAX Group to support its upcoming conference in Lagos, themed “New Economy and Moving Forward for the Next Generation,” which seeks to inspire young women to explore maritime career paths like engineering and marine security. The collaboration between WIMAfrica and SIFAX Group marks a crucial move toward an inclusive future in Africa’s maritime industry.
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