The 650,000 barrels Dangote Refinery, the world’s largest single train located in Lekki, Lagos has commenced production.
This was confirmed to the News Agency of Nigeria (NAN) by Mr Anthony Chiejina, Group
Head Corporate Communications, Dangote Group on Friday in Lagos.
Chiejina said that the company started production early hours on Friday,
“The refinery started production after receiving six million barrels of crude oil from the Nigerian National Petroleum Company Ltd. (NNPC Ltd.). (NAN)(www.nannews.ng)
The Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission, Mr Gbenga Komolafe, is seeking enhanced collaboration with the Nigerian Police toward curbing oil theft in the country.
The CCE said the collaboration would help to arrest the daunting challenge of oil theft in Nigeria’s petroleum sector,
Komolafe emphasised the urgent need for a united front against the escalating challenges posed by the menace when he visited the Inspector General of the Nigerian Police Force, kayode Egbetokun, at the Force Headquarters in Abuja on Thursday.
Komolafe, in a statement signed by Mrs Victoria Okefe, Manager, Corporate Communications, said the collaboration was necessary to curb the illicit activities which had plagued the nation’s oil and gas industry.
Painting a horrid picture of the menace and the detrimental effect it has on the countrys economy, the NUPRC boss underscored the importance of joint efforts to safeguarding Nigeria’s commonwealth.
After briefing the Inspector General on the efforts made so far by the Commission, in collaboration with other security agencies and relevant agencies of government, the CCE said arresting the menace required a joint approach and strategic coordination.
He said this informed his decision to seek partnership with the Nigerian Police to leverage its expertise in law enforcement, particularly in apprehending and prosecuting perpetrators.
Responding to the request, the Inspector General acknowledged the severe impact of oil theft on both the financial landscape and the reputation of the country.
Egbetokun agreed on the need for urgent action to deal with the situation for the sake of the growth and stability of the national economy. (NAN)(www.nannews.ng)
The Federal Government says it has developed a roadmap to end crude oil theft in the country.
Gov. Hope Uzodimma of Imo and the Chairman, Crude Oil Theft and Management Committee of the National Economic Council (NEC), said this when he briefed newsmen shortly after a closed-door meeting with some governors in Abuja on Wednesday.
Uzodimma said that the committee was constituted in 2023 by Vice-President Kashim Shettima following growing concern over crude oil theft.
“This has reduced our oil production status drastically and has caused untold hardship to the country and almost tampered with the margin of our currency.
“Today, we met since the first meeting after the reconstitution to develop a work plan that will be used by the committee to be able to confront this case of crude oil theft headlong.
“We just developed a road map, an action plan that we will take. At this stage of preliminaries, we are trying to identify, really, the areas of leakages and the likely causes and what have made it possible.
“Our concern is to restore Nigeria’s oil production profile to either better than what it used to be or at least, where it was, which is about two million barrels,” he said.
Uzodimma added: “We are committed not to disappoint the expectations of the national economic council.
“It is my hope, going by our deliberation, that we will be able to make the difference as our own contribution toward national development.”
The News Agency of Nigeria (NAN) reports that other governors at the meeting included Gov. Sheriff Oborevwori of Delta; Gov. Bassey Otu of Cross River, Gov. Lucky Aiyedatiwa of Ondo; Gov. Mai Mala Buni of Yobe; and the Deputy Governor of Bayelsa, Mr Lawrence Ewhrudjakpo. (NAN)
The Nigerian National Petroleum Company (NNPC) Limited says it recorded a profit of N2.548 trillion in 2022.
The national oil company in its 2022 Financial Performance Report posted online described the profit as the highest since its inception in 1977.
The financial report stated that it recorded a loss of N803 billion in 2018 and N1.7 billion loss in 2019.
According to the report, 2020 recorded N287 billion profit which it tagged “Turning Point” while in 2021, the company’s profit continued to grow to N674.1 billion tagged “Assurance”.
The report stated that the profit continued to increase to N2.548 trillion in 2022.
The News Agency of Nigeria (NAN) reports that the NNPC Ltd. had between Dec. 30, 2023 and Jan. 5, 2024 recorded 157 incidents of crude oil theft from seven incident sources and arrested 17 suspects.
The sources included the Nigeria Agip Oil Company, Pipeline Infrastructure Nigeria Ltd, Maton Engineering Ltd., Tantita Security Service Ltd, Shell Petroleum Development Company (SPDC), NNPC Command and Control centre and Government Security Agencies.
