Researched by Daniel Mayowa Ajayi.
A former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, after her time in Office, has been caught up in multiple allegations of corruption, both home and abroad.
This prompted Page 36 to do a thorough investigation concerning the achievements of the former Minister while in Office, if any; and her impact on the Nigerian Oil Industry, while serving under the President Goodluck Jonathan administration. This is to create a balance surrounding her legacy.
Find below the results of our Correspondent’s investigation below:
Mrs. Diezani Alison-Madueke’s drive to empower local enterprises, saw her champion the passage of the Nigerian Oil and Gas Industry Content Development Bill.
The Bill was signed into law by President Goodluck Jonathan, in 2010, influencing indigenous participation and the development of local capacities, thus changing the face of the Oil sector in Nigeria, at the time.
Alison-Madueke’s Leadership as Petroleum Minister, saw to the revamp and rehabilitation of key Depots, to restore petroleum products supply in Nigeria.
She supported the discontinuation of subsidy, “because it poses a huge financial burden on the government, disproportionately benefits the wealthy, [and] encourages inefficiency, corruption, and diversion of scarce public resources away from investment in critical infrastructure”.
Alison-Madueke initiated the Gas Masterplan, which was worked very stringently, to ensure Nigeria not only moved from gas to power, but also from gas to industry, and to ensure we got value for our gas to export.
The Petroleum Ministry under Diezani’s watch, had to deal with the scourge of illegal refineries, crude oil theft, as well as the issue of over 5,000 kilometers of vandalised pipelines, but she remained very resolute.
Over the last three years in Office as Minister, she was able to drop the rate of bunkering from 200,000 to about 60,000 barrels per day.
Mrs. Alison-Madueke took away import licences in November 2011, from 90 Petroleum Marketers, who had no infrastructure in Nigeria, because more infrastructure was needed in the country, which resulted in her receiving several death threats. This is according to a Financial Times Report in 2012.
Alison-Madueke also made a major impact, by the advice she gave to President Jonathan, that if he kept granting licences and leases without due process at the time, it would “leave the door wide open to political favouritism and corruption”, and that the Petroleum Minister would retain “draconian powers to determine rentals and royalties by regulation”.
She worked hard to introduce a series of Initiatives designed to revolutionise the Petroleum Industry in Nigeria, and to realise an internationally competitive Oil and Gas sector.
In 2010, she became the first woman to lead a National Delegation to the Organisation of Petroleum Exporting Countries, OPEC, Conference.
Alison-Madueke worked hard to promote Nigeria’s interests in the international community, and to entrench Nigeria’s right to have its views taken into account in global energy discussions.
She received a Honourary Doctorate in Management Sciences, Nigerian Defence Academy, according to the World Economic Forum.
The former Minister of Petroleum Resources, saw to the Line Pipe Mill and Coating Facility being constructed in Ikaye Community, in Ologbo area of Edo State, by Technova Africa Group Limited.
The Nigerian Content Act in the Oil and Gas Industry under Alison-Madueke, created over 15,000 direct jobs, since it was signed into law by President Goodluck Jonathan, on April 22, 2010.
The Nigerian Content Act also created about 10,000 training and attachment opportunities for Nigerians under the former Minister, since it was enacted, according to an Energy Mix Report, of July 3, 2013.
The Nigerian Content Act, which was initiated by Alison-Madueke, provides that 100 percent of the pipelines to be used in the Oil and Gas Industry, must be procured in Nigeria. She had said: “As you may all know, a lot of these products were usually imported from outside Nigeria, and in this way, we were actually exporting opportunities for Nigerians to work; opportunities for Nigerians to learn how to do these things, and opportunities to building technology.”
The former Minister of Petroleum Resources, in her efforts to optimise the Gas potentials of Nigeria, enforced the Domestic Gas Supply Obligation, DGSO, by establishing the Domestic Gas Supply Obligation, DGSO, Allocation Model, and assigned the obligations to the respective Gas Producers.
She saw to the Generated Gas Resource Sourcing Data, establishing a Swapping Mechanism, for the effective delivery of Gas to consumers with minimal pipeline infrastructure.
She also saw to the implementation of the critical aspects of the Nigeria Gas Master Plan. These were all geared towards maximizing the potentials of the natural resource for economic growth. This is according to Napims News, in the 3rd quarter of 2011.
During Diezani Alison-Madueke’s Leadership of the Oil Industry, the Deepwater Oil production was greatly enhanced with the introduction of the Usan floating, production, storage, and offloading facility; the integrity of key product pipeline infrastructure was re-established.
The Kaduna Refinery’s Fluid Catalytic Cracking Unit was commissioned for the first time in 8 years, in March 2012, under Alison-Madueke, according to Oxford Business Group.
She was also responsible for the Oil and Gas Industrial Park, which created opportunities for Nigerians, including Bayelsa indigenes. Over $100 million investment was sunk into the project and infrastructure construction under Diezani’s Leadership. The facility provided a platform for the manufacturing of components of the Oil and Gas Industry equipment, and created over 50,000 jobs.
Diezani Alison-Madueke’s contracts for the critical pipeline infrastructure for Gas supply to Alaoji, Olorunsongo, were awarded with projects’ completion, and approval was also given to change the contracting strategy for OB3 Gas pipeline, in order to expedite project execution.
She was able to maintain Crude Oil production above the OPEC assigned production quota of 2.3 million bbl/d, and increased the tempo of Oil exploration activities in the Inland Sedimentary Basins, especially by the Frontier Exploration Services section of the Nigerian National Petroleum Corporation, NNPC. A major enhancement of deepwater Oil production was achieved as a result of the arrival of FPSOs’ into Nigerian waters, according to Beyond Investment\Group.
Diezani Alison-Madueke made Nigeria make critical infrastructure investments, such as marine vessels, petroleum jetties, and depots, to the extent that over 50 percent of vessels operating in Nigeria, were owned by Nigerian indigenes, according to a Pulse Ng report.
She also made sure that the downstream sector, products supply and availability, were sustained, expanding NNPC‘s Retail network, in order to improve product availability.
She made the Gas supply for Power generation and Industrial use sustained, with supply outstripping demand both in the Western and Eastern axis. Available records indicate that the volume of gas available for Power generation was unprecedented in the history of Oil and Gas in Nigeria, under the former Minister.
The implementation of the critical Gas projects as encapsulated in the Gas Revolution, was given a boost with the visit of the Investors, Xenel of Saudi Arabia, and Nagajurna of India, to the proposed site at Koko, Delta State, for the 1.3 metric tonnes per annum Petrochemical, and 1.3 MTPA fertilizer plants, under Diezani.
As a result of her good works, there was general increased Investor’s confidence in the Gas Revolution, with additional Gas utilisation projects being pursued. These included:
2.75 metric tonnes per annum Dangote Fertilizer plant in Edo State.
2.4metric tonnes per annum Brass Fertilizer plant in Bayelsa State.
1.34 metric tonnes per annum Indorama Fertilizer, and 1.2MTPA methanol plants at Eleme, Rivers State.
450,000 tonnes per annum methanol plant at Onne, Rivers State.
She tackled the issue of kerosene availability, through the NNPC Direct Distribution Programme.
She developed the Indigenous Marine Vessel and Offshore Assets Acquisition Strategy, to promote the utilization of marine vessels and offshore rigs/equipment with genuine Nigerian ownership in all Oil and Gas operations, to increase the participation of Nigerians, empower communities, and maximize Nigerian crew.
Diezani saw to the launch of the Offshore Safety Permit, OSP, to account for the safety and competencies of personnel who embark on swamp, offshore and deep offshore duties, in line with the expectation of the Nigerian Content Policy.
She also saw to the completion of a pilot scheme of the National Production and Monitoring system, MPMS, aimed at ensuring an independent real time production monitoring, accurate production accounting, and to enhance efficiency in Terminal Operations in the country.
She ensured the increase of in-country fabrication tonnage from 1,000,000 in 2009, to 1,200,000 during her time in Office as Petroleum Minister.
Under Alison-Madueke’s Leadership, Petroleum products supply was sustained nationwide, through a combination of offshore processing, SWAP arrangements, and increased domestic refining. The first 100 days saw the re-streaming of the Kaduna Refinery, and sustained operation of the Warri Refinery.