By Deborah Coker

Vice Chairman, Senate Committee on Environment, Sen. Ned Nwoko (PDP-Delta), says the destruction of vessels apprehended for carrying illegal goods/stolen crude oil by the military is to conceal/destroy evidence.

Nwoko said this while speaking with the News Agency of Nigeria (NAN) in Abuja.

He stressed that destroying what should be used as evidence for crime committed did not make any sense, except those expected to prevent the crime were complicit and compromised.

According to him, crude oil pipeline vandalism and destruction of vessels carrying illegal goods/stolen crude oil, did not make any sense.

“What is the point? It does not make any sense.

“You know, if somebody is found in possession of stolen goods, do you say, oh, the way to deal with this is to destroy it? No. You take it from them, you document it, you preserve it, you charge the culprits.

“And then you produce that in evidence against them in court and then ultimately return that product to the owner.”

The lawmaker who is also a member of the Senate Committee, Upstream Petroleum, added that the only reason the military destroyed vessels apprehended for crude oil theft/lifting was to destroy evidence, because their was compromise.

“Well, I think the military are complicit. You know the reason they do this, because some of them might have compromised.

“They have been bought over because to load this kind of commodity vessels- the crude – it takes weeks sometimes because of the size of the vessels, it takes time.

“So it’s not as if you just come one hour, you load it and then you run. So it takes time to get to the point of loading, and most of them are actually loaded from the official platforms.

“So who are those involved? Who are those managing those platforms? The oil companies, The producing companies, NNPC officials, the police, may be all of them are involved.

“You know what is common with these personnel, I mean the joint task force; within a very short period of time, they are all rich. They are all buying houses or buying cars or buying everything you know. So yeah, they have compromised.

“That is the only reason why I think they cannot wait for the vessels to be investigated, but rather destroy the evidence because they know it can lead to them. They destroy them, they burn them,” Nwoko said. (NAN) (www.nannews.ng)

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Edited by Idris Abdulrahman

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) says it is collaborating with the Nigeria Extractive Industries Transparency Initiative (NEITI) and other stakeholders to reconcile alleged indebtedness by the company and Federation Accounts Allocation Committee (FAAC).

NNPC Ltd says they are working in the Reconciliation Committee set up by President Bola Tinubu to investigate, review and reconcile financial records on alleged indebtedness to the Federation by NNPC Ltd and FAAC.

Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., said this in a statement on Monday.

This is coming on the heels of calls by a Non-Governmental Organisation (NGOs) for a probe of several monies allegedly owed to the federation by the national oil company.

Soneye said the claims by the group as baseless, considering the fact that NEITI itself had dismissed the allegations in its 2021 report, following series of engagements with NNPC Ltd.

He said at the outset of President Bola Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one third of its value.

This development, he said, gave rise to an average of N400 billion monthly subsidy bill, which subsequently put a strain on its revenues and finances.

“That subsidy bill accumulated up to N3.736 trillion as of May 31, 2023.

“With respect to gas-to-power debts, the non-payment of NNPCL’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the federation.

“Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of May 31, 2023 amount to $712 million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the federation account.

“While the federation owed NNPCL the sum of N4.207 trillion as net indebtedness, the Company was only indebted to the federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC).

“This is in respect of government upstream divestments, royalties and Petroleum Profit taxes (PPT),” he said.

According to Soneye, over the years, the NNPC Ltd.’s relationship with NEITI has been very cordial, as seen in August 2020 when it became an EITI supporting company.

He added that it joined a group of over 65 extractives companies, State-Owned Enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations.

“Indeed, aside being a signatory to several EITI’s global ethics and standards, NNPC Ltd had on the sidelines of the United Nation’s General Assembly (UNGA) in Washington DC, in September 2023, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption.

“Thereby becoming the first state-owned oil company to join the global initiative.

“NNPC Ltd.’s book remains open to all our stakeholders as we remain committed to delivering value to Nigerians with integrity.

“And as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company,” he said. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

An Academic, Dr Yetunde Aladeitan has urged a comprehensive energy strategy that combines Compressed Natural Gas (CNG), improved refinery operations, and investment in renewable energy sources to address Nigeria’s energy challenges.

Aladeitan urged the Federal Government to consider the long-term sustainability and affordability of these energy solutions while addressing the concerns of the citizens.

