VPs Argument
Orlando, Elizabeth A
· IOCs Divest $7bn Oil Assets From Nigeria In 4 yrs. (BUSINESSDAY)
In the past four years, International Oil Companies (IOCs) have divested much of their oil assets in Nigeria, deriving earnings of over $7 billion from the sales. In what may have been the latest of the asset disposition by oil majors, Brazilian oil company, Petrobras, which began operations in Nigeria in 1998 in the deep waters off the coast of the Niger Delta, was recently reported to have commenced moves to sell off its stakes in Nigerian oil fields, to raise cash for domestic projects, a deal that may fetch the company up to $5 billion. But the company later said it had yet to make a decision on the potential sale of the assets.
The company, it was gathered, would sell its eight per cent stake in the offshore Agbami blocks, which are operated by United States energy major, Chevron, and a 20 per cent share of the offshore Akpo project, operated by French oil firm, Total.
Analysts believe that the divestments by some of the IOCs are linked to the uncertainties surrounding the Petroleum Industry Bill (PIB), which has also made oil majors hold back on investments.
Shell Nigeria recently disclosed that it was holding back its planned investment of about $30 billion in two offshore deep water projects.
In 2012, Shell, Total, ConocoPhillips and Agip divested part of their stakes in the oil and gas industry.
“The reason for the divestments is probably because of unfavorable investment environment, maybe because of vandalism and damage of their facilities, and probably because of very tense host community issues , said Ademola Oshodi, project manager, Nigerian Natural Resource Charter, adding that “Maybe, it is because of the PIB, which has not been passed.”
Last year, Shell, Chevron, ExxonMobil, Total SA and Eni, who pump about 90 percent of Nigeria’s oil through ventures with the NNPC, had said in a joint presentation to the legislature, that the proposed higher taxes in the PIB would make exploration of oil and gas uneconomical.
Total, the French giant, sold its 20 percent stake and operating mandate of its Nigerian offshore project to a local unit of China’s Sinopec for $2.5 billion last year.
ConocoPhillips, US-based oil group sold its onshore assets after 46 years of operation in Nigeria, to affiliates of Oando Plc., realizing over $1.7 billion from the sale. This includes two offshore properties consisting of a 95 percent operated interest in Oil Mining Lease (OML) 131 and 20 percent interest in OPL 214, as well as a 20 percent interest in onshore OMLs 60-63, a 20 percent interest in the Kwale-Okpai Independent Power Plant and a 17 percent interest in the Brass LNG project.
Royal Dutch Shell Plc., the Anglo-Dutch oil giant, was said to have received cash proceeds of over $2 billion from the sale of eight OMLs, which it operated in the Niger Delta. These include OML 30, OML 34, OML 40, OMLs 26, 42, 4, 38 and 41. The divestments started since 2010.
Last year, it sold its 30 percent interest in OML30 in the Niger Delta to Shoreline Natural Resources Limited for total cash proceeds of $567 million.
The divested infrastructure includes most of the Trans Forcados major crude oil pipeline from OML 30 to the Forcados River manifold.
Total E&P Nigeria Limited (10 percent) and Nigerian Agip Oil Company Limited (5 percent) also sold their interests in the lease, ultimately giving Shoreline a 45 percent interest.
British Gas (BG) Exploration and Production, which invested over $500 million in its exploration activities on the offshore blocks Oil Prospecting Licenses (OPLs) 332, 286, 284 and Olokola Liquefied Natural Gas (OK LNG), pulled out of Nigeria in May 2010.
Claire Lawrie, head, oil and gas advisory for Africa, Ernst & Young, said it was not uncommon for IOCs to divest assets, adding that they had done it in other countries. “They focus on large assets, and get rid of them when they become marginal,” she said.
“This is a good thing for the Nigerian oil and gas industry because it then means that companies such as Addax and Oando can now take over the assets and work with them. There is no cause for alarm. I don’t think it has a negative implication for the industry,” she reckoned.
The Federal Government recently said there was no cause for alarm over the ongoing divestment of petroleum assets by multi-national oil companies, maintaining that all divestments by IOCs would be taken up by local companies.
http://businessdaynigeria.com/iocs-divest-7bn-oil-assets-nigeria-4-yrs
Elizabeth A. Orlando, Esq.
US Embassy Abuja
Deputy Economic Chief
Plot 1075 Diplomatic Drive
Central Area
Abuja, Nigeria
Office: 234 (09)-461-4378 - drop the 09 if call outside Nigeria
Cell: 234 (0) 803-665-1103 - drop the 0 if call outside Nigeria
Abiodun Baiyewu
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Jerry C. Nwigwe
Soldiers drafted to broken oil installation
A gas explosion from the facility had forced residents of the community to flee the area while the oil firm reportedly evacuated its workforce to a safe location.
From: "Orlando, Elizabeth A" <Orlan...@state.gov>
To: vpshr-stakehol...@googlegroups.com
Sent: Wednesday, May 22, 2013 4:29 PM
Subject: VPs Argument
Jerry C. Nwigwe
LITE Africa would be hosting the 2nd meeting of the CSOs Coalition on Business and Human Rights in Nigeria in Port Harcourt, River State to be held on June 26, 2013. This meeting is supported by Australian Agency for International Development- AusAID as part of a one year project on promotion of VPs in Nigeria been implemented by LITE Africa.
Senior Programmes Manager
Leadership Initiative For Transformation and Empowerment- LITE Africa (Formerly NIDPRODEV)
Plot 211, PTI Road, Effurun-Warri, Delta-State
(e): je...@lite-africa.org
(m): +234 803-672-0776
(s): onyeoma1
www.lite-africa.org
Jerry C. Nwigwe
Hubert DE-BREMOND-D'ARS
Thanks for your invitation
Envoyé de mon iPad
Babatunde Ajala
Unfortunately, we would be unable to come for the meeting again. We just came back from Ghana and we have a number of key engagements to attend to.
Kindly keep us in the loop of proceedings and outcomes.
Best,
Tunde
Ijeoma Uchechi Ogbonna
Dear Jerry, Thanks for the invitation. Barr. Sarah Apia will be representing our organization; as I will be traveling to Austria tomorrow for another engagement. I pledge my organization support on this great initiative. Regards |
From: Jerry C. Nwigwe <je...@nidprodev.org>;
To: vpshr-stakehol...@googlegroups.com <vpshr-stakehol...@googlegroups.com>;
Cc: Orlan...@state.gov <Orlan...@state.gov>; Etienne...@international.gc.ca <Etienne...@international.gc.ca>; pascal....@eda.admin.ch <pascal....@eda.admin.ch>; Tom.B...@dfat.gov.au <Tom.B...@dfat.gov.au>;
Subject: LITE africa host 2nd CSOs Coalition on Business and Human Rights Meeting
Sent: Mon, Jun 24, 2013 9:30:55 PM
Abiodun Baiyewu
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Jerry C. Nwigwe
Best
Jerry
From: Ijeoma Uchechi Ogbonna <ijeomao...@yahoo.com>
To: "vpshr-stakeholders-in-nigeria@googlegroups com" <vpshr-stakehol...@googlegroups.com>; "jerry@nidprodev org" <je...@nidprodev.org>
Cc: "OrlandoEA2@state gov" <Orlan...@state.gov>; "Etienne. Lambert@international. gc. ca" <Etienne...@international.gc.ca>; "pascal. holliger@eda. admin. ch" <pascal....@eda.admin.ch>; "Tom. Beamish@dfat. gov. au" <Tom.B...@dfat.gov.au>
Sent: Tuesday, June 25, 2013 8:34 PM
Subject: Re: LITE africa host 2nd CSOs Coalition on Business and Human Rights Meeting
Hubert DE-BREMOND-D'ARS
Jerry
Sorry I cannot support this initiative as TOTAL VPSHR coordinators (at regional and corporate levels) are security personnel who are not using Facebook for any exchange.
Total will not follow your recommendation.
I encourage you to propose another forum for VP exchanges.
Best regards
Hubert de BREMOND d'ARS Corporate Security VPSHR coordinator Assets and maritime security |
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Tel: +33 (0)1 41 35 53 49 Fax: +33 (0)1 47 44 31 24 Mob : + 33 (0)6 32 21 44 82 email : hubert.de-b...@total.com | Total S.A. 2 Place Jean Millier – La Défense 6 92078 La Défense Cedex FRANCE |
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De : vpshr-stakehol...@googlegroups.com [mailto:vpshr-stakehol...@googlegroups.com] De la part de Jerry C. Nwigwe
Envoyé : mardi 2 juillet 2013 16:49
À : vpshr-stakehol...@googlegroups.com
Objet : Facebook page opened for Stakeholders on VPs
Jerry C. Nwigwe
Senior Programme Manager
Leadership Initiative For Transformation and Empowerment- LITE Africa (Formerly NIDPRODEV)
Plot 211, PTI Road, Effurun-Warri, Delta-State
(e): je...@lite-africa.org
(m): +234 803-672-0776
(s): onyeoma1
www.lite-africa.org
From: Hubert DE-BREMOND-D'ARS <hubert.de-b...@total.com>
To: "vpshr-stakehol...@googlegroups.com" <vpshr-stakehol...@googlegroups.com>
Cc: Suleiman GIMBA <suleima...@total.com>; "Wall, Mark (Toronto)" <maw...@barrick.com>; Olutoyin OLAREWAJU <olutoyin....@total.com>
Sent: Tuesday, July 2, 2013 5:35 PM
Subject: RE: Facebook page opened for Stakeholders on VPs
Stakeholders on VPs in Nigeria
http://www.vanguardngr.com/2013/07/why-oil-firms-are-divesting-by-stakeholders/
Stakeholders have blamed the ongoing divestment recorded in the oil and gas sector on high operating costs and tough operating environment.
Chief among this is the menace of crude oil theft which has reached an alarming level over the years.
According to oil and gas experts, Nigeria suffers from widespread oil theft and difficult relationships, in most cases, with local communities, driving up the costs of operation.
Mr. Felix Amieyefori Valentine, Managing Director, Energia Limited, an indigenous oil firm, disclosed that his company and four others – Midwestern Oil and Gas, Pillar Oil, Chorus Energy and Platform Petroleum Limited, lost about $72 million (N11.448 billion) in 2012 alone to illegal bunkering, crude theft and pipeline vandalisation.
He said: “Our cluster group lost about $72 million to crude theft in 2012 alone and at the rate we are going; this might increase to $100 million (N16.9 billion) in 2013. This got us thinking and we considered building a refinery.”
He disclosed that the decision of the group to set up a refinery in the country, pending approval by the necessary authorities, is in response to the high rate of illegal bunkering, pipeline vandalism.
He said the move is also expected to prepare the country for an eventual reduction in crude export brought about by major discoveries around the world and stoppage of United States’ crude import from Nigeria.
He disclosed that the refinery will reduce oil bunkering, as limited quantities will be available to steal.
Securing operating facilities
“On a typical oil rig, there are about 40 members of the Joint Task
Force, JTF, and other security personnel fully paid for by the oil
companies. This is not to mention the huge number of security personnel
guarding our other installations across the country,” a source who chose
not to be named told Sweetcrude.
The source stated that all these are adding up to the costs, making it difficult for oil firms to operate successfully.
Manager, Government/Community Relations, Shell Petroleum Development Company, Mr. Evans Krukrubo, said over 90 per cent of its pipelines in the region have been ruptured by suspected oil thieves.
He also noted that the recent upsurge in illegal refining businesses in the Niger Delta should be a major concern to all stakeholders.
He blamed most of the spills in the Delta on crude oil theft and illegal refineries compared with operational failures. “We are not worried by the money lost by SPDC, but the harm and destruction done the environment,” he said.
He identified Bodo, in Rivers State, Imo River, Nembe Creek Trunklines NCTL and offshore of the Niger Delta as major hotspots for oil bunkering and sabotage.
Krukrubo called on security agencies and state government to assist the firm in curbing the activities of oil thieves and illegal refinery operators.
Economic sabotage
Commenting on the development, Comrade Abudlwaheed Omar, President,
Nigerian Labour Congress, NLC, expressed concern over the high rate of
illegal bunkering and pipeline vandalisation in Nigeria, warning that it
could ruin the nation’s economy if not immediately checked.
He argued that a situation whereby nearly 50 per cent of Nigeria’s crude was stolen by highly placed individuals and other criminals, is dangerous for the nation’s economy and survival.
He also called on President Goodluck Jonathan to take necessary actions to stop this show of shame.
In his own view, Mr. Afe Mayowa, immediate past president of the National Association of Petroleum Explorationists, NAPE, said, “Vandalism is not restricted to Niger Delta. It now occurs in Ogun, Ondo, Lagos and other areas where we have pipelines. Therefore, the decline in Nigeria’s reserves will go on and it will definitely affect our economy negatively.”
Also commenting, oil workers, under the aegis of Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, expressed concern over the consistent decline in Nigeria’s crude oil production over the last couple of months.
NUPENG blamed the drop on persistent crude oil theft and pipeline vandalism and urged the Federal Government to take urgent measures to stem the decline, to ensure that revenue accruing to the government was not affected.
According to NUPENG, government must change tactics and strategies in the fight against crude oil theft and pipeline vandalism.
“We urge the Federal Government to introduce a new technology like monitoring sensors and alarm systems that will be triggered off whenever any pipeline is tampered with. Also, collaboration of the host communities where these pipelines traverse would check crude oil theft from the pipelines,” the Union said.
NUPENG also suggested that if the Nigerian National Petroleum Corporation, NNPC, could bury the pipelines deeply underground, the pipelines would become inaccessible to oil thieves and the vandals.
Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, recently estimated that the country loses about N954 billion ($6 billion) to crude oil theft annually, while the Pipeline Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) said Nigeria lost a total of N162.6 billion from crude oil and petroleum products pipeline losses between 2009 and 2012.
Last year, Mrs. Diezani Allison-Madueke, Minister of Petroleum Resources said Nigeria lost about N1.908 trillion ($12 billion) to pipeline vandalisation and oil theft in 2011, while adding that of the total amount, $5 billion was spent on pipeline repairs, while the amount lost to crude theft was valued at $7 billion.
Confirming this, Minister of Finance, Mrs. Ngozi Okonjo-Iweala, said Nigeria is losing an estimated 400,000 barrels per day (bpd) of crude oil, resulting in about 17 per cent reduction in export sales, costing the nation’s treasury about $14 billion in 2011 alone.
Crude theft encouraged by global support
Speaking in an
interview recently, Allison-Madueke, said: “The very powerful, very
well funded cabals drill holes in the pipelines to draw off the oil. It
is cracked and transported via separate pipelines to barges close to
shore, which move it to ships further out.
“Those ships are going to refineries around the world. When the refineries refine that product, the fiscal output and profit is laundered through fiscal entities in other regions of the world. That answers why the global community needs to assist.” she said.
Okonjo-Iweala also disclosed that Nigeria’s crude oil production now hovers around 1.3 million barrels per day due to the rising incidences of oil theft.
She said that crude theft had continued unabated and is at its highest level ever despite the best effort by government to stem the tide.
With ships, advanced tools and implements beyond the reach of the average Nigerian, oil thieves have over the years impoverished the generality of Nigerians, raking in trillions of naira annually with impunity from their nefarious activities.
The activities of these individuals have on a number of occasions, crippled crude oil supply, distribution and export, depriving the country of a large chunk of earnings from sale of crude oil and other associate products.
Fuelling national insecurity
It is alleged that the oil thieves are using proceeds from the illicit
trade to run other criminal operations, including kidnapping, piracy,
and hostage-taking.