Overview

Nigeria sustainability

In detail:

  • initiatives as part of the Green River Project, the integrated development programme for farming and livestock in the Niger Delta
  • activities relating to health, agricultural development, training, environmental protection and culture
  • the Kwale Okpai power plant and other initiatives to facilitate access to energy
  • measures taken for the protection and promotion of the environment, such as the reduction of gas flaring and the management of waste water
  • the stakeholder engagement system involving local communities
  • the implementation of EITI criteria in Nigeria
  • videos about the Kwale Okpai power plant, part of the Green River Project

Green River Project

To meet the Nigerian Federal Government’s directive of 1986 requiring all foreign oil companies to implement projects for agricultural support, NAOC JV engaged Enichem Agricoltura as a consultant with the aim of identifying suitable projects for the areas in which the company has oil concessions. Following appropriate baseline surveys and studies by Rivers State University of Science & Technology in 1986, the project was initially located in part of Oil Concession OML 61 in Rivers/Imo States, then extended to OML 62 in Delta State in 1992 and to OML 63 in 2000 to cover Bayelsa State. Activities comprising the Green River Project (GRP) span four zones in the Land Area and five locations in the Swamp Area. Collaboration with research institutions such as the International Institute for Tropical Agriculture (IITA), National Root Crop Research Institute (NRCRI), National Stored Product Research Institute (NSPRI), West African Rice Centre (WARDA), International Livestock Research Institute (ILRI), Rivers State University of Science and Technology (RSUST), National Horticultural Research Institute (NIHORT) and the African Regional Aquaculture Centre (ARAC) continue to provide the foundations for the activities and successes of the GRP.

During the early years of the project (1990-95), efforts were centred on raising farmers’ awareness of the importance of agriculture through the introduction of high-yielding planting materials, fisheries activities, home-economics training for women, the introduction of multifunctional toolkits for agriculture, the setting up of co-operative societies and capacity-building. This made the project popular in NAOC.

 

Operational areas

Subsequently, the attention of the area’s population shifted towards self-development and people were keen to practise agriculture with the support provided by the Green River Project. To this end, in 2001 the GRP started a micro-credit scheme that over the years has consistently recorded remarkable successes in timely fund disbursement, utilisation, business growth and loan recovery (between 85-95 per cent) from beneficiaries. In the same vein, special attention was given to young people and women with regard to training in technical and vocational trades. Since 1999, NAOC-GRP has trained about 3,800 young people and women in trades such as woodwork, fashion design, computing, hairdressing, boat engine repair, electrical installation (domestic), catering/event management and welding/pipefitting. Trainees are enrolled for Ministry of Labour and Productivity Trade Test examinations. Successful trainees are given starter packs to get their business up and running.

 

Green River Project's approach

The Green River Project develops as a modular integrated unified extension service system (MIUES) linked to:

  • improvement of traditional agricultural methods by the introduction of modern farming techniques through extension services
  • introduction of new crops of greater nutritional and economic value
  • large-scale breeding of planting material for improved varieties of locally grown food crops
  • promotion of co-operative societies and associations
  • dissemination of information on the use of agricultural products, correct nutrition, land conservation and management
  • provision of micro-credit schemes for rural farmers and the development of the necessary skills to empower young people and women
  • sustainable enterprise development and the nurturing of small and medium-sized enterprises
  • provision and implementation of an appropriate farm machinery and processing strategy in line with the Local Content policy
  • Effective partnering with local and international development agencies, research and academic institutions to enhance our service delivery to meet world standards.

In line with the current National Development Plan, the programme aims to improve the livelihoods of Niger Delta communities and pursue food security. Given the relevance of the programme in the framework of Government Development Plans, NAOC’s aim is to strengthen GRP activities, promote innovation and strengthen the skills acquisition programme.

 

Objectives and expected results

The programme’s general objective is to improve the livelihood of farmers in areas of NAOC operations. Its specific objectives are to increase food availability, generate employment and improve access to social services. Main results include:

  • the provision of new agricultural inputs and technologies to improve and diversify the sector;
  • increased productivity levels;
  • the creation of new co-operative societies;
  • increased job opportunities, especially for young people and women;
  • a rise in the level of income;
  • greater numbers of young people drawn to the agriculture sector;
  • interface with the HSE Division in re-vegetation of crude oil-impacted soils, geo-database network system, biogas projects and agriculture;
  • promotion of agricultural studies in secondary schools through the organisation of an annual agricultural-science quiz competition and the provision of scholarships/grants to the winners.

Quantifiable achievements:

  • more than 37,000 farmers have been directly contacted the start of the project and the present day;
  • about 200,000 bundles of improved cassava varieties and 600,000 of improved-seed yam have been produced and supplied;
  • hatchery capacity to produce and distribute more than 2 million fish fingerlings per year;
  • more than 265 viable co-operatives and women’s/youth associations have been created and helped to set up processing units with the aim of enhancing their socio-economic prospects – including 40 complete cassava processing lines, 10 oil-palm processing lines/warehousing, 1 sugar-processing plant, 2 water-purification and packaging units and 2 cassava-chipping plants;
  • 130 multifunctional toolkits have been provided to help with land preparation and the transportation of produce – the resulting reduction in manual labour encouraging young people into agriculture;
  • annual revolving micro-credit facilities of more than NGN145m to co-operative societies/women’s and youth associations in the Rivers, Imo, Delta and Bayelsa States;
  • management of the integrated young people’s vocational/technical training scheme aimed at providing selected youths of NAOC host communities with the necessary skills for the establishment and efficient management of small-scale industries. About 3,800 young people have been trained and successful entrepreneurs equipped with starter packs.

In terms of social impact, the following have been achieved:

  • accolades to NAOC from Federal/State Government in recognition of its effective corporate social responsibility;
  • acknowledgment of the role played by the GRP in improving livelihoods at a local community level, thus strengthening the social licence to operate and providing indirect generation/circulation of income through auxiliary service delivery;
  • development and transfer of agro-technological skills through training, orientation, etc.

Socio-economic development

Over the years we have carried out hundreds of projects in the fields of health, agricultural development, education, environmental protection and culture. In both 2014 and 2016 we received the Local Content Operator of the Year Award, presented by the Petroleum Engineering and Technology Association of Nigeria (PETAN), an association of local businesses, in recognition of our commitment to developing effective initiatives to stimulate potential in the area and help providers of goods and services reach the high standards required by the oil and gas sector.

Health

In the Niger Delta Eni has traditionally supported important public health initiatives such as the Roll Back Malaria programme for children and pregnant women and the UNICEF project to prevent mother-to-child transmission of HIV. It is also a contributor to the Global Fund to Fight AIDS, Tuberculosis and Malaria. The company has been focussing its attention on improving access to primary healthcare services, in particular addressing the limited supply of adequate and appropriate services at community level in many places within the Niger Delta. In 2016, health centres were built in three communities with the aim of improving access to primary healthcare for about 9,000 people.

Access to energy

For us, access to energy is synonymous with social inclusion and the guarantee of a dignified life. For this reason, contributing to the development of local energy systems is a key part of the company’s co-operation strategy. Energy is the lever for sustainable development because it increases the possibility of women’s empowerment, the creation of safe urban environments and the protection of ecosystems and biodiversity. The contribution NAOC JV is making in the energy sector – fostering access to energy for the Nigerian population – can be categorised according to four main activities:

  • energy supplied to communities by connecting them to NAOC JV power stations;
  • communities assisted to hook up to the national grid;
  • energy supplied to communities through dedicated off-grid systems;
  • energy and gas supplied to independent power projects.

 

Communities connected to NAOC JV power stations

The NAOC JV power stations that provide energy to surroundings communities are:

  • Swamp Area: Ogboinbiri Flow Station, Obama Flow Station, Brass Terminal and Tebidaba Flow Station
  • Land Area: Ob-Ob Gas Plant, Ebocha Oil Centre, Oshie Flow Station, Kwale Gas Plant and Okpai Independent Power Plant.

 

The power capacity made available to nearby communities in 2016 is as follows:


NAOC JV facility

Communities served

Power capacity (MW)

Ogboinbiri Gas Plant

Ogboinbiri

0.6

Obama FS

Akakumama; Dorgu-ewoma; Ologo-ama; Eminama; Okigbene; Fierebaghegbene; Epebu; Nbukiri; Iwokiri;

1.3

Brass Terminal

Town Brass; Okpoama, Ewoama

4.0

Ob-Ob Gas Plant
Ebocha Oil Center

Omoku; Obrikom; Etekwuru; Okwuzi; Aggah; Mgbede; Ebogoro; Okpurukpuali; Obie; Egbema;

 

26

Oshie FS

Ukpelede; Ogboko; Akara-olu; Emezi 2;

0.8

Kwale Gas Plant

Beneku, Aboh and Abalagada

2

Tebidaba FS

Okoron-ama

0.08

Okpai IPP

Okpai-Oluchi, Umuagulu, Obodoyibo, Obeze and Ashaka

3.2

TOTAL

36 communities

37.98

Power distribution from NAOC JV facilities as of December 2016

 

Communities connected to the national grid

Many electrification projects consist of connecting communities to the existing national grid. This is achieved through initiatives at the transmission and distribution level ­– providing transformers or electric lines, for example. The following table1 shows both completed and ongoing projects as of March 2017.


Type of project

Communities served

Status

Connection to national grid – provision of transformers

Aligwu

Completed

Connection to national grid – supply of electrical materials (transformers and accessories) for electrification project/phase 1.

Umusadege

Completed

Idu Osobile Electrification Extension and transformer installation

Idu Osobile

Completed

Connection to national grid – Ogoda Community electrification and installation of a 500KVA, 33/0.4KV transformer

Ogoda

Completed

Umusadege electrification upgrade – supply of electrical materials for electrification project/phase 2.

Umusadege

Completed

Connection of Oshie host communities to national grid 33KV under Ahoada West Local Government Area

Enito 1; Enito 2; Oshie; Akaraolu; Ukpeliede; Okpoko; Emezhi 1; Emezhi II

Ongoing 90%

TOTAL

12 communities

 

 

 

 

Energy supply through community-dedicated off-grid systems

A number of communities have been provided with generators by NAOC JV.
In the Land Area there are 20 generators installed for a total power capacity of 4.89MW, while in the Swamp Area there are 38 generators installed for a total power capacity of 9.5MW.
Ongoing projects in 2016 are listed below:



Location

Community

Power capacity (KW)

Start year

Status

 

SAR

Okoron-Ama

148

2013

90%

Ikebiri III (Opuadino)

80

2015

80%

Krokrosei

400

2015

85%

On-going generator projects as of December 2016

 

Energy and gas supply to independent power projects

NAOC JV supplies energy to the Power Holding Company of Nigeria (PHCN) through its Okpai independent power plant and supplies gas to the Rivers State Government Power Plant. See data below for December 2016:


Year

Gas consumption (MMScm)

Energy generated (MWh)

Energy billed to PHCN (MWh)

2011

564.8

2,986,405

2,920,144

2012

561.6

2,995,110

2,926,479

2013

549.95

2,841,252

2,773,924

2014

629.55

3,338,478

3,263,892

2015

562.61

2,665,490

2,601,711

2016

551.21

2,622,060

 


Year

Gas delivered to the power station from Ob-Ob gas plant (MMScm)

Installed capacity at the power station

Available capacity

2012

93.5

150MW

25MW

2013

58.46

150MW

100MW

2014

65.75

150MW

100MW

2015

84.45

150MW

100MW

2016 (gen–ott)

135.69

150MW

100MW

Figures for Rivers State Government Power Station

Environment

For several years, Eni has been running a programme to reduce gas flaring in Nigeria through its subsidiaries NAOC, AENR and NAE. The results are impressive: compared to 2007, gas flaring has fallen by more than 80 per cent. This is largely thanks to major gas recovery projects, predominantly involving the installation of new compression systems that capture the gas that would once have been flared. It is then sent to gas liquefication (LNG) plants for export to power stations and the petrochemical sector for the domestic market or injected back into gas fields.

One of the most important gas-flaring reduction projects currently underway involves the Okpai power station, where the installed capacity is being doubled from 480MW to approximately 1GW. This will allow better use to be made of the gas while at the same time increasing the amount of electricity produced in the country, which is currently lacking in this form of energy.

In Nigeria, oil spills caused by sabotage are a common event and are devastating for the ecosystem and the socio-economic fabric of the country. NAOC, along with other companies in the sector, has fallen victim to the problem, which is responsible for 87 per cent of spills in recent years.

NAOC JV has put various prevention and response measures in place to restrict these acts of vandalism. They involve:

  • aerial surveillance of the most important pipelines, with several flyovers a day
  • improved land-based surveillance of facilities resulting from an increase in the number of onsite surveillance staff and better monitoring systems, with cameras placed at critical locations at the main sites
  • prompt closure of wells and/or flow stations in the event of a spill
  • deployment of innovative anti-intrusion technologies to discourage the phenomenon
  • optimising the procedures followed by the emergency response team.

There was a 32 per cent fall in sabotage cases in 2016 compared to 2015, showing that these preventative measures have been effective.

Grievance procedure

We have adopted a grievance procedure – a system for the collection and management of sensitive issues with regard to standards and local customs, consistent with the Code of Ethics – to facilitate the identification of solutions and contribute to corporate risk management. This tool is part of a broader strategy of stakeholder engagement aimed at improving relations, allowing for more responsive and responsible management and contributing to long-term business prospects and the wellbeing of local communities. In Nigeria, the community relations manager conducts mediation activities to prevent or resolve disputes in order to ease the relationship between Eni’s business operations and local communities. Key results include: compensation for spills caused by the malfunction of equipment and related remediation activities; the preparation of agreements for the realisation of local community initiatives; and resolution of complaints raised by local communities for Eni’s construction activities.

Transparency

EITI implementation in Nigeria began in 2004 with the launch of the Nigerian Extractive Transparency Initiative (NEITI), which became law in 2007, highlighting the commitment of the Federal Government to implementation. The country was declared “EITI compliant” in 2011. Eni is not a direct member of the National Stakeholders Working Group (NSWG) but an indirect member through the Oil Producers Trade Sector (OPTS) of the Lagos Chamber of Commerce.

EITI implementation in Nigeria began in 2004 with the launch of the Nigerian Extractive Transparency Initiative (NEITI), which became law in 2007, highlighting the commitment of the Federal Government to implementation. The country was declared EITI compliant in 2011. Eni is not a direct member of the National Stakeholders Working Group (NSWG), but an indirect member through the Oil Producers Trade Sector (OPTS) of the Lagos Chamber of Commerce.


Within the National Stakeholders Working Group of NEITI, made up of representatives of the public and private sectors, the OPTS represents all oil-producing companies. The OPTS is currently represented by ExxonMobil. Eni has always promoted and supported the EITI in the various evaluation cycles conducted between 1999 and 2012. The final report, based on data for 2012, was published in March 2015. The country took part in the pilot project launched by EITI on beneficial ownership (organisational transparency).


Consequently, in the EITI report, prepared in accordance with the EITI Standard, a section devoted to the subject has been included. NEITI has also discussed with the Department of Petroleum Resources, which regulates the oil and gas sector in the country, the opening up to the public of national registers from which the information on organisational transparency was derived. In 2015, five meetings of the local multi-stakeholder group were held.



Notes

1 Interventions status related to hooking up to national grid as of December 2016

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