Page 16 - AfrOil Week 49 2021

AfrOil NEWS IN BRIEF AfrOil

Background: Petronas and Exxon announced in Storage and Bottling Plant in Kabukawa layout,
May 2020 that they were working with advisers Kastina State. The project was commissioned on
on a proposed sale of their stakes in the Chad Saturday by the Kastina State Governor, Aminu
project expected to be worth more than $1bn. Bello Masari, and the motivation of the promot-
The project includes oil fields in southern Chad ers is to help address supply constraints in the
and a major pipeline transporting crude oil to a domestic LPG market in the Northern part of
marine terminal for exportation in Cameroon. Nigeria through its plant operations/bulk stor-
Savannah Energy, December 2 2021 age, transportation/distribution, cylinder filling
and bulk retail.
The Executive Secretary of NCDMB Simbi
PERFORMANCE Kesiye Wabote explained that the project in
Kastina State is the first leg of its partnership
PetroNor announces with Butane Energy with the other LPG bottling
plants and depots to be rolled out in 2022.
reserves upgrade at PNGF and bottling plants would come up in Abuja,
He stated that Butane Energy’s LPG storage
Sud block offshore Congo Kano, Kaduna, Katsina, and Bauchi States, while Simbi Kesiye Wabote revealed this at the open-
six depots would be located in Zamfara, Jigawa, ing of the 10th Practical Nigerian Content Con-
PetroNor E&P reports that 1.88mn barrels of Gombe, Plateau, Niger and Nasarawa states. ference held at the Nigerian Content Tower in
oil in net contingent resources are being trans- Wabote stated that Nigeria still has one of the Yenagoa, Bayelsa State from November 29 to
ferred to reserves, increasing PetroNor’s proven lowest per capita LPG consumption in Africa December 2, with the theme “Driving Nigerian
plus probable reserves from 20.2mn barrels to and a lot of opportunities exist for increasing Content in the New Dawn of the Petroleum
22.1mn barrels (estimate as per January 1, 2021). LPG penetration and utilization in Nigeria. Industry Act (PAI)”.
The reserves upgrade corresponds to a In his comments, Minister of State for Petro- He hinted that the aggregate industry
reserve replacement ratio of approximately 140% leum Resources, Chief Timipre Sylva hinted that spending was captured from the projects cov-
of PetroNor’s expected net 2021 production. the commissioning of the plant is directly linked ered by the Board’s Monitoring and Evaluation
The reserves upgrade is related to the develop- to the declaration of Decade of Gas by President Directorate.
ment of Tchibeli NE, a separate structure within Muhammadu Buhari, which seeks to reinforce The computation was part of a Checkpoint
PNGF Sud which was drilled in 1989. PetroNor Nigeria’s aspiration to leverage its gas resources Review of the implementation of the Nigerian
holds 16.83% net interest in the offshore PNGF estimated at 206 Trillion Cubic Feet (5.834 tril- Content 10-Years Strategic Roadmap, to analyse
Sud license in the Republic of Congo. The license lion cubic metres) to develop Nigeria’s national the journey to 70% Nigerian Content and deter-
is operated by Perenco. industrial, commercial and agricultural base. mine the level of the various initiatives intro-
As part of the 2022 budget process, the devel- In his comments, Chairman of Butane duced by the Board.
opment of the discovery Tchibeli NE has been Energy, Alhalji Isa Mohammed Inuwa explained According to him, the top industry spending
sanctioned. The wells will be completed with that the motivations of the project are to preserve areas are $8.07bn on Fabrication representing
dry wellheads from a newly installed jack-up the vegetation and discourage the use of wood to 39% of spending; $4.74bn on Engineering ser-
platform and the oil will be transported to the heat food, create job opportunities for the teem- vices representing 23% of spending, and $5.67bn
nearby Litanzi platform for processing. The ing youths and grow the business profitably. on Procurement of manufactured materials, rep-
development drilling is scheduled to start after He underscored the importance of NCDMB’s resenting 28% of spending.
completion of the four-well Litanzi infill pro- equity investment to the project’s develop- He listed the low spending areas to include
gramme, which started late November. ment, adding that the plant in Kastina could be $1.18bn on Services representing 6% of spend
The Tchibeli NE and Litanzi drilling pro- expanded to 160 tonnes. and $746m on project management representing
grammes are both part of the previously NCDMB, December 4 2021 4% of spending, adding that the aggregated level
announced 17-well drilling campaign. Pro- of Nigerian Content across the five categories is
duction benefits from the two-year infill drill- 42%.
ing programme are expected to be seen from LOCAL CONTENT Noting the Nigerian Content performance in
Q1-2022 and onwards.5 Engineering is above the 70% target, Wabote said
PetroNor E&P, December 7 2021 Wabote: Nigerian oil and areas for focus included fabrication and procure-
ment of materials if the industry is to realize the
gas industry spent $20.4bn 70% target by 2027.
He said: “That is why we are keen to ensure
DOWNSTREAM that the established in-country fabrication
Butane Energy’s LPG on fabrication, engineering yards are utilized for sanctioned projects such
in 2016-2020 period
as NLNG Train 7 as well as drive local manu-
plant opens in Kastina The Nigerian Oil and Gas Industry spent spares, accessories, and other consumables via
facturing of goods such as chemicals, hardware,
with NCDMB support approximately $20.4bn between 2016 and 2020, our commercial venture partnerships and our oil
particularly in key areas such as Engineering, and gas industrial parks. Overall, we believe we
Butane Energy Ltd, one of the gas based busi- Procurement, Fabrication, Project Management, are on track towards the 70% Nigerian Content
ness supported with equity investment by the and Services. target but we will need the support of all industry
Nigerian Content Development and Monitoring Executive Secretary, Nigerian Content Devel- stakeholders to make it happen.”
Board (NCDMB) has opened its 100 tonne LPG opment and Monitoring Board (NCDMB), NCDMB, December 2 2021

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