By Emmanuella Anokam

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)

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Edited by Vincent Obi

By Emmanuella Anokam

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)

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Edited by Emmanuel Afonne

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