A STUDY OF THE NIGERIAN PETROLEUM RETAIL MARKET

A STUDY OF THE NIGERIAN PETROLEUM RETAIL MARKET

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

There has been a relative slow rate of growth in the Nigerian Petroleum sector for past decades with a far reaching influence of foreign presence. It is a well known fact that the Petroleum sector in any economy requires great amount of technology, capital with seasoned and experienced manpower for national development, however all of these are insufficient in the Oil and Gas Industry and Nigeria as a whole.

As of today 2014, the Oil and Gas industry is the mainstay of the Nation’s Economy with other sectors of the economy relying on it to function. The nation is sustained on revenue from oil and gas and this roughly accounts for about thirty percent (30%) of Nation’s Gross Domestic Product (GDP)and an estimated ninety percent (90%) of Nigeria’s foreign exchange earnings in the early 90s (Davidson, 2003).

Michael (2003) posits that the Nation’s Petroleum Industry generated about $231billion in rents, or $1900 for every man, woman, and child and oil has annually produced over ninety percent (90%) of Nigeria’s export income. In the year 2000, the Nation got over 99.5% of its export income from oil, making it the world’s most oil-dependent country. The role of oil and gas in the Nigerian economy cannot be downplayed as it has consistently maintained its position as the most active, ever changing and thriving sector of the economy and has been the mainstay of the nation’s economy since gaining independence (Egbuna, 2004).

According to Hallowey (1994) in every industry, challenges exist for business and sales of goods and services irrespective of set goals. Challenges may be associated with price fluctuations in the economy, logistics, marketing, product transport and storage etc. The Nigerian oil and gas sector is not totally free from these challenges in the handling and sales of petroleum products. Just like every other sector of the oil and gas business, distribution and marketing of products takes place on a vast global scale. Hundreds of companies and individuals daily buy these products from thousands of retail outlets all over the nation, with number of consumers running into millions.

The Nigerian National Petroleum Corporation (NNPC)markets refined products like:

Premium Motor Spirit (P.M.S.)
Low Power Fuel Oil (L.P.F.O.)
Dual Purpose Kerosene (D.P.K.)
High Power Fuel Oil (H.P.FO.)
Lubricating Oil.
Cooking Gas etc.
Petroleum products are marketed by indigenous and multinational oil companies like Total Fina Elf, Exxon Mobil, Agip National Oil, African Petroleum, Oando etc. Notwithstanding government best efforts at improving petroleum products distribution and retail marketing, challenges of insufficient and irregular product distribution among others still besiege petroleum product marketing in the country with the situation getting worse with the recent premium motor spirit (PMS) subsidy removal.

This gave rise to influx of independent marketers into the scene as a way to proffer solutions to the numerous challenges and help stem the tide of inadequate petroleum products availability, distribution and marketing in the country. Independent marketers were given rights to play their part in the sector so as to bridge the gap created by distribution logistics and improve standard of living of Nigerians, this was a welcome development because products distribution in the country had been epileptic and unreliable until the independent marketers’ appearance on the scene.

Shortage of petroleum products experienced in the country in the early 70s was attributable to paucity of distribution network. The government of the day responded to these problems in two ways:Encouraged well meaning citizens to invest in petroleum products marketing business and build more depots to bridge gaps created by transportation deficit,
Promulgated laws and empowered various security agencies to tackle and control oil theft and pipeline vandalization with the setting up of various task forces to make sure petroleum products reach designated location without being hijacked or diverted.
This research work is concerned mainly with retail marketing of specific petroleum products such as diesel, kerosene, premium motor spirit, gasoline and domestic gascommonly used in domestic and socio-economic settings more than any other product of petroleum (crude oil).

1.2 STATEMENT OF THE PROBLEM

Participatory and regulatory rates of government to stabilize marketing of petroleum products have yielded good results but its resultant effects to equate demand with supply of these products have been unsuccessful with pattern of distribution constantly in the forefront of continuous discourse and debate, since diesel, kerosene, gasoline are described as one of the bedrocks of the Nigerian economy.

Challenges however still exist in product distribution and marketing in the nation with cases such as;

Inaccessible depot location: many towns and villages find it difficult to get supply of petroleum products due to distance between supply source and their location creating a false sense of unavailability of products in form of an acute shortage.

Despite best of efforts made to avoid problems, numerous challenges still plaque product distribution and marketing such as transportation difficulties in moving products safely and quickly to point of need occasioned by deplorable road conditions and lack of railway or cargo movement systems, unending electricity failures, lack of adequate storage facility with very low and poor refining capacity of refineries,finance inadequacy and improper funding, poor distribution channels etc. Recently, these challenges became more apparent as occasioned by the surge in crime wave in the country in form of oil theft and pipeline vandalism, militancy in the oil producing states with massive destruction of existing infrastructure, inflation rates in the struggling economy, incessant strike action by petroleum sector workers; paucity of adequate equipments occasioned by lack of maintenance cultureetc.

Becauseof excessive usage and increased demand for petroleum products during festive periods, demand exceeds supply leading to acute shortage and scarcity with some retailers cashing in on the opportunity to make more cash by hiking fuel prices, hoarding of products etc. which leads to long queues at filling stations across the nation.

Various studies conducted have shed light on the way in which these challenges affect the retail marketing and distribution of petroleum products but no specific study has been carried out on retail marketing of petroleum products commonly used such as kerosene, gasoline and diesel. This study is therefore focused on identifying challenges of retail marketing of the petroleum products under reference with the aim of proffering possible solutions.

1.3 RESEARCH QUESTIONS

The purpose of this study is to determine the associated problems in the Nigerian petroleum retail market. Based on the purpose of the research stated above, the following research questions have been formulated:

(1) What are the problems associated with Nigerian petroleum retail market?

(2) How does irregular supply of petroleum products affect the economy of Nigeria?

(3) To what extent does transportation affect petroleum retail market in the county?

(4) To what extent does a good distribution channel enhance petroleum retail market and sustain economic activities in the country?

1.4 RESEARCH AIM AND OBJECTIVES

Despite acclaimed progress made in management of marketing and distribution of petroleum products, the maximum potential of the industry is below standard with its operation at low level capacity. Due to these shortcomings, the industry is far from realizing set goals and objectives in the nation’s economy. This unfulfilled mission is apparent with the most apparent problem being the ineffectual retail marketing and distribution of petroleum products in Nigeria.

This study therefore aims at identifying challenges in the retail marketing of petroleum products with an attempt to proffer solutions to such problems by looking critically at activities involved.

The following objectives are stated:

(1) Determining factors that influence policy on establishment of petroleum retail outlets in Nigeria.

(2) The adequacy of distribution channels in the country.

(3) Studying the policies of various marketing firms in granting franchise rights to set-up outlets.

(4) Analyze specific activities of various dealers,identify their challenges and determine their role as it relates to products scarcity and availability.

1.5 SIGNIFICANCE OF STUDY

The significance of this study is stems from the fact that the petroleum industry is the bedrock of our economy.

Therefore the economic importance of petroleum retail market attracts the attention of government bodies, institutions, general public, international oil companies as well as independent marketers.

The information generated by this study would help the government carry out a more purposeful and result oriented planning; evaluation and control of the petroleum industry with the aim of enhancing its contribution in improving the Nigerian economy.

Benefits derivable from this research work by the researchers and the consuming public points to the significance of the study.

(1) This work is Associated Problems in petroleum retail marketing in Nigeria

(2) The work will further expose the researcher to problems militating against retail marketing petroleum products in Nigeria and possible ways to ameliorate these problems.

(3) For the producers, this study will educate them on their perception of end users of petroleum products, pricing policy, distribution network effectiveness and the need to improve on product distribution logistics.

(4) Dealers and oil companies through this study findings will know consumers needs in terms of services offered and product availability as at when required.

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A STUDY OF THE NIGERIAN PETROLEUM RETAIL MARKET

OIL PIPELINE VANDALIZATION AND THE SOCIO-ECONOMIC EFFECTS IN NIGERIA’S NIGER DELTA REGION

ABSTRACT

With the discovery of crude oil and natural gas (ONG) in the Niger Delta in 1956, it was expected that it will usher in the much needed sustainable development in the region. Whereas this did not happen, the activities of the multinational oil companies (MNOCs) operating in the region continued to pollute and degrade the environment so much that it disarticulated the local economy of the people. The unmet expectations coupled with the environmental degradation created frustration that consequently led the people, particularly the youths to vandalize oil pipelines. This paper examined the effects, as well as the causes and manifestations of oil pipeline vandalization in the region and country. The paper went further to discuss three celebrated cases on pipeline vandalization to show its consequences on the local people, and national economy and security. It also points out several lessons and recommends the involvement of the host communities into the oil economy for them to guarantee the safety of oil installations in the country.

INTRODUCTION

Since the discovery of crude oil and natural gas (ONG) in the Niger Delta Region in 1956, the socio-economic and political well being of the people of the region has deteriorated.[1] This is due mainly to environmental degradation caused by unregulated and abusive ONG exploration and production activities coupled with persistent political corruption which have contributed to endemic poverty and unmet development objectives. In the absence of jobs and sustainable development, criminal and political violent activities in the Niger Delta have steadily increased.[2] Given the proximity and accessibility of the region’s energy infrastructure to inhabitants, oil pipeline vandalism and illegal bunkering has become a key issue that has played a role in fuelling criminality and conflict, caused population displacement, and encouraged the social disintegration of communities.

The process of oil and natural gas (ONG) exploration, extraction, and transportation often impinge on the lives of the people and their environment, the negative effects are usually taken for granted by the Multinational Oil Companies (MNOCs) and the federal government until there is protests. The protests are then suppressed through obnoxious laws. This frustrates the people and makes them intensify the level of their protests, and eventually vandalize the pipelines conveying the crude oil. Ayida [4] likens this vicious cycle to the “rise and fall of Nigeria.”To Ibaba and Olumati, the vicious cycle is perpetrated that the activity is carried out by “individuals, and not communities”, and the “economic motive is central in their actions [5].”

They emphasized that, while serving a social purpose in terms of protesting against deprivation, the economic gains from vandalization is paramount in the minds of the actors. Arguing in the same vein, Okoko contends that ‘… those who support (pipeline vandalization) feel justified in line with the national syndrome of national cake-sharing, besides the prevailing feeling of discontent occasioned by neglect and deprivation.” [6] Be that as it may, the act is perpetrated by few persons, commonly known as militants, but the entire community becomes victim in one form or the other. [7]While pipeline vandalism and illegal bunkering have been featured in the literature on the Niger Delta, the various phases, causes, end effects are less understood. [8] This raises the question this study attempts to address; namely: what factors are responsible for oil pipeline vandalization?

Who are the major actors, causes, and manifestations?

What are the effects of vandalization on fueling energy and security crisis in the country?

What are the frameworks to address and manage the consequences associated with oil pipeline vandalization?

Thus, this paper aims to fill this gap by examining the social, economic and political effects of oil pipelines vandalization and in doing so, it will buttress the various phases and consequences of pipeline vandalization over the years with celebrated case studies. This paper begins by providing a brief overview of key definitions and the analytical approach. Following this, we will delve into the discussion on pipeline vandalization and distinguish the key phases and consequences for the host communities and other stakeholders.

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OIL SPILL INCIDENT AND MANAGEMENT IN NIGER DELTA

OIL SPILL INCIDENT AND MANAGEMENT IN NIGER DELTA

CHAPTER ONE

1.0 Introduction

Oil spillage is a global issue that has been occurring since the discovery of crude oil, which was part of the industrial revolution. The total spillage of petroleum into the oceans, seas and rivers through human activities is estimated to range 0.7-1.7 million tons per year .Oil spills have posed a major threat to the environment of the oil producing areas, which if not effectively checked can lead to the total destruction of ecosystems. The Niger Delta is among the ten most important wetland and marine ecosystems in the world. The oil industry located within this region has contributed immensely to the growth and development of the country which is a fact that cannot be disputed but unsustainable oil exploration activities has rendered the Niger Delta region one of the five most severely petroleum damaged ecosystems in the world. Studies have shown that the quantity of oil spilled over five decades was a least 9-13 million barrels, which is equivalent to 50 Exxon Valdez spills (FME, et. al. 2006). In 1956, Shell British Petroleum (now Royal Dutch Shell) discovered crude oil at a village Oloibiri in Bayelsa state located within the Niger Delta of Nigeria (Anifowose, 2008; Onuoha, 2008) and commercial production began in 1958. As of 2006, there are eleven (11) oil companies operating one hundred and fifty- nine (159) oil fields and one thousand four hundred and eighty-one (1,481) wells in the Niger Delta in Nigeria (The Guardian, 2006). Human activities and those of oil exploration and exploitation raise a number of issues such as depletion of biodiversity, coastal and riverbank erosion, flooding, oil spillage, gas flaring, noise pollution, sewage and waste water pollution, land degradation and soil fertility loss and deforestation, which are all major environmental issues. Oil exploration and exploitation has been ongoing for several decades in the Niger Delta. It has had disastrous impacts on the environment in the region and has adversely affected people inhabiting that region. Odeyumi and Ogunseitan (1985) wrote a paper on the growth and development of the oil and petrochemical industry in Nigeria with emphasis to the notable cases of pollution disturbances during the 25 years of its existence, highlighting causes and effects on the social, economic, agricultural and ecological characteristic on human and other biotic occupants of the oil region. Recommendations were given as guide, for the activities of the Nigerian National Petroleum Coperation (NNPC) in the prevention, control, treatment of oil and petrochemical pollution. Celestine (2003) discussed the effects of intensive oil resource extraction on the environment of the oil bearing Niger Delta communities and environmental problems such as resource degradation, pollution and poverty in the Niger Delta communities. Tolulope (2004) wrote on the oil spillage incidences in Nigeria with its negative implication to the environment, emphasizing on the extent of hazards and the tendency of petroleum products to pollute the environment. Twumasi and Merem (2006) explored the application of GIS and remote sensing in the tropical coastal zone environment with emphasis on the environmental impact of development in the Niger Delta region. The paper presented a vivid overview of issues, environmental effects and factors. The results showed decline in water bodies, mangrove forest and several cases of oil spills. Chukuezi (2006) wrote a paper on the implications of oil exploration and environmental degradation to sustainable development in the Niger Delta. Explaining this has culminated into poverty, restiveness and human insecurity in the region. In general, the assessment of other researchers into this issue acknowledges that the oil industry has undoubtedly brought economic benefit to the Nigerian state but has left environmental pollution problems with visible physical destruction. The prevention of environmental degradation is a task that must be pursued vigorously. Amu (1997) said that the identification of problems, design and applying appropriate sanctions is a major issue that needs to be resolved and has to start with change in the present judicial system and attitude towards the litigation of environmental issues as well as a reform in environmental policies.

