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Home»Energy»Oil & Gas»Oando’s Midstream Jetty To Save Nigeria $120 Million Annual Demurrage
Oil & Gas

Oando’s Midstream Jetty To Save Nigeria $120 Million Annual Demurrage

By orientalnewsngJuly 25, 2017No Comments7 Mins Read
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Yemisi Izuora
Oando has unveiled a major petroleum products reception facility capable of saving the country about $120 million in demurrage.
The novel infrastructure, which is the Downstream sector’s first in decades, will provide a more efficient platform for product receipt to all marketers currently using the major oil marketers, MOMAN, jetty. and will ease the plight of oil marketers’ and save the country over $120million in demurrage annually.  The facility which has a half-kilometer subsea pipeline, and a 16” 3km onshore line is capable of delivering over 3 million tonnes a year.
The jetty recently berthed its first cargo following statutory checks; the MT FALCON NOSTROS, a 22,000MT cargo vessel. Product discharge lasted two days in line with design parameters, and validates the jetty project with regards to overall design, integrity of the jetty platform, pipelines, integrated systems and resulting operational efficiency.
The 127 jetties in Nigeria have proven insufficient to service the needs of the country, posing a major challenge for imported vessels trying to discharge at the port. The fuel jetties at the Apapa Wharf are incapable of accommodating large volumes of fuel imports, with maximum vessel size restricted to between 18,000Metric Tonnes and 20,000Metric Tonnes. Hence, every 30,000MT vessel that berths at the Apapa jetty must be lightered into a daughter vessel at an extra cost to the marketers of approximately $245,000 per lightering operation.
Furthermore, over $120 million is lost annually to demurrage, as every vessel that berths at the Apapa jetty has a waiting time of between 14 to 21 days, incurring a demurrage of between $280,000 to $420,000 per operation. Major fuel importers now have a preference for discharging their products outside Nigerian waters, specifically at the ports in Cotonou, Benin, Niger Republic and Lome, Togo.
Speaking at the maiden berth, the Chief Executive Officer of OVH Energy, Oando’s Downstream licensee, Mrs. Olaposi Williams said, “This maiden vessel is further proof that the Jetty’s entire integrated product discharge and receipt systems can support requisite operational rigours.” She further said “This remarkable milestone heralds the next phase of planned activities which include; completion of pipeline connection to various terminals in line with communicated connection plans, commercial contracting with MOMAN and other customers as well as an upgrade and development of Terminal 1 and the Marshalling Yard.”
The jetty has been identified as an immensely valuable initiative developed by Oando as it will allow 45,000DWT vessels to berth and discharge their products without lightering and demurrage.
The subsea marina jetty will also contribute significantly to the company’s overall net profit as a result of tolling fees and substantial cost savings on imports and demurrage, while ensuring an increase in the utilization of existing storage space, and significant reduction in delays caused by infrastructure constraints in the Lagos are
Nigeria’s infrastructural constraints have continued to have a significant impact on the distribution of petroleum products; with 70 per cent of Nigeria’s domestic petroleum products demands being met through petroleum importation. 
As at 2016, Nigeria spent 2.5 trillion Naira on the importation of refined petroleum products according to data from the Nigerian Bureau of Statistics (NBS), making it the 7th largest petroleum importer in the world.
NAMA To Deploy New Landing Instrument Facilities
Yemisi Izuora
The Nigerian Airspace Management Agency (NAMA) is set deploy new Instrument Landing Systems (ILSs) like the Distance measuring equipment (DME), DVOR Doppler VOR (DVOR) to replace obsolete facilities at the nation’s airports.
The agency is also extending the VHF coverage in Northern Nigeria, to address the communication challenges due to blind spots. This will cover Kaduna, Jos, Enugu and Benin.
NAMA said it is a capital intensive project, but determined to get it right.
The DME is a transponder-based radio navigation technology that measures slant range distance by timing the propagation delay of VHF or UHF radio signals, just as this would help to enhance pilot-air traffic controller communication.
Director, Safety Electronics and Engineering Services (DSEES) of the agency, Umar Ahmad Faruk, an engineer of the agency said when the newly elected executive of the National Association of Air Traffic Engineers (NAAE) met with him in his office.
He said the deployment of the expensive equipment would a phased process starting with the busiest airports like Lagos, Abuja, Port-Harcourt and Abuja.
Faruk stated that similarly, ten-watt radios are already in place with the capacity to cover 150 nautical miles on aerodrome and approach, adding that the requirement is 70 miles coverage.
He further disclosed that the equipment for both Lagos west and east and Kano west and east have the capacity to cover 241 nautical miles at 41,000 feet and beyond depending on the line of sight.
Similarly, he stated that NAMA is going fully, the renewable green energy way, with solar power installations for all navigational and communications field equipment, stressing that NAMA is determined by the end of 2018 to ensure all equipment are solar powered.
He noted that the process of conversion, modifications and testing are already in full gear.
His words, “Ratings are being developed for power systems. Similarly, batches of engineers are already on standby to proceed to the Nigerian College of Aviation Technology (NCAT), Zaria for various trainings inclusive of ATSEP preparatory training”.
General Manager, Terrestrial services, Mrs. Mojisola Dokun congratulated the new NAAE leadership on its emergence.
She used the opportunity to commend the leadership Faruk, and stated that he has the singular quality of carrying everyone along.
She stated that the new NAAE leadership inherited a divided house and hence a herculean task of mending fences and bringing everyone on board. She admonished the new NAAE leadership to carry everyone along, redeem the image of all NAAE members in NAMA, Nigeria Civil Aviation Authority (NCAA), NCAT and IBOM with haste as valuable time had been lost already.
She reminded the new exco that this is leadership by service, urging the executive to be willing and ready to serve in all humility the whole engineering profession.
The NAAE General Secretary, Ishaya Idris Akaaba stated that NCAT in full collaboration with the International Civil Aviation Organisation (ICAO) has developed Standard training packages (STP’s) covering power systems and navigational aids.
He stated that NCAT is in the process of constructing renewable power systems laboratories that are designed to teach students hands on the harnessing, installations and maintenance of Wind, Solar and Bio-mass energy alternative sources of power.
This, he said is the answer to the power challenges of the country and the training needs of ATSEP’s and navigation and communication engineers in the aviation and communications industry.
 
NAAE President, Ishaya Dung thanked Faruk,  Dokun, the directorate, management and all engineers for the honour given to him to serve in this capacity.
He stated that he knows all eyes are on the new NAAE leadership, and this doubles as a reason why NAAE cannot fail under his watch. He stated that from a distance, he had admired the leadership qualities of the director.
He further promised that, as advised, this new NAAE leadership will remain truthful, just and resilient.
 He pleaded with the outgoing Exco to always be available and willing when called upon with advice and direction. He pledged that unity truth and dogged determination will remain his watch words.
NAAE outgoing President Engr. Isaac Orishaleye and Bulus Bodam pledged their unflinching support and unreserved commitment to continu

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