Introduction
Diezani Allison-Madueke was the surprise choice to head sub-Saharan Africa’s biggest oil and gas exporter when Goodluck Jonathan, then acting president, unveiled his cabinet April 2010.
The new minister’s principal task was to bring the long-delayed Petroleum Industry Bill – the most ambitious overhaul in the industry’s 50-year history – into law. This she could not do in the time she has headed the ministry.
Agenda for the Gas Sector
She, however, scored some points in some other areas. In the gas sector, the ministry concluded the implementation of its most aggressive reform of domestic gas pricing and gas-to-power pricing was revised to more sustainable commercial levels.
A new framework for the negotiated pricing arrangement between wholesale local distribution companies and end-user manufacturing industries has also been concluded and is now being implemented. These new pricing arrangements is meant to intensify supply growth from upstream gas suppliers, ensure predictability, affordability and availability of gas for the manufacturing sector as well as create a platform for sustained economic growth in the country.
Further progress is being made in the negotiation and implementation of world-class bankable gas supply agreements (GSPA) for the Nigerian market even as GSPA negotiations continue with the Power Holding Company of Nigeria (PHCN) as well as the Niger Delta Power Holding Company of Nigeria.
This development gradually entrenches a robust process for gas contracting in the Nigerian domestic market that will assure bankability.
Gas production and supply have reached an all-time-high and with the conclusion of negotiations, Pan Ocean will supply additional 60mmcf/d of gas into the domestic market as soon as the power sector is in a position to take the additional gas.
In the oil sector, following the aggressive effort on the Refinery Revitalization and Domestic Production of Products, the Warri, Kaduna and Port Harcourt refineries are now operational with major repairs on product evacuation infrastructure concluded.
This resulted not only in an increase in availability of pipelines and reduced dependence on road trucking but has also led to increased utilization of depots that were hitherto idle at Ibadan, Ore, Ilorin, Benin, Kano and Jos.
it was also under her watch when the first ever Nigerian Content Law to Expand Local Capacity was signed by President Jonathan.
The Minister, at a press briefing said the focus is to ensure expeditious implementation of the Nigerian Gas Master Plan to attain clear-cut short-term and some medium term objectives as well as to position Nigeria as a major player in the global gas market.
This would require, she said, securing the Final Investment Decision (FID), of the Brass LNG project by the end of 2010 while refocusing on the Olokola LNG project.
A major milestone was achieved in the area of gas to power pricing to boost investment in the sector.
Explaining the newly approved gas pricing regime, the Minister said the price of gas to power was to increase from two cents ($0.2) per mmbtu of gas to $1/mmbtu by the end of last year.
The price would graduate to $1.50/mmbtu by 2011 and $2/mmbtu by the end of 2013, adding that beyond 2014, it would increase based on inflation rate.
Key Changes in the Ministry
One of the first actions of Madueke as a minister was to announce major changes in the Ministry aimed at repositioning the Nigerian National Petroleum Corporation, NNPC and the Department of Petroleum Resources, DPR for greater efficiency in line with the aspiration of the then Acting President, Dr Goodluck Ebele Jonathan, for the oil and gas industry in Nigeria.
The changes which affected three Group Executive Directors in the NNPC also witnessed the movement of some key officers in some of the NNPC subsidiaries.
Under the new arrangement, Alhaji Aminu Baba-Kusa, former GED Commercial and Investment was made the GED Special Services while Dr. Attahiru Yusuf, former GED Corporate Services was appointed GED Commercial and Investment. Also Engr. Faithful Abbiyesuku former GED Engineering and Technology emerged the new GED Corporate Services. Engr. Billy Agha former Director of the DPR was appointed GED E&T while Andrew Obaji former Deputy Director of DPR was appointed the new Director of the DPR.
Sam Okeke former Group General Manager, New Business Division of the NNPC swapped positions with Reginald Stanley the former Managing Director of the Pipelines and Product Marketing Company, PPMC.
Also Abiye Membere former Executive Director Operation, Nigerian Petroleum Development Company, NPDC was made Managing Director of the Company. Olakunle Olaosebikan the former MD of the Company was moved to the NNPC New Frontiers on Exploration Services (NFES) under the GED Exploration, as the MD.
Morrison Fiddi former General Manager, Production Sharing Contracts of the National Petroleum Investment Management Services, NAPIMS was made the new GGM of NAPIMS while Dr. Ayo Balogun the former GGM was moved to head the newly created International Trading Company, ITCO, as Managing Director .
Christopher Osarumnwese was appointed the new GGM, Human Resources while Godwin Jedy-Agba, former General Manager, Commercial, Crude Oil Marketing Division, COMD was made the GGM of the Division. Anthony Ogbuigwe was made the new Managing Director of Port Harcourt Refining Company, PHRC. Also Mr. Vodka Mukoro was confirmed as GED in charge of Gas and Power.
The Minister also announced the confirmation of all the GEDs who have been functioning in acting capacity.
OPEC’s First Female Minister-Member
Madueke made history when she attended the meeting of the Organisation of Petroleum Exporting Countries (OPEC) on, Thursday October 14, 2010.
She attended the OPEC meeting for the first time and as OPEC’s first female minister-member. She is also Nigeria’s first female Petroleum Minister. She headed the Nigerian delegation to the conference.
The OPEC conference afforded Alison-Madueke a unique opportunity to highlight the turn-around achievements of her ministry and the President Goodluck Ebele Jonathan-led government, especially in the oil and gas sector.