1.1 Background on Nigeria and the Niger Delta Region

Nigeria has a coastal line of approximately 85km towards the Atlantic Ocean lying between latitude 4°15′ to 4°50′ and longitude 5°25′ to 7°37′ with a land mass of about 28000sq/km area within the coastal region. The surface area of the continental shelf is 46300sq/km. The coastal areas consist of freshwater swamp, mangrove swamp, beach ridges, sand bars, lagoons marshes and tidal channels. Nigeria has a total land mass of 923,768sq/km; 918,768sq/km being terrestrial land and 13000 sq/km being aquatic (CIA World Fact Book). The coastal area is humid with a mean average temperature of 24-32°C and coastal area has an average annual rainfall ranging between 1,500-4,000m (Kuruk, 2004). Nigeria has two large rivers; the Niger-Benue and the Chad River. There are several rivers that channel into the Atlantic Ocean directly, all other flowing waters flow into the Chad basin or into the lower Niger to the sea eventually (Kuruk, 2004).The Niger Delta is located in the Atlantic coast of Southern Nigeria and is the world’s second largest delta with a coastline of about 450km which ends at Imo river entrance (Awosika, 1995). The region is about 20,000sq/km as it is the largest wetland in Africa and among the third largest in the world (Powell, et al., 1985; CLO, 2002; Anifowose, 2008; Chinweze and Abiola-Oloke, 2009). 2,370sq/km of the Niger Delta area consists of rivers, creeks, estuaries and stagnant swamps cover approximately 8600sq/km, the Delta mangrove swamp spans about 1900sq/km as the largest mangrove swamp in Africa (Awosika1995). The Niger Delta is classified as a tropical rain-forest with ecosystems comprising of diverse species of flora and fauna both aquatic and terrestrial species. The region can be classified into four ecological zones; coastal inland zone, freshwater zone, lowland rain-forest zone, mangrove swamp zone and this region is considered one of the ten most important wetlands and marine ecosystems in the world (FME, et al., 2006; ANEEJ, 2004). The Niger Delta consist of the following states Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Ondo, Imo and Rivers respectively.As of 1991 from the National Census estimated about 25% of the entire Nigerian population lives within the Niger Delta region (Twumasi and Merem, 2006; Uyigue and Agho, 2007). The Niger Delta region has a steady growing population of approximately 30 million people as of 2005, accounting for more than 23% of Nigeria’s total population Twumasi and Merem, 2006; Uyigue and Agho 2007).

1.2 JUSTIFICATION OF STUDY

The subject matter of the study is oil spill incident and management in Niger Delta.

1.3 OBJECTIVES OF THE STUDY

To examine the causes of oil spillage in the Niger Delta.

To identify possible measures on how to manage oil spill in the area

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OIL SPILL INCIDENT AND MANAGEMENT IN NIGER DELTA

PUMP CAPACITY DETERMINATION FOR TWO-PHASE VERTICAL FLUID FLOW

PUMP CAPACITY DETERMINATION FOR TWO-PHASE VERTICAL FLUID FLOW

CHAPTER ONE

INTRODUCTION

1.0 Background of Study

In the production system, Pressure drop has been a major issue in the field. These pressure drops could be experienced as a result of valves and fittings installed, due to friction along pipe sections or in lifting fluid up to a certain level.

As these pressure drops are identified, and the economic flow rate of a reservoir fluid is known, pumps may be employed to reduce the effect of pressure drop and maintain a given fluid flow rate for good economic recovery. These pump applications are usually analyzed to determine an optimum Hydraulic pump requirement for a given fluid system and pipe diameter. It can form one of the basic aspect to be considered during well completion in selecting production tubing diameter.

In general, a pump is a device used to transport liquids, gases, and slurries. However,the term pump is usually used to refer to liquid handling equipment. The purpose of the pump is to provide a certain pressure at certain flow rate of a process stream. The pressure requirement is dictated by the process and piping involved, while the flow rate is controlled by the required capacity in the down hole units.

At least one out of every 10 barrels of oil lifted in the world’s oil and gas operations are produced using an Electric Submersible Pump (ESP). Typical installations produce liquids in the 2,000 to 20,000 bpd range,making the ESP an effective and economical means of lifting large volumes of fluids from great depths under a variety of well conditions.

There are several types of pumps used for liquid handling. However, these can be divided into two general forms: positive displacement pumps (including reciprocating piston pump and the rotary gear pump), and centrifugal pumps. The selection of the pump type depends on many factor including the flow rate, the pressure, the nature of the liquid, power supply, and operating type (continuous or intermittent).

The power requirement for a mechanical system, like pumps and compressors, is given by the general mechanical balance equation:

P = -mWs = m 1.1

All terms in this equation take their normal meaning with m being the mass flow rate,and α a coefficient used to take into account the velocity profile inside the pipe (formulaminar α = 0.5, while for turbulent α = 1). The required work (or power) given by Pis the total work that needs to be delivered to the fluid. This work will be drawn from a motor (operated with electricity or engines). The conversion between the motor and pump power is not complete and an efficiency is defined to describe the power conversion. The efficiency is given by:The input power can be measured from the source. For example, if the pump is operated with electricity, the input power will be I×V (current times voltage). The outlet power can be determined using Equation (1.1).

1. Static head (term): the height to which the fluid will be pumped.

2. Pressure head ( term): the pressure to which the fluid will be delivered (ina pressurized vessel for example). The pressure units must be converted to lengthunits using relation.

3. System or dynamic head (F term): the energy lost due to friction in pipes, valves,fittings, etc.

1.1. Statement Of The Problem

It is important to accurately predict the pressure drop across a production system. This has been a difficult task in the oil and gas industry as the production system in real life is not homogeneous (single phase) as assumed in most theories. The reason for this is that the two-phase flow is complex and difficult to analyze. Ideally, gas moves at a much higher velocity than the liquid. As a result, the down hole flowing pressure of the liquid-gas mixture is greater than the corresponding pressure corrected for down hole temperature and pressure and this could be calculated from the produced gas-liquid ratio.

This pressure drop in a flowing (production) system could be identified using different existing correlations. Some of these correlations are empirical, mechanistic or numerical. Hagedorn and Brown is the most widely used correlation for vertical wells (Schoham, 2006). In planning well completion the tubing diameter that will give less pressure drop hence much liquid production can be selected by the use of multiphase correlation.It is also very necessary to plan for pumps in tubing size selection should need arise on future production for pumping of the reservoir fluid to optimize production.

1.2. Objectives

Determine the Hydraulic Horse Power Requirement needed to maintain production of reservoir fluid within economic limit.
The above objective can be achieved by using two-phase pressure drop correlations to determine pressure drop in selected production tubing used in the Niger Delta.

1.3. Scope of The Work

The determination of pressure drop using the selected two-phase correlations using production tubings used most often in the Niger Delta.

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PUMP CAPACITY DETERMINATION FOR TWO-PHASE VERTICAL FLUID FLOW

EGG AND SNAIL SHELL AS LOCAL MATERIALS IN IMPROVING MUD PH 

EGG AND SNAIL SHELL AS LOCAL MATERIALS IN IMPROVING MUD PH

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Far way back in 1900, while drilling an oil well in Spindle tops Texas, the drilling crew used various muddy slurry of water and clay as drilling mud. Today drilling fluids are still called drilling mud, but engineers no longer rely only on a mixture of water and clay. Instead, they carefully design compounds and mixtures with both local and foreign materials to meet specific needs of drilling operation under various drilling conditions. Modern and modified drilling fluids are truly life blood of the wells.

Drilling mud is a mixture of two or more phases consisting of a liquid phase (water, oil, or other synthetic oil) and a solid phase consisting of clay mixed with addition of certain chemical substances (additives). Drilling mud performs several functions, some of which are lubricating the bit, transporting cuttings to the surface, control of formation pressure. It is also called the life blood of the rotary drilling operation, in the sense that without it, drilling is almost impossible.

Considering the desired formation condition and reactive chemical compounds encountered by the drilling mud during the drilling operation, it is necessary to continually monitor the mud properties and prescribe possible solution to keep the fluid in good condition. Properties that must be monitored include; mud weight, viscosity, filtration properties, pH. Certain materials are used to improve these properties.

This project is concerned with enhancing the pH of drilling mud using egg shell and snail shell as local additives for the substitution of imported chemicals such as potassium hydroxide (KOH), sodium hydroxide (NaOH) . The control of pH is very essential in the drilling operation as most of the equipment used are made of metal and pH is the degree of acidity or alkalinity of a substance, hence if the drilling mud is acidic( pH less than 7), corrosion of the drilling equipment is bound to take place. Therefore when drilling operation is being performed in an acidic formation, the drill pipe, drill collars and drilling bit will corrode as a result of the acidity of the subsurface, hence the need of enhancing or improving the pH of the drilling mud have to be properly taken care of, by certain pH enhancers or modifiers.

This research therefore aims to study the suitability of egg shell and snail shell as local additives to enhance the pH of mud, both materials are easily accessible as waste and biodegradable hence using egg shell and snail shell will reduce cost and also improve waste management.

1.2 AIM AND OBJECTIVES

The aim and objective of this work is to investigate in the laboratory the suitability of egg and snail shell waste as local materials in improving the pH of mud.

1.3 SCOPE AND LIMITATION

This work is restricted only to the use of prepared samples of egg shell and snail shell as pH enhancers.

1.4 METHODOLOGY

The mode of the research to be employed in this work include review of past projects, Internet information, books, and empirical analysis in the laboratory.

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EGG AND SNAIL SHELL AS LOCAL MATERIALS IN IMPROVING MUD PH

 

DETERMINATION OF THE FLOWING BOTTOM-HOLE PRESSURE OF A VERTICAL WELL FROM SURFACE PRESSURE AND WELL PARAMETERS

DETERMINATION OF THE FLOWING BOTTOM-HOLE PRESSURE OF A VERTICAL WELL FROM SURFACE PRESSURE AND WELL PARAMETERS

CHAPTER 1

1.0 INTRODUCTION

1.1 BACKGRAND OF STUDY

Interpretation of data from Well test analysis have been based on the implicit assumption that the reservoir is a homogeneous single layer. However, the real petroleum reservoir, is a composition of layers with unique interlayer characteristics. The individual layers are usually separated from each other by an interface which could be either permeable or impermeable. Pressure behavior in this kind of vertically heterogeneous system is not necessarily like that of a single layered system and seldom reveals more than the average properties of the entire system. It is against this backdrop that this study became necessary. Well completion in such systems would be more instructive, enabling better reservoir and production engineering practice if detailed layer information is available at it prime. The petroleum industry is however interested in accurately calculating the pressure losses that occur for multiphase flow in the tubing and pipelines. Accurate predictions of pressure losses in pipes would enable proper design. Also, pressure determination in a production system in the petroleum industry is very important as it helps in the effective production of oil and gas from the reservoir but of all, the most important is the determination of flowing bottom-hole pressure as its knowledge helps in the determination of so many parameters needed for efficient production and also to avert early depletion of the reservoir. Its knowledge can also be used to prevent formation damage which could be caused by early sand production in the reservoir. Surface pressures often can be converted to bottom-hole values if adequate information is available about the wellbore system.

1.1.1 WHAT IS BOTTOM HOLE FLOWING PRESSURE

The pressure at the bottom of a working oil, water, or gas well (the Great Soviet Encyclopedia, 1979). The pressure measured in a well at or near the depth of the producing formation. For well-test purposes, it is often desirable to refer the pressure to a datum level chosen at a reference depth by calculating the pressure that would occur if the pressure measurement were made at the datum level rather than at the actual depth of the gauge(Schlumberger oilfield glossary). A knowledge of this pressure is fundamental in determining the most efficient methods of recovery and the most efficient lifting procedure, yet there is less information about these pressures than about any other part of the general problem of producing oil (Millikan and Sidwell, 1930). As earlier said, the bottom-hole pressure can be determined from surface pressures like the well head pressure if adequate information is available about the production system which can be easily gotten from well testing operations (Economides, 1979). Since the well head pressure and parameters are easily gotten from pressure transient analysis whose success depends on the accurate measurement or estimation of bottom-hole pressure (Omohimoria and Ayodele, 2013), it is therefore desirable and necessary to obtain the bottom-hole pressure from these data. This will be carried out in order to further highlight the advantages which is associated with having adequate knowledge about the flowing bottom-hole pressure of a reservoir.

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DETERMINATION OF THE FLOWING BOTTOM-HOLE PRESSURE OF A VERTICAL WELL FROM SURFACE PRESSURE AND WELL PARAMETERS

PREDICTION OF THE DEW-POINT PRESSURE OF A GAS CONDENSATE RESERVOIR

PREDICTION OF THE DEW-POINT PRESSURE OF A GAS CONDENSATE RESERVOIR

CHAPTER ONE

INTRODUCTION

1.1 Background of study

Gas Condensate Reservoir is a reservoir having low-density mixture of liquid hydrocarbons that are present as gaseous components in the subsurface (in the reservoir). It is important to recognize that some gas condensate reservoirs show condensate dropping out within reservoirs, as well as condensate production at the surface due to pressure falling below the dew-point during production. This condensate accumulation in the reservoir initially remains immobile due to inter facial forces between it and connate water within the pores of the formation until its saturation level reaches a threshold value and becomes mobile.

Initially, the gas-condensate is totally gas in the reservoir. As reservoir pressure decreases, the gas condensate exhibits a dew-point. The dew-point of a gas condensate fluid occurs when a gas mixture containing heavy hydrocarbon is depressurized until liquid is formed, that is, a substantial amount of gas phase exists in equilibrium with an infinitesimal amount of liquid phase. A pressure is reduced; liquid condenses from the gas to form free liquid in the reservoir. Normally, there is no effective permeability to this liquid phase and it is not produced. If the pressure continues to decrease, a second dew-point will be reached and the liquid can be re-vaporized. This lower dew-point pressure is usually well below the reservoir abandonment pressure; thus it would be of no interest in reservoir performance.

By definition, dew-point pressure is simply the pressure at which an infinitesimal amount of liquid is in equilibrium with a large quantity of gas. the pressure below which liquid condense out of the gaseous phase.

A phase behavior can be defined as the characteristics (changes in phase) exhibited by the gas when subjected to different temperature-pressure conditions.

During production, the hydrocarbon molecules undergo various phase and some property change, altering intermediate stages which are crucial in designing and operating the processes efficiently and optimally.

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DEW-POINT PRESSURE OF A GAS CONDENSATE RESERVOIR

ANALYTICAL STUDY OF A SMALL SCALE BIOMASS GASIFIER

ANALYTICAL STUDY OF A SMALL SCALE BIOMASS GASIFIER

ABSTRACT

Energy demand in the world today is increasing rapidly and energy generation and resources in the world are incapable of catering for this increase in demand. In third world countries such as Nigeria, energy generation is epileptic; this is evident in the electric power sector of Nigeria. Issues such as Environmental degradation and energy shortages in countries have therefore rekindled interest in alternative and renewable sources of energy. Biomass gasification is one of such sources of energy.This project is aimed at studying biomass gasification, various types of gasifier technologies and their application in the generation of sufficient amount of biogas useful for small scale activities or operations.

