Page 15 - AfrOil Week 31

AfrOil PERFORMANCE AfrOil

“Today, with all the best of our intentions, we This is not the first time Kyari has described
still have significant inflow of expatriate skills high production costs as an obstacle to the
and staff,” he stated. development of the country’s oil resources. In
He described this lack of properly trained June, he said during a webinar organised by the
personnel as a problem, saying: “[By] having Nigerian Association of Petroleum Explora-
local skills available, you are able to reduce cost. tionists (NAPE) that NNPC was trying to ascer-
You are also able to create wealth in commu- tain why oil and gas production costs varied so
nities where we work throughout the country widely in Nigeria, with some producers report-
and the continent, and this will contribute to ing expenses of $9 per barrel and others $93 per
economic growth, bringing down the cost of barrel. He also stated that NNPC hoped to bring
production and, of course, introducing more its own production costs down to less than $10
efficiency in our business.” per barrel. ™

POLICY
Ugandan environmental agency

introduces new oil waste regulations

UGANDA UGANDA’S National Environment Manage- According to the regulations, all companies
ment Authority (NEMA) has adopted a new set seeking licences to handle oil waste must apply
of regulations governing the handling of waste to NEMA. They must also provide the agency
generated during oil exploration or production. with financial security in the form of bank guar-
The new rules, known as Petroleum (Waste antees, escrow agreements and performance
Management) Regulations, were approved by bonds. In turn, NEMA will award licences with
the Ugandan government last year but were a term of one year to qualifying firms, with the
not gazetted until recently. They aim to ensure option of renewal at the end of the term.
that investors working at the country’s oilfields While handling or transporting waste,
dispose of waste in responsible and appropriate licensed companies must ensure that the waste
ways. materials do not leak or spill. They must also
NEMA will enforce the regulations by intro- take steps to keep the waste from emitting nox-
ducing licensing requirements for the handling ious or harmful odours
of petroleum waste. Specifically, the agency will NEMA has been authorised to impose pen-
not permit upstream operators to dispose of alties – that is, fines and imprisonment – on
the waste they generate during exploration and companies that are convicted of handling waste
production work. Instead, it will allow them to improperly. For example, if a waste handler
store such waste on site for no more than three or upstream operator is found to have moved
months, pending removal by a company that has waste materials from vessels, including boats or
secured a government licence for the transport, trucks, to an unauthorised dump site or body
storage, treatment or eradication of waste. It will of water, the agency may impose a fine of up to
also require them to sign waste removal con- UGX100mn ($27,125) and/or a prison sentence
tracts with licensed companies. of up to 10 years. ™

The Nyamasoga Landfill in Uganda handles drilling fluids and other oil waste (Image: WTE International)

Week 31 05•August•2020 www. NEWSBASE .com P15