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

By Emmanuella Anokam

The Federal Government has tasked oil and gas experts to proffer permanent solutions to challenges ranging from low productivity, oil theft, pipeline vandalism and gas flaring in the local oil industry.

Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), made the call on Monday in Abuja, at the opening of the third Biennial International Conference on Hydrocarbon Science and Technology (ICHST 2023).

The conference, organised by the Petroleum Training Institute (PTI) and hosted by the Petroleum Technology Development Fund (PTDF), aimed at resuscitating the observable decline in the nation’s oil production and embracing innovative research as practiced by the developed nations.

Lokpobiri said Nigeria had played major roles in the global oil industry and Africa in particular, hence the need to sustain its position.

“Nigeria has been a big player in the oil and gas industry both in Africa and globally. For us to sustain our place globally, we need to tackle challenges and key into what is trending globally.

“My expectations at the end of this conference is for us to come up with home grown solutions to address our problems in the petroleum industry.

“Nigeria have so many problems in the industry, I believe that the conference would come up with solutions to address those challenges and also produce document that will be implementable,” he said.

Also speaking, Dr Henry Adimula Principal/Chief Executive, PTI, said the conference underscored the need to shape the destiny of Nigeria’s oil/gas industry.

Adimula added that the essence of the conference was to explore, dissect, and contribute to a future teeming with possibilities.

He acknowledged the pioneering research conducted by the PTI which had substantially influenced the discussions.

“PTI’s development of economic models for gas investment, spanning the upstream, midstream, and downstream sectors, and creation of Modified Unit Technical Cost Model for oil and gas investment, ensures precise determination of the cost to produce a standard cubic foot of gas.

“These achievements underscore PTI’s dedication to innovative and environmentally responsible hydrocarbon resource utilisation,” he said.

Adimula said its collaborative research with the Nigerian National Petroleum Corporation Research and Development Division had resulted in steps towards efficient storage system for Compressed Natural Gas (CNG) in powered tricycles.

According to him, this pioneering initiative marks a substantial stride towards sustainable energy solutions and cleaner transportation methods.

He said its strides in research and innovation also yielded results especially in securing a patent for the ‘Method of Improving the Rheological Properties of Potassium-Based Bentonite Clay’ under Nigerian Patent No NG/P/2020/200 as duly registered with the Nigerian Patents and Designs Registry.

These innovations, he said, reflected its steadfast dedication to sustainable and eco-friendly practices, serving as a testament to our unwavering commitment to pioneering research and development.

Mr Ahmed Aminu, the Executive Secretary PTDF, represented by Mrs Ifeoma Nwokike, General Manager Projects, in his address said the oil/gas sector, especially in Nigeria, was at an intersection of complex challenges and unprecedented opportunities.

According to Aminu, the industry grapples with a myriad of issues, from technological hurdles, research limitations, and the dwindling landscape of investments and finance.

The situation, he said underscored the importance of bolstering research funding and technological development to boost the sector.

“The imminent commencement of the Dangote Oil Refinery, the completion of pivotal pipeline infrastructure like the AKK, and the production initiatives at Komani oil field in Northern Nigeria, present a hopeful panorama of opportunities that can reinvigorate the industry,” he said.

In his keynote address, Dr Omar Ibrahim, the Secretary-General, African Petroleum Producers’ Organisation (APPO), identified the biggest victims of a speedy energy transition as the developing countries, especially those from Africa.

Ibrahim said the organisation had played major role in the sector by identifying three imminent challenges namely technology, expertise and markets.

“To create this future, the APPO Ministerial Council approved the recommendations of the APPO Long Term Strategy Committee to take three practical steps to address the imminent challenges,” he said.

The theme of the conference is: ‘The Future of the Oil and Gas Industry: Opportunities, Challenges and Development’. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma