Platform located on the high sea near Escravos in Warri, Delta
State in a renewed attack on oil installations in the country.
• Group threatens to take fight to Lagos, Abuja
• Fear grips local oil firms over falling crude prices
• Operators list ways to cushion economic downturn
• Nigeria’s growth to decline to 2.2 per cent
Militants in the Niger Delta yesterday blew up the Chevron Valve
Platform located on the high sea near Escravos in Warri, Delta
State in a renewed attack on oil installations in the country.
The attack is another setback to the nation’s oil and gas
production sector, even as the Shell Petroleum Development
Company (SPDC) is still working to restore the Forcados export
terminals after a similar attack two months ago.
Nigerian Navy spokesperson, Chris Ezekobe, who confirmed the
incident yesterday, said the attack occurred about 40 nautical
miles from the Escravos terminal, around the city of Warri.
Ezekobe said he was yet to know which militant group was
responsible and there were no immediate details of any
casualties.
The development may further reduce the nation’s oil and gas
output. But Chevron is yet to confirm if production has been
halted at Escravos and how much of the process is affected.
A source at Chevron who confirmed the attack said that the
company is working on a public statement, which was not
ready as at press time. It was learnt that the facility was completely destroyed with the use of a dynamite.
The Niger Delta Avengers (NDA), a new militant group, has
claimed responsibility for the attack, warning that the
deployment of soldiers in the region would not deter them from
carrying out further attacks.
NDA threatened not to relent until it cripples the nation’s
economy.
A statement by the group’s spokesman, Madoch Agbinibo,noted: “The high command of the Niger Delta Avengers wants
to use this medium to thank Strike Team 6 for successfully
blowing up the Chevron Valve Platform. And we are ready to
protect the Niger Delta people.
“This is what we promised the Nigerian government. Since they
refused to listen to us we are going to zero the economy of the
country.“As for zeroing the Nigerian economy, the Niger Delta Avengers is done with the Niger Delta major oil installations. Now, we are taking the fight out of the creeks of the Niger Delta. We are taking it to Abuja and Lagos now,” he said.
Agbinibo continued: “We want to pass this message to the all
international oil companies operating in the Niger Delta that the
Nigeria military cannot protect their facilities. They should talk to the Federal Government to meet our demands else more
mishap will befall their installations.”
The group had earlier claimed responsibility for the attack on
the Forcados 48-inch Export Pipeline two months ago.
An attack was launched early this year on Escravos Lagos
Pipeline System (ELPS) connected to Chevron Nigeria Limited’s
gas network at Escravos. This negatively impacted gas supply
to some critical power projects.
The Federal Ministry of Power said the attack cut off the supply
of 160 million metres standard cubic feet per day (MMSCD) of
gas to operators of electricity generation facilities and a cut in
power supply from the affected power plants.
Meanwhile, indigenous companies operating within the Nigerian
petroleum economy yesterday raised the alarm over the
uncertainty surrounding the international crude oil prices which
has led to the deferment of investment plans or outright
cancellation of capital projects.
Their fear was based on the fact that the local content
capabilities that have been built in the industry over the years
may be in danger of being eroded if the companies do not
survive the downturn.
This is further compounded by the expectations of the
International Monetary Fund (IMF) which has projected that
growth in Nigeria and other oil-exporting countries would decline to 2.2 per cent this year.
Operators stressed the need to reduce cost of operations and
projects through local capacity development, indigenous
working assets acquisitions, developing local expertise, low
maintenance and reduction of operational costs of existing assets.
According to the operators at the content workshop with the
theme “Local Content Implementation in the Nigerian Oil and
Gas Industry: A Cost Reduction Strategy,” organised by the
Petroleum Technology Association of Nigeria (PETAN), there
should be cost-effective implementation of projects and
utilisation of local resources to reduce overall cost.
They said there should be a policy direction to focus on
sustainability of Nigerian local capacity to survive the declining
crude oil prices.
At the event, Chairman of PETAN, Mazi Bank-Anthony
Okoroafor, stressed the need for the industry to be placed on
existing in-country capacity instead of patronage, adding that
Nigeria should actively pursue reserves and production growth,
which he said, has been on the decline.
Okoroafor stressed leveraging proven Nigerian companies and
in-country capacity building, adding that proper implementation
of the Nigerian oil and gas industry content development would
significantly drive down the cost of doing business in the
industry and cushion the effects of the low prices.
He stated: “The industry has operated under the Local Content
Act regime for six years now and there is the need to take a
closer look at the implementation strategy to ensure it is
delivering the desired value to various industry stakeholders in
particular and the Nigerian populace in general. Proper
implementation of local content will lead to massive economic
transformation of our great nation.”
Chairman, PETAN Conference Committee, Ranti Omole, stated
that based on the belief of indigenous companies, the
association is partnering to reduce cost of operations and
projects in Nigeria through increased local patronage.
He said: “The industry has been undergoing challenges and
facing turbulent period for the past two years due to low prices
of crude oil and low demand. This has resulted in severe
adverse consequences in the industry as well as on the
economy of many oil-producing nations including our country.
“This has led major players in the industry to rationalise their
operations, seek efficiencies and cost-saving measures to
ensure profitability and survival of their businesses.”
Acting Executive Secretary, Nigerian Content Development and
Monitoring Board, Daziba Obah, said with the right support and
environment, indigenous companies were best positioned to
provide services at lower cost without compromising
standards.
Obah added that there was an opportunity to leverage the low
value of the naira to source services, technology and solutions
locally at much cheaper cost.
He noted that there would be much more cost-savings if
operators develop increased project management capabilities,
stressing: “Operators will save costs by optimising existing
facilities and improving maintenance efficiencies.”
Dwelling on the role of the Federal Government to help save
indigenous companies from the pangs of crude oil prices,
former Chairman of PETAN, Emeka Ene, said that there was the
need to develop the steel sector for local production of steel
billets, coils and plate.
Ene added that government should accelerate gas infrastructure
along gas corridors to ease the availability of gas in oil and gas
parks, oil and gas free zones and other manufacturing locations
supporting oil and gas activities.
“There is the need to engage relevant agencies in foster cordial
and seamless working relationship with respect to expatriate
quota and issuance of work permit.
“There should also be a periodic industry-wide capacity audit of
local companies to establish current capacities and embark on
gap closure interventions. Research and development clusters
should be encouraged to promote the development of home-
grown technology,” he said.
According to the IMF’s April 2016 regional outlook report,
economic activities in sub-Saharan Africa have weakened
markedly, with growth for the region as a whole, falling 3.5
percent in 2015, the lowest in 15 years.
Specifically, the IMF expects the economy to slow further in
Angola, given, among other factors, limited foreign exchange
supply and lower levels of public spending, and in Nigeria as
the adverse impact of lower oil prices is compounded by
disruptions to private sector activities through exchange rate
restrictions.
The report stated: “In view of these trends, governments should
consider a set of policy options tailoring the urgency of
adjustment to the extent of domestic vulnerabilities.
“Commodity prices have fallen sharply and, for energy prices, at
an unprecedented pace. Oil and other commodity exporters are
adjusting, but given the extent of the shock they are facing,
policies are currently ‘behind the curve.’ ’’
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