Its report stated that in the past week, 52 illegal refineries were discovered and destroyed in Abia, Imo, Rivers and Bayelsa states while 32 illegal connections were uncovered in several parts of the Niger Delta.
They were removed and repaired along central corridor in the Niger Delta while seven illegal storage sites were uncovered in AkwaIbom state and buried crude drums unearthed in bushes in Bayelsa and Warri, Delta.
The company said there was no backing down on the menace until it was eradicated. (NAN)(www.nannews.ng)
==================
Edited by Gregg Mmaduakolam/Ali Baba-Inuwa
The Nigerian National Petroleum Company (NNPC) Limited has gifted N200,000 Premium Motor Spirit (PMS) voucher to a lady identified as ‘Mummy Zee’ after being mocked online for waking up to cook for her husband at 4:50 a.m.
NNPC Ltd. disclosed this on Saturday in a tweet shared on its official X handle (formerly known as Twitter).
The tweet reads, “Hello #_Debbie_OA, we love your amazing love story and would like to gift you a free ₦200,000 PMS voucher redeemable at any of our 900+ retail stations nationwide.
“This will ensure that Mummy Zee has #EnergyforToday and #EnergyforTomorrow. We have just followed you. Please check your DM. Best wishes.”
The lady had earlier tweeted on X: “I’ve always been too lazy to wake up and get his lunch ready. But the day he told me a colleague brought two spoons so he’ll eat with her, was the day I set my alarm for 4:50 a.m.”
She revealed that the reason for waking up so early to cook was because her husband told her how he had been eating the food of his female colleague at work.
Her tweet went viral and generated mixed reactions on social media. While some X users questioned why she had to wake up that early to cook, others hailed her for being exceptional in discharging her duties.
The lady, according to tweets on X and other social media platforms has also gotten over N2 million donations and several gifts from individuals including smart phone from a smart phone company.
The NNPC Ltd. also joined other donors by offering her a voucher donation redeemable at any retail station in the country. (NAN)(www.nannews.ng)
A Chinese firm, Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd. and NIGUS International, a Nigerian firm, have signed a $1 billion agreement to fund and develop gas flaring solutions for Nigeria.
The News Agency of Nigeria (NAN) reports that the pact signing held on Friday in Abuja, was in the light of the national directive from President Bola Tinubu.
The deal which is monumental to Nigeria will help to end gas flaring and introduce Nigeria into the world of Green Sustainable Energy Production.
Speaking at the agreement signing, HRH Malik Ado Ibrahim, the Chief Executive Officer and Chairman of NIGUS, said the partnership with the Chinese company was aimed at imbibing its new state of the art technology profile to convert flared gas for commercial use.
This new technology, according to him, will create Gas-to-Liquid (GTL), (synthetic diesel to galvanise energy mix), Liquefied Natural Gas (LNG) for export and Liquefied Petroleum Gas (cooking gas), among others.
NAN reports that the GTL technology is a process that converts natural gas, the cleanest burning fossil fuel to high quality liquid fuels such as gasoline, jet fuel and diesel.
“The joint ventures is about NIGUS, as a renewable energy company, joining forces with the technology that allows us to bring clean climate economy to Nigeria and create value from what we are wasting at the moment to generate lower pricing energy.
“We seem not to be contributing to the carbon footprint; we flare a lot of our gas, and about 90 per cent of what we produce in Nigeria in being flared, not utilising the gas.
“We are bringing to play a very modern, state of the art technology by joining forces with China to create wealth and carbon neutrality, then generate lower price energy.
“The project is to demonstrate the president’s wish to utilise flared gas and this technology will put his wishes into action.
“The GTL will allow us to turn the gas into liquid and to create LNG. The paradigm shift is that we will be able to imbed the technology where it is needed rather than adding infrastructural cost,” he said.
He explained that the packaging would be beneficial to Nigeria in terms of job creation for economic growth and development.
“If Nigeria is able to push this technology, we can get some global green funds. We expect that our carbon footprint and neutrality profile will allow the joint ventures to access the kind of funds Mr President will make available for Nigeria,” he said.
Mr Yung Ruming, the Chief Executive Officer, Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., while expressing readiness for the partnership, said its technical team and equipment would be deployed to actualise the project.
Ruming thanked the Federal Government for giving the company the opportunity to carry out the work.
He noted that Nigeria and China had enjoyed good relationship in the past years, hence the project would be of immense benefit to Nigerians. (NAN)(www.nannews.ng)
By Emmanuella Anokam, News Agency of Nigeria (NAN)
With over 200 trillion cubic feet (tcf) Nigeria has the largest gas reserves in Africa. It is ranked 9th globally.
Given our high dependence on oil and gas for industrial and domestic energy the global transition from carbon fuel to sustainable energy sources poses a significant threat to Nigeria’s economy.
Most African countries, including Nigeria, are still facing energy availability problems as their energy consumption is several times below the world’s average.
Experts estimate that Africa will account for over 60 per cent of global population growth by 2050.
In view of urbanisation experts forecast that Africa will experience significant economic growth to be accompanied by two-fold increase in natural gas demand.
Nigeria, Africa’s largest Liquefied Natural Gas (LNG) exporter lacks access to energy and since gas is the energy transition fuel, it is only logical that its development, availability and utilisation be enhanced.
Natural gas offers effective solutions to major areas of activities causing air pollution, including power generation, transport and household applications.
It can replace coal in power generation and oil products in transport; as for household applications, natural gas substitute Biomass (firewood) which according to experts account for up to 45 per cent of Africa’s energy mix
Apart from being used for cooking, transportation (in vehicles), heating and powering machines, industries among others, the gas is also a valuable raw material for the production of fertilisers.
A trip to Russia by the News Agency of Nigeria (NAN) on the invitation of its state-owned, Gazprom Energy Company revealed that partnering and emulating Russian Gas Projects and Gazprom’s competencies along the entire value chain of gas business is paramount for Nigeria’s gas development.
Russia has the largest proven natural gas reserves in the world, worth 47.8 trillion standard cubic meters. Iran and Qatar follow, with more than 30 and 20 trillion cubic meters.
Gazprom, its state-owned energy corporation, established in 1971 with sales of over 120 billion dollars is ranked as the largest natural gas company in the world and the largest company in Russia by revenue.
NAN discovered that the company operates many active oil, gas and condensate fields with cluster of producing gas wells, comprehensive gas treatment unit, booster compressor station, and transportation and power infrastructure.
Gazprom is the main supplier of natural gas to the country and to other countries. Under its Gas Infrastructure Expansion and Unified Gas Supply System, gas is supplied to millions of households and public utility enterprises.
The Russian government is also committed to its All-Russia Gasification Programme which started in 1960 and had promoted clean energy and energy security till date, according to Mr Buzin Vyacheslav, Diretor-General, JSC, Gazprom Distribution.
Vyacheslav said the total length of Gazprom’s Gas Distribution Networks transmitting gas to end consumers was more than 800,000 kilometres.
“To make clean energy widely available to Russians, Gazprom is actively bringing gas to cities and villages, by building gas pipelines stretching from major gas trunk lines to the land plots of consumers.
“Gas infrastructure expansion is the most ambitious socially significant project of Gazprom that helps improve the living standards of people and the main benefits of pipeline natural gas are convenience of use, eco-friendliness –reliability and cost efficiency.
“Uninterrupted delivery and safety are the main principles of Gazprom as regards gas supplies, both construction and operation of gas infrastructure facilities are performed in compliance with stringent requirements.
“Pipeline natural gas is the cheapest energy source available in Russia today. For instance, gas prices for the population are regulated by the government which makes them as affordable for households as possible“, he told NAN.
According to Vyacheslav, gas infrastructure expansion is a powerful driving force behind the development of regional economies.
“Owing to the access to pipeline gas, availability, larger tax payments; growth of employment and increase of living standards and better environmental conditions are achieved,” Vyacheslav told NAN.
He also said gas infrastructure is being expanded extensively across Russia, adding that by 2030, gas networks will be present in all places of Russia where it is technically possible.
Vyacheslav said for Nigeria to achieve gasification, technical and technological designs are involved to ascertain the cost.
He said it would also involve geological survey to identify rocky areas which might not be penetrated hence other options could be applied.
The energy company had expressed readiness to partner African countries, including Nigeria on gas technology, infrastructure and development, according to Dobycha Nadym, Mr Dimitry Stratov, its Deputy-Director General, Prospective and Development.
