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A Review Of The Nigerian Energy IndustryVOL 01 N0. 04 www.sweetcrudereports.comCrudeSweet R E P O R T S

JUNE, 2013

CONTINUES ON PAGE 26

P/35Customs reaffirmscompetency as DI contractsgo sour

PHCN: A metaphor for fraud, misgovernanceNigerians groan under crazy billing, forced contributionsCorruption bane of power sector Dr Amadi Nigeria's Sovereign Fund opens this month with $1bnSWF World leadersChina - $1.21trn UAE - $816.6bnNorway - $715.9bnSaudi Arabia - $538.1bn Singapore - $402bnKuwait - $342bnHong Kong - $298.7bnRussia - $187bn Qatar - $115bnUS - $110bnAustralia - $89bnIf all goes well, Nigeria w i l l s e e f i r s t inves tment o f i t s Sovereign Wealth Fund this month (June), according to the Nigeria Sovereign Investment Authority,

Crude oil theft in Nigeria, now global issue Alison-Madueke

It is now certain that Nigeria would be unable to achieve its dream of attaining 10,000 megawatts, mw, of electricity generation and supply by the end of this year as originally planned by the Federal Government.After years of proclaiming the determination to achieve this dream, confusion set in late last month as the Minister of Power, Prof Chinedu Nebo, and Minister of State in the ministry, Hajia Zainab Kuchi, were at variance for the first time over the plan.Appearing before the Senate Committee on Power, Steel Development and Metallurgy on Wednesday, May 22, Kuchi had given a re-assurance that the Federal Government would achieve the plan of pushing up the level of power generation to 10,000mw by December this year. She told the committee, with Senator Phillip Aduda, as chairman, that power generation will increase from the present 4,500mw to 6,000mw in July and rise further to 10,000mw by December and that activities were on towards the realisation of various projects that would deliver the 10,000mw before the end of the year.A day after, the Minister was to make a u-turn on her pronouncement before the Senate, claiming she was misquoted and that the 10,000mw target would only be feasible by December 2014. Disassociating herself from the alleged pronouncement at the Senate, Kuchi told journalists in Abuja: With the processes that we have put in place, the statistics available to us, and the efforts a t r e f o r m i n g t h e Transmission Company of Nigeria, TCN, we will achieve 10,000mw by December next year.Though we are generating up to 7,000mw of electricity currently, we are only able to wheel 4000mw because of our poor transmission network.

Power 192013 , SweetcrudeReportsJune

evelopers in K e n y a s C o a s t a l Dregion are increasingly turning to solar energy for residential projects due to high cost and erratic nature of power s u p p l y f r o m t h e national grid.A s a r e s u l t , installation of solar

The preferred bidders, who were fully aware of the status of the companies, expressed total confidence in the privatisation programme and were particularly eager to take over the companies having paid the initial 25 per cent of the bid price

Boom for solar power in Kenya

Confusion over10,000mw power targetCHUKS ISIWU

panels on rooftops for new and old projects is growing as clients demand for more reliable energy for heating water.Chloride Exide, a major battery, solar and back-up supplier in East Africa, recently installed and commissioned eight water heating units at Nautilus r e s i d e n c e s , a n e w

development of luxury single storey homes built for sale in Kilifi. T h e h e a t i n g u n i t s instal led are indirect cylindrical tanks which are best suited for salty water, said the Coast area manager of Chloride Exide, Sheikh Margubali.According to him, the region is one of the sunniest

places in South Africa and it was, therefore, necessary that the resource is fully exploited to reduce cost in c o n s t r u c t i n g a n d maintaining residential houses.Margubali said homes could cut 65 per cent in cost of power through use of solar power.

By 2014, we will be able to wheel 10,000mw, by which time the National Integrated Power Project, NIPP, plants would have come on stream.She maintained that the privatisation programme for the Power Holding Company of Nigeria, PHCN, was on course and that the

PHCN power plants would be handed over to the new o w n e r s b y J u l y , a s government was currently s o r t i n g o u t p e n d i n g severance packages of electricity workers.The minister added: The claim that the Minister of State for Power said the generation and distribution companies that were bided for last year could not be handed over to successful b i d d e r s b e c a u s e t h e companies were currently not in good shape is also not

accurate.In fact, at a recent Presidential Power Signing Summit, several agreements on vesting contracts and gas supply agreements were s igned wi th pre ferred bidders.The preferred bidders, who were fully aware of the status of the companies, expressed total confidence in the privatisation programme and were particularly eager to take over the companies having paid the initial 25 per cent of the bid price.

Power plant

Power 202013 , SweetcrudeReportsJune

The chairman and chief executive officer of the N i g e r i a n E l e c t r i c i t y Regulatory Commission, NERC, Dr. Sam Amadi has argued that the major challenge to the development of the nations electricity sector was not inadequate funding as has been bandied o v e r t h e y e a r s , b u t corruption, inefficiency and greed of operators.Amadi, who spoke in an i n t e r v i e w w i t h SweetcrudeReports in Abuja, stressed that more than 80 percent of the challenge within the power sector was due to corruption.He noted that it was f a s h i o n a b l e a m o n g government officials to point fingers at poor funding as the challenge in the power sector, b u t w o n d e r e d h o w Problem of power sector is corruption, not lack of funds NERC boss...Says no need for rural electrification agencyOSCARLINE ONWUEMENYI

judiciously they had applied funds that were made available in the past.He said, What we see going on inside the sector is that opportunistic, corrupt and self-serving people have taken over the whole place, and that is why the sector is where it is today. And it cannot change if t h e r e g u l a t o r i s n o t strengthened and given the free-reins to perform".According to him, the only way corruption could be uprooted within the sector is to empower the regulatory

agency, adding that the sector requires a regulator that is corrupt-free, firm, fair and not serving the interest of elements in the government.He maintained that any attempt to undercut the regulator will further throw the sector in chaos. For me, proper funding is the least of the problems; first ensure that there is prudence and efficiency in the system, and inst i tute performance benchmarks for the various sectors.

"Furthermore, there is need to have clear-cut rules and regulations, with an empowered regulator to manage expectations in the sector. All of these come before ta lk o f proper funding, he stated.Amadi further stressed the need for the 11 distribution companies, DISCOs, to be given more incentives in the form of financial support and matching grants from state governments to extend their services to rural areas of the country where there is no electricity, arguing that if that was done, there would not be need for creation of the R u r a l E l e c t r i f i c a t i o n Agency, REA.He said that the concept of having an agency based out of Abuja and dealing with rural communities was not pragmatic and would yield more bureaucracy than e l e c t r i c i t y f o r t h e communities.According to him, We

should reconsider whether we need a rural electrification agency. Granted, the Act p r o v i d e s f o r a r u r a l electrification agency, which has been attended with a lot of debate even before we came in as commissioners of NERC. But, my opinion is that there are more proactive ways to go about the issue of rural electrification. I m e a n , w e h a v e distribution companies, which are also mandated by law to ensure that electricity reaches the rural parts of the country, and what these DISCOs need is l i t t le incentive so they can perform this function effectively. If they are incentivised and they do their jobs, you dont need a rural electrification agency.He added that, When you have a DISCO in Abuja, for e x a m p l e , p u t t i n g transformers and delivering electricity in rural Kwali, that is rural electrification. It does not have to be a centralised agency located in Abuja trying to transmit e l e c t r i c i t y t o r u r a l communities scattered all over the country. This is not right when you look at the bureaucracy it will create, the cost implications, and the propensity for corruption.Such financial incentive, he noted, should be given through an independent regulatory body such as NERC to ensure proper supervision and monitoring.O n t h e q u e s t i o n o f application of renewable energy in the country, the NERC chief executive noted that his commission has already come out with a template for the adoption and use of renewable energy in the country.We have a framework for licensing renewable energy , and we are presently working on a special tariff structure f or renewable energy . However, we appreciate that renewable energy is quite expensive and cannot be applied expansively for generic use.We have to be careful that the application of renewable energy programmes does not crowd out the need to expand and improve our conventional energy resources. This is because even for countries that have long embraced renewable energy, it is mainly used as a supplement to other conventional energy forms. It is only used as a top up energy resource to complement what they already have in the form of hydro, thermal or nuclear, Amadi said.

What we see going on inside the sector is that opportunistic, corrupt and self-serving people have taken over the whole place, and that is why the sector is where it is today. And it cannot change if the regulator is not strengthened and given the free-reins to perform

Wind and solar energy

Th e N i g e r i a n E l e c t r i c i t y R e g u l a t o r y C o m m i s s i o n , NERC, has said that its recently introduced Credit Advance Payment for Metering Implementation, CAPMI, scheme will remove the current estimated billing system practiced in the power s e c t o r a n d e n t r e n c h appropriate billing as a culture within the sector.N E R C a n n o u n c e d t h e c o m m e n c e m e n t o f t h e implementation of the new electricity metering scheme last month.The commission directed all the electricity distribution companies of the Power Holding Company of Nigeria, PHCN, to promptly commence implementation of the scheme, which is aimed at fast-tracking the deployment of meters to customers. Specifically, the CAPMI is a measure by NERC to close up shortfalls in metering of eligible electricity consumers b y P H C N d i s t r i b u t i o n companies as a result of their f a i l u r e t o a c h i e v e comprehensive metering of consumers in the power sector within an 18 month period stipulated by NERC. This failure together with c o n t i n u e d c o n s u m e r s ' complaints and dissatisfaction with the current estimated billing system practiced within the sector pushed NERC to introduce the new scheme. The scheme provides a platform for willing customers to pay the cost for meters provided by the distribution companies into a dedicated account jointly managed by the companies and meter vendor/installers. It is expected that customers will have meters installed at their preferred locations within 45 days by such vendor/installer that has been accredited by NERC once payment has been confirmed. In a statement, NERC chairman, Dr. Sam Amadi, stated that the cost of the meters was arrived at using the standard market price plus the most eff icient installation costs. The statement by Assistant General Manager, Media of the commission, Maryam Abubakar, quoted Amadi as d i s c l o s i n g t h a t t h e distribution companies had submitted data to this effect during the review of the Multi-Year Tariff Order, MYTO, as well as review of prices s u p p l i e d b y l o c a l manufacturers of meters.It is expected that customers will have meters installed at their preferred locations within 45 days by such vendor/installer that has been accredited by NERC once payment has been confirmed

Power 212013 , SweetcrudeReportsJune

NERC says new metering scheme will ensure appropriate billing

According to him, NERC had followed a comprehensive due process by first advertising and inviting the Bureau of Public Procurement, BPP, to supervise the process of certification based on the metering code before selecting vendors and installers that will participate in CAPMI.

Consultations were also held with various stakeholders, including preferred bidders, wou ld -be vendors and installers and distribution companies as well as the financial institutions that will participate in the scheme to agree on the framework and logistics of implementing

it. Also , the commiss ion emphasised on preference for local firms while selecting successful applicants as a way of localising the process and promoting local content in the sector, Amadi said. With the coming into effect of the CAPMI, NERC also o r d e r e d t h e P H C N distribution companies to commence immediate supply o f meters pa id for by customers dating back to January 2011. "It is regrettable that customers paid for meters and they were not supplied with the same months even years after. "This is a double jeopardy considering that meters ought to have been supplied to them free once they paid bills. The commission had to take January 2011 as deadline for a n u m b e r o f r e a s o n s .

Nevertheless we are working on measures to ensure that customers who paid before January 2011 are metered within the shortest possible time," Amadi said. The order is to be complied with in 44 days with failure expected to attract sanction on the chief executive officer of the defaulting distribution company. In June 2012 , NERC introduced a new set of electricity tariffs which provided that meters would be supplied for free for customers. It set a goal of 18 months to meter the 2 million customers without meters. But, nine months after the target was set, not a single meter of the identified 2 million deficits in the country had been deployed. T h i s h a s m a d e t h e introduction of an alternative-self metering plan, dubbed CAPMI, to become necessary.

New power meter

Th e F e d e r a l Government has a p p r o v e d t h e institution of an a l t e r n a t i v e funding mechanism for the successor companies of the Power Holding Company of Nigeria, PHCN, according to P e r m a n e n t S e c r e t a r y , M i n i s t r y o f P o w e r , Ambassador Godknows Igali. The PHCN successor companies are the power generat ing companies , GENCOs, and distribution companies, DISCOs, created from the unbundling of the national power monopoly.The move by the Federal Government is to give the DISCOs and GENCOs, which have been turned in to private investors, stability till their hand over to their preferred Improving distribution of electricity will help reduce poverty (and) will go a long way to improve the quality of medical care and raise educational standards

Power 222013 , SweetcrudeReportsJune

FG approves alternative funding for DISCOs, GENCOsbidders. Igali made this known when the Senate Committee on Power visited the ministry in Abuja as part of their oversight functions, stating that due to the zero allocation to the PHCN successor companies, they have been having a hard t i m e f i n a n c i n g t h e i r operations. Chairman of the Senate Committee, Senator Phillip

Aduda advised the ministry to ensure that all labour-related issues with the PHCN workers were settled before hand over to the preferred bidders to avoid l i t i g a t i o n s o r o t h e r problems that could affect the gains so far achieved with the privatisation exercise. K a d u n a E l e c t r i c i t y Company warns staf f

against extortionThe Kaduna Electricity Distribution Company, KEDC, has warned that it would punish any of its staff involved in extorting money from customers. KEDC is one of the power distribution companies created from the unbundling of the Power Holding Company of Nigeria, PHCN. Addressing the Customers Consultative Council at Sabon-Tasha Business Unit forum in Kaduna, the Managing Director of KEDC, Malam Mohammed Idris, said the management was w o r r i e d b y f r e q u e n t complaints of monetary extortion by its staff. Idris said the company was determined to deliver quality service to customers and

would not allow any bad eggs to tarnish the image of the company and rubbish its e f f o r t s t o m e e t t h e aspirations of its consumers. He said: "PHCN/KEDC is committed to ensure efficient service delivery which will meet customers satisfaction at all times." Idris said the company designed the forum to create an opportunity for customers to rub minds with the companys management on issues of quality of services with a view to finding solutions to identif ied problems. He urged e lec t r i c i ty consumers not to relent in reporting erring staff of the company who, under any guise, demanded money from them to fix any damaged property of PHCN/KEDC.

Ambassador Igali

n an effort to arrest the p r o b l e m o f n o n -a v a i l a b i l i t y o f Ielectricity meters in the nations power sector, an i n d i g e n o u s m e t e r manufacturing company, MEMMCOL, has advised the Federal Government to patronising indigenous e l e c t r i c i t y m e t e r manufacturing companies in the country in line with the provisions of the Local Content Act. This is also _expected to curb crazy billing by the Power Holding Company of Nigeria, PHCN, which has been described as the new face of fraud by electricity consumers.Crazy billing is a situation which allows PHCN to impose electricity bills on their customers which are not commensurate with their electricity consumption, and the customers are expected to pay up or be forcefully disconnected.

YEMIE ADEOYEIndigenous meter manufacturer seeks govt funding

To help arrest the situation, electricity meter manufacturing company, MEMMCOL, has decided to shore up its investments to the tune of N3 billion in order to meet up with production obligations if a n d w h e n r e q u i r e d , especially as thousands of applications for the newly i n t r o d u c e d p r e - p a i d metering system is always met with No meters in s t o c k r e s p o n s e nationwide, making power consumers helpless in the hands of PHCN officials who know no better than imposing ridiculous bills on Nigerians.Speaking recently with newsmen in Lagos, Mr Kola Balogun, chairman of MEMMCOL, urged the Federal Government to give financial support to local manufacturers of electricity meters as such support would go a long way to enhance their growth.

Power 232013 , SweetcrudeReportsJune

Kaduna power firm warns staff against extortionh e K a d u n a E l e c t r i c i t y TDistr ibut ion Company, KEDC, has warned that it would punish any of its staff involved in extorting money from customers. KEDC is one of the power distr ibution companies created from the unbundling of the P o w e r H o l d i n g Company of Nigeria,

PHCN. A d d r e s s i n g t h e Customers Consultative Council at Sabon-Tasha Business Unit forum in Kaduna, the Managing Director of KEDC, Malam Mohammed Idris, said the management was worried by frequent complaints of monetary extortion by its staff. Idris said the company was determined to deliver

quality service to customers and would not allow any bad eggs to tarnish the image of the company and rubbish its e f f o r t s t o m e e t t h e aspirations of its consumers.He urged e lectr i c i ty consumers not to relent in reporting erring staff of the company who, under any guise, demanded money from them to fix any d a m a g e d p r o p e r t y o f PHCN/KEDC.

"You are not expected to pay for the repairs or contribute money for the p u r c h a s e o f a n y o f PHCN/KEDC installations in your communities," Idris said. Earlier in an address, the Business Manager of Sabon-Tasha Business Unit, Mr Gideon Adewuyi, promised that the unit would operate an effective customer care centre to enhance good public relationship.

Power holding gone wildOSCARLINE ONWUEMENYI Th e w a n t o n impunity and ma l f easance exhibited by officials of the Power Holding Company of N i g e r i a , P H C N , c a n appropriately be described as an insult on injury to millions of Nigerians who prayerfully continue to expect the minutest of improvement in electricity supply.For instance, only a few months after the Nigerian E lec t r i c i ty Regu la tory C o m m i s s i o n , N E R C , a n n o u n c e d t h e implementation of the Multi-Year Tariff Order, MYTO, which led to the slight increase in electricity tariff by the Power Holding Company of Nigeria, PHCN, the Commission called for the removal o f the Meter Maintenance Fund, MMF, which, it said, would see some reduction in the monthly tariff paid by consumers across the country. S w e e t c r u d e R e p o r t s i n v e s t i g a t i o n s r e v e a l , however, that months after the directive, PHCN offices across the country prey on the widespread ignorance of the populace on industry laws and regulations, to still continue to charge the MMF, among other sundry charges.According to officials of the Commission, the PHCN Distribution Companies, DISCOs, no longer had justification for charging the maintenance fee since such a charge was adequately covered by the MYTO review. The removal was expected to reflect in the October 2012 bill, which was presented to customers in November.Last Julys MYTO review for the electricity sector was met with protests in some quarters due to the poor state of electricity supply in the country, with many claiming that the resultant hike would further worsen the economic condition of Nigerians. NERC officials then argued that the review was long overdue since it had been proposed by the previous administration.Before the review, DISCOs were permitted to charge certain fees, including the Meter Maintenance Fund,

which were aimed at helping them shore up their revenue base and make up for the l i m i t e d f u n d i n g f r o m government. But, the MYTO review appeared to have taken care of such funding problem, making introduction of any additional charge a burden on the consumers.In an in terv iew wi th

SweetcrudeReports, the chairman of NERC, Dr. Sam Amadi, expressed sympathy with electricity consumers, maintaining that there had b e e n l i t t l e o r n o improvement in the state of power supply in the country since the power reform was initiated by the Olusegun Obasanjo government in

2005.He added that the state of electricity generation in this country is so terrible that one patriotic duty of every Nigerian is to speak strongly and critically about what needs to be done to review the situation. To us at the Commission, there cannot be a better time than now to put issues plaguing the sector back on the front burner. It comes as the Federal government is on the verge of divesting sole ownership and control of successor PHCN companies to allow private equity and management in line with the spirit of the Electric Power Sector reform Act, 2005.

N e e d f o r e f f e c t i v e regulationNERC, to this extent has promised to sanction or prosecute any chief executive officers of DISCOs who allow their business units to exploit electricity consumers in the country.The energy regulator noted that after only about two weeks of implementing the new electricity tariff structure, the Commission was flooded by complaints and queries over alleged violations of the conditions of order, including i l legal bil l ing and other unreasonable charges for e l e c t r i c i t y m e t e r s a n d estimated billing.

PHCN Office in AbujaIt comes as the Federal Government is on the verge of divesting sole ownership and control of successor PHCN companies to allow private equity and management in line with the spirit of the Electric Power Sector reform Act, 2005

Labour 282013 June, SweetcrudeReports

ELUONYE KOYEGWAEHI

Nigerian PortMaritime workers insist on strike over NIMASA, NLNG face-offLeaders of the M a r i t i m e Workers Union o f N i g e r i a , MWUN, have insisted on shutting down the nations maritime sector over alleged refusal of Nigeria LNG Limited, NLNG, to pay up statutory levies to the N i g e r i a n M a r i t i m e Administration and Safety Agency, NIMASA. MWUN had in the second week of the month of May, in a petition to President Goodluck Jonathan, issued a 21-day notice to NLNG to pay, without further delay, the accumulated 3% levies on g r o s s f r e i g h t a n d 2 % surcharge due on its cabotage contracts to NIMASA, failing which the union said it would shut down ports operations in the country. At a rally to TUC argued that whether such vessels were owned or chartered by the NLNG subsidiary, Bonny Gas Transport Limited, the truth was that the vessels engaged in cabotage trade and should therefore, make payments to NIMASA

commend President Jonathan for ongoing capacity building and oversea training of Nigerians in critical maritime sector, the union warned that at the expiration of its ultimatum, the ports would be shut down, if the issue was not resolved in favour of NIMASA. P r e s i d e n t - G e n e r a l o f M W U N , A n t h o n y N t e d Emmanuel, said: We have made it clear that after 21

days, if the issue is not resolved, and NIMASA paid accordingly, we will shut down the sector. We hear they are meeting; our concern is not meeting, but resolution that will compel N L N G t o p a y t h e accumulated levies and dues. "This affects our members and their training. The default started in 2004, but

we hear there is agreement for the payment to commence in 2009. But, the payment has not been effected. So, we are waiting and mobilising". In the petition to President Jonathan, the union had p l e a d e d w i t h h i m t o intervene in the dispute between NIMASA and NLNG, and compel the latter to pay the statutory levies in the interest of the welfare and training of dockworkers and seafarers. Similarly, Trade Union Congress of Nigeria, TUC, urged President Goodluck Jonathan to call NLNG to order over the refusal to pay to NIMASA the levies of 3% g r o s s f r e i g h t o n international inbound and outbound cargoes carried by NLNG vessels engaged in cabotage trade. TUC argued that whether such vessels were owned or chartered by the NLNG subsidiary, Bonny Gas

Transport Limited, the truth was that the vessels engaged in cabotage trade and should therefore, make payments to NIMASA. Nted further said: We are aware that the law setting up NIMASA - the NIMASA Act 2007 - in sect ion 15 , stipulates that the agency shall be funded by monies accruing to it from, among other sources, 3 percent of g r o s s f r e i g h t o n a l l international inbound and outbound cargoes from ships or shipping companies operating in Nigeria. The law also makes it clear that all s h i p s a n d s h i p p i n g companies operating in Nigeria are expected to obey this provision. He strsseed that it was the statutory responsibility of NIMASA to undertake the tra ining , cert i f i cat ion , development of seafarers and dockworkers in order to meet the needs of the industry and that "the said refusal by the N L N G t o p a y t h e accumulated 3% gross freight on its business activities from its inception in 1989 to date has drastically reduced the r e v e n u e a v a i l a b l e t o N I M A S A a n d i n t u r n undermined its ability to carry out its operations". "This Union strongly believes that the NLNG should be subject to the laws of this country because it is operating and doing business in Nigeria, he added. Commending the Federal Government for the level of capacity building that has enabled Nigerians take up critical jobs in the nations maritime industry, the MWUN President-General urged that more should be done to ensure that Nigeria would, in the nearest future, become a supplier of highly-trained professionals in the maritime industry. According to Nted, over 2,000 Nigerians have so far been sent abroad for training a s c a p t a i n s , m a r i n e engineers, naval architects, among others while another 1,000 would be going for similar training before the end of the year. He recalled that Nigeria used to own a fleet of vessels managed by the Nigerian National Shipping Line as he expressed regret that these had disappeared while the captains, marine engineers and other highly trained professionals had left the country in search of greener pasture.

Labour 292013 , SweetcrudeReportsJune

Th e N a t i o n a l U n i o n o f Petroleum and N a t u r a l G a s W o r k e r s , NUPENG, has decr ied increasing casualisation and outsourcing of workers in the nations oil and gas industry, and vowed to fight all forms of unfair labour practices in the industry. Similarly, the union warned t h a t u n e m p l o y m e n t remained "a time bomb" and a serious threat to Nigerias stability and survival. Speaking at a special delegates conference of the union in Lagos, President of NUPENG, Achese Igwe, said: The issue of unemployment has become cancerous and eating up everybody. All hands must be on deck to provide jobs for our youths, before the bubble bursts. In this regard, skill acquisition centres must be built, with empowerment schemes, so that our youths can be self employed. " T h e i s s u e o f casualisation/outsourcing has been with us for some t i m e n o w . T h e u n i o n vehemently kicks against this modern day slavery, and employers in the oil and gas industry, especially the multinational oil companies, are the most guilty. "The attempt by Chevron Nigeria Limited to convert the big six labour contractors to service contractors was vehemently resisted by the union. At the end, another 16 contractors were appointed, but, the union ensured that a l l t h e w o r k e r s w e r e migrated and their severance benefits paid to them. "We will continue to fight it and make sure that our m e m b e r s e n j o y g o o d condition of service. We will not rest on our oars in the fight for unionisation of our members, as it is their inalienable right to associate, organise and negotiate collectively. On the state of the local refineries, he said it was a sad commentary that the nation's four refineries are still in comatose. They are not working at optimal capacity.

NUPENG rues casualisation of workers, unemploymentELUONYE KOYEGWAEHI

T h e t u r n - a r o u n d maintenance, TAM, is only on paper. We continue to import petroleum products to the detriment of our economy. We c a l l o n t h e F e d e r a l Government to f ix the r e f i n e r i e s t o r e d u c e i m p o r t a t i o n a n d e v e n establish new ones. But, he commended the plan by Alhaji Aliko Dangote to build a 400,000 barrel per day refinery in the country, expected to come on stream in three years time. "We hereby c a l l o n t h e F e d e r a l Government and o ther wealthy Nigerians to invest in the refinery sector to create j o b s f o r o u r t e e m i n g unemployed youths and stop the importation of petroleum products," Achese said. On the issue of illegal refineries and oil theft that is rampant in the Niger Delta region, he urged that the government assemble "these refiners and give them further training and establish legal refineries for them to work in, in the regions, instead of chasing them around the creeks and destroying their tools. This will go a long way to

reduce unemployment and restiveness in the area. But, he expressed the union's displeasure with "unscrupulous Nigerians w h o t a k e d e l i g h t i n vandalising oil pipelines for pecuniary gains", saying their activities "has robbed the nation of billions of dollars that should have been used for development i n a d d i t i o n t o environmental degradation and pollution they cause". The union called on the government to establish a pipeline protection agency that will be saddled with monitoring, protecting and salvaging the over 5,000 k i lometres s tretch o f

pipelines that traverse the nooks and crannies of the nation. Lamenting the long wait so far for the passage of the Petroleum Industry Bill, PIB, the union called for a quick passage of the bill, but urged objectivity in the consideration and passage of the bill, especially on labour issues of gratuities, pensions, transfers and status of our members in new companies that will emerge Recall ing some of the a c h i e v e m e n t s o f h i s administration, Igwe said: During the period under review, my administration acquired zonal offices in Port Harcourt, Warri, and Lagos,

w h i c h i s d u e f o r commissioning soon. The Kaduna property has also been identified and payment will soon be made. "We also bought operational vehicles for the secretariat and four zonal councils for efficient administration and mobility. The national secretariat in Jibowu (Lagos) is presently undergoing a face-lift to give it a new status. On Education and training, I am happy to declare that all National Executive Council, NEC, members attended overseas training courses in Dubai, London and Houston in the United States of America". He added: We are starting another batch this year, precisely in May, 2013. We are proud to announce that some of our NEC members will go to the United States for a course. This we are doing in our firm belief to educate the members on modern trends in industrial relations. The Union has also acquired a massive expanse of land in Eleme, in Port Harcourt for a tanker park. It is about 47 hectres or 700 plots of land.

We hereby call on the Federal Government and other wealthy Nigerians to invest in the refinery sector to create jobs for our teeming unemployed youths and stop the importation of petroleum products

Protesting workers

When Moses O n e g i joined the U g a n d a Petroleum Institute in Kigumba, UPIK, in 2010, his ambition was to w o r k i n o n e o f t h e international oil companies, or the energy ministry.Born in Nebbi district, West Nile, an area in Uganda thought to hold vast amounts of oil deposits, Onegi is among the 28 pioneer students of UPIK. By the time he joined UPIK, Onegi was already a graduate of engineering and a tutor of civil engineering at Pakwach Polytechnic. He abandoned his teaching career to join the bandwagon of Ugandans studying oil-related courses following the country's discovery of the black gold."Everyone was talking about oil and gas and the potential of getting well-paying jobs," he explains. While at UPIK, Onegi was a student leader and says members of the pioneer class often considered themselves lucky. "We knew the whole country was behind us, and we would immediately get he Petroleum and Natural Gas Senior TStaff Association of Nigeria, PENGASSAN, has called on the Federal Government to ensure that the structure and mode of d isbursement o f the P e t r o l e u m H o s t Community Fund, PHCF, are clearly enshrined in t h e m u c h - a w a i t e d Petroleum Industrial Bill, PIB. Mr Chika Onuegbu, N a t i o n a l I n d u s t r i a l R e l a t i o n s o f f i c e r o f PENGASSAN said the call was being jointly made w i t h N U P E N G . H e

Female oil workers seek help for vulnerable children maintained that the mode and structure of the fund d isbursement to host communities were not outlined in the PIB. There must be clear p r o v i s i o n s o n t h e administration of the fund, including such provisions, allowing the communities to decide for and by themselves the value-adding projects required by the respective communities. We believe that the PHCF should i n c l u d e n o t j u s t o i l producing communities, but all communities hosting oil and gas resources and assets including downstream

infrastructure, he said. According to him, This is because the entire value chain of the oil and gas industry has pecul iar h e a l t h , s a f e t y , e n v i r o n m e n t a l a n d c o m m u n i t y r e l a t e d problems. A mechanism can then be developed to determine each assets c r i t i c a l i t y w i t h t h e producing communities obviously being the most critical. Onuegbu said with that, no part of the country hosting any oil and gas resources, assets or facilities, would feel short-changed as it

would derive socio-economic benefits from being a host. He said the PIB was not c l e a r o n w h e t h e r contributions by companies along oil and gas value chain to the PHCF would constitute immediate credit to total fiscal rent obligations. The PIB proposes that oil producing companies pay 10 per cent of their profits to the PHCF to provide socio-economic infrastructure in the host communities. The communities are, however, not to draw from the fund if t h e r e i s s a b o t a g e o f petroleum facilities in their domain.

jobs," he said. Things would later turn out differently.UPIK was established in 2010 as part of a strategy to enhance local content in the nascent petroleum industry. The institute offers a diploma in technical skills related to oil and gas, followed by an additional six-months training in Trinidad and Tobago. The

courses at UPIK are designed to impart high-level practical skills in areas such as drilling, pipe-fitting and health and safety, among others."I thought I would get a job immediately after finishing the course. I'm still looking for a job," Onegi reveals. "I am now well-qualified but

can ' t f ind a job , " he complains bitterly.Moses Arupei, Onegi's c o u r s e - m a t e , a l s o abandoned his career in information technology to chase his oil and gas dream. By the time he joined UPIK, Arupei was a graduate of Computer Science from Makerere University. "I had

a job, but at the same I had interest in serving Uganda as an informed person in oil and gas. It was a virgin area," he says.At UPIK, Arupei says, g o v e r n m e n t p a i d f o r everything. "All of us were g o v e r n m e n t - s p o n s o r e d students," he says with a sense of pride.

In Uganda, petroleum graduates cant find oil jobs

Labour 302013 , SweetcrudeReportsJune

A job seeker

Labour 312013 , SweetcrudeReportsJune

Ch a i r m a n , P e t r o l e u m T a n k e r s Drivers Unit of the National Union of Petroleum and Natural Gas Workers , NUPENG, Ibadan, Salmon Oladiti, has advised potential retirees to cut down on their lifestyles.Oladiti said in a lecture paper entitled: Developing Financial Literacy for Stress-Free Retirement, in Ibadan that retirees should shun such things as smoking, a l c o h o l c o n s u m p t i o n , drinking outside the home, gambling and laziness.According to him, other negative tendencies include having numerous wives and concubines, eating unhealthy foods and not creating time for leisure."Most important of all, don't buy anything that constitutes a liability. A liability is anything that takes money out of your pocket no matter what they are worth in the future. Think in terms of cash flow. What can I invest in

Labour leader counsels retirees on lifestyletoday that will give me funds tomorrow?" Oladiti said.He said, in planning for retirement, there was need for civil servants and private sector workers in the country to have financial literacy,

explaining that developing a healthy relationship with money and building a wealth of assets would generate steady income.He also said: "When you invest in yourself, it means

taking on the importance of e d u c a t i n g y o u r s e l f . Educat ion not in the academic or technical sense, there are necessary skills to be developed in life. Our education does not stop at

the college only".He said the best form of education for potential ret irees was f inancia l education with investment in f i n a n c i a l I n t e l l i g e n t Quotient

h e Communi ty TS e r v i c e S c h e m e , C S S , Implementation unit o f t h e S u b s i d y Reinvestment and E m p o w e r m e n t Programme, SURE-P, d o m i c i l e d i n t h e Federal Ministry of L a b o u r a n d Productivity, is set to commence the second phase of the scheme by e m p l o y i n g 2 , 0 0 0 persons in each of the 36 of the federation a n d t h e F e d e r a l SURE-P: Community Service Scheme to employ more

Capital Territory.This will bring the total number of beneficiaries of the scheme in each state to 5,000 persons.Minister of Labour and Productivity, Chief Emeka Wogu stated this in Abuja during the twin events of his meeting with the vice chairmen of the CSS State C o o r d i n a t i o n a n d I m p l e m e n t a t i o n Committee, and training of technical officers of the scheme from across the 36 states of the federation.The minister announced: I can tell you categorically

that in each of the 36 states of the federation, including t h e F e d e r a l C a p i t a l Territory, we have engaged 3,000 persons per state in the Community Service Scheme of SURE-P, we are set to begin the second round of the scheme with the intent ion of engaging additional 2,000 persons in each state of the federation and FCT.He charged the vice chairmen of the State C o o r d i n a t i o n a n d Implementation Committee, SCIC , t o b r ing the i r professional and technical

knowledge to bear towards achieving the target of the scheme as set by the Federal Government.According to him, Your roles and responsibilities as the secretariat of the SCIC and your functions as the work station/technical base of this project at the state level must be taken seriously by bringing the full weight of your pro fess i ona l and technical knowledge to bear on the delivery process to ensure smooth and efficient implementation process to achieve the set goal of the Community Service Scheme of SURE-P.

A retiree

Freight 352013 , SweetcrudeReportsJuneThe Destination Inspection, DI, s e r v i c e c o n t r a c t s c o v e r i n g Nigerian seaports and borders awarded to three foreign concessionaires by the Federal Government have become enmeshed in controversy.This is happening as the c o n t r a c t s n e a r t h e i r expiration date of June 30, 2013. The DI concessionaires are Cotecna, SGS Ltd and Globalscan Systems Ltd.S w e e t c r u d e R e p o r t s gathered that while a section of maritime stakeholders are clamouring for an end to the contract and a handover of the contract to the Nigerian Customs, which is statutorily entrusted with the job, some of the concessionaires are resorting to intrigues and subterfuge.Globalscan Systems, for i n s t a n c e , i s c l a i m i n g u n p r e p a r e d n e s s a n d inability of the Nigeria Customs Service, NCS, to take over and effectively m a n a g e t h e s c a n n i n g machines at the ports and borders.But, the Customs has dismissed the allegation as desperate claims to retain a non-performing contract. It said it has successfully repositioned for a takeover ahead of the contract expiration.The contracts initially expired on December 30, 2012, but the Federal Government extended it for six months, making June 30, 2013 the new termination date.According to statements credited to Globalscans chief executive officer, Mr Fred Udechukwu, Nigeria risks the outbreak of cancer at the ports and borders if the cargo scanning machines are handed over to the NCS operatives.As this war rages, Mr Udechukwu, has, however, d e n i e d m a k i n g t h e statements in advertorials in

Nigerian Customs reaffirms competency as DI contracts go sourYEMIE ADEOYE

some national dailies.A l s o , s o m e i n d u s t r y stakeholders are expressing fear of a possible collapse of the goods clearing system as the service providers prepare to exit their contracts and the system gets reverted to NCS.

According to an industry observer, the fear is not based on the capability of Customs to run the system but the bureaucrat ic hurdles associated with public service.The NCS, meanwhile, has

i s s u e d a s t a t e m e n t , reaffirming its competency to handle the DI machines. It said it had trained 5,000 of its officers on different aspects of Destination I n s p e c t i o n o f c a r g o clearance.

Mr Adewale Adeniyi, the Public Relations Officer of the Service, said the service h a d s u r p a s s e d t h e designated number of officers that were expected to be trained.

r. Patrick Z i a k e d e AkpoboloMkemi is Director General, Nigerian M a r i t i m e Administration and S a f e t y A g e n c y , NIMASA. In a recent interactive session with journalists in Abuja, Akpobolokemi spoke about the n a t i o n s a p e x maritime regulatory agency and its efforts to entrench a healthy national maritime NIMASA, Navy working together to expose oil thieves Akpobolokemi

environment.He also spoke on the o n g o i n g F e d e r a l Government war against oil thieves, disclosing that NIMASA will soon reveal the "big names" behind piracy and crude oil theft syndicate in the country.A k p o b o l o k e m i s a i d : "There are some big vessels under my custody belonging to organised piracy and crude oil thieves. Very soon, I will release all the big names in the syndicate."Once we do that, people should not come and say it is ethnic cleansing, it is 2015

or all these kinds of stories. That is why we want the media to stand by the truth and ask: 'did you do the piracy?'"Even if it is political vendetta, at least you committed the crime. We will take it from that point. That is what I am particular about."This is not an issue of political victimisation. If you have stolen, you have stolen".Concerning prosecution of people arrested for violating maritime laws, the NIMASA boss stated: "This is a country that is governed by

laws and you cannot say because somebody has been involved in piracy and when you are not under threat you go and kill him."You cannot torture him. You have to hand the person over to another agency that has the power of criminal investigation. If the thing (prosecution) does not go the way you want, it is like you are handicapped, because you can only arrest but the prosecution would be given to another agency that has the power to do that".

Customs officers on inspection

Freight 362013 , SweetcrudeReportsJune

Indigenous destination inspect ion ser vice p r o v i d e r , G l o b a l s c a n s y s t e m Limited, has raised alarm over low usage of its equipment at the Seme border post despite its sophistication and efficiency.Speaking to journalists during a recent tour of the equipment at the Seme border, Globalscan Chief Executive Officer, Mr. Fred Udechukwu, said the two sophisticated scanners cost euro12.5 million, adding that the scanners were effective even as he stressed that their under-utilisation has become a problem.U d e c h u k w u s a i d t h e equipment was available for scanning anytime within the working periods and that the scanners have the capacity to scan on a 24 hour basis.The Globalscan boss affirmed that the mobile scanner can assess 160 trucks par day, which, according to him, meant it could scan 20 trucks under an hour.Udechukwu disclosed that the mobile facility at the border post takes three minutes to he Mar i t ime A r b i t r a t i o n TAssociation of Nigeria, MAAN, has u r g e d t h e u s e o f Al ter nat ive Dispute Resolution, ADR, in the N i g e r i a n m a r i t i m e industry to ensure more e f f i c i e n c y a n d ef fectiveness in the resolution of disputes in the sector and to help grow the economy.M A A N P r e s i d e n t , Chief Gbola Akinola, made the call at the 5th M a r i t i m e D i s p u t e Resolut ion seminar, saying settlement of

Globalscan laments under-utilisation of scanners at Seme borderTOJU VINCENT assess a truck and that, in three shifts which the company operates, this results to 480 trucks being assessed in a day.H e n o t e d t h a t t h o u g h Globalscan has the capacity to scan 480 trucks, the trucks are not available for scanning, adding that it is what the Nigerian Customs Service releases to

them that they inspect.He disclosed that the mobile scanner cost 3.5 million euro while the fixed scanner cost the company a total of 9 million euros.According to him, the c o m p a n y h a s i n i t s employment 160 personnel, all Nigerians, even as affirmed

that the indirect staff summed up to be 200.The scanning expert said that the company has sites at Warri, Calabar, PTML and three sheds at Murtala Muhammed Airport and at the border post.Udechukwu reiterated that for a truck to be scanned, it must meet three conditions,

and that these conditions include that such truck must h a v e t h e s p e c i f i e d measurement, must have been released by the Customs for scanning and must have the necessary document which includes the RAR and others.

TOJU VINCENT MAAN urges use of ADR for maritime-related disputesdisputes between or amongst carriers, shippers and other stakeholders in the maritime sector using various means of ADR is essential to the development of the Nigerian economy.Akinola noted that this will not only save time and money, but could be handled in such a way that both parties can continue in business after resolution of such cases.He said: The sea is the medium through which goods originating from and destined for different parts of the world

are transported. Seaports are much safer for ships to load and unload as they help build and grow international trade which strengthens the national economySeaports fuel economies by providing high paying jobs while supporting employment in other sectors such as freight logistics and retailing that rely on ef ficient movement of goods. Therefore, having in place a forum for settling commercial disputes between o r a m o n g s t c a r r i e r s , shippersthe use of various

means of alternatives disputes resolution is essential to the development of the Nigerian economy.Accor ding to h im, the association and the Nigerian S h i p p e r s ' C o u n c i l a r e committed to promoting sound arbitration and ADR practices within the maritime industry by training highly skilled and r e s o u r c e f u l m a r i t i m e alternative dispute resolvers whilst promoting Nigeria as a venue for the settlement of maritime disputes through arbitration and ADR.

Checkpoint

Freight 372013 , SweetcrudeReportsJunehe Lagos Chamber of Commerce and Industry, LCCI, has been advised to promote goods made in Nigeria during Tthe upcoming 2013 Lagos International Trade Fair.Making the charge, co-ordinator, Nigeria Customs Service, NCS, Zone A in Lagos; Victor Gbemudu, said the service was prepared to partner with LCCI to achieve high demand by foreigners for locally-made goods.Gbemudu, an Assistant Comptroller-General of Customs, said: We believe so much in trade facilitation. This regime, under the Comptroller- General Abdullahi Dikko has been canvassing patronage of made-in-Nigeria goods.We want to encourage the Lagos Chamber of Commerce to support the Transformation Agenda of President Goodluck Jonathan through the coming trade fair.I also encourage the organisers to use the trade fair to create a forum where made-in-Nigeria goods will be displayed abundantly.According to him, the service was ready for a partnership with LCCI that would ensure high demand by foreigners Nigerian goods during and after the fair.The Nigerian Export Promotion Council had been working hard to ensure that duties on exports were greatly reduced, he said, adding that be commendable if more local manufacturers are able to export their goods.

The Marit ime A c a d e m y o f Nigeria, MAN, plans to send 2 5 0 c a d e t s abroad for compulsory training.The move is informed by the difficulty encountered by young Nigerian marine cadets in getting job placement occasioned by their inability to get sea time training.The management of the academy is hoping that by sending the 250 cadets for training abroad, they would acquire qaulity sea time MAN to spend N2bn on overseas training for 250 cadets

training that they are well prepared to face the world.At a recent interactive session with journalists, the rector of the academy, Dr. Joshua Okpo, said the first 20 cadets were being used as a pilot programme for the entire

project, adding that the Ministry of Transport has been intimated of the plan.The rector explained that while about 100 of the cadets are from the nautical science department, 150 are f r o m t h e m a r i n e

engineering department.He stated that it was the desire of the academy to make government fund the pro jec t , but that the government needed to be convinced before being approached.According to him, about N8 million has been budgeted for each of the cadets and the amount will cover their living expenses and general upkeep. The money is meant to pay for their upkeep, part of the money will also be spent on the m a i n t e n a n c e o f t h e i r w o r k i n g t o o l s a n d e q u i p m e n t . W e w a n t government to fund the

project but government needs to be convinced, we must first of all do a pilot project, he stated.Okpo further stated that the academy was looking forward to partnership with both the Nigerian Ports Authority, NPA, and the N i g e r i a n M a r i t i m e Administration and Safety Agency, NIMASA, in the provision of boats for the training needs of its cadets.The maritime academy is also partnering with both the International Maritime Organisation, IMO, and the World Maritime University, WMU, for the purpose of affiliation.

TOJU VINCENT

Customs counsels LCCI on promotion of local goods

The money is meant to pay for their upkeep, part of the money will also be spent on the maintenance of their working tools and equipment

Cadets on parade

H a r b o u r E n g i n e e r i n g Company which mobilised their men and machinery in August 2012 and is already in the last lap of pre-construction investigations a n d s i t e p r e p a r a t i o n activities.Lekki Port has been conceptualised on the basis of a significant gap in projected demand and capacity, needed to be met in conveying goods to and from Nigeria.L e k k i P o r t P r o j e c t manager, Tejaswi Vanamali harped on the strategic location, optimal layout and modern facilities provide Lekki Port, saying these had offered competitive edge to the port and distinguished it from other port facilities in West Africa.According to him, the involvement of the Lagos State government and the Nigeria Ports Authority, NPA, in the project was an indication of confidence in t h e P u b l i c - P r i v a t e Partnership, PPP, model adopted to bridge the gaps in infrastructure development.Our commitment to ensuring that we meet the scheduled operational date has seen us spare nothing in achieving it. As at today, we are happy to confidently say that all market engineering and impact studies have been completed over the last six years, likewise the Lekki port site has been gazetted as port area by the Federal Government.It is important to note that the Environmental Import Assessment study (EIA) has been fully completed with World Bank guidelines.Container terminal sub-c o n c e s s i o n h a s b e e n awarded to International Common User Terminal Operator (ICTSI) focusing on emerging markets after a tedious competitive bidding. A l s o , s h a r e h o l d e r s agreement has been signed between the sponsors, NPA a n d t h e L a g o s S t a t e Government. We are very much on course and in no distant time, Nigerians and the entire West African region would witness an evolution never seen before, Vanamali stated.

Freight 382013 , SweetcrudeReportsJune

Managing Director of Lekki P o r t L F T Z Enterprise, Mr. Haresh Aswani, says the Lekki Deep Sea Port currently under construction at the Lagos Free Trade Zone, LFTZ, will create 170,000 new jobs.According to Aswani, the p o r t , e x p e c t e d t o b e completed in 2016, will also generate $361 billion from its concession.The project is being undertaken by the Tolaram Group, a Singapore-based conglomerate, in conjunction with the Federal and Lagos State governments.The $1.53 billion Lekki Port project will have an aggregate impact of $361 billion on the Nigerian economy over the period of the concession, he said, adding that the project had

Lekki Port to create 170,000 new jobs, says MD

so far gulped about $800 million (N128 billion).The port occupying 90 hectares of land will serve as a m u l t i - p u r p o s e f a c i l i t y , handling various types of cargoes, including containers and liquid bulks.Aswani, who said the port was planned to fill projected capacity gap at the Apapa Port, stated that about $800 million had so far been raised from b a n k s t o w a r d s t h e construction of the facility. Financial commitment had also come from the Lagos Government, he said.Federal Government share of the funding is $117million, which is yet to be received.The managing director further said of the project: The new Lekki Port has capacity to accommodate larger vessels, offers optimised storage area and ease of expansion; the state-of-the-art equipment as well to facilitate relocation of Tank Farms.

In addition, it is expected to contribute more than $361billion to the economy while also creating close to 1 7 0 , 0 0 0 n e w j o b s . Furthermore, Lekki Port will spur the economic development around the Lekki sub-region and on a wider perspective, the Lagos State through rapid industrialisation.In a bid to ensure, smooth and efficient operations,

Lekki Port has engaged the services of leading global consultants such as the Louis Berger Group Inc, Delta Marine Consultant and Berger ABAM. The container terminal has been s u b - c o n c e s s i o n e d t o International Container Terminal Services Inc, Philippines.The EPC construction contract has been issued on a turnkey basis to China

The new Lekki Port has capacity to accommodate larger vessels, offers optimised storage area and ease of expansion; the state-of-the-art equipment as well to facilitate relocation of tank farms

Aerial view of the planned Lekki Port, now under construction

Motoring 392013 , SweetcrudeReportsJuneTop Recommended SUVs he car-based crossover has revitalized the m a r k e t f o r utility vehicles, as this new breed combines the trucklike utility that Americans prefer with the carlike comfort and fuel economy they expect. Old-school, truck-based SUVs are still the default choice for towing and rugged off-road adventure, but crossovers are becoming more capable for these tasks as well. Overall, utility vehicles appeal to consumers looking for an extra-spacious passenger package with an easily accessible place for cargo. And while the number of super-size, truck-based SUVs has dwindled, the compact crossover subcategory is one of the fastest-growing vehicle segments. Here we dont s e p a r a t e S U V s f r o m crossovers (in some instances the distinctions between the two are negligible), but instead divide the entire category by price range.SUVs Under $25,000W h e n i t c o m e s t o transportation for small families, its hard to beat the Honda CR-V . Thoughtful design and useful features are evident throughout, while the CR-Vs generous interior dimensions make easy work of hauling people and cargo. On top of that, excellent safety scores offer a high level of confidence when shuttling your precious cargo, plus the C R - V s f a v o r a b l e f u e l economy is a big plus for your budget. One of the only drawbacks is the lack of a more powerful engine option, but we still think most drivers will find the Honda CR-V appealing, especially when fuel economy is factored into the equation.The Ford Escape is all-new this year and has managed to impress us right out of the gate. It checks off all of the

T2013 SUV Buying GuideWhat you should know before buying an SUV

items that a small family needs as all good crossovers should and sweetens the deal with agile handling, a p l e a s i n g c a b i n a n d comfortable seating for all. Unlike the Honda, the Ford Escape gives buyers the choice of three engines that all achieve favorable fuel economy ratings. Budget-conscious buyers should keep tabs on their options, though, as the price can climb very quickly as items are added.Also new this year is the Mazda CX-5 , which receives similar high marks as the Honda CR-V and Ford Escape. Additionally, the Mazda comes

with daring styling plus a d a s h o f f u n - t o - d r i v e character. As an added bonus, the CX-5 could leave a couple thousand dollars in your pocket compared to the other crossovers. The Mazda CX-5 is a relative newcomer to our list, but its new position is certainly well deserved, especially since it puts so much sport into a segment that is otherwise perhaps a little too preoccupied with family values. The Mazda CX-5 crossover offers adventure, not just a trip to the store.

2013 Honda CR-V

2013 Ford Escape

2013 Mazda CX-5

Top Recommended2013 Honda CR-V 2013 Ford Escape 2013 Mazda CX-5 SUVs Under $34,000The Ford Flex is equal parts manageably sized m i n i v a n a n d b u d g e t limousine. The Flexs boxy profile and vast interior mean you get almost all of the utility and passenger-carrying capacity of a minivan, but with none of the minivan stigma. Its carlike height means theres no clambering up to get inside, while its carlike driving manners make it corner and steer a lot sharper than most minivans or crossovers. The optional EcoBoost V6 scoots the delightfully substantial package with authority, plus theres almost no fuel economy penalty compared with the base V6, although you have to watch the bottom line, as EcoBoost-equipped models can get pricey.True to Mazdas reputation

for making great vehicles that often are overshadowed by the fare from larger competitors, the Mazda CX-9 is one of the most satisfying three-row crossover SUVs you can buy at a price that is comfortably below $34,000, y e t i t g o e s w i d e l y unappreciated. When it comes to driving, the Mazda CX-9 puts the sport in sport-utility, and this makes it a favorite with us. Tool out to the mall in the CX-9 and youll be astonished at how nimbly a seven-passenger crossover can drive. Exterior s t y l i n g i s c l e a n a n d understated, while the interior is f i l led with c o n v e n i e n c e f e a t u r e s , trimmed with uncommonly n i c e m a t e r i a l s a n d assembled to a visibly high standard. Buying Mazdas CX-9 proves the wisdom of zigging while the rest of the world zags. Hauling plenty of people or CONTINUES ON PAGE 40

2013 Ford Flex

2012 Mazda CX-9

Motoring 402013 , SweetcrudeReportsJuneWhat you should know before buying an SUV

2013 GMC Acadiagear without fuss is the strong suit of the GMC Acadia , which takes a detour from the brands rugged-truck image to put the emphasis on comfort and refinement. As many as eight occupants can travel in the Acadia, while optional all-wheel drive can see you t h r o u g h i n c l e m e n t conditions. But the Acadia is one of our top choices mainly because of its blend of versatility and premium attributes dirty it up towing muddy off-road motorcycles on Saturday and yet the Acadia cleans up well enough to merit out-front parking at a fancy restaurant later that evening. The GMC A c a d i a i s t h e n e w interpretation of the classic American car.Top Recommended2013 Ford Flex 2012 Mazda CX-92013 GMC Acadia SUVs Under $40,000O p u l e n t b u t n o t ostentatious, the Audi Q5 is responsibly dimensioned, has a high-quality interior and is packed with performance and utility that exceed its modest footprint. As you might expect from its European p r o v e n a n c e , t h e Q 5 emphasizes agile handling and confident high-speed cruising. You can choose from a wide range of powertrains t h a t o f f e r d i f f e r e n t combinations of performance

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and efficiency, encompassed by a thrifty-but-thrusty turbocharged 2.0-liter four-c y l i n d e r , a h e a v e n l y supercharged V6 or even a hybrid. Meanwhile, Audis customary all-wheel-drive system is standard, but things start to get expensive once you get to the hybrid.The Swedish aesthetic is in full force with the Volvo XC60 , a crossover that demonstrates how hip sensible can be. The XC60s styling intrigues from all angles with its austere Scandinavian coolness, while the well-trimmed interior is deceptively spacious, not to mention refreshing in its lack of buttons. Meanwhile, the XC60 sublimates Volvos wonky, safety-first legacy with an emphasis on driving dynamics, particularly from the turbocharged T6 models. Its a $6,000 jump from the base model to the T6 in order to get all-wheel drive, so check out the front-drive XC60 if you like what the XC60 says but dont necessarily need all-weather traction.The first generation of the BMW X3 crossover wasnt one of the companys better efforts, but all thats changed now and the X3 is one of our top choices for an entry-luxury crossover. The new turbocharged four-c y l i n d e r e n g i n e i s a performance marvel and is uncommonly frugal, while the 300-horsepower inline-6 helps deliver BMW nirvana in a crossover wrapper. The X3s interior is lusciously styled

and trimmed, while even the base model BMW X3 offers an unusual amount of standard content, including all-wheel drive and an engine stop-start system t h a t e n h a n c e s f u e l efficiency.Top Recommended2013 Audi Q5 2013 Volvo XC60 2013 BMW X3 SUVs Under $55,000No matter which version of the Porsche Cayenne you select, its no subtle cruise-a r o u n d - t h e - b l o c k propos i t ion . Yes , the C a y e n n e m a k e s a magnificent statement. Yes, you can spend as much as you want on a Cayenne, but at well less than our $55,000 price point, even the base Cayenne has a stunningly designed interior, standard all-wheel drive and some of the most muscular sheet metal in the crossover kingdom. At a smidge more than $55,000, the new Cayenne Diesel may be the thinking buyers choice, with performance that rivals the much pricier V8 variants and a 29 mpg rating on the highway.The choices in this class dont get any more all-around solid than the Acura MDX . Whether its the MDXs front-line array of h i g h - t e c h e l e c t r o n i c f e a t u r e s , t h e a m p l e performance from its 300-hp 3.7-liter V6 or the meticulous quality of its interior, the MDX simply doesnt mess around. Mix in 2013 Audi Q5

2013 Volvo XC60

2013 BMW X3 Acuras reputation for unbeatable reliability and resale value and the MDX is a cant-miss proposition unless you want to save some bucks and examine its little brother, the RDX , which was totally redesigned for 2013 and with 273 horses aint no slouch, either.Cavernous isnt really accurate to describe the Infiniti JX35 , because a cavern also would need exquisite leather-trimmed walls and enough high-tech firepower to please a midlife-crisis Batman. The JX35 is genuinely huge inside, including its rearmost row of seats, which can handle adults (at least for a while) and is accessed via a clever new seat-tilt design that allows child seats strapped in the second row to remain in place. Infinitis got an a r s e n a l o f a v a i l a b l e electronic features for the JX, including a system that will stop the JX completely before you reverse into something unseen. A poised highway ride and a hushed interior complement these impressions, although the V6 engine is still pretty thirsty despite the efficiency offered by the powertrains c o n t i n u o u s l y v a r i a b l e transmission (CVT).Top Recommended2013 Porsche Cayenne 2013 Acura MDX 2013 Infiniti JX35 SUVs Over $55,000Like your mom said, its whats on the inside that counts, so consider the Infiniti QX56 for your next

luxury SUV. No longer built from a pickup truck platform, the new seven- or eight-passenger QX56 impresses with a combination of old-world comfort and modern technology. A seven-speed transmission routes power from a powerful 5.6-liter V8 to either rear- or four-wheel drive, so cross-country trips feel effortless. Properly equipped, the QX is also capable of towing up to 8,500 pounds and features a tow/haul mode for the transmission as well as an automatic-leveling rear suspension. Criticisms are few, but a tight third-row seat and an exceptional fuel thirst should be noted.Similarly well-outfitted for well-funded, large, active families in inclement climes, the seven-passenger, all-wheel-drive Mercedes-Benz GL-Class fulfills its mission with a range of powertrains from which to select. Either the 4.7-liter V8 or 5.4-liter V8 will blast this full-size SUV to 60 mph in less than 7 seconds, while the 3.0-liter turbodiesel V6 has a cruising range of about 600 miles and can tow up to 7,500 pounds. This is a full-size SUV done in the M e r c e d e s - B e n z s t y l e , completely sophisticated and refined, like an S-Class sedan in a sport-utility suit. It might be an SUV, yet it makes every dr ive an occasion.Finally, if either Rodeo Drive or the Rubicon Trail beckons, there are few tools as posh or as well equipped for the job as the aptly named Land Rover Range Rover . With its impeccable 40-year pedigree of off-road prowess and a choice of two powerful V8 engines, the aluminum-intensive Range Rover sheds some 700 pounds this year in an effort to improve its tradit ionally poor fuel economy. It will continue, however, to indulge up to five passengers thanks to an entirely redesigned interior thats one of the most opulent extant, boasting a 1,700-watt, 29-speaker audio system, front seats that can m o v e i n 2 0 d i f f e r e n t directions while massaging your buttocks in five different ways, optional LED ambient mood lighting, and a heated windshield. All this and go-anywhere mobility besides, from snowy wilderness cabin to fashionable downtown restaurant.Top Recommended2012 Infiniti QX 2013 Mercedes-Benz GL-Class 2013 Land Rover Range Rover

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Al t e r n a t i v e energy is any energy source t h a t i s a n alternative to fossil fuel. These alternatives are intended to address concerns about such fossil fuels.T h e n a t u r e o f w h a t constitutes an alternative energy source has changed considerably over time, as have controversies regarding energy use. Today, because of the variety of energy choices and differing goals of their advocates, defining some energy types as "alternative" is highly controversial.I n a g e n e r a l s e n s e , alternative energy as it is currently conceived, is that which i s produced or recovered without the undesirable consequences inherent in fossil fuel use, particularly high carbon d iox ide emiss ions , an important factor in global warming. Sometimes, this less comprehensive meaning of "alternative energy" excludes nuclear energy (e.g. Alternative energy

as defined in the Michigan Next Energy Authority Act of 2002).HistoryHistorians of economies have examined the key transitions to alternative energies and regard the transitions as pivotal in bringing about significant economic change. Prior to the shift to an alternative energy, supplies of the dominant energy type became erratic, a c c o m p a n i e d b y r a p i d increases in energy prices.Coal as an alternative to wood

Historian Norman F. Cantor describes how in the late medieval period, coal was the new alternative fuel to save the society from overuse of the dominant fuel, wood: "Europeans had lived in the midst of vast forests throughout the earlier medieval centuries. After 1250 they became so skilled at deforestation that by 1500 AD they were running short of wood for heating and cooking... By 1500 Europe was on the edge of a fuel and nutritional disaster, (from) which it was saved in the sixteenth century only by the burning

o f so f t c oa l and the cultivation of potatoes and maize. "Petroleum as an alternative to whale oilW h a l e o i l w a s t h e d o m i n a n t f o r m o f lubrication and fuel for lamps in the early 19th century, but the depletion of the whale stocks by mid century caused whale oil prices to skyrocket setting the stage for the adoption of petroleum which was first c o m m e r c i a l i s e d i n Pennsy lvania , Uni ted States, in 1859.Alcohol as an alternative to fossil fuelsI n 1 9 1 7 , A l e x a n d e r Graham Bell advocated ethanol from corn, wheat and other foods as an alternative to coal and oil, stating that the world was in measurable distance of depleting these fuels. For Bell, the problem requiring an alternative was lack of

renewability of orthodox energy sources. Since the 1970s, Brazil has had an ethanol fuel programme which has allowed the country to become the world's second largest producer of ethanol (after the United States) and the world's largest exporter. Brazils ethanol fuel programme uses modern equipment and c h e a p s u g a r c a n e a s feedstock, and the residual cane-waste (bagasse) is used to process heat and power. There are no longer light vehicles in Brazil running on pure gasoline. By the end of 2008 there were 35,000 filling stations throughout Brazil with at least one ethanol pump.Cellulosic ethanol can be produced from a diverse array of feedstocks, and involves the use of the whole crop. This new approach should increase yields and reduce the carbon footprint because the amount of CONTINUES ON PAGE 42

The nature of what constitutes an alternative energy source has changed considerably over time, as have controversies regarding energy use

Nuclear Energy

Technology 422013 , SweetcrudeReportsJune

Alternative energyenergy-intensive fertilisers and fungicides will remain the same, for a higher output of usable material. As at 2008, there were nine commercial cellulosic ethanol plants which were either o p e r a t i n g , o r u n d e r construction, in the United States.Second-generation biofuels technologies are able to manufacture biofuels from inedible biomass and could hence prevent conversion of food into fuel." As of July 2 0 1 0 , t h e r e w a s o n e c o m m e r c i a l s e c o n d -generation, 2G, ethanol plant Inbicon biomass refinery, which is operat ing in Denmark.Coal gasification as alternative to petroleumIn the 1970s, President J i m m y C a r t e r ' s administration advocated coal gasification as an alternative to expensive i m p o r t e d o i l . T h e programme, including the Synthetic Fuels Corporation

was scrapped when petroleum prices plummeted in the 1980s. The carbon footprint and environmental impact of coal gasification are both very high.Common types of alternative energySolar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a r a n g e o f e v e r - e v o l v i n g technologies. Solar energy technologies include solar heating, solar photovoltaics, solar thermal electricity, solar architecture and artificial photosynthesis, which can m a k e c o n s i d e r a b l e contributions to solving some of the most urgent energy problems the world now faces.

Solar technologies are broadly characterised as either passive solar or active solar depending on the way they capture, convert and distribute solar e n e r g y . A c t i v e s o l a r techniques include the use of photovoltaic panels and solar thermal collectors to harness the energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favourable thermal mass or light dispersing properties, and designing spaces that naturally circulate air.In 2011, the International Energy Agency said that " t h e d e v e l o p m e n t o f affordable, inexhaustible

and clean solar energy technologies will have huge longer-term benefits. It will increase countries energy security through reliance on an indigenous, inexhaustible a n d m o s t l y i m p o r t -independent resource , enhance sustainability, reduce pollution, lower the costs of mitigating climate change, and keep fossil fuel prices lower than otherwise. These advantages are global. Hence the additional costs of the incentives for early deployment should be c o n s i d e r e d l e a r n i n g investments; they must be wisely spent and need to be widely shared".W i n d p o w e r i s t h e conversion of wind energy into a useful form of energy, such as using wind turbines to make electrical power, windmills for mechanical power, wind pumps for water pumping or drainage, or sails to propel ships.Large wind farms consist of hundreds of individual wind t u r b i n e s w h i c h a r e connected to the electric p o w e r t r a n s m i s s i o n network. Offshore wind is steadier and stronger than

on land, and offshore farms have less visual impact, but c o n s t r u c t i o n a n d maintenance costs are considerably higher. Small onshore wind farms provide e lec t r i c i ty to i so la ted locations. Utility companies increasingly buy surplus electricity produced by small domestic wind turbines.W i n d p o w e r , a s a n alternative to fossil fuels, is plentiful, renewable, widely distributed, clean, produces no greenhouse gas emissions during operation and uses little land. The effects on the environment are generally less problematic than those from other power sources. As o f 2 0 1 1 , D e n m a r k i s generating more than a quarter of its electricity from wind and 83 countries around the world are using wind power on a commercial basis. In 2010, wind energy production was over 2.5% of total worldwide electricity usage, and growing rapidly at more than 25% per annum. The monetary cost per unit of energy produced is similar to the cost for new coal and natural gas installations.W i n d p o w e r i s v e r y consistent from year to year but has significant variation over shorter time scales. The intermittency of wind seldom creates problems when used to supply up to 20% of total electricity demand, but as the proportion increases, a need to upgrade the grid, and a lowered ability to supplant conventional production can occur. Power management techniques such as having excess capacity storage, geographically distributed turb ines , d ispatchable backing sources, storage such a s p u m p e d - s t o r a g e hydroelectricity, exporting and importing power to neighbouring areas or reducing demand when wind production is low, can greatly mitigate these problems. In addition, weather forecasting permits the electricity network to be readied for the predictable variations in production that occur.Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy t h a t d e t e r m i n e s t h e temperature of matter. The Geothermal energy of the Earth's crust originates from the original formation of the planet (20%) and from radioactive decay of minerals CONTINUES ON PAGE 43

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Solar technologies are broadly characterised as either passive solar or active solar depending on the way they capture, convert and distribute solar energy

Coal also serve as energy source

Technology 432013 , SweetcrudeReportsJune

(80%). The geothermal gradient, which is the difference in temperature between the core of the planet and its surface, drives a continuous conduction of thermal energy in the form of heat from the core to the surface . The adject ive geothermal originates from the Greek roots (ge), meaning e a r t h , a n d ( t h e r m o s ) , meaning hot.At the core of the Earth, thermal energy is created by rad ioact ive decay and temperatures may reach over 5,000 C (9,000 F). Heat conducts from the core to surrounding cooler rock. The h igh temperature and pressure cause some rock to mel t , c reat ing magma convection upward since it is lighter than the solid rock. The magma heats rock and water in the crust, sometimes up to 370 C (700 F).F r o m h o t s p r i n g s , geothermal energy has been used for bathing since Paleolithic times and for space heating since ancient Roman times, but it is now better known for electricity generation. Worldwide, about 10,715 megawatts, mw, of geothermal power is online in 24 countries. An additional 28 gigawatts of direct

geothermal heating capacity is installed for district heating, space heating, spas, i n d u s t r i a l p r o c e s s e s , desalination and agricultural applications.Geothermal power is cost e f f e c t i v e , r e l i a b l e , s u s t a i n a b l e , a n d environmentally friendly, but has historically been limited to areas near tectonic plate b o u n d a r i e s . R e c e n t technological advances have dramatically expanded the range and size of viable resources, especially for applications such as home heating, opening a potential for widespread exploitation. Geothermal wells release greenhouse gases trapped deep within the earth, but these emissions are much lower per energy unit than those of fossil fuels. As a result, geothermal power has the potential to help mitigate global warming if widely deployed in place of fossil fuels.The Earth's geothermal resources are theoretically more than adequate to supply humanity's energy needs, but only a very small fraction may be profitably exploited. Drilling and exploration for deep resources is very expensive. Forecasts for the future of geothermal power depend on assumptions about technology, energy prices,

subsidies, and interest rates. Pilot programmes like EWEB's customer opt in Green Power Programme show that customers would be willing to pay a little more for a renewable energy source like geothermal. But as a result of government-assisted research and industry experience, the c o s t o f g e n e r a t i n g geothermal power has decreased by 25% over the past two decades. In 2001, geothermal energy cost between two and ten cents per kwh.A biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases. Biofuels are gaining increased public and scientific attention, driven by factors such as oil

Alternative energy

price hikes and the need for increased energy security. However, according to the European Environment Agency, biofuels address global warming concerns only in specific cases.Bioethanol is an alcohol made by fermentation, mostly from carbohydrates produced in sugar or starch crops such as corn or s u g a r c a n e . C e l l u l o s i c biomass, derived from non-food sources, such as trees and grasses, is also being developed as a feedstock for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the USA and in Brazil. Current plant design does not provide for converting the lignin portion of plant raw materials to fuel

components by fermentation.Biodiesel is made from vegetable oils and animal fats. Biodiesel can be used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons f r o m d i e s e l - p o w e r e d v e h i c l e s . B i o d i e s e l i s produced from oils or fats using transesterification and is the most common biofuel in Europe.In 2010, worldwide biofuel production reached 105 billion litres (28 billion gallons US), up 17% from 2009, and biofuels provided 2.7% of the world's fuels for r o a d t r a n s p o r t , a contribution largely made up of ethanol and biodiesel. G l o b a l e t h a n o l f u e l production reached 86 billion litres (23 billion gallons US) in 2010, with the United States and Brazil as the world 's top producers, accounting together for 90% of global production. The world's largest biodiesel producer is the European Union, accounting for 53% of all biodiesel production in 2010. As of 2011, mandates for blending biofuels existed in 31 countries at the national level and in 29 states or provinces. The International Energy Agency has a goal for biofuels to meet more than a quarter of world demand for transportation fuels by 2050 to reduce dependence on petroleum and coal.Nuclear binding energy is the energy required to split a nucleus of an atom into its component parts . The c o m p o n e n t p a r t s a r e neutrons and protons, which are col lect ively cal led nucleons. The binding energy of nuclei is always a positive number, since all nuclei require net energy to s e p a r a t e t h e m i n t o individual protons and neutrons. Thus, the mass of an atom's nucleus is always less than the sum of the individual masses of the constituent protons and neutrons when separated. This notable difference is a measure of the nuclear binding energy, which is a result of forces that hold the nucleus together. Because these forces result in the removal of energy when the nucleus is formed, and this energy has mass, mass is removed from the total mass of the original particles, and the mass is missing in the resulting nucleus.

CONTINUED FROM PAGE 42 Nuclear binding energy is the energy required to split a nucleus of an atom into its component parts. The component parts are neutrons and protons, which are collectively called nucleons

hydrogen fuel plant

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hell Nigeria Exploration Sa n d P r o d u c t i o n Company Limited, SNPECo, has come u n d e r s t r i d e n t a t t a c k o f s o m e c o m m u n i t i e s i n Delta State for allegedly tampering with the result of a probe into the 2011 Bonga crude oil spill.A b o u t 8 0 o i l p r o d u c i n g c o m m u n i t i e s i n Warri North and Warri South-West Local Government Areas of Delta State

The introduction o f t h e P e t r o l e u m H o s t C o m m u n i t y Fund as enshrined in the Petroleum Industry Bill, PIB, will help arrest incidence of pipeline vandalism and crude oil theft in the Niger Delta.NNPC Group Managing Director, GMD, Mr. Andrew Yakubu, made the assertion at a seminar organised by the Petro leum Explorat ion Technology Association of Nigeria, PETAN.Yakubu spoke on Post PIB Challenges, Prospect and Opportunities at PETAN-organised seminar, which held during the Offshore Technology Conference in Houston, Texas, United States.According to him, the p r o p o s e d f u n d i s a mechanism to formally recognise host communities as important stakeholders by ass igning o i l and gas infrastructure security to the host communit ies and minimising environmental degradation due to vandalism and crude oil theft.It also includes modalities for using regulations to increase f l ex ib i l i ty in managing host community i s s u e s , Y a k u b u s a i d , referring to the PIB as an essent ia l t oo l f o r the sustainable development of the Nigerian oil and gas industry.The NNPC boss, who said the proposed law presented multi-dimensional approach to the nations oil and gas resource management , maintained that it will bring about increased active contribution by players and stakeholders under prudent government structure.He further said: It also stipulates guidelines for operations in the upstream and downstream sectors that can be viewed