By Emmanuella Anokam

Amb. Gabriel Aduda, Permanent Secretary, Ministry of Petroleum Resources has signed Performance Contracts (PC) with the ministry’s directors to enhance accountability and advancement.

Aduda, in a statement, on Saturday, signed by Mr Chris Ugwuegbulam, Assistant Director (Information) of the ministry urged the directors to diligently fulfill their obligations under the contract.

This step advances the implementation of the Performance Management System (PMS) within the ministry.

The PC is a formal agreement outlining responsibilities and targets between the supervisor and supervisee.

Its purpose is to enhance career advancement, accountability, results, and a performance-oriented culture within the Ministry of Petroleum Resources.

The permanent secretary emphasised that the process would establish a framework for effective performance reporting, feedback, monitoring and evaluation of departmental expectations and deliverables.

He encouraged the directors to extend the approach to their divisional heads and individual staff for heightened accountability and improved service delivery.

Aduda also highlighted the ministry’s ongoing efforts to fully digitise and automate work processes, reducing paperwork and enhancing workflow, as outlined in the Federal Civil Service Strategy and Implementation Plan FCSSIP 2021-2025.

Mrs Adaji Shehu, Director of Human Resources Management of the ministry, expressed gratitude to the Permanent Secretary for his commitment to institutionalising the New Performance Management System in the Ministry.

The signing ceremony had witnesses from the Ministry’s Performance Management System Champions and other staff. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By EricJames Ochigbo

The Iranian  Government has expressed its readiness to collaborate in developing Nigeria’s oil and gas downstream sector.

The Iranian Ambassador to Nigeria, Muhammad Alibak, made this known when he hosted Rep. Ikenga Ugochinyere (PDP-Imo), Chairman, House Committee on Downstream Petroleum and Rep. Aliyu Mustapha (PDP-Kaduna state) in Abuja.

The ambassador explained that the assistance would include in refineries and other related infrastructure.

He said that Iran was ready to support the Nigerian Government in addressing its energy challenges through collaborative investment and cooperation.

The ambassador expressed Iran’s enthusiasm to bolster Nigeria’s oil and gas sector and explore alternative energy sources.

Alibak also said that areas of collaboration included Compressed Natural Gas (CNG) projects, refinery improvements, petrochemical ventures, and impactful exploration initiatives.

He expressed the unwavering commitment of Iran, exemplified through a Memorandum of Understanding (MoU), previously signed by the former Minister of Petroleum Resources, Mr Timpre Slyva.

The ambassador also highlighted subsequent correspondence from Iran’s current Oil Minister, demonstrating their determination to collaborate closely with Nigeria.

In his remarks, Ugochinyere said that the purpose of their visit was to solidify deeper cooperation based on Iran’s long-standing willingness to contribute to Nigeria’s growth and expansion in the downstream sector.

He said sequel to the enacted Petroleum Industry Act (PlA), “there are many opportunities within the downstream and midstream oil domains.”

The lawmaker sought enhanced investment collaboration with Iran in terms of technology transfer that would fortify the ongoing evolution in the oil and gas sector.

Ugochinyere underscored the significance of refining alternative energy sources, advancing the CNG project, accelerating petrochemical initiatives, and boosting profitable exploration endeavours.

The chairman commended Iran’s successful utilisation of gas resources, leading to widespread connectivity to refined gas and enabling economic growth.

He commended Iran’s resilience in maintaining local petroleum refining and expanding refining capacity amidst global economic sanctions.

Ugochinyere said that closer collaboration with Iran, a country that successfully overcame challenges including global sanctions, could strengthen Nigeria’s energy security, exploration activities, local refining, and overall industry growth.

The chairman assured that the Nigerian Parliament would vigilantly oversee the implementation of the PlA, ensuring its intentions so upheld with unwavering consistency.

He encouraged Iranian investors and oil companies to capitalise on the transparent and competitive market environment, leveraging the newfound stability in Nigeria’s oil and gas sector and invest heavily.

Also speaking, Mustapha expressed the urgent need for Nigeria to transition from exporting crude materials to refining locally.

“This transformation would pave the way for job creation, forex generation, energy security, and greater economic stability.

“This is further made possible given the removal of subsidies and the resulting volatility of Nigeria’s oil and gas sector and the potential opportunities presented by the PIA,” he said. (NAN) (www.nannews.ng)

Edited by Thompson Yamput/Vincent Obi

By Emmanuella Anokam

The Nigeria Upstream Petroleum Regulatory Authority (NUPRC) has confirmed that search and rescue operations of Personnel on Board (POB) of Seplat Energy’s capsised drilling rig in Delta have started and are still on-going.

The drilling rig had capsised while in transit and was partially submerged at about 5.00am on Tuesday.

The NUPRC management said, in a statement on Thursday, it had been formerly notified by Seplat Energy Plc of the incident involving a drilling rig during its operation at a swamp location in Delta.

The NUPRC said the Depthwize Majestic Rig was contracted by Seplat Energy Plc to drill Ovhor-21 well at a swamp location in Delta.

It explained that the rig completed the drilling of Gbetiokun-11 for NEPL and demobilised on Aug. 9.

“Thereafter, the rig commenced Rig-Move from Gbetiokun-11 well location to the planned Ovhor – 21 well location. Unfortunately, the rig capsised while in transit and was partially submerged at about 5.00 a.m. on Tuesday, Aug. 15.

“Information from our Warri Regional Office confirmed that Search and rescue operations of Personnel on Board (POB) the rig has commenced and it’s on-going.

“Seplat Energy has also submitted Incident Notification Form 41 to the Commission as statutorily required and commenced preliminary and detailed investigation on the incident.

“Out of the 96 personnel on board as the time of incident, 92 have been rescued, one confirmed dead and three yet to be accounted for,” it said.

However, it added that the divers had been mobilised to the location of the incident for search and rescue operations, while the rescued personnel were receiving medical attention at the company’s hospital.

“The Commission will continue to update the public on the detailed outcome of the investigations as more information becomes available,” it said. (NAN)(www nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) is reviewing its 2020-2021 reports of the oil, gas and mining industries for stakeholders’ input for approval and release.

Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI said this at the Stakeholders’ Roundtable for the Review and Approval of NEITI Audit Reports on Wednesday in Abuja.

The News Agency of Nigeria (NAN) reports that the reports sought to establish the revenue paid by oil, gas and mining companies and how much of such revenues were actually received into government coffers.

The reports covered a total of 69 companies and 12 government agencies and one state owned enterprise for the oil and gas reports.

A total of 1, 214 companies with three government agencies were covered in the reports of the solid minerals, which aimed at establishing the quantities of minerals produced and utilised in the country.

Orji said other areas of focus by NEITI were to identify investments made by the federation or the federal government in the oil, gas and mining industries, track subsidy payments and company remittances and liabilities.

“The processes followed, especially on the basis for computation and remittances of all revenues payable to government such as taxes, royalties and rents, are equally of interest to NEITI.

“We hope that after this review and approval process, the independent auditors who are part of this meeting will in collaboration with NEITI staff reflect your comments, observations and remarks in the reports before they are finalised and released,’’ he said.

The executive secretary said the stakeholders meeting was to consider and approve the NEITI reports, which had been submitted by the Independent Administrators, Messrs Taju Audu and Co and Amedu Onekpe and Co.

He said the NEITI standard, which provided guidance to its operations, required that the Multi Stakeholders Group (MSG) which oversees the EITI reporting process and implementation in countries approve the industry reports produced before being released to the public.

He said in Nigeria, the MSG known as the National Stakeholders Working Group (NSWG) was among the board of Ministries, Departments and Agencies (MDAs) dissolved by the president on June 19, 2023.

“After extensive consultation with the international secretariat, it was agreed that representative companies, civil societies, media and government should be invited to review, deliberate and approve the reports.

He said its immediate priorities were to release the 2020-2021 oil, gas and mining reports and the fiscal allocation and statutory disbursement reports consequent upon the approval it would get.

According to him, its priorities also include conduct of the 2022-2023 industry reports in the oil, gas and mining sector and linking of NEITI reports to revenue growth and impact and updating data and information on all financial liabilities.

These, he said, would support government’s revenue mobilisation for development and upgrade of infrastructure.

The stakeholders and civil society organisations also commended the NEITI management on its efforts and doggedness in producing the reports which they said had aided the economic growth.

Ms Faith Nwadishi, Executive Director, Centre for Transparency Advocacy (CTA), lauded NEITI for blazing the trail and setting standards for transparency and good governance in the country.

She also commended the media for its support and enlightenment. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd) and Afreximbank have jointly signed a commitment letter and term sheet for an emergency three billion dollars crude oil repayment loan.

The signing took place on Wednesday in the bank’s headquarters in Cairo, Egypt, according to a statement by the NNPC Ltd.

The News Agency of Nigeria (NAN) reports that the deal will cushion the effect of fuel price jump and scarcity of forex, associated with the free float of the naira, in line with President Bola Tinubu’s promise of harmonising various exchange rates.

The naira float had seen the currency plunge from below N500 per dollar on the official exchange windows to a record low of about N900 naira.

Petrol now sells at N617 from the first increment of N540 per litre since May 29, when Tinubu announced that fuel subsidy was gone.

And oil marketers in several reports said there might be another round of pump price increase as crude price further increased in the international market.

On Monday, the National Bureau of Statistics (NBS) reported that Nigeria’s Consumer Price Index (CPI) rose to 24.08 per cent in July from the 22.41 per cent recorded in June 2023.

On this background, the NNPC Ltd in the statement explained that the emergency three billion dollars crude oil repayment loan would provide some immediate disbursement.

It said the disbursement would enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.

Tinubu had on Tuesday assured Nigerians that there will be no further increase in the pump price of petrol, in spite of the fuel subsidy removal.

The president’s reaction through his Special Adviser on Media and Publicity, Ajuri Ngelale to journalists in Abuja followed the announcements by NNPC Ltd that there would be no increase in the pump price of petrol anywhere in the country.

Tinubu, who acknowledged that there were inefficiencies within the downstream sector, contributing to the fuel price controversy, however, assured that loopholes associated with smooth delivery of petroleum products would be addressed without delay.

Labour unions’ had also threatened to embark on strike any moment.

Meanwhile, Mr O’tega Ogra, Senior Special Assistant to the President on Digital/New Media via his twitter handle explained that the deal with Afreximbank would enable NNPC Ltd to defray taxes and loyalties in advance.

Ogra said it would also provide the government with dollar liquidity to stabilise the naira with limited risk.

He further gave an insight saying that the emergency three billion dollars crude oil repayment loan was not a crude-for-refined products swap but an upfront cash loan against proceeds from a limited amount of future crude oil production.

He said it would not pose any risk, adding that the exposure for NNPC Ltd. is very limited, covering just a fraction of their entitlements.

“Additionally, there are no sovereign guarantees tied to this loan,” he said.

On the benefit of the loan to Nigerians, Ogra said it would assist NNPC Ltd. in settling taxes and royalties in advance and also equip the Federal Government with the necessary dollar liquidity to stabilise the Naira, with limited risk.

Ogra said the funds would be released in stages or tranches based on the specific needs and requirements of the Federal Government.

“A strengthened Naira as a result of this initiative will lead to a reduction in fuel costs.

“This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted.

“A stronger Naira will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged,” Ogra added. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

The Nigerian Extractive Industries Transparency Initiative (NEITI) is set to provide data on the actual volume of Premium Motor Spirit (PMS) consumption in the country.

Dr Orji Ogbonnaya Orji, the Executive Secretary of NEITI, made this known at a consultative forum with the Civil Society Organisations and the media on Tuesday in Abuja.

Orji said it would begin providing baseline information and data on the utilisation and management of the 13 per cent derivation paid to oil producing states in the country.

According to him, the baseline study is important as it will determine if the states are getting their dues and if the government is paying what they should.

This, he said, would provide critical data required to monitor how much being allocated monthly to oil-producing states and their managements.

Orji added that it was a political issue as states with solid minerals had canvassed to be included in the list.

“It is a special report we are commissioning this year alongside the oil and gas report.

“We are also commissioning a study on the actual PMS consumption in Nigeria, an independent report to establish the quantity of fuel Nigeria consumes and its costs, it will be used to manage the sector as subsidy is removed,” Orji said.

According to figures by the National Bureau of Statistics, the 13 per cent derivation fund distributed among the nine oil-producing states in Nigeria rose by 115.5 per cent to N970.2 billion in 2022, following improvement in the price of crude oil in 2022.

The civil societies representatives also lauded the move, and thereby described it as ‘revolutionary’.

They, however, suggested that credible civil society organisations and states that have set up commissions on the fund should be included in the study.

They further recommended other possible reports to gather, especially on artisanal refining.

Petrol consumption and pricing in Nigeria have been the subject of interest following the removal of subsidies.

Prior to scrapping petrol subsidies, petrol consumption was officially said to be around 66 million litres daily, but the bulk of that reportedly was smuggled outside the country.

Since its removal, consumption has fallen by a third, according to figures from the government regulator. (NAN) (www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) says Nigeria requires $20 billion annually to achieve the desired gas expansion plan to bridge the country’s gas infrastructure.

Dr Orji Ogbonnaya Orji, NEITI Executive Secretary, at the policy dialogue on Nigeria’s Decade of Gas Action plan on Monday in Abuja said given the shrinking fossil fuel investment landscape, clarity was required of infrastructure to be prioritised.

The dialogue was organised by the African Initiative for Transparency, Accountability and Responsible Leadership (AFRITAL) in collaboration with the Natural Resource Governance Institute (NRGI).

The Federal Government in December 2020 rolled out the National Gas Expansion Programme (NGEP) to deepen the use of natural gas and make it a preferred form of cleaner, cheaper energy for both personal and industrial use.

In a remark, Orji said Nigeria had the largest gas reserves in Africa and the ninth-largest globally with gas reserves of over 200 trillion cubic feet (tcf).

“The Petroleum Industry Act (PIA) provides the most significant progress for the gas sector in strengthening governance and providing fiscal frameworks for the sector’s growth.

“The gas utilisation plan should show the market-driven opportunities that would successfully translate the gas plans into sustainable economic development.

“For the gas utilisation policy to work, there is a compelling need for deliberate ambitious investment in its infrastructure. This includes specific connectivity across upstream facilities to processing, power plants and other end uses.

“The network code provides a framework through third-party access to resolve some of the connectivity issues but to a large extent, achieving the desired gas expansion will require an estimated $20 billion annually,” he said.

Orji said that a new concept analysis would be required to demonstrate the new approaches the government intends to embrace to deliver on the gas infrastructure.

He recommended that the Federal Government should develop and publish a detailed, realistic, coated and comprehensive gas policy with clear roles for the state, and non-state actors and timelines to track periodic progress.

Orji urged government to develop an industry-specific linkage between the integrated gas policy with Nigeria’s energy transition policies with a supporting action plan built on a robust monitoring and evaluation framework to track implementation.

He also called for a detailed plan to end gas flaring through a private sector-led commercialisation programme and pursue an open, competitive and transparent gas flare commercialisation programme,” he said.

Earlier, Dr Louis Ogbeifun, the Executive Director AFRITAL, had decried the fact that Nigeria is so rich in gas, but most of its citizens use firewood or coal for cooking with all its attendant health hazards.

“Over the years, Nigeria has behaved like the prodigal son by exporting mineral resources to earn dollars for consumption without savings, reinvestment in revenue, and employment generation ventures.

“These analogies reflect the contradiction of being a rich but poor nation. Rich because Nigeria is vastly rich and blessed with abundant minerals and energy resources but so poor that most citizens lack access to affordable electricity and other essential social and welfare benefits,” Ogbeifun said.

He said in a bid to reverse the highlighted negative narrations, achieve energy accessibility, affordability, and sustainability as a country that the 2021-2030 government legislation tagged the “Decade of Gas Action Plan (DofG)” was enunciated.

According to him, If the government’s intentions are effectively implemented, Nigeria is expected to witness a vast gas Infrastructural development during the period.

He said part of the stepping stones toward achieving the goals of DofG was the construction of the 614km Ajaokuta-Kaduna-Kano gas pipeline to transport about two billion cf of natural gas per day.

“This and other initiatives are also aimed at deepening the usage of LPG and CNG in the country and ultimately expanding the Autogas policy, which would reduce dependency on petrol as our mainstay for transportation in the long run.

“Before the AKKP project, Nigeria conceptualised the Nigeria-Morocco Gas Pipeline, as an extension of the West Africn Gas Pipeline, which would run through some African countries with a possible linkage to European market.

“This project was conceptualised in 2016. Outside the NLNG project, the Nigeria-Morocco Gas Pipeline project would meet the international focus even as the local expansion of the LPG and CNG are also being pursued.

“Let us hope that our leaders would cautiously navigate the rough edges of the coup in the Niger Republic to forestall the risks of sabotage of this project by international state and non-state actors,” he said.

Also speaking, Mr Aaron Sayne of NGRI, called for tackling of foreign exchange and policy issues, investment and access to finance on gas project while indigenous players should take place of the International Oil Companies.

Mrs Oluremi Komolafe, Director, Gas, Ministry of Petroleum Resource, said the ministry would remain was committed to energy transition.

Komolafe added that the NGEP was making way toward its realisation, while Compressed Natural Gas engines conversion was ongoing, noting that production would be spurred to meet demand. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged the Federal Government to fix bad roads and encourage private and modular refineries to enable affordable petroleum products.

NOGASA also called on the government to reduce Value Added Taxes on imported products, especially the Automotive Gasoline Oil (AGO), called diesel, to reduce cost of transporting petroleum products.