The methodology focuses on the design of a gasifier, stating design specifications, developing conceptual designs, design calculations and details of design of the selected concept. The chosen concept is then analyzed to ascertain the viability of the design in carrying out gasification of biomass.

Results show that reasonable amount of biogas (0.167 kmol gas/kg feed)can be generated by biomass gasification and that high temperature materials such as mild steel used in construction of the gasifier can support the thermal requirements of gasifier operations.

CHAPTER ONE

INTRODUCTION

1.1 Background to study

The world today is in a state of increasing energy demand, rising energy prices with more emphasis placed on reinforcing countermeasures to defend against the ever present problem of global warming .The result of this situation being the development of alternative sources of energy. In 2006 the U.S. Energy Information Administration (EIA) projected that the world’s energy consumption would increase by 2% per year until 2030. The EIA and other organizations project that resources will be adequate to meet the world’s growing energy needs, but many critics disagree. Issues such as climate change also undermine the credibility of such forecast .Also according to the IEA world energy outlook, the world’s primary energy supply has increased by 58% in 25 years.

The energy crisis in the world today is a major concern that the world’s demands on the limited natural resources are diminishing as the demand rises. The glaring issue being that these natural resources are in limited supply. While they do occur naturally, it can take hundreds of thousands of years to replenish the reserves. Governments and concerned organizations are working to make the use of renewable resources a priority, and to lessen the irresponsible use of natural supplies through increased conservation.

The world relies on coal, oil and gas (fossil fuels) for over 80% of our current energy needs, this being a situation which shows little sign change apparent over the medium-term without drastic policy and philosophical changes (EIA, 2006). On top of this energy demand is expected to grow by almost half over the next two decades. Understandably this may instill the fear that our energy resources are starting to run out, thus of course posing devastating consequences for the global economy and quality of life. The potential for crisis if we run out of energy is very real but seeing the occurrence of such situation isn’t in the nearest future, coupled with the ever growing size of fossil fuel reserves in the world, the importance for alternative sources of energy is being overlooked. In the past two decades proven gas reserves have increased by 70% and proven oil reserves by 40% (EIA, 2006). At expected rates of demand growth we have enough for thirty years supply. Moreover, better technology means that new oil and gas fields are being discovered while enhanced recovery techniques are opening up a potentially huge and profitable array of unconventional sources, including tar sands, shale gas and ultra-deepwater. Ultimately, the near-unlimited supply potential of renewable energy sources would ensure that the world does not fall short of its energy needs. (EIA, 2006)

The EIA further asserts that closely related to the overdependence of the world on fossil fuels is the ever growing destructive effect of such fuels on the environment and climate. Over the past century, human activities have produced and released large amounts of carbon dioxide and other greenhouse gases into the atmosphere. The majority of greenhouse gases come from burning fossil fuels to produce energy amongst deforestation, industrial processes, and some agricultural practices .Clean air is essential to life and good health but in contrast several important pollutants are produced by fossil fuel combustion: carbon monoxide, nitrogen oxides, sulfur oxides, and hydrocarbons.

The EIA further expressed thus; impacts of the emission of these pollutants include global warming, air quality deterioration, oil spills, and acid rain.Fossil fuels for all its benefits pose a severe threat to the future of the world with regards to energy generation and climatic and environmental issues whose solution will be the development and employment of alternative, renewable and clean sources of energy. Renewable energy still remains unused is most of the countries, most especially developing countries. Most of the energy comes from non-renewable sources like coal. It still remains the top choice to produce energy. Unless we give renewable energy a serious thought, the problem of energy crisis cannot be solved. Renewable energy sources can reduce our dependence on fossil fuels and also helps to reduce greenhouse gas emissions.The world’s population has now exceeded 6 billion people, and growth projections (FAO, 2000) indicate that the total population will be over 8 billion by 2030. More than half the world’s population lives in rural areas, and the vast majority of these, some 2.8 billion people, live in rural areas in developing countries. There are 2 billion people without access to adequate, affordable and convenient sources of energy. At least two-thirds of them are dependent on the traditional fuels: wood, dung and crop residues for cooking and space heating. These traditional fuels have low energy conversion efficiencies. Their use, especially in arid and semi-arid areas, can lead to environmental damage through excess stripping of forests and woodlands, and to adverse health effects due to smoke inhalation causing respiratory diseases.

Time spent by rural people in gathering and cooking with these fuels involves hard work and drudgery, and is a diversion from other economically useful activities. In 2009, about 1.4 billion people in the world lived without electricity, and 2.7 billion relied on wood, charcoal, and dung for home energy requirements (IEA, 2006). This lack of access to modern energy technology limits income generation, blunts efforts to escape poverty, affects people’s health, and contributes to global deforestation and climate change. Small-scale renewable energy technologies and distributed energy options, such as onsite solar power and improved cook-stoves, offer rural households modern energy services.

The emergence of biomass as a credible source of alternative energy is fast gaining global recognition and acknowledgement in the world today. Attributing factors to its growth owe to the fact that its availability is of no shortage as its supply is renewable coupled with the fact that its application/utilization has minimal or significant detrimental effects compared to the utilization of fossil fuel. Biomass is one of the most plentiful and well utilized sources of renewable energy in the world. According to the IEA, (2006) Biomass refers to organic matter that has stored energy through the process of photosynthesis. It exists in one form as plants and may be transferred through the food chain to animal bodies and their wastes, all of which can be converted for everyday human use through processes such as combustion, gasification and pyrolysis which releases the carbon dioxide stored in the plant material. Biomass is a renewable energy source not only because the energy in it comes from the sun, but also because biomass can re-grow or replenish over a relatively short period of time in comparison to the hundreds of millions of years that it would take fossil fuels to form through the process of photosynthesis.

Many of the biomass fuels used today come in the form of wood products, dried vegetation, crop residues, and aquatic plants. Biomass has become one of the most commonly developed renewable sources of energy in the last two decades, second only to hydropower in the generation of electricity. It is such a widely utilized source of energy, probably due to its low cost and indigenous nature, that it accounts for almost 15% of the world’s total energy supply and as much as 35% in developing countries, mostly for cooking and heating (IEA, 2006).

Biomass power is carbon neutral electricity generated from renewable organic waste that would otherwise be dumped in landfills, openly burned, or left as fodder for forest fires. When burned, the energy in biomass is released as heat. In biomass power plants, wood waste or other waste are burned to produce steam that runs a turbine to produce electrical energy, or that provides heat to industries and homes. Fortunately, new technologies including pollution controls and combustion engineering have advanced to the point that any emissions from burning biomass in industrial facilities are generally less than emissions produced when using fossil fuels (coal, natural gas, oil) (IEA, 2006).

Gasification is a process that converts organic or fossil fuel based carbonaceous materials into carbon monoxide, hydrogen and carbon dioxide. This is achieved by reacting the material at high temperatures (>700 °C), without combustion, with a controlled amount of oxygen and/or steam. Gasification is not a new technology, it was originally developed in the 1800s and is the processes used to make town gas for lighting and cooking. Small scale biomass gasifier were also used to power internal combustion engine vehicles during fuel shortages during the Second World War. It is a manufacturing process that converts any material containing carbon such as coal, petroleum coke, biomass or waste into synthesis gas (syngas). The syngas can be burned in a turbine to produce electricity or further processed to manufacture chemicals, fertilizers, liquid fuels, substitute natural gas, or hydrogen. The percentage of biomass and waste used as feedstock for gasification has been increasing in recent years. Gasification is a flexible, reliable and clean energy technology that can turn a variety of low-value feedstock into high value products, help a country reduce its dependence on imported oil and natural gas, and can provide a source of base-load electricity, substitute natural gas, fuels, fertilizers, and chemicals needed for economic growth. These amongst others are benefits biomass gasification. (IEA, 2006)

1.2 Statement of the problem

The world is in a state of increasing energy demand accompanied by decreasing availability of conventional energy sources, the bulk of these energy sources being fossil fuel. The cost of fossil fuel, inclusive of cost of procurement, processing and utilization when considered alongside the deficient power generation from this energy source especially in developing countries is of exorbitant nature . Fossil fuel is in a state of decreasing availability. This unfavorable situation when considered with the detrimental effects of fossil fuel consumption on the environment poses a long overdue problem for confrontation.Need hitherto has arisen for the discovery and development of a cheap, alternative and environmental friendly source of energy such as biomass gasification.

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ANALYTICAL STUDY OF A SMALL SCALE BIOMASS GASIFIER

MATHEMATICAL MODEL FOR LIQUID LOADING IN NATURAL GAS WELL PRODUCTION

MATHEMATICAL MODEL FOR LIQUID LOADING IN NATURAL GAS WELL PRODUCTION

ABSTRACT

Every Natural gas well ceases producing as reservoir pressure depletes. The usual liquid presence in the reservoir can cause further problems by accumulating in the well-bore and reducing production even more. There are a number of options in well completion to prevent liquid loading even before it becomes a problem. Tubing size and perforation interval optimization are the two most common methods. Although completion optimization will prevent liquid accumulation in the well-bore for a certain time, eventually as the reservoir pressure decreases more, the well will start loading. As liquid loading occurs it is crucial to recognize the problem at early stages and select a suitable prevention method. There are various methods to prevent liquid loading such as; mechanical methods (gas lift, plunger lift, pumping and velocity string installation), chemical (foamer), and mathematical simulation. This study is set out to develop a mathematical model – an improvement on previous models – ­­to prevent loading in Natural gas well production.

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MATHEMATICAL MODEL FOR LIQUID LOADING IN NATURAL GAS WELL PRODUCTION

WASTE OIL EFFECTS ON SOIL FERTILITY IN THE VICINITY OF A MECHANIC WORKSHOP

WASTE OIL EFFECTS OF ON SOIL FERTILITY IN THE VICINITY OF A MECHANIC WORKSHOP

1.0 INTRODUCTION

Used motor oil is a very dangerous polluting product. It contains PAH’s and high levels of metals. PAH’s such as benzo[a]pyrene, are well known for their high carcinogenicity. Considerable quantities of heavy metals such as Pb, Zn, Cu, Cr, Ni, and Cd are contained in used crankcase oil, these metals are highly toxic to organisms

In Nigeria, it is common among motor mechanics to dispose waste oils into gutters, water drains and soil (Okonokhua et al., 2007). Waste oils is defined as used lubricating oils obtained after servicing and subsequently draining from automobile and generator engines. Spent oils contain high percentage of aromatic and aliphatic hydrocarbons, nitrogen and sulfur compounds and metals (magnesium, calcium, zinc, lead) than fresh oils, these metals are introduced into the oil as a result of wear and tear of the engine (Mohd et al., 2011) (Mohd. Mozamil Bhat; Shiv Shsankar, Shikha, Mohammad Yunus and Shukai R. N (2011): Remediation of hydrocarbon contaminated soil through microbial degradation – FTIR based prediction. Advances in Applied Science Research 2(2): 321 – 326.).

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WASTE OIL EFFECTS ON SOIL FERTILITY IN THE VICINITY OF A MECHANIC WORKSHOP

ASSESSMENT OF SAFE AND COST EFFECTIVE METHODS TO MAXIMIZE PRODUCTION (PROFITABILITY) FROM A GAS-LIFTED FIELD

ASSESSMENT OF SAFE AND COST EFFECTIVE METHODS TO MAXIMIZE PRODUCTION (PROFITABILITY) FROM A GAS-LIFTED FIELD

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of Study

After the completion of a given well or group of wells, they are then put under production. During this phase of operation, every operator looks for means to minimize operating cost and maximize cumulative oil production in the most cost-effective manner for the entire field. This stage of operation is what is generally termed production optimization. A true optimization requires an operator to take a logical look at the field’s production systems from the sub-surface to surface facilities.

Production optimization implies striking a balance between production deliverability of the wells and demand which basically aim at increasing the rate at which a well flows fluid from the reservoir without restriction to the surface storage tank(s). One of the most common means of conducting production optimization is through nodal analysis. This is normally done to optimize production from single wells or other smaller production systems. Large complex systems demand a much more sophisticated approach to predict the response of a large complicated production system accurately and to examine alternative operational scenarios efficiently. Beggs (1991) stated that optimization is directly dependent on some functions. The functions may be a single variable or more than one variable (multivariate optimization). A well is said to be optimized when it is producing at optimum conditions with minimum problems (Bath, 1998).

Most wells upon completion in oil producing sand formations will flow naturally for some period of time. Production at this stage will be initiated by the existing reservoir pressure. This reservoir pressure will provide all the initial energy needed to bring fluid from the well to the surface. As the well produces, this energy is consumed and at some point, there will no longer be enough energy to bring fluid to the surface. The well at this state, will cease to flow. When this happens, there is need for the well to be put under some form of artificial lift method in order to provide the energy needed to bring the fluid to the surface. It should be pointed out that artificial lift systems can also be used in de-watering of gas wells to sustain production.Basically, there are two methods of artificial lift systems. These are: pumping system (electrical submersible pump, sucker rod etc.) and Gas lift system.

There are different key factors that are considered prior to artificial lift installation in the field which include analysis of the individual well’s parameters and the operational characteristics of the available lift systems. For the different pumps and lift systems available to the oil and gas industry, there are unique operational/engineering criteria particular to each system, but they all require similar data to properly determine application feasibility. Such as the inflow performance relationship, liquid production rate, Gas liquid ratio, water cut, well depth, completion type, well bore deviation, casing and tubing sizes, power sources etc. Each of the artificial lift systems has economic and operating limitations that rule out it consideration under certain operating conditions.

An extensive overview of artificial lift design considerations was presented by Clegg et al. (1993). Clegg mentioned some economic factors such as: revenue, operational and investment costs as the basis for artificial lift selection. Ayatollahi et al., (2001): Selection of the proper artificial lift method is critical to the long-term profitability of the oil well; a poor choice will lead to low production and high operating costs.For the purpose of this work, Gas-lift method will be considered with a view to optimizing production from an oil well and hence optimal production from the field.

1.1.1 Gaslift system

Gaslift is the method of artificial lift which utilizes an external source of high pressure gas for supplementing formation gas in order to reduce the bottom-hole pressure and lift the well fluids. The mechanism of gas-lift is fairly simple. Gas is injected into the tubing string to lighten the liquid column and decrease the bottom-hole pressure, which allows the reservoir to push more fluids into the wellbore. At the same time, increased flow rates in the tubing string and surface flow lines result in higher back pressure on the well and adjacent wells that share a common flow line. This in turn causes a reduction in well production rates. Therefore, lift-gas has to be carefully allocated to achieve maximum efficiency. The primary consideration in the selection of a gaslift system for lifting a well or group of wells is the availability of gas and cost of compression.

Of all artificial lift methods, gaslift most closely resembles natural flow and has long been recognized as one of the most versatile artificial lift methods. Because of its versatility, gaslift is a good candidate for removing liquids from gas wells under certain conditions. Again, Production of solids will reduce the life of any installed device that is placed within the produced fluid flow stream, such as a rod pump or ESP. Gas-lift systems generally are not susceptible to erosion due to sand production and can handle a higher solids production than conventional pumping systems. In addition to the above mentioned advantages, gaslift systems can also be employed in deviated wells without mechanical problems.

Gas compressors are usually installed for gas injection or as booster compressors. There are various methods of injecting gas into a well during gas lifting operations. But the most commonly practiced method is the continuous flow gaslift system. Here, the utilization of gas energy is accomplished by the continuous injection of a controlled system of gas into a rising stream of well fluids in such a manner that useful work is performed in lifting the well fluids.

It is important to note that a number of factors affect the performance of a well. An understanding of these factors will allow the designer of a given production system to appreciate the need to obtain all available data before his design work begins. Some of the most common factors that will be considered in view to production optimization are discussed below:

1.1.2 Productivity Index (PI) and well Inflow Performance Relationship

Accurate prediction of the production rate of fluids from the reservoir into the well-bore is essential for efficient artificial lift installation design. In order to maximize production of oil from a gas lifted system, it is often necessary to determine the well’s production. The accuracy of this determination can affect the efficiency of the design.

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ASSESSMENT OF SAFE AND COST EFFECTIVE METHODS TO MAXIMIZE PRODUCTION (PROFITABILITY) FROM A GAS-LIFTED FIELD

SIMULATION OF GAS DEHYDRATION ON AN FPSO USING ASPEN HYSYS

SIMULATION OF GAS DEHYDRATION ON AN FPSO USING ASPEN HYSYS

ABSTRACT

Natural gas is an important energy source among other sources of fossil fuels. It is usually produced saturated with water vapor under production conditions. The dehydration of natural gas is very essential in the gas processing industry to remove water vapor. Water vapor in natural gas stream, poses threat to process facilities if the dew point temperature is not properly controlled. Dehydration of natural gas is the process removal of the water that is associated with natural gases. The mixtures of water in natural gas can cause the problems for the production operation, transportation, storage and use of the gas. The four major methods of dehydration are absorption, adsorption, gas permeation and refrigeration. The process of dehydration by using TEG is absorption, involves the use of a liquid desiccant to remove water content from the gas.

The objective of this experiment is to carry out a simulation on TEG  gas dehydration unit using AspenHYSYS process software. This is important in an FPSO since the removal of water from natural gas is necessary before processing, and due to the fact that Natural gas from the reservoir contains large amount of water which can cause several problems to downstream processes and equipment. TEG was used because it has gained nearly universal acceptance as the most cost effective of the glycols due to its superior dew point depression, operating cost and operational reliability. The composition of the natural gas has been provided on a water-free basis, therefore to ensure water saturation it was mixed with water before entering the first unit operation. The units involved in this simulation are; Contractor, Regenerator, Valve, Component splitter, Cooler, Stripper and Splitter, alongside with an adjust logical tool which was used to find the point at which water is just formed (dew point with a temperature of -13.67Oc). At the end of the converged simulation, 89.92 wt% methane was recovered at a flow rate of 9177kg/hr. which might have resulted due to loss of some of the gases at certain stage of the process.

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SIMULATION OF GAS DEHYDRATION ON AN FPSO USING ASPEN HYSYS

COEFFICIENT ESTIMATION OF ISOTHERMAL OIL COMPRESSIBILITY FOR UNDER SATURATED RESERVOIR BY CUBIC EQUATION OF STATE

COEFFICIENT ESTIMATION OF ISOTHERMAL OIL COMPRESSIBILITY FOR UNDER SATURATED RESERVOIR BY CUBIC EQUATION OF STATE

ABSTRACT

Evaluation of reservoir performance for petroleum reservoirs require accurate knowledge of the volumetric behavior of hydrocarbon mixtures, both liquid and gaseous. Prior to the evaluation of reservoir performance, coefficient of Isothermal oil compressibility is required in transient fluid flow problems, extension of fluid properties from values at the bubble point pressure to lower pressures of interest and in material balance calculations. The  coefficient estimation of isothermal oil compressibility is a measure of the fractional change in volume as pressure is changed at constant temperature. It is usually obtained from reservoir fluid analysis. Reservoir fluid sampling and analysis is often expensive and time consuming operation that cannot be carried out whenever the volumetric properties of reservoir fluids are needed. Hence, engineers resort to correlations developed for estimating fluid properties including the coefficient of isothermal oil compressibility. In this project, a new mathematical model for estimating the coefficient of isothermal oil compressibility based on Soave Redlich Kwong equation of state (EOS) was developed and an Excel based program. Data from four fields were used as case study and the results obtained showed that the new coefficient of isothermal oil compressibility matches closely with the experimentally values. Also, the new correlation was validated with other models and gave the least average absolute relative error range of 2.45 – 5.19 while that of Soave Redlich Kwong EOS is between 21.2 – 27. 7 and Peng Robinson EOS is between 11.8 – 16.5.

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COEFFICIENT ESTIMATION OF ISOTHERMAL OIL COMPRESSIBILITY FOR UNDER SATURATED RESERVOIR BY CUBIC EQUATION OF STATE

THE EFFECTS OF CONTAMINANTS ON THE RHEOLOGICAL PROPERTIES OF OIL BASED MUD

THE EFFECTS OF CONTAMINANTS ON THE RHEOLOGICAL PROPERTIES OF OIL BASED MUD

Chapter One

Introduction

1.1 Background of Study

Drilling for oil and gas with a drilling mud began many years ago in the 18th century. The first reported use of a drilling fluid was noted in France in 1845, when water was pumped down a hollow boring rod, while drilling water wells to bring the cuttings from the bottom of the well to the surface. (Ikeh, 2014)

Through the 1920’s Iron oxide and Barium Sulphate (Barite) was used to increase the density of the drilling mud, thus preventing entry of the formation fluid into the borehole. The use of bentonite in 1930’s to suspend Barite formed the basis for today’s large commercial drilling mud industry. (Evabeta, 2004)

The term “drilling fluid” includes air, gas, water and mud or could either be a combination of two or all the above. The common type of fluid most often used in mud suspension of solid clay is a liquid and emulsion mud (suspension of solid and droplets of liquid). The drilling fluid is a term that comprises all the components of clay and additives suspensions used to effect the removal of rock cuttings from the subsurface (bottom hole) to the surface while drilling.

Thus, in other to enhance the drilling operation, the selected drilling mud must perform certain functions to avoid delay in operation and occurrence of associated drilling problems. Some of these functions are highlight below.

1.1.1 Functions of drilling fluids

Lubricate the drill bit, string, bearings, mud pump and drill pipe, particularly as it wears against the sides of the well when drilling deviated wells around corners.
Clean and cool the drill bit as it cuts into the rock.
Lift rock cuttings to the surface and allow cuttings to drop out in the mud pit or shakers to prevent them re-circulating.
IV. Suspend cuttings and weighting material when circulation is interrupted
Protect the formation from caving
Provide information to the drillers about what is happening down hole by monitoring the behavior, flow rate, pressure and composition of the drilling fluid.
Prevent well blow-out by including very heavy minerals such as barite (weighing agent) to counteract the pressure in the hole (reservoir pressure).
Drilling mud helps in suspension of drilling assemble and casing, delivery of hydraulic energy, being a suitable medium for logging and to being environmentally acceptable.

1.1.2 Properties of the fluid

The satisfactory performance of the functions of a drilling fluid require that the composition of the mud be more varied and it’s properties subjected to a greater control, hence the success of any drilling operation depends largely on the mud properties. These properties are;

I. Rheology: The success of the overall drilling operation is determined by the rheological properties of the drilling mud. The rheology of the mud indicates the flow behavior of the mud and is characterized by viscosity (which affects the ability to carry cuttings), plastic viscosity, gel strength and yield value. (Max, Annis, Martin &Smith, 1974)

II. Density: The weight of mud affects the ability of formation fluid blow out. Additives increase the density of drilling fluid. Therefore, additives to add depend on the reservoir pressure. The hydrostatic pressure should be higher than the reservoir pressure to avoid blow out of hydrocarbon deposits.
III. Fluid loss control: This is a fundamental property of the drilling fluid and becomes important when porous formations are being drilled, particularly when those formations may contain gas or oil. Special consideration may have to be given to the high temperature and high pressure fluid loss in particular conditions.

IV. Filtration Rate: This affects the ability of the mud to build an effective wall cake to prevent fluid loss.

V. Solid Content: This affects the rate of penetration of the drill bit. For any type of drilling fluid, these properties may be manipulated using various additives. A type of mud additive used for lowering rotary and axial friction in the well bore as well as lubricate bit bearings in oil well drilling is referred to as drilling mud lubricants.

VI. The other related properties: The determination pH value and alkalinity filtrate analysis, liquids and solids content, methylene blue test for Cation Exchange Capacity and bentonite content, sand content, electrical conductivity, lubricity, electrical stability of emulsions, corrosiveness.

1.1.3 Contaminants

Contaminants are foreign bodies which alter the properties of a good drilling mud, preventing the mud from performing it’s functions adequately during circulation. Circulation is defined as the movement of the mud from the suction tank (at the surface), down the hole and back to the surface through the annulus between the drilling pipe and the bore wall.

In general, a contaminant is any material that causes undesirable changes in drilling fluid properties. Solids are by far the most prevalent contaminant. Excessive solids, whether Commercial or from the formation, lead to high rheological properties and slow the drilling rate. Most other contaminants are chemical in nature and require chemical treatment to restore fluid properties. While there are specific treatments for each contaminant, it is not always possible to remove the contaminant from the system.

Some contaminants can be predicted and a treatment started in advance. The Predictable contaminants are: cement, make-up water, and sometimes salt, gypsum, and acid gases such as, hydrogen sulfide and carbon dioxide. Pretreatment can be advantageous as long as it is not excessive and does not adversely affect mud properties. Some of the contaminants encountered are;

Sodium chloride (NaCl)
Cement or lime (Caco3)
Hydrogen sulphide (H2S)
Carbon dioxide (Co2)
Carbonate and Bicarbonate
Gypsum anhydrite (CaSo4.H2O)
Salt water
temperature and
Drilled solids

1.2 Statement of Problem

Drilling mud without the inclusion of contaminants is a key to the success of every drilling operation. The contamination of drilling fluid is a continuous process while drilling and the problems that emanate from drilling operations such as kick/blowout, pipe sticking, lost circulation, poor hole cleaning, hole instability, formation damage etc. as a result of contaminants on the drilling mud alters its properties which can as well result to inadequate performance of the drilling mud.Also, addition of solids in drilling fluid can increase the viscosity, fluid loss, filter cake and gel strength which as a result cause circulation of mud cake. Also, High Concentration of sodium chloride in bentonite based mud generates an energy barrier and result to several flocculations. Thus, in small amounts, sodium chloride thickens fresh water mud and also increases the filtration rate.

1.3 Aims and Objectives

The aim of this project is to investigate the effects of contaminants on the flow or rheological properties of oil based mud experimentally. To achieve this aim, the following objectives will be looked at;

v Formulation of oil based mud (without and with contaminants)

v Determine which of the contaminants will have significant effect on the drilling fluid properties.

v Determine which of the contaminants significantly alter the mud rheological properties

1.4 Significance of Study

The significance of this project is to show how contaminants will reduce the quality of the drilling fluid, and thus reduce its functions while drilling a hole. Knowing when a contaminant enters the mud system, the type of contaminants in the mud system and treatment techniques will help to;

I. Reduce drilling cost

II. Increase personnel safety

III. Minimize downtime

IV. Increase productivity

V. Minimize drilling problems for example plastic viscosity and yield point are used to analyze:

1.5 Scope and Limitation

This study is basically on how to determine the effect of contaminants on oil based drilling fluid properties and also, how it will indirectly affect it performance. Thus, the contaminants analyzed in this study are;cement, sodium chloride (NaCl), Sodium bicarbonate (NaHco3) and cement.

1.6 Project Methodology

This project was performed in the laboratory where an Oil-based mud was impregnated with contaminants such as cement, sodium bicarbonate and sodium chloride and a careful monitoring of how they affect the quality preventing the effective function of the drilling mud in drilling operations and also a demonstration of how such muds could be treated, in other to reverse the effects of these contaminants.

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THE EFFECTS OF CONTAMINANTS ON THE RHEOLOGICAL PROPERTIES OF OIL BASED MUD

NODAL ANALYSIS TECHNIQUE UTILIZATION FOR SELECTING THE OPTIMUM TUBING SIZE TO ACHIEVE AN OPTIMUM PRODUCTION RATE IN NATURALLY FLOWING WELL VIA MODELLING

NODAL ANALYSIS TECHNIQUE UTILIZATION FOR SELECTING THE OPTIMUM TUBING SIZE TO ACHIEVE AN OPTIMUM PRODUCTION RATE IN NATURALLY FLOWING WELL VIA MODELING

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Naturally flowing well is a well in which the formation pressure is sufficient to produce the oil at a commercial rate to the surface without requiring a pump. Most reservoirs are initially at pressures high enough to allow a well to flow naturally. In other words, it is a well that can flow to the surface unassisted. However, during the well‘s life, pressures will drop to a point where it will no longer flow by its own accord. At this point, methods including artificial lift and enhanced oil recovery (EOR) will be employed to ensure the maximum reserves are recovered.

Based on this project, a natural flowing well is going to be focused upon. Naturally flowing wells normally use the energy inherent in the reservoir. This is referred to as the reservoir drive mechanism. The drive mechanism of the reservoir affects some of the fluid properties such as the gas oil ratio (GOR), water oil ratio (WOR) and parameters like the reservoir pressure and the flowing life span.

1.1.1 DRIVE MECHANISMS FOR NATURALLY FLOWING WELLS AND THEIR RESPECTIVE CHARACTERISTICS.

Water drive: A substantial percentage of petroleum reservoirs worldwide produce under water drive mechanism. In water drive, the energy responsible for production comes from the expansion of the aquifer underlying the reservoir. In some cases, water drive also results from the expansion of unknown hydrocarbon trapped within the aquifer or the expansion of connate water within the reservoir.
Characteristics of water drive

a) The reservoir pressure is high and fairly constant over a long period of time.

b) The GOR is low and fairly constant.

c) The production of water is fairly high.

d) The well has a long flowing lifespan.

e) Produces mostly under saturated oil and no gas at the wellbore.

f) It has a straight line IPR.

Gas cap drive: In a gas cap drive, the energy of production comes from the expansion of the free gas overlaying the oil zone. The factors that enhance the gas cap drive are dependent of the size of the gas cap, high vertical permeability, low oil viscosity, low density difference between oil and gas and finally dipping beds.
Characteristics of gas cap drive

a) High initial reservoir pressure, but declines eventually and gradually.

b) There is little or no water production.

c) The GOR is high and ever increasing.

d) The well flowing lifespan is shorter than that of the water drive.

e) The well produces saturated oil (Two phase flow).

f) Since saturated oil is being produced, straight line IPR cannot be used to describe the inflow performance relationship, hence Vogel IPR is used.

Solution gas drive: In the solution gas drive, the energy for production comes from the expansion of oil and it dissolved gas.
Characteristic of solution gas drive

a) Reservoir pressure declines rapidly.

b) Water production is nil or negligible, hence (BSW=0)

c) GOR is initially low and fairly constant, but rises rapidly and then declines.

d) It has a short well life span.

e) Most reservoirs with solution drive pressure require pressure maintenance and artificial lift.

In practice, the three above mentioned drive mechanisms are the basic types, but there are some others such as compaction drive mechanism or rock compressibility drive, gravity segregation (In high dipping reservoirs, substantial energy result from gravity especially perforating down dip), and lastly combination drive.

1.1.2 TUBING SIZE SELECTION CONCEPT

The selection and determination of tubing sizes is an important link in the well completion processes. The traditional practices are that the hole structure is designed and the production casing size is determined by the drilling engineer. After a well has been drilled and completion is to be done, the tubing size and the mode of production are selected and determined by the production engineer on the basis of the production casing that has been determined. The outcome of this practice is that the production operations are limited by the production casing size. For instance if production rate is to be increased by increasing the tubing size, casing size will become a dependency factor. In order to avert this traditional practice, this project will prove the rational determination and selection of the optimum tubing size for production wells. In accordance with the reservoir energy and the requirement of production engineering, the rational tubing size should first be determined under a different production mode, and the admissible minimum production casing size is then determined and selected. At the flowing production stage, the rational tubing size can be determined and selected using the sensitivity analysis of tubing size which is based on nodal analysis. Pressure drop is known to occur from the reservoir itself up to the surface separator, and without this pressure differential, production cannot take place. Therefore the production system of an oil and gas well can be simplified into two large parts, namely the inflow and the outflow part. Hence developing a relationship between the inflow and the outflow with respect to tubing size is a critical means of determining the optimum tubing size for an optimum production rate. The project will also take into consideration the relevance of flow line sizing in the optimal production of a well.

1.2 STATEMENT OF PROBLEM

Any oil well production system has an optimum tubing size to achieve an optimum production rate. When an undersized tubing is run into a well, pressure drop across the length of the tubing will be excessive leading to increased frictional resistance which will limit production rate, while on the other hand, when an oversized tubing is run into a well, pressure drop in the tubing will be low and a low flow velocity is experienced such that the flow velocity is not sufficient enough to lift the fluid to the surface and a phenomena called “ SLIPPAGE” begins to occur in which different phases of fluids are moving in the same direction with different velocities. In this scenario, liquid hold up is bound to occur and only gas is then being produced to the surface.

However, this project will focus on carrying out sensitivity analysis of tubing size using nodal analysis method, so as to determine the optimum tubing size for a production system.

1.2 AIMS AND OBJECTIVE OF THE PROJECT.

The aim of this project is to use the nodal analysis technique for selecting the optimum tubing size to achieve an optimum production rate in naturally flowing well via modeling. The objectives of this project include:

To identify key variables that affect tubing sizes production optimization.
To determine the sensitivity of the tubing sizes for production optimization.
To evaluate the techniques required in the optimization of tubing sizes.

1.3 ORGANIZATION OF THE PROJECT

This project consists of five chapters as well as references and appendices. Chapter one comprises the introductory part of the project which unveiled the study and gave the background, statement of the problems, purpose and objective of the project and the organization of the project. The second chapter present the literature review that comprised of previous work done by other researchers on the subject matter, while the chapter three focuses on the methodology. Chapter four consist of data presentation, interpretation and discussion of findings and chapter five concludes and gives recommendation followed by references and appendices.

1.5 RELEVANCE OF WORK

The goal of any oil company is to maximize profits by producing her wells optimally. This project is aimed at selecting optimum tubing size to achieve an optimum production rate, while utilizing the reservoir energy optimally. The relevance of this work include,

Optimising production with optimum tubing size.
Minimizing pressure drop in the tubing.
Lowest energy consumption for lifting the hydrocarbon.
Minimal frictional flow resistance.
Longest flowing time.
Maximum energy utilization efficiency.

1.6 SCOPE AND LIMITATION OF WORK

The modeling for tubing size selection will be done via sensitivity analysis of tubing size using a software called PROSPER with the aid of collected field data. The modeling will be that of a two phase flowing well (gas driven reservoir or depleted drive reservoir) which is a naturally flowing well.

In many circumstances, the conditions of surface flow line cannot be determined in advance and the tubing pressure derived from a given separator pressure method cannot be used for the sensitivity analysis of tubing size. Thus, the tubing size is optimized by setting wellhead tubing pressure (pwf).

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NODAL ANALYSIS TECHNIQUE UTILIZATION FOR SELECTING THE OPTIMUM TUBING SIZE TO ACHIEVE AN OPTIMUM PRODUCTION RATE IN NATURALLY FLOWING WELL VIA MODELLING

TREATMENT OF PRODUCED WATER TO MEET IRRIGATION STANDARD

TREATMENT OF PRODUCED WATER TO MEET IRRIGATION STANDARD

INTRODUCTION

1.1 BACKGROUND

Produced water was defined by Veil et al. (2004) as saline water with hydro-carbons extracted from the rocks to the surface. The oil and gas industry is a combination of industries: oil, coal-bed methane and conventional non-associated gas producers. The aqueous effluent from such process operations is the largest volume stream in the oil and gas operation and exploration processes. Different types of fluids such as saline-water, oil and gas are held down by rocks in the sub-surfaces. The hydrocarbon compounds are saturated with saline water and then captured in the rocks. Due to the density difference, the hydrocarbons with lower density traveled to capture locations in rocks. This led the displacement of saline water. At certain thermodynamic conditions, saline water and hydrocarbons are absorbed by the rocks. Saline water comes from lower side, above and the flow within hydrocarbon zone. There is another type of water that comes with saline water referred to as “connate water” or “formation water”. Formation water is the water which is produced during the production activities by the injection of fluids and additives.

Table 1.1:Some of the possible options available for the management of produced water are

Options

Description

Avoid production of water onto the surface

Using polymer gels that block water contributing fissures or fractures or Down-hole Water Separators which separate water from oil or gas streams down-hole and re-inject it into suitable formations.

Inject produced water

Inject the produced water into the same formation or another suitable formation; involves transportation of produced water from the producing to the injection site.

Discharge produced water

Treat the produced water to meet onshore or offshore discharge regulations.

Reuse in oil and gas operations

Treat the produced water to meet the quality required to use it for drilling, stimulation, and work-over operations.

Consume in beneficial use

In some cases, significant treatment of produced water is required to meet the quality required for beneficial uses such as irrigation, rangeland restoration, animal consumption, and drinking water for private use.

Increased agricultural production to feed the increasing world population and the ever expanding need of industry, have made great demands on the limited water supply. The total global water (surface and ground water) is estimated to be 1,52 million km cubic from which, salty water (sea and oceans) 95-97%, polar water 4.2%. Hence, only 1% can be used and is available as surface and ground water.A reliable and suitable irrigation water supply can result in vast improvement in agricultural production and the economic vitality of the region.Irrigated agriculture is dependent on an adequate water supply of suitable quality. Water quality concerns have often been neglected because water supplies have been plentiful and readily available in the past, this situation is now changing in many countries.There is a steady increase of the amount of water used and wastewater produced by urban communities and industry. This poses potential health and environmental hazards. An effective way of treatment and reuse or disposal is necessary. At some time increased attention is being focused on agricultural plantations to make use of this water.

1.2 STATEMENT OF PROBLEM

Water produced during oil and gas extraction operations constitutes the industry’s most important waste stream on the basis of volume. The volume of water produced globally by oil and gas operations is staggering. The last major global study of produced water, dating from the late 1990s, estimated that the industry was bringing up 210m barrels of produced water each day. The produced water contains both dissolved and dispersed oil and these pose health hazards to human health and contamination of the environment.

Oil and gas production companies have always faced the problem of how to treat or dispose produced water. Stricter environmental controls have added pressure to the issue. High level of impurities make this water an unusable by-product. This project will address the issue of pollution caused by produced water discharge by treating the produced water to meet irrigation purpose.

1.3 AIMS AND OBJECTIVES

The aim of this project is to treat produced water to meet irrigation standard. The objective is to treat, analyze and compare produced water physico chemical parameters with Central Coast Regional Water Quality Control Board (CCRWQCB) criteria for irrigation and DPR standard for disposable water.

1.4 SIGNIFICANCE OF STUDY

Treated produced water has the potential to be a valuable product rather than a waste.Treating oil well produced water helps facilitate water management options for operators, such as beneficial uses that provide certain community and economic advantages. This project intends to tackle the problem of pollution pose by produced water by treating the water to meet irrigation standard.

1.5 SCOPE AND LIMITATION

This work will focus on using distillation and banana peel as a biosorbent to treat produced water from Umutu flow station, Oredo flow station and Oredo field. Only produced water from Umutu flow station will be analyze. DPR standard and the Central Coast Regional Water Quality Control Board (CCRWQCB) water quality requirement for irrigation is the standard used, other standards were neglected.

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TREATMENT OF PRODUCED WATER TO MEET IRRIGATION STANDARD

INVESTIGATION INTO PIPELINE VANDALISM IN NIGER DELTA(NIGERIA) (A Case Study Of Abiteye in Warri South West, Delta State )

INVESTIGATION INTO PIPELINE VANDALISM IN NIGER DELTA(NIGERIA) (A Case Study Of Abiteye in Warri South West, Delta State )

CHAPTER ONE

1.0 INTRODUCTION

The Nigerian petroleum industry which has majority of its establishment within the Niger Delta Region has been confronted by two sapping challenges over the years. The challenges relates to the prevalence of militancy and oil pipeline vandalism in the Niger Delta. While the former has significantly attenuated in the aftermath of the Amnesty deal in 2009 (Okoli, 2013), the latter appears to have escalated both in incidence and impact. Vandalisation of oil and gas pipeline facilities remains the single most critical challenge facing our industry. (Dr. M.S. Barkindo (2010), NNPC General Managing Director).

According to Ogbeni: A total of 16,083 pipeline breaks were recorded within the last 10 years adding that while 398 pipeline breaks representing 2.4 percent were due to ruptures, the activities of unpatriotic vandals accounted for 15, 685 breaks which translated to about 97.5 percent of the total number of cases (Ogbeni, 2012, para 8). Indeed, the incidence of oil pipeline vandalism has been on the rise in Nigeria. This is particularly so because oil is the live wire of the Nigerian state and economy. Indeed, oil is the mainstay of the Nigerian economy and the country relies heavily on revenue from crude. For example, oil provides 20% of the country’s GDP and 65% of its budgetary revenue (CIA, 2007).

According to the 2013 annual report of the Nigerian Extractive Industry Transparency Initiative (NEITI), Nigeria lost a total of 10.9billion US Dollars to oil theft between 2009 and 2011 (NEITI, 2013; Onoja, 2013). This loss adumbrates the significance of vandalism as a veritable problem in the Nigerian oil industry.

Pipeline which still remains as one of the most reliable and best means of transporting petroleum products are occasionally subjected to third party damage. This damage is the single largest cause of pipeline failure from history. In most developing countries of the world like Nigeria, this damage is mainly due to the act of vandalism and terrorist attacks. In Nigeria, a combined team of Petroleum Pipeline Marketing Company an arm of the government, Community leaders, Police and indigenes provide surveillance to guard the pipelines. Regular aerial surveillance of critical sections of the pipelines is also carried out. Despite all these security measures, vandalisation of petroleum pipelines is increasing and a single incident can be devastating, causing death and millions of dollars in property loss.

According to Pipelines Products Marketing Company (PPMC), a subsidiary of NNPC, Nigeria has a total network of 5,001 kilometres of oil pipelines, consisting of 4,315 km of multiproduct pipelines and 666 km of crude-oil pipelines. These pipelines criss-cross the country and inter-link the twenty-two petroleum storage depots strategically dispersed across the country, the refineries at Port Harcourt, Kaduna and Warri, the off-shore terminals at Escravos and Bonny, and the four jetties at Okrika, Atlas Cove, Warri and Calabar (Sule, 2004).

Pipeline vandalisation, as it is used in this context, refers to illegal or unauthorized activities that involve the destruction of oil pipelines to disrupt supply or the puncturing of oil pipelines to siphon crude oil or its refined products in order to appropriate it for personal use or for sale in the black market or any other outlet. It includes such acts as oil bunkering, breaking oil pipelines to siphon fuel, scooping fuel from burst oil pipes and the deliberate act of oil terrorism. In Nigeria, pipeline vandalisation is usually regarded as an act of sabotage. It is a capital offense under the Petroleum Act and is covered by the Criminal Justice Decree of 1975 (miscellaneous provisions) (Phil-Eze 2004:278). In recent times, the incidence of pipeline vandalisation and the associated fire disaster has caused serious destruction of the ecosystem of host communities, oil spillage and environmental pollution, destruction of farmlands and properties, and the loss of lives.

This project work seeks to put poverty in its proper context vis-à-vis pipeline vandalisation explosion and human security. It explores this by identifying the causes, trends and dimensions of pipeline vandalisation as well as its impact on human security.

1.1 AIM AND OBJECTIVES

This project is aimed at:

Investigating the pipeline vandalism at Abiteye, Warri South West, Delta State. – its problem and prospect.

The objective is to proffer solution to this inhuman degradation of the environment, health and air.

1.2 SCOPE AND LIMITATION

This project work will cover the comprehensive analysis of pipeline vandalism at Abiteye in Warri South West LGA of Delta State, its problem and prospect and also seek to proffer some possible solution to this menace.

This project work will basically be limited to the pipeline vandalism at Warri South West LGA of Delta State.

1.3 LOCATION AND ACCESSIBILITY

Abiteye is located at Warri South West local Government Area in Delta State. Warri South West is a Local Government Area in Delta State, Nigeria, it was created in 1997 and has its headquarters are in the town of Ogbe-Ijo. It has an estimated land area of 1,722 km² and a population of 116,681 from the census of 2006. The study area Warri South West has its geographical coordinates as 5°31′N 5°45′E / 5.517°N 5.750°E / 5.517; 5.750. It is an oil hub in South-South Nigeria which is one of the major hubs of petroleum activities and businesses in the southern Nigeria. The Study Area is one of cosmopolitan Local Government Area in southern Nigeria comprising originally of Urhobo, Itsekiri and Ijaw people.

1.4 CLIMATE AND VEGETATION

The climate of the Abiteye in Warri South West LGA is characterized by a long rainy season from March-April through October. Precipitation increases from the north of the delta (with an average of 2,500 mm) to the coastal area where mean annual rainfall averages around 4,000 mm, making it one of the wettest areas in Africa. The wet season peaks in July, and the only dry months are January and February. However, even during this dry period an average monthly mean of 150 mm rainfall is recorded in the delta. Relative humidity rarely dips below 60% and fluctuates between 90% and 100% for most of the year. During most of the rainy season cloud cover is nearly continuous resulting in 1,500 mean annual sunshine hours and an average annual temperature of approximately 28° C. The area is characterized by tropical equatorial climate with mean annual temperature of 32.8 °C and annual rainfall amount of 2673.8 mm. There are high temperatures of 36 °C and 37 °C. The natural vegetation is of rainforest with swamp forest in some areas. The forest is rich in timber trees, palm trees, as well as fruit trees.(Barbour et al. 1982).

1.5 RELIEF AND DRAINAGE

The Warri South West is a region built up by the sedimentation of the Niger Delta and consists of the delta in various stages of development. Four major physiographic units are identifiable with in it. First, the freshwater swamp which is the most active area. It is located close to the River Niger, where annual flooding and deposition occurs up to 45 km from the river’s course.

Second, the man grove swamp area described as an intermediate delta stage. It is much lower and a great proportion of it is brackish, having been invaded by the sea since large amounts of freshwater have ceased flowing into it. Third, the upland and swamp, which is also called the coastal plain. It lies between the flood plain and Benin lowlands. The swamps are more restricted to broad drainage channels created when this area was an active delta. Fourth and finally, the upland Niger valley, which is a narrow strip above the delta and relatively floodfree. Over time, the decreasing slope gradient of the Niger River bed and associated lower stream velocities has resulted in an increase of tidal activity in the exits of the numerous Niger distributaries, resulting in the formation of the Coastal Barrier Islands (NEDECO 1961).

1.6 METHODOLOGY

The methods to be adopted in the cause of this project include:

Site visit to the study area.
Questionnaires.
Consultation of journals and past projects.

1.7 DURATION

This project is expected to be completed by October 2016 in accordance with the institute’s calendar.

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INVESTIGATION INTO PIPELINE VANDALISM IN NIGER DELTA(NIGERIA) (A Case Study Of Abiteye in Warri South West, Delta State )

THE IMPACT OF CRUDE OIL PRODUCTION ON ECONOMIC GROWTH IN NIGERIA

THE IMPACT OF CRUDE OIL PRODUCTION ON ECONOMIC GROWTH IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1. Background to the Study

Crude oil is one among other natural resources endowment in a nation by nature. Natural resources are often regarded as free gifts of nature. All over the world, different countries are endowed differently with different resources, both in quality and quantity, to some less and others in abundance. Nigeria is one among these countries that is richly blessed with vast natural resources, such as: forests, lands, fresh and salt water, sands, coal, Iron-ore, natural gas, aluminum, non- mineral energy source of solar, crude oil which is our subject matter among others.

Crude oil was first discovered in united state (US) in 1859, which was sold on a large scale in the 1860s. In Nigeria, the search for crude oil started within 1905 and 1908 by the Nigerian Bitumen Corporation (NBC) who on their search found 16 shallow wells, confirming a line of oil seepage in the Eastern Dohomey Basin in Okitipupa, Western Region of Nigeria. The NBC could not go far with its search due to the outbreak of the First World War in 1914 which distorted their activities.

However, after the war, the Roral/Dutch Company took over and continued with the search from Ondo State to Abia State and finally narrows down their search to Niger Delta Region where they first discovered oil in large commercial quantity in 1956 at Oloibiri specifically in the present Bayelsa State. Nigeria oil hit. The international market in 1958 with approximately 5,000 barrels per day. Nigeria produces about 30% of the total oil production in the Africa region. As of September 2004, she was ranked the largest producer in the sub- Saharan Africa, the 5th largest petroleum exporting country in organization of petroleum exporting countries (OPEC) and the 5th largest oil exporting country to the united state of America, amounting to about 8% of USA crude oil imports. Here current production capacity is over 2 million barrels per day on average.

Although Nigeria for over 30 years has established herself as a leading producer of crude oil, she is known in energy circles as a “gas province with only a little pool of oil”. The oil producing states in Nigeria so far discovered include: (Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Ondo and Rivers) state, nine in number with a common nomenclature known as the “Niger Delta region”. The formulation and implementation of the Nigerian oil sector is under three actors which are:

i. The ministry of petroleum resources, established in 1972 with four departments functioning differently.
ii. The Nigeria national petroleum corporation (NNPC), established in 1977 under decree No. 33 as government owned company together with the petroleum inspectorates as its integrate part under six directors.
iii. The private sector, which comprises of multinational oil companies, which produces about 98% of the total production and indigenous companies producing about 2%. The oil sector is categorized into up and down stream, connected with forward and backward linkages.
Over the past 30 years, different people have commence differently in the activities of oil production in Nigeria, to some it has made a Variety of contributions to the Nigerian economy, such of which include: the creation of employment opportunities, the supply of energy to industries, supporting the transportation system, source of revenue generation to the government, etc. while to others, oil production does more harms than good to the environment and the economy as a whole, which call for environmental-resource accounting.

In terms of output production and product contribution, oil witnessed steady progress throughout the period under review. Crude oil production increased from 1.9 million barrels in 1958 to 152.4 barrels in 1966. Production increased from 395.7 million barrels in 1970 to 660.1 and 845.5 million barrels in 1975 and 1979 respectively. The increase in production witnessed during this period was precipitated by Middle East crisis and the 1973/74 oil embargo which caused a sharp reduction in world oil supply. The increased oil prices that the crisis generated helped to boost local oil production in the country. However, this was short-lived as the early 80s witnessed a glut in the international crude oil marketing to over-supply, which culminated in sharp drop in prices and central reduction in the production quotas by OPEC member countries. Consequently, oil production in Nigeria dropped from 0. 1 million barrels in 1980 to 535.9 and 383.3 million barrels in ‘1986 and 1987 respectively. The situation improved in the 90s as crude oil output rose from 383.3 million barrels in 1987 to 711.3, 742.3 and 772.9 million barrels in 1992, 1996 and 1998 respectively. The trend continued between the year 2000 and 2009. The cumulative crude oil production for the country increased from 20,575881mi11ion barrels in 2000 to 27,052, 0677 million barrels in the 2009. In general, crude oil production witnessed appreciable increase over the period under study.

Finally, the production of oil in Nigeria is not totally free from challenges; rather it has been plagued by various problems which undermined its optimal development over the years. In general term, from 1990s till date, public control and bureaucracy, poor funding of investments, communal disturbances, smuggling and diversion of petroleum products, fraudulent domestic marketing practices, and product adulteration, oil theft among others has in identified as the challenges facing crude oil production in Nigeria.

1.2. Statement of Problem

Crude oil which is believed to be a gift of nature to a nation, like Nigeria and others who are blessed, has become a controversial subject among scholars and researchers worldwide. Over the years, the issue of whether crude oil production translate to economic growth or not has been a burning question to many as well as a global subject of considerable interest and debate as a bone of contention. While some strongly opine that crude oil production is the life-wire of a producing country’s economy, maintaining that its export has a positive relationship with economic growths, spill-over effect on foreign reserve as well as determining the rate at which her currency is exchanged for in international market etc, to others, the reverses is the case, as the argued that it has done more harms than good.

Affirming their argument, they point at environmental degradation, pollutions, deprivation of means of livelihood,
over dependence on oil revenue, socio economic conflict associated with crude oil production activities among others. To be specific, the words of Juan Perez Pablo Alfonso, fully support the latter when he says “I call petroleum the evil’s excrement. It brings trouble…waste, corruption, consumption, our public services fall apart and debt, a debt we shall have for years” (the economist, May 22, 2003).

Research-wise, this contradictory argument “for and against” the subject matter, has create a gap which keep both end from reaching a consensus. Objectively, these hypothesize arguments is what necessitate the conception of this study as an attempt to ascertain which assertion.

1.3 Objective of the Study

The objective of this research work is sub-divided into two, the main and specific.

Main Objective

To examine the impact of crude oil production on economic growth in Nigeria.

Specific Objective

i. To examine the impact of crude oil export revenue on economic growth in Nigeria.
ii. To examine the transmission channel through which exchange rate is affected by crude oil export and thus economic growth in Nigeria.
iii. To examine the relationship between Nigerian foreign reserve and her economic growth through crude oil export.

1.4 Research Hypothesis

i. Ho: There is no significant relationship between oil revenue and economic growth in Nigeria.
ii. Ho: There is no significant relationship between exchange rate and economic growth in Nigeria.
iii. Ho: There is no significant relationship between Nigerian foreign reserve and her economic growth.

1.5 Scope and Limitation of the Study

This research work focus on the impact of crude oil production on economic growth in Nigeria, with time series date from 1980-2011, which cover a period of thirty-two (32) years to examine the relative impacts of oil revenue, exchange rate and foreign reserve as the regressors on the regressed (economic growth represented by G-DP). This choice of time space is believed to be long enough to capture and explain the long-run relationship that exist between the variables noted above in the growth of Nigerian economy. On its limitation, source of gathering data was the major constraint encountered in the cause of conducting this study, together with the difficulty in accessing the Internet in Amassoma due to poor network services. Also financial constrain and time factor as well as academic stress among others, as well contributed to the limitation of this work.

1.6 Significance of the Study

It will provide useful information to government and policy makers.
It will also provide an econometric basis upon which to examine the impact of crude oil production on economic growth in Nigeria.
It will as well add to existing literature and knowledge.

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DEREGULATION OF THE DOWNSTREAM OIL SECTOR IN NIGERIA AS A PANACEA TO ECONOMIC RECOVERY OF THE COUNTRY: (AN ANALYSIS OF 2010-2015 ECONOMIC PROGRAMME OF NIGERIA)’

DEREGULATION OF THE DOWNSTREAM OIL SECTOR IN NIGERIA AS A PANACEA TO ECONOMIC RECOVERY OF THE COUNTRY: (AN ANALYSIS OF 2010-2015 ECONOMIC PROGRAMME OF NIGERIA)’

ABSTRACT

This study examined the deregulation of the downstream oil sector in Nigeria as a panacea to economic recovery of the country (An Analysis of 2010-2015 Economic Programme of Nigeria). In this study the researcher has find out some of the problems that are facing the deregulation of the downstream oil sector in Nigeria, these problems are continuous increase in petroleum price, scarcity of petroleum product . all these are the major problems that are facing the deregulation of the downstream oil sector which government have to help solving this problems by making fuel available and controlling the price. Also the researcher has find out some of the objective which will also help in the deregulation of the downstream oil sector which includes , investigating the effect or the deregulation of the downstream oil sector on the living standards of the people, also to examine the pre and unrealistic deregulation era and make critical comprise. And to explore the reason why partial deregulation has not yielded the desired result in terms of prices and supply. Data collection was also used in the research work, data collection is an important aspect of any type of research study. The method of data used for this study was primary and secondary sources. The researcher administered a total of 80 copies questionnaires to both in rural areas, from the data the following finding were apparent that a tremendous impact was made by downstream oil sector in Nigeria oil industries. Finally the findings and conclusion in the research work were also discussed, showing that without proper management, control and investment the revenue generated from deregulation of the downstream oil sector will be embossed by corrupt government officials. If government decide to force down the deregulation policy as currently conceived, it will greatly erode the ability of the people to cope with further price increases on petroleum products. Businesses would be further impaired to operate under a regime of higher energy cost, while ease of doing business indicators remains generally negative in the country

TABLE OF CONTENTS

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the study

1.2 Statement of the problem

1.3 Objectives of the study

1.4 Research Questions

1.5 Research Hypothesis

1.6 Significance of the Study

1.7 Scope and Limitations of the study

1.8 Organization of the Study

Reference

CHAPTER TWO

2.0 Literature Review

2.1 Conceptual Clarification

2.2 Rational Behind Govt. Plant of Deregulation

2.3 The Relevance of the Deregulation

2.4 Obstacles and Trend of Deregulation of the Downstream

2.5 Potential Benefits of Deregulation of the Downstream

2.6 Effect of Deregulation of the Downstream oil Sector

2.7 The Impact of Deregulation of the Downstream

2.8 The Roleand Economic Implication of the Deregulation

2.9 Government Strategy for Deregulating the Downstream

2.10 Success Story of Deregulation in Other Sectors

References

CHAPTER THREE

3.0 Research Design and Methodology

3.1 Research Design

3.2 Area of Study

3.3 Population of the Study

3.4 Sample and Sampling Techniques

3.5 Instrument for Data Collection

3.6 Validity of Instrument

3.7 Method of Data Collection

3.8 Data Analysis

3.9 Expected Result

Reference

CHAPTER FOUR

4.1 Presentation Analysis of Data

4.2 Testing of Hypothesis

4.3 Discussion of Findings

References

CHAPTER FIVE

5.0 Summary and Recommendations and Conclusion

5.1 Summary of Findings

5.2 Recommendation

5.3 Conclusions

Bibliography

Appendix

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Historically, major petroleum marketing companies were the main sources of petroleum product’s supply. The companies transported and distributed the products relying on their distribution and retail outlets. This was an era of Pre- regulation in which Nigerian paid market-determined prices for products. However, this arrangement was not sustainable given that it was dependent on the profit and market imperatives of the oil marketers. The country’s economic activities expanded in the seventies such that private companies could no longer cope with increase demand for products. This resulted in erratic supply of petrol and kerosene and ultimately acute scarcity of the product. The shortage was endemic and created social and economic dislocation in the country. This market failure made government to venture into petroleum products marketing and distribution.

The concern by government to overcome this lack of product and total dependency on oil companies led to policy shift towards regulations. Government therefore introduced uniform pricing to satisfy domestic demand, strengthen self-reliance and avoid a situation in which the oil companies could hold the country to ransom. The nation witnessed adequate supply of petroleum products up till 2000. Thereafter, due to the sustained devaluation of the Naira on account of the implementation of the Structural Adjustment Programme (SAP) coupled with the non-maintenance of the refineries, domestic production was soon undermined making it imperative for demand to be met through imports.

The shortages of petroleum products escalated in spite of increases in prices of products since 1999. The Olusegun Obasanjo administration on coming on board decided to gradually withdraw the subsidy on petroleum products to allow the mechanics of market forces to take its full course. This again, resulted to frequency increase in petroleum products prices.

1.2 Statement of the Problem

Petroleum products supplies have always been problematic for successive Governments in Nigeria. With the new democratic dispensation, the supply and distribution of petroleum products improved but this was without a frequent price increase in petroleum products. With few months to the end of the Obasanjo’s regime, the ugly incidence of petroleum scarcity surfaced again and one begins to wonder if there is any solution to this problem.

The contemporary passion and tension that usually characterize petroleum discourse is due to unquantifiable deprivations and sufferings it causes in Nigerians. As the 6th largest producer of petroleum, it is a contradiction that in the past decade, supply of all products has been changeable and on sharp decline. Ironically, as supply declined, products prices have been on the increase as successive governments searched for “appropriate pricing”. The combined impact of unreliable and inadequate supply and unending price increases have brought untold hardship to the citizenry and worse too, prevented economic recovery as promised by the present democratically elected government given that capacity utilization in the manufacturing sector nose-dives due to shortages of industrial products. Indeed many industries have been compelled to close due to non-availability of some of these products.

In the bid to solve the problem in many developing countries, structural reform of petroleum markets has become a critical component of macroeconomic liberalization policies. The role of the government in the petroleum sector is being redefined, and markets are being deregulated (i.e state interventions such as special treatments of state-owned oil companies, price controls and monopolies are being broken up). Increasingly, the private sector is participating in more competitive environment. But unexpectedly, the outcome of the deregulation has not been encouraging. There has been continuous increase in petroleum prices with persistent scarcity of petroleum products. It was expected that deregulation would give room for competition which would transform to price reduction and excellent supply and distribution network. This study is devoted on the evaluation of the deregulation exercise; critically appraising its impact on petroleum pricing, consumption and the general living standard of the people.

1.3 Objectives of the Study

The aim of this study is to appraise partial deregulation exercise that was carried out in the Nigerian downstream oil sector.

The specific objectives of this study are as follows:

i. To evaluate the pattern of petroleum products pricing in Nigeria;
ii. To examine the consumption pattern of petroleum products before and after the partial deregulation;
iii. To examine the impact of the deregulation of downstream oil sector on petroleum products pricing in Nigeria;
iv. To investigate the likely effect of the deregulation of the downstream oil sector on the living standard of the people; To examine the pre- and unrealistic deregulation era and make critical comparism;
To explore the reasons why partial deregulation has not yielded the desired result in terms of prices and supply.

1.4 Research Questions

The study would examine the following questions:

i. What is the pattern of petroleum products pricing in Nigeria over the years?
ii. How has the deregulation exercise impacted on the consumption pattern of petroleum products in Nigeria?
iii. To what extent has the deregulation efforts of the downstream oil sector impacted on petroleum products pricing in Nigeria?
iv. How does the regulated downstream sector differ from the deregulated era?
v. Do you think that partial deregulation of the downstream oil sector in Nigeria will yield deserve economic recovery?

1.5 Formulation of Hypotheses

The following hypotheses were formulated based on the objective of the study:

Hi= alternative hypothesis

Ho= null hypothesis

Hypothesis One

Hi: The deregulation exercise has impacted on the consumption pattern of petroleum products in Nigeria.

Ho: The deregulation exercise has not impacted on the consumption pattern of petroleum products in Nigeria.

Hypothesis Two

Hi: The deregulation of the downstream oil sector has largely impacted on petroleum products pricing in Nigeria.

Ho: The deregulation of the downstream oil sector has not impacted on petroleum products pricing in Nigeria.

Hypothesis Three

Hi: That the regulated downstream sector differs significantly from the deregulated era.

Ho: That the regulated downstream sector does not differ significantly from the deregulated era.

Hypothesis Four

Hi: That the partial deregulation of the downstream oil sector in Nigeria has yield deserve economic recovery of the country.

Ho: That the partial deregulation of the downstream oil sector in Nigeria has not yield deserve economic recovery of the country.

Hypothesis Five

Hi: Partial deregulation of the downstream oil sector in Nigeria will yield more deserve economic recovery.

HO: partial deregulation of the downstream oil sector in Nigeria will yield less deserve economic recovery.

1.6 Significance of the Study

This study shall be found useful by all citizens of the country as well as policy makers and individuals affected by the scourge of deregulation. It shall also be found valuable by ideologists and Governmental agencies as well as NGO’s saddled with the responsibility of national citizens’ orientations, ethnic nationalities, and scholars with interest in similar areas of study will equally find this report very useful. The study will also serve as a point of reference to students in higher institutions and as a point of reference for further studies.

1.7 Scope and Limitations of the Study

This study shall analyze the Deregulation of the Downstream Oil Sector in Nigeria as a Panecea to Economic Recovery of the Country: An Analysis Of 2010 -2015 Economic Programme by those in charge of the formulation of policy and its implementation. The study will foster citizens consciously or unconsciously betray patriotism by beating undeserving drums of support for public office holders in a bid to defend their territory, whether the supported person/action is worth condemning or not.

In the course of this research, the researcher encountered so many difficulties among which are:

[a] Cost: Inadequate fund have limit this work beyond my test,lack of fund also affect not only the period of the research but also its quality. To exalt everything about analyzing deregulation and come out of legacy for the posterity one needed to travel far and near and be equipped on daily reading of newspapers, magazines and internet materials since it is the talk of the day. All this will cost the research a huge amount of money.

[b] Time: Time is as costly as money, it is even easier facing financial problems than time, and time lost is hardly regained. Financial markets do exist but time existed for time, with the school academic, the period for the research work is too short, putting other courses into the budget.

[c] Reluctant to Cooperate: The Management, scholars more especially government agencies of some parastatals is too reluctant to disclose the required information and more so when it comes to disclosing or exposing the some government book record. The idea equally affects the quality of facts given in the research work.

1.8 Organization of the Study

This study shall contain five chapters. The first chapter shall contain the background of the study, the statement of the research problem, the objectives of the study, the research questions etc that would guide the study. Chapter two would present the literature review on the subject matter. The methodology to be adopted in the study would be stated in chapter three. Chapter four shall focus on the presentation and analysis of collected data. The last chapter – chapter five, would present the summary of the findings, conclusion and appropriate recommendations.

REFERENCES

Ojo, M. O. and Adebusuyi, B. S. (1996). “The State of the Nigerian

Petroleum Industry: Performance, Problems and Outstanding Issues”, CBN Economic and Financial Review Vol.34, September.

Ozumba, C. C. (1996). “Harnessing the potential of the Nigerian Oil and

Gas for Economic Development”, CBN Economic and Financial Review, December.

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AFRICAN STANDBY FORCE: PROSPECTS FOR REGIONAL SECURITY

AFRICAN STANDBY FORCE: PROSPECTS FOR REGIONAL SECURITY

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND

Security can be construed in terms of the ability of individual citizens to live in peace with access to basic necessities of life, at the same time participating fully in societal affairs in freedom and enjoying all fundamental human rights (The Kampala Document: Towards a Conference on Security, Stability, Development and Cooperation in Africa). Security is indisputably a first order value for all mankind. McNamara offered a broad definition of security when he stated that ‘security means development’ (McNamara, 1968:149). Security can therefore be conceptualised as a precursor to development and although not entirely dependent on military activity, it is tightly intertwined with it and cannot exist without it. According to Imobighe, ‘the amount of security a nation enjoys is a reflection of its defence system’ (Imobigbe, 2003:170). Similarly, Lippmann posits that ‘a nation has security when it does not have to sacrifice its legitimate national interests to avoid war and is able, if challenged to, to maintain them by war’ (Baylis, 2001:255). This implies that military security is important and indeed forms the bedrock on which all other forms of security rest.

Africa’s security problems can be traced to the era of slave cartelization when European slave merchants freely terrorized the continent. This was closely followed by colonization wherein the indigenous defence systems were removed to emplace imperialism. Since then, Africa has become an exporter of raw materials and cheap labour and an importer of finished goods. This exploitation continued until the outbreak of World War II (WWII) in 1939. The end of WWII in 1945 saw the emergence of two superpowers, the United States of America (USA) and the United Soviet Socialist Republic (USSR). The subsequent Cold War which ensued between these superpowers lasted from 1945-1990. Within this period, the superpowers fought by proxy, with many African countries as pawns in their power struggle. Dictatorships, overtly or covertly supported by one or the other superpower, usurped power through coups d’etat and maintained repressive regimes. This inevitably led to counter coups, usually supported by the opposing superpower.

The resultant vicious circle of dictatorships, sit-tight rulers, coups and counter coups, coupled with illiteracy, absence of infrastructure and fueled by ethnic sentiments, rendered Africa underdeveloped and crises prone. Intra-state conflicts erupted in Angola, Burundi, Congo, Liberia, Mozambique and Namibia. They also erupted in Rwanda, Somalia, Sierra Leone, Uganda, Cote d’Ivoire and Sudan. These conflicts militated against development and harmonious relationship among African countries. The human and material casualties recorded in these conflicts are calamitous. The resultant effects of these crises in Africa are disease, refugee problems, human rights abuses, stagnation in development and poverty.

The International Institute for Strategic Studies (IISS) London reported that in 1999 alone, over half of the world’s armed conflicts were in sub – Saharan Africa (Jonathan, 2005:15). In another report, Clare and Straw, argued that over the past 20 years, Africa has lost over 50 per cent of its infrastructure, many of the losses due to conflicts (Clare Short and Jack Straw).

While the potential for inter-state disputes has not diminished, the last 10 years have seen the appearance of complex new risks to peace and stability, including oppression, ethnic conflict, economic distress, the collapse of political order, the proliferation of small arms and organised international crime. When crises arise, they increasingly involve many factions and contain conflict elements which may be inter and intra and/or transnational in nature and involve the cross border movement of refugees, internally displaced persons (IDPs), migrants and widespread human rights abuses.

Such intra state conflicts and transnational activities are generally perpetrated by sub state actors or ‘war lords’, non-state actors, militias, criminal elements and armed civilians and not exclusively by elements of the regular armies. As a result social cohesion and state institutions collapse, law and order breaks down, banditry and chaos prevail and the civilian population flees the conflict region or the country.

On the global scene, the quest for international peace and security prompted the formation of international organizations and alliances. One of such organizations, the League of Nations, emerged at the end of WWI on account of the determination by European allies to prevent another world war (Peter Gay et al, 1973:107). This objective was not realized due to some inherent weaknesses of the League, resulting in WWII.

At the end of WWII, the need for a more effective and inclusive world body led to the formation of the United Nations (UN) with the objectives of ensuring global peace and security. Since conflicts and crises have become an inevitable outcome of human existence, most countries in the world consider it a primary responsibility to develop some mechanism to handle them. This brought to the fore, the need for a rapid intervention force capable of being deployed within the shortest possible time, to manage conflicts.

The UN fashioned out the concept of a rapidly deployable multinational force far back in 1947, but it remained sidelined until 1992, when the then UN Secretary General Boutros-Boutros Ghali called for a system by which governments commit themselves to hold ready, at an agreed period of notice, specifically trained units for peacekeeping service. The purpose of standby arrangement is to have a precise understanding of the forces and other capabilities a member state will have available at a given state of readiness (UN Secretariat, Report of the Secretary-General on Standby Arrangements for Peacekeeping, 1995).

The UN Standby Arrangement System (UNSAS) was launched in the early 1990s. The UNSAS is basically a database of military, civilian police, assets and expertise made available for rapid deployment to UN peacekeeping operations. Due to different training doctrines and equipment of member states, UNSAS could not achieve the effectiveness required of a standby force (Clare Short and Jack Straw). In 1996, the UN established the Standby High Readiness Brigade (SHIRBRIG), for rapid deployment to peacekeeping operations. The SHIRBRIG was aimed at providing the UN with a non – standing multinational brigade at high readiness and is based on UNSAS.

The quest for peace and security was not limited to Europe and the Americas alone. In the early 1960s, the late Dr Kwame Nkrumah, one time President of Ghana, proposed the formation of an African High Command (AHC). He envisaged a quick reaction force to be used in resolving conflicts on the continent. Unfortunately, some African leaders who were not willing to give up their newly found sovereignties rejected the initiative. However, the first African regional organization, the Organisation of African Unity (OAU) was formed in 1963 in response to his vision. The main objectives of OAU were the promotion of unity and solidarity of independent African states and the eradication of colonialism from Africa.

Although the OAU succeeded to a large extent in eradicating colonialism from the African Continent, it could not attain other objectives. For instance, its goal of fostering peace and stability in the region remained elusive as fratricidal wars continued to ravage the continent. Salim, a former Secretary General of the OAU, stated that ‘the OAU was able to facilitate the eradication of colonialism, but the internal crises, poverty and social degradation in Africa were issues the OAU was to accommodate because of mounting obstacles’ (Salim 2000:24). This led to the formation of the African Union (AU) in July 2002.

The new regional body was modeled after the European Union (EU) and designed to have a Parliament, Central Bank, Court of Justice, common currency and a Peace and Security Council (PSC) (AU Constitutive Act). The ‘Protocol Relating to the Establishment of the PSC’ provides for an African Standby Force (ASF) to enable the PSC deploy peacekeeping missions. The PSC was also mandated to intervene in regional crises pursuant to the provisions of the AU Constitutive Act.

At its inception in 2003, it was envisaged that by 2010, the ASF would be able to respond to requests for monitoring, peacekeeping, and peace enforcement missions from sub regional bodies, AU or UN within the framework of Article 13 of the PSC Protocol (AU Constitutive Act). This was to be achieved in 2 phases as follows:

(1) Phase One (July 2003 – 30 Jun 05): Establishment of a strategic level capacity for the management of Scenarios 1-2 missions, while Regional Economic Communities (RECs)/Regions would complement the African Union (AU) by establishing regional standby forces up to a brigade size (3500 – 5000) to achieve up to Scenario 4. The list of scenarios is contained at Appendix I.

(2) Phase Two (1 Jul 05 to 30 Jun 10): It was envisaged that by the year 2010, the AU would have developed the capacity to manage complex peacekeeping operations, while the RECs/Regions will continue to develop the capacity to deploy a mission Headquarters (HQs) for Scenario 4, involving AU/Regional peacekeeping forces (Article 13 of the Au PSC Protocol).

Regrettably, as at 31 Dec 10, these phases are yet to be fully achieved as earlier envisaged by the African Chiefs of Defence Staff (ACDS) in 2003. Thus there is a need to critically examine the specific problems, contributions and strategies for a fully functional ASF.

1.2 STATEMENT OF THE PROBLEM

Conflicts have continued to ravage the African continent. For instance Somalia, which is categorized as a failed state, has continued to defy efforts to rectify the situation there. Presently, the waters of the Indian Ocean off the coast of Somalia are being patrolled by the military forces of several non-African countries. These patrols are meant to create a secure corridor for the passage of ships, mostly conveying petroleum products through the Gulf of Aden. Several Somali pirates have been killed by these patrols. In January 2011, 5 pirates were captured by a South Korean patrol team and are to stand trial in South Korea. Although piracy is deplorable, these patrols can be regarded as diplomatic affronts to Somalia in particular and Africa in general. Furthermore, no developed country will allow the killing, capture and trial of its nationals to go unchallenged as is being done in Somalia. This patrol task ought to have been a prerogative of the ASF, if it were operational.