Aladeitan, a Senior Lecturer, Department of Chemical Engineering, University of Abuja, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to her, the solutions are the most effective approach to addressing Nigeria’s energy challenges.

NAN reports that the Federal Government through the Presidential Compressed Natural Gas (CNG) Initiative Steering Committee recently said seven CNG conversion centres had been established in the country.

The establishment of the CNG conversion centres symbolised the commitment of President Bola Tinubu administration to spearhead energy revolution in the country.

According to Aladeitan, the introduction of CNG-powered engines as a means to offset the removal of fuel subsidies and mitigate high Premium Motor Spirit (PMS) prices in Nigeria is a strategic move.

She said it had the potential to reduce the economic burden on the government and consumers while promoting a more sustainable and cost-effective energy source.

“This transition could have various benefits, including reduced environmental impact and energy security.

“The establishment of CNG conversion and refilling centres for vehicles can be a viable option for improving energy sustainability in Nigeria.

“CNG is a cleaner and more environmentally friendly fuel compared to traditional gasoline or diesel. It can help reduce emissions and air pollution.

“However, whether its the best solution depends on a variety of factors, and it may not be the only solution to Nigeria’s energy crisis.

“Making refineries work is also important for energy sustainability, as Nigeria has significant oil reserves,’’ the university don said.

She said ensuring the efficient operation of refineries would contribute to domestic fuel production and energy security.

She however, emphasised the need to address the issues and challenges within the existing oil and gas sector to make the option effective.

She further said that the concerns about the cost of CNG compared to PMS were valid.

The lecturer advised that the pricing and affordability of alternative fuels like CNG must be carefully managed to ensure they are accessible and affordable to the general population. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed readiness to collaborate with international community towards advancing oil, gas and mining sectors.

The Executive Secretary of the Agency, Dr Orji Ogbonnaya Orji, stated this at a meeting in Abuja with prominent diplomatic missions in Nigeria.

This is contained in a statement by Mrs Obiageli Onuorah, Deputy Director/Head Communication and Stakeholders’ Management on Thursday in Abuja.

The diplomatic missions include the Ambassador of the Kingdom of Belgium to Nigeria, Mr Pieter Leenknegt; the High Commissioner of Canada, Mr James Christoff, and the Chargé d’Affaires of the Australian High Commission, Ms Leann Johnston.

Orji expressed NEITI’s willingness in offering technical assistance, pursuing governance reforms and deepening its involvement in Nigeria’s oil, gas, and mining sectors.

He reaffirmed its commitment towards tackling obstacles through working with relevant ministries to open and reposition the solid minerals sector to the public engagement and debate required to implement groundbreaking reforms.

Orji described NEITI’s international affiliations, civil society partnerships and government ownership as major strengths, adding that it would prioritise the solid minerals industry, which contributes less than one per cent to the nation’s GDP.

He expressed delight in the renewed interest and support from the Belgian, Canadian and Australian embassies.

The statement also quoted the Ambassadors as saying that they closely followed NEITI’s reports and activities in the extractive sector with keen interest, and noted Nigeria’s commitment to implementing the global Extractive Industries Transparency Initiative (EITI).

The Ambassador of the Kingdom of Belgium to Nigeria, Mr Pieter Leenknegt commended the quality and depth of NEITI’s recently released 2021 Oil, Gas, and Solid Minerals Industry Reports.

Leenknegt lauded the groundbreaking disclosures on outstanding remittances to shore up government revenue, the incisive findings and recommendations, and NEITI’s overall courage in public disclosures to enhance transparency and accountability in the sector.

The Belgian envoy pledged his country’s support to NEITI with a focus on capacity building to expand its operations into the Solid Minerals sector in a manner that attracts investors, especially from Belgium.

Similarly; the High Commissioner of Canada, Mr James Christoff, welcomed Nigeria’s implementation of the EITI and identified the Solid Minerals sector as an area of special interest to Canada.

He emphasised that collaborating with a reputable agency like NEITI would provide his mission with reliable information and data to assist potential Canadian investors in making informed business decisions.

Christoff said that as a supporting country to the global EITI, the Canadian High Commission in Nigeria was willing to partner directly with NEITI in the areas of information and data sharing, training, capacity building, and providing technical support.

He expressed his contentment with NEITI’s close collaboration with Civil Society Organisations and the Federal Ministry of Solid Minerals Development in combating illegal mining activities through policy reforms and coordination.

On his part, the Australian High Commission Chargé d’Affaires, Ms Leann Johnston, welcomed Nigeria’s new policy on economic diversification and expressed confidence in NEITI to support this initiative with reliable information and data in the Extractive Industries.

Established in 2004, NEITI is the key anti-corruption agency at the Presidency responsible for enthroning transparency, accountability and good governance of the country’s oil, gas and mining industries.

NEITI is a member of the global extractive industries transparency initiative (EITI) being implemented in 57 countries with International Headquarters in Oslo, Norway. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it is committed to effective implementation of the Petroleum Industry Act (PIA 2021) for the sector to contribute more to national economy.

The commission says it will ensure that relevant sections of the PIA that affect its operations are duly implemented, including the Domestic Crude Oil Supply to licensed refineries in Nigeria.

Mr Gbenga Komolafe, Commission Chief Executive (CCE), NUPRC stated this during a meeting with Exploration and Production Companies on Domestic Crude Supply Obligation (DCSO) at the NUPRC headquarters on Wednesday in Abuja.

The News Agency of Nigeria (NAN) reports that the meeting was conveyed to chat a way forward for alignment, on the implementation of domestic crude oil supply obligation, operator’s compliance status and operator’s response.

As more private refineries indicate readiness to start production soon in Nigeria, the NUPRC is taking necessary steps within the prescriptions of the PIA 2021 to ensure adequate and consistent supply of feedstock to operators.

In line with its mandate of ensuring crude oil supply to licensed refineries in Nigeria as enshrined in Section 109 (4) of the PIA, the commission said it recently cautioned that there would be consequences and sanctions for sabotaging the process.

He said effective implementation of the PIA would create an enabling environment for players in the industry to thrive and ensure the petroleum industry generated more income for the government.

“As the pioneer regulator of the upstream sector, we want effective implementation of the relevant sections of the PIA, and we cannot shy away from it.

“We are committed to the effective implementation of the PIA in the interest of our industry and our dear nation.

“As I said, as a regulatory body, we will regulate in line with the provisions of the Act and whatever decision we take will be in line with the law to ensure growth and development,” he said.

Komolafe, however, urged industry operators to uphold best practices and comply with provisions of the law as the federal government, through its relevant bodies was carrying out reforms. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The President of the Senate, Dr Godswill Akpabio, says with careful planning and execution, Nigeria can meet the Organisation of Petroleum Exporting Countries (OPEC) quota of 1.8 million barrels per day.

Akpabio spoke at the National Assembly Capacity Building Workshop, organised by the Independent Petroleum Producers Group (IPPG) and the Oil Producers Trade Section (OPTS) on Monday in Abuja.

Represented by Senate Committee Chairman, Petroleum Upstream, Etang Williams, he expressed satisfaction that the crude oil output hit 1.35 million barrels per day in September.

This, he said, was 14 per cent higher than the figure for August and the highest figure so far in 2023.

He said the determination and effort of the Federal Government yielded this dividend and had given hope that Nigeria could attain the OPEC quota with careful planning.

He was optimistic that the engagement between the National Assembly and key oil and gas industry players would help Nigeria to move on a path that would bring progress and development to the citizens.

“The oil has not been as much as a blessing as it ought to be. In fact, some think it has become a curse because the proceeds from the oil are not utilised to support agricultural and manufacturing sectors.

“These sectors have been neglected; we do not have the groundnut pyramids in the North anymore, we do not have the cocoa house in the West anymore, we do not have the palm plantation in the East anymore.

“We now have a resource cost or paradox of plenty.

“A resource cost is a situation in which nations fail to use their wealth to improve the living condition of their people and foster their economy,” he said.

The president of the Senate said this was one of the reasons the Bola Tinubu administration had to do away with the petroleum subsidy, which had destroyed the nation’s economy by installments.

“We need bold action to address big problem, it is a story we in the National Assembly want to change for the sake of our country and posterity,” he added.

Mr Osten Olorunsolasaid, Chairman, Energy Institute, Nigeria said oil theft and sabotage seemed to be visible reasons for Nigeria’s oil production decline, though there were others.

In his address tagged, “PIA-Optimising Value for the Country,” he said the decline led to sharp decline to export earnings.

According to him, after two years of PIA implementation there should be proper review, implementation framework and roadmap for strategic response.

