By Emmanuella Anokam

The Federal Government says re-streaming the Port Harcourt Refinery will increase supply of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, and automatically halt importation.

The Minister of State, Petroleum Resources (Gas), Ekperikpe Ekpo, said this on Thursday during an inspection of facilities at the Port Hacourt Refining Company Ltd. (PHRC).

The inspection coincided with the 15th Refineries’ Rehabilitation Steering Committee Meeting also held in Port Harcourt, Rivers.

The News Agency of Nigeria (NAN) reports that the PHRC rehabilitation project, which cost the Federal Government about 1.5 billion dollars, is an Engineering Procurement Construction Installation and Commission (EPCIC) project that is in phases.

The rehabilitation work had been ongoing since 2021, and the Nigerian National Petroleum Company Ltd. (NNPCL) had pledged to complete phase one of the project (mechanical completion and flare start-up) of old Port Harcourt Refinery at the end of 2023.

On Dec. 20 the NNPCL fulfilled its promise by achieving the mechanical completion and flare start-up of the refinery’s Area 5 Plant.

Speaking during the tour, Ekpo said the mechanical completion and flare start-off would be cheering news equally to LPG users because after Christmas there would be sufficient supply of LPG, a major bye product of the refinery.

“I know the joy that is in the hearts of Nigerians with the coming up on stream of the phase one of the refinery, and I believe others will be completed on schedule,” Ekpo said.

Also speaking, Malam Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Ltd.,  said 84.4 per cent of Area 5 Plant, a key component of the refinery, and 77.4 per cent of the entire rehabilitation project had been completed as at Dec. 15.

“In our quest to ensure that this refinery is re-streamed to continue to deliver value to Nigerians, we promised to reach a mechanical completion of phase one of the rehabilitation project by the end of December and get the other plants running in 2024.

“Today, we have kept those commitments,” Kyari said.

The GCEO commended the staff of NNPCL and the EPCIC contractors for their efforts, and thanked Nigerians for their patience and trust in the company to deliver on the huge project.

Kyari further said, “More importantly, the milestone was achieved under an excellent Health, Safety and Environment (HSE) record, which stood at over 9.5 million man hours with zero Loss Time Injury (LTI).”

On the facility tour were Minister of State Petroleum Resources (Oil) Sen. Heineken Lokpobiri; NNPCL Board Chairman, Chief Pius Akinyelure and Managing Director, PHRC, Ibrahim Onoja.

The Managing Director of Tecnimont Nig. Ltd., Fabio Del Cioppo and other important dignitaries were also on the tour.
The PHRC consists of two units of refineries, with a cumulative 210,000 bpd.

While the old plant has a refining capacity of 60,000 barrels per day (bpd), the new plant has 150,000 bpd. (NAN) (www.nannewsng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Federal Government on Thursday announced the mechanical completion and flare start off of the Port Hacourt Refining Company Limited (PHRC).

Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil) disclosed this on Thursday in Port Harcourt during a media tour on the refinery which rehabilitation commenced in 2021.

On the tour were the Minister of State Petroleum Resources (Gas) Ekperikpe Ekpo; Nigerian National Petroleum Company Limited (NNPC Ltd.) Board Chairman, Chief Pius Akinyelure; Group Chief Executive Officer, NNPC Ltd., Malam Mele Kyari and other dignitaries.

The Managing Director of the PHRC, Ibrahim Onoja, was also on the tour.

“Just to announce to Nigerians the fulfillment of our pledge to bring on stream phase one of the Port Hacourt Refinery by the end of 2023 and the subsequent streaming of phase two in 2024.

“We happily announce the mechanical completion and the flare start-off on Dec. 20, 2023.

“This heralds the commencement of the production of petroleum products after the Christmas break,” Lokpobiri said.

The minister thanked Nigerians for their patience and the trust on the NNPC Ltd. to deliver on its promise and the mandate of the refinery’s rehabilitation.

According to him, it is another landmark of the Renewed Hope Agenda of President Bola Tinubu’s administration.

Akinyelure, who expressed satisfaction over the new development, said it was a promise made to President Bola Tinubu that the refinery would begin operation in 2023.

The NNPC Ltd. board chairman who recalled that the refinery had undergone several rehabilitation, said that its commencement of operations would keep fuel cost stable.

The News Agency of Nigeria (NAN) reports that 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.

The refinery was shut down in March 2019 for the first phase of repair works after the government secured the services of Italy’s Maire Tecnimont to handle the scoping of the refinery complex, with oil major Eni appointed technical adviser.