Prof. Stanley Onwukwe, an Oil and Gas Expert, said it was unfortunate that Nigeria had the resources and projects like the National Gas Development Strategy, Trans Sahara Gas Pipeline Project among others which were yet to be fully harnessed.
Onwukwe said Russia was proactive and had supplies gas to almost all the western world.
Inspection of NLNG Gas facility
Onwukwe, a professor in the department of petroleum engineering, Federal University of Technology Owerri, said there were blueprints established for gas developmental projects to thrive in the country but lack of political will hampered such projects.
“Nigeria has Compressed Natural Gas (CNG) already being used in Benin, most cars in the state are running on CNG.
“Initially the conversion of vehicles was free but they later started collecting almost a million naira which put people off.
“Such should be replicated nationwide while CNG refill stations should be established in various places for refilling but no such thing.
“The problem is not to have your vehicle’s engine converted for natural gas use but to see where to refill if you are on transit.
“It is a global village; just that the government does not have will power to implement such developmental projects after contract award,” he said.
He said the facility including gas base infrastructure for industries were necessary for distribution of gas but required proper investment and finance.
Dr Chijioke Ekechukwu, an economist said it would take a strong political will and implementable policies for Nigeria to attain such feat as Russia including having all our vehicles converted to CNG.
According to Ekechukwu, piping gas to homes is also possible if the supply is guaranteed.
He said it would be win-win to have policies in place towards achieving this, especially the fact that we have an abundance of gas.
“Only recently, the Nigerian government inaugurated a committee to convert cars and buses from petrol and diesel to CNG engine that can be used by these vehicles.
“We have an abundance of this gas, which is flared and wasted. Gas consumption both at home and by vehicles is climate friendly and should be encouraged,” said.
Also speaking, Mr Yusha’u Aliyu said Russia and EU have an excellent working policy on energy production and consumption, saying that technological advances also added value to their efforts.
“Gas is cost effective and environmental friendly. We have to develop a strategy and culture of commitment and efficiency to thrive,” he said. (NANFeatures)
The Nigerian National Petroleum Company (NNPC) Ltd. says there is no imminent increase in the cost of Premium Motor Spirit (PMS), commonly known as petrol.
The NNPC Ltd, in a statement by its Chief Corporate Communications Officer, Mr Olufemi Soneye, on Wednesday, urged Nigerians to disregard unfounded rumours of increase in the pump price of petrol.
Soneye assured the public that there were no plans for an upward review of the price of petrol.
“Motorists nationwide are advised against engaging in panic buying as there is presently ample availability of petrol across the country,” he said.
The News Agency of Nigeria (NAN) reports that there were reports in some sections of the media that fuel marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) clashed with the NNPC Ltd over payment of subsidy.
Soneye, while reacting through a WhatsApp message, emphasised that subsidy had been completely removed on petrol.
He also said the company did not have any dispute with IPMAN over any subsidy payment on petrol as alleged.
Mr Chinedu Okoronkwo, the immediate past National President, IPMAN, in a telephone interview with NAN, also dispelled rumours of dispute, adding that the public should ignore such news. (NAN)(www.nannews.ng)
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has rolled out its action plan for 2024 and near term 2024 to 2026 while highlighting regulatory actions to be implemented in furtherance of its mandate.
The Commission’s Chief Executive (CCE), Mr Gbenga Komolafe, in a statement on Monday said the Regulatory Action Plan (RAP) was focused on predictability, future licencing rounds policy and implementation, unit cost of production optimisation and automation.
Komolafe said it also focused on business process improvements for operational efficiency, promoting ease of entry and investment retention, vacating entry barriers associated with huge asset acquisition fees, deepening transparency, accountability and elimination of discriminatory practices.
He listed others as implementation of a carbon credit earnings framework for upstream operations, accelerating the execution of oil and gas development and production projects, and enforcement of Drill or Drop provisions of the Petroleum Industry Act.
“Other areas of focus include the optimisation of federation revenues, decarbonisation and greenhouse gas (GHG) emissions management in producing environment and Incorporation of green story in FDPs.
“It includes diligent monitoring of implementation of the Nigerian Gas Flare Commercialisation Programme (NGFCP) awarded sites for optimum flare-out monetisation and Host Community Trust Fund implementation and guiding the trust fund activities.
“This will reduce agitation in the operations areas and 100 per cent hydrocarbon accounting,’’ he said.
The CCE further said that the RAP also targeted the implementation of the new production curtailment regime and domestic crude supply obligation, annual asset performance assessment and reviews, enforcement of Domestic Crude Supply Obligation (DCSO).
He said it targeted Domestic Gas Distribution Obligation (DGDO) to improve domestic refining capacity, implementation of frontier exploration fund, decommissioning and abandonment fund and zero tolerance to default in royalty payment.
According to him, value creation through approval of annual work programme/budget and monitoring of financial viability, crude oil and gas pricing in contemporary terms, and revenue generation and implementation of zero default strategy on payment of royalty are included.
Komolafe indicated that the foregoing represented in broad terms the key thematic focus areas that would underpin the Commission’s activities in 2004.
“These are in addition to the Commission’s commitment to its general objectives and functions as provided in the PIA and by implication all other laws relating to upstream petroleum operations in Nigeria,” he added.
He explained that the aim of focusing on these areas was to bring into rapid effect, the transformation of the sector envisaged by the PIA (2021) and ramp up the efficiency and performance of the Sector.
He was optimistic that the implementation of these initiatives would increase revenues generated for government from the industry, improve operating environment, optimise value, generate jobs, and position the country as a destination for foreign direct investment. (NAN)(www.nannews.ng)
Some Oil and Gas Experts have said that the coming on stream of both Port Harcourt and Dangote refineries may lead to some marginal reduction in the cost of petroleum products and not a significant price crash.
The experts made this known in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.
According to them, some ancillary costs such as freight and port charges, among others would have been eliminated to achieve the marginal reduction.
The Federal Government had on Dec. 21, announced the mechanical completion and flare start-up of the Port Hacourt Refining Company Limited (PHRC) and the subsequent streaming of its phase two in 2024.
This, according to the Minister of State Petroleum (Oil), Sen. Heineken Lokpobiri, will herald the commencement of the production of petroleum products after the Christmas break.
The PHRC comprised of two refining units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.
Reacting to the development, an Associate Professor of Energy and Natural Resources, University of Abuja, Olanrewaju Aladeitan, said there should be some marginal reduction in petrol prices as some ancillary cost would have been eliminated.
However, he explained that the price of petroleum products may not come down significantly as to describe it as crashing.
“The price may not come down significantly considering the fact that crude oil and condensates supply for the domestic market under the Petroleum Industry Act is going to be based on a willing supplier and a willing buyer basis.
“And the fact that the supply of crude oil will be commercially negotiated having regard to prevailing international market price for similar grades of crude,” he said.
With this provision, he said there would be no dedicated percentage of crude for local refineries.
“Hence international market price which of course is denominated in dollars will still be the determinant of cost of the crude oil that would be refined.
“So I do not see how the price of Petroleum products will crash,” Aladeitan said.
Also speaking, Mr Yushau Aliyu, an Economic Expert, said reaching to a mechanical test of the refinery after a very long fruitless effort was an indication that part of our refined Premium Motor Spirit (PMS) deficit would be attended.
Aliyu described it as a good signal of recovering in the forex deficit which dominated the dwindling liquidity crisis.
“In addition, the new Nigerian National Petroleum Company Limited (NNPC Ltd.) is responding to the immediate solution for availability of PMS in the economy.
“We are expecting the NNPC Ltd.’s retail stations to reduce their pump price due to absence of landing cost in the short term effects,” he said.
Another oil and gas expert who preferred to remain anonymous said it was obvious that some people in the oil and gas sector were engaged in an act of sabotage.
He frowned at the situation where the government preferred to spend so much, including foreign currency, to import fuel, rather than fix it refineries.
“They claim that the 60,000 barrels capacity refinery in Port Harcourt is back on stream, while the 150,000 barrels capacity will work soon.
“We are waiting to see them work, including that of Warri and Kaduna. When they are put to use, let’s see why fuel prices will not crash,” the expert said.
NAN reports that pump price of PMS has increased to N660 per litre at various fuel stations, while NNPC Ltd.’s retail outlets sell at N617 since the removal of subsidy in May 2023 due to high crude cost and high foreign exchange rate.
The after effect of the removal and high cost of fuel brought untold hardship and suffering on Nigerians due to inflation, increase in goods and services, among others. (NAN)(www.nannews.ng)
=========
Edited by Emmanuel Afonne
X
Welcome to NAN
Need help? Choose an option below and let me be your assistant.
