Many Motorists in the Federal Capital Territory (FCT), have frowned at the current fuel scarcity being experienced in the territory and environs.
Speaking with the News Agency of Nigeria (NAN) on Thursday in Abuja, the motorists expressed displeasure over the reoccurrence of long queues at most fuelling stations.
They urged the Nigerian National Petroleum Company Limited (NNPC Ltd) and other regulatory bodies to aggressively monitor fueling stations that appear to be hoarding petroleum products.
According to the motorists, such fuelling stations should be sanctioned.
NAN Correspondent who monitored some fuelling stations in the territory reports that most of them were not selling petroleum products while only few were seen selling.
The long queues had caused heavy gridlocks around the areas where the fueling stations selling fuel were located.
The development had caused hardship on commuters as transportation was difficult to get.
The motorists also have the perception that some marketers and fueling stations were hoarding the products.
NAN reports that some of the fueling stations dispensing the products include the Conoil and Total fueling stations opposite the NNPC Towers, which had long queues.
At Karshi road, only three stations including Forte Oil, Conoil and Best Albino (Black Market) were selling fuel at between N180 and N285, while NNPC Limited Outlet in Karu was selling at N179.
NNPCL Retail station and SALBAS fueling station close to Gwarimpa-Kado flyover along Kubwa expressway had fuel but with long queues.
The motorists urged the authorities to revoke the licences of fueling stations that have not dispensed products for months.
A motorist, Mr Godfrey Aremosele who decried the current scarcity said motorists were suspecting that those stations not selling fuel were lifting products to sell at higher prices in other states and outskirts, thereby causing shortage in Abuja.
Mr Donald Ugwu, another motorist said the situation was not predictable, adding that the suspicion was that marketers were trying to create artificial scarcity to hike the pump price from N180 being sold by some of their members.
According to him, it has not been easy for us during and after the yuletide as fuel price has been high in some areas and states which contributed to the high transportation fare experienced by travellers.
“In Enugu, I bought fuel last week at N340 per litre. I just bought today at N280 per litre at Haris fueling station Maraba, Nasarawa state.
“The government needs to address issues bordering on fuel crisis,” he said.
Another motorist who claimed anonomity expressed displeasure at the situation, adding that there were a lot of things being hidden in the oil and gas sector especially in the subsidy regime.
“It is better to remove the subsidy completely for Nigerians to know the real price of petrol and face it squarely,” the motorist said.
The motorists, however, called on the NNPC Limited and other oil regulatory bodies to swing into action and enforce surveillance to fish out marketers and fuelling stations that were hoarding fuel.
NAN reports that as at the time of filing this report, effort made for authorities to react is yet to yield positive result. (NAN)(www.nannews.ng)
The Federal Government has assured that Nigeria’s mini-bid round will boost global energy sufficiency in the long run.
Mr Gbenga Komolafe, the Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said this at a pre-bid conference in Lagos on Monday.
He said this year’s mini bid rounds, the first in the last 15 years, was expected to auction seven Deep Offshore blocks.
Komolafe added that the mini bid round also covered an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m.
He said the exercise was expected to be a huge success for Nigeria and a big step towards growing the nation’s oil and gas reserves through aggressive exploration and development efforts.
He said the exercise would also boost production, expand opportunities for gas utilisation and development.
According to him, the bid round will strengthen energy security and economy, providing the opportunity to gainfully engage the pool of competent companies in the oil and gas sector.
He said this would result in employment opportunities, enabling transfer of technology, valorising petroleum assets in the Nigerian Territory and attract investments.
He added: “In addition, the Mini Bid Round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).”
He assured that the process would be fair, transparent, and competitive in line with best practices.
He added that it would attract competent investors from across the world, both local and foreign, that had the capability and competence in operating in deep water environment.
Komolafe advised that all awardees must be duly registered in Nigeria under the Companies and Allied Matters Act (CAMA), stressing that all applicants could participate either as an individual company, or as a consortium.
He said: “The process will pay the requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares as well as overall Environmental, Social and Governance (ESG) considerations.
“The oil and gas industry in Nigeria has embraced the reality of energy transition and is taking strategic position to leverage on the opportunities presented by the unfolding era.
“We have taken deliberate steps in this regard including the recent issuance of guidelines for management of fugitive methane and greenhouse gas emissions in the upstream oil and gas operations in Nigeria.
“However, it is worthy to recognise that recent events around the globe indicate that fossil fuels will continue to be a core part of the global energy mix well into the future.” (NAN) (www.nannews.ng)
The Nigeria LNG Ltd. says its plant on Bonny Island is still active despite a force majeure declared in October 2022 and feed gas supply challenges.
Mr Andy Odeh, the General Manager, External Relations and Sustainable Development, NLNG, confirmed this in a statement on Monday in Lagos.
Odeh said the plant continued to produce LNG and Liquefied Petroleum Gas commensurate with the feed gas it received from its upstream gas suppliers.
“In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector.
“The company is closely monitoring the resolution of supply challenges by all relevant parties,” he added.
However, the News Agency of Nigeria (NAN) reports that average retail price paid by consumers to purchase Liquefied Petroleum Gas (LPG) also known as cooking gas has continued to skyrocket.
NAN correspondent who monitored the LPG retail market reports that an average retail cost of refilling 12.5kg gas cylinder rose to N9,700 in December 2022 as against N7,800 earlier.
The price of refilling 3kg gas cylinder stood at N2,600 as against N1,800, and 5kg cylinder at N4, 600 as against N3,500. (NAN) (www.nannews.ng)
The Nigerian National Petroleum Company Limited (NNPC Ltd), is set to spud the first Oil Well in Nasarawa state in March 2023, in continuation of its oil exploration activities in the country’s inland basins.
The Group Chief Executive Officer of the Company, Malam Mele Kyari, disclosed this when the Governor of the State, Abdullahi Sule, led a delegation of prominent indigenes of the state on a courtesy visit to the NNPC Ltd. in Abuja.
Kyari in a statement on Friday by Mr Garbadeen Muhammad, Chief Corporate Communications Officer, NNPC Ltd., said that results of exploratory activities confirmed the presence of substantial hydro carbon resources in the state.
He called for prompt action on the project as the global energy transition has led to a reduction in investment in fossil fuels.
“This work must be done very fast because the whole world is walking away from fossil fuel due to energy transition.
“The earlier you go to market, the better for you, otherwise, 10 years from now, no one will agree to put money in petroleum business except it comes from your cash flow,” he said.
Kyari described community support and a conducive environment as key to a successful operation in the area in order to avoid the experience of the Niger Delta.
In his response, the governor congratulated the GCEO on the successful commencement of oil production and the Kolmani Integrated development project which was inaugurated in Nov. 2022 by President Muhammadu Buhari.
“I want to congratulate you, the management of NNPC and the federal government for what you have done at Kolmani, for those who don’t know what you have done for Nigeria, you have written your name in gold,” Sule stated.
He commended President Buhari for his support while assuring the NNPC of a conducive environment.
The governor was accompanied on the visit by the Deputy Governor, Dr Emmanuel Akabe, National Chairman of the All Progressive Congress (APC), and first executive governor of the State, Dr Abdullahi Adamu, and his predecessor, Senator Tanko Almakura.
Others are the Minister of Environment, Mr Mohammed Abdullahi, Emir of Lafia, Justice Sidi Muhammad, and Chairman, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mallam Isa Modibo, among others. (NAN)(www.nannews.ng)
Nigeria and Spain have expressed commitment to deepen bilateral relationship and partnership in investments and development of Nigerian gas resources for global energy market.
Chief Timipre Sylva, Minister of State for Petroleum Resources made this known on Thursday in Abuja when he received Spanish Foreign Minister, Jose Albarese, in the company of other top officials and investors from Spain.
The News Agency of Nigeria (NAN) reports that the bilateral meeting between Nigeria and Spain dwelt on Spain’s investment on Security, technology and development of Nigerian gas resources.
According to the minister, Spain has been a partner and customer of the Nigerian Liquified Natural Gas (NLNG) company from inception.
Sylva, who describe Spain as one of the first countries to visit in 2023, said the visit could tell the importance of the relationship between the countries, adding that Nigeria required investments in the oil and gas sector, being the core of the economy.
He said the identified major investment companies and potential investors on the table, occasioned huge opportunities for Nigeria in view of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) already pitched process of mini bid round.
“These are people that they would have ordinarily gone to meet in their country before any bid round, but in this case, the potential investors are here by themselves, so you can see why this meeting is very important.
“As a country, we need a lot of investments, we need Foreign Direct Investment (FDI) and Spain is one of the countries that we believe can give us a lot of that investment to help in development,” he said.
According to Sylva, Nigeria currently has proven gas reserves up to over 200 trillion cubic feet of gas, and with focus on the exploration for additional gas, Nigeria can increase these reserves to up to 600 TCF.
He further said that Europe also required gas currently, hence Nigerian energy transition programme should be more mindful of the development of gas as well, because there was the clamour from some sources to move so quickly to renewables.
“And as a country we felt that we are going to move on the transition train through the instrumentality of gas.
“Spain is in the position to also support us in this area of security because insecurity is one of the major problem facing the industry today. So we are going to be looking up to Spain.
“And then of course, Spain will also look up to us for further supply of gas. They are also interested in the pipeline that we are developing to Morocco. I believe that is going to settle the issue of vessel flight from Nigeria to Europe.
Albarese, earlier had commended Nigeria’s ability and expressed Spain’s interest to facilitate investment opportunities in oil and gas sector of the economy, adding that Nigeria was its first supplier of oil and gas.
The Spanish minister who was pleased with the revolution and opportunities in the sector as informed by Sylva, said the cooperation from the countries, especially from Spanish investors, would yield gains.
“Nigeria has been a strategic partner to Spain and has proven once again as a trusted partner in the complex setting of global energy market,” he said.
The meeting had in attendance, the Group Chief Executive Officer, NNPC Limited, Mallam Mele Kyari; Authority Chief Executive, Nigerian Midstream and Downstream Regulatory Authority, Mr Ahmed Farouk; Commission Chief Executive, NUPRC, Mr Gbenga Komolafe; Managing Director, NLNG, Mr Philip Mshelbila, among others. (NAN)(www.nannews.ng)
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.
Visit us on www.nannews.ng for more details. (NAN)(www.nannews.ng)
ENO/EMAF/ISMA
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Edited by Ismail Abdulaziz
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