The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun the 2022 mini-bid round process in accordance with the Petroleum Industry Act (PIA), 2021.
The mini-bid round is an opportunity to spur new oil exploration and drilling activities in the prospective deep waters offshore Nigeria.
Mr Gbenga Komolafe, Commission Chief Executive (CCE), NUPRC, made the announcement on behalf of the Federal Government in a statement on Tuesday in Abuja.
Komolafe said the mini-bid round was aimed at further development of the deep offshore acreages.
This, he said, would be held in accordance with the PIA with its enhanced legal and regulatory frameworks that sought to encourage new investors and investments into the next phase of exploration in this region.
“The mini-bid round will be managed by the NUPRC, in line with the provisions of the PIA, as the statutory body responsible for ensuring compliance with petroleum laws, regulations, and guidelines in the Nigerian upstream petroleum industry.
“The National Data Repository of NUPRC and our multi-client partners are delighted and ready to support the Mini Bid Round underpinned by high- quality datasets. The blocks have extensive 2D and 3D seismic data coverage, including multi-beam and analog data.
“Additionally, a remarkable quality, 3D MegaSurveyPlus reprocessed Pre-stack Time Migration (completed October 2022), with angle stacks and gathers is also available to prospective bidders.
“Links to all data can be accessed via the dedicated NUPRC portal.
“The mini-bid round is a market-driven programme and will follow a transparent and competitive procurement process designed to attract competent third-party investors globally that have the capability and proficiency in operating in deepwater environment,” he said.
He said the mini-bid round intended to build on the successes of the last bid round held in April 2007 during which a total of 45 blocks, drawn from the Inland Basins of Anambra, Benue and Chad; the Niger Delta Continental Shelf; Onshore Niger Delta and Deep Offshore were put on offer.
He recalled that the 2007 bid round was held under a different regulatory regime (the Petroleum Act, 1969) and generated massive interest and participation with its attended revenue which made the exercise a success.
In this 2022 mini-bid round, he said that seven offshore blocks covering an area of approximately 6,700 sq km in water depths of 1,150m to 3,100m were put on offer.
He said the success of the mini-bid round would ensure all stakeholders gain value from the country’s resources, whilst paying close attention to reduction in carbon emissions, as well as overall environmental, social and governance (ESG) considerations.
According to him, a dedicated programme portal (br.nuprc.gov.ng) for the mini-bid round has been published by the NUPRC.
He further said that a pre-bid conference has been scheduled for Jan. 16, 2023 at Eko Hotels and Suites, Lagos.
Komolafe said the conference would provide potential applicants with an opportunity to ask questions concerning the mini-bid round processes and requirements.
He said that interested companies would be invited to submit pre-qualification applications by Jan. 31, 2023.
Komolafe assured that the NUPRC would continue to provide further details and roadmap for this international competitive mini-bid round in due course.
“Interested applicants are by the publication invited to participate in the process,” he added. (NAN) (www.nannews.ng)
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sealed 14 filling stations in Oron, Akwa Ibom, for selling Premium Motor Spirit (PMS) above the regulated price.
Mr Joy Koro, the agency’s Team Lead, Distribution Systems Storage and Retailing Infrastructure, made the disclosure in an interview with the News Agency of Nigeria (NAN) at Oron on Saturday.
“We sealed 14 filling stations that were selling PMS between N400 per litre and 450 per litre at Oron, Akwa Ibom,” he said.
Koro said that the filling stations would be sanctioned.
He warned marketers to desist from selling petroleum products above the approved pump price.
“If you see any marketer selling above the regulated price, definitely that filling station will be shut.
“There is enough petroleum products for marketers to lift to their stations.
“The marketers know the approved pump price; if we carry out surveillance and we see them selling at the regulated price, we will not seal their filling stations,” he said. (NAN)(www.nannews.ng)
NNPC Ltd. Chief Finance Officer, Umar Ajiya and Indian Investors
NNPC Weekly: Kyari shops for more FDI in Nigeria’s Energy Sector
NNPC
By Edith Ike-Eboh and Emmanuel Afonne
Abuja, Sept. 1, 2022 (NAN) Malam Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has urged investors to take advantage of the enormous business potentials in the Nigerian energy sector to invest in the country.
Kyari, at the Nigerian – Indian Business Forum in Abuja, said the Petroleum Industry Act (PIA) had created an enabling environment for investors in the oil and gas sector of the economy.
Kyari represented by the company’s Chief Financial Officer (CFO), Umar Ajiya, noted that Nigeria’s natural gas reserves represented tremendous opportunity to achieve energy sufficiency.
He added that the company’s focus was on gas development, with the objective to energise Africa, including India.
Speaking earlier, the Indian High Commissioner to Nigeria H.E. Shri Balasubramanian, said that Nigeria was poised to play critical role in global affairs due to the current unfolding global realities, its immense natural resources as well as its policies.
He said that Nigeria has become India’s largest trading partner in Africa, adding that this was made possible by the goodwill of the people.
According to him, be it in trading or manufacturing, Indian companies have always found Nigeria a land of immense opportunities and that is the reason a sizeable number of Indians have made the country their second home.
The High Commissioner added that it was time to identify new areas of cooperation between the two countries.
In the meantime, NAPET Telecommunications Services, an ICT subsidiary company of NNPC Limited, was granted a telecommunication licence by the Nigerian Communications Commission (NCC).
By this feat, the company can now operate as fully registered telecommunications company in the country.
The certificate was presented to the Chairman of the company and NNPC Limited’s Chief Financial Officer (CFO), Mr Umar Ajiya in Abuja recently by the Company’s Managing Director, Sanusi Yerima.
Speaking at the event, the CFO said the company had all it takes to compete with other IT companies in the country now that it had become a legal entity, stressing that it had limitless potentials for growth.
On his part, NAPET Managing Director, Sanusi Yerima, said that the company was now in a position to deploy its super digital highway across the country and would provide quality services at competitive prices to individuals and corporate bodies.
Meanwhile, the NNPC Ltd. said it would pursue new and profitable energy ventures to deliver the country’s net zero transition by 2060.
The Group Chief Executive Officer of the company, Malam Mele Kyari, said this at the public launch of the Nigeria Energy Transition Plan by Vice President Yemi Osinbajo.
He said that the country had a growing population of young people who needed a stronger economy that was powered by reliable energy options.
He said: “This event is coming after the historic presidential unveiling of the NNPC Ltd. with a clear vision and a renewed commitment to upscaling NNPC’s relevance in the global energy market while ensuring energy security for our country.
“With NNPC Ltd. as a fully commercialised enterprise, Nigeria is well positioned to lead the African continent in a just and gradual energy transition”.
He said Nigeria and other African countries adopted 2060 as a suitable date for its net zero transition hinged on energy justice, adding that Nigeria had adopted gas as its transition fuel which would help to fund other renewable infrastructure.
He stated that: “NNPC recognises the activities of the oil and gas sector as a significant contributor to carbon emission and the consequent adverse impact on the climate.
“We have taken steps to decarbonise our operations by primarily extinguishing gas flares from our operations, pursuing carbon capture initiative and technology that support low carbon operations while focusing on gas as a transition fuel”.
He added: “NNPC is taking advantage of Nigeria’s huge natural gas reserves of over 200 trillion cubic feet of gas with the potential to grow to 600Tcf as more investment is expected due to the recent resolution of the production sharing contracts.
“The company is also taking advantage of the empowerment of the NNPC by the Petroleum Industry Act to take full responsibility for commercial operation of the Joint Venture assets”.
Kyari said that the company supports the government’s National Gas Expansion Programme which would deepen natural gas utilisation as an alternative transportation fuel.
He revealed that progress was being made in the construction of the Abuja-Kaduna-Kano, the Nigeria-Morocco and the Trans-Saharan gas pipelines.
The Nigeria Energy Transition Plan showcased the country’s pathway to achieving net-zero emissions by 2060 and its leadership role in enabling a just and equitable climate future for Africa, with the ultimate objective of mobilising the finance required to jumpstart implementation of the Plan.
Specifically, the global launch highlighted Nigeria’s commitment and ambition to achieve carbon neutrality while also ending energy poverty, which would lift 100 million people out of poverty, drive economic growth, and bring modern energy services to the entire population.
The drive for Nigeria’s energy transition is in line with Sustainable Development Goal 7 (SDG7) which advocates for “affordable, reliable, sustainable and modern energy for all” by 2030.
The SDG 7 targets three areas namely: access to energy (SDG 7.1), renewable energy (SDG7.2) and energy sufficiency (SDG7.3).
Nigeria is a signatory to both the COP26 agreement and the Paris Climate Accord which advocate for net zero emissions, but Africa’s biggest economy seeks a more equitable way to achieve it.
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President Buhari (middle) at the unveiling of NNPC Limited
NNPC Weekly: Making, understanding the new NNPC Ltd.
NNPC
By Edith Ike-Eboh and Emmanuel Afonne
Abuja, July 25, 2022 (NAN) It was a moment of joy for stakeholders in the oil and gas industry as President Muhammadu Buhari unveiled the new Nigerian National Petroleum Company Limited (NNPC Ltd.) on July 19.
Following the unveiling, the NNPC became fully commercialised and transited into a limited liability company.
There are some facts to know about the new NNPC limited.
It is important to note that as an offshoot of the Petroleum Industry Act (PIA) 2021 which was enacted to provide for the legal, governance, the regulatory and fiscal framework for the Nigerian Petroleum Industry, NNPC limited is expected to operate within the provisions of the Act.
The Chief Executive Officer (CEO) is no longer referred to as Group Managing Director (GMD), but now referred to as Group Chief Executive Officer or Group CEO.
The vision of the company is: to be the dynamic global energy company of choice and its mission is reliably delivering energy while continuously creating values for all stakeholders.
In line with Section 53(1) of the PIA 2021, with the transition, the government will no longer have control over the staffing of the NNPC limited.
Also Section 53 (5) of the Act stipulates that shares of the company held by the government are not transferable or mortgaged unless approved by the government and the National Economic Council.
With the NNPC Limited coming on board, the new company will no longer be concerned with issues of petrol price determination, and subsidy.
The new NNPC limited will no longer remit funds into the Federation Accounts Allocation Committee (FAAC).
Sector 54(9) provides that the initial capitalisation of the NNPC Limited will not be less than its financial requirements to effectively discharge its commercial duties and deal with its obligations and liabilities transferred to it.
The Federal Government will put an end to funding its projects as was obtainable since its inception.
According to the law, the company will run on a commercial basis in a profitable and efficient manner without recourse to government funds and shall declare dividends to shareholders and retain 20 per cent of profits as retained earnings, to grow its business.
Apart from profit-seeking, NNPC Limited is expected to operate above board by mandatorily making disclosures for every financial year.
Most importantly, the NNPC Limited will be ready for an Initial Public Offer (IPO) in the next 18 months.
Meanwhile, President Buhari said the New NNPC would guarantee energy security, free from institutional regulation.
Buhari said this at the unveiling of the Company which held at the State House, Abuja.
Sharing his vision for the petroleum industry reforms and the new corporate entity, the president said that his administration was keen on creating the right atmosphere to attract investment and grow the country’s economy.
Buhari also said that the NNPC Ltd. would play an important role in the global energy market.
“NNPC is mandated by the law to ensure Nigeria’s national energy security is guaranteed to support sustainable growth across other sectors of the economy as it delivers energy to the world.”
Describing NNPC as Africa’s largest national oil company by capitalization, he said that the company now had the impetus to become a self-governing entity free of government’s control.
“The provisions of the PIA 2021 have given the Nigerian petroleum industry a new impetus.
“An independent National Oil Company that will operate without relying on government funding and free from institutional regulations such as Treasury Single Account, Public Procurement and Fiscal Responsibility Acts.”
He, however, declared that NNPC Ltd. would henceforth conduct itself under the best international business practice in transparency, governance and commercial viability.
Speaking in a similar vein, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that the Buhari administration had been very clear from the onset about its desire to create a more conducive environment for the growth of the oil and gas industry.
Describing the unveiling of the new NNPC as a “remarkable milestone”, Sylva expressed optimism that the company would live up to its mandate.
“This is one of the magnanimous provisions of the PIA, which is being unveiled at this important occasion.
“The unveiling of NNPC Limited today is a new dawn in the quest for growth and development of the Nigerian oil and gas industry, opening new vintages for partnerships,” Sylva said.
President Muhammadu Buhari
In the meantime, NNPC Ltd. announced plans to aggressively grow its petroleum products retail outlets across the country by 174 per cent; that indicates an increase from the current 547 to 1,500 in the next six months.
This development was to keep to its new focus on commercial viability and profitability in the pursuit of its mandate to provide energy security for Nigeria.
Group Chief Executive Officer (GCEO) of NNPC Ltd., Malam Mele Kyari, made the announcement at the presidential unveiling of the new NNPC as provided by the PIA 2021.
“We have taken a strategic initiative to achieve our mandate of ensuring energy security for our country by rolling out a comprehensive expansion plan to grow our oil retail outlets from 547 to over 1,500 within the next six months,” Kyari said.
On the prospects of the new NNPC, he said that the Company was primed to succeed considering the array of talents, skills and professionals in its employ, adding:
“NNPC Limited is positioned to lead Africa’s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world.”
With the new commercial focus and corporate identity, NNPC would now be regulated in line with the provisions of the Companies and Allied Matters Act (CAMA).
Also in the week, the GCEO of NNPC Ltd., Malam Mele Kyari, called for concerted and urgent action as well as collaboration among the national oil companies of member countries of the African Petroleum Producers Organisation (APPO) to tackle the energy poverty in Africa.
Kyari gave the charge at the 2nd Meeting of Chief Executive Officers of the National Oil Companies of APPO Member Countries hosted by NNPC Ltd in Abuja.
According to him, the grinding energy poverty across the African continent does not call for long talks and Power-Point presentations anymore but concrete actions and collaborative efforts on the part of the national oil companies to make energy available for economic development.
“We must develop local capacity. They are all under enormous stress not to do business with us.
“We can’t continue to talk, we must act. Time is running out, I must confess. We must realise that we don’t have time for talking; we need to act, and act very quickly so that we can help our people out of poverty by creating prosperity.
He listed some areas that required urgent action and collaboration to include access to capital, demand for energy justice, and establishment of regional infrastructure.
Kyari stressed that a number of cross-country gas infrastructure were already springing up across the continent.
He explained that to put up regional infrastructure, as it was already happening in the Central Africa Pipeline Network, the NNPC Ltd. started the promotion of the Nigeria-Morocco Pipeline that would run through nine African countries.
Speaking earlier in his welcome address, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the Meeting of Chief Executive Officers of the National Oil Companies of APPO Member Countries was revived by the Ministerial Council of APPO.
Sylva said the revival was in recognition of the critical role the national oil companies needed to play in ensuring the survival of the oil and gas industry in Africa, in the face of the changing global energy landscape.
He said that the challenges posed by the global energy transition required a practical approach on the part of operators and policy makers to fashion out a unified action plan for the African continent.
“We require a completely new approach; an approach that is both inclusive and pragmatic.
“The policy makers as well as the operators have crucial roles to play in achieving this.
“We need you to tell us the practical challenges you face today and are likely to face in the years to come.
“These practical realities should constitute major inputs into the policy-making process of the political leadership.”
On his part, the Secretary-General of APPO, Dr Omar Farouk Ibrahim, also spoke on the steps being taken by the organisation to develop requisite local technology across member countries.
Still in the week under review, the Management of the NNPC Gas Marketing Company Limited (NGMC) pledged to remain focused on the implementation of its core mandates while taking into consideration concerns of key stakeholders.
The Managing Director of NGMC, Mr Justin Ezeala made the commitment at the headquarters of the company in Abuja during an oversight visit to the company by the House of Representatives Committee on Gas Resources.
Ezeala assured that NGMC would work assiduously towards addressing some of the issues raised by the committee regarding host community development.
“We have taken note of all your concerns and we will address them.
“We want to assure you that you don’t need to invite us to report to you, it is our duty to report to you as part of our commitment to accountability.”
Speaking earlier on the objective of the oversight visit, Chairman of the Committee, Rep. Nicolas Mutu, said the visit was to ascertain the progress made in facilitating gas penetration across the country to boost economic development.
Mutu said the committee was prepared to use every legislative means to encourage gas penetration in Nigeria and would like to use the visit to learn about NGML’s plan for LPG distribution.
He expressed delight and commended the management and staff of NGMC for the warm reception accorded members of the committee.
AKK Gas Pipeline Project
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Abuja, July 10, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started the new week with an assurance to its investors and stakeholders that the days of complacency were over.
The assurance came following the repositioning of the company to focus on profitability and value addition to its shareholders.
The GMD/CEO of the NNPC, Malam Mele Kyari, gave the assurance at the opening ceremony of the 2022 edition of the Nigerian Oil and Gas (NOG) Conference and Exhibition which held at the International Conference Centre, Abuja.
Declaring the conference open, Kyari who was represented by NNPC Chief Financial Officer, Mr Umar Ajiya, called on operators in the nation’s oil and gas industry to focus more on gas development.
Kyari said emphasis should be on gas-to-power, gas-to-industry and gas-for-export projects and activities.
He explained that with the reality of the global energy transition and Nigeria’s commitment to use gas as its transition fuel, value now lies in gas development.
The NNPC GMD/CEO also said that the Petroleum Industry Act (PIA) had also provided ample incentives for investors in the gas sector.
Kyari urged delegates and exhibitors to use the opportunity provided by the conference to network and brainstorm on solutions to the challenges brought about by the global energy transition and the Russian-Ukraine war.
He also urged them to find better ways to maximise the potentials inherent in the nation’s abundant gas resources.
Meanwhile, the NNPC Ltd. within the week called on its partners and operators in the oil and gas industry to beef up investment in order to close the yawning energy supply gap in the country.
The GMD/CEO of NNPC Ltd., Malam Mele Kyari, made the call at the NNPC Spotlight Session of the just concluded 21st Nigerian Oil and Gas Conference and Exhibition which held at the International Conference Centre, Abuja.
Speaking at the conference with theme, “Funding the Nigerian Energy Mix for Sustainable Economic Growth”, Kyari said there was a huge gap in the Nigerian energy market with 80 per cent of citizens lacking access to clean cooking gas and 48 per cent lacking access to electricity.
“That gap is huge and we cannot fill it with the scale of investment we are doing in the renewable.
“This is critical for us and we will continue to emphasise that our key role is to be able to bring gas and make it available to everyone.
“The fact that energy transition is unfolding to everyone means we must invest in it and we are seeing a great resistance across the globe on funding fossil fuel until the Ukrainian challenge came up.”
According to Kyari, NNPC is currently engaging with partners and multilateral institutions that are involved in energy transition to find ways of resetting financing strategies in a manner that will enable energy companies and institutions to collaborate for investment in order to eradicate energy poverty.
On the new role of NNPC as a limited liability company, Kyari said that NNPC had been positioned as the company with the largest capital base in Africa to serve as a reliable partner to all willing investors.
“In this regard, NNPC Ltd. offers a lineup of investment opportunities that guarantee positive returns across the energy value chain.
“On July 19, 2022, Mr President will unveil the new NNPC Ltd. to the world. I am inviting you to that epoch-making event in the history of our company,” he said.
Also speaking at the conference, Chairman of Board of Directors, NNPC Ltd., Sen. Margery Chuba-Okadigbo said that the mandate of the new NNPC was clearly spelt out in the Petroleum Industry Act (PIA) 2021.
According to her, the PIA is a testament to the Federal Government’s commitment to put in place the right environment for the advancement and development of oil and gas industry.
“NNPC limited is a commercially oriented and profit driven company which creates opportunities for improved indigenous participation.
“The new entity presents opportunities for enhanced revenue and returns on investment.”
She stated that the effective implementation of the PIA would stimulate sustainable social impact through the creation of quality jobs for the teeming youth and consequently change the social perception of the industry.
In the meantime, the Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Mr Bala Wunti, disclosed that Nigeria needed about 800 billion dollar-worth of investments to meet the crude oil production target of four million barrels per day.
Wunti made the disclosure in Abuja during a panel session at the just concluded 21st Nigerian Oil and Gas Conference and Exhibition with the theme, “Funding the Nigerian Energy Mix for Sustainable Economic Growth”.
He said the money must be channeled into exploration and production, midstream conversion capability and requisite downstream infrastructure.
Speaking on the theme, “Energy Transition: Making Nigeria the Preferred Africa Energy Investment Hub”, the NAPIMS boss said Nigeria had abundant crude oil and natural gas resources which can only translate to value for the country if properly harnessed and produced for the benefit of the people.
He said that the time had come for the country to look inwards and develop its huge oil and gas potentials by restructuring the industry to attract the much-needed investments across the oil and gas value chain that would create wealth and prosperity for the people.
He called for stronger partnership and collaboration among stakeholders in the oil and gas sector, particularly in the area of finance, project execution, and technology development.
Giving a breakdown of the investments required, Wunti said that the country needed about 400 billion dollars in the upstream and midstream segments of the value chain, while another 250 billion dollars investment would be required in the downstream sector across the country in order to ensure energy sufficiency.
International oil companies (IOCs) operating in Nigeria including Shell, Chevron, TotalEnergies, and ExxonMobil in the week under review expressed their frustration over the escalating oil losses in the Niger Delta due to the activities of oil thieves.
Speaking at the industry leaders’ panel session at the 2022 edition of the Nigerian Oil and Gas Conference and Exhibition, the CEOs said the unrelenting menace of crude oil theft had led to a decline of the nation’s daily oil production from 1.8million barrels per day in the last three years to just a little over one million barrel per day.
Firing the first salvo on the topic: “The Future of Nigeria’s Energy Sector in the PIA Era”, the Chairman of Shell Companies in Nigeria and Managing Director of Shell Petroleum Development Company, Mr Osagie Okunbor, warned that the new marginal field licensees that would operate Oil Mining Leases (OMLs) 53 and 57 may experience difficulties evacuating their crude oil.
Okunbor said that two of the most important oil pipelines in the country were currently shut down with hundreds of thousands of barrels a day shut-in.
“In three to five years, we were brought down from 1.8 million barrels. So it is an existential issue for us.
“We need to address it; if we do not address it, we cannot do all the new oil development issues, and that will continue to occur.
“But what is really going to move the needle for us in terms of bridging this gap of hundreds of thousands of barrels a day is solving the evacuation problem.”
He tasked stakeholders and participants at the conference to put heads together to seek ways to deal with the challenge.
Managing Director of Chevron Nigeria Limited and Chairman of the Oil Producers Trade Section (OPTS), Mr Rick Kennedy, said while the industry stakeholders collaborate to fine-tune the Petroleum Industry Act (PIA) in a manner that offers encouragement to all players, it was also imperative for the oil theft challenge to be addressed by all parties.
On his part, the Executive Director at ExxonMobil Nigeria, Mr Oladotun Isiaka, who represented the Managing Director, Mr Richard Laing, also said stakeholders should work together to tackle the oil theft challenge as it was impacting negatively on investments in the upstream sector.
The Managing Director of TotalEnergies E&P Nigeria Limited, Mr Mike Sangster, called for further dialogue between the industry stakeholders and the authorities on the PIA.
The TotalEnergies boss called for the constitution of another working group made up of persons from the authorities and the industry in order to find ways to address some of the issues.
Crude Oil theft in Nigeria
Still in the week under review, the federal government made a payment of 100 million dollars as part of Nigeria’s counterpart fund in the Presidential Power Initiative (PPI) undertaken by German power firm, Siemens.
The development was aimed at solving the electricity challenge usually caused by the collapse of grid in the country.
Chairman, Senate Committee on Power, Sen. Gabriel Suswan disclosed this at the NOG conference during his presentation on the topic:” Developing the Power Sector Policy for an Emerging Economy”.
He said the Minister of Power, Mr Abubakar Aliyu, revealed that to the Senate committee during a meeting recently.
Sen. Suswan added that with this development, power supply would increase to about 7000 megawatts.
“The government has paid 100 million dollars for the project so that someone can quickly activate that contract, so that the power deficit which has militated against proper servicing of the industry will come to an end.”
Amidst the current global posture on energy shift to renewables to reduce carbon footprint, the NNPC Ltd. said that there was need for Nigeria to adopt homegrown solutions to the nation’s energy poverty challenge.
The GMD/CEO of NNPC Ltd., Malam Mele Kyari, stated this in an address at a plenary session on “Oil and Gas Industry in Nigeria and the Quest for Energy Transition” at the 2022 National Energy Summit held in Abuja.
Kyari was represented at the event organised by the Energy Commission of Nigeria in collaboration with the International Energy Charter (IEC), Brussels, Belgium and the Economic Community of West African States (ECOWAS) by the NNPC Group General Manager, Corporate Planning and Strategy, Mrs Oritsemeyiwa Eyesan.
He contended that given present realities in the global energy community, it had become imperative for the country to focus more on in-country initiatives to harness its abundant natural resources to bridge existing energy gap.
“NNPC is working on floating various LNG projects that will harness the nation’s natural resources to grow the domestic gas market in line with Federal Government’s aspiration to meet energy needs of Nigerians.
“Prior to the technical transition to a limited liability company on July 1, 2022, NNPC has proactively set up a world class Research, Technology and Innovation (RTI) Division as part of the efforts to become a global energy company of choice.
“This is because we recognise that innovation remains a core tool in actualising energy transition aspiration.”
Also speaking at the event, the General Manager, Gas and Renewable Energy of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Dr Ola Agbaje, pointed out that virtual gas transportation was gaining traction in Nigeria.
He described the NNPC’s ongoing 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline as a “Transformational Project”.
Earlier in her presentation on “2020/2021 Energy Investment Risk Assessment Reports” the Official of the International Energy Charter (IEC), Ishita Pant, applauded the numerous gas expansion programmes and reforms in the nation’s oil and gas sector, especially, the PIA.
The session was moderated by a former Group Executive Director of the NNPC and Partner, Gulf of Guinea Petroleum Consulting, Mr Onochie Anyaoku.
AKK Gas Pipeline Project
In another development, an oil and gas sector pressure group, Women in PENGASSAN called for stiffer punishment for domestic and gender-based violence offenders to serve as deterrence.
The call became important following the increasing wave of domestic and gender-based violence across the country.
The group made the call at the grand finale of its nationwide advocacy programme tagged: “PENGASSAN Women Say No to Domestic/Gender-Based Violence” which held in Abuja.
Speaking during an awareness march from the Unity Fountain to the Ministry of Women Affairs in Abuja, the Chairperson of the group, Faith Usoro, said tougher punishment for perpetrators of domestic and gender-based violence was the only way to stem the tide of the crime as desperate situations required desperate remedies.
Receiving the group on behalf of the Minister of Women Affairs, Mrs Pauline Tallen, the Director, Economic Services, of the Ministry, Mr Idris Mohammed, said the Ministry was working with stakeholders to enact more laws to protect the rights of women.
Tallen said that even the Bills that were earlier thrown out by the legislature would be revisited.
The Minister listed some of the measures put in place by the ministry to curb domestic and gender-based violence to include, “one, launch of sexual offenders’ register aimed at naming and shaming.
“We have a contact line +234-8031230651 and +234-7053576528 for receiving complains.”
On a final note, the international oil community lost Mohammad Barkindo, the Secretary General of the Organisation of Petroleum Exporting Countries (OPEC).
Barkindo whose tenure commenced in 2016 and was to end this month, was born on April 20, 1959 in Yola, Adamawa State.
He held a B.Sc. (Hons) in Political Science, Ahmadu Bello University, Zaria, Kaduna State and Post Graduate Diploma in Petroleum Economics, in Oxford, United Kingdom.
He also held an MBA in Finance and Banking, Washington University, in the United States.
Barkindo who was a Fellow, George Mason University, Fairfax VA, U.S., also held a Doctorate Degree in Science (Honoris Causa) of the Federal University of Technology, Yola.
He began his working career as a Special Assistant to the Minister of Petroleum Resources and Head, Office of the Chairman of the Board of the Nigerian National Petroleum Corporation, NNPC Board between 1986 and 1989.
He also served in various capacities in the NNPC Group, spanning some 24 years, namely:
Head, International Investments, Investment Division, NNPC Headquarters (1992)
– Head, International Trade, NNPC London
– President, Duke Oil Inc.
– Chairman NAPOIL (1993–94)
– General Manager, NNPC London Office (1993–97)
– Managing Director/Chief Executive, HYSON/CALSON, an international trading arm of the NNPC (1998–2003)
– Group General Manager Investments, NNPC Headquarters (2003–04)
Between 2007 and 2009, he served as Coordinator, Special Projects, NNPC, with the mandate to oversee all Federal Government projects vested in the NNPC.
Barkindo participated as a member of the Oil and Gas Industry Reform Implementation Committee (OGIC) that produced the original draft of the Petroleum Industrial Bill (2008) and led the Transformation Programme of the NNPC as enshrined in the Oil and Gas Industry Reform Implementation Committee Report (2008).
Between January 2009 and April 2010, Barkindo served as Group Managing Director of the NNPC.
Before becoming the Secretary General of OPEC, he served at various capacities in the organisation between 1986 and 2010.
He was a Nigerian Delegate to OPEC Ministerial Conferences between 1993 and 2008 and served as Nigeria’s National Representative on OPEC’s Economic Commission Board (ECB).
Between January and December 2006, he served as Acting OPEC Secretary General, before chairing the ECB from 2009 to 2010.
He became Nigeria’s Governor for OPEC and served as Adhoc OPEC Governor at various times, as well as Chairman OPEC Task Force of the 15th Session of the United Nations Commission on Sustainable Development (UNCSD).
Also on the international energy scene, he spearheaded the OPEC/European Union dialogue on Energy Markets, Taxation and Environment.
He was a key player in the first Long Term Strategy (LTS) at OPEC, and a delegate to the African Petroleum Producers Association (APPA) conference in Algiers, Algeria, in 1986.
He was also a delegate to the African Petroleum Producers Association (APPA) Ministerial Conferences from 1987 to 2010.
The late Barkindo was a pioneer member of the International Energy Forum (IEF), Riyadh, Saudi Arabia.
He helped to facilitate and consolidate the OPEC/non-OPEC cooperation and dialogue on climate change and led Nigeria’s technical delegations to the climate change negotiations that produced the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol to the UNFCCC.
It is worthy to note that he was the only Nigerian Delegate to attend all 15 Conferences of the Parties to the UNFCCC from Conference of the Parties, COP1 in Berlin 1995 to COP15 in Copenhagen 2010.
In 2002, he served as Coordinator, Group of 77 and China at UNFCCC, and was elected Vice-President of the Conference of Parties at COP13 of the UNFCCC in Bali, Indonesia, in December 2007.
He was re-elected Vice-President variously at COP14 in Poznan, Poland, in December 2008 and at COP15 in Copenhagen, Denmark, in December 2009.
Barkindo participated at the UNFCCC COP22 (Marrakesh 2016), COP23 (Bonn 2017) and COP24 (Katowice 2018).
His hobbies included reading, charity work, the environment and soccer.
The Nigerian oil and gas industry, and indeed the entire global energy community missed his invaluable contributions to the growth of the industry.
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Abuja, July 4, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its weekly activities with a resolve to quickly end the incessant queues at various filling stations in the Federal Capital Territory (FCT), Abuja.
By this resolution, the company in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stepped up the supply of Premium Motor Spirit (PMS) to the FCT from 70 to 140 trucks to combat the lingering fuel queues.
Speaking to newsmen during an inspection tour of filling stations in Abuja, NNPC’s Group Executive Director, Downstream, Mr Yemi Adetunji, explained that there were enough petrol in the nation’s strategic reserve to last 32 days.
“We have 1.9billion litres of PMS that can last for 32 day. NNPC is making every effort to ensure energy security for the country.
“We have sorted out Lagos. We are working with all relevant stakeholders to bring the situation in Abuja under control; normalcy will be restored in the next few days.”
Speaking earlier, the CEO of the NMDPRA, Mr Farouk Ahmed, said that the improvement in the supply of products from an average of 70 to 140 trucks was made possible by the Presidential approval of a ₦10 freight rate discount increase to petroleum products transporters as part of solutions to the fuel supply challenge.
He charged marketers to play by the rules as NMDPRA would not hesitate to sanction anyone found to be involved in underhand practices.
“We are doing everything to bring the situation to normal. We also want to state that there is no increase in the pump price of PMS, and any such sharp practice will be sanctioned accordingly by the Authority,” he said.
The tour of the filling stations was to monitor developments and ensure compliance.
NMDPRA and NNPC officials during inspection of filling stations in Abuja
In another development, Major stakeholders in the downstream sector of the oil and gas industry have suggested ways to mitigate the continuous rise in prices of diesel and cooking gas in Nigeria.
Among the stakeholders who spoke at a public hearing organised by the House of Representatives Joint Committees on Downstream and Gas Resources in Abuja were the Chief Executive Officer of the NMDPRA, Mr Farouk Ahmed and the Group Managing Director/CEO of NNPC Ltd, Malam Mele Kyari.
Leaders of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Independent Petroleum Marketers Association Of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Liquefied petroleum gas (LPG) Gas Marketers Association, among others, were also in attendance.
Fielding questions from members of the committee, Ahmed said that the current geopolitical crisis in Ukraine and Russia had affected the global crude oil supply resulting in the increase of petroleum products prices across the globe.
Ahmed said that the rise in the prices of petroleum products was a global phenomenon and not a local problem peculiar to Nigeria.
He added that the landing cost of petroleum product was also a major factor affecting the price of petroleum products.
“We need to see what can be done to alleviate the suffering of the people.
“If our refineries come back on stream and make foreign exchange available at the official rate of N400 per dollar, things will definitely improve.
“We also need to address the issue of vandalism,” he said.
On his part, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the only way to tackle the rising price of diesel and cooking gas was to increase the production of crude oil.
NNPC GMD Malam Mele Kyari
Kyari said that acts of vandalism of oil facilities have been responsible for the decline in production which in turn was responsible for the unavailability of foreign exchange.
He disclosed that 27,000 barrels were lost in a recent attack on one of the company’s facilities.
According to him, besides the Russia-Ukraine war which is affecting the supply of products across the world, most major oil companies are also shutting down in keeping with global emphasis on the shift from fossil fuels over environmental concerns.
“No one can guarantee stability of petroleum products supply; the world has never seen this kind of uncertainty. Today, countries are stockpiling products.
“Shortly before COVID-19, the world was already facing shortfall of 3 million barrel of supply of oil but with the ongoing intervention, by the end of July we will restore production to a level that is reasonable.”
The Chairman, House Committee on Downstream, Rep. Abdullahi Gaya, said that there was need to find solution to the high cost of diesel and cooking gas in order to alleviate the hardship on Nigerians.
Some of the lawmakers said that although Kyari and Ahmed candidly presented the worrisome situation the industry was faced with, they, nevertheless unanimously expressed confidence in their ability to bring the situation under control.
The stakeholders present at the hearing include the Independent marketers, suggested a short, medium and long term solutions to combat the challenges.
They also pledged to work with the NNPC and the regulatory agency to redress the situation.
Meanwhile, the Management of NNPC Ltd. sensitised members of staff to the challenges and opportunities inherent in the transition from a corporation to a limited liability company.
This was in continuation of its stakeholders’ engagement to achieve a smooth transition.
The NNPC GMD/CEO, Kyari, said at a town hall meeting which held at the NNPC Towers, that it was imperative for all staff to embrace the change with courage and look beyond the temporary discomfort to the huge opportunities that lie ahead of the new NNPC.
He commended President Muhammadu Buhari for the courage to have signed the Petroleum Industry Act (PIA) into law, pointing out that the lack of effective regulatory framework and unbridled government interference were responsible for NNPC’s losses in the past.
“NNPC is now free of burden.
“Nigerians are looking up to us, they expect NNPC to lead the way in making profit and adding value for the benefit of the over 200 million stakeholders.”
Kyari said that given the volume of the Company’s assets that was signed and transferred officially on July 1, 2022, by the Ministers of Petroleum Resources and Finance respectively, the new NNPC would be the most capitalised company in Africa and would be poised to announce its first Initial Public Offer (IPO) in the next three years.
He also informed that the company’s financial statement for the year 2021 would be better than that of year 2020 when NNPC reported a profit after tax of 287 billion naira.
In her remarks, the Chairman of the NNPC Ltd., Sen. Margery Chuba-Okadigbo, assured of the Board’s continuous support towards the realisation of the goals of the new NNPC Ltd., while encouraging members of staff to imbibe the concepts of dynamism and creativity required for global competitiveness.
She said that deducing from her experience at the helm of the NNPC Board, she had conviction to endorse the GMD’s policies on transparency and accountability, noting that the company as envisioned by the PIA can only achieve its objectives through firm commitment to excellence on the part of the entire workforce.
Also in the week under review, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concluded the marginal oil fields bid rounds kick-started in the year 2020 with the award of Petroleum Prospecting Licences (PPLs) to 161 successful companies.
The commission also officially unveiled the Host Communities Development Regulations and model PPLs.
Speaking at the event in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that the presentation of the Licences was part of the implementation of the PIA 2021.
He also noted that the category was being handled for the first time.
The minister who commended the management and staff of the NUPRC for ensuring the successful completion of the process, described the conclusion of the process as a giant milestone for the administration.
“The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021.
“As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.
“It is my strong belief that the awardees will take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.
“The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations,” Sylva said.
Chief Timipre Sylva, Minister of State for Petroleum
He added that the development would boost activities in the oil and gas sector, increase production output and create additional employment opportunities for Nigerians.
On his part, the Chief Executive Officer of NUPRC, Mr Gbenga Komolafe, said that the Marginal Field Bid Round was one of the major tasks inherited by the commission on its inauguration in 2021.
He listed some of the constraints that caused the delay in the conclusion of the exercise to include, the interruption brought about by the COVID-19 pandemic, partial payment of Signature Bonuses by some awardees, and the unwillingness of some co-awardees to work together in forming SPVs for field development.
Recounting the history of the marginal field’s award initiative, Komolafe said that the process which began in 1999 was borne out of the need to entrench the indigenisation policy of the Federal Government in the upstream sector.
He also said that the aim was to boost local content, stressing that since its inception, a total of 30 fields had been awarded with 17 currently producing.
He disclosed that the 2020 Marginal Field Bid Round exercise raked in revenue of about 200 million naira and 7 million dollars into the Federal Government coffers.
Komolafe added that the conclusion of the 2020 Marginal Fields Bid Round brought to an end the era of Marginal Field awards as stipulated by the PIA.
“Section 94 (9) of the Act states that no new marginal field shall be declared under this Act.
“Accordingly, the minister shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act.”
Mr Gbenga Komolafe
He urged the winner of the marginal fields to take advantage of the current market realities and quickly bring their fields to production, stressing that Nigeria was not benefiting much from the upswing in crude oil prices because of production disruptions occasioned by sabotage, theft, and other operational challenges.
A total of 57 marginal fields were presented in the 2020 bid round out of which 41 were fully paid for and 37 fields were issued with the PPL, having satisfied all conditions for award.
Out of the 665 firms that expressed interest in the exercise, 161 emerged as potential awardees.
Some of the successful companies that received their licences include: Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd., Sigmund Oil Field Ltd., and Shafa Exploration and Production Company Ltd., among others.
Still in the week, NNPC Ltd. said it was committed to fast-tracking efforts to identify new gas resources and develop existing ones amidst current global yearning for cleaner fuels.
NNPC also said it was making efforts to identify new gas resources to boost revenues for investment in other sectors of the economy as part of its preparation for the global energy transition.
The NNPC GMD/CEO, Malam Mele Kyari, stated this in a keynote address at the First E&P’s 10th Year Anniversary event which held in Lagos.
The GMD, who was represented virtually by NNPC’s Chief Financial Officer, Mr Umar Ajiya, delivered the address with the theme, “Scarcity in Abundance: How Gas can Enable Energy Access in Nigeria and Africa”.
He said that though Nigeria remains determined to achieve net-zero carbon emission by 2060, there was absolute need to harness the country’s abundant hydrocarbon resources to actualise that objective.
He emphasised that with the enactment of the PIA, and the introduction of such initiatives as the Decade of Gas and the Gas Transportation Network Code, Nigeria sought to open up robust and quick business opportunities for both indigenous and foreign investors in the gas sector.
“I make bold to say that harnessing our abundant resources remains Nigeria’s major pathway towards leveraging gas, the least carbon-emitting fossil fuel, as a transition fuel.
“To this end, massive gas development efforts are ongoing, including the construction of a 614km gas pipeline which is aimed at enabling gas transportation to the North of the country and ultimately beyond Nigeria.”
Kyari also congratulated the Board, Management and Staff of First E&P on the 10th anniversary of the company which he described as “historic milestone”.
Abuja, June 27, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started it activities for the new week with words of commendation from the Nigeria Extractive Industries Transparency Initiative (NEITI).
The Executive Secretary of NEITI, Dr Ogbonnaya Orji, stated at the first National Extractives Dialogue (NED) held in Abuja, that the NNPC Ltd. was now compliant with transparency regulations and that they had become more responsive to audit queries.
The event was co-hosted by NEITI and Spaces for Change (S4C), an indigenous civil society organisation, with support of the Ford Foundation.
It was designed to provide stakeholders in the extractive industry a platform to discuss the issues of contract transparency, extractive resources benefits sharing and energy transition in West Africa.
In his opening remarks, Orji said NIETI was proud to see that some of the legal reforms it clamoured for were now being implemented in the oil and gas industry with NNPC now more compliant than ever.
“In Nigeria, we have clamoured for reforms; we are proud to witness some of the legal reforms we clamoured for now taking place.”
He stated that the involvement of Spaces for Change in the programme was in line with NEITI’s objective of deepening engagements with credible civil society organisations.
Speaking at the event, the GMD/CEO of NNPC Ltd, Malam Mele Kyari, said that the company had done so much to keep to the tenets of transparency in every area of its operations.
Kyari, who was represented by the Group General Manager, Governance, Risk & Compliance, Mr Chris Akamiro, said NNPC now implements audit recommendations and was keen on expanding the frontiers of its engagement, by reporting information on upstream costs and revenues.
He said that the ongoing transition to a limited liability company was aimed at repositioning the Company in line with global best practices and in preparation for energy transition.
Kyari stated that the natural resources from the extractive industries were only beneficial when they were extracted in a responsible and cost-effective manner, and the revenues accruing were promptly remitted to the coffers of government.
He said that the low performance of the industry in terms of profitability and contribution to the economy was due to opacity which he said prompted the call for action by stakeholders on the need for a more transparent and accountable industry.
In the meantime, the NNPC Greenfield Refinery Ltd. a subsidiary of the NNPC Ltd. revved up engagement with a Chinese firm, Sedin Engineering to set up a 100,000 barrel per stream day co-located refinery at the complex of the Warri Refining and Petrochemical Company (WRPC), Ekpan, Delta State.
The move was part of efforts by the NNPC to boost the nation’s refining capacity with a view to exiting importation and turning Nigeria into a net exporter of petroleum products.
Speaking at the meeting, the Group Executive Director, Refining and Petrochemicals, Mr Mustapha Yakubu, disclosed that engagement with Sedin Engineering had been on for over two years and that the original plan was for the company to establish a number of brownfield refineries across the country.
He said that the original plan had been modified and streamlined over the series of previous engagements to arrive at the establishment of a single 100,000bpsd at the WRPC complex.
He stressed that the firm had commenced feasibility study and that it was the hope of Management to conclude all necessary negotiations speedily so that the project can take off.
In a presentation at the meeting, the Manager, Technical, NGRL, Mr Samuel Ajayi, stated that apart from the proposed co-located refinery by Sedin Engineering, NGRL was working in partnership with other companies to set up two other co-located refineries.
Ajayi said one would be located at WRPC, while the other would be located at the Port Harcourt Refining Company complex in Port Harcourt, Rivers State.
He also said that there would be four condensate refineries and a modular refinery.
The Sedin Engineering Team was represented by Mr Shagaya, Mr Ma and Ambassador Rasak Lawal, Chairman of Ram Energy.
Also in the week, the GMD/CEO, NNPC, Malam Mele Kyari, reassured the leaderships of the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) that no staff of the company would lose their job on account of the transition.
Kyari gave the assurance at a Transition Consultation Engagement with the national leaders of the unions led by the President of PENGASSAN, Mr Festus Osifo, and President of NUPENG, Mr William Akporeha, which held at the NNPC Towers, Abuja.
This development came ahead of the July 1 date for the commencement of operations as a limited liability company.
According to Kyari, consultations with labour Union is a continuous process as they are critical stakeholders whose input is required to achieve the desired objective of establishing a commercially focused limited liability company with a top-class governance structure.
Kyari said efficient regulatory framework that guarantees energy security, creates prosperity for the common good and benefit of all and sundry.
“The law under new transition guarantees that no one will lose his entitlement, it guarantees a fluid industry to create value chain and add value system that will benefit others more than oneself.”
He informed the labour leaders that the most significant aspect of the NNPC transition was that power should be returned to the workers such that no one can single-handedly take any major decision.
He added that it placed workers and other stakeholders at the centre of the decision-making process for the common good.
In his response, the President of PENGASSAN, Mr Festus Osifo, commended Kyari for piloting the NNPC transition with a human face.
He expressed satisfaction that priority was being given to issues of employees’ happiness and remuneration in the transition process, noting that they were key to the organisation’s output.
Osifo also pledged the total support of PENGASSAN to the NNPC transition process.
“We will partner with you GMD; we are hundred per cent prepared to partner with you to ensure that the transition goes smoothly.
“We have made that commitment that we are going to walk side by side to ensure that all the wonderful and lofty visions that are behind the laws of the PIA, are well delivered.”
Speaking in similar vein, the President of NUPENG, Comrade William Akporeha, expressed total confidence in the capacity of Kyari to give due consideration to matters that were germane to workers’ wellbeing and welfare having been a former union leader himself.
Akporeha also pledged the full support and commitment of NUPENG to the NNPC transition and for all the steps being taken towards guaranteeing energy security to Nigerians.
Still in the week under review, the NNPC Ltd. again applauded the security agencies for their respective roles in ensuring the smooth business operations of the company.
The General Manager, Group Security Department, Abba Mohamed, gave the commendation at the 2nd Quarter 2022 Security Stakeholders’ Meeting organised by the Group Security Department (GSD) of the Company at the NNPC Towers, Abuja.
In his opening remark, Mohamed expressed appreciation to the security agencies for all the efforts made to secure NNPC’s businesses, personnel and facilities.
He said that NNPC cannot do it alone and would continuously require the assistance and collaboration of the security agencies and urged them to continue to support the company, especially at this time of its transition.
He noted that there had been noticeable improvement in the security around NNPC and its businesses since the inception of the quarterly meetings with security agencies.
In attendance at the meeting were representatives of the Nigerian Police Force, the Nigerian Army, Department of State Services, Nigeria Security and Civil Defence Corps, National Drug Law Enforcement Agency, Central Bank of Nigeria’s Security Department and Federal Fire Service.
OPEC Secretary General, Dr Mohammed Barkindo was honoured with the Republic of Austria’s prestigious silver decoration in acknowledgement of his achievements during his two terms as Secretary-General.
The honour which involves a decoration with sash was conferred on Barkindo by the Austrian President, Alexander Van der Bellen, for enhancing the bilateral ties between the Organisation, its host country and the City of Vienna.
The decoration was presented during a visit by the Secretary-General to HE Alexander Schallenberg, Austria’s Federal Minister of European and International Affairs.
The decoration is bestowed on citizens and foreigners who demonstrate outstanding merits and achieve exceptional accomplishments.
It is known in German as ‘das Grosse Silberne Ehrenzeichen am Bande für Verdienste um die Republik Österreich’.
Minister Schallenberg emphasised OPEC’s special position globally as well as in the international community in Vienna.
The Minister also commended the Secretary General on the role he played and the contributions he made to strengthening relations between Austria and OPEC.
In return, the Secretary-General expressed deep appreciation for the decoration and thanked the Austrian Government and people for their continuous support over the last six years, while highlighting Austria’s role as a host in this successful period of the organisation’s history.
“Austria is and will continue to be my second home,” he said.
Barkindo stated that “it is the honour of a lifetime to receive such a decoration.
“This special recognition is bestowed on all Member Countries of the Organisation and the gallant staff of the OPEC Secretariat in Vienna”.
OPEC enjoyed close relations with Austria since it moved its headquarters to Vienna in 1965, five years after the founding of the Organisation.
Meanwhile, the quest by the NNPC Limited to revive the nation’s refining capacity through the rehabilitation of the existing refineries received a boost with the award of the contract for the rehabilitation of the Warri Refinery to Daewoo Nigeria Ltd.
There was also a promise to get the plant back on stream before the end of 2023.
The Managing Director of the Warri Refining and Petrochemical Company (WRPC), Mr Babatunde Bakare, disclosed this at the Quick–Fix Maintenance Service Contract Award Signing ceremony held in Abuja.
He said that the timeline for the completion of Areas 1 and 2 was 12 months from the commencement of work, adding that the refinery would operate at sixty per cent of its installed capacity after the completion of the Fluid Catalytic Cracking Unit, FCC.
Speaking earlier, the NNPC Ltd. GMD, Malam Mele Kyari, tasked the contracting company, Daewoo Nigeria Ltd., on the timely completion of the rehabilitation project.
The GMD who was represented by the Group Executive Director, Refineries and Petrochemicals, Mr Mustapha Yakubu, expressed confidence in the capacity of Daewoo to execute the contract, stressing that getting the refinery back on stream was very important to the economy.
On his part, the chief executive officer of Daewoo worldwide, Baek Jung Wan, who spoke through an interpreter, said his company was willing to work with NNPC to realise the objective of revamping the Warri Refinery.
Baek said that local processing of petroleum products was very critical to the Nigerian economy.
Some NNPC engineers on site of refinery rehabilitation
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Abuja, June 20, 2022 (NAN) The activities of the Nigerian National Petroleum Company Limited (NNPC Ltd.) for the new week started with a cheering news that the company would begin operation on July 1 as a limited liability company.
The operation as a limited liability company is under the Companies and Allied Matters Act (CAMA) and would commence upon the signing of the assets transfer documents by the Ministers of Petroleum and Finance the same day.
The development is in line with the provisions of the Petroleum Industry Act (PIA).
Group Managing Director (GMD)/Chief Executive Officer (CEO) of NNPC Ltd, Malam Mele Kyari, said at an engagement session with business leaders across the company’s value chain in Abuja that they were working to comply with the provisions of the PIA.
He said NNPC is doing everything possible to ensure compliance with the provisions of the Petroleum Industry Act (PIA) with regards to guidelines and timelines for action.
Kyari said that the new company would become operational with the transfer of verified assets from the Corporation to the NNPC Ltd. by the Ministers of Petroleum and Finance.
He explained that with the level of assets available combined with the new fiscal regime, NNPC Ltd. was set to become the number one energy company in Africa, noting that global brands interested in doing business with the new NNPC Ltd. needed to be sure of the company’s asset base.
On the objective of the session, Kyari stated that it was organised to engage business leaders on issues of change management strategies required to achieve the new business realities as a limited liability entity.
He added that the success or otherwise of the company depends heavily on how the change is managed.
In his presentation, the Chairman of the NNPC PIA Implementation Team and Group Executive Director, Downstream, Mr Yemi Adetunji, said that all was set for the presidential unveiling of the NNPC Ltd., scheduled for July 19.
In the meantime, the Nigerian Gas Company, a subsidiary of NNPC Ltd. has donated state-of-the-art health centres to two of its host communities in Delta State.
This is in line with the company’s Corporate Social Responsibility policy of improving the quality of life of members of its host communities.
The two beneficiary communities, Umu-Eziogoli and Umuseti-Ogbe, in Ukwuani and Ndokwa West Local Government Areas are along the Obiafu-Obrikom-Oben (OB3) gas pipeline project.
Speaking at the inauguration of the health centres, the Managing Director of NGC, Mr Seyi Omotowa, who was represented by the Executive Director, Services, Mrs Uche Ossai, said the company viewed its host communities as partners.
In his remarks, the Secretary to Delta State Government (SSG), Chief Patrick Ukah, represented by Mrs Gladys Priegere, commended NGC for its commitment to the well-being of its host communities through the provision of social and health facilities.
In their goodwill messages, the Chairmen of Ukwuani and Ndokwa West Local Government Areas, who were represented by Mr Okpor Ellais and Hon. Augustine Okom respectively, applauded NGC for contributing its quota to the development of the communities.
They pledged to work in synergy with the State Primary Healthcare Board to ensure that both facilities were put to good use and well maintained.
The traditional rulers of both communities, the Okpala-Ukwu of Umu-Eziogoli, Ossai Uku Okuya, and the Okpala-Ukwu of Umuseti-Ogbe, Sunday Eboh Ogwe, in their separate remarks, appreciated NGC for bringing development to their communities and promised to ensure that members of their communities derive maximum benefit from the facilities.
Also in the week, the NNPC Ltd. called on labour unions in the oil and gas sector to rethink their priorities and engagement model in the light of the PIA and the changes it had brought about in the sector.
The call was made at the 5th Quadrennial Delegates Conference of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), NNPC Corporate Headquarters Branch, Abuja.
Speaking at the event, the GMD of the NNPC Ltd., Malam Mele Kyari, who was represented by the Group Executive Director, Corporate Services, Hajiya Aisha Katagum, urged NUPENG to continue to work with the NNPC Management to consolidate on the gains already achieved so far to ensure a successful transition.
On her own part, the GED, CS, applauded members of the union for their resilience, peaceful conduct and cooperation with the management during the COVID-19 pandemic and helping the company to weather the business storm that adversely affected many organisations globally.
Also speaking at the conference, the National President of NUPENG, Mr Williams Akporeha, commended the management of NNPC Ltd. under Kyari’s leadership for promptly attending to the union whenever the need arises.
Highpoint of the conference was the election of a new Branch Executive Council (BEC) in which Mr Essienette Basseye emerged as the Chairman.
Other members of the new BEC include: Mr Ajibade Oluwaseun who emerged as Vice Chairman, while Mr Mohammed Zakari Ya’u was elected as Secretary.
Positions of Treasurer, Trustee, Financial Secretary, Auditor, Public Relations Officer, and Welfare Officer were also contested and won.
The National President NUPENG, Akporehe, called on the newly elected officers to always have the interest of members of the union at heart and work towards strengthening the cordial relationship between the union and management.
In his remarks, the newly elected Chairman, Basseye, promised to consolidate on the gains achieved by his predecessor in fostering good industrial relations.
Awards were given to various staff of the NNPC Ltd. in recognition of their support for the union.
In the meantime, Libya, a fellow OPEC member country and one of the top oil producers in Africa, called on Nigeria for support to forge a common front on how to react to the move to migrate from dependence on fossil fuels to renewable energy,
The migration from fossil fuels to renewable energy had posed a threat to oil rich nations.
Libya’s Minister of Oil and Gas, Mohamed Aoun, made the call during a visit to the Minister of State for Petroleum, Chief Timipre Sylva at the NNPC Towers.
Aoun noted that there was pressure from all sides by the developed nations to force African nations into the energy transition race in order for them to abandon their abundant energy resources.
“I think definitely there are a lot of areas for cooperation between us because we are some of the countries that have high levels of production.
“With the expertise we have developed over the years, we believe that there is a lot of room for cooperation especially now that the whole world is going into this so-called energy transition.
“They may put us in a difficult situation. They are rushing us into the energy transition while we still have a lot of resources in oil and gas.
“Even the manufacturing equipment that is related to the oil sector may become difficult to obtain. That is also another way to put pressure on us.
“We need a lot of cooperation and unity in the continent to have one voice in this regard.”
Responding, Sylva said Nigeria was already in the forefront of the advocacy not to hurry African nations into energy transition and was in total support of the move to rally African nations to have a common position on the issue.
“I agree with you completely on this issue of energy transition. We have to do it on our own, not what is imposed on us.
“We have a lot of this crude in the ground and even gas, but at the same time we don’t have energy sufficiency, a lot of our people are living without energy.
“They cannot just crowd us out of this sector and move us to the next level. We cannot move at the same pace with the rest of the world. I think we have made this sufficiently clear and they have heard us loud and clear.
“But for me, what is left is to take our destiny into our hands, now it behoves us as Africans to ensure that we have our own source of funding.
“We should also get to the point where we are not dependent on their equipment and equipment suppliers.”
He assured that other oil producing countries in the continent were on the same page and called for more regular meetings under the aegis of the African Petroleum Producers Organisation (APPO) to work out a strategy to tackle the challenges.
Sylva and Kyari
The Chairman of the Board of Directors of the NNPC Ltd., Sen. Margery Chuba-Okadigbo called for the participation of more women in the nation’s oil and gas industry.
Chuba-Okadigbo made the call at the Nigerian Content Consultative Forum (NCCF) Diversity Working Group’s Conference in Lagos.
She appealed to the NCDMB leadership to consider replicating its flagship capacity building programmes, Project-100 Module, for the empowerment of Nigerian women in oil and gas industry.
Project 100 is an initiative of the NCDMB in conjunction with the Ministry of Petroleum Resources that seeks to identify and nurture 100 wholly indigenous oil and gas companies to the next level.
This is by enhancing their capacities, supporting them financially through the Nigerian Content Intervention Fund and helping them to find opportunities in the industry, in collaboration with the NNPC.
According to Chuba-Okadigbo, it is imperative to encourage the participation and involvement of women in the oil and gas sector as it is one of the most challenging for women professionals to thrive even though it is a significant contributor to the Nigerian economy.
“I am appealing to the NCDMB leadership to consider a replication of the NCDMB Project 100 Module for women in oil and gas business. We believe this will further help to encourage more women participation in the industry.”
The NNPC board chairperson said there was no better time to promote the conversation around empowering women in oil and gas than now, especially with the passage of the PIA, and with President Muhammadu Buhari graciously appointing women including herself into strategic board positions and executive management positions.
She listed the various barriers to the advancement of women not only in the business world and expressed optimism that the outcome of the conference would lead to significant improvement in the opportunities available to women in the oil and gas industry.
“With these opportunities created from the passage of the PIA and with the sterling support from the public and private sector of the oil and gas industry also partnering with various women groups across the country, I believe it would garner more support for women in the industry.”
The Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), Dr Mohammad Barkindo, said that the organisation remains committed to its core values since inception in spite of the challenges in the oil industry.
Barkindo stated this in his keynote address at the Mediterranean Gas (MedGas) event Dinner, at Athens, Greece.
The OPEC helmsman said that over the last six years, the oil industry and OPEC had been faced with a range of challenges, complex and confounding in equal measure.
“Yet, we never wavered from the core values at the heart of OPEC, respect among nations, cooperation, dialogue, and working towards collective solutions.
“I have no doubt that these values can carry us forward to a brighter tomorrow.
“In a few weeks from now, I will complete my assignment as OPEC secretary-general, which began six years ago, on Aug. 1, 2016.
“The pace of change in world events over that time has been staggering. These changes have had major ramifications for the energy industry.”
Speaking on the dislocation that the COVID-19 pandemic caused to the global supply chain system, Barkindo recalled that there was a lot of discussion on nearshoring, onshoring and reshoring, as well as on the impact of rising interest rates and an end to the era of cheap borrowing.
He added that nothing had changed that would be more than the war in Ukraine and the subsequent geo-political fallout, adding that investment patterns that dominated the last three decades were also being put to the test.
The OPEC secretary-general listed the patterns as the idea of corporations opting for cheap offshore manufacturing, slick global supply chains holding costs down and keeping inflation levels low.
“The question now is whether the momentum behind globalisation is shifting toward local sourcing.
“Attention in public discourse has gravitated toward issues such as so-called ‘supply chain sovereignty’ and domestic production facilities.
“The deployment of sanctions and attempts to sever some countries from the global economic system has seen fractures in geopolitics spill into the economic sphere.
“And we should not be under any illusion that the attempt to ‘decouple’ economies or reverse globalisation is a product of the 2020s.”
OPEC Secretary-General, Dr Mohammad Barkindo
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Abuja, June 5, 2022 (NAN) The weekly activities of the Nigerian National Petroleum Company Limited (NNPC Ltd.) started with one of its subsidiary, the Petroleum Products Marketing Company (PPMC), brandishing an impressive financial record of N12.95 billion profit.
The profit was for the year ended Dec. 31, 2021 representing a 260 per cent increase over its net profit of N3.59 billion in 2020.
Mr Umar Ajiya, the Alternate Chairman of PPMC Board of Directors and Chief Financial Officer (CFO) of NNPC Ltd., disclosed this during the company’s 32nd Annual General Meeting (AGM) which held in Abuja.
Ajiya said that the leap in profit was due to the adoption of a commercial mindset in the company’s operation, a quality he said was required for survival in today’s business environment.
He disclosed that the company also achieved 85 per cent reduction in demurrage cost from 64.9 million dollars in 2020 to 9.46 million dollars in 2021 due to effective vessels/cargo programming and increased PMS demand.
He noted that the figure surpassed the target of 50 per cent demurrage cost reduction that had been set for the year.
Ajiya listed some of the company’s achievements for the 2021 financial year to include sustenance of products supply sufficiency, zero fuel queues throughout the year with peaceful industrial harmony, and automation of business processes.
On the outlook for the future, the CFO informed that PPMC was looking at expanding its products portfolio.
Also in the week the NNPC Ltd. got the green-light to sign an agreement with the Economic Community of West African States (ECOWAS) for the construction of the Nigeria-Morocco Gas Pipeline.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, who disclosed this said the Federal Executive Council (FEC) gave the approval at its weekly meeting presided over by Vice-President Yemi Osinbajo in Abuja.
Speaking at a press briefing after the meeting, Sylva explained that the cost of the Nigeria-Morocco Gas Pipeline was yet to be determined as it was still at the Front End Engineering Design (FEED) stage which normally precedes cost evaluation.
“The ministry of petroleum resources presented three memos to the council.
“In the first memo, the council approved for the NNPC Ltd. to execute MoU with ECOWAS for the construction of the Nigeria-Morocco gas pipeline.
“This gas pipeline is to take gas to 15 West African countries and Morocco and through Morocco to Spain and Europe.”
According to the Minister, FEC also approved the sum of N3.8 billion for the construction of a switch-gear room and installation of power distribution cables and equipment for the Nigeria Oil and Gas Park in Ogbia, Bayelsa State.
He said the park was designed to support local manufacturing of components for the oil and gas industry.
He said the third memo approved by FEC was for various contracts including the construction of an access road and bridges to the Brass Petroleum Product Terminal (BPPT) in the Niger Delta for N10.5 billion including 7.5 per cent Value Added Tax (VAT).
Still in the week under review, the Federal Government gave the assurance that works on two of the roads funded by the NNPC Ltd. under Tax Credit Scheme would be completed between January and May 2023.
The projects are Section II of the Suleja – Minna Road and the Agaei – Baro Road which are for dualisation and construction respectively.
Director Highways Construction and Rehabilitation, Federal Ministry of Works and Housing, Mr Folorunsho Esan, gave the assurance during an inspection tour of the roads.
A statement by the Director of Press and Public Relations, Ministry of Works and Housing, Blessing Lere-Adams, disclosed that the Ministry was satisfied with the pace and quality of work on the roads.
On the Suleja – Minna Road, Esan was quoted as saying: “My impression is that the contractor is on the site making progress and we can see the various aspects of work, the earthwork, the pavement work and even the asphalt laying is going on smoothly.
“The only challenge is that of security but it is being taking care of with the presence of security agents”.
Speaking on the 52-kilometre Agaei – Baro Port Road which connects the Lambata – Bida highway, Esan said: “Work is progressing, 14kilometres have been asphalted, earthwork is up to 32 kilometres and the rest which is about 18 kilometres is still outstanding but we have the assurance that the work will be delivered on target”.
The Director said the road when completed would boost the economy of the North Central region in particular and the nation in general as it led to the Baro Port through which goods and services can be brought into the country and exported to other countries.
The two roads were among the other 21 critical roads selected for funding by the NNPC because of their importance to the economy of the nation, especially in terms of the movement of petroleum products across the country.
The contractors working on both projects also expressed confidence that the projects would be completed and delivered on target as funding was readily available.
NNPC GMD Malam Mele Kyari
The Chief Financial Officer of the NNPC Ltd., Mr Umar Ajiya, said within the week that the NNPC-Gas and Power Investment Company (NGPIC) would leverage on the opportunities provided by the Presidential Power Initiative (PPI) roadmap for the electricity sector to boost company’s cash flow.
This is in line with the current reality of the Petroleum Industry Act (PIA),
Speaking at the 2nd Annual General Meeting (AGM) of the NGPIC, Ajiya, who is also the Chairman of the company’s Board of Directors, said NGPIC was determined to harness the potentials in both brownfield and greenfield portfolios to expedite business growth.
He disclosed that having achieved significant milestones in the Brass Fertilizer and Petrochemical Project, NGPIC would soon sign the Financial Closure agreement to commence the Engineering Procurement and Construction (EPC) of the integrated 10,000 Metric Ton Per Day (MTPD) Methanol Plant.
While commending the management and staff of the company for their commitment to the growth and development of the company, Ajiya urged all stakeholders to put in more effort towards improving on the current profit after tax, which stood at 1.81 billion naira for the year ended Dec. 31 2021.
Ajiya listed some of the achievements of NGPIC to include, completion of its 2nd Audited Financial Statements with improved profitability; completion and successful synchronisation of two Gas Turbines for the 450MW Okpai Phase 2 Independent Power Plant at Kwale, Delta State.
Others were the production of additional 320MW from the Phase 2 of the 450MW IPP ready to be wheeled into the national grid; and the take-over of management of Okpai and Afam VI JV IPPs for business profitability, among others.
Speaking on the contributions of the company to the overall objective of the NNPC, the Managing Director of NDPIC, Dr Jamari said efforts were on to position the business entity towards becoming strategic revenue stream, emphasising that NGPIC had enough potentials to increase the bottom line of the nation’s oil company.
“One thing I will assure the public is that by the time we conclude our activities in terms of acquiring some additional power plants and building some others, this and company will be the strongest company in future in the portfolio of subsidiaries of the NNPC Ltd”.
NNPC Gas Power Investment Company Ltd. (NGPIC) is a subsidiary of the NNPC Ltd.
It was incorporated on July 21, 2016 and commenced business in 2020 with main focus on power generation and other gas and power investment services.
In the meantime, CEO/GMD NNPC Ltd, Malam Mele Kyari, reiterated his commitment to sustain the strategic energy partnership between Nigeria and Spain.
Kyari disclosed this while addressing Nigerian and Spanish business leaders on investment opportunities in the Nigerian Oil and Gas Industry, in Madrid, Spain, on the sidelines of President Muhammadu Buhari’s state visit to Spain, Wednesday.
Buhari had earlier met with the Spanish President, Pedro Sanchez, King of Spain, His Majesty, King Filipe VI, and gave a speech at the headquarters of the World Tourism Organisation (WTO), in Madrid.
During the visit, Buhari said Nigeria looked forward to increasing bilateral relations with Spain, even as he signed bilateral agreements and Memorandum of Understanding (MoUs) with the Spanish leader, covering areas of prisoner transfer, sports and culture and the economy.
Describing the partnership between Nigeria and Spain as an important one for the NNPC, GMD/CEO said “26 per cent of all LNG produced in Nigeria end up in Spain, while 14 per cent of all Crude Oil produced in Nigeria end up in this country; clearly for us as a business, it is an important market for my company.”
Kyari explained that the world would need energy for today and for the future, in industries such as power, IT and automobile.
“We know that energy transition is real. We know that net-zero by 2050-2060 is real.
“But it doesn’t mean zero hydrocarbons in 2050-2060; it means that you are going to have a cleaner use of hydrocarbons,” Kyari added.
He said investors must see where their money can come out from and when they invest, they must see that they can recover their cost and make some margin from it.
While noting that in line with global acceptance of gas as a transition fuel, Nigeria had since declared 2021-2030 as the decade of gas.
“In our country today, we have a legislation that has clearly created a commercial National Oil Company which will be unveiled by our President in the coming days.
“Together with the Spanish business community, I am confident we can build this industry,” Kyari said.
L-R Mele Kyari, Adeniyi Adebayo and President Buhari
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) raised Nigeria’s oil production quota from the 1.772 million barrels per day (mbpd) target approved in June to a new target of 1.799mbpd for July.
A statement issued by OPEC said the decision was taken at its 29th OPEC and non-OPEC Ministerial Meeting.
The new target is 27,000bpd higher than the approved quota for June.
According to the statement, OPEC+ also adjusted upward the monthly overall production by 648,000bpd for the month of July with a target production of 43.206mbpd.
The statement said: “The 29th OPEC and non-OPEC Ministerial Meeting was held via videoconference on June 2.
“The meeting noted the most recent reopening from lockdowns in major global economic centres. It further noted that global refinery intake is expected to increase after seasonal maintenance.
“The meeting highlighted the importance of stable and balanced markets for both crude oil and refined products”.
It said the meeting extended the compensation period until the end of December as requested by some underperforming countries, and requested that underperforming countries submit their plans by June 17.
The statement added that the meeting directed that compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
The figure is 70,000bpd higher than the average crude oil production in April, which stood at 1.35mbpd.
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Abuja, May 29, 2022 (NAN) The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the new week with a meeting with major marketers of petroleum products in the nation’s downstream sector.
The aim of the meeting was to grow a strong determination to sustain energy security for the country and avoid diversion of petroleum products.
The meeting which held at the NNPC Towers, Abuja, had in attendance the Major Oil Marketers Association of Nigeria (MOMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Independent Marketers, on the need to curb products diversion.
The Group Executive Director, Downstream who was represented by the Managing Director (MD), Petroleum Products Marketing Company (PPMC), Mr Isiyaku Abdullahi, said that NNPC as the sole importer of petroleum products was in a critical situation that required the solid cooperation of the marketers to sustain product availability to Nigerians and reduce burden of high evacuation costs on government in terms of under-recovery.
Abdullahi said that the company was concerned that in spite of the high truck-out of Premium Motor Spirit (PMS) from depots across the country, the market was still experiencing shortfalls, noting that diversion of products had been identified as a likely reason for the gap.
He appealed to the marketers to activate the Corporate Social Responsibility (CSR) component of their businesses to support both the Federal Government and the NNPC in sustaining energy security for Nigeria.
Abdullahi stressed that such gesture would help in cushioning the effect of the current global energy crisis.
On his part, the Executive Secretary of MOMAN, Mr Clement Isong, said that NNPC was playing a key role in keeping the country well supplied in terms of petroleum products, especially at a critical time when the world faced inflationary problems.
Speaking in a similar vein, the Executive Secretary of DAPPMAN, Mr Clement Isong, expressed satisfaction with the outcome of the meeting, assuring that DAPPMAN as a responsible organisation is committed to ensuring efficient supply and distribution of petroleum products across the country.
Meanwhile, the NNPC Ltd. cautioned that the current price volatility in the global energy was likely to worsen if banks and other financial institutions continue to avoid funding gas projects.
The Group Managing Director/Chief Executive Officer of NNPC Ltd., Malam Mele Kyari, gave the warning at the 28th World Gas Conference 2022 which held at Daegu, South Korea.
Kyari who spoke against the backdrop of stifling funding for new oil and gas projects due to environmental concerns said: “In many jurisdictions, gas is nearly always associated.
“So, you have to turn the table to see if you can get non-associated gas so that banks and financial institutions can put their money into it.
“If that doesn’t happen, then you sure have the constraints of financing and the opportunity will now turn into a crisis.
“I think that is what we are trying to solve to see how we can turn this so that the facility that we are building or the facilities we are going to build will have enough gas to process and deliver into the market.
“Honestly, it is a huge opportunity for the financing sector, I know for sure in our own perspective we have seen a number of projects that can come up very quickly.
“Mostly, the LNG facilities where you can convert gas to chemicals and these are really coming up in their numbers across many National Oil Companies (NOCs) that I am aware of.
“The immediate future is getting the right financing, the right mix, and also for the finance institutions to recognise that except they invest today, what we are seeing today in terms of pricing can be something much more to manage in the next two three years to come.”
Kyari said the NNPC Ltd. was not averse to the push for carbon neutrality, adding that funding gas projects was a vital decision to be made to avert future crises.
At the 26th Conference of Parties (COP26) which held in Glasgow, Scotland in 2021, African countries advocated for energy justice in the drive for transition to cleaner fuels.
In another development, the NNPC Ltd. set record as the first exploration and production company to acquire environmental audit certification in the Federal Capital territory, Abuja, since the Environmental Impact Assessment (EIA) law was establishment about 30 years ago.
The attainment of this feat by the Company was disclosed by the Permanent Secretary of the Federal Ministry of Environment, Mr Hassan Musa, during the presentation of a certificate of Environmental Audit to the NNPC at the NNPC Towers, Abuja.
The Permanent Secretary who was represented by the Director, Environmental Assessment, Dr Abbas Suleman, commended the NNPC for its consistency and commitment to environmental global best practices.
Hassan stated that though environmental audit was a legal requirement by federal law, the bold step taken by the current NNPC Management to carry out an environmental impact assessment of the NNPC Towers reinforces the company’s reputation as a law abiding and responsible corporate citizen.
Narrating his experience with the company during the audit exercise, the Permanent Secretary said that he saw firsthand the Management’s commitment to performance excellence, adding: “NNPC does its things gently, quietly and steadily with the whole idea of achieving positive results”.
Speaking at the event, the Group Executive Director (GED) Corporate Services, Mrs Aisha Katagum, who was represented by the Group General Manager, Human Resources, Mr Yinusa Yahaya, appreciated the Federal Ministry of Environment for the honor of implementing the audit process.
She also appreciated the award of the certification to NNPC, especially at this crucial stage of the Company’s transition from a corporation to a limited liability company.
NNPC GMD, Malam Mele Kyari
Still in the week under review, the NNPC Ltd. and its partner, Sahara Group, took delivery of two 23,000cubic meters Liquefied Petroleum Gas (LPG) vessels for their joint venture company, WAGL Energy Ltd.
The event which held at the Hyundai MIPO Shipyard in Ulsan, South Korea, also witnessed the official naming of the vessels as Mt Sapet and Mt BaruMK.
Speaking at the occasion, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the investment in the LPG carriers was part of efforts to deepen domestic gas utilisation in keeping with the Federal Government’s aspiration to use gas as the linchpin to drive the nation’s economic and industrial growth.
He disclosed that an order for three additional new vessels was at an advanced stage, adding that “we have a target of delivering 10 vessels over the next 10 years”.
On his part, the Executive Director of Sahara Group, Mr Temitope Shonubi said WAGL successfully operated two mid-sized LPG Carriers – MT Africa Gas and MT Sahara Gas in the region and had delivered over six million CBM of LPG across West Africa, while keeping to global standards.
“With the new vessels, we are set to promote and lead Africa’s march towards energy transition,” he said.
The two new vessels, Mt Sapet and Mt BaruMK, were expected to sail out in June and September 2022 and would increase WAGL’s total fleet to four.
All four vessels were built by Hyundai MIPO Dockyard, a foremost global manufacturer of mid-sized carriers.
WAGL Energy Limited is a joint venture company between NNPC and Oceanbed (a Sahara Group Company) which is driving NNPC’s five-year $1 billion investment plan announced in 2021 to accelerate the decade of gas and energy transition agenda.
Also, at the event were the Ambassador of Nigeria to South Korea, HE Aliyu Magashi; NNPC Group Executive Director, Gas & Power, Mr Mohammed Ahmed and Group Executive Director, Upstream, Mr Adokiye Tombomieye, and other dignitaries.
In a related development, the GMD/CEO of NNPC Ltd, Malam Mele Kyari called on oil and gas companies operating in Nigeria to invest more in gas transportation in order to boost the nation’s gas exports to the global market.
Kyari made the call at an agreement signing ceremony between Hyundai Mipo Dockyard Company Limited, Temile Development Company and NLNG Ship Management Limited (NSML) for the construction of a 23,000 M3 LPG/NH3/VCM Carrier and the supervision of the ship construction work on the sidelines of the 28th World Gas Conference 2022, in Daegu, South Korea.
He said it had become imperative for Nigeria to develop more channels for getting gas into the international gas market considering the pivotal role gas had assumed in the global march towards cleaner energy sources.
According to him, there is need for Nigeria to take advantage of the global acceptance of gas as a transition fuel by massive investment in gas transport infrastructure.
“We expect to see more and more Nigerians coming forward to build a transportation medium for gas and other liquid that we handle,” Kyari stated.
He assured investors of NNPC’s support, saying: “We are here to support you, we are not in competition. We are here to make sure that you succeed so that our country will succeed and prosper into what we visualise and contribute globally to energy sale”.
Also speaking at the event, the Executive Secretary, Nigerian Content Development Monitoring Board, Mr Simbi Wabote, commended the project partners for their various activities in Nigeria which he said were in alignment with NCDMB’s strategic objective of maximising the potentials in the Midstream and Downstream Sectors of the Nigerian oil and gas industry to actualise the Decade of Gas policy of the Federal Government.
“I am delighted that this project will bring invaluable local content opportunities in technology and innovation, human capital development as well as research and development,” he said.
The event was attended by the Chairman of the Board of Directors, NNPC Ltd., Mrs Margery Chuba-Okadigbo and representatives of Hyundai, NSML and Temile Development Company.
Also in the week, Sonangol Group, the national oil company of Angola, Africa’s second largest oil producer, expressed desire to collaborate with NNPC Ltd. in the downstream sector reforms in Angola.
This was disclosed by a delegation from Sonangol on a benchmarking visit to the NNPC to understudy the company’s downstream operations and lay the foundation for new partnerships.
Speaking at a brief welcome ceremony held for the delegation at the NNPC Towers, Abuja, the head of the delegation and member of Sonangol’s Executive Committee in charge of Distributions, Ana Paula Marranjal Mesquita Do Carmo, said that the Delegates were in Nigeria to understudy NNPC’s downstream logistics and mechanisms of sales and distribution of petroleum products.
According to her, Angola was already transiting from a monopolistic market to a competitive market and Sonangol needed to learn from an established and functional system like NNPC.
Speaking earlier, the GMD/CEO of NNPC Ltd. who was represented by the Chief Financial Officer, Mr Umar Ajiya, welcomed the guests as partners, adding that NNPC was committed to working with African companies to add value to their hydrocarbon value chain and create energy security for the continent.
He assured them that NNPC would share its experience with the group, stressing that the visit was timely as NNPC was currently transiting to a limited liability company with its business processes changing to become more commercially focused and efficient.
In a presentation to the delegation, the Group Executive Director, Downstream, who was represented by the Managing Director, PPMC, Mr Isiyaku Abdullahi took them through the gamut of NNPC’s downstream operations with special focus on NNPC Retail and its business model.
He assured them that NNPC was willing to answer all their questions and avail them of any information relating to downstream operations.
The Sonangol team was taken on a tour of a number of NNPC’s downstream facilities in Abuja, Lagos and Ogun State.
Sonangol Headquarters in Angola
In another development, Federal Government called for synergy among stakeholders in the midstream and downstream sectors of the oil and gas industry.
The Minister of State Petroleum Resources, Chief Timipre Sylva, made the call at the opening ceremony of a two-day dialogue organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos with theme: “Maximising Potential in the Midstream and Downstream Oil and Gas sector – a Local Content Perspective”.
According to the Minister, one of the key objectives of the Ministry of Petroleum Resources under the Next Level Agenda of the President Muhammadu Buhari administration is to increase the nation’s domestic refinery capacity.
Sylva noted that synergy in the Midstream and Downstream oil and gas sector would further strengthen local content development and boost the country’s domestic refining capacity.
He noted that government’s effort at boosting domestic refining capacity led to NCDMB’s partnership with local companies such as Waltersmith Refinery, Azikel Refinery, and Atlantic Refinery in furtherance of its role as a catalyst for capacity development in the Nigerian oil and gas industry and its linkage sectors.
Sylva said the dialogue “would serve as a platform to sensitise and enlighten stakeholders about the Board’s capacity building intervention initiatives in support of Nigerian Content Development in the midstream and downstream sectors.”
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Edited by Ismail AbdulAziz
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