By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and Central Bank of Nigeria (CBN) have reviewed the NNPC Ltd.’s decision to domicile a significant portion of its revenues and other banking services with the CBN.

The review was held during a meeting between the Group Chief Executive Officer of NNPC Ltd, Malam Mele Kyari and the Governor of CBN, Mr Olayemi Cardoso, at the NNPC Ltd. towers on Thursday in Abuja.

A statement jointly signed by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. and Hakama Ali, Acting Director, Corporate Communications Department, CBN, stated that the value created by the decision was for all parties.

According to the statement by Soneye and Ali, the development will provide the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.

“The CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.

“Both parties are also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited and to continue to have banking transactions with commercial banks as required,” the statement quoted Soneye and Ali as saying.

Recall that the President had directed that the forex generated from crude oil sales should be deposited directly at the CBN. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

The Nigerian National Petroleum Company (NNPC) Ltd. has assured the public that there is no imminent increase in the cost of Premium Motor Spirit (PMS), commonly known as petrol.

The Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, in a statement on Thursday, urged Nigerians to disregard unfounded rumours.

Soneye assured the general public that there were no plans for an upward review of the price of PMS.

“Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country,” he said. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Federal Government has set up an inter-ministerial committee to suggest ways of achieving a sustainable gas supply to gas generating plants in the country.

The inter-ministerial committee was constituted in Abuja by the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo and the Minister of Power, Chief Adebayo Adelabu, at the end of a meeting between the two ministries.

Ekpo, in a statement on Thursday by Mr Chris Ugwuegbulam, Assistant Director, Press and Public Relations of the ministry, said the committee would address the challenges of low gas supply to Thermal Power Plant Stations nationwide.

“The committee will suggest means of achieving a steady gas supply to meet domestic and industrial needs of Nigerians in line with the Renewed Hope Agenda of President Bola Tinubu’s administration,” he said.

He listed the challenges causing low supply of gas to the Thermal Power Plants to include Decade of Gas legacy debts, vandalisation of gas resources infrastructure in the Niger Delta Region and domestic pricing of gas in dollars.

He expressed willingness to work harmoniously with any individual, organisation and agency to solve these challenges.

Adelabu stated the need for the two ministries to work collaboratively to solve the problem of low gas supply to the Thermal Power Plants.

This, Adelabu said, would achieve an uninterrupted power supply in the country, adding that nothing could be done in Nigeria without stable power.

Members of the committee were drawn from the Ministries of Petroleum Resources and Power, Regulatory Agencies, Operators and Critical Stakeholders in the Gas and Power Sectors.

The meeting was witnessed by some directors in the Ministries of Petroleum Resources and Power. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced the successful commencement of oil production from the Akpo West Field, located approximately 175 kilometres from Port Harcourt.

The NNPC Ltd. said the production was in line with President Bola Tinubu’s directive that it should optimise production from the nation’s oil and gas assets.

The NNPC Ltd.’s Chief Corporate Communications Officer, Olufemi Soneye, in a statement on Wednesday said the milestone was the result of meticulous planning, strategic collaboration and unwavering dedication from stakeholders involved in the project.

He said it would add 14,000 barrels per day condensate to the nation’s production.

“This will be followed up by the production of about four million cubic meters of gas per day by 2028.

“The development of Akpo West which is on Petroleum Mining Lease (PML) 2, (formerly OML 130), leverages the existing Akpo Floating Production Storage and Offloading (FPSO) facility via a sub-sea tie-back to keep costs low and minimise greenhouse gas emissions,

The milestone was enabled by the strategic leadership of the Group Chief Executive Officer, Mr Mele Kyari and its Upstream Directorate whose support played role in propelling the operators to actualise short and mid-term hydrocarbon production goal of the current administration,” the statement quoted Soneye as saying.

Akpo West is located 135 kilometres offshore and it is one of the discoveries on PML 2 with proximity to the Akpo main which started up in 2009 and produced 124,000 barrels of oil equivalent per day in 2023.

PML 2 is operated by TotalEnergies with a 24 per cent interest, in partnership with CNOOC (45 per cent), Sapetro (15 per cent), Prime 130 (16 per cent) and the NNPC Ltd., as the concessionaire of the Production Sharing Contract (PSC). (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

The Federal Government says it will implement measures to significantly reduce the price of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas.

It will also ensure the domestication and penetration of the LPG towards ensuring accessibility and availability for consumers across the country.

Mr Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), made this known at a Stakeholders’ Consultative Meeting on Tuesday in Abuja.

Ekpo said that prioritising the domestication and penetration of the LPG was one of the three priority areas of President Bola Tinubu-led administration.

He identified another area as intensifying efforts to increase upstream gas production to bridge supply and improve strategic economic sectors like Gas to Power, Gas-Based Industries (GBIs) and Gas for Export.

He said it would focus on the completion of major gas midstream infrastructure and projects, including the AKK Gas Pipeline Project, the OB3 Gas Pipeline Project and the ANOH Project.

According to the minister, this will enable flagship projects like the Brass Methanol Project to enhance the efficiency and capacity of the gas sector.

“It is imperative that we work together to unlock more resources to provide gas for power, GBIs, LNG export, and domestic use.

“This will foster economic growth, ensure energy security and eradicate poverty, a cardinal objective of President Bola Tinubu’s Renewed Hope Agenda.

“Nigeria is positioned as one of the leading gas-rich countries in the world. We have, however, not unlocked the full potential of this valuable resource.

“This underperformance can be attributed to gas flaring, inadequate infrastructure, pricing concerns, policy and regulatory gaps, and limited funding.

“It also include environmental concerns, the growing urgency for a smooth energy transition as well as a lack of comprehensive gas development blueprint,” he said.

The minister said that the government was committed to developing an adaptable roadmap that reflects collective intelligence.

He also said that the government would learn collaboratively and act decisively to create an environment that fosters growth, innovation, and sustainable development.

Amb. Nicholas Ella, Permanent Secretary of the ministry, stated that the challenges and opportunities within the gas sector are vast, ranging from technological advancements to environmental considerations and economic implications.

“It is through open and transparent discussions like this that we can uncover synergies, address concerns, and collectively arrive at solutions that not only meet the needs of the present but also ensure a sustainable and prosperous future.”

Alhaji Abubakar Shettima, National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed readiness to collaborate with the government towards the actualisation of the Compressed Natural Gas (CNG) and LPG use.

“IPMAN has the highest number of retail outlets nationwide for LPG and that of CNG will increase through our full partnership in the gas programmes of the government.

“Though the cost of LPG is a bit higher but when you compare with other sources of energy, LPG is still cheaper than kerosene. There is need to reduce the cost of petroleum products through the use of CNG,” he said.

Mr Osagie Okunbo, Chairman, Oil Producers Trade Section (OPTS), said it was looking forward to translate the gas framework on ground into reality in view of the abundant gas resources.

He added that it was being owed 1.3 billion dollars for gas that has been produced and sold in the past.

Okunbo said that this was a key issue in the gas discussion the meeting was having, urging that producers be encouraged through appropriate mechanism.

“The government should ensure that the price set for gas is such that will enable gas production.

“Gas price is due for review in April; we will be making our inputs known to the authority to make sure the price is cost reflective,” he said.

The News Agency of Nigeria (NAN) reports that the stakeholders’ engagement aimed at harnessing collective wisdom, experiences, and insights of key players in the private sector.

It is expected to produce constructive recommendations to resolve issues and chart the way forward for the industry. (NAN)(www.nannews.ng)

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Edited by Ismail Abdulaziz

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that Oil and Gas assets in Nigeria can only be transferred in accordance with the requirements of the Petroleum Industry Act (PIA 2021).

NUPRC said that assets could be transferred in accordance with PIA (where applicable), the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets, 2021 (together with the “Applicable Laws”).

Mr Gbenga Komolafe, the Commission’s Chief Executive (CCE), made this known in a statement on Saturday while reacting to the ongoing social media discussions that certain International Oil Companies have completed sales of some of their assets to some indigenous companies.

Komolafe said that the transfer could only be consummated upon the grant of Ministerial Consent, following a recommendation from the commission, and satisfaction of the conditions for the grant of the consent by the Minister.

“The attention of the NUPRC has been drawn to the ongoing discussions in the social media suggesting that certain International Oil Companies (“Divesting Companies”) have completed the sale of some of their oil
and gas assets to some Nigerian companies.

“NUPRC wishes to clarify that oil and gas assets in Nigeria can only be transferred in accordance with the requirements of the PIA, Petroleum Act (where applicable), the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets, 2021 (together the “Applicable Laws”).

“Under Nigerian law, while the entering into of a Sale and Purchase Agreement (SPA) between an assignor and an assignee constitutes an agreement to sell the relevant licence or lease in accordance with the terms of the SPA, the transfer can only be consummated upon the grant Of Ministerial Consent,” he said.

Furthermore, Komolafe said that the Commission’s recommendation to the Minister to grant Ministerial Consent for the transfer of a licence or lease will be based on a detailed and diligent review of the transaction by the commission.

This, he said, would ensure the acquirers had the requisite competence in technical and financial ramifications, fulfilment of decommissioning and abandonment obligations; sustainability of environmental, social and corporate governance.

Komolafe said the review would ensure compliance with host community obligations, industrial and labour relations framework, confirmation that there are no legal encumbrances hindering the consummation of the transaction.

He added that it would ensure that the acquirers are fit and proper persons and acceptable to the Federal government of Nigeria.

Ko,olafe said, “These are criteria for the continued operational efficiency and effectiveness in the operations
of the assets to ensure a sustainable increase in Nigeria’s oil and gas reserves and production.

