Energy
Renewable energy: NIMASA preparing for Nigeria beyond oil, says Dakuku
BY: Ikenna Oluka
The Nigerian Maritime Administration and Safety Agency, NIMASA, has emphasised its readiness to develop policies that will see to a smooth transition from the regime of intense wet cargo operations, which is the major source of income for the maritime sector in Nigeria, to the inevitable era of renewable energy which may see less activities in crude oil exploration and exploitation in the country.
The Director General of NIMASA Dr Dakuku Peterside stated this when delivering a paper at the Africa Regional Workshop with the theme, the effect of Global Energy Transformation at one of the side workshops during the just concluded Offshore Technology Conference, OTC in Houston Texas.
The NIMASA DG noted that though, the Maritime sector in Nigeria benefitted extensively from oil exploration and exploitation in Nigeria including limited technological and skill transfer, the time to see both opportunities and associated risk of the gradual shift towards renewable energy from fossil fuel for the maritime sector is now. He said that there may be no need for huge vessels, for intercontinental shipment of both crude and refined products in years to come, thus the need for a new logistics dynamics to bring about logistics diversification.
“We at NIMASA are working to create a new framework to maximize opportunities provided by renewable energy. So the world does not leave us behind. As a Maritime Administration we are taking conscious steps to put the necessary building blocks for an era of renewable energy when exploration and exploitation of oil and gas and all associated logistics will no longer play a major role. We propose policies to promote transition to clean and renewable energy. We have accepted the inevitability of renewable energy in years to come “ he said.
Dakuku further stated, there was the need for all African countries to invest in research so that the advent of renewable energy would not take the continent by surprise.
In his words “As government and a people, we must begin to invest in research. We must invest in quality tailor made education for a future without much income from fossil fuel and focused mainly on harnessing potentials of renewable energy which are abound in our country.”
He also disclosed that partnership with other Agencies of Government to undertake research and project into the immediate and long term future of the Maritime industry in Nigeria is part of NIMASA preparation for the future with less income from exploration and exploitation of the oil and gas sector. He noted that the need for Very Large Crude Carriers VLCCs amongst others would reduce, thus the need to guide investments in the Nigerian maritime sector.
According to him “ our partnership with the Nigerian Content Development and Monitoring Board to identify the types of vessels that Nigerian should acquire in order to guarantee good business and return on investment in the immediate and long term is part of our focus on the future. We are investing in research to determine the opportunities and threats that will come with the inevitable shift from fossil fuel to renewable energy”.
While making an energy demand forecast in Africa to increase by 60% in 2030, Dr Dakuku said Hydrocarbons will continue to play a role in the energy mix that will satisfy Africa’s growing energy needs adding that the shift to renewable energy as source will also be significant by the year 2030. Dakuku urged African countries, particularly Governments in West and Sub-Sahara Africa to lay much Emphasis on technology driven process, research and education.
On his part, Chairman Petroleum Technology Association of Nigeria (PETAN), Bank-Anthony Okoroafor noted that the second energy revolution in the 70s, which saw petroleum energy becoming the major source of energy replacing Coal energy which had hitherto provided over 62% of world energy needs in the 1920’s should be an indication of what to expect as the world gravitate towards renewable energy.
“The cost of solar energy generation in 2015 has decreased to as low as one sixth the cost in 2005 and the cost is still crashing daily. With the mass production of electric cars, it is pertinent to note that in no distant future, the “petroleum age” will become a thing of the past just like coal”. He said.
Stakeholders from the oil and gas and Maritime industry across the world, particularly from West and Central Africa attended the regional workshop.
Energy
AVEVA is providing data management support for renewable natural gas projects
Reporter: Godwin Ezeh
Key Highlights
● AVEVA’s industrial information infrastructure has been selected by Archaea Energy to provide key data management support
● AVEVA’s industrial software to optimize performance across Archaea’s RNG plants
AVEVA, a global leader in industrial software driving digital transformation and sustainability, has been selected by Archaea Energy, the largest renewable natural gas (RNG) producer in the US, to build a comprehensive operations data management infrastructure.
Using AVEVA’s software, Archaea Energy can collect, enrich and visualize its real-time operations data, enabling performance analysis across its growing network of plants.
Using AVEVA PI Data Infrastructure, a hybrid solution with cloud data services, the plants will be able to share data to highlight operational opportunities and optimize efficiency.
Caspar Herzberg, CEO, AVEVA, stated,
“Through this collaboration and the use of AVEVA PI Data Infrastructure, Archaea’s growing network of plants will have streamlined operations with accurate performance analysis throughout the expansion. AVEVA’s CONNECT software platform leverages industrial intelligence from a central location, making it easier to deploy additional digital solutions in the future.”
“As the largest RNG producer in the United States, we are dedicated to delivering reliable, clean energy,” said Starlee Sykes, chief executive officer of Archaea Energy. “This relationship will allow us to optimize operations and offer detailed performance analysis as we continue to expand across the country.”
…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.
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