By Emmanuella Anokam

The Federal Government says it has mapped out plans to ensure an increase of about 810,000 barrels per day (bpd) of crude oil from the country’s deepwater oil fields through a new cluster and nodal development initiative.

Mr Gbenga Komolafe, Commission Chief Executive (CCE), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), made this known in Abuja at its stakeholders’ workshop on deep/shallow water cluster/nodal development.

The News Agency of Nigeria (NAN) reports that the initiative, which is being championed by the NUPRC, is part of a broader effort to revive Nigeria’s offshore oil production, which has suffered a decline in recent years.

The workshop had as its theme, “Harnessing the potential of deep/shallow water, oil and gas accumulations through clusters/nodal development in Nigeria”.

Komolafe, represented by Mr Babajide Fashina, Executive Commissioner, Economic Regulation and Strategic Planning, NUPRC, said if fully implemented, the additional output could raise Nigeria’s total monthly crude production by 2.51mbpd with condensates.

This, he said, would significantly strengthen the country’s revenue generation capacity and improve compliance with OPEC+ production quotas.

He said the plan was conceived in response to the industry’s dwindling offshore output and the need to harness untapped reserves for sustainable growth.

“At the peak of our deep water oil production in 2016, Nigeria was producing about 800,000bpd. Sadly, that figure has now dropped to below 500,000 bpd,” he said.

The CCE explained that its data showed that there are over 5.13 billion barrels of oil and 13.53 trillion cubic feet (tcf) of gas still sitting untapped in the deep water acreages.

He said of this, 3.59 billion barrels fell under 2P reserves, meaning that they were proven and probable but yet undeveloped.

“A preliminary regulatory deep-dive through the Field Development Plans (FDPs) approvals indicates that current developments-in-view could unlock around 1.55 billion barrels of oil and condensate and another 1.49 tcf of associated gas.

“Once these approved FDPs are executed, we could see peak oil production rise by as much as 810,000 barrels of oil per day.

“A new Shallow and Deep Water Cluster Development Committee was inaugurated within the NUPRC to work closely with International Oil Companies (IOCs) and indigenous producers to identify and mature these opportunities.

“Through this collaborative approach, we want to maximise returns from existing assets, ramp up volumes, and reduce unit technical costs,” he said.

Komolafe expressed dissatisfaction that in spite of the huge potential, the deep water fields were underutilised due to challenges such as funding gaps, infrastructure limitations, regulatory bottlenecks and delayed project sanctions.

He said the eight Floating Production Storage and Offloading (FPSOs) units, were grossly underutilised, adding that with collaboration, more would be achieved.

The CCE added that deep offshore reserves currently account for 18 per cent of Nigeria’s total oil and condensate reserves, with major discoveries such as Bonga, Agbami, Egina, and Erha fields leading the way.

He said that currently the country had cumulatively produced over 4.4 billion barrels from deep water operations with contributory efforts from Shell, ExxonMobil, TotalEnergies, Agip and Chevron.

Komolafe, however, urged operators to embrace its collaborative model and commit to delivering results that would drive energy security, economic stability, and prosperity for all stakeholders.

The Executive Commissioner for Development and Production at NUPRC, Enorense Amadasu, said unlocking the production would rely on executing already-approved FDPs and adopting new cost-saving frameworks.

Amadasu, in a presentation, said execution of the approved development plans in deep offshore fields was expected to bring in an additional 810,000 bpd.

“This is not just theoretical. We already have projects like Bonga North that have taken Final Investment Decisions, and several more like the Owowo, Zaba Zaba, Eta, NAE, and others, are in view,” he said.

He said that multiple challenges including high technology costs, uneconomic standalone developments, and delays in Final Investment Decisions have slowed progress.

“We have identified over 20 key deep water assets such as Owowo, Nsiko, Bolia, Aparo, Bonga South West, Doro, Sheki, Akpo West, and others. While some may lack scale individually, they can become viable if developed together,” he said.

On government incentives, Amadasu cited ongoing interventions, including zero hydrocarbon tax on deep water fields under the Petroleum Industry Act, as well as Presidential Directives 40, 41 and 42.

These directives, he said, would address the issue of tax incentives for non-associated gas, accelerate local content compliance and cost reductions in contracting cycles. (NAN)(www.nannews.ng)

Edited by Emmanuel Afonne

By Lucy Ogalue

The Federal Government has unveiled new National Occupational Standards (NOS) for Compressed Natural Gas (CNG) and Electric Vehicles (EVs) as part of efforts to reposition Nigeria’s automotive sector.

The initiative also aims to create jobs and promote a greener economy.

Minister of State for Industry, Trade and Investment, Sen. John Enoh, said this during the public presentation of the NOS for the conversion, calibration, and maintenance of auto gas-powered vehicles in Abuja.

The event also featured the unveiling of CNG retrofitting guidelines by the National Automotive Design and Development Council (NADDC).

Enoh said the development signaled the government’s commitment to clean energy transition, skill development, and industrial competitiveness.

“This is a demonstration of leadership in action. Under President Bola Tinubu, we’re not just talking policy, we’re implementing real reforms.

“The automotive sector has the potential to drive job creation, industrialisation, and GDP growth,” he said.

He noted that the new NOS and safety guidelines would strengthen the auto gas market, attract investors, and equip Nigerian youths with practical technical skills.

The minister commended the Presidential CNG Initiative (Pi-CNG) and NADDC for advancing the alternative energy agenda.

Also speaking, NADDC Director-General, Mr Joseph Osanipin, said the standards were developed in collaboration with the National Board for Technical Education (NBTE) under the National Skills Qualification Framework (NSQF).

He said the NOS covered conversion, calibration, and maintenance of gas-powered and electric vehicles, including hybrid models.

“The council has also developed a CNG retrofitting guide to ensure safety and uniformity across the country.”

Osanipin stressed that the standards would unify training nationwide and support curriculum development in universities, polytechnics, and technical colleges.

“This initiative will boost job creation and enhance global marketability for Nigerian technicians through formal certification, with competency levels up to Level Five.

“Technicians will now be trained and certified, giving them recognition beyond Nigeria,” he said.

He added that the programme would reduce dependence on petrol and diesel, curb pollution, and tap into Nigeria’s abundant natural gas reserves.

“We cannot afford to repeat the mistakes made with crude oil. The time to embrace gas as a cleaner and more economical fuel is now,” he stated.

Meanwhile, Mr Michael Oluwagbemi, CEO of the Presidential CNG Initiative, highlighted infrastructure development and manpower training as critical to widespread CNG adoption.

He called for increased private sector investment in refueling infrastructure, citing Dangote’s plan to establish 200 CNG stations, and encouraged firms like BUA, NNPC, and A.Y. Shafa to join the effort.

“Clear standards make skills development possible, and skilled manpower is the foundation of infrastructure growth,” he noted.

The News Agency of Nigeria (NAN) reports that the event attracted stakeholders from the automotive, oil and gas, vocational training, and environmental sectors. (NAN)(www.nannews.ng)

Edited by Abiemwense Moru

By Emmanuella Anokam

Alhaji Aliko Dangote, President of Dangote Group, says it is troubling that Africa exports crude oil but imports over 120 million tonnes of refined fuel annually.

He stated this in Abuja during the maiden West African Refined Fuel Conference, organised by NMDPRA in collaboration with S&P Global Commodity Insights.

Dangote noted that although Africa produces around seven million barrels of crude daily, it only consumes about 4.3 million barrels of refined petroleum products per day.

He lamented that only 40 per cent of this consumption is refined locally, in spite of the continent’s vast crude production capacity.

He said most of the refining occurs in Algeria, Egypt, and now Nigeria, with the launch of the Dangote Refinery.

In Sub-Saharan Africa, he added, there are fewer than three properly functioning refineries.

In contrast, he said, Europe and Asia refine nearly 95 per cent of their total fuel consumption domestically.

In spite of producing substantial crude oil, Africa still imports 120 million tonnes of refined fuel yearly, effectively exporting jobs and importing poverty.

“This represents a $90 billion market being captured by regions with surplus refining capacity,” he said.

Dangote clarified that he supports free trade and international collaboration rooted in fair competition and economic logic.

He argued that Africa should not export raw crude only to re-import refined products, which it can produce locally.

He described the experience of building the Dangote Refinery, the world’s largest single-train facility, as fraught with technical, commercial, and contextual challenges.

After solving technical problems, the next issue was commercial viability — starting with crude oil sourcing, which proved unexpectedly difficult.

Initially, it seemed logical that crude would be readily available in Nigeria, a country producing two million barrels per day.

However, they were forced to negotiate with international traders reselling Nigerian crude at high premiums.

“Today, we buy nine to 10 million barrels of crude monthly from the U.S. and other countries,” he revealed.

He thanked NNPC Ltd. for supplying some Nigerian crude since production began at the refinery.

Even after securing crude, transport posed serious difficulties, including frequent schedule changes and excessive port charges.

He disclosed that port charges alone made up about 40 per cent of total freight costs.

This meant port fees cost nearly two-thirds as much as hiring an entire vessel, including crew, fuel, and insurance.

Unlike Europe’s harmonised fuel standards, Africa remains fragmented, with each country maintaining different fuel specifications.

“The fuel produced for Nigeria cannot be sold in Cameroon, Ghana, or Togo — even though we all drive similar vehicles,” he noted.

According to him, this lack of harmonisation only benefits international traders who exploit market differences through arbitrage.

For local refiners, the fragmented standards hinder efficiency and restrict access to wider regional markets.

He called on African regulators to harmonise standards and create a uniform pricing framework across the region.

He urged African governments to protect domestic refiners, as done in the U.S., Canada, and the European Union. (NAN)(www.nannews.ng)

Edited by Kamal Tayo Oropo

By Sandra Umeh/Adepote Arowojobe

A former Deputy Editor-in-Chief of the News Agency of Nigeria (NAN), Mr Goddy Ikeh, on Monday, underscored the need for the media to join in shaping the nation’s economic growth for a greater Nigeria.

Ikeh made this known at a one-day training for journalists held at the Lagos Airport Hotel, Ikeja.

NAN reports that the training was sponsored by Chevron in collaboration with the Nigeria National Petroleum Corporation (NNPC).

The training was themed: ‘Shaping Nigeria’s Business and Economic Growth: Insights from the Media’.

His lecture was titled: ‘Unlocking the full Potentials of Nigeria’s Oil & Gas Sector for Sustainable Economic Growth’.

Ikeh stated that for several decades, the oil and gas sector has been the mainstay of Nigeria’s economy and also examined the progress made over the years, its challenges as well as how best to unlock its potentials.

According to him, Nigeria’s average daily crude oil production had in June this year, exceeded the Organisation of Petroleum Exporting Countries (OPEC) ‘s quota of 1.5 million barrels per day.

He said that in May, the nation’s crude output stood at 1.45mpd, while both crude and condensate were 1.65mbpd, adding that the output is still below the targeted 2.06mbpd projected in the 2025 budget.

“Speaking recently on oil production, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr Bayo Ojulari, said that Nigeria was ramping up production with a medium-term goal to hit 2.06 million barrels per day by 2027,” Ikeh said.

He said that in spite of the contributions of oil and gas agencies and local operators to the feat achieved so far, there were still challenges confronting the industry.

Ikeh identified some of these challenges as: “Infrastructure, absence of a well-integrated gas network, lack of a unified pricing structure for both petroleum products and gas across the Nigerian markets.

“Absence of adequate capacity building structures, deficit in essential Infrastructure, inadequate environmental remediation measures, gas flaring, lack of reservoir maintenance strategies, crude oil and petroleum products theft, among others.”

He underscored the role of the media in helping to shape the narrative, through reportage and information to the public.

Among others, he called for effective coverage of the oil and gas sector, ensuring that projects in the sector were executed timely, ensuring that industry players are accountable, as well as monitoring execution of projects in the industry.

Meanwhile, in his recommendation, he underscored the need for greater collaboration among stakeholders, government, regulators, investors and communities to build and sustain the current momentum in the industry.

“Integrating assets across the gas value chain and adopting capital-efficient models to deliver long-term value should be pursued.

“Nigeria needs to maintain government investment in the oil and gas sector, while striving to meet pressing social needs,” Ikeh said. (NAN)(www.nannews.ng)

Edited by Ifeyinwa Okonkwo/Bashir Rabe Mani