In an overview of the Decade of Gas programme, Mr Nathaniel Oyatogun of OPTS Gas Subcommittee, said significant pipelines infrastructural development like the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline were required to fulfil the Decade of Gas.

He listed three interventions required to secure the programme, which included guaranteeing attractive reforms, enabling investment by supper infrastructure and creating investor’s confidence. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Independent Petroleum Producers Group (IPPG) has underscored the need to focus on amending critical aspects of the Petroleum Industry Act (PIA 2021) and ensuring security across the Niger Delta, to stem oil theft.

It also called for immediate ramping up of oil and gas production, focusing on priority areas to shore up revenue base and generate needed forex for macroeconomic stability in the short to medium term.

The IPPG Chairman, Mr Abdulrazaq Isa, made this known on Monday in Abuja at the National Assembly Capacity Building Workshop organised by the IPPG and the Oil Producers Trade Section (OPTS).

Isa, while listing three key priority focus areas to achieve stability to include amendment of critical aspects of PIA, ensuring security in the Niger Delta region and establishment of a value-creating midstream and downstream sector.

These, he said would catalyse and rapidly industrialise the Nigerian economy thus significantly boosting Gross Domestic Product (GDP) and job creation.

He stressed the need for the amendment of critical aspects of the PIA primarily aimed at establishing a strong regulatory and governance framework to guide its effective implementation.

According to him, the need to ensure intended benefits of the industry-wide reforms and enhance the competitiveness to attract the level of funding requires to fully optimise our vast hydrocarbon resources for future generations.

The IPPG Chairman called for enhancement of the security across the Niger Delta to safeguard and build a conducive operating environment to stem crude theft.

This, he said would sustainably address the unprecedented production decline witnessed in recent years.

He also commended the National Assembly on its role in enacting legislation and diligently carrying out its oversight function for the growth of the oil and gas industry.

“It has been two years since the enactment of the PIA and this landmark legislation continues to transform the Nigerian oil and gas industry and laid a solid foundation for its growth and development.

“However, investor uncertainty, a core element of the ongoing reforms, persists and this is further exacerbated by the global energy transition drive and the insecurity in the Niger Delta with the resultant effect being a significant drop in the nation’s production output.

“The capacity building workshop serves as an avenue for fostering collaboration between the National Assembly and the oil and gas industry.

“It would provide an overview of the current state of our industry, highlight key bottlenecks stifling industry growth and capital flow and the key priorities in the short to medium term to meet the industry’s growth aspirations,” he said.

Also speaking, Chairman, OPTS, Rick Kennedy said because of the key role the legislature has in defining laws governing the industry and the larger economy, they considered the National Assembly as an important part in moving the industry forward.

Kennedy, who is also the Chief Executive Officer (CEO) of Chevron, said the workshop would focus on key challenges currently facing the industry, leading to dwindling production and low investment in the sector and what was required to resolve the issues.

“We believe that this program would equip you on how to support and hopefully clear up some misperceptions in the industry. We would also be happy to hear your expectations on how best to move the industry forward.

“Our goal is to make Nigeria the destination of choice, once again for investors in the oil and gas sector. OPTS and IPPG are willing to work with you to realise this dream,” he said.

According to him, OPTS is made up of 28 member companies comprising international and indigenous oil companies collectively, accounting for approximately 90 per cent Nigeria’s crude oil production. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

The Host Communities of Nigeria Producing Oil and Gas (HostCom), have bemoaned deprivations and desecration by the activities of oil operators/settlors who short-change the communities and create divide-and-rule systems to flourish.

A Settlor is any holder of an interest in an Oil Prospecting Licence, an Oil Mining Lease, a Petroleum Prospecting Licence, or a Petroleum Mining Lease whose area of operations is in or appurtenant to any community or communities falling within the definition of host communities.

The HostCom also raised concern over inability of the settlors to finalise the Host Communities Development Trusts funds (HCDT), created to address the concerns of the host communities and stop the activities of the Shylocks and their collaborators.

Dr Benjamin Tamaranebi, National President, HostCom, made this known at a news conference on Friday in Abuja.

“For over two years of the enactment of the Petroleum Industry Act (PIA) 2021, the settlors remain comfortable.

