Oil & Energy
Oil Workers, Stakeholders Unite To End Crude Oil Theft
Oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have reiterated their commitment to collaborate with stakeholders in the oil and gas industry to end crude oil theft.
This resolve, they said, would further boost the economic development of the country.
PENGASSAN’s President, Festus Osifo, who made this known at the Opening Ceremony of the 3rd Edition of the PENGASSAN Energy and Labour Summit (PEALS) in Abuja, Weekend, said the scourge of crude oil theft poses a significant threat to the industry, economy, and national integrity.
He said the association has mounted the rostrum over time, both on the streets and in the boardroom, to champion the cause, adding that it would not relent until victory is gained.
Osifo explained that the association was steadfast in the resolve to continuously partner with other stakeholders in the industry to combat the menace through enhanced security measures, technological innovations, community engagement, and collaboration with law enforcement agencies.
He charged the relevant stakeholders and captain of industries at the event to come out with workable solutions that would end the monster, while urging government to put the nation on the right track in terms of economic development.
“As we gather here, let us not lose sight of the broader state of our nation. Nigeria stands at crossroads, and our actions and decisions here in the next few days will provide a framework for a policy trust for government towards shaping the economic outlook of our country. It is incumbent upon us to drive positive change, foster economic growth, and ensure our people’s prosperity.
“Recent policy directions by the government has placed untold hardship on Nigerians. Chief among them is the flotation cum devaluation of the Naira, which saw our currency slide from 450 Naira officially in May 2023 to the current exchange rate of about 1600 Naira.
“This is the reason the landing price of PMS today is over 1,000 Naira (reintroduction of subsidy), the reason why AGO is selling for over 1,300 Naira, and the reason why all Imported commodities are over the roof today.
“The overarching Impact of this on Nigerians can only be imagined rather than experienced.
“Part of the decisions of floatation has totally benefited the oil and gas companies in Nigeria. This has necessitated call for a salary benchmark for oil and gas workers, alignment of trade of the oil and gas commodity Angola, where legislation pegs work pays then the legal tender equivaler Instrument mactised in Mars and at the possibilities of safeguarding the interests of workers amidst currency fluctuations.
“The floating of the Naira in the official market has exacerbated the challenges faced by our members. We must explore innovative solutions to forestall financial losses to workers and prevent undue gains to companies, ensuring a fair and equitable environment for all. PENGASSAN will do all it can to push for this just and equitable distribution across its branches”, he said.
Earlier, in her address, the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, said the event provided the needed platform for the invited professionals, policy makers and Stakeholders in the Petroleum Sector to deliberate on the present and future of the nation’s Oil and Gas Industry focusing on Energy Mix, Security, Divestment and the menace of Crude oil theft as captured by the theme of the year’s Summit with a view to providing access to cheaper energy which she said has become essential for the functioning of modern economies.
The Nigerian Navy Units under the auspices of Operation Delta Sanity says it has recorded significant successes against crude oil theft and illegal refining sites in the Niger Delta.
The Navy, in an updated operations, said the successes were recorded between Thursday August 29 and Monday September 2, 2024.
According to the information, on 29th August, seven large cotonou and two fibre boats operated by heavily armed oil thieves loading crude oil from an illegal loading point around Botokiri axis of Nembe Local Government Area of Bayelsa State were seized.
Also, on 31st August, six suspected crude oil thieves with 109 sacks of illegally refined petroleum products, four fibre boats and two wooden boats were arrested and seized along Ogboinbiri-Kasama-Azama-Isoni of Bayelsa State.
Again, on 1st September, two wooden boats and 328 sacks of illegally refined automated Gas Oil were seized at Otuogori community’s river bank in Yenagoa, Bayelsa State.
Additionally, on 2nd September, 35 sacks of illegally refined Automotive Gas Oil in a wooden boat were seized at Gbaraun area of Southern Ijaw Local Government Area of Bayelsa State.
These successes indicate the effectiveness of Operation Delta Sanity, and the resolve of the Nigerian Navy to sustain current efforts to rid Nigeria’s maritime environment of the menace of crude oil theft and enhance crude oil production for the overall growth of the economy.
The Eko Electricity Distribution Company Plc. has clarified that the Ministries, Departments, and Agencies of the Federal Government, including the military, owed the power distribution company N42billion as the cost of electricity consumed and not N144billion.
The Bureau of Public Enterprise(BPE), disclosed this in a Statement signed by the Head, Public Communications, Amina Othman, at the Weekend.
According to the Statement, the Disco affirmed that its total outstanding debt was N144billion, of which the MDAs and the military owe N42billion.
“The Eko Electricity Distribution Company Plc has clarified that contrary to earlier reports, the aggregate outstanding debt owed by consumers is N144billion, out of which, ministries, departments, and agencies including the military owe N42billion”, Othman stated.
The Statement said this was against prior reports that the MDAs, including the army, police, and other government agencies, were owing N144billion and had refused to pay.
The Disco said, “the clarification became necessary for proper reportage on the matter and to put the records straight”, it stated.
Recall that during a recent oversight visit by members of the House of Representatives Committee on Privatisation and Commercialisation, led by its Chairman, Ibrahim, the Acting Managing Director of the EKEDC, Mrs. Rekhiat Momoh, among other things, informed the members about the legacy debts owed the company by MDAs.
The committee had reported the acting MD as stating that the company was owed N144billion by MDAs within its operational area, saying she mentioned that the military, police, and various state government agencies failed to settle their debts, creating financial difficulties for the distribution company.
Energy infrastructure, a crucial part of global oil and gas supply and the energy transition, are set to get a boost after a heavy lifting equipment provider unveiled the world’s strongest crane-equipment capable of lifting 6,000 tons, or 15 fully loaded Boeing 747 aircraft.
Dutch heavy lifting and transport services company Mammoet has launched a new type of crane, the SK6,000, which, the firm said, could be used for modules to be built faster and also “bigger than ever before”.
As oil and gas continue to be a key part of the world’s energy system—and likely will continue for decades to come—and as renewable energy developers aim for bigger wind turbines, the support equipment for installing oil and gas platforms, offshore wind equipment, and even nuclear power stations is becoming bigger.
Bigger cranes such Mammoet’s SK6,000 could remove some of the limitations of engineering and construction firms. These firms are generally limited by how much weight can be lifted when installed on a platform or turbine.
Cranes that can carry 5,000 tons and more can shorten the time of a project being erected on a site, onshore or offshore, Mammoet says.
“Limitations on lifting capacity force engineers to fabricate smaller modules than would be optimal; tying up site space and increasing the complexity and duration of projects,” the company notes.
“This limitation can also narrow the execution choices available during each project’s planning stage and the percentage of each project that can be executed locally.”
These days, energy companies and their contractors seek faster deployment of energy infrastructure, be it wind turbines or floating production storage and offloading (FPSO) vessels and platforms for oil and gas production.
“There are so many supply chain constraints at the moment that need to be de-bottlenecked,” Gavin Kerr, Mammoet’s director of global services, told Bloomberg, commenting on the new crane.
“The bigger everything gets, you need bigger cranes.”
Moreover, the SK6,000 is containerised and can be assembled quickly on-site. This feature allows it to deliver heavy lift capability wherever it is needed, giving contractors greater flexibility in where and how energy projects are completed” Mammoet said.
“With the innovation of the SK6,000 crane, our customers can think bigger than ever before; pushing modules beyond the 4,000t and even 5,000t barriers. Its low ground bearing capacity also means the crane can be used all over the world”, said Mammoet’s Sales Director Giovanni Alders.
“With its long outreach, small minimum footprint and relatively small site impact, the SK6,000 greatly reduces the topside integration time.
“Needless to say, with larger building blocks you spend less time connecting and testing, and more time producing” Alders added
Energy companies do need faster permit-to-production times in both oil and gas and renewable energy to provide the conventional and green energy sources the world will need.
Wind turbine technology is evolving and making the hub height increasingly taller. According to the Office of Energy Efficiency & Renewable Energy at the U.S. Department of Energy, the hub height for utility-scale land-based wind turbines has surged by 83per cent since 1998–1999, to about 103.4 meters (339 feet) in 2023. That’s taller than the statue of Liberty.
The average hub height for offshore wind turbines in the United States is projected to grow even taller from 100 meters (330 feet) in 2016 to about 150 meters (500 feet), or about the height of the Washington Monument, in 2035, DOE said.
In the oil and gas industry, new resource development is needed as demand for LNG grows and legacy oilfields mature and output declines.
If contractors can bring energy projects on stream faster, both oil and gas supply and the energy transition will benefit.
By: Charles Kennedy