“The Commission wishes the public to note that all the Divesting Companies and their potential assignees are familiar with the divestment process under the Applicable Laws and are currently complying with the relevant requirements.

“Accordingly, the general public is invited to note that the assets purported to have been sold by the Divesting Companies cannot be deemed sold yet, as the Commission is currently carrying out due diligence on the transaction.

“This will ensure that the divestment does not result in unwarranted liabilities for the Federal Government of Nigeria.” (NAN)(www.nannews.ng)

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Edited by Bashir Rabe Mani

By Emmanuella Anokam

President Bola Tinubu has ordered the Attorney-General of the Federation, Lateef Fagbemi to clear court cases on 1.3 billion dollars Deepwater OML 245 oil block in Niger Delta.

Others that received the directive are the Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, and the Economic and Financial Crimes Commission (EFCC).

The rest are the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian National Petroleum Company Limited (NNPC Ltd).

Lokpobiri said this in Abuja on Wednesday while speaking with newsmen.

The News Agency of Nigeria (NAN) reports that the Federal Government had in 1998 awarded the Oil Mining Lease (OML) 245 to Malabu Oil and Gas Ltd. for 20 million dollars.

The license covers a defined deepwater offshore area more than 1,000 metres below sea level and approximately 150 km off the Niger Delta.

However, with progress in the awards, this has turned out to be a pain. It has been a constant source of litigation for successive governments due to allegations surrounding fraud and corruption in awarding the licence.

The minister said that parties involved in the deal were currently negotiating to end the more than 28 years crisis and litigations surrounding the prolific oil block located in southern Niger Delta in the next one month.

“The previous administration initiated most of the cases that we are talking about today, and they took us to court, while we took Eni, Malabu, others to different courts in Europe, Canada, etc, but we didn’t win any of the cases.

“To even shock you, there is one that got us a penalty of over 70 million pounds,” he said.

He said that JP Morgan, a financial institution sued the government for trying to dent its image in the saga, adding that the penalty was now binding on Nigeria.

“So we have been fined over 70 million pounds by the court. Who will pay that? You and I will pay that, or our children will pay, because it is a judgement debt.

“And in all the ones that we pursue both in Switzerland and other locations, we have no evidence to get conviction.

“And so it makes sense for this government to come and say that for 28 years, this block has been idle.

“This block is a prolific block that will add so much value to our economy, so let’s see how we can resolve the problem,” he said.

He said they were in talks with Eni and Shell, to see how they can resolve all the problems.

He said that at the last meeting, it was agreed that parties should go on with negotiations and to reconvene within one month to see how we will be able to sort out all the issues so that the investment can continue.

According to him, the parties of the Federal Government interfacing with Eni and Shell, is the Attorney-General of the Federation, which leads the delegation.

It includes NUPRC, EFCC, NNPC Ltd., and the Minister of State for Petroleum Resources.

“We are transparent about this process. We have full government support in resolving this matter. Everything is being done transparently.

“This process has nothing to benefit the President as an individual, his interest is the welfare of Nigerians and to attract investments to the sector for Nigerians to benefit from God-given natural resources,” the minister said. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has held talks with a South Korean consortium led by Daewoo E & C on the development of gas projects in Nigeria.

The Group Chief Executive Officer of NNPC Ltd., Mr Mele Kyari, led the company’s team to the discussions held in Seoul, South Korea.

This is contained in a statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. on Tuesday in Abuja.

Soneye said the talks aimed at deepening its drive to tap into the nation’s vast gas resources to be a supplier of clean energy to the global market.

South Korea, a major destination for Liquefied Natural Gas (LPG) exports and the consortium, in collaboration with the Korean Export-Import bank, has expressed interest in advancing discussions on investing in greenfield and other gas development opportunities.

The talks would pave way for the execution of a Memorandum of Understanding to unlock strategic foreign direct investment in line with the President Bola Tinubu administration’s policy of making Nigeria a prime destination for global investors.

Kyari congratulated Temile Development Company, an indigenous player in the gas sector, on the commissioning of its 23,000 cubic meters ultra-modern LPG Carrier in Ulsan, South Korea.

The GCEO said that the vessel named, Alfred Temile 10, represented a significant stride towards deepening the utilisation of gas in-country and growing gas revenues.

“It is great that Temile Development Company is able to complete the construction of the 23kt LPG vessel.

“This will go a long way in improving access to LPG in the domestic market and provide cleaner fuel in our country.

“Nigeria’s objective is to ensure that everyone has access to clean energy and particularly walk away from bio-mass as a source of energy. We know this is good and that is why we will continue to support it,” Kyari said in the statement.

He further said that NNPC Ltd, alongside its partner West Africa Gas Ltd (WAGL), was building its own vessels to boost LPG supply in Nigeria with a view to saturating the market. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali