Page 9 - AfrElec Week 16

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Sudan begins allowing private firms to import fuel
SUDAN
SUDAN’S transitional cabinet announced on April 16 that the private sector and banks would be allowed to import fuel for the transportation, mining and industry sectors for the first time.
The country is struggling with severe fuel shortages, and it is running out of foreign cur- rency reserves needed to pay for imports.
Shortages have been particularly acute this year, reportedly because of a blockage in the pipeline that pumps crude oil from fields in Kordofan State to the Khartoum oil refinery.
Having to buy all its fuel itself has placed a considerable burden on the crisis-struck North African state’s budget. Sudan’s government is struggling to turn the country’s economy around after decades of mismanagement under the rule of ex-president Omar al-Bashir, who was ousted by the military last year. It is also still reel- ing from the loss of most of its oil wealth after South Sudan’s 2011 secession. The coronavirus
(COVID-19) pandemic has worsened matters. Sudan also maintains costly fuel subsidies to keep domestic prices affordable.
The IMF and other lenders have repeatedly called on the government to end these subsidies. But it is reluctant to adopt austerity measures too hastily for fear of putting too great a burden on the population and causing a public backlash. The government had intended to begin gradually lifting subsidies starting with its 2020 budget, but back-tracked on this plan after threats of mass protest. It still promises to end the support eventually, but is yet to shore up a
timeframe for doing so.
In late January, Finance Minister Ibrahim
Elbadawi described the decision as a “no brainer” and said the government hoped to cut the sub- sidies over the course of 18 months, beginning as early as March. But the phase-out has not yet materialised. ™
GAS-FIRED GENERATION
NCDMB touts Project 100 to NLNG
NIGERIA
THE Nigerian Content Development Monitor- ing Board (NCDMB) has asked the four-mem- ber Nigeria LNG (NLNG) consortium to look to participants in its Project 100 programme as it seeks local contractors to assist in the expansion of its seventh production train.
In a statement, NCDMB said that its execu- tive secretary, Sembi Kesiya Wabote, had touted Project 100 in a recent letter to Tony Attah, the managing director of NLNG. In the letter, Wabote included a list of the Nigerian companies that are participating in the programme.
The list described the track records of all 100 firms, as well as the range of services offered to support oil and gas operations.
“The areas of competencies of the Project 100 beneficiaries include exploration, subsur- face and seismic services, fabrication and con- struction, FEED, detailed and other engineering services, marine services and operations and inspection, testing and certification,” the state- ment said. “Other key areas of competencies are inspection, hookup and commissioning, mate- rial and procurement, project management and consulting, well drilling services and petroleum technology, as well as maintenance and modi- fication, among others.” NCDMB launched the Project 100 programme in the hope of identi- fying promising start-up firms in the oil and gas sector. The board has arranged to “support
[these companies] through special interven- tions to facilitate their incubation, maturation and growth into world-class service companies,” according to the statement.
As of press time, no word was available on NLNG’s response. Wabote said that his agency was in touch with multiple investors and would continue to make regular recommendations of Project 100 participants to other parties.
Existing commitments NLNG has indicated before that it wants to maximise the use of local content in the construction of Train 7, a new production facility. Speaking at an industry con- ference in Abuja in February, Attah noted that Nigeria’s government had already approved its plans for the Train 7 project.
“Riding on the back of a robust Nigerian content plan endorsed by the Nigerian Content Development Monitoring Board, 55% of the engineering activities for Train 7 will be carried out in-country, and 55% of all procurement for execution of the project will be undertaken by Nigerian vendors,” he said.
The NLNG head also stated that fully 100% of all installation and construction work would be carried out in Nigeria. The project will benefit the country’s economy in many ways, including “the creation of jobs for our teeming youths, net- ting up to 12,000 direct jobs [during] the con- struction phase, as well as the associated skills
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