Similarly, the crisis in the Darfur region of Sudan continues to linger. The United Nations African Union Mission in Darfur (UNAMID) lacks the manpower required to command all factions to order. As at December 2010, the UNAMID strength stood at an average of 20,000 personnel as against the 26,000 men required to effectively police Darfur. In light of the enormity of its tasks, the UNAMID is greatly handicapped by this manpower challenge. However, a fully operational ASF could easily handle the Darfur crisis with little or no assistance from the UN

The earlier that a conflict is tackled and ‘nipped in the bud’, the easier it is to contain and resolve. Thus the current political impasse in Cote d’Ivoire desperately needs an intervention force to douse rising tensions and prevent the possible outbreak of another war. Again, the ASF would have been aptly used there. Conflicts in several African countries have shown that the international community is willing to turn a blind eye to genocide and mass killings in Africa. Such conflict regions include Rwanda, Liberia, Sierra Leone, Congo, Sudan and Cote d’Ivoire amongst others. It has become obvious that the developed countries intervene in African conflicts primarily to safeguard their national interests.

In 1997, Salim drew attention to the fact that ‘OAU member states can no longer afford to stand aloof and expect the international community to care more for our problems than we do, or indeed to find solutions to those problems which in many instances, have been of our own making. The simple truth that we must confront today is that the world does not owe us a living and we must remain in the forefront of efforts to act and act speedily, to prevent conflicts from getting out of control’ (Dr. Salim,). Similarly, Mbeki stressed that ‘recent international events have confirmed the need for us Africans to do everything we can to rely on our own capacities to secure our continent’s renaissance’ (Address of the President of South Africa). It is against this backdrop therefore, that this research seeks to answer the following research questions:

(1) What are the security challenges confronting the AU?

(2) How can the ASF help in combating the security challenges confronting the AU?

(3) What progress has been made in establishing the ASF?

(4) What is the way forward toward full operationalization of the ASF?

1.3 OBJECTIVES OF THE STUDY

The objectives of the study are to:

(1) Review the security challenges confronting the AU.

(2) Examine how the ASF can help in combating the security challenges confronting the AU.

(3) Show up what progress has been made in establishing the ASF.

(4) Proffer suggestions on the way forward toward full operationalization of the ASF?

1.4 RESEARCH HYPOTHESIS

A region is secure when its citizens can live peacefully with access to basic necessities of life, freedom and all fundamental human rights. However, superpower influences, illiteracy, lack of infrastructure, proliferation of small arms and ethnic sentiments amongst others have combined to render Africa conflict – prone.

The conflicts ravaging Africa have increasingly become intra – state, with calamitous consequences. The hypothesis that guided this work assumes that there is a causal relationship between the absence of an ASF and repeated armed conflicts on the African continent. This study seeks to establish that if the ASF becomes fully operational, security on the African continent would be improved.

1.5 SIGNIFICANCE OF THE STUDY

The series of conflicts which have ravaged the African continent, decimated its population and hindered its unity and development are a serious cause of concern. Furthermore, the lingering crises in Somalia and Sudan and the political impasse in Cote d’Ivoire push to the fore, the glaring need for the ASF. Unfortunately, seven years after its inauguration, the ASF is yet to become fully operational. Moreover, there has been uneven progress among the sub regions in implementing the ACDS roadmap to full operationalization of the ASF.

This study is therefore significant in the sense that it would review the security challenges confronting the AU and examine how the ASF can help in combating them. It would also take a look at the progress so far made in establishing the ASF and proffer suggestions towards full operationalization of the ASF. This will no doubt benefit the AU and its member states in the search for an effective conflict management mechanism on the continent. The findings of the study would also add to the existing literature and reference materials on ASF and regional security.

1.6 SCOPE OF THE STUDY

The ASF is based on the concept of regional security. This concept has permeated international discourse since the end of WWI, leading to the formation of the League of Nations and later, the UN. The concept of standby forces can also be traced back to the UN in 1947.

This study will cover the period 1963 till date. It was during this period that regional security started receiving due attention in Africa through the creation of the OAU. Reference would be made to other regional security arrangements as it is believed that such arrangements would be in tandem with this study.

1.7 RESEARCH METHODOLOGY

This research seeks to identify the african standby force prospects for regional security. To this effect, the methods of data collection and analysis will be focused on.

1.7.1 METHODS OF DATA COLLECTION

The data used in this study were collected from both primary and secondary sources. Primary data were gathered through interviews and consultations with service personnel who had worked or are working at the ASF HQ in Addis Ababa. Other sources were the NAPKC, DHQ, Service HQs or personnel who have participated in PSOs. A sample of the questionnaire is at Appendix II. Secondary data were gathered from books, journals, newspapers, reports of conferences, unpublished works, magazines, periodicals, lecture notes and the Internet.

1.7.2 METHOD OF DATA ANALYSIS

The research method used in this study is the descriptive research technique. To achieve this thesis, the research design applied was the causal comparative. It is a retrospective study of the relationship between the independent variable which is the ASF and its outcome, the dependent variable, regional security.

Adopting this research method was necessary as it provides the most comprehensive approach towards adequate coverage of the areas to be studied (AFCSC Guide to Research Methodology). Thus this study observed and evaluated the concept of regional security to establish the effects standby forces have on it.

1.8 LIMITATIONS OF THE STUDY

This research work was impaired by some limitations. The key limitations were the use of secondary data to analyse the concepts of regional security, standby forces and the ASF. Although the data used were from reputable sources, the authenticity of their findings might not be insulated from bias.

The concepts of regional security and standby forces are complementary. Hence the empirical testing of both concepts was relatively impossible. However, this did not affect the quality of research carried out and the outcomes of the findings.

1.9 ASSUMPTIONS

1. In order to stem the wide spread of conflicts in Africa, a standby force is urgently needed.

2. The standby force must be equipped as a rapid response force.

3. Such a standby force must be completely African – manned.

1.10 CONCEPTUAL DEFINITIONS

For the purpose of this study, the following terms are defined as follows:

1. Concept of Conflict: Human history shows that conflict is a natural consequence of human interaction. It is a product of clashes of different opinions, views and interests between individuals, groups or states. According to Dougherty and Pfaltzgraf, conflict is ‘a condition in which one identified group of human beings…is engaged in conscious opposition to one or more other identifiable groups because these groups are pursuing what are or appear to be incompatible goals’ (Osisioma, 2008:1). Lewis Coser goes further in the discourse on conflict by conceptualizing the term as ‘a struggle over and claims to scarce resources in which aims of opponents are to neutralize, injure or eliminate these rivals’ (Coser, 2008:1). Even though conflict is natural to human beings and associations, it does not necessarily have to be violent (Dougherty, 2008:1).

When conflict becomes violent, it has transformed into war which Clausewitz describes as ‘a duel on an extensive scale… an act of violence pushed to its utmost bounds…directed upon the destruction of the enemy’s powers’ (Coser, 2008:2). When this situation obtains between sovereign entities, such as nation states, war then becomes ‘a continuation of state policy by other means’ or ‘a continuation of political commerce’ (Osisioma, 2008:3).

These conflicts according to Stedman arise ‘from problems basic to all populations, the tugs and pulls of different identities, the differential distribution of resources and access to power, and competing definitions of what is right, fair and just’ (Stedman, 2008:3). The message is that conflicts arise essentially from injustices suffered by individuals, groups or states and when these conflicts are not resolved peacefully, they become violent

When conflicts transform into civil or international wars, they bring about other disastrous consequences. People are killed, maimed, displaced or turned into refugees while properties and infrastructure are destroyed. Also, those with low morals become beasts in human skin, raping, carrying out extra-judicial killings, looting, extorting and robbing. With each war therefore, man who is supposed to be a rational and civilized being further descends into the abyss of inhumanity. War destroys social values, pollutes and degrades the environment and diverts resources from the pursuit of development and human happiness to war financing. At times, war taxes are imposed on citizens of a warring state and this worsens their conditions. War spreads pestilence, hunger, starvation, destitution and lawlessness. Between nations, war forcefully changes feelings and boundaries and can lead to the collapse of governments.

2. Concept of Security: The concept of security, according to Ekoko, emphasizes military power as the main instrument for the preservation of national sovereignty, independence and territorial integrity. Wolfers and Lippman have different definitions. Wolfers sees security as ‘the protection of values previously acquired or the absence of fear that these values would be attacked’ (Stedman, 1991:368). Lippman has been more explicit in his opinion about security. In his view, ‘a nation has security when it does not have to sacrifice its legitimate interest to avoid war, and is able to, if challenged, to maintain them by war’ (Yusuf, 2008:2).

It has been generally argued that what constitutes security to one state or group of states might constitute insecurity to others. Arnold views security ‘as the relative freedom from harmful threats (James, 1990:245). The Concise Oxford Dictionary defines the word security ‘as the safety of state or organization against criminal activity.’ Arnold’s definition of security is worthy of particular note as it relates security to underpin the role of international regimes in ensuring stability within a given region. This therefore means that security is seen from both the domestic and international perspectives.

3. Concept of Regional Security: Regional security is the security cooperation among nations in the same geographical location (Emuekpere). A region is a political identity consisting of a group of states, which are proximate and interdependent. Regions are generally characterized by geographical relatedness. The essence of regional security as identified by Buzan is a ‘set of contiguous states with a level of integration between them, such that a lack of security within them or between individual states in the region affects the security of the set of states as a whole (Barry, 1983:73).The AU is an organization of African nations created to promote continental peace, unity, and cooperation. The organization works to resolve conflicts between nations and to coordinate political, economic, cultural, scientific, medical, and defense policies. The AU has 53 member nations, with its headquarters in Addis Ababa, Ethiopia. The organization was founded in Addis Ababa on 25 May 63, as the OAU. It retained that name until 2002 when it formally became the AU.

At the time of the OAU’s founding, African leaders disagreed about what kind of organization it should be. Some leaders pushed for the creation of a central government that would unite all of Africa under one authority. However, many of the nations had just recently gained independence from colonial rule and their leaders opposed the idea. The leaders eventually reached a compromise but in so doing created an organization that is controlled by its member nations, leaving it with little power to act on its own. Nonetheless, the AU has helped strengthen ties among African nations and settle disputes. But it has also faced many problems that have undermined its ability to achieve its goals (Emuekpere).

The experiences relating to widening and deepening of regional security regimes in Africa have not been particularly satisfactory. This is evident from the fact that most African states witnessed several conflicts and wars since their independence. This made the concept of regional security among African countries difficult despite their geographical proximity. However, recent events have shown that African leaders are now willing to pursue a common regional security regime. Regional security regimes are increasingly becoming an integral part of the globalization process. This process is described as the ‘principle of complex interdependence (Barry, 1991:25). That is the assumption that multiple channels connect societies, making the quest for security indispensable. It can therefore be deduced that regional security is the security cooperation among nations in the same geographical location.

4. Concept of Standby Forces: There are various perceptions as to what constitutes a standby force. The earliest usage was when it was referred to as a ‘command headquarters’ that is ‘German Standby force’ during WW II (Burgess, 2009). The term was used by some European defense scholars like Firlie to describe the numerous security regimes embarked upon by European nations (Kenneth, 1990:245). For instance, the European Union Rapid Response Force (EURRF) which is described as a standby force is a non standing army made up of troops contributed by member states to undertake peacekeeping operations.

The EURRF was borne out of the desire of EU to develop a Common Foreign and Security Policy (CFSP) outside NATO for crisis management and conflict prevention within Europe (European Foreign and Security Policy News Letter; Issue No 8, 2002). The force uses the military headquarters of NATO in Belgium as its operational headquarters. Its first military mission was in Macedonia (Michael, 2000:34). The force is obliged under the UN agreement ratified by member states to deploy troops to UN peacekeeping missions.

The Standby High Readiness Brigade (SHIRBRIG) established by Denmark, Austria, Canada, Netherlands, Norway, Poland and Sweden is another example of a standby force (Michael, 2000:34). The force under UNSAS is aimed at rapid deployment for peacekeeping or humanitarian operations. Troops deployed are only expected to spend a maximum of 6 months in mission areas. The SHIRBRIG is established at low additional costs to participating countries. Firstly, Denmark is the host country to the SHIRBRIG headquarters and provides many facilities free. Secondly, participating countries pay for training and preparation for deployment. Lastly, at the actual time of deployment, according to existing rules the UN pays for all expenses (Lesley).

The NATO, EURRF and SHIRBRIG present good examples of standby forces. A standby force can therefore be conceptualized as the pooling together of military/civil resources by a number of states for their collective security. Standby forces thus connote a security regime, with a well-defined force structure contributed by parties of the regime for their collective security.

5. Concept of African Standby Force: In the early 1960s, the late Dr Kwame Nkrumah, one time President of Ghana suggested the formation of an African High Command (AHC). He envisaged a quick reaction force drawn from member states to be used in resolving conflicts on the continent. Unfortunately, some African leaders who were not willing to give up their newly found sovereignties rejected the initiative. However, the first African regional organization, the Organization of African Unity (OAU) was formed in 1963 in response to his vision.The OAU succeeded to a large extent in eradicating colonialism from the African Continent, it could not attain other objectives. For instance, its goal of fostering peace and stability in the region remained elusive as fratricidal wars continued to ravage the continent. Salim, a former Secretary General of the OAU, while reviewing the achievements of the Organisation stated that ‘the OAU was able to facilitate the eradication of colonialism, but the internal crises, poverty and social degradation in Africa were issues the OAU was to accommodate because of mounting obstacles (Salim, 2000:24). This led to the formation of the African Union (AU) in July 2002. The new regional body was modeled after the European Union (EU) and designed to have a Parliament, Central Bank, Court of Justice, common currency and a Peace and Security Council (PSC) (AU Constitutive Act).

AU member states adopted the ‘Protocol Relating to the Establishment of the PSC in July 2003.’ The Protocol provides for an African Union Standby Force (ASF) to enable the PSC deploy peacekeeping missions. The PSC was also mandated to intervene in regional crises pursuant to the provisions of the AU Constitutive Act. The ASF is intended for rapid deployment in peace support operations for the AU that may include preventive deployment, peacekeeping, peace building, post-conflict demilitarization, and humanitarian assistance. The aim is to have one standby brigade in each of Africa’s five regions, supported by civilian police and other capacities, by 2010. Good progress has been made in training, development of doctrine, Standard Operating Procedures, and command and control concepts (Ciliers, 2010).

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AFRICAN STANDBY FORCE: PROSPECTS FOR REGIONAL SECURITY