Oil & Gas - News Agency Of Nigeria

Folashade Adeniran
Sep, Wed, 2023

MOMAN to collaborate with fire service, others on safety of all downstream petroleum facilities

By Yunus Yusuf

The Major Oil Marketers Association of Nigeria (MOMAN) has reiterated plans to collaborate with the Federal Fire Service and other relevant stakeholders to ensure safety of all petroleum facilities in the downstream.

Mr Gabriel Orupke, Chairman, MOMAN’s Health, Safety Environment and Quality (HSEQ) committee, said this on Wednesday during the quarterly Cluster Joint Safety Drills in Lagos.

He said the collaboration also includes the National Oil Spill Detection and Response Agency (NOSDRA), Lagos State Ministry of Energy and Mineral Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Orukpe said that the emergency drill exercise was conducted regularly to ensure the safety of personnel, equipment, and the community around Apapa, which hosts many depots and terminals.

He said that MOMAN had divided the Apapa hub into four clusters for quarterly Cluster Joint Safety Drills.

The News Agency of Nigeria (NAN) reports that the
Cluster 3, comprising TotalEnergies, HOGL, NRL(OVH), JV, and NPSC LPG depots, all located along Kayode Street, Marine Beach Apapa, conducted the Joint Safety Drill for Q3 at TotalEnergies Terminal 1.

The firefighting equipment was deployed by TotalEnergies, 11 PLC, NIPCO Plc, AITEO NNPC Retail, and NPSC Gas terminals.

Orukpe emphasised the need for collaboration to alleviate congestion on Kayode Street caused by trucks parked in multiple lanes, obstructing road access.

According yo him, the plan is to involve all
stakeholders in this effort.

He also said that MOMAN was working on securing nearby parking spaces for trucks, implementing a call-up system to load trucks in an orderly fashion and reducing on-road parking.

He said that the objectives of this exercise was to uphold safety regulations at all times, given the highly flammable nature of the oil business, ensure an adequate number of trained personnel
and firefighting equipment.

He said also to evacuate congested trucks to allow firefighting vehicles swift access in case of an emergency.

He added that the drill also aims to reassure residents of the community that MOMAN members had the capacity in terms of personnel and equipment,in collaboration with other non-members, to swiftly respond to any emergency situations.

He called for the cooperation of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the local government, and depots in the area in making safety measures an all-inclusive responsibility.

“It is worth noting that there are four clusters around Apapa, and drill exercises are conducted quarterly. Cluster 1, which comprises Apapa Jetty, ASPM, MRS Oil Nigeria Plc, NIPCO
Plc, and AITEO depots.

“We conducted the Q1 Joint Drill in March 2023. Cluster 2 (CONOIL Plc, Ardova Plc, and NNS Beecroft) is for Q2.

“The one held at TotalEnergies today was the third, with the fourth planned to take place at Mobil Road, Marine Beach before the year ends,” he said.

Orukpe said: “The scenario simulated was a truck collision leading to a spill and fire incident.

” The response time and joint efforts by neighbouring stakeholders with mutual assistance to control the fire and spill were tested,” he added.

Mr Godwin Jarikre,the Head of Supply, HSEQ & Technical, MOMAN, and his team who coordinated the event, expressed satisfaction with the participants’ performance as the aim was
achieved.

He noted the importance of equipment deployment and workers’ response to the alarm by swift mustering at the assembly point as very critical safety measures in ensuring that no one is left unevacuated during emergencies.

Also, Mr Ayorinde Cardoso, the Southwest Regional Coordinator of NMDPRA, who was represented by the Assistant Director, Ibrahim Dimowo, in company with the Head of Storage Infrastructure,
Lagos, Mr Oluwakayode Oyegoke, and his team, in his remarks, shared the same view regarding the objectives of the emergency drill.

He said he was impressed by the practical demonstration of equipment and the efficiency and competence of the personnel involved.

He commended MOMAN for organising the exercises and showcasing safety preparedness in its operational environments.

“The Federal Fire Service personnel were impressed and pledged their support whenever their services were needed.

Commandant of the Nigerian Army School of Intelligence at Tego Barracks Apapa, Brig.-Gen. K. N. Nwoko, expressed his displeasure with trucks indiscriminately parked along the road, given the area’s sensitivity to potential fire incidents due to the activities.

Nwoko warned that such actions would no longer be tolerated, and his men would impound any trucks found parked on the road.

He emphasised the importance of the many offices and establishments in the area, including the Intelligence School with over 200 students and valuable documents that must be protected from potential fires, especially those caused by the illegal siphoning of petroleum products from trucks
parked on the road.

He promised that his men and other security agencies would put an end to such activities.

NAN reports tha relevant government agencies who participated include NMDPRA, Federal Fire Service, NOSDRA, Nigerian Army, Nigerian Navy (NNS Beecroft), and the police. (NAN)

Edited by Folasade Adeniran

NNPC Ltd, NCDMB, IOCs sign MoU to reduce contracting cycle

Rabi'u Sani Ali
Sep, Mon, 2023

Oil & Gas

NNPC Ltd, NCDMB, IOCs sign MoU to reduce contracting cycle

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with the Nigerian Content Development and Monitoring Board (NCDMB) and International Oil Companies for optimal contracting cycle in the industry.

The MoU will implement industry framework, focused on processes and timelines for achieving optimal contracting cycle of not more than 180 working days in the Nigerian petroleum industry.

Speaking at the signing of the MoU on Monday in Abuja, Malam Mele Kyari, Group Chief Executive Officer, NNPC Ltd, listed key benefits of the framework in the MoU.

Represented by Mrs Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPC Ltd, Kyari included reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days, compared to the current best effort performance of 327, 333, and 185 working days, respectively.

“An optimised contracting cycle is expected to improve the ease of doing business, reduce cost, and drive efficiency which will eventually translate to production growth, increased revenues, and ultimately improved profitability.

“You will agree that one of the biggest challenges in the industry is contracting. And we see this as an enabler to increase production in the sense that once you have your contracts in place, nothing stops you from performing.

“Today, we have witnessed a collaborative effort by all the major stakeholders. We have come together to reaffirm that we are ready to work together to shorten the timeline for contracting and you can imagine reducing 320 days to 180 days, that is monumental.

“So efficiency is going to be instilled in the process and will ultimately deliver more production. We will deliver cost efficient operations and boost the economy,” he said.

The GCEO described the MoU as a collaborative solutions between the major industry players for double-digit economic growth rate agenda of the government and to generate tremendous value for all the stakeholders including the investors, the companies, and community.

Also speaking, Mr Simbi Wabote, Executive Secretary, NCDMB recalled that 15-DAY Rule to the industry was introduced in 2017 and later formalised it with Service Level Agreement (SLA) in May 2017 with NLNG leading to record breaking approvals in respect of NLNG Train7 project.

Wabote said the industry found the outcome impressive leading to Independent Petroleum Producers Group (IPPG) signing the SLA in 2018 and Oil Producers Trade Section (OPTS) thereafter.

He expressed delight that NNPC Ltd has now joined as a key party on the agreement being the senior partner of the Joint Ventures and concessionaire of the Production Sharing Contract (PSC) arrangements.

“The overall goal is to wrap up our tendering to contract award processes within six months. I have no doubt that this is doable with all key parties now on board with today’s execution of the SLA.

“This SLA will not be an exception as you can count on us to deliver our part of the deal,” he said.

In a remark, Mr Osagie Okunbor, Managing Director, Shell Nigeria, expressed satisfaction over the development in view of the long time the issue which was consistent had taken before being actualised.

Okunbor, while stating its commitment, said that apart from the MoU framework, the enablers were critical and should be seen as an attachment to the MoU, adding that work on the enablers should be concluded immediately after the MoU endorsement to ensure six months contracting cycle.

CEOs and representatives from other IOCs including the ExxonMobil, Chevron Nigeria, TotalEnergies and ENI also endorsed the MoU framework and expressed willingness towards an effective implementation.

Earlier, Mr Bala Wunti, Chief Upstream Investment Officer, NNPC Ltd, in an overview said three things identified as the major challenges of the sector included struggle to convert PIB to PIA which had been settled, security issues which had made business ineffective and cost element which could be addressed through contracting.

These, he said, made the sector globally not competitive hence the current industry collaborations on the MoU framework became necessary to tackle the problems.

“We have worked over one month, our team of experts in supply chain compliance and other supporting professionals will generate Service Level Agreement (SLA) to be executed differently from the previous SLA between the stakeholders to accelerate contracting timeline,” Wunti said.

The News Agency of Nigeria (NAN) reports that the framework is in line with the Nigerian Upstream Cost Optimisation Programme (NUCOP), and in consonance with President Bola Tinubu’s directive for NNPC Ltd and NCDMB to engage the industry with the objective of improving performance.

As a demonstration of his resolve to the efficiency mandate in the PIA, Kyari took the lead in constituting an industry joint committee (IJC) comprising NNPC Ltd, NCDMB, and IOCs in developing an industry framework for an optimised contracting cycle. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

Nigeria’s annual upstream CAPEX drops to bn- NUPRC

Muhyideen Jimoh
Sep, Mon, 2023

Oil & Gas

Nigeria’s annual upstream CAPEX drops to $6bn- NUPRC

By Yusuf Yunus

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the country’s total annual upstream capital expenditure decreased from 27 billion dollars in 2014 to less than six billion dollars in 2022.

The Chief Executive of NUPRC, Mr Gbenga Komolafe, revealed this on the sideline of the World Petroleum Congress (WPC) in Calgary, Canada.

Komolafe, represented by the Executive Commissioner, Mr Kelechi Ofoegbu, the figure represented a 74 per cent decrease in its capital expenditure (CAPEX).

He attributed the decline in CAPEX to several factors, while emphasising that regulatory uncertainty, significantly impacted investment in Nigeria’s oil and gas industry.

Komolafe further said that prevalent in the years preceding the enactment of the Petroleum Industry Act (PIA) also affected investment in the industry.

The News Agency of Nigeria (NAN) reports that the event was jointly organised by Cabtree Consulting, the Gas Aggregation Company of Nigeria (GACN) and CarbonAi x-rayed.

The topic was “Nigeria and Canada: Collaborating to Decarbonise Nigeria’s Oil and Gas Sector”.

He said other factors are de-funding of fossil fuel development occasioned by energy transition and the global call for decarbonisation.

According to him, most International Oil Companies (IOCs) deprioritised Nigeria in their portfolios which led to the redirection of CAPEX to other countries.

This, he noted, was with attendant dwindling investment in Nigeria’s upstream sector.

‘‘This under-investment impacted negatively on the country’s rig count. On average, Nigeria had seventeen (17) active oil rigs in 2019 representing one of the highest counts in the African continent as at then.

“The average rig count declined to eleven in 2020, seven in 2021, 10 in 2022, but recently grew to as high as 31 by August 2023, a positive signal of new investments trickling into the country.

“The relatively high crude oil prices may have also attributed to the increase in activities in the petroleum upstream sector.

“We also see this as a reflection of investors’ acceptance of the PIA and its effective implementation by the regulator.

“The projected outlook over the next few years looks promising, and as the regulator in the oil and gas upstream sector.

“We would leverage on this opportunity by doing all that is necessary to attract more investments and revamp the Nigerian upstream sector, ’’ he said.

The NUPRC boss added that the PIA has repositioned the Nigerian petroleum sector by creating efficient and effective governing institutions, with clear and separate roles for the industry.

According to him, it has also provide for enabling transparency, accountability, and fostering a business environment conducive for petroleum operations.

He explained that since the enactment of the PIA, the Commission had gone ahead to develop 24 priority regulations which would give meaning and intent to the spirit of the PIA, and create a predictable regulatory environment for operators and other stakeholders.

On energy transition, he maintained that the need for oil and gas producers to embrace the reality of green transition and take strategic position to leverage the opportunities presented by the unfolding era had become more pressing.

‘‘With Nigeria’s huge gas reserves of 208.83 TCF and a potential for an increase to about 220 TCF within the next ten (10) years, Nigeria has adopted natural gas as our transition fuel in our stride at developing cleaner fuels and staying on track with our net zero emission commitment of 2050.

“Unfolding event has equally shown that natural gas is our destination fuel, with a projection that gas will form a significant part of energy mix for Nigeria by year 2030 and beyond.

“In recognition of this, Government has designed the Decade of Gas programme to ensure that gas actually play a role to lift us from the challenges that confront us in order to drive industrial development,’’ Komolafe explained.

Earlier, the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services(NUIMS), Mr Bala Wunti, said reaching net zero would require improvements to the enabling environment.

Wunti said as well as robust project preparation and tapping different sources of finance in a coordinated manner,taking into account each country’s context whether developed or developing.

He said in his presentation titled, ‘‘Decarbonising Nigeria’s Oil and Gas’’.

Wunti was represented by the Asset Manager, Group PSC(Production Sharing Contract), NUIMS NNPC Ltd., Mr Justus Derefaka, hinted that pursuing a net-zero emissions pathway comes at a very high price tag.

He added that gas use for power would need to increase to meetrising electricity demand until 2030.

‘‘Delivering Nigeria’s current NDC requires strong gas uptake across the economy, including 80 per cent of cars being powered by Compressed Natural Gas(CNG) and 50 per cent of the population using Liquified Petroleum Gas(LPG) for cooking by 2050.

NAN also reports that the five-day conference has the theme: “Energy Transition: The Path to Net Zero”.

The 24th WPC has recorded no fewer than 15,000 visitors from over 100 countries, 5,000 delegates and over 200 national and international exhibitors. (NAN) (www.nannews.ng)

Edited by Olawunmi Ashafa

FG warns fuel stations operators against pump alteration

Muhyideen Jimoh
Sep, Fri, 2023

General News , Oil & Gas

FG warns fuel stations operators against pump alteration

By Kelechi Ogunleye

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will sanction fuel stations operators who alters petroleum pumps.

Mr Farouk Ahmed, NMDPRA Chief Executive, said this during an interactive session with commissioners of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on Friday in Abuja.

Ahmed said that petrol stations caught dispensing fuel with adjusted fuel pumps would face heavy sanction.

He said that the sanctions to be meted out include revocation of operating licenses, suspension from operation or shut down depending on the gravity of the offence.

According to him, adjustment of fuel pumps by filling station operators is a major concern to the oil regulatory bodies and the Federal Government.

“What we are doing now is that we have some of our staff going round to take on-the-spot checks of some of the petrol stations.

“If you drive into a station, drive out, you will not know if you have been cheated until you do a measurement.

“Sometimes we do a physical measurement where we go to some stations and buy one litre, look at that environment to see whether that one litre is really one litre.

”Then we will know whether or not they have tampered with the pump,” he said.

The NMDPRA boss said that the authority would continue to collaborate with the RMAFC to generate more revenue for the federation.

“We have started the engagement but this is just a formal collaboration on areas where we can improve the revenue generation for the federation.

“There are two areas we have to look at which are either to generate revenue or cut costs,” he said.

He called on citizens to invest in the midstream sector of the economy.

“For example, if you want to build a gas plant, come to us, we will give you the guidelines, the policies, and you will come and invest.

“The area you want to invest in will determine the cost of investment; the investment opportunities are there,” he said.

RMAFC Chairman, Mr Bello Shehu, said that the engagement between both organisations was to strengthen their partnership.

“We are here in order for them to enlighten us on what they do and what we can do as a commission to assist them to better boost revenue generation for Nigeria.

“We are interested in what the authority does to enable us monitor better and know the right questions to ask which will enable us give appropriate information,” he said.(NAN) (www.nannews.ng)

Edited by Gregg Mmaduakolam/Ismail Abdulaziz

UNGA 78: NNPC Ltd signs up to UN Global Compact

Afonne Emmanuel
Sep, Thu, 2023

Oil & Gas

UNGA 78: NNPC Ltd signs up to UN Global Compact

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed up as a participant of the United Nations Global Compact, thereby becoming the first state-owned oil company to join the global initiative.

Malam Mele Kyari, Group CEO of NNPC Ltd., signed the Letter of Commitment, at the ongoing UN General Assembly (UNGA), signifying its participation in the UN Global Compact in New York.

A statement by the NNPC Ltd. management on Thursday said the company signed up in a short ceremony on the sidelines of President Bola Tinubu’s session during the Global Africa Business Initiative (GABI) at the ongoing general assembly.

Speaking shortly after the signing, Kyari said the company’s participation in the UN Global Compact was a further testimony to Nigeria’s commitment to work with global partners towards attaining a just Energy Transition.

Kyari added that with this development, NNPC Ltd. supports the Ten Principles of the UN Global Compact on human rights, labour, environment, and anti corruption.

He described the company as a dynamic global energy company with businesses and operations across the entire spectrum of the energy value chain.

“We are committed to making the UN Global Compact and its principles part of our strategy, culture and day-to-day operations of our Company.

“We will engage in collaborative projects which advance the broader development of goals of the United Nations, particularly the Sustainable Development Goals (SDGs),” Kyari added.

Earlier in her remarks, the Executive Director, UN Global Compact Network, Nigeria, Ms Naomi Nwokolo described company’s move to become a participant of the UN global initiative as pivotal step in fostering a culture of ethical business conduct, environmental stewardship, and social responsibility.

With Nigeria being one of the largest producers of crude oil in Africa, a transition from an energy system driven by fossil fuels to one based on renewable energy will have far reaching positive impact, serving as a catalyst for sustainability in-country, on the continent and the world at large.

The UN Global Compact, formally inaugurated in July 2000, is a voluntary UN agreement designed to encourage companies around the world to develop, implement, and disclose responsible and sustainable corporate policies and practices. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

NDDC initiates plan for job creation in oil producing region

Afonne Emmanuel
Sep, Wed, 2023

Oil & Gas , Niger Delta

NDDC initiates plan for job creation in oil producing region

By Precious Akutamadu

The Managing Director of the Niger Delta Development Commission (NDDC), Dr Samuel Ogbuku has said that the commission was working towards creating job opportunities for youths in the region.

Ogbuku said this while addressing the Chairman of the Nigerian Young Professionals Forum (NYPF) and Convener of Niger Delta Young Professionals, Moses Siasia and members of his team, during a meeting in his office in Port Harcourt.

He said that the commission had been repositioned to bring about the much needed growth and development to inspire hope in the region.

“The NDDC is now largely focusing on sustainable partnerships in manpower and infrastructural development, with a short, medium and long term plan,” he said.

Ogbuku said that the commission had floated an initiative tagged, ‘Project Hope’, as part of its strategic arrangement to create job opportunities for young people in the Niger Delta.

He explained that Project Hope would focus on agriculture and tech hubs for young people, with the deliberate aim of providing sustainable means of livelihood for them.

“We have a new way of thinking and a new way of doing things. We are moving away from the past because times are changing and we need to catch up.

“Our deliberate and strategic plans are geared towards sustainable development. We are committed to ensure that we build the capacity of our youths in areas that they can have comparative advantage.

“We have set up what we call Project Hope.

“This initiative is focused on tech hubs and agriculture. It will take our youths out of poverty and help to create sustainable livelihood.

“They will be their own bosses and also employers of labour,” he said.

The NDDC boss explained further that the commission is building a database of youths in the region to aid its planning and manpower development.

He said that the comprehensive database would enable the NDDC to appropriate its empowerment scheme.

On innovative plans to change its operations, Ogbuku said the commission had engaged KPMG to develop an Internal Corporate Governance System.

While decrying the number of abandoned projects in the region, he said that the commission was partnering with state governments in the Niger Delta, individuals and institutions to maximise its developmental agenda.

“The partnership will enhance the quick delivery of critical infrastructure in the region,” he added.

Earlier in his remarks, Moses Siasia lauded the NDDC boss on the massive reforms he had embarked on, which according to him had made the commission more result-oriented.

Siasia said they were in his office on a familiarisation visit and to congratulate him on his appointment.

He added that they have no doubt in his capacity of Ogbuku to deliver on his job.

He described the NDDC’s new thinking and vision as a product of purposeful leadership under Ogbuku and called for support from people of the region for him to succeed. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

350 teachers benefit from Seplat empowerment in Edo, Delta

Afonne Emmanuel
Sep, Wed, 2023

Oil & Gas , Education

350 teachers benefit from Seplat empowerment in Edo, Delta

By Nefishetu Yakubu

Seplat Energy on Wednesday trained over 350 teachers under its Seplat Teachers Empowerment Programme (STEP) to enable them acquire modern learning methods, in line with creative thinking for the development of education in Edo and Delta states.

Speaking during the flag off of the STEP empowerment programme on Wednesday in Benin, Chioma Afe, the Director of External Affairs and Sustainability, Seplat, said the gesture was part of its corporate social responsibility to host communities.

Afe disclosed that the programme started about four years ago, adding that, it was being executed in Edo and Delta states.

“Seplat Energy Corporate Social Responsibility is hinged on improving our host communities, looking at the issues and areas where they have challenges.

“So we looked at the challenges that are economic, social and the ones that will drive the SDG goals.

“We identified five areas of health, education, youth empowerment, access to energy and safe motherhood programme.

“We are improving the education ecosystem with focus on teachers, infrastructure and students. All these are embedded in the Step Programme for teachers as well as the STEAM project,” he said.

According to her, every year, about 350 teachers are selected for the empowerment programme through the ministries of education in Edo and Delta.

Afe added that the initiative was specifically designed to train secondary school teachers in critical thinking by improving their competence to teach students through the Science, Technology, Engineering, Arts and Mathematics (STEAM) methodology.

The Representative of the Managing Director, NNPC E&P Limited, Mr. Levi Owunari, said programme was done in partnership with Seplat Energy to roll out the STEP in the companies’ host communities.

Owunari said the initiative was designed to provide and build the capacity of teachers within the NNPC Ltd./Seplat operational communities.

Also speaking, the Delta commissioner for Basic and Secondary Education, Mrs Rose Ezewu, commended the efforts of NEPL/SEPLAT who for several years have upheld its corporate social responsibility in the Education sector in Edo and Delta.

Represented by the Mrs Winifred Ighavbota, the director of schools in Delta, Ezewu noted there is no doubt that your teachers empowerment project had contributed immensely to enhancing and sustaining the quality of Education in the state.

Mrs Ero Ugiagbe, the Permanent Secretary of Edo ministry of Education who represented the commissioner, Joan Oviawe, also commended Seplat for the empowerment programme. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

NOGASA decries incessant diesel price increase in market

Afonne Emmanuel
Sep, Wed, 2023

Oil & Gas

NOGASA decries incessant diesel price increase in market

By Emmanuella Anokam

The Natural Oil and Gas Suppliers’ Association of Nigeria (NOGASA) has raised alarm over the incessant increase in the price of Automotive Gas Oil (AGO) called diesel.

The National President of NOGASA, Mr Benneth Korie, in a statement on Tuesday, said that the rapid increase in diesel price has made it difficult for suppliers to access product and loans from commercial banks for doing their businesses.

Korie said the association was worried about the ugly development and had been trying to understand why the price of diesel has continued to go up as high as N950 to N1,100 per litre.

“This rise in prices are also evidently causing veritable hardships haulage transportation and commuters alike.

Korie therefore called on the government to intervene before it would affect the sector and derail the anticipated growth it is working towards achieving.

According to him, “this will be counter productive to the aspirations of our over all national political economy.”

The president said that the meeting of the association scheduled to hold in October would take adequate steps towards finding lasting solutions to the problem.

“However, the price of crude oil as at today is US$ 95 per barrel and the dollar exchange is racing towards N1,000 per dollar.

“Consequently, the Nigeria refineries should be given emergency attention by government to forestall the nosediving of the economy.

“NOGASA has been playing a pivotal role in the oil and gas industry and will continue to ensure the availability of adequate supplies of products to Nigerians.

“We will continue to deliver on our mandate as we make progress in the oil and gas industry,” he said.

He advised that suppliers should go about their respective businesses until proper resolution of the problem had been taken at the meeting.

He said NOGASA, as a premiere organisation of legitimate, organised and proficient suppliers, dealers, stakeholders and practitioners in the nation’s oil and gas sector distribution chain would continue to provide quality services for all. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

Afonne Emmanuel
Sep, Tue, 2023

Oil & Gas

Restructuring: NNPC Ltd sends employees on statutory retirement

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) says its Management Staff with less than 15 months to statutory retirement will be exiting the company effective Sept. 19, 2023.

The company made this known on Tuesday on its official X handle formerly known as Twitter.

According to the NNPC Ltd., the move is in a bid to pursue effective organisational renewal to support the delivery of its strategic business objectives, as it has become imperative to rejuvenate its workforce.

The statement posted on the company’s X page reads “Consequently, in addition to the recent exit of three Executive Vice Presidents, other management staff with less than fifteen (15) months to statutory retirement will be exiting the company effective Sept. 19, 2023.

“This is in line with our commitment to scale up NNPC Ltd.’s capabilities through targeted talent management and equal opportunity for all Nigerians,” it said.

It would be recalled that NNPC Ltd. had on Sunday announced the appointments of three new Executive Vice Presidents, as well as outlined their various designations.

They are Oritsemeyiwa Eyesan, who is now the new Executive Vice President, Upstream; Olalekan Ogunleye, takes over as Executive Vice President, Gas, Power, and New Energy; and Adedapo Segun, Executive Vice President, Downstream.

The announcement of the appointments of the three Executive Vice Presidents, which was posted on the company’s X (formerly Twitter) handle early on Sunday, stated that their appointments were with immediate effect.

This development led to the compulsory retirement of the company’s three former Executive Vice Presidents, including Abdulkabir Ahmed, Gas, Power and New Energies; Adokiye Tombomieye, Upstream; and Adeyemi Adetunji, Downstream.

The News Agency of Nigeria (NAN) reports that the national oil company, formerly known as Nigerian National Petroleum Corporation, transited fully into a commercial entity in July 2022 to become the Nigerian National Petroleum Company Limited.

The official transitioning into a private entity means that the oil company is now being regulated in line with the provisions of the Companies and Allied Matters Act. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

Afonne Emmanuel
Sep, Mon, 2023

Oil & Gas

Nigeria generates $23bn revenue from oil, gas in 2021 – NEITI

By Lucy Ogalue

The Nigeria Extractive Industries Transparency Initiative (NEITI) said on Monday that the oil and gas industry generated over $23billion in 2021.

The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji said this while presenting highlights on the 2021 Oil and Gas report unveiled in Abuja.

According to Orji, the revenue sources included sales of federation crude oil and gas, taxes, royalties, concession rental, gas flare penalty, bonus and license fees, as well as transportation fees.

He said that the total revenue was also generated through dividends from NLNG, NDDC levy, NCDMB levy, Ness fee, and miscellaneous income.

The NEITI boss said that a total of $13.2 billion dollars was remitted from the sum to the federation account.

He said that the Nigerian National Petroleum Company, before its transition, failed to remit about $2 billion to the federation account and a total of $6.9 billion was deducted at FAAC.

Orji said that while oil production for the year under review stood at about 566,129 million barrels per day, gas production came at over 2,743,700 million standard cubic feet per day.

He said that the sector contributed a total of 7.2 per cent to the nation’s Gross Domestic Product (GDP) in 2021 with export contribution of 76.2 per cent.

The executive secretary said that the Federal Government paid about $3.087 billion in cash calls as equity contributions, while the outstanding cash-call liabilities payable by the federation stood at about N330.007 billion.

On data of Beneficial Owners (BO) of Assets, Orji said that about 69 companies were covered in the production of the report and have disclosed some BO information through NEITI or CAC portal except four companies.

On subsidy, the NEITI boss said about $1,159 trillion was paid by the government as subsidy between March and December 2021.

“NEITI audits revealed that between 2006 and 2021, a total of N8.149 trillion has been so far expended on petroleum subsidy, now referred to as under-recovery,” he said.

On recommendations, he said that based on the outstanding liabilities payable to FIRS and NUPRC, the NNPC and NPCD should be investigated while other companies should promptly pay their liabilities.

Orji said that the report also recommended that a special investigation be instituted to establish the status of the country’s refineries and why they have been non-operational.

“Value for money assessment on the refineries should also be carried out,” he added.

He further reiterated the need to strengthen remediation mechanisms and involve independent third parties to conduct detailed investigations when necessary among other recommendations.

Earlier, stakeholders in the oil and gas sector commended NEITI on efforts towards ensuring transparency and accountability in the industry.

The Secretary to Government of the Federation, George Akume, reiterated the importance of the report to economic development.

Akume who was represented by his Permanent Secretary on Political and Economic Affairs, Esuabana Nko-Asanye, reaffirmed the Federal Government’s commitment to support and deepen the implementation of the EITI in Nigeria.

He then restated the need for security issues especially in the Niger/Delta to be tackled to reduce losses in the sector.

The Group Managing Director of NNPCL, Mele Kyari, represented by his Chief Compliant Officer, Nasir Usman, pledged the unreserved support of NNPCL to NEITI to enable it achieve its mandate.

The Minister, Budget and Economic Planning, represented by the Permanent Secretary, Nebolisa Anako, stated the importance of data for economic planning.

He reiterated the commitment of the government to the mandate of NEITI as the oil and gas sector was one of the major sources of foreign exchange for the nation.

The Chairman, House Committee on Petroleum, Rep. Ikenga Ugochinyere, called for the amendment the NEITI Act and urged for more government allocation to the initiative to enable it carry out its mandate seamlessly.

Ugochinyere also pledged the commitment of the legislature to work towards the implementation of the report.

Similarly, the Chairmen Senate Committee on Petroleum Upstream, Etang Williams and the Senate Committee Chairman on Oil and Gas Host Communities, Benson Agadaga, also expressed commitment to stand by NEITI in implementing recommendations of the report.

The News Agency of Nigeria (NAN) reports that the unveiling of the 2021 report was attended by various stakeholders and partners in the oil and gas sector in the country. (NAN)(www.nannews.ng)

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Edited by AbdulFatai Beki/Bashir Rabe Mani