Business

Oil And Gas Not Finished Product Says Kutepe

Published

6 years ago

February 1, 2019

Abdulrazak Isa Kutepe, once a gubernatorial aspirant in Kogi State and chairman/CEO of Waltersmith Petroleum Oil Company, in this interview with Premier newspaper explains that Nigeria would fare better economically if we could focus on oil and gas as raw materials and not as finished products.

How have the policies of the Buhari administration affected the oil and gas sector?
I think, as a government, the policies in place now have been quite impressive and innovative. I think during the administration of Dr Emmanuel Ibe Kachikwu, he has attempted to bring in his private sector experience in interfacing with the agencies and tried to bring up policies that, they hope will grow and resolve some of the protracted challenges the industry has been through. He has come up with the seven big wins, which I am sure you are familiar with. We have the oil and gas industry policy, gas flare policy and other initiatives. They are expected to resolve certain issues especially around the sector.

Have these policies been implemented?
They are in the process of being implemented. The only reason for the delay is the cash call issue. Nigeria has been bedeviled with the cash call issue, it has led to inability of the government to meet up with its obligation to the JVE to continue investment in the oil and gas sector.

Are the joint ventures working in Nigeria?
They are working, that is why you have organisations like Total, SHELL and the rest. The JVEs are with the IOC and a couple of indigenous companies. They are responsible for the oil that is being produced in Nigeria today. If they are not working, there will not be oil production. What Kachikwu has done is to help improve the quality of production by some of the policies he introduced especially around resolving the call of cash calls. You don’t hear anything about cash call anymore because a new structure has emerged through which the backlog has been cleared. Going forward, a new funding mechanism has been adopted where government does not have to come up with money directly, the JVEs come up with funding to invest and they recover their moneys from production. Governments will no longer be saddled with the responsibility of cash calls like in the past.

Some Nigerians have called on the FG to sell Nigerian refineries, what is your take on this?
That is a topical issue because a number of different perspectives have come up. Some have said, don’t sell the refineries, rehabilitate them and get them functioning, once they start working, concession them to a private firm that will operate. So technically speaking, government has not sold the refineries, but you will now have a private contractor who is running it for government.

My preferred view is that, government sells some equity of the refineries, but not everything to the person that will operate the refinery. So, if you identify a concessioner, who has the ability and tract record of managing a successful refinery, then give him some parts of the refinery. That way, you are guaranteed that as an operator, you also have a stake in the venture and at the same time, government has not sold Nigerian asset away. So, there is a balance and you will have continuous, efficient refinery because the person investing will ensure that he makes his money back. The government has been struggling right now with whether or not to concession the refinery and then, they have been struck because they have not even been able to reach some form of agreement.

There have been talks on modular refineries; does Nigeria need to start investing in that?
I am building a modular refinery. My view is that, the modular refinery concept is part of the industrialisation concept of our country. Modular refinery is akin to what I call the journey of a thousand miles that starts with one step. Modular refineries can come in to serve specific needs. For example, we have our modular refinery that is located right on top of our oil field.

So, we are producing crude oil and putting it inside the modular refineries. It will refine it and trucks will come and take it from there and we will be selling our diesel just within our operating area. Once you start with that, you can now start talking about expanding it because you will start generating money, which will be reinvested in the company to increase the capacity of the plant. You can start with a modular plant of 5,000 capacity and then you will go up to 30,000 and keep going. It enables you to monitor your finance, recruit lots of people especially indigenes of the location, and it energises a lot of businesses. People who have tanker trailers will get these products. And take them to the marketers. It will help to bring down the cost of diesel. It will not be as expensive as the one being imported into Nigeria. Those are the advantages that a modular refinery can bring.

It is generally believed that the FG does not know the quantity of crude that is explored and exported from Nigeria. If this is true, how do we change this trend?
I think it has been changed now since Kachikwu came in. They have adopted a new technology to ascertain how much oil is produced in Nigeria and how much is exported, where the oil is going and how much really arrives there. They monitor via satellite now and it monitors every vessel that comes to Nigeria, the quantity of crude it has taken and where it is going.

Crude theft is seen as a major problem of the industry in Nigeria, what is your take on this?
These new initiatives will help to curtail that. We have suffered from that and its one of the consideration for setting up modular refinery. Our crude was being stolen within our operations zone. So, now, with modular refineries, you won’t expose your crude through the pipeline where it can be stolen, that is another way you can help to mitigate crude theft. It’s something that will have to be addressed as a security challenge.

Giving the opportunity to formulate a template on how to stop crude theft, what would it be?
It has to be holistic. We must find out why people steal crude by looking at the conditions in the Niger/delta. You have the criminals who steal the crude to sell, there are others who burst the pipelines to go and cook it by creating a local refinery. Those are the two key players that I see in that place. Of course, stealing of crude on a large scale requires technology and to stop it also requires the deployment of technology, effective surveillance, arrest and prosecution of people who are caught. It would really require investment in the appropriate technology and recruitment of the people. Government, in partnership with operatives themselves, can stop this trend. Government must also invest in social programs that would alleviate poverty and improve the overall living condition of its citizens, invest in infrastructure in the Niger/delta to ensure that, people are gainfully employed. These activities have an economic undertone. Law enforcing, surveillance and involvement of technology are some of the things that government must do to ensure that these things are checked.

Has subsidy helped the oil sector in Nigeria?
It has to go because nobody is benefiting from subsidy except for a few people. Majority of the people designed to benefit are not benefitting from it. Subsidy is not helping anybody. The moment you leave Abuja, there is nowhere you go that you get petrol at a subsidised rate. So, the poor people the government is trying to protect are not getting the benefit, yet government is paying millions every year. Government must do something about it. If you want to invite investors to come and put their money, they must be reassured that their money would come out when they refine it.

The world is gradually moving away from oil, and there are fears that if that happens Nigeria will be in trouble what is your take on this?
Of course the global energy architecture is changing, there is renewable energy and gas, which will now take preeminence over oil. However, hydrocarbons will still remain as raw materials for chemical products that we still need.

What is wrong with our structure is that, we are just taking the raw crude and exporting it. The countries where these oil goes to have industries where they use it, places where they produce over 2,000 products from the crude oil as raw material. For example, some of the things we wear are all derivatives for oil. So, if we now want to look at how we can set up industries that can use oil, then we will reposition ourselves as a nation. We will now start reproducing those things from the product that we export because we will have added value to these things. So, yes, the dynamics are changing but we also need to adopt quickly. We need to invest in industrialisation to utilise what we have.

Is it true that if government explores the gas sector, it will be more lucrative than the oil sector?
This is all about the fundamental shift in how oil is perceived. We must have the mindset that oil and gas are raw materials. It is not an end in itself. The way we have treated oil and gas in Nigeria is that, it is a final product. So, we produce the crude oil, export it and earn the dollars and that is it. The only way we can have the kind of impact we are talking about is when you use them as raw materials to produce other things. You can derive lots of things from oil when you add value to it.

It’s not necessarily producing the oil and exporting it, we need to move away from there. There is practically nothing we use that we don’t derive from oil and gas. Some pharmaceutical products are derivatives of oil, which is why developed countries consume most of these products. Just like we export cocoa and go and buy chocolate and then they tell us we can’t produce chocolate here because their standards cannot be met.

Business

How Nestlé and the Swiss Consulate in Nigeria are upskilling and creating job opportunities for Nigerian youth

Published

1 week ago

December 14, 2024

august24admin

How Nestlé and the Swiss Consulate in Nigeria are upskilling and creating job opportunities for Nigerian youth

For the thirteenth consecutive year, Nestlé Nigeria has empowered more than twenty young Nigerians through the Technical Training program in its factory at Agbara.

The participants received scholarships and training to attain the highly recognized City & Guilds certifications.

In addition, the top five students were given the opportunity to conclude their training with an eight-week apprenticeship at two of Nestlé’s technical sites in Switzerland (Orbe and Broc).

Equipped with their newly acquired skills, the graduating batch are ready to embark on their engineering careers with Nestlé in Nigeria.

The Nestlé Technical Training Program in Nigeria is part of Nestlé’s global Needs YOUth initiative. Its objective across the three centres in Agbara, Abaji and Flowergate is to enhance the employability of young Nigerians by providing them essential skills in Mechanical, Electrical, and Automation Engineering. The Agbara training centre is run in collaboration with the Swiss State Secretariat of Migration (SEM).

“Africa has the largest population of young people globally, with 70% of sub-Saharan Africa under the age of 30,” commented Remy Ejel, Nestlé Executive Vice President and Chief Executive Officer for Zone Asia, Oceania, and Africa. “It is crucial to help the younger generations reach their full potential and support economic growth by offering opportunities for skill development and employment.

Nigeria is an important country to Nestlé. We’ve been there for more than 60 years and are proud of our contributions to its development.

This partnership not only helps meet the demand for skilled labor in Nigeria but also supports the local economy and aligns with Nestlé’s broader objectives of enhancing youth employability.”

Since its inception in 2011, the program has received an overwhelming response, with an average of 10,000 applications annually. Each year, up to 60 apprentices are selected through a rigorous assessment process to ensure quality training and personalized attention.

The program includes 18 months of intensive theoretical and practical training for participants, who receive certifications in level 3, 4 and 5 of City & Guilds of London upon completion.

Dolapo Adedoyin Okunola, 25, is a program graduate aspiring to become a Technical Manager. The highlight of her experience was participating in impactful projects aimed at improving energy efficiency and machine validations, while collaborating with a diverse and talented team.

She also enjoyed the opportunity to learn basic French and explore the picturesque Swiss landscapes. “The Nestlé Technical Training Program has significantly enhanced my abilities and expanded not just my skills and academic knowledge but also my experiences of different cultures and languages,” Dolapo explained. “The comprehensive training I received in Nigeria, combined with my internship in Switzerland provides me a competitive edge in the corporate world. I am confident that this program has laid a strong foundation for my career.”

The program not only enhances the technical skills of talented young Nigerians but also fosters cultural understanding and knowledge sharing between Switzerland and Nigeria.

His Excellency Osuobeni Rawlings Krobari, Chargé D’Affaires of Nigeria to Switzerland and Liechtenstein added: “I am delighted to see the program’s success in enhancing the employability of young people in Nigeria. A skilled workforce is vital for our long-term growth.

I extend my heartfelt congratulations to the graduates on their achievements. I encourage them to view their new skills as not only a foundation for their careers but also an opportunity to be ambassadors for their generation, by sharing knowledge and best practices with their peers.”

To date, the program has benefited close to 230 trainee graduates, with 98% securing employment at Nestlé Nigeria. Nestlé and SEM jointly invest in the program, reflecting their commitment to provide more economic opportunities to youth.

Ms. Valérie Gass, Policy Advisor, State Secretariat for Migration SEM, said: “This program was launched the same year as the migration partnership between Switzerland and Nigeria, which aims, among other things, to create greater economic opportunities locally.

The program is an excellent example of a successful Swiss public-private partnership that effectively addresses challenges and creates meaningful opportunities. We take great pride in this initiative and remain committed to supporting youth in Nigeria.”

The Nestlé Technical Training Program consists of three programs run by Nestlé Nigeria in its factories in Agbara, Flowergate, and Abaji. In 2024, a total of 70 top-performing young Nigerians from these programs completed apprenticeships.

This initiative is just one example of how Nestlé is helping youth become more employable across Asia, Oceania, and Africa. Drawing inspiration from the Swiss dual education system to combine theoretical and practical training, Nestlé aims to create a positive impact in the countries where it operates by leveraging global expertise alongside local insights.

The global Nestlé Needs YOUth program was launched in 2013 and aims to help 10 million young people around the world access economic opportunities by 2030. As part of this ambition, it aims to reach more than 5 million youth across Asia, Oceania and Africa.

Business

ACCESS BANK PLC SIGNS AGREEMENT TO ACQUIRE 100% EQUITY STAKE IN SOUTH AFRICA-BASED BIDVEST BANK

Published

1 week ago

December 14, 2024

august24admin

AJAGBE ADEYEMI TESLIM

Business

Alleged Blackmailing of GTCO, CEO: Bloggers’ trial moved to January

Published

1 week ago

December 13, 2024

august24admin

Adenle Ahmed Abiola

The trial of four bloggers: Precious Eze, Olawale Rotimi, Rowland Olonishuwa, and Seun Odunlami, charged with allegedly blackmailing Guaranty Trust Holding Company and its Group Chief Executive Officer, Segun Agbaje, was on Thursday adjourned to January 13 and 14, 2025.

They were dragged before Justice Ayokunle Faji of the Federal High Court, Lagos by the Special Fraud Unit of the Nigeria Police Force.

They are facing a 10 count amended charge for allegedly publishing false information about GTCO and Agbaje through various social media platforms.

They had pleaded not guilty to the charges and were denied bail because Eze was accused of being a serial offender.

However, Justice Faji ordered an accelerated trial of the four bloggers.

At the resumed hearing of the matter on November 13 and 14, 2024, Justice Faji dismissed their bail applications, citing the serious nature of the alleged offences, which included charges that could lead to up to 14 years in prison.

The judge also held that Eze has shown the tendencies of committing the offence again if let out as he is currently charged with a similar offence in another court and was only out on bail when he went ahead to commit the alleged offence for which he is now standing trial.

He also highlighted the potential destabilising impact such actions could have on the banking sector, particularly since some of the charges involved cross-border activities on the internet.

He also noted that the defendants’ actions challenged the authority of regulatory bodies, including the Central Bank of Nigeria, which had approved GTCO’s audited statements.

At the resumption of trial on Thursday, the defence counsel, O. A Afolabi, called Eze, the 1st defendant, to the witness box to give his testimony concerning the circumstances surrounding the recording of his statement at the police custody after his arrest.

The witness said: “I was arrested on September 21, 2024 at Gbagada and was taken to the SFU office in Ikoyi.

“When we got there, I was taken to the office on the first floor by the right, where we met someone called Abu, who later called Mr. Yakubu to conduct my interrogation.

“He then took me to another office where there were many files.

“He then asked me if I knew why I was arrested and I answered that I had no idea.

“A file was then shown to me and I didn’t know how the file applied to me.

“Yakubu then replied that it was a petition written against me and a few others from GTB.

“We sat down and discussed.

“He told me my name was mentioned that I wrote a story against the bank and he said if I should cooperate with him, the issue will be settled seamlessly.

“He said if I give the full details of the issues, I’d be free to go.

“He said I should write my statement and I asked that my lawyer has to be here before I write and he replied that it doesn’t matter since all that he asked was for me to write what happened.

“I was insistent on having my lawyer around and he got offended.

“He said I should write my statement If I want to leave the station that same day.

“I agreed eventually and he brought a sheet of paper for me to write.”

On whether the interrogation room captured in the video played for the court was the same room he was taken to immediately he got to the SFU office, the witness replied that he had seen the video and the room was different from the initial one he was taken.

Afolabi further asked the circumstances surrounding the writing of the two statements shown in court.

Eze replied: “The statement I wrote in the first office I was taken to was the same one I was given to rewrite the same thing in another form.”

Objecting, the prosecution counsel, Chief Ajibola Aribisala (SAN), urged the court to play the video recording of the statement to ascertain the authenticity of the witness’s claims that he copied his first statement in his second.

Chief Aribisala informed the court that the two statements, in contrast to what the witness said, were two different statements without same narration and meaning.

In continuation of his cross-examination, the prosecuting counsel urged the court to allow the witness to read out a few lines from the two statements to determine if it was copied or rewritten.

The defence counsel raised an objection to the suggestion of reading out the content of the statements to the court by the prosecuting counsel.

Aribisala insisted that the statement is yet to be admitted before the court and as such cannot be read out.

After few deliberations, the trial judge admitted the statement as evidence to be used in the trial within trial.

The prosecuting counsel, after the careful comparing and contrasting of the two statements, asked the witness the similarities between the two statements to ascertain it as being copied or rewritten.

The witness replied: “I’m not a child and I’m learned to know that I’m not expected to write the statement verbatim.

“And as a writer, I can write on the same subject matter or topic with different approaches or words.”

Eze added that the initial part of the second statement he was seen writing in the video played in the court was dictated to him by Investigating Police Officer Yakubu, who later gave him the first statement to copy into the second one he wrote.

Opposing, Chief Aribisala told the court that the two statements are the original thoughts of the witness and not dictated as the witness had alleged in his testimony.

Justice Faji thereafter adjourned the case until January 13 and 14, 2025 for further cross-examination of witnesses.

The Eagle Online recalls that at the resumption of trial on Tuesday, a police witness, M. Yakubu, who was still under oath, was cross-examined by the defence counsel.

Adeniyi had asked him: “Are you familiar with international laws and practices that guide investigators and the implications of not adhering to such laws and practices?”

The witness replied: “I am aware,” adding that he had been an investigator since 2001.

On whether he knew that each column in a statement form has its importance to the investigator and the suspects and as well familiar with his right to guide and not induce or promise the suspect through the process, the witness replied that he was certainly aware.

Adeniyi further asked for the starting and ending time of each statement recording of the defendants from the 1st to the 4th and the reason for the process without the presence of their lawyers

The witness replied that the maximum time spent in recording the statement of each defendant was an hour and it was done in the absence of their legal representatives, which he said was as the defendants agreed to do.

He further probed: “How many interrogation rooms do you have at your station?”

Witness replied: “We have only one.”

Defence counsel: “How did you record the statement of the four defendants?”

Witness: “It was done one after the other and I was the one who conducted it.”

Defence counsel: “Do you have an observation room at your station? How many?”

Witness: “We only have CCTV footage of the interrogation room, which can only be viewed from the office of the CP, DSP and ACP.”

The defence counsel then prayed the court to give room for more witnesses for cross examination.

Opposing the application, Chief Aribisala urged the court to reject the request or mandate the defence counsel to make available the list of witnesses before they appear in court.

In delivering his ruling, Justice Faji ordered the defence counsel to update the prosecuting counsel on the list of the witnesses that will be summoned at the next hearing slated for Thursday, December 12, 2024.