Federal Government is considering burying petroleum pipelines 12 meters deep into the surface of the earth to check vandalisation, Minister of State for Energy, Mr. Odein Ajumogobia, SAN, said in Lagos yesterday.
In London, also yesterday, the Board of Brass Liquefied Natural Gas Limited (Brass LNG), dispensed with the services of its managing director, Mr. Martin Hutchinson. No official reason was given for his dismissal, which was announced on his home soil.
Ajumogobia said the greatest challenge confronting the oil industry today is the theft of petroleum products. The ministry may decide to build trenches to lay the pipelines underground or go for directional drilling technology altogether, he said.
The minister also spoke on the NOPEC bill recently passed by the United States congress seeking to outlaw the Organisation of Petroleum Exporting Countries (OPEC), saying the Nigeria and United States could dialogue and bring about a resolution to the issue.
Speaking during an inspection tour of the Atlas Cove Jetty, Ajumogobia regretted that the huge amounts of money which could have been used on development projects were being spent on demurrage incurred on vessels carrying imported fuel and vowed that �everything possible� would be done to restore the jetty which is responsible for the reception and distribution of 40 per cent of fuel in Nigeria.
On the December deadline for the take-off of the refineries, Ajumogobia, who would not rule out the attainment of the time target, noted that there could be some developments along the line that would affect the set time. He however disclosed that the turn-around maintenance on the plants would begin simultaneously with the work on the feeder pipeline, the Chanomi Creek pipeline.
On the feasibility of the December time line for take off of the refineries, he said, �I must say that I am very weary of answering questions like that. If I say they will be fixed in December, you will come to me in December and say what happened that it was not fixed. I think those of you who are technical people always appreciate the fact that very often, there are problems along the way that are not anticipated. All I will say for now is that government is committed to making this a high priority project now. Until I have sat with the management and looked at all the items that have been raised in details and look at the cost implications, we operate under a budgetary system and so funds have to be allocated and appropriated for specific issues. �Until I have been able to do that, and I can assure you that will be done very quickly, it will be unfair for me to conjecture as to the exact timing.�
On the NOPEC Bill, he said the purpose of OPEC is misunderstood and that the idea that Nigeria and other OPEC countries are benefiting from the high prices is also to some extent misconceived.
�Nigeria is one of the prominent members of OPEC. The purpose of OPEC is misunderstood , it is regarded and described variously as a cartel and I think it is that description and misunderstanding of the purpose of which it was formed that has led to the US congress passing the NOPEC bill. I think we have very good relationship with the US, and I think that the idea that Nigeria and other OPEC countries are benefiting from the high prices is some extent misconceived. Nigeria is a victim of high price of oil, we are importing our fuel product as we all know. So we are victims of high price. So it is in congress to say Nigeria is benefiting from that. I think each country will address the issue, it is in our national interest,� he said.
In London, the Board of Brass LNG sacked Hutchinson without an official reason.
The dismissal was announced on his home soil.
Hutchinson’s ouster sent shock waves across the company’s stakeholders who had converged on London for the signing of agreement to facilitate funds deployment that would enable the firm commence construction on the project site at Brass Island, Bayelsa State.
But THISDAY checks revealed that the former chief executive lost his job to a number of factors considered as stumbling blocks to meeting the presidential directive to the Board to deliver gas to the nation’s economy from the project within its production schedule.
The source said the shareholder had to undertake what was termed a critical review of the project from inception to date.
“It was discovered that one of the Joint Ventures partners, ConocoPhillips, which was rated as not only being very interested in the success of the project, but has sadly shown traces of foot-dragging in the implementation of some actions that could have moved the project forward.
“So being the JV partner that produced the removed managing director, the shareholders reasoned that even though Hutchinson was alive to his responsibilities, he may not go far in advancing the course of the company with certain actions or decisions that are against the interest of his parent company, ConocoPhillips.”
One of the sins of the former managing director, THISDAY checks further revealed, was the failure of the former MD and his company to attend the earth-breaking ceremony of the company in Brass Island.
“They did not honour the invitation to the event because they were saying they did not have adequate security arrangement for them. Other JV partners, oil and gas sector operators, businessmen and other stakeholders were in attendance. The state government was fully in charge and the ceremony was performed by former President Olusegun Obasanjo.
“The question we kept asking ConocoPhillip is: what other security arrangement do you want in an event that had the full presence of the security details of both the former President and those attached to the former state governor, Dr. Jonathan Goodluck?
“All along, we have observed that Hutchinson’s leadership had this limitation and we felt, at the pre-Board meeting, that it would not be in the best interest of the Brass LNG to continue to allow ConocoPhillip remain in the driver’s seat of the project,” the source explained.
It was also gathered that in the place of ConocoPhillip, another JV partner, ENI, was mandated to occupy the office of managing director and also nominate a candidate for the post.
The ENI mandate, it also gathered, was secured following its longstanding exploration and production activities in the Niger Delta and also for its belief that the business opportunities in the area and the gains that will be derived from the project far out-weigh security concerns being raised by the former persons.
Following the management change, the earlier scheduled programme of the day for signing of agreement to facilitate foreign investment injection into the project was postponed to “a day that will soon be announced” the source further said.
However, addressing staff and stakeholders of the firm at a send-forth dinner for former Board members of company, Chairman of the Dr. Jackson Gaius-Obaseki, charged the JV partners to desist from seconding “just any staff” to Brass LNG.
“When we second our staff, we should second the best. We should not see such exercise as an opportunity to reward people. We should go for the best, go for those who can do the enormous work on the ground. Shareholders should take another look at redeployment,” he said.
He, however, assured that the project was on course. He added that the presidential mandate to the Board would be met.
The four Board members that were feted at the sent-forth dinner on Wednesday included Engr. Funso Kupolokun. Kupolokun was chair of the Board before he was appointed Group Managing Director of the Nigeria National Petroleum Corporation (NNPC).
Others are Chief Sena Anthony, Mr. Phil Chukwu and Mr. Tudd Kriggar.
The JV partners, NNPC, affiliates of ConocoPhillips, ENI and Total could have inked the contract for initial site preparation for the realisation of the multibillion dollar project to take off. At completion, it will produce 10 million metric tonnes of the product to the national economy every rear. This is equivalent to more than trains 1, 2, and 3 of the six trains that have been churned out by the nation’s premier LNG company, Nigeria LNG Ltd.
Oct52007