Dr. Maikanti Baru, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), has called for more integration among countries within the West African sub-region towards providing lasting solutions to the region’s numerous energy challenges. Dr. Baru disclosed that energy integration across the sub-region was necessary to aid in reducing unemployment and improve the economies of the affected countries.
Dr. Baru stated the intent was to come up with a West African Power Pool that would put up power plants and other gas-based industries along those areas within the respective countries. He added that Nigeria’s crude oil production had seen tremendous improvement in recent years, due to the Federal Government’s laudable efforts in ensuring security in the Niger Delta region.
Chevron Nigeria Limited (CNL), operator of the CNL and the Nigerian National Petroleum Corporation (NNPC) joint venture, signed a Gas Sale and Aggregation Agreement (GSAA) with Dangote Fertiliser Limited (DFL) and Gas Aggregation Company of Nigeria Limited (GACN) as the ‘aggregator’.
The agreement was executed on behalf of the three companies by Chairman/Managing Director of CNL, Jeffrey Ewing; Managing Director/CEO of GACN, Morgan Okwoche, and Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL, Devakumar Edwin respectively. Under the agreement, NNPC and CNL are obligated to supply 70 million standard cubic feet per day (Scf/d) of natural gas to Dangote Fertiliser Limited to enable the startup and operation of the newly built fertiliser plant.
The Dangote Fertiliser Plant at Ibeju Lekki, Lagos, is a flagship mega fertiliser project designed to support the Federal Government’s drive to develop the agricultural sector and in-turn improve the Nigerian economy.
The NNPC/CNL Joint Venture (JV) is currently the largest and most on-spec supplier of gas to the domestic market. The JV continues to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market.
On Monday 11th March, BP announced it has awarded contracts to McDermott International, Inc. and Baker Hughes, a GE company (BHGE) in conjunction with the Greater Tortue Ahmeyim (GTA) natural gas project offshore Mauritania and Senegal.
The contracts cover Subsea Umbilicals, Risers and Flowlines (SURF) and Subsea Production Systems (SPS) equipment. McDermott will provide SURF under its engineering, procurement, construction and installation (EPC) contract. It will use its Amazon and North Ocean 102 marine construction vessels as well as third-party vessels to support installation, which it projects will start in late 2020.
In addition, it noted that it will fabricate the pipeline and riser structures at its yard in Batam, Indonesia. BHGE stated that it will provide: 5 large-bore deepwater horizontal Xmas trees (DHXTs), a six-slot dual bore manifold, pipeline end manifold, Subsea Distribution Units (SDUs), 3 Subsea Isolation Valves (SSIVs), Diverless connections and Subsea production control systems.
The GTA project will produce and process gas from an ultra-deepwater subsea system and mid-water Floating Production Storage and Offloading (FPSO) vessel. Gas will be transferred from the FPSO to a Floating Liquefied Natural Gas (FLNG) facility near the Mauritania-Senegal border. BP has estimated that the project will provide 2.5 million tons of LNG per year for global export and domestic use in Mauritania and Senegal.
McDermott and BHGE stated the initial subsea infrastructure for GTA will link the first 4 of 12 wells consolidated through production pipelines to the FPSO.
On Thursday 14th March, oil prices rose to four-month highs pushed up by ongoing supply cuts led by OPEC and as data showed U.S. output slowed last week, boosting optimism that a global surplus is shrinking.
The U.S. West Texas Intermediate crude futures for April delivery gained 30 cents to $58.56 a barrel at 9:05 AM ET (13:05 GMT), while Brent for May delivery was up 31 cents at $67.86 a barrel.
The U.S. Energy Information Administration weekly report showed a fall in crude oil inventories by 3.86 million barrels in the week ending March 8, as against a forecast for a stockpile build of 2.66 million. OPEC said its crude output had fallen by 221,000 barrels per day (bpd) in February from January, to average 30.55 million bpd.
The bulk of OPEC’s cuts in February came from Venezuela, which is facing an economic and political crisis and is currently subject to U.S. oil sanctions. Analysts said tighter global inventories from OPEC-led supply cuts and U.S. sanctions on Venezuelan petroleum products have cemented support for oil prices. Oil gains also came as data showed U.S. crude production fell by 100,000 barrels last week, the first decline in three months.