“Till date, only 76 Development Trusts have been registered, only 45 accounts created, only 38 accounts funded and more than 100 Development Trusts yet not registered with Corporate Affairs Commission (CAC).

“What an irony is this, and it was even after the pronouncement of NUPRC’s revocation of Licenses notice in September 2023 that prompted this number,” he lamented.

The News Agency of Nigeria (NAN) recalled that NUPRC had threatened to revoke the licences of oil operators or settlors who failed to remit the 3 per cent statutory fees to oil communities before the end of September 2023.

Tamaranebi, therefore, said it was not surprised that they were fighting back, using every available means, including trying to confuse and deceive the public with concocted narratives, adding that it would not be swayed by their mischief.

However, he said, over the years oil operators and industry players had pumped millions of naira in the Host communities before the advent of PIA 2021, but it could not see any meaningful projects initiated by these players rather the communities remained in a sorry state.

He said the HostComply which was put on the firing line by industry players was the ultimate to checkmate the activities of the settlors and HCDTs both their annual OPEX due for every Trust.

He said the setting up of HostComply was in furtherance to the provision of the PIA 2021, Chapter 3, section 235 (1).

This, he said, mandated that: “The settlor shall incorporate HCDT (in this Act referred to as “the trust”) for the benefit of the host communities for which the settlor is responsible”.

“Section 235(4) of the Act states: “The settlor shall, for the purpose of setting up the trust, in consultation with the host communities, appoint and authorise a board of trustees which shall be registered by the Corporate Affairs Commission as a corporate body under the Companies and Allied Matters Act”.

“The HostComply is meant to offer comfort to the HCDT by providing them with a robust technological tool to interface and engage with the settlors and manage projects in their respective communities professionally while meeting global best practices,” he said.

The HostCom president expressed satisfaction over NUPRC’s effort as the regulator by putting everything in place so that the overall intendment of the PIA on this score is effectively realised for the benefit of those envisaged.

The PIA 2021 is a public document. All the Regulations enacted by NUPRC are in furtherance of the provisions of the Act. It is a public knowledge, which can be attested to by relevant stakeholders that all regulations issued by the commission derive from stakeholder consultations.

“They all passed through all necessary legal crucibles and were gazetted before inauguration for implementation,” he said. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

By Emmanuella Anokam

The Sahara Group says Africa requires about 2.64 trillion dollars, roughly the size of its Gross Domestic Product (GDP), to rely on renewable energy sources for electricity generation by 2050.

The company says Africa is expected to embrace more of natural gas and renewables for its energy in the coming years even as oil use will continue to increase.

The energy conglomerate said this at a workshop for the Energy Correspondent Association of Nigeria, on Wednesday in Abuja, tagged, “Energy Transition: The Road Not Taken.”

In a presentation, Ejiro Gray, Director, Governance and Sustainability, Sahara Group, said funds would be for the installation of the renewable energy sources.

This, she said, would also include infrastructure needed for generation, network and storage system as well as other enabling costs.

“Despite the promise of African renewable market, risks on three levels continue to prevent many investors from committing their capital,” she decried.

Gray listed the levels as macro, industry and transaction levels.

“Macro level comprises political risk which is associated with political events that adversely impact the value of investment, then off-taker risk which involves credit and default risk and currency risk associated with volatile forex rate that affects investment.

“Industry level comprises policy associated with taxes and regulatory policies that have adverse effect on projects, then grid and transmission risk associated with limitations, interconnection and liquidity risk associated with operational liquidity and revenue shortfall issues.

“Transaction level comprises of financing risk associated with financing instruments, then re-financing risk which bothers on loan, and technical risk associated with countries’ know-how for structuring and transactions,” she said.

She said while fossil fuel would continue to remain the major source of Africa Energy demand, particularly through oil, it was expected that there would be a major shift towards a modern and cleaner energy.

She said natural gas would now begin to play the role of bridging between more polluting fossil fuels and zero carbon technologies such as wind and solar energy.

According to her, biomass and coal are expected to experience the most significant drop-offs in the coming decades.

She stated that the company supplied 25 per cent of natural gas currently in Nigeria, adding that Africa is expected to embrace more of natural gas and renewable energy in coming years even as oil use continues to increase.

Gray, while advocating for value chain integration, funding, investment, de-risking and infrastructure to drive transition, said Sahara group would continue to make investments along the entire gas value chain from production to transportation to consumption. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko