*Says PMS, diesel from refinery to be purchased in naira 

*NNPC now sole off-taker of product

Peter Uzoho

The federal government has finally reached an agreement with the management of Dangote Refinery on the commercial terms for the supply of crude oil to the refinery and the off-taking and distribution of petrol and diesel from the facility.

Following the agreement, the government has announced that the distribution of petrol from the 650,000 barrels per day Lagos-Lekki Free Zone-based facility would commence tomorrow with an initial 25 million litres per day.

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacceus Adedeji, who represented the Minister of Finance and Chairman of the Presidential Committee on the Sale of Crude Oil and Refined Products for Domestic Consumption in Naira, Wale Edun, disclosed this during the committee’s briefing yesterday in Abuja.

As part of the resolution, Adedeji said the Nigerian National Petroleum Company Limited (NNPC) would be the sole off-taker of petrol from Dangote Refinery while diesel from the facility would be sold directly to any interested marketer.

While crude supplied to Dangote Refinery would be paid in naira, he added that both petrol and diesel from the $20 billion refinery as well as all costs associated with the transactions would also be paid in the local currency.

Adedeji stated, “Supply of petrol exclusively to the Nigerian National Petroleum Company Limited NNPC while other refined products will be available to all marketers. This decision follows a briefing of the Presidential Committee on the sales of crude oil and refined products for domestic consumption in naira.

“I’m glad to announce that all agreements have been put in place and the loading of the first batch of PMS as already announced by NNPC will commence on Sunday, 15th September 2024. And from 1st of October, NNPC will commence the supply of crude oil to Dangote Refinery to be paid for in naira. In return, Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in naira.

“Diesel will be sold in naira by Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now. All associated regulatory costs -NPA, NIMASA, Federal Inland Revenue and all other Regulatory of fee that are associated with this transaction will be paid in naira.

“The technical committee that worked to flesh out this initiative, I mean this committee will transition to an implementation, Execution and Monitoring Committee that will be working out of the Lagos for the next three to six months.”

Peter Uzoho

About 1,000 Compressed Natural Gas conversion kits under the Presidential CNG Initiative (P-CNGI), yesterday left the Ibafo Warehouse of the initiative for onward delivery to some designated locations in Abuja, Kaduna, Lagos, Oyo and Ogun states.

 This batch is part of the 10,000 kits earmarked for distribution to transport associations within the next one week and also part of the one million free CNG conversion kits intended for distribution to commercial vehicles across the 36 states and Abuja within the next 18 months.
The initiative was launched under the directive of President Bola Tinubu in line with government’s drive towards energy diversification, reduction of energy cost and the general cost of living for Nigerians.

By the gas-based programme, being promoted in partnership with NIPCO Gas, free CNG conversion kits, along with free installation are being rolled out to help the transport sector quickly transition to CNG and take advantage of its significantly lower prices.

Speaking to journalists yesterday, during a media tour of the warehouse at Ibafo, Lagos-Ibadan Expressway, Ogun State, the Warehouse Manager, P-CNGI, Ibadan, Mr. Moses Onate, revealed that about 450 free conversion kits had left the warehouse for Abuja and Kaduna while another 550 would be leaving for Lagos, Ogun and Oyo states for distribution to transporters in those areas.

“Currently, we are doing cataloging for the 1,000 kits and cylinders we intend to distribute across the country -Lagos, Ogun, Kaduna, Abuja and Oyo. So, as at this morning, 450 have gone out already to Kaduna and Abuja. Then, 550 will be going out today (Friday) to Lagos, Oyo and Ogun states. We have more than 10 kits conversion centres in Lagos,” Onate stated.

He noted that the CNG Initiative would significantly help in cutting down the cost of transportation and food items in the country as the cleaner energy source only cost about N230 per litre, far less than the cost of petrol and diesel.

“The price of fuel is now N1,000 and more per litre, whereas CNG is just N230. So if you check the cost effect, the gross margin between what fuel is being sold now and the CNG price, you would discover that CNG will have a lot of impact on everybody. Now, on the long run, everybody will actually live to enjoy this CNG initiative,” he added.

Corroborating, the P-CNG Initiative’s Store Keeper, Mr. Austine Nwauduh, stated that “CNG is cheaper to run in our vehicles than petrol. The consumption is lower and the price is also lower. It’s also environmental friendly. It doesn’t emit so much fumes in the atmosphere.

“So, I think it’s a good initiative by Mr. President to bring this on board because it will help to reduce the amount of emission into the air and also help to bring down the cost of burning our vehicles. It’s a worthy initiative by the President and I advise Nigerians to embrace it.”

Peter Uzoho

Some energy experts and top officials of critical entities in Nigeria’s economy have called for application of best sustainable practices in the exploration, production and utilisation of oil and gas products in the country in order to save the environment from emissions.

The experts made the submissions at a webinar titled, “Transitioning Away from Emissions, Not Oil and Gas,” which was organized by the Nigerian Institution of Petroleum Engineers (NiPeTE) in collaboration with the Lagos Chamber of Commerce and Industry Professional Practice Group (LCCI PPG).

Highlighting the role of oil and gas in global emissions and possible solutions, a former Executive Commissioner in charge of Development and Production, at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Dr Nuhu Habib, noted that while oil and gas production contributes to emissions, it was not the largest source of global greenhouse gases.

Habib opined that oil and gas would remain key drivers of the global economy for at least the next 50 years.

He pointed out that oil and gas account for only about 15 per cent of industrial emissions, emphasizing that the real challenge lies in addressing the broader industrial activities that contribute to greenhouse gases.

In his remarks, President and Chairman of Council, LCCI, Mr. Gabriel Idahosa, highlighted the significant emissions from gas flaring and other petroleum activities in Nigeria, which exacerbate climate change and affect public health.

He called for innovative approaches to decarbonize the economy while maintaining the growth and stability provided by oil and gas resources.

Idahosa noted that the oil and gas sector was vital to Nigeria’s economy, accounting for about 90 per cent of export revenues and approximately 60 per cent of government revenue.

In her contribution, the National Chairman of NiPeTE, Prisca Kanebi, emphasized the importance of balancing global greenhouse gas reduction goals with Nigeria’s development needs.

In his remarks, Planning and Commercial Senior Officer, Gas and Power Investment Services, Nigerian National Petroleum Company Limited (NNPC), Dr Mohammed Malami, called for the strategic integration of low-carbon technologies and improved operational efficiency to reduce emissions without eliminating oil and gas entirely.

Peter Uzoho

The average volume of petrol consumed in Nigeria has risen to 50 million litres per day, up from about 46.38 million litres in July 2023, two months after subsidy was removed by the current administration.

The surge in petrol consumption despite the ravaging scarcity of the product at the filling stations in Nigeria has been attributed to the return of smuggling activities fuelled by subsidy payment.

Head of Public Affairs, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. George Ita, disclosed the new consumption figure in a response to THISDAY’s inquiry.

Ita stated this while dispelling speculations that daily fuel consumption in the country had hit 60 million litres to 65 million litres.

“Now, I can confirm to you that our daily consumption hasn’t surged up to anywhere near these (60 million to 65 million litres) levels. Average consumption is 50 million litres daily,” Ita said.

He, however, sidestepped the question on the return of smuggling of petrol to other neighbouring African countries, arguing that only the security agencies that man Nigeria’s international border points had the power to address such issue.

In July last year, NMDPRA had announced that the country’s petrol daily consumption figure stood at 46.38 million litres, due to subsidy removal by the federal government.

The Chief Executive of NMDPRA, Mr. Ahmed Farouk, who disclosed this at the time, said that the figure represented a 35 per cent reduction when compared with the 65 million litres per day, prior to subsidy removal.

According to him, an average truck out on a daily basis for petrol consumption, after announcing subsidy removal on May 29, reduced to 46.38 million litres.

 “The current daily consumption has drastically reduced as against 65 million litres, which was the daily consumption before subsidy removal.

“In January, it was 62 million per litre; February, 62 million per litre; March, 71.4 million per litre; April, 67.7 million per litre; May 66.6 million per litre; June, 49. 5 million per litre and July, 46.3 million per litres,” Ahmed said then.

Officially, petrol price is now N897 per litre, following the recent price increase by the Nigerian National Petroleum Company Limited (NNPC) but many filling stations in the country are selling between N930 to N950 while in some locations, the pump price hovers between N1000 and N1400 per litre.

NNPC had also stated that the current petrol pump price is not yet the actual market price, noting that the price will keep adjusting until it reflects the international price of the commodity, meaning that more price increases could take place any time soon.

However, petroleum products marketers and analysts have argued that part of the reasons for the current scarcity of petrol in Nigeria and the return of smuggling to neighbouring African countries was because of the reappearance of subsidy and the re-emergence of the NNPC as the sole importer of petrol.

Chief Executive Officer of Swift Oil Limited, Stillian Mitakev, told THISDAY, exclusively that the only solution to the scarcity and smuggling is for the government to deregulate petrol pricing and allow the market to determine the pump price.

With the current situation where NNPC enjoys the sole importer status and with all the advantages accrued to it, Mitakev said marketers cannot compete with the national oil company.

According to him, only NNPC gets foreign exchange (FX) at the official market rate and also uses its crude sale proceeds to buy dollars at a very discounted rate, whereas marketers were left with the option of sourcing dollars at the parallel market.

He said that no marketer will buy dollars at the parallel market rate, import petrol and sell the product below its landing cost, noting that that is the reason marketers pulled out from importing Premium Motor Spirit (PMS).

“Parallel market is N1,600/$; N1,620/$ or thereabout. Whereas official rate is N1,580/$, but you cannot compare it with what NNPC is calculating to set their pump price. And NNPC calculates its price at N650/$ because of its crude sale proceeds. No marketer has that advantage,” Stillian said.

Despite the hopes that the Dangote Refinery will ease petrol shortages in Nigeria, the marketer argued that the only way the 650,000 barrels per day facility could achieve that is when the market is deregulated.

He added: “The only way Dangote Refinery can ease the petrol supply challenge is if the government deregulates the price because Dangote has not set their price now.

“If they do it on market price, their price should be about N1,500 to N1,600 per litre.  Anywhere in the world, petrol is between 90 cents and $1. How much is $1? It’s N1,600.”

Peter Uzoho

Executive Chairman of Mainland Oil & Gas Limited, and Chrisnak Group, Dr Chris Igwe, has provided the global business community, especially Nigerian investors with great insights into driving organic business growth in a depressed economic environment.

lgwe gave the insights in a lecture he delivered at the School of Advanced International Studies (SAIS) at the Johns Hopkins University, Baltimore, United States, with the topic, “Contemporary Issues Related To Governance, Entrepreneurship And Energy Development in Nigeria.”

In the lecture, the oil marketer used his companies as reference cases to demonstrate how private enterprises, in harmony with good regulatory agencies, could be a crucial avenue for engaging Nigeria’s burgeoning population.

He pointed out that investors aspiring to explore the wealth of opportunities in the Nigerian business environment needed to embrace compliance and foster partnerships and collaborations with government agencies and regulators in order to drive mutually beneficial growth.

He also tasked players in the petroleum industry to cultivate the necessary capacity, capability, networks, and partnerships to not only survive but thrive in the dynamic Nigerian energy landscape.

Igwe declared that positive working relationship with the Nigerian government entails incorporating community stakeholder relations through employment opportunities and sustainable development initiatives in all industry operations.

Citing the example of companies under the Chrisnak Group, Igwe stated, “We prioritize talent development, recruiting and grooming individuals from within these communities, while upholding the highest standards of governance and sustainability throughout our value chains.”

However, chief host and Chairman of African Focus Area at John’s Hopkins University, Prof. Peter Lewis, commended Igwe for the lecture, noting  that his presentation provided business players with great insights into the Nigerian operating environment.

He also applauded the guest lecturer on his business success and the growth of the Chrisnak Group.

*Says disbursement of funds being delayed by litigious host community actors

*Swears in Falana, Osahor, 25 others as commission’s ADRC Body of Neutrals

Peter Uzoho

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, has disclosed that the commission has already facilitated and attracted funds totalling about N200 billion for the development of oil and gas host communities in the country.

He explained that the fund comprised N60 billion and another $100 million, adding that it amounted to N200 billion when calculated on the prevalent foreign exchange rate.

Komolafe revealed this Monday at the inauguration of the Body of Neutrals of the Alternative Dispute Resolution Centre (ADRC), at the NUPRC Lagos Regional Office.

He also lamented Nigeria’s low reserve to capital expenditure (Capex) ratio despite the country’s over 37 billion barrels oil and 209 trillion cubic feet (TCF) deposits.

The Commission Chief Executive equally at the event swore in 27 members of the Body of Neutrals for the NUPRC’s ADRC including human rights lawyer, Mr. Femi Falana and a former Director of the defunct Department of Petroleum Resources (DPR)/Chairman of Energia Nigeria Limited, Mr. George Osahor.

Komolafe explained that the N200 billion already attracted for host community development was achieved through the implementation of the Petroleum Industry Act (PIA).

The PIA which was signed into law in August 2021, among other things provided for the host community development fund which is to be funded with a pool of three per cent of the operating companies’ capital expenditure (Capex) in every preceding year. The fund, as provided by the PIA, is to be managed by the Host Community Development Trust (HCDT) which are selected by members of each of the host communities.

He said the intent of the commission’s ADRC was to look for a much peaceful, faster and cheaper way of resolving disputes in the oil and gas industry, particularly issues relating to host communities, to engender a conducive operating environment for operators.

He said the idea was to a large extent help to improve Nigeria’s oil and gas production and ultimately lead to increased revenue to the federation’s account.

He stated, “Today’s event is really very significant because we are all concerned about improving our daily national oil and gas production. I’m going to speak about the nexus between achieving our much desired optimisation of our national oil and gas production. We all are aware that as a nation that is well endowed with huge hydrocarbon resources of over 37 billion barrels of oil and 209tcf of gas, that we suffer at a very low reserve to capex ratio in the country.

“And one of the reasons that have led to that is the menace of crude oil theft aside very hostile operating environment. Of course, the Petroleum Industry Act under Section 235 provides robustly the dealing with the challenges of hostile communal environment and of course, that provision speaks about inclusiveness.

“Now, for us as a commission, we’ve made efforts in achieving effective implementation of the robust provisions of the Petroleum Industry Act which is a very laudable provision. As at today, we have facilitated about N60 billion. We’ve created over $100 million. And these funds are meant to add value to the host communities, to facilitate conducive operating environment for the operators so that we can achieve the intended optimisation of our hydrocarbon endowment in the nation”.

Peter Uzoho 

The Chairman of Integrated Oil and Gas Ltd., Capt. Emmanuel Iheanacho (rtd), has faulted the call by billionaire businessman and Chairman of Geregu Power Plc, Mr. Femi Otedola, for petroleum marketers in the country to dismantle their depots and sell them as scrap following the commencement of petrol production by Dangote Refinery.

In a statement issued on Wednesday, Iheanacho emphasised the indispensable role of depot owners in Nigeria’s fuel supply chain, particularly in the context of the delivery of petrol by the 650,000 barrels per day Dangote Refinery.

Otedola had, in a post on X on Tuesday shortly after a live broadcast by the President of Dangote Group, Aliko Dangote, who displayed samples of petrol produced from his $20 billion refinery, suggested that Nigerian depot owners should dismantle their facilities and sell them as scrap, given the arrival of Dangote’s petrol.

Iheanacho, who is also a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), clarified that petroleum products storage depots were a vital component of the fuel supply chain, complementing primary fuel sources.

He stressed that without these depots, other elements in the supply chain would struggle to deliver fuel to consumers.

“While there might be competitive elements in the market, collaboration and cooperation are essential for ensuring a stable fuel supply in Nigeria.

“Petroleum depots are not a replacement for primary fuel sources but are crucial for storing and distributing products to meet demand,” Iheanacho said. 

He added that depots play an important role in distribution, particularly given Nigeria’s dispersed infrastructure. 

He also noted that while private depots may compete with the Nigerian National Petroleum Company (NNPC) Limited in terms of storage and distribution, they were not necessarily in direct competition with the NNPC or the Dangote Refinery.

Iheanacho maintained: “Instead, these depots often work in conjunction with both to support a reliable fuel supply chain.

“Private depots may compete with petroleum importers for market share by offering essential storage and distribution services.

“Ultimately, competition aims to balance market prices.

“However, depots are key partners in supporting the entire supply chain, including NNPC and Dangote.” 

He concluded that depots provide critical storage and distribution support not only for NNPCL and Dangote Refinery but also for petroleum importers, ensuring a more efficient and reliable fuel supply network.

Peter Uzoho

Petrol supply from the 650,000 barrels per day Dangote Refinery has been projected to increase from the initial 25 million litres this month to 30 million litres in October.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated this Tuesday in a short statement posted on X, adding that it met with the Nigerian National Petroleum Company Limited (NNPCL) to agree on local crude supply to the Lagos-based refinery.

“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” the NMDPRA said.

Meanwhile, President of the Dangote Group, Alhaji Aliko Dangote, Tuesday announced that the 650,000-capacity oil refinery in Lagos had commenced petrol production with samples of the product displayed to the pubic.

Speaking at the refinery complex, at Ibeju-Lekki, Dangote said the supply of petrol into Nigeria would change the country’s energy landscape.

While appreciating President Bola Tinubu for approving the sale of crude in naira to local refineries, he said many people did not believe that the $20 billion refinery could start petrol production.

He said the capacity would meet local demands and the demands of sub-Saharan Africa.

“Our refinery will eliminate all fuel queues in Nigeria. Our refinery will show the true consumption of Nigeria using our tracker. Your car engines will last longer”, he said.

Dangote assured Nigerians of quality petrol from the refinery, saying “Our quality matches that of America and any other country in the world.

“We are ready to start rolling out petrol within the next 48 hours.”

Dangote said the introduction of Naira for crude will reduce the demand for foreign exchange (FX) by 40 per cent.

*Eyes listing on Nigerian, London, New York exchanges

Peter Uzoho

Nigerian oil and gas firm, Belemaoil Producing Limited, has announced the appointment of a former Group General Manager in charge of Finances at the Nigerian National Petroleum Company, Mr. Ahmadu Sambo, as its new managing director/chief executive officer.

Belemaoil, owned by Nigerian billionaire oil mogul and philanthropist, Tein Jack-Rich, also appointed Mr. Emmanuel Onos as its chief finance officer (CFO), saying the new officials would be responsible for driving its transformation, realising its shared vision and deriving significant benefits for its joint venture operations and shareholders.

The company also revealed its ambition of becoming the first truly indigenous oil and gas exploration and production firm from a Niger Delta oil producing community to be listed on the Nigerian Stock Exchange, New York Exchange and the London Exchange with overwhelming stock growth.
The company’s board of directors announced this in a statement, saying it approved the new appointments “having carefully reviewed their rich credentials and found them deserving of the positions.”

According to the statement, the two appointments are effective from September 1, 2024.

Sambo, a former GGM of Finances at NNPC, is joining Belemaoil  with over 35 years experience in the oil and gas industry spanning public and private sectors in Nigeria and the United States of America.

He also served as Managing Director of three subsidiaries of NNPC, which include NNPC Pension Fund, NIDAS Marine and NNPC Oilfield Services in addition to the position of General Manager in charge of NAPIMS Finance and Accounts as well as Group General Manager Accounts for NNPC Group.
The statement read: “The board is confident that under the leadership of the new MD/CEO, Belemaoil will derive significant benefits for its joint venture operations and shareholders.

“The new Chief Finance Officer (CFO), Emmanuel Onos, also comes on board with over 35 years of experience in the financial space of the oil and gas industry at the managerial level in both local and international scenes.

“The board believes strongly that the combination of Ahmadu Sambo as MD/CEO and Emmanuel Onos as CFO of Belemaoil, supported by the existing management team, will revitalise the company’s Joint Venture (JV) operations, unlock multi-billion-dollar value and reposition it for a greater height that will be more beneficial to all shareholders.”

It said that the board considered the team as the perfect blend of skills and expertise needed to reset Belemaoil as a world-class exploration and production company and to ensure that the company becomes the best public enterprise for Nigeria and international equity investors.
According to the statement, sequel to the new appointments, the President/Founder of Belemaoil, Jack-Rich, will now focus on his vision for strategic multi-dimensional business development.

It stated that this will include lens in the Fintech space for strategic partnership with communities to foster financial inclusion, promote social good, peace and shared prosperity for national gain.

With over 1.2 trillion proven gas reserve in its asset, Belemaoil said it was now ready for higher profitability as the Adamawa State-born, United States-trained finance expert takes over leadership from September 1, 2024.

Speaking on the new appointments,  Jack-Rich said that he believes in the new appointees’ enormous business management ingenuity as well as ability to steer the ship of Belemaoil to become the first truly indigenous oil and gas explorer and producer.

He stated that this is especially since it is emerging from an oil producing community in the Niger Delta, as it will be launched in the Nigerian Stock Exchange Market as well as  London and the New York Stock Exchange with overwhelming stock growth.

“We have no choice than to dream big and break new business boundaries beyond our eyes, for shareholders. I know our critics will say that this task is herculean. And I know you can deliver for yourself, for Nigeria sake, our investors, as well as the community that sees Belemaoil as its model,” he said.

Peter Uzoho

Nigerian integrated energy company, Aradel Holdings Plc, has announced its unaudited half-year (H1) results for the period ended 30 June 2024, with its revenue hitting N268.3 billion.

The company said the revenue represented an increase of 260.2 percent compared to its performance same time last year.

According to the result’s statement sent to THISDAY, Aradel recorded a profit-before-tax of N162.3 billion, up by 482.2 percent posted in H1 2023 at N27.9 billion, with an income tax expense estimate of N57.8 billion, cash tax of N33.2 billion and deferred tax of N24.6 billion.

The first marginal field and modular refinery operator noted that its profit after tax increased by 694.6 percent to N104.4 billion as against H1 2023 record of N13.1 billion.

Aradel added that it achieved a year-to-date growth in total assets of 72.4 percent to N1.5 trillion, compared to the full year 2023 record of N923.4 billion, driven by an increase in property, plant and equipment by 65.2 percent to N633 billion against FY 2023 of N383.4 billion.

This, it explained, was impacted mainly by increased capital expenditure and higher foreign exchange (FX) rates.

However, Aradel stated that it recorded an average realised oil price per barrel of $87.5 compared to H1 2023 of $74.7, while it recorded an average realised gas price per mscf of $1.5 against H1 2023 of $1.8.

The company recorded an underlying cash operating cost (boe) of $20 against the H1 2023 of $20, adding that FX dynamics from the floating of the naira in 2023 played a major role in the financial performance of the company.

“Average exchange rate in H1 2024 was N1,345:US$1, and N482: US$1 in H1 2023. Revenue increased by 260.2 percent to N268.3 billion (H1 2023: N74.5 billion).

“This was driven by: 332.2 percent increase in export crude oil revenue (63.8 percent of total revenue) to N171.1 billion (H1 2023 N39.6 billion; 53.2 percent of total), attributed to increased production levels, significant impact of improved utilisation of the Trans Niger Pipeline (TNP) on which there has been reduced crude losses, and additional value from the ACE route with resultant higher crude oil lifting of 1.5Mbbls in H1 2024 vs 1.1Mbbls in H1 2023”, Aradel stated.

It maintained that its gas revenue recorded a 321.8 percent increase to N15.5 billion, representing 5.8 percent of total, saying this was due to higher production volumes against H1 2023 of N3.7 billion and 4.9 percent of total revenue.

It added that it achieved a 161.6 percent increase in refined products’ revenue, which was 30.4 percent of total, to N81.7 billion compared to H1 2023 of N31.2 billion and 41.9 percent of total revenue. It maintained that this was also due to increased production and sales volumes of 122.2 mmltres, up by 114.4 percent compared to H1 2023 of 57.0 mmltres.

Commenting on the results, the Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade, stated that the company’s performance in the first half of 2024 consolidated on the improved operational and financial performance from 2023.

Adegbite added, “We achieved increased diversification of our revenue streams on significantly improved hydrocarbons production, and material increases in the output from our refinery operations.

“Wells 14 and 15 have now been drilled – and results have been favourable – concluding our Phase 1, 4-well turnkey drilling campaign.

“To accommodate the expected incremental volumes, we also expanded the throughput capacity of our Alternative Crude Evacuation (“ACE”) operations. These activities, among others, put us in a position to maintain the output and efficiency levels for the second half of the year.

“Omerelu field appraisal was completed, and first oil was achieved via re-entry of well 2ST in May 2024. Extended Well Testing is ongoing, in accordance with regulatory approvals.”

Additionally, the company’s operational highlights, concerning production and refining, also showed crude oil production of 12,957 barrels per day (bbls/day), up 51.7 per cent recorded in H1 2023, which was 8,544 bbls/day.

The operator said it also recorded gas production of 40.4 million standard cubic feet per day (MMscfd), which was 7,132 barrels of oil equivalent (boepd), up by 75.4 per cent against the H1 2023 figure of 23.0 MMscfd and 4,067 boepd.

It maintained that its refined petroleum products sold 122.2 million litre (mmltres), up by 114.4 per cent, compared to the H1 2023 number of 57.0 mmltres.

•Distributes 250 fully-filled LPG cylinders to Lagos households

Peter Uzoho

The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, has said he would invite regulatory agencies and producers of Liquefied Petroleum Gas (LPG) popularly known as cooking gas to address the current soaring prices of the product in the country.

This was just as the federal government through the Decade of Gas Secretariat and some partners distributed 250 fully-filled LPG cylinders to underserved households in Lagos State.

The exercise was in line with the government’s annual target of converting 250,000 homes to clean cooking gas in all the 774 Local Government Areas (LGAs) in Nigeria by 2030.

Speaking to journalists yesterday, in Lagos on the sidelines of the kick off the LPG Grassroots Penetration and Cylinder Distribution Programme for the South-West Zone, Ekpo confirmed that the price of cooking gas had gone up, saying he would invite the stakeholders to resolve it.

Currently, the price per kilogramme of LPG has skyrocketed, with a 12.5-kg cylinder now being filled with as high as N16,200, up from about N13,500 sold last month.

But responding to a question on the rising prices, the minister stated, “I just got that information this morning that the price of gas is getting up again. So, what I’m going to do is that I will invite the regulators and the producers and have a meeting with them. What we are looking for is to bring down the price of gas so that it will be affordable.

“In the energy security we are talking about, we are talking about the affordability, availability. So we are going to do that. Whatsoever is the reason behind the hike in price, we will make sure we bring it down.”

Earlier in his keynote address at the occasion, the minister said the day’s programme was a manifestation of the current administration’s unwavering dedication to enhancing domestic gas utilisation.

By starting with the distribution of up to 250 gas cylinders, Ekpo noted that the government was taking tangible steps toward achieving their broader goal.

He added that the initiative was a key component of the Decade of Gas Initiative, which envisions converting 250,000 homes to clean cooking gas within the next decade.

He said the government was committed to realising this vision through strategic partnerships with both the public and private sectors.

Ekpo added, “This significant event marks a crucial step forward in our journey toward sustainable energy solutions and aligns perfectly with our Presidential theme, ‘From Gas to Prosperity: Renewed Hope.’,  where the President reiterated his government’s resolve to continue providing support to deepening domestic gas utilisation.

“Our focus on LPG is driven by its potential to improve household energy efficiency, reduce environmental impact, and foster economic growth. Clean cooking gas represents a cleaner, safer, and more efficient alternative to traditional fuels, and it is our mission to ensure that its benefits are accessible to all, especially women and youth who play a pivotal role in our communities.

“I would like to solicit corporate, private, and public sponsorship to advance this program beyond our goal of one million households. Our goal is to convert over one million homes across 774 local government areas in Nigeria to utilise LPG for cooking.”

The minister said in their bid to effectively reduce and combat deaths in Nigerian women and youths related to respiratory ailments caused by environmental pollutants that might arise from cooking with wood, charcoal, and other hazardous fuel sources, the clean cooking movement was the right approach and a significant step forward.

While expressing gratitude to the Coordinator of the Decade of Gas, Mr. Ed Ubong, and his team for their leadership and dedication to the cause, the minister stated that their tireless efforts have laid the foundation for initiatives like the day’s event.

“As we move forward with this phased approach, I am confident that our collective efforts will yield significant benefits for our people and our environment. Let us continue to work together, driven by a shared commitment to innovation, sustainability, and prosperity for all”, he added.

In his goodwill message, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, said the initiative represents a significant milestone in the shared mission to expand LPG adoption and improve energy access across Nigeria.

With the LPG penetration and distribution programme, Komolafe, who represented the Coordinator of the NUPRC Lagos Regional Officer, Mr. Paul OSU, noted that the government was taking a bold step towards a cleaner, more efficient energy future for the nation.

“I commend the leadership, management, and staff of the Ministry of Petroleum Resources for their unwavering commitment to achieving the President’s vision of “From Gas to Prosperity; Renewed Hope,” with the goal of converting 250,000 homes to clean cooking gas by 2030.

“As we kick off this programme with the first phase distribution of up to 250 gas cylinders, focused on women and youth inclusion, it is essential to recognise the positive impact this will have on our environment and energy sector. This initiative not only promotes a greener and more sustainable future for Nigeria but also underscores the importance of equitable access to clean energy”, Komolafe said.

Also in his remarks, the Secretary to the Government of the Federation (SGF), Senator George Akume, who was represented by his Special Technical Adviser, Prof. Babatunde Bolaji, encouraged Nigerians to embrace cooking with LPG as it was easier, faster, and safer than firewood.

Akume, pointed out that the LPG generates less heat in the kitchen and produces less carbon dioxide, adding that cooking gas was cheaper than firewood now because it was more expensive to transport firewood than buying gas.

He also said the declaration of the Decade of Gas has ended gas flares because of the commercialisation of gas flaring, saying that meant more cooking gas for Nigerians.

The SGF added, “So, soon, this gas will be cheaper again. The use of gas will reduce indoor pollution.

“The use of cooking gas will reduce the dependence on firewood. So, it is to our advantage for us to use the gas to be able to the cutting down of trees and allow our forest to flourish.

“So, we commend the Minister of Petroleum Resources (Gas), the directive coordinating this effort and the initiative and of course, the private sector partnership. The dye has been cast. The government has brought the initiative and we are very happy that you are all taking advantage of this initiative to kill many birds with just one stone.”

Peter Uzoho

The Independent Project Monitoring Company Limited (IPMC), has introduced an asset integrity management software called, ‘VAIL-Plant Inspection Software’ for the Nigerian oil and gas industry which it said, will help operators to boost the nation’s oil production by keeping facilities in good condition.  

The solution provider also said the software has the capacity to bring down the cost of oil production in Nigeria by between 10 to 15 per cent.

The Chairman of IPMC, Mr. Robert Ade-Odiachi, told THISDAY on the sidelines of the IPMC-VAIL Inspection Software Solution for Asset Integrity Managers’ conference held in Lagos, that the unique technology was designed to address critical challenges posed by ageing infrastructure in Nigeria’s oil and gas production and evacuation facilities.

Ade-Odiachi said the software offers 12 modules for clients, including the Asset Performance Management System (APMS), Pressurised Equipment Management System (PEMS), Structure Integrity Management System (SIMS), and Pipeline Integrity Management System (PIMS), Electrical Instrument and Rotary Management Systems, Pressure Safety Valves Management Systems (PSVMS), and Lifting Equipment Management System (LEMS) among others.

He pointed out that oil production assets in the country were decades old and had not been properly maintained for years, adding that most of Nigeria’s oil production facilities ranging from pipelines to flow stations were in a dilapidated state, contributing to reduced production capacity.

Also speaking, the Senior Manager of Asset Integrity at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Albert Echibe, highlighted the regulator’s commitment to ensuring compliance in asset management and production processes.

He commended IPMC for introducing the technology to the industry, expressing his satisfaction with the VAIL-Plant software for its real-time monitoring features, which would allow NUPRC to oversee operators’ maintenance activities remotely.

“We can now view the integrity status of critical infrastructure directly from the regulator’s office, and this will help us enforce the guidelines we set in 2023,” Echibe said.

He emphasised that the regulator was actively working with operators to ensure that guidelines were followed.

Peter Uzoho

Pinnacle Oil and Gas Limited has dissociated its petroleum terminal from any link with a cargo that originated in Malta.

Pinnacle in a statement issued and signed by its Managing Director and Chief Executive Officer, Mr. Robert Dickerman, which was sent to THISDAY, insisted that it had never accepted any product into their tanks that did not meet all specifications of Nigerian regulations.

The petroleum marketer stated that at their terminals, the regulators oversee quality control of all imported products and had the products inspected by independent, qualified inspectors before issuing a discharge certificate.

The downstream oil and gas sector operator maintained that they could not and would never be involved in the distribution of products that did not meet all specifications of Nigerian regulatory agencies.

Africa’s richest man and Chairman of Dangote Petroleum Refinery, Aliko Dangote, recently alleged that the Nigerian National Petroleum Company Limited (NNPCL) and some traders operated a blending plant in Malta from where they import dirty fuels into the country.

Since Dangote’s allegation, some oil marketing companies have been linked with the importation of dirty fuels from Malta.

But to dissociate itself from the alleged deal, Pinnacle stated in statement: “In a recent publication, our terminal was associated with a cargo that originated in Malta. Pinnacle has never accepted any product into our tanks that does not meet all specifications of Nigerian regulations, and we never will.

“At our terminals, the regulators oversee quality control of all imported products and have the product inspected by independent, qualified inspectors before issuing a discharge certificate. We cannot and will not ever be involved in the distribution of products that does not meet all specifications of Nigerian regulatory agencies.”

Peter Uzoho

The Independent Petroleum Producers Group (IPPG), an umbrella association of indigenous oil and gas-producing firms, has expressed its members’ rejection of the directive by President Bola Tinubu on mandatory sale of crude oil to Dangote Refinery and its local counterparts in naira.

The IPPG also called on the Nigerian National Petroleum Company Limited (NNPCL) to re-direct its allocated crude oil volumes to Dangote Refinery and other local refineries to mitigate the current crude supply shortage being experienced by the local refiners which is impacting local product availability in many parts of Nigeria.

Chairman of IPPG, Mr. Abdulrazak Isa, advanced his members’ position in a letter dated August 16, 2024, and addressed to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe.

Isa, said the NNPCL should utilise its allocated 445,000 barrels per day intervention crude oil volume to salvage the current situation as it did in many instances in the past.

He said some IPPG members already owned and or were supplying crude oil to local refineries but insisted that the NNPCL was in a good position to mitigate the current crude supply shortfall faced by local refiners by leveraging its statutory crude allocation for meeting local domestic consumption.

“Historically, NNPC has always had an intervention crude oil volume (445kbopd) meant to satisfy the nation’s domestic consumption. This volume has always been used, under various swap mechanisms, to import refined products for domestic consumption.

“Since there is now domestic refining capacity to meet consumption, this dedicated volume should be reserved for all domestic refineries under a price hedge mechanism that can be provided by a suitable financial institution such as Afrexim Bank,’’ he stated.

Isa, however, maintained that, “Any national production above this allocated volume should be treated strictly as export volumes, adhering to the willing-buyer, willing-seller framework of the international market especially since the refiners will need to export excess products that surpass domestic demand thus boosting FX earnings.’’

The group also expressed concerns over certain recent developments including the domestic crude oil refining requirements and crude oil production forecast for the second half of 2024, announced by NUPRC, as well as the request to all producing companies for their monthly quotations for crude oil supply to licensed refineries in Nigeria.

Specifically, the IPPG said some of its members had received letters from the Dangote Refinery for crude supply nominations for October, and faulted the approach as bringing them under an obligation.