Mr Benneth Korie, President, NOGASA, while briefing newsmen on Wednesday in Abuja, said petroleum tankers spent days on the road while transporting products while flooding had ravaged many parts of the highways causing more delays.

Korie, while calling for quick intervention, said to facilitate mobility, he had expended N50 million in the rehabilitation of some sections of east west road to aid transportation of petroleum products.

He also emphasised that the AGO was important in building the nation’s economy, adding that the rising cost of the product would drastically affect hike of transportation on land and sea.

According to him, since deregulation is now in the pipeline, government should reduce taxes on imported products to give suppliers and consumers a palatable platform.

Korie decried the fall in naira to dollar in the exchange rate, saying this has contributed to the dependence of Nigeria in importation of petroleum and other commodities.

He, therefore, urged the Federal Government to, as a matter of urgency, declare a state of emergency on all Nigerian refineries to hasten repairs and improve naira value in the foreign exchange market.

Korie, while pledging to support the Federal Government to mitigate the effect of fuel subsidy removal, also promised to support government to tackle difficulties associated with the removal.

He said that the association was expecting the Federal Government to bring critical stakeholders together to design alternative sources of energy that could be evenly distributed across the country.

“NOGASA is ready to collaborate with the government anytime it is called upon and will deliver every assignment within its ambit of power,” he said.

He underscored the importance of exploring Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) to cushion the subsidy removal effect, adding that they have become competitive and viable options.

Korie reiterated the association’s readiness to partner with the Federal Government in terms of provision of manpower and gas facilities station nationwide, as well as the training and convention centres to achieve desired targets.

“The need for an increase in manpower is an urgent issue that bothers on economic stability, there is need for government to expedite action to achieve the desire goal.

“From the large sum of money realised from fuel subsidy removal, government could provide buses that use CNG and normal fossil oil, for fare reduction in order not to kill investments in fossil oil business.

“The National Gas Expansion Programme Committee should be called back to continue their good work of bringing sellers and suppliers of CNG equipment together, and boost quality assurance,” he said.

He also suggested that refineries should be overhauled under close government supervision and that the National Gas Expansion Programme Committee should continue its work to ensure sustainable growth.

He also called on the Federal Government to avoid marketers and suppliers slipping into the hands of Nigeria National Petroleum Company Limited ( NNPCL) as the company remained the major importers of petroleum products in the country.

According to him, government should be wary of slipping back into the subsidy regime because prices are still rising. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

By Emmanuella Anokam

The Ministry of Petroleum Resources has urged Ministries, Departments, and Agencies (MDAs) and Nigerians in general to convert their vehicles to Compressed Natural Gas (CNG) engines to cushion the effect of fuel subsidy removal.

Amb. Gabriel Aduda, the Ministry’s Permanent Secretary, made this known on Monday in Abuja, at the inauguration of its newly acquired two state-of-the-art 32-seater Coaster buses.

The buses were acquired to facilitate convenient staff commuting and official engagements.

The News Agency of Nigeria (NAN) reports that the inauguration was conducted by the Permanent Secretary, representing the Federal Government, the Head of the Civil Service of the Federation, Dr Folashade Yemi-Esan, and the management of the ministry.

Aduda said the buses would be converted from gasoline engines to CNG in line with the Federal Government’s energy transition commitment.

The Permanent Secretary, however, encouraged other MDAs to adopt the CNG initiative due to its economic advantages.

He underscored government’s dedication to alleviating the challenges faced by workers, particularly in the aftermath of subsidy removal.

Aduda recalled that the ministry received assistance in 2022 from the government, enabling the acquisition of the new buses.

He added that the present administration, under the leadership of President Bola Tinubu, held a steadfast commitment to staff welfare.

Aduda underscored the importance of maintaining the buses while handing over the keys to the union executives of the Ministry, urging them to ensure proper upkeep for extended service life.

He highlighted the emphasis placed on staff well-being within the context of the ongoing Federal Civil Service Strategy and Implementation Plan (FCSSIP).

Aduda, while describing the plan as a significant initiative supported by the Head of the Civil Service of the Federation, conveyed his gratitude for her exemplary human-centric leadership.

In a remark, Mrs Patricia Umo, Director, General Services, explained that the buses would serve as welfare provisions aimed at motivating employees to deliver effective service.

Also speaking, Mr Dipo Agboola, a union representative, expressed gratitude to the Permanent Secretary and his management team for their forward-thinking initiative.

Agboola announced that the buses would be converted to CNG within the next seven days, demonstrating the workforce’s appreciation and dedication to responsibilities. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma