Transcript IPMAN (HSE) Presentation - Oil & Gas HSE Conference

1
OVERVIEW
Nigeria oil and gas sector has predominantly
dominated the pivot of Nigeria economy for
decades. The operators are in the
Downstream, Midstream and Upstream
saddled with opportunities and challenges.
The ongoing reform in the oil and gas sector
through the proposed Petroleum Industrial Bill
(PIB) will reshape the totality of Nigeria oil
and gas sector for the benefit of Nigerians.
2
HISTORICAL
BACKGROUND
DOWNSTREAM SECTOR
OF
NIGERIA
Nigeria discovered oil in 1958
The Government built 4 refineries with combined
installed capacity of 445,000 barrel per day
The highest capacity production from these
refineries is 70%, while in year 2000, it was as low as
19.9%.
Major players in the downstream are IPMAN, Major
Marketers and recently DAPPMA, and JEFFTON for
storage operation.
3
CONT. HISTORICAL BACKGROUND
 Downstream sector imported over 70% of PMS, AGO, to feed
the downstream market.
 37 Mega Stations, 12 Floating Satiations belong to NNPC.
 5001Km of Pipeline (700 KM of this for crude oil pipeline
network).
 22 NNPC Storage depots with 2.66 billion litres capacity
(excluding private depots).
 Over 50 private depot owners exist in the downstream.
 Margins are guaranteed to all players though not sufficient to
cover all operation cost with reasonable margin.
 Uniform pricing nationwide through petroleum equalization
fund scheme (AGO already deregulated).
 Government provide subsidies through PPPRA (PSF) scheme.
4
PRESENT REFINERIES
CAPACITY STATUS
PHRC
-
210,00 Bpd
WARC
-
125,000 Bpd
KRPC
Total
-
110,000 Bpd
445,000 Bpd
5
PROPOSED GREEN FILED REFINERIES
Lagos Axis
-
300,000 ppd
Lokoja Axis
-
150,000 ppd
South South Axis
300,000 ppd
IPMAN expect high level of seriousness in
expediting the execution of these projects.
6
STORAGE AND RETAIL OUTLETS
(a)Retail outlet storage capacity
(b) Retail outlets nationwide
=
=
=
=
IPMAN 82%
Major 18%
IPMAN 86%
Major 14%
7
HISTORICAL BACKGROUND OF INDEPENDENT
PETROLEUM MARKETERS ASSOCIATION OF NIGERIA
(IPMAN)
 The Federal Military Government Established IPMAN in
1978.
 Objectively to encourage local participation in the
marketing, distribution and retailing of petroleum
products.
 Presently IPMAN have over 10,000 members with over
24,000 (86%) retail outlets in all the nooks and cronies of
the country.
 IPMAN members also have some retail outlets under the
franchise of major marketers.
 Investment of IPMAN members is in trillions of Naira
 IPMAN is the next to the Federal Government in term of
the largest employers of labour .
8
CHALLENGES OF PETROLEUM PRODUCT
DISTRIBUTION IN NIGERIA (HSE PERSPECTIVE)
We shall look at the above topic under the following
heading
 Pipeline vandalisation.
 Trucking of petroleum products from coastal
depots to hinterland.
 Scarcity of petroleum products in Nigeria.
9
PIPELINE VANDALISATION CHALLENGES
 Pipeline vandalisation/ruptured pipeline.
 Vessel programming leading to long stay of vessel at
discharge point.
 Thousand of lives have been lost to pipeline
vandalisation.
 The recent pipeline vandalisation happened at Arepo
in South West, Nigeria, which claimed 3 lives of NNPC
Staff.
 Fire outbreak at the vandalisation point.
10
SOLUTIONS
Procurement of patrol vans and management of the right
of ways (Row).
Organization of seminars/enlightenment campaign in
communities along the right of ways for IPMAN
Members, PTD members, Tanker owners and host
communities.
Electronic surveillance of pipeline on the long run.
Tackling illegal marketer.
Pipeline integrity assurance (relaying of pipelines).
Creation of anti vandalisation force (ARF) to include all
stakeholder. This force will work on intelligent gathering,
right of way surveillance, partnering with host
communities.
11
TRUCKING CHALLENGES
 Over 70% of petroleum product movement in Nigeria are by
trucking.
 The bad and deplorable state of our road has caused
accidents resulting in loss of thousand of lives.
 Oil spillage arising from accident trucks have claimed several
lives as a result of fire from accident trucks.
 Spillage of petroleum products due to leakages, accident, and
operational malfunction are the primary source of pollution.
 Air pollution emissions of volatile organic carbon from loading
trucks, racks and spilled products.
 Fire outbreaks at filling stations during discharge of Petroleum
products to the under ground tanks particularly during
Harmatan period.
12
SOLUTION
Repair of the over 5001Kms
pipeline network to all the NNPC
depots nationwide for easy,
quicker and safer delivery of
petroleum products to retail outlets
nation wide.
13
SCARCITY OF PETROLEUM PRODUCTS
(CHALLENGES)
 Scarcity of petroleum products occurs when supply
and demand is not at equilibrium.
 Many people chasing few products.
 Loss of lives and various health hazards have
occurred in the past and at present.
 People sleeping in filling stations without consider
the health and the risk.
 Over zealousness of petroleum products customers
to be served first among others has brought unjust
death and injuries to people.
14
SOLUTIONS
 Ensure adequate supply to the market to
withstand any demand pressure.
 Government should encourage private
participation in the petroleum products
importation and distribution by intervention
scheme to arrest any challenges (Finance,
Logistic, Human created blockage etc). This
will provide constant support to the NNPC
at any point of shortfall in supply of
petroleum products.
15
Thanks.
16