Isa said the development conflicted with the spirit of the willing-buyer, willing-seller framework prescribed by the Petroleum Industry Act (PIA) 2021.

He asserted that the objective of enhancing the country’s petroleum value chain should be done within the confines of the law and existing obligations.

He expressed confidence that an amicable solution could be reached by all stakeholders without jeopardising the existing commercial agreements, economic interests and business models of each segment of the oil and gas sector.

“While we fully support and commend the efforts of Nigerian entrepreneurs to enhance domestic refining capacity, it is important that no private sector business is unduly pressured into arrangements that may effectively subsidise another within the oil and gas value chain under any guise whatsoever.

“Under this willing-buyer, willing-seller framework, it is essential for refiners to negotiate and execute long-term crude oil Sales and Purchase Agreements with producers and their marketing agents. These agreements should follow industry best practices, with typical tenures ranging from one to five years,” the IPPG chairman said.

He added that some of them had also received allocation letters from NUPRC for the supply of specific volumes of crude oil to the domestic market for the second half of 2024, expressing concerns about its potential implications for the economy, especially the foreign exchange earnings through royalties and taxes.

The group noted, “We understand that the current allocation methodology appears to be based on a matrix of production forecasts by producers, issued technical allowable rates as well as crude oil requirements of domestic refineries, rather than actual local consumption needs. This raises significant concerns as it suggests that allocations are being determined based on the demands of refiners, which may exceed what is needed for domestic consumption.

“Such an approach could lead to inefficiencies and unfairly disadvantage producers. Therefore, it is crucial that refineries with excess capacity beyond local consumption do not exploit the Domestic Crude Oil Supply Obligations to the detriment of oil producers and other stakeholders, including the Government.’’

Isa called for transparency in how the allocations to oil producers were determined and requested NUPRC to provide clear details on the allocation criteria and methodology, while he sought an opportunity for IPPG to make input into the production forecast to ensure it accurately reflects operational realities.

Peter Uzoho

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite; and Chairman of Dangote Petroleum Refineries,  Alhaji Aliko Dangote, would be leading discussions at the inaugural Nigerian crude oil refining summit.

The event is set to take place on October 7 and 8, 2024 in Lagos.

The leaders, according to the programme organizers, have not only endorsed the event but have also confirmed their attendance and participation as keynote speakers.

In a statement made available to THISDAY, the involvement of the top industry and economic leaders was officially confirmed during courtesy visits by the Crude Oil Refinery Owners Association of Nigeria (CORAN) led by its Chairman, Mr. Momoh Oyarekhua, at their respective offices in Lagos and Abuja.

“The endorsement and participation of Senator Heineken Lokpobiri, Dr. Doris Uzoka-Anite, and Alhaji Aliko Dangote reflect the pivotal importance of the Nigerian Crude Oil Refining Summit. Their leadership and insight will be invaluable as we chart the course for Nigeria to become a net exporter of petroleum products,” Oyarekhua stated.

With the theme “Transforming Nigeria into a Net Exporter of Petroleum Products,”the organizers said the summit came at a crucial juncture for the country’s oil industry.

 As Nigeria navigates the complexities of downstream oil deregulation, CORAN said the event serves as a critical forum for industry stakeholders to deliberate and plan for the sweeping changes reshaping the sector.

It said the summit would focus on assessing the investment opportunities and operational sustainability of refinery businesses amid ongoing deregulation, which is poised to create a more competitive market, attract international investments, and boost the efficiency of domestic refineries.

Peter Uzoho

The Women in Energy Network (WIEN) and Smart Gas Limited have entered into a partnership for distribution of 100,000 Liquefied Petroleum Gas (LPG) cylinders annually over the next five years to women in rural communities in the 774 Local Government Areas (LGAs) in Nigeria.

The move is aimed at deepening domestic gas utilisation in the country in line with the federal government’s National Gas Expansion Programme (NGEP) that seeks to increase local LPG consumption and reduce reliance on kerosene and other polluting fuels.

Moreso, the initiative, according to the partners is to align with the government’s agenda for fuel diversification and economic sustainability, particularly as the nation works towards reducing its dependence on traditional and non-renewable energy sources.

Speaking at the inauguration of the initiative in Lagos, President of WIEN, Mrs Eyono Fatai-Williams, explained that promoting LPG, also known as cooking gas, as an alternative to firewood and coal, directly supports the NGEP programme.

She stated, “This collaborative initiative between the WIEN and Smart Gas Limited is to expand the use of Liquefied Petroleum Gas in our local communities.

“The Nigerian government has recognized the importance of diversifying its energy mix to ensure long-term economic stability. By promoting LPG as an alternative to firewood and coal, this initiative directly supports the federal government’s National Gas Expansion Programme, which aims to increase domestic LPG consumption and reduce reliance on kerosene and other polluting fuels.

“The shift to LPG directly contributes to achieving the national health agenda by reducing the burden of respiratory illnesses and decreasing healthcare costs.”

On her part, Chief Executive Officer of Smart Gas Limited and member of WIEN, Dr. Yinka Opeke, who explained the modalities for the distribution of the various LPG cylinders across the nation, called on both private and public sector to support them in achieving the targets.

She said the aim of the partnership was to promote utilisation of cooking gas to households in all the 774 LGAs In the country.

Peter Uzoho

In a bid to simplified non-tax payment process by residents and corporate entities in Lagos, the state Governor, Mr. Babajide Sanwo-Olu, would this Thursday formally inaugurate the innovative Lagos Revenue Portal (LRP) for the benefit of all stakeholders in the nation’s commercial nerve centre.

Special Adviser to the Governor on Taxation and Revenue, Mr. Opeyemi Ogungbo, announced this in a statement issued yesterday.

He said the innovative online platform was designed to simplify how Lagos residents and corporate entities perform their civic responsibilities in the form of non-tax payments, making the entire process more efficient, convenient and secure.

Ogungbo, stated that the proposed launch of the LRP was in line with the governor’s T.H.E.M.E.S+ agenda and his continuous drive to improve the quality of life for Lagosians.

He stated, “The innovative online platform was designed to simplify how Lagos residents and corporate entities perform their civic responsibilities in form of non-tax payments, making the entire process more efficient, convenient and secure.

“As earlier established with the e-Tax platform for all tax payments managed by the LIRS. LRP is another milestone in the Administration of our Governor; Mr. Babajide Olusola Sanwo-Olu

“The LRP scheduled to be launched by Mr. Governor on Thursday, 15th of August 2024, represents a significant leap towards modernising our revenue collection system.”

Ogungbo maintained that the advanced technology would streamline the state’s collection processes into a friendlier and more accessible self-service portal for everyone in Lagos.

He explained that the LRP aggregates all Lagos State bills and payments across Ministries, Departments and Agencies (MDAs) in the state, making it a one-stop-shop for all taxpayers.

He added that the portal allows Lagosians to manage and print their bills and make payments online through multiple available channels such as Card, Bank Transfer, POS, USSD, QR Code, among others, from the comfort of their homes or offices.

This, he said, eliminates the need for physical visits to Lagos State service stations and bank branches, saving time and reducing hassle for their taxpayers.

According to the governor’s side, the portal ensures secure and seamless payment processing, guaranteeing that transactions are both safe and efficient.

“This means that every payer receives an Instant Revenue Receipt after successful payment and also allows them to seamlessly VALIDATE these receipts to avoid paying to the wrong hands. This aspect of the LRP is critical in providing peace of mind to our taxpayers.

“Additionally, the portal facilitates easy payer registration, so Individuals and businesses can now register as payers and access their profiles online, simplifying the entire registration process,” Ogungbo stated.

Furthermore, he noted that the LRP also allows for amendment and reversal request, saying payers could request changes or reversals on their payments, which significantly reduces errors and disputes along the transaction value-chain, payers, banks and MDAs.

The statement added, “Comprehensive view of payment and receipts is another valuable feature of the portal. Users can view and download their payment history (remittance statement) and receipts, providing easy access to their records.

“LRP is available on both secure web and mobile application channels. This will allow taxpayers to access the portal on-the-go, making it even more convenient. The portal is designed to allow for seamless integrations with current and future technologies; thereby allowing for scalability, robustness, confidentiality and data integrity without compromising data privacy regulations.

“This one-stop-shop provides Lagosians with timely support and promotes ease-of-doing-business within the State, therefore enhancing their overall experience.

“In conclusion, the LRP is a significant step towards modernising revenue collection and administration in Lagos State, by providing a user-friendly, efficient, and secure platform,

the government aims to increase compliance, promote transparency, efficient service delivery and grow revenue for developmental projects.

“As the portal continues to evolve, it is expected to impact on the state’s revenue administration system. We are committed to continuously improving LRP to meet the needs of our citizens and businesses in Lagos State.”

•Say Seplat, Oando, Renaissance have needed competence to optimise oil blocks

•Operators lament suffocation by over 40 regulators

Peter Uzoho

The Society of Petroleum Engineers (SPE) Nigeria Council has assured Nigerians that the ongoing divestment of onshore oil and gas assets by international oil companies (IOCs) would not lead to job losses and technical capacity erosion in the industry when the local companies buying the assets finally take possession.

The Chairman of SPE Nigeria Council, Mr. Salahudeen Tahir, gave the assurance in Lagos, at the just concluded 47th Nigeria Annual International Conference and Exhibition (NAICE) 2024, with the theme, “Petroleum Industry Value Chain: The Inevitability of Midstream and Downstream Development.”

Tahir, also pointed out that the indigenous Nigerian oil firms buying the assets from the IOCs including Seplat Energy, Oando Plc, and Africa Renaissance, among others have the requisite technical competence, funding partnerships and wealth of experience to operate and optimise the assets and deliver value from them as done by the IOCs.

He spoke just as operators in the upstream petroleum sector decried alleged suffocation of their businesses by 40 regulators with attendant multiple taxes, fees paid in United States’ dollars.

The Nigerian oil and gas exploration and production sector has continued to witness a gale of onshore portfolio divestment by the IOCs over the past few years due largely to general unfavorable operating environment coupled with the global portfolio rationalisation by the multinationals.

Currently, ExxonMobil, Eni, Shell, TotalEnergies and Equinor have all put their onshore assets in Nigeria on sale, and a couple of Nigerian independent companies are buying those assets, with the divestment transactions now at different stages of completion.

However, questions have been raised by some concerned stakeholders about the ability of the local operators pushing to acquire the assets to operate them optimally with the same kind of technical competence and transparency showcased by the IOCs.

The stakeholders also expressed worry as to whether the takeover of the assets by Nigerian locals would not result in loss of jobs by the current staff working for the multinationals in the divested businesses.

But in allaying those fears, the SPE Chairman explained that the new owners of the assets would still retain and make use of the same personnel working for the IOCs, adding that the fear of job losses, erosion of technical competence and transparency should not arise.

According to him, the local companies buying the assets including Seplat, Oando, Renaissance and others have the wherewithal to operate those onshore assets and deliver high value to Nigerians and their partners.

Tahir explained, “In the onshore, we are seeing Shell moving out of the onshore space and there is a company, African Renaissance taking over. That same African Renaissance are taking the same manpower as Shell is leaving.

“These are experts, people that have been doing this job for many years. So, it’s the same people that they are taking.

“Also, Eni is leaving the onshore. As Eni is leaving Agip, Oando takes over and it’s the same people that are working there that Oando will retain. You are not bringing in novices.

“Same with Seplat, if Exxon moves and gives Seplat their asset, it’s the same people that will be working there for Seplat. Each of these companies have their code of conduct and business ethics, they have their governance processes which they are mandated to abide with.

“So if there is a feeling that because one IOCs is exiting in one place and we are going to lose technical capacity and transparency, I would want to tell you to be rest assured that it’s the same capacity and transparency exhibited by the IOCs that you are going to see happening with the indigenous companies taking over these assets.”

To further ensure that the local firms taking over the divested assets play by the rules, the SPE chair pointed out that there are checks and balances in the system.

According to him, the industry has regulators such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Content Development and Monitoring Board (NCDMB) that regulate activities of