napims news

NAPIMSI N F O R M AT I O N

The National Petroleum Investment Management Services (NAPIMS) in the office of the Group Managing Director, of NNPC is an integral arm of the Corporation which manages Government Investments in the Joint Ventures, Production Sharing Contracts and other contract agreements in the Upstream Sector of the Industry.

Head Office: 36/38 Gerrard Road, Ikoyi, Lagos.Telephone: +234-1-7642282Website: www.napims.com

To enhance the benefits accruing to the Federation from its investments in the Upstream Petroleum Industry through effective cost control and supervision of JV and PSC operations, as well as opening up new frontiers.

To become world class portfolio Managers of Government investment in the Oil and Gas Upstream Sector.

Mission

Vision

NAPIMS NEWSE D I T O R I A L

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Dear Esteemed Reader,It’s my inaffable joy to welcome you to the first

quarter edition of your ever refreshing NAPIMS NEWS.

In this edition, we celebrate the Nigerian Petroleum Exchange (NipeX). NipeX, a business outfit that sprang out of Project PACE, has operated for a decade. We are delighted to present to you a brief periscope of the Nigerian Oil & Gas one-stop Electronic Market Place.

The GGM NAPIMS, Mr. Dafe S. Sejebor has revealed that the essence of the change being witnessed under the Kachikwu led NNPC is to make the Corporation a more Focused, Accountable, Competitive and Transparent (F.A.C.T) based Oil & Gas Corporation.

Enjoy the story from Ilorin, Kwara State where two NAPIMS top Management Staff bagged the prestigious Fellowship Award of the

Nigeria Mining and Geosciences Society (NMGS).

The Honorable. Minister of State for Petroleum Resources (HMSPR) and GMD of NNPC Dr. Ibe Kachikwu declares faith in the potency of the Nigerian Oil & Gas Industry to overcome its present challenges as the Nigerian Oil and Gas Industry Games (NOGIG) closes in Lagos.

NAPIMS celebrates Innovation; read how six creative minds of NipeX subdued a seemingly overwhelming challenge.

Other interesting stories from our Oil & Gas Analysts, Insurance Experts, Family and Health tips will make your day.

Our Photo Speak and Social Diary pages will delight you.

We joyfully invite you to feast your eyes and enrich your mind.

Dear Doc,Your article on the subject: TRAVEL MEDICINE was of great interest to me. It however, seem that the article focused only on oversea travelers.

Wouldn’t same policy and treatment apply to staff going on Special Projects, Trainings, or Holidays in unfamiliar or high risk terrains within the country?Austin EgedePPMC PHC.

Dear Egede, I wish to thank you for your interest in my article- Travel Medicine.

Your concerns are well noted. As soon as Policy favours that, we shall extend the Travel Medical Pack to all approved interests accordingly. Dr. J.U. Enumah.Occupational Health PhysicianSupr. Field Clinics/Occupational Health UnitNNPC Medical Services Lagos.

IN THIS EDITIONNNPC Evolving into a “F.A.C.T” Based Organization ...Sejebor

NipeX: A Decade of Vision Toils & Triumphs

Dr. Kachikwu Assures Victory over the Present Challenges...

NAPIMS Celebrates Innovation

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pg 15

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pg 10EditorOgbonnaya Kalu

Design/Production +234 1 2915725 +234 8023178885

All inputs to the publication should be forwarded [email protected], [email protected]@nnpcgroup.com, [email protected]

Editor-In-ChiefAhmed Laminu

Deputy Editor-In-ChiefYetunde Azendah (Mrs.)

NAPIMS News is a quarterly journal of the NATIONAL PETROLEUM INVESTMENT MANAGEMENT SERVICES, a Corporate Services Unit of NNPC for distribution to staff, and the public, free.

The views expressed herein are those of the authors and do not necessarily reflect the views of the Corporation.

Ogbonnaya A. [email protected]@yahoo.com

FROM THE EDITOR

READERS REACTIONS

NNPC EVOLVING INTO A “F.A.C.T” BASED ORGANISATION

…SEJEBOR

The Group General Manager, National Petroleum Investment Management

Services (GGM NAPIMS) Mr. Dafe S. Sejebor has revealed that

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By: Ogbonnaya A. Kalu

the transformation taking place in NNPC is to reposition the Corporation as a F.A.C.T based Organization. He said the current reorganization will see NNPC become “Focused, Accountable,

Competitive and Transparent (FACT)”

Mr. Sejebor stated this in a paper he presented during the 52nd Nigerian Mining and Geosciences Society (NMGS) annual conference held recently in Ilorin Kwara State. The Paper was read on his behalf by Mr. Alex N. Tarka of Frontier Exploration Services (FES) NAPIMS.

He further revealed that the 20 Fixes Initiative recently launched

by the Dr. Kachikwu led regime in NNPC, were aimed at such specifics as Cost and Waste Reduction, End-to-End Transparency, Best Practice Efficiency in Operations,

Drive for Delivery and Execution, and Maximization of Profitability. To buttress the gains so far made from the 20 fixes, Mr. Sejebor stated that “ …the recently released 2016 Financial and Operations

report has seen NNPC’s monthly Operating deficits reduced from 30bn Naira in August, 2015 to 3bn Naira by January 2016, a remarkable 90% decrease.”

He went further to state that the Nigerian Oil & Gas Industry is being transformed rapidly for greater efficiency and sustainable growth through Market Reforms, Diversification of the Revenue Base and Monetization of the vast natural gas resources. He added that the focus is to speedily bridge infrastructure gaps and promote inclusive growth as well as capacity building. He assured his audience that a new Industry is being created to boost Industrial growth, create employment opportunities and avenues for acquisition of modern technology as well as increase business and contracting opportunities.

In a well-researched presentation, the Chief Operating Officer (COO) Ventures, NNPC; Dr. Babatunde Adeniran traced the discovery and subsequent drilling of the first oil in Oloibiri, Bayelsa State. He pointed out that the major challenge of the Oil and Gas Industry in Nigeria today is the lack of investments in the Upstream Sector. This is borne out of two factors: the Crude Oil Price fall and the non passage of the Petroleum Industry Bill (PIB) into law. He emphasized that these two factors have deterred new entrants and stagnated exploration activities.

Furthermore, he revealed that the essence of the whole gamut of change going on in NNPC today is to re-invent Accountability, Transparency and make NNPC a money making venture. “…all aspects of NNPC should be to bring in money and not

Chief Operating Officer (COO) Ventures, NNPC, Dr. Babatunde Adeniran making his presentation at the NMGS Conference

(L-R): The COO Ventures, NNPC, Dr. Babatunde Adeniran and the President NMGS, Prof. Olugbenga Okunlola cheering the GGM, NAPIMS, Mr. Dafe S. Sejebor

after his speech

taking out money from the common purse”. Concluding a very impressive and engaging presentation, Dr. Adeniran tried to allay the fears of his audience on the fate of the Nation’s crude oil by stating that “…while we do everything to diversify our economy, I believe that, given the current global energy mix, the relevance of the fossil energy will continue to linger for a long time to come…”

Two NAPIMS Top Management Staff were among those who bagged the prestigious NMGS Fellowship Awards. These were the GGM NAPIMS Mr. Dafe. S. Sejebor and the former GM, FES NAPIMS, Dr. M.D. Bako currently the MD. Nigerian Gas Marketing Company.

In a brief interaction after their Investiture, Mr. Sejebor said he was very happy to be honoured with a Fellowship Award by an elite Society like NMGS, adding that he sees the Award as a challenge to give more service to the Professional Society and to the Nation at large.

In the same vein, Dr. Bako on his part thanked the NMGS for the

award and viewed it as a call and a motivation to render more services to the Society at a higher level and and by extension to humanity.

The President of NMGS, Prof. Olugbenga Okunlola said that the Award goes to those who are morally and ethically unblemished and have distinguished themselves professionally in the field of Mining and Geosciences. He said such people must also have made sterling contributions both

intellectually and in many other positive ways in furtherance of the ideals of the Society and advancement of mankind.

The conference was well attended by Professionals, Political leaders, Representatives from different Ministries, Parastatals, Agencies, the Academia, Students, the Nigerian Extractive Industries, Transparency Initiative (NEITI) and a host of others.

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(L-R): GGM, NAPIMS, Mr. Dafe S. Sejebor and MD. NGMC, Dr. M. D. Bako displaying their NMGS Fellowship plaques and certificates

The former GMD, NNPC and Chairman of the lecture Session, Chief Chamberlain Oyibo (centre) flanked to his immediate left, Mr. Alex N. Tarka and to his right by President of NMGS, Prof. Olugbenga Okunlola and others

NipeX: A DECADE OF VISION, TOILS AND TRIUMPHS

Evolution:The Nigerian Petroleum Exchange (NipeX) recently turned Ten. In its years of existence, NipeX has made positive contributions to the Nigerian Oil and Gas Industry. NipeX evolved from the Project PACE Campaign. It is indeed one of the surviving legacies of that campaign. Of all the inventions of Project PACE, none seems more impactful on the Nigerian Oil and Gas space as the twin sisters of (NipeX) and the Nigerian Content Development Monitoring Board (NCDMB). While NCDMB seeks to provide opportunity for Wealth creation and domestication of technology, NipeX seeks to infuse transparency and efficiency in the contracting and procurement cycle in the Nigerian Oil and Gas Industry.

Project PACE: Project PACE was initiated by the then Group Managing Director, (GMD) of NNPC Engr. Funsho M. Kupolokun in 2004. The main thrust of the campaign was to place NNPC at par with other National Oil Companies like Petronas of Malaysia, Petrobras of Brazil etc. who are her Contemporaries in terms of ownership, years of existence, performance, service delivery and profit making. It focused on improving systems (processes, skills, value, performance, measurement and training) and capacity building in the Corporation. The acronym PACE stands for: Positioning and Aligning for high performance, Creating appropriate processes and systems for global competitiveness, Enabling and empowering its people.

NipeX flowed out from the Project PACE Campaign and is a Division under NAPIMS. Engr. Funsho M. Kupolokun, who was the visionary founder of NipeX, was traced to his office in Victoria Island Lagos for an

interview in celebration of NipeX at Ten. He opined that Transparency and Efficiency in the conduct of business in the Oil and Gas in Nigeria were the basis for the establishment of NipeX. “There was need for a Nigerian ‘Petroleum Market Place’, an electronic one-stop transaction Centre that ensures efficiency and transparency. That’s what NipeX is all about and that is why we founded it” he stated with an air of infectious conviction.

When we interacted with the Pioneer General Manager of NipeX, Mrs. Uno J. Adeniji, she established the background challenges that led to the birth of NipeX and she narrated thus: “Remember that NNPC through NAPIMS superintends over the Nigerian Government equity share in the Upstream Operations”.

NNPC, on a daily basis, had to contend with challenges of ensuring that the contracting processes with its Joint Venture and Production Sharing Contract (JV/

By: Ogbonnaya A. Kalu

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The former GMD, NNPC, Engr. Funsho M. Kupolukun explaining a point during a session with NAPIMS NEWS crew

PSC) Companies were transparently and efficiently delivered. These challenges ranged from low leverage of technology, resulting in excessive manual paperwork, extended contract processing times and absence of transparency in the selection and award processes. These, sometimes, lingered for over 15 to 24 months. “The huge implication, she lamented, was the soaring cost of projects and loss of time to the Nation and the JV/PSC Companies. There was, therefore, an urgent need to seek out a quicker and cheaper way of doing the business, hence NipeX…” Elaborating further, she said that the primary objective of NipeX was to provide an electronic based portal (platform) for contracting processes for NNPC and its Partners in the JV and PSC arrangement, with a view to: Establishing a Joint Qualification System (JQS) for the Prequalification of Contractors; Reducing contracting cycles from the subsisting 24 months to half of that or even less; Entrenching transparency to the contracting and procurement process as well as Monitoring Nigerian Content performance of both Foreign and Indigenous Companies.

NipeX in its infancy was not without challenges, so we wanted to know what the challenges were like and she responded thus; “The initial challenges were the raising of a dedicated team to operationalise NipeX and Office space to ensure the commencement of Operations. NNPC Top Management was very committed to the project and approved for some of the Project PACE team members to be formally deployed as foundation staff of NipeX. An office complex was secured at 30 Oyinkan Abayomi Drive Ikoyi Lagos. Thereafter, NipeX was good to go.”

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Foundation Staff:The foundation staff that joined Mrs. Adeniji to kick-start NipeX were Engr. Raufu Oyewole Oyedele heading the Electronic Market Place Operations, Mr. Hilary Akpan in charge of the Nigerian Joint Qualification System (NJQS). Mr.Ali Muhammad Zarah, Heading the I.T Department; Mrs. Rose Eshiet in charge of Finance and Services and Mrs. Oritsemeyiwa Eyesan, Heading the Customer Relations and Marketing. These were the respective Sectional Heads that worked assiduously with the pioneer General Manager to lay the right foundation for effective take off and subsequent success of NipeX.

The Power of Synergy:Engr. R.O Oyedele in an interactive session recalled that the initial project scope covered only the e-market place which was limited to contracting and approval workflow in NAPIMS/NNPC.

“We however, learnt that around the same time, the IOCs under the aegis of Oil Producers’ Trade Sections (OPTS) were also working on a prequalified suppliers’ database for the Industry. This was because it was recognized that the prequalification exercise for vendors’ selection usually took a very long time.

NNPC Management saw wisdom in establishing a system that will handle contract process from start to finish. This led to a meeting of all stakeholders to discuss how OPTS and NNPC could synergize in the

Pioneer GM, NipeX, Mrs. Uno Adeniji

Engr. Raufu Oyedele, Pioneer Head of E-Market Section of NipeX, taking the NAPIMS News crew down memory lane

during the interview

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implementation of NJQS.At the end of the meeting the suppliers’ database project was surrendered to NNPC with Achilles Information Ltd, whom OPTS had engaged as their Consultant and adopted as the Industry’s Consultant responsible for building and maintaining NJQS. This was how the NJQS evolved…” he explained.

“…Messrs. Accenture drove Project PACE with NNPC team and sold the idea of an e-market place to NNPC. Accenture developed the e-market place for Petrobras (Brazilian National Oil Company). The Brazilian equivalent of NipeX is called Petronet. Accenture helped to develop the NipeX e-market place which was majorly concerned with contracting and online approval. NJQS was primarily responsible for auditing/prequalifying competent suppliers into the industry database, and this was driven by Achilles…”

In 2005, a combined team of NNPC and Accenture designed and developed the electronic market place system. By December of that year, the e-market place system had become operational. However, prior to the full take off, in the month of August of that same year; a live pilot test of the system was demonstrated to the Management of NNPC using an SPDC tender with the Reverse Auction Option in the commercial phase. The bidding exercise was held in SPDC office in Port Harcourt. The event turned out to be a huge success as vendors participated from different locations in Nigeria while NNPC Management watched it live in Abuja and Lagos simultaneously. Having achieved that feat, NipeX was considered to have taken off…” recalled Engr. Oyedele.

Mr. Hilary Akpan, the pioneer Head of NJQS stated that the NipeX vision was a paradigm shift aimed at

Collocation:In 2008, the NipeX Steering Committee, chaired by the NNPC GED E&P and comprising of all the stakeholders (NNPC and IOCs), agreed to collocate the data Centre, which is situated in Madrid, Spain and London, United Kingdom with the intention to eventually relocate to London..

The collocation program was to address business continuity and disaster recovery concerns as well as upgrade the NipeX System from SAP SRM 4.0 to SAP SRM 7.0, Procurement for Public Sector (PPS).This program was divided into three project deliverables (i) IT infrastructure supply and installation of SAP, SRM 7.0. (ii) PPS Re-implementation and (iii) Data Centre build. These are to be implemented respectively by HP Nigeria and SAP Nigeria. The project plan was such that the SAP SRM 7.0, PPS Re-implementation project was dependent on the successful completion of the IT infrastructure supply and installation project.Pioneer Head of NJQS, Mr. Hilary Akpan explaining some

points during the interview

Pioneer Head of IT Section, Mr. Ali Mohammed Zarah, explaining some points during the interview session

bringing Oil and Gas contracting and procurement business in Nigeria at par with what obtains in other advanced Countries of the world. The whole essence he said “was to bring in synergy, transparency and cost reduction”.

The entire NipeX configuration is Information Technology (IT) based and from its inception, Accenture and the NNPC team worked together to deliver NipeX. Mr. Ali Muhammad Zarah headed the IT Department from the beginning till 2015, he was the longest serving member of the pioneer staff of NipeX, and so the man Zarah was one of the key elements of NipeX’s success story.

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Future Tech SCI Ltd, a renowned United Kingdom based data Centre service provider, delivered a brand new data Centre design and a new data Centre supporting infrastructure. The NipeX London Data Centre was successfully commissioned by the Group Managing Director of NNPC, Dr. Joseph Thlama Dawha July, 2015.

Business Potential:Currently, NipeX has about Eight Thousand (8000) registered suppliers on its NJQS portal. The current General Manager, NipeX, Dr. Kanayo Adesina Odoe affirmed that NipeX has the capacity to provide joint qualification services not just to the Oil and Gas Industry in Nigeria but to all sectors of the Nigerian Economy. This includes all Government Establishments involved in contract award and any aspect of business for that matter. “We have the capacity to serve the Nigerian business community and beyond. Really, I see NipeX growing to become the Google of business in Nigeria, West Africa and indeed Africa; where people come for any business consultancy. The Nigerian Public Procurement Act and indeed any Government contract award could be speedily and successfully handled by NipeX…” he announced confidently.

Having successfully migrated from SAP SRM 4.0 to SAP SRM 7.0, the NJQS operation is made easier and faster. It currently hosts the Brass LNG ICT Services and has the capacity to host more ICT Services to prospective Clients.

NipeX General Managers:The Nigerian Petroleum Exchange, NipeX has had four substantive General Managers.

Mrs. Uno J. Adeniji was the pioneer General Manager of NipeX who laid a solid foundation. The second substantive GM was Dr. Iheanyi Ohaeri, and then followed by Mrs. Toritseju U. Okanlanwo and currently Dr. Kanayo Adesina Odoe.Each General Manager has added value and built on his or her predecessor’s work to take NipeX to higher levels.

The NipeX original vision has been kept sacrosanct, with each General Manager making incremental efforts toward the achievement of that big dream; the Nigerian Oil & Gas business running on Transparency, Efficiency and Profit.

As can be seen from the above narrative, there’s no doubt that the Nigerian Petroleum Exchange (NipeX) can be a self-sustaining and profit making procurement business that provides value to businesses beyond the Oil and Gas Industry.

What Next NipeX?Having successfully launched the SAP SRM 7.0, we asked the GM NipeX Dr. Kanayo Odoe, where NipeX is headed next. He responded thus; “We have the short term and the long term plans. Our short term goal is to intensify our service delivery structure and have a robust infrastructure base in our London Office and in Lagos Nigeria. We will work assiduously to provide adequate buffer for our data. Should anything happen to our London Centre, we will not suffer business loss. We will also invest more in our NipeX staff. This is in line with the Honourable Minister of State for Petroleum Resources (HMSPR) and the GGM NAPIMS vision of training and retraining our staff to be in good stead to compete and deliver quality service to the Industry. We will do our best to take the glory of NipeX to her higher heights. We heard it was once called the London Office of NAPIMS. The glory must keep shinning even brighter.

When we have succeeded in doing these, then our long term goal would just be an easy reach. The long term goal is for NipeX to be the Google of Africa, develop systems and softwares, patent them and create wealth for NNPC and for Nigeria.”

NipeX at Ten, a decade of Vision, Toils and Triumphs. NAPIMS NEWS wishes NipeX continuous success!!!The current GM, NipeX, Dr. Kanayo A. Odoe expounding his

vision for NipeX during the interview

A cross section of the dignitaries at the fiesta wactching proceedings with the Hon. Minister’s Representative, Engr. Dennis Ajulu

Consultant to the Ministry of Petroleum Resources on Refineries, Engr. Dennis Ajulu, delivering the speech on behalf

of the Hon. Minister of State for Petroleum, Dr. Ibe Kachikwu at the closing ceremony

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DR. KACHIKWU ASSURES VICTORY OVER THE PRESENT CHALLENGES IN THE OIL & GAS SECTOR…

The Honourable Minister of State for Petroleum Resources (HMSPR), Dr. Emmanuel Ibe Kachikwu has averred that the Nigerian Oil &

Gas Sector will ultimately triumph over the crucibles of its present challenges.

The Honourable. Minister made this remark during the Nigerian Oil & Gas Industry Games held recently in Lagos. Speaking at the closing ceremony of the Games, Dr. Kachikwu ably represented by the Consultant to the Ministry of Petroleum Resources on Refineries, Engr. Dennis Ajulu, observed that if the Nigerian Oil & Gas Sector was able to organise a game of this magnitude at such trying period as this, then it means that the Sector is getting courageous and has the capacity to surmount the present challenge of low price caused by the glut at the International Market.

The Nigerian Oil & Gas bi-annual Games which started in Eket in 1986 entered its 16th edition this year. This year’s tournament recorded the participation of nine Companies of the Industry: NNPC, Shell, Chevron, ExxonMobil, NLNG, DPR, Total, PTI, and NCDMB. The tourney boasted such games as, Scrabble, 8 Ball Pools, Athletics, Basket Ball, Squash, Table Tennis, Swimming, Tennis, Golf and Football.

Shell emerged overall winner with Fourteen Gold, Fourteen Silver, and Nine Bronze to beat the defending champions and Industry giant NNPC to a close second on the table with thirteen gold, fifteen silver and eighteen bronze.

By: Ogbonnaya A. Kalu/David Olorunleke

NNPC Contingent during the March Past of 2016 NOGIG

NNPC Table Tennis star (L) slugs it out with a SHELL opponent during the finals

Hon. Minister of State for Petroleum Resources Representative, Engr. Dennis Ajulu presenting a trophy to the NNPC Table

Tennis Captain, Mr. Keye of NGC, LOD Egbin

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The individual games played had overall winners such as Chess (Chevron), Scrabble (Shell), Lawn Tennis (NNPC), Swimming (ExxonMobil) Basketball (Shell), Eight Ball Pools (DPR), Golf (DPR), Squash (Shell), Athletics (NNPC), Table Tennis (NNPC).

The sports festival was wrapped up with the football finals played at the State owned Teslim Balogun Stadium Complex. The finals saw the giant of the Industry (NNPC) whip their rivals (Shell) 3-0 giving the football game defending champions the glory of retaining the trophy. Meanwhile, the third place match for the tournament was played earlier in the day where NLNG and Total had to slug it out with each other. NLNG emerged victorious on penalty shoot outs after a hundred and twenty minutes of play with a one all draw score line.

Other events such as March Past and Athletics were performed to complement the program of the day. Athletics which took place during the half time of the football finals saw NNPC and Shell win the Women’s and Men’s 100m finals respectively. Likewise, in the 4×100m, Shell and NNPC won the Women and Men’s category respectively.

In his closing remarks, the HMSPR commended participating Companies for their contribution and expressed satisfaction with the efforts made by the Organizers in making the occasion a success. He also, congratulated Shell for her doggedness in emerging as the overall winner of the competition and went on to commend other participants for their admirable display of sportsmanship.

Also speaking at the event, the Honourable Minister of Sports and Youth Development who was represented by the Permanent Secretary of the Ministry, Mr. Chijeka Onha promised to partner with Organizations who may want to sponsor sports development at the grassroots level.

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NMGS FELLOWSHIP INVESTITURE OF TWO TOP MANAGEMENT STAFF OF NAPIMS

(L-R): The GGM, NAPIMS, Mr. Dafe S. Sejebor, MD, Nigerian Gas Marketing Company, Dr. M. D. Bako and Prof. Rahman of

Obafemi Awolowo University pose for pix

(L-R): President, NMGS, Prof. Olugbenga Okunlola, handing over the Plaque and Certificate of Fellowship Award to the

GGM, NAPIMS, Mr. Dafe S. Sejebor

(L-R): The MD, NGMC, Dr. M. D. Bako and GGM, NAPIMS, Mr. S.

Sejebor cutting their investiture cake at the reception dinner

(MD, NGMC, Dr. M. D. Bako proudly displaying his Plaque, Medal and Certificate after his investiture as a Fellow of the Nigeriann Mining

and Geosciences Society

The GGM, NAPIMS, Mr. Dafe S. Sejebor (centre) poses with his Plaque, Medal and Certificate. Flanked to his left by the GGM, MMD, Mr. Musa Lawan and to his right by

the Technical Assistant to the GGM, NAPIMS, Mr. Ida Ekereke

The GGM, NAPIMS, Mr. Dafe S. Sejebor and MD, NGMC, Dr. M. D. Bako pose with their Investiture Cake and surrounded by Management and staff of NAPIMS

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NAPIMS CELEBRATES INNOVATION IN PIX

2016 NOGIG

Dr. M. D. Bako representing the GGM, NAPIMS (centre) poses with four of the six awardees of NipeX; to his left are Miss Sola Ilori Olasumbo and Mr. Amito Kenechukwu Charles and to his right are

Mr. Chukwudozie Chuma Paul and Mr. Okeke Maduabuchi Chukwukpeberem

Some of the NNPC Contingents in a group pix with their Medals(L-R): O. I. Okonji (Mrs.) of Staff School, Port-Harcourt; T. S.

Osholanke (Mrs.) of Medical Services, Mosimi; A. Adefiseso (Mrs.) of CHQ, Abuja and F. Adjeke (Mrs.) of WRPC, Warri

Jubilant players and supporters of NNPC Soccer Team, celebrating their victory over the Shell Football Team in the 2016 NOGIG

Soccer finals

(L-R) Messrs: Chukwudozie, Okeke, Sola-Ilori, Amito proudly displaying their hard won plaques of GGM, NAPIMS

award

Management of NipeX proudly pose for a group photograph with four of the innovative minds

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Mr. Austine Edegbe (son of Mr. Frederick E. Edegbe of the GM, Services Office,

NAPIMS) poses with his lovely wife Ivie, during their white wedding

Mr. Oyedeji Hammed of PAD, NAPIMS and his lovely wife, Mrs. Oyedeji Rukayat

in a lovely pose during the traditional wedding

Mrs. Fatimah Ado Paki (daughter of Engr. Nuhu A. Paki, DM, Civil Engineering of

JV. Ops. Facilities of NAPIMS) poses with her husband, Mr. Aliyu Bilya Sanda during

thwir wedding

GM, JV. Ops., NAPIMS, Mrs. Catherine Iheme joyfully cutting her birthday cake

Mrs. Rebecca Edak Oshunluyi of Human Resources Dept., happily cutting her

retirement cake

Mrs. Comfort Amadi of JV. Ops., NAPIMS, being assisted by her husband,

Chief Charles Amadi to cut her retirement cake

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NAPIMS CELEBRATES INNOVATION

The Management and Staff of NAPIMS recently, gathered to recognise,

reward and celebrate Innovation. This was on the occasion of the GGM NAPIMS’ Award of Excellence to deserving Staff of NipeX who brought Creativity and Ingenuity to bear on their job that saved the Corporation some huge amount of money.

In his opening remarks, the Group General Manager, GGM NAPIMS, Mr. Dafe. S. Sejebor, ably represented by the General Manager, Frontier Exploration Services, Dr. Mazadu Bako reminded staff that this was in line with the GMD’s Vision which emphasizes that Creativity, Innovation and Excellence shall be rewarded. He challenged other staff to borrow a leaf from the six NipeX Staff who were the pioneer recipients of the maiden Award.

He said this kind of gesture will be periodic because “for us to get


to where we should be, excellence and creativity must be celebrated to encourage others…”

What did these six wise minds do to deserve such honour? NipeX faced a herculean task of handling forward auction for the bidding and sale of some NNPC assets (Aircrafts). NipeX system at that time only had the reversed auction functionality which is for buying of Goods and Services. The challenge was how to invent a forward

structure to fit into the reverse auction facility to accommodate a selling model as well as develop the training and user manual for the process. The second challenge was how to develop and deploy standard data base software to pre-qualify NNPC suppliers; these were to be done within two weeks. There was no answer to these challenges. Even if solutions were to be outsourced, it will take nothing less than six months

(L-R): GM, Services, Mr. Abubakar N. Mohammed; GM, FES, Dr. M. D. Bako; GM, FAD, Mr. Ayuba Abbah; GM, NipeX, Dr. Kanayo A. Odoe and GM, Legal, Mrs. Toyin Adesanya, during the GGM Award of Excellence to the six NipeX staff

(L-R): Manager, Admin Services, Mrs. Philo Okonkwo; GM, Gas, Mr. Hilary Akpan and GM, Services, Mr. A. N. Mohammed, commending the feat of the six great minds of NipeX

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The GGM NAPIMS challenged NipeX to proffer solution urgently.

A group of ingenuous young minds came together, brainstormed and within one week, the feat was achieved.

The six innovative staff were Mr. Okeke Maduabuchi Chukwukpeberem, Mr. Amilo Kenechukwu Charles, Mr. Joseph Innocent Gandapa, Mr. Otaro Stephen, Mr. Chukwudozie Chuma Paul and Mrs. Sola-Ilori Olasumbo all NipeX staff.

NAPIMS NEWS congratulates these outstanding staff. NNPC and indeed Nigeria teem with budding talents that, given the right motivation could place this country on world spot for good reasons. Let’s look inwards.

to ratify. Time was of essence. “The general consensus was to let NAPIMS Management know that NipeX system was on SAP and

continued from previous page SAP system does not have forward auction functionality…”Mrs. Ann Olumide, Manager. Customer Relations and Marketing (Mgr. CRM) narrated.

Mr. Okeke Maduachi Chukwukpeberem, receiving his Certificate of Award from the GGM Representatives,

Dr. M. D. Bako

A cross section of the Audience at the occasion

Mr. Amilo Kenechukwu Charles being honored with the GGM;s Award by the GGM’s Representatives, Dr. M. D. Bako

Mr. Paul Chuma Chukwudozie receives his Plaque of GGM’s Award from the GGM’s Representatives, Dr. M. D. Bako

Mrs. Sola-Ilori Olasumbo receiving her Certificate of Award from the GGM’s Representative, Dr. M. D. Bako

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NipeX MAKES NOTABLE PROGRESS

The Nigerian Petroleum Exchange (NipeX) is a Division of the National Petroleum Investment Management Services (NAPIMS). NipeX

is an Electronic Tender Processing Platform with a comprehensive Supplier Database from where buyers in the Nigerian Oil and Gas Industry source for suppliers to attend to their high profile tenders.

It is with pleasure that we announce the remarkable developments in the NipeX Division in recent months. Within the last couple of months, NipeX recorded three notable achievements in quick succession. Firstly, five new sets of Third Party Services, beside the traditional ones, were deployed. These were: Portal Advert, Supplier Verification, Pre-qualified Supplier Sourcing, Tender Processing and Server Hosting. Secondly, NipeX developed the sixth service which could address needs from the Corporation’s Top Management. The sixth service is an online Forward Auction Platform that will facilitate the disposal of a Company’s boarded items with a guarantee for maximum profit from the exercise/sale. This service can also be deployed to other Organisations that need to sell their assets.

Another laudable achievement took place in the last quarter of 2015 as NipeX deployed a new platform for Tender Processing in the Upstream sub-sector of the Nigerian Oil and Gas Industry. The new platform, SAP-SRM 7.0 Public Procurement System (PPS) is an improvement on the former one in many aspects. It is more robust in terms of security features and capacity. The new Platform is also more user-friendly and efficient in view of processing speed, as it accommodates the simultaneous submission of both technical and commercial bids. On 26th January 2016, NipeX made the first commercial use of the new SRM 7.0 Tender Processing Platform when it hosted tender for Nigerian Petroleum Development Company (NPDC).

Other benefits of the new platform include: enhanced collaboration that makes the interchange of data among parties to a typical tender a lot easier. The possibility of creating a Group Shopping Cart on the platform is also a significant improvement that allows for continuity within Operators community. This functionality enables an authorized user to progress a procurement process on behalf of a colleague in the Operators community.

Another milestone achieved, in September 2015, was the redesign of the NipeX website to guarantee increased user-friendliness and a more aesthetic feel. The new website address is www.nipex-ng.com

The supplier registration process on the NipeX system has also changed drastically. Potential suppliers are expected to visit the NipeX system, click on the ‘Download’ Tab beneath the home page and click on New NJQS Registration Process. A page containing a step-by-step guide on NipeX registration process will open up.

In view of the above changes, NipeX has commenced an extensive Stakeholders’ education program which will cut across the Approvers, Operators and Suppliers Communities. The education will focus primarily on how to use the new system.

With these and more upcoming initiatives, NipeX is poised to meet and exceed its customers’ expectations.

NipeX, delivering value to all stakeholders.

Mr. Ifeanyi Pius of NipeX (3rd from left) attending to some NAPIMS staff during their recent workshop while Mrs. Rebecca

Alicha of NipeX watches

Some NAPIMS staff trying their hands on the Bulls eye game during one of NipeX Exhibition

Manager Customer Relationship and Marketing, Mrs. Ann Olumide seated far right with her colleagues during the NipeX Exhibition

Week in NAPIMS Head Office, Ikoyi

By: Sokey Gaibo

NAPIMSnews18

...to be continued in the next edition

Subsea Boosting Technologies - Tool to Achieve Production Target at Dwindling Oil Price

Subsea boosting is one of the cutting edge tools currently been used by Oil and Gas

Industry to open new opportunities and achieve more-effective exploitation of offshore Oil and Gas Reserves.

In order to achieve the current production target of 2.4 million barrels of oil per day (bopd) in 2016, we need to leverage on the existing cost effective proven technologies in the Industry since the option of drilling additional wells to meet the production target is no longer attractive as a result of falling Oil price.

Subsea boosting is a proven technology capable of increasing production rates and improving oil recovery from the reservoir. This technology has been applied in several projects globally. In West Africa, this technology was employed to boost production

Figure 1: Production System Curve with Subsea Boosting Potential

in the Topacio field located offshore Equatorial Guinea. Two (2) Subsea Multiphase Booster Pumps, commissioned in August 2000, have operated continuously and boosted oil production by 15,000 bopd, thus illustrating the benefits and reliability of subsea boosting technology.

Subsea boosting is addition of pressure/energy to the well stream in order to transport it from the wellhead to topside. The primary means by which oil and gas from the reservoir move to the topside is through the natural energy of the reservoir (reservoir pressure). However, this energy may not be sufficient to overcome the pressure losses due to hydrostatic pressure (caused by the height difference between the wellbore and topside), the frictional losses in the production tubing, subsea equipment (such as Christmas trees, choke, valve, etc.), flow line

and risers. When this occurs, the oil and/or gas would not flow to the topside. This phenomenon can be illustrated with an Inflow/Outflow Performance Curves (figure 1). The well natural production is determined by the intersection of the reservoir inflow curve and tubing/flow line resistance curve (outflow). Installation of subsea boosting pumps will increase the well stream pressure and overcome the pressure losses. Figure 1 shows a natural well production and increased production as a result of subsea boosting.

Subsea boosting offers the opportunity to reduce the backpressure on the reservoir, enable a lower bottom hole flowing pressure and in the process increase the production rate from the reservoir. Consequently, more oil and gas are produced from the reservoir in the process thereby improving production economics. It enhances flow management and also offers the opportunity to develop reservoirs that were once regarded as uneconomical because the petroleum accumulation is ‘stranded’ in a location which makes accessibility difficult. Subsea boosting makes it possible to transport the fluids over long tieback distances, with potential reduction or elimination of production infrastructure such as platforms and separation facilities equipment. This would lead to development of hydrocarbon reserves with lower capital and operating costs.

By: Engr. Adedayo Akanni

NAPIMSnews19

OIL PRICE: THE ERA OF ECONOMIC RENT SEEMS TO BE OVER FOR OIL

PRODUCERS

OIL PRICE: THE ERA OF ECONOMIC RENT SEEMS TO BE OVER FOR OIL

PRODUCERS By: Esan Mascot Ogunjemiyo

What is Economic Rent?According to Investopedia, Economic Rent refers to excess payment made for a factor of production over and above the amount expected by its owner. It is the positive difference between the actual payment made for a factor of production (such as land, labour or capital) to its owner and the payment level expected by the owner, due to its exclusivity or scarcity. It arises due to market imperfections; it would not exist if markets were perfect, since competitive pressures would drive down prices. Economic rent should not be confused with the more commonly used “rent,” which simply refers to a payment made for temporary use of an asset or property.

OPEC’s Commitment to Fair PricesIn the first quarter of year 2000 OPEC adopted the $22-$28 price band for its basket of crude. A lot of market and economic research must have gone into the determination of this price band in accordance with the Organisation’s cardinal objective to unify Petroleum Policies among

Member Countries, secure fair and stable prices for Petroleum Producers; and ensure efficient and regular supply of petroleum to consuming nations.

OPEC achieved it objective using production quota and spare capacity to keep prices relatively stable within the set band between year 2000 and 2004.

However, in 2005, prices of oil continued to soar due to global increase in demand, fueled by crisis in Oil Regions, weak Dollar, supply disruptions and speculative trading. Prices skyrocketed without

any significant intervention.

International Oil Companies (IOCs) In FocusThe bulk of the income earned by international Oil and Gas Companies (IOCs) and Major Oil Exporting Countries (MOEC) between year 2005 and 2014 was by Economic Rent.

This phenomenal profit also influenced the wages of workers of IOCs and the prime service providers to the Industry. Average wage of an employee working with the IOCs in OPEC Nations


political and economic handlers of these countries had their budget projections optimistically made with the existing Oil prices not considering that price of Oil like any other commodity could and do fluctuate.

Norway and UAE in focusOn the flip side, Countries like Norway and the Persian Gulf (UAE, Saudi Arabia, Kuwait and Qatar) made lot of saving and invested heavily in infrastructure and services Industry. They created investment vehicles popularly called sovereign wealth funds to acquire valuable assets all around the world. Some western analyst classified such funds as shadow investors. As at 2014, Saudi Arabia had over 700 Billion Dollars in saving.

Current realitiesThe era of high economic rent seem to be over for the Oil and Gas Sector. No thanks to ‘Shale Oil’ revolution, improved efficiency in the performance of internal combustion engine and significant investment/ innovation in alternative energy sources.Every producer should therefore restructure for long term survival and adaptation to the current realities. I strongly feel that the global economy could not sustain crude oil prices above 60 dollars. The recession of 2008-2009, characterised by collapse of large corporation such as Lehman Brothers and the Mortgage bubble was a clear signal.

It is worthy to note that the world is gradually moving away from the era of Oil economy which has lasted for over 100 years. Even at the current bearish Oil market, Tesla reported that its Model 3 electric car already has 300,000 units pre-order.

NAPIMSnews20

was linked to economic rent, as his next best paying alternative job will offer much lower wage. Oil and Gas trade Unions through collective bargaining got a fair share of the economic rent for their members.

Unfortunately, the high economic rent enjoyed by IOCs/Producers and their host Government mainly OPEC Members, did not translate into efficiency. Unit production cost continued to increase, human resources were under-utilised when compared with other Sectors of the Economy like Telecom, Manufacturing and Banking. The Industry entered into diminishing returns phase. Every technology improvement in the Oil and Gas

Sector usually comes at very high premium. Demand for Oil soared but output remained relatively stagnant. OPEC Members were filled with the confirmation bias believing the ‘black gold’ is worth at least USD100 a barrel and that the bull market will continue for decades.

Nigeria in focusPolitical Office holders at all levels, top Government appointees and suppliers of the dollarized Oil field Equipment and Services also ripped huge economic rent during the price boom. All through this high price regime, some OPEC Member Countries were unable to add value to the barrels of Oil produced within its Sovereignty; not even the quantity for local consumption were refined. The

References: www.opec.com, www.investopedia.com

continued from previous page

NAPIMSnews21

INSURANCE AND THE NAICOM POLICY OF

“NO PREMIUM NO COVER”

Individuals and Businesses are exposed to all kinds of risks such as explosions, fire, theft, oil spillage etc., in the course of their existence.

Risk exists because we cannot perfectly foresee the future or we are unable to control the occurrence of certain events.

Insurance can simply be defined as a guarantee of compensation for specified loss, damaged items or death in return for a payment or Premium.

Premium is the price paid by the buyer of Insurance for the risk transferred. This arrangement is contractual and is referred to as Insurance Contract which is legally binding. The Premium, therefore, is the valuable consideration that must be present for the contract to be valid or enforceable.

The importance of premium payment in an Insurance Contract is fundamental to give legality to the Contract. The premium paid is used in meeting obligations, such as claims payment for risk covered, the building of reserves for future growth, payment to Reinsurers for accepting a proportion of the risk and finally to meet the overheads in managing and administering operations of the insurance firms and

stakeholders.

“No Premium, No Cover” PolicyInsurance generally in Nigeria is not well accepted. People and Businesses mostly insure Life and Assets when compelled by law, such as Vehicle Insurance (which is statutory), Group Life or the Nigeria Social Insurance Trust Fund (NSITF) contribution or as a condition for a transaction, either loan or counterpart funding for a project.

The awareness and the need for insurance is not well entrenched in the Nigerian polity.

The history of non-payment of premium over the years even when cover is provided by the Underwriters (i.e. the Insurers) cannot be over-emphasised. This has left a large unimaginable debts and receivables in the balance sheet of the Insurance Companies, which has in turn, eroded assets values over the years bringing to question the solvency of Insurance firms and their contribution to Gross Domestic Products (GDP). This brought about the need for the enforcement of the “No Premium, No Cover” Policy which has been part of the Act and its Regulations, by the National Insurance Commission (NAICOM) - the Insurance Industry Regulator.

‘’No premium, No Cover ‘’ simply means no granting of cover or issuance of any insurance policy as contract document by an Underwriter (Insurer) until the premium is paid. However, the Broker through whom premium is usually paid may issue a Credit Note to the insuring Firm or Company on receipt of the Premium while awaiting the remittance of such monies to the insurer within a 30-day period.

A breach of the ‘’No premium, No Cover‘’ regulation and its attendant guidelines could result in penalties ranging from imposition of fines to the total revocation of the licenses of the offending parties. Compliance is strictly monitored and observed by NAICOM to avoid and prevent breaches.

The enforcement of the “No Premium, No Cover” Policy has enhanced Insurance businesses in Nigeria and has brought growth, solvency and reliability in the Insurance Industry with a positive contribution to the Gross Domestic Product (GDP).

This has also provided employment opportunities to Nigerians and placed the Nigerian Insurance Sector in a position to competitively relate with its global counterparts.

By: Ibrahim Mohammed

NAPIMSnews22

SOME HEALTHY FOODS NURSING MOTHERS CAN MAKE FOR BABIES &

TODDLERS - Few tips in getting

it right.

Most working class mothers are usually saddled with the responsibility of buying so much canned foods for babies and

toddlers. They forget that most babies start demanding for natural food from six months after birth. The fact remains that irrespective of how fast and convenient these canned foods are, some children will still refuse to eat them. This naturally makes every mother feel bad; especially when busy mothers intend to use them as convenient alternatives. However, there is clear evidence to back up the argument that home-made baby food is better than canned ones.

We have a number of companies in Nigeria that are selling baby foods in packs. This innovation has simply complemented the huge number of imported baby food found in markets and supermarkets. However, the big risk lies in the uncertainty of the hygienic condition under which these foods were handled and their expiry dates.

As babies’ immune systems are usually not so strong. The best recommendation for your child or toddler is to make your baby food by yourself. Though most working mothers will say it is so much work but it’s worth it if you really want to ensure that your child is given the best.

In introducing solid foods to your baby, it is very appropriate to start with fruits and then gradually move to other Nigerian nutritious meals highlighted below.

In relating with nursing mothers within the Organisation, I have had to respond to Questions and Complaints like:1) What can I give my baby to make him or her fat?

2) I gave my baby his or her meal and the baby couldn’t Swallow it. The baby chokes all the time.3) My baby just refuses to eat anything4) My baby is skinny because I am a working mother. No time to adequately feed my baby. 5) My baby only eats when I am there. Nobody can feed my child for me6) My baby hates cereals and baby milk7) Is it because I have stopped breast feeding my Baby that he/she is doesn’t want to eat any baby food.8) Why does my baby vomit any time he/she is fed?9) How can I prepare other meals that babies can eat?10) How much solid food can I introduce to my baby at this stage?

These are frequently asked questions which I wish to shed some light on.

You can make your baby eat natural food, but it depends on how you prepare them. Most babies can only take very soft meals which requires the patience that most working Mothers do not have the time for. As nursing Mothers, we need to create time to prepare our children’s meal. A 6- 8 month old baby can sometimes eat only one tablespoon sized portion of the prepared meal, the very first time you begin. This is acceptable. As your baby becomes accustomed to eating solids, you will gradually increase the served portion in line with growth. as the baby is growing older.

Remember, breast milk and/or infant formula provide basic nutrition that babies need.


By: Usiholo Esele Judith

NAPIMSnews23

By Dr J. U. Enumah (MBBS,MPH.Dip HSE Mgt.)

supvr. occupational & environmental Health. NNPC Medical Services, Lagos.


BASIC OCCUPATIONAL HEALTH SERVICES IN

NNPC

INTRODUCTION• Over the years, employers have learnt that Productivity and Profitability of any enterprise are directly proportional to the health and wellbeing of the employees.• The cost of maintaining employees’ health around the world is on the rise. Business leaders are being called upon to make changes at the workplace in order to curb rising costs. • Many are turning to workplace health programs to help employees adopt healthier lifestyles and lower their risk of developing costly chronic diseases.• An investment in employee’s health may lower health care costs, insurance claims, or worker’s compensation costs• An effective Occupational Health Program has the potential to both keep healthy employees in a “low-risk” category by promoting health maintenance, and to target unhealthy employees in higher-risk categories, therefore lowering overall health insurance or health maintenance costs

ILO Definition as in Convention 161– OHS Means services Entrusted with essentially

preventive functions and responsibilities for advising the Employer, the Workers and their representatives in the undertaking of the requirements for establishing and maintaining a safe and Healthy Working Environment which will facilitate Optimal Physical and Mental Health in relation to work:– The adaptation of work to capabilities of workers in the light of their physical and mental health– Occupational Health basically means: Impact of work on Health and Impact of health on Work

The Basic Occupational Health Services are an application of the primary health care principles in the sector of occupational health. Primary health care definition can be found in the World Health Organization Alma Ata declaration from the year 1978 as the “essential health care based on practical scientifically sound and socially accepted methods, it is the first level of contact of individuals, the family and community with the national health system bringing health care as close as possible to where people live and work”.

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