In 2021, NNPC Ltd. said repairs had started after the Federal Executive Council approved $1.5bn for the project.

The refinery had over the years performed below optimal levels which resulted in importation of petroleum products for domestic use for many years to cover for the gap in the refinery’s output. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

Mr Mele Kyari, the Group Chief Executive Officer (GCEO), Nigerian National Petroleum Company (NNPC) Ltd., says the company will utilise Nigeria’s abundant gas resources to revolutionise the nation’s power and industrial sector.

Kyari said this in Abuja at a Shareholders Agreement (SHA) signing between the NNPC Ltd., UTM Offshore (an indigenous company) and Delta State Government, on the development of the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria.

He said in a statement that gas would be used to bring revolution in Nigeria in the next two to three years as they were already progressing on the initiatives to bring gas to the domestic market.

“Our backbone infrastructures are almost ready to ensure we achieve that. Once that happens, we will see the immediate impact on the power sector, gas-based industries and several collateral values this will create,” the GCEO said.

Describing the FLNG project as a task that must be done, Kyari said Nigeria’s abundant gas resources have been under-utilised, adding that the new focus would monetise such gas resources for national and global benefit.

According to him, the FLNG Project clearly fits into the Federal Government’s gas aspirations under the Decade of Gas Initiative and in line with Mr President’s agenda to create a gas hub to maximise value for prosperity.

Reiterating NNPC Ltd.’s commitment towards the project, Kyari said the FLNG was the first of its kind that the company was taking keen interest in.

Kyari also said NNPC Ltd. had equity in the project.

“There are several Floating LNGs that we are promoting, including fixed LNG projects. We are happy to collaborate with the Delta State Government. We will take practical steps to deliver this project on schedule and at the best possible cost,” the GCEO added.

Earlier in his remarks, the Group Managing Director of UTM Offshore Limited, Mr Julius Rone, described the SHA execution as another significant milestone in actualising Nigeria’s first indigenous FLNG.

He commended President Bola Tinubu for his dedication towards developing the Nation’s gas resources, as exemplified in the recently held COP28 Conference in Dubai, UAE.

He also lauded the GCEO of NNPC Ltd for his leadership and commitment in ensuring that Nigeria’s gas resources were developed within the provisions of the Petroleum Industry act (PIA) 2021.

Also speaking, the Governor of Delta State, Sheriff Oborevwori , said that the Delta State Government, which had 40 per cent of Nigeria’s proven gas reserves, decided to take eight per cent equity on the project.

This, he said, was because of the company’s conviction of the strategic importance of the project to the national economy.

The governor said that apart from producing over 300,000 metric tonnes of LPG (cooking gas) which would be dedicated to the domestic market, the FLNG project would also help to mitigate environmental hazards in the Niger Delta.

Oborevwori said the FLNG would reduce gas flaring, create ample employment opportunities and ensure the switch from kerosene and firewood to cleaner energy, thus improving the health and general wellbeing of the people.

In attendance to witness the execution of the SHA was the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, who said FLNG would ensure monetisation of Nigeria’s gas resources to drive the economy and attain energy security.

Mr Olalekan Ogunleye, the Executive Vice President, Gas, Power and New Energy, spoke briefly on the project and lauded the Federal Government for its belief in the ability of gas to drive and accelerate economic growth.

The FLNG facility is expected to produce 1.81 to 2.72 metric tonnes of gas per annum (mtpa).

Its project equity has NNPC Ltd., UTM Offshore and the Delta State Government holding 20 per cent, 72 per cent and eight per cent stakes respectively. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

The Ministry of Petroleum Resources has presented its budget of N9.641bn to the Joint Committees of Senate and House of Representatives on Petroleum Resources (Upstream and Downstream, as well as Gas Resources).

The presentation was part of 2023 budget implementation and 2024 budget defence by Ministries, Departments and Agencies (MDAs) to relevant National Assembly Committees.

A statement on Tuesday by Mrs Oluwakemi Ogunmakinwa, Deputy Director (Press & Public Relations), said the ministry was represented by the Minister of State, Petroleum Resources (Oil), Sen. Heineken Lokpobiri and the Minister of State, Petroleum Resources, (Gas), Mr Ekperikpe Ekpo.

In his opening remarks at the sitting, the Chairman Senate Committee on Gas, Sen. Jarigbe Agom, said it was their duty as a joint committee to ensure effective allocation of resources for the advancement of the country’s petroleum sector.

Agom added that the oversight function of the committee was predicated on fostering transparency, efficiency and sustainable development within the Ministry, the Nigerian National Petroleum Company Ltd. (NNPCL) and its subsidiaries.

He urged all stakeholders to engage in open dialogue and provide insightful inputs that would contribute to the formulation of a budget that aligned with national priorities.

The legislators raised a number of reservations about some inadequacies and shortcomings of the budget.

Specifically, they frowned at the paltry budget as it did not capture the refineries and its failure to include other initiatives aimed at alleviating the sufferings of Nigerians occasioned by subsidy removal on Premium Motor Spirit (PMS).

In his response, Lokpobiri explained that Ministry’s 2024 budget was a substantial improvement on the 2023 budget.

Lokpobiri also emphasised that the Ministry of Petroleum Resources was more of a policy-driven Ministry and did not execute projects that addressed given concerns.

He cited the Host Communities Fund provided by the Petroleum Industry Act (PIA) targeted at addressing the concerns of oil producing communities.

The minister explained that it had many agencies that were mandated to carry out different responsibilities, while the ministry provided policies that would guide the operations of the companies doing business in the oil and gas industry.

He, therefore, assured the legislators that the concerns they expressed would be taken to the appropriate quarters so that those concerns would be addressed.

In his remarks, Ekpo stated that the ministry as a policy making organ, was to provide an enabling environment for investment in the oil and gas sector for the good of the country.

He called for synergy between the executive and legislative arms of government with a view to arriving at a level that would give renewed hope to Nigerians. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed a Memorandum of Understanding (MoU) with TotalEnergies for adoption and deployment of Airborne Ultralight Spectrometer for Environmental Application (AUSEA) in its upstream operations.

The agreement is a direct benefit from the Company’s participation at the recently concluded United Nations Climate Change Conference (COP28) in Dubai, UAE.

A statement on Tuesday by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., stated that with the agreement, the company would be able to deploy the TotalEnergies AUSEA, known as methane detection technology on its upstream operations sites.

This, will ascertain the level of methane emissions from them, with a view to working out emission curtailment measures to help in combating global warming and climate change.

The MoU was signed by Oritsemeyiwa Eyesan, NNPC Ltd’s Executive Vice President, Upstream, and Managing Director and Country Chair, TotalEnergies EP Nigeria, Matthieu Bouyer, on behalf of their respective companies.

Putting the deal in proper perspective, the NNPC Ltd’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, said the pilot phase of the TotalEnergies AUSEA deployment would be on NNPC Ltd’s owned operations.

Eyasan added that the deal would enable the company to deploy methane abatement measures.

Other benefits of the TotalEnergies AUSEA technology include identification of unaccounted emission sources, establishment of a basis for querying and improving current emission reporting processes.

It will aid in provision of data to review operational system and implement corrective actions, and estimation of flare combustion efficiency.

The agreement was signed under the watch of the Group Chief Executive Officer (GCEO) NNPC Ltd, Mele Kyari, and Chairman and Chief Executive Officer of TotalEnergies, Patrick Pouyanné.

Speaking at the event, Kyari described TotalEnergies as a great and reliable partner over the years with whom the company was looking forward to exploring greater opportunities in the nation’s energy sector.

On his part, Pouyanné said his company was offering the technology to NNPC Ltd, in keeping with its commitment to promote responsible production of hydrocarbons.

He applauded NNPC Ltd for its successful transition into a limited liability company, stressing that he could feel the energy that the reforms have brought about, not only in the company but also in the sector. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Joshua Olomu

A business mogul and philanthropist, Abdulsalam Abdulkarim-Zaura, popularly known as AA Zaura, says  Nigeria’s solid mineral sector is a robust   alternative to   crude oil for its economic growth and development.

He stated this in an interview with the News Agency of Nigeria (NAN) on Tuesday, in Abuja.

According to him, as Nigeria grapples with economic challenges and  seeks to diversify its revenue mainstay , its rich  solid minerals sector is a veritable alternative, if well harnessed.

The Kano State-born politician said that if  the Federal Government  was serious in saving Nigeria from its present economic woes, the solid mineral was a  goldmine should be explored.

”The only problem we have in Nigeria is that, we fail or we refuse to understand that we have a lot of resources and not only oil.

“Since oil has been our main source of income, we tend not to focus and the government tends not to give attention to these solid mineral resources.

“We are solely dependent on oil, but there are lots of resources that can equally boost our economy, and the solid minerals sector is the new oil that can  generate huge revenue for the country.

“For instance, if you take gold, how much is a gram of gold? You can ever compare a gram of gold to a barrel of oil.

“The gold is definitely higher, which means if we can shift our focus to mineral resources just as we do with oil, the country will be better for it.

“Adequate attention needs to  be focused on   mineral deposits  in Zamfara, Niger  and other states, where we have a large deposit of gold, that  means  more income will be generated, “ he said.

Zaura, however, urged that insecurity, especially most places where these solid minerals are located,  has to be tackled for the  if the nation wants to benefit for the sector.

He added that the Federal Government must also demonstrate strong political will to address the menace of illegal mining, which has hitherto  stopped the sector from contributing meaningfully to the nation’s revenue.

According to him, a secured and enabling environment will attract investors attract investors into the sector, especially to communities were such resources abound.

“These are areas that are full of potentials, let me tell you, in those days, you can go in there and mine, even if you are alone, nobody will attack you.

“If government is to derive revenue from those resources, it has to take security seriously in order to protect the people and their investments, and to attract more investors to come into mining, ” he said.

He lauded the Tinubu-Led administration for showing commitment towards  revamping the  sector in line with its campaign promises.

“I can see that the current administration of President Bola Tinubu is giving more attention to the area of mineral resources and needed support is now being given to the Ministry of Solid Minerals.

“I think something positive to the sector, and  If government will focus more on it, I can tell you that the opportunities and revenue it will bring will  be amazing,” he said.(NAN) (nannews.ng)

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Edited by Isaac Aregbesola

By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) has lauded Chevron Nigeria Limited’s voluntary willingness to sign on as a supporting company of the Extractive Industries Transparency Initiative (EITI).

Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI, while speaking with newsmen on Monday in Abuja said the Seplat Energy also offered to join the EITI as a result of NEITI’s activities.

The News Agency of Nigeria (NAN) reports that EITI is the global standard designed to promote good governance by enhancing transparency, public debate, open and accountable management of oil, gas and mineral resources.

The NEITI Act was enacted in 2007 to give the implementation of the Initiative in the country a legal backing. With this, Nigeria became the first country in global EITI to support the implementation.

Supporting the EITI enables companies to gain respect and investors’ confidence, demonstrate commitment to transparency and accountability, improve access to finance, strengthen social licence and reduce investment risk.

“Many oil and gas companies have given us enormous cooperation; in fact Chevron has informed us of its voluntary willingness to sign on as a supporting company of the EITI.

“Seplat has also offered to join the EITI as a result of the work we are doing. We have given them guidelines of what is required to be a member of the EITI both at the national and international level.

“If you are a member internationally you have to domesticate it by working closer with NEITI,” he said.

The executive secretary said it achieved a lot in 2023, adding that it went through hard process of EITI validation and came out with 72 per cent which earned the organisation a lot of attention due to its activities.

Orji said it was focused on improving on observations made during the validation which included deepening its engagement with the civil societies, oil and gas companies, human capacity development, strengthening internal processes and capabilities to EITI implementation.

“We have already started by injecting younger ones into our workforce but they require a lot of training while those in the management team and cadre staff need a lot of training.

“Then we strengthen out ethical conduct to practice what we preach,” he said.

He thanked the media for the quality engagement and support on its 2021 oil, gas and solid mineral reports as well as the fiscal allocation and statutory disbursement report.

“We equally published a lot of policy briefs and guidance notes to government, we find a lot of interest that we are able to do all these with your supports,” he said.

He expressed gratitude to the past and present administration for the support they gave to NEITI which necessitated its progress.

“As a transparency institution we are open to constructive, balance and fair criticism, advice and engagement.

“We are not enemies to government, Civil Society Organisations (CSOs) and companies, rather they are our partners. Government funds 99 per cent of our operations, government is our back backbone,” he said.

He reaffirmed the commitment of the Federal Government towards implementation of EITI. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has won the 2023 The Whistler Newspaper’s award for Transparency and Innovation.

The Group Chief Executive Officer (GCEO), NNPC Ltd., Mr Mele Kyari, received the award on behalf of the company during the Newspaper’s 2023 Awards Night on Saturday in Abuja.

A statement on Sunday by Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., said the award was presented to Kyari by the Governor of Abia State, Dr Alex Otti.

In his acceptance speech, Kyari expressed the company’s commitment to delivering value to its shareholders.

The GCEO said the award would spur the company to re-dedicate itself toward more transparency and innovation in its operations. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has assured that projections on crude oil production and price benchmark for the 2024 Budget were realistic and realisable.

The Group Chief Executive Officer (GCEO) of the Company, Mr Mele Kyari, gave the assurance during an interactive session with the Senate Committee on Finance at the National Assembly, Abuja, on Wednesday.

A statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., noted that Kyari made the remarks while speaking on the dynamics of the market in relation to the projected budget benchmark price of 77.96 dollars per barrel.

“With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see 70 dollars per barrel oil in the market.

“The oscillation we are seeing, sometimes you do see prices coming down to 75 dollars to the barrel and sometimes it goes above it, overall, benchmarks are averages.

“We think that the proposal by Mr President around the 77.96 dollars is still realisable in 2024,” he said.

On the crude oil production projection, he said Nigeria had 1.785 million barrels per day (bpd) as the cumulative of all oil produced in the country.

The GCEO said the figure was inclusive of all production activities, including crude oil and condensate.

“I need to make this clarification because of the reports in the media that our Organisation of the Petroleum Exporting Countries (OPEC) quota is 1.5 million barrels per day.

“The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78mbpd is realistic and realisable,” he said.

He expressed optimism that though there were challenges such as security and force majeure, the measures being deployed by the Federal Government would be able to take care of them to guarantee the projected level of production.

The GCEO also assured that NNPC Ltd would maintain the level of dividends remittance to the Federation Account as stated in the Medium-Term Expenditure Framework.

He added that the projected dividends from the Nigeria Liquefied Natural Gas Ltd. was also realisable and would flow directly into the Federation Account as stipulated by the law.

On the Company’s Road Tax Credit Scheme, Kyari explained that all the roads being undertaken under the scheme would be duly completed.

He explained that the scheme was anchored by the Ministry of Works while the Federal Inland Revenue Service and NNPC Ltd were only playing supervisory roles to ensure that value was delivered for every kobo paid.

Earlier, Chairman, Senate Committee on Finance, Sen. Mohammed Musa, said the interactive session was to deepen conversations on the projections in the 2024 Appropriation Bill to help the lawmakers determine adjustment.

He expressed satisfaction with the explanations offered by the NNPC Ltd.’s helmsman.

Recall that the Federal Government, in the Appropriation Bill, gave an average crude oil production benchmark of 1.78 mb/d, and a crude oil price benchmark of 77.96 dollars. (NAN)(www.nanews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri, says Nigeria will meet and surpass the 2024 crude oil production budget benchmark of 1.7 million barrels per day (bpd).

Lokpobiri said this at a stakeholder’s interactive session on Creating Value and Enabling Investments in Nigeria’s Oil and Gas Sector organised by Chevron Nigeria Plc.

Lokpobiri, in a statement on Tuesday by his Special Adviser, Media and Communication, Nneamaka Okafor said the country had the capacity to increase crude oil production to 2 million bpd.

Expressing his commitment to fostering collaboration with stakeholders to enhance the country’s oil and gas sector amidst his ambitious target for 2024, the Minister said the Federal Government would sustain stakeholders’ engagement.

“The success of the upstream sector will determine the success of the midstream and the downstream.

“And as a government, we are willing to sustain that engagement with the stakeholders so that in 2024 and beyond, we will ensure that we produce not just 1.7 million bpd that we need for our budget but ensure that we produce what is needed to meet the local demand,” he said.

The Minister outlined the trajectory of sector growth since the current administration took office, starting at about 1 million barrels per day and steadily increasing to 1.4 million barrels per day.

He expressed his ambition to continue this upward trajectory, highlighting the government’s commitment to creating an enabling environment for stakeholders to thrive.

“As a new government that is business-friendly, with a clear mandate to ramp up production, we are willing to ensure that our fiscal regime is competitive globally.

“My appeal is that this old marriage, let us manage it, sustain it and improve on it. Whatever your concerns may be, let us put them on the table to disagree to agree,” Lokpobiri said.

He reassured stakeholders of the government’s diligent effort to address challenges facing the sector and provide the best playing field for both International Oil Companies (IOCs) and independents to make the necessary investments.

“As a country, we have the capacity to produce more than 2 million barrels per day. We have identified the issues bedeviling the sector and are already working on them.

“I would replicate this programme with all the IOCs and independents so that we can make the sector work for all of us and Nigerians at large, and I know that 2024 will be a much better year,” he added.

The minister also highlighted ongoing efforts to rehabilitate refineries and ensure the functionality of modular refineries to enhance the country’s refining capacity, meet local and regional demands, and thrive internationally.

The Minister, however, urged stakeholders to join hands in building a robust oil and gas sector that would contribute significantly to the economic growth and development of Nigeria.

Recall that the Federal Government, in the Appropriation Bill, gave an average crude oil production benchmark of 1.78 mb/d, and a crude oil price benchmark of 77.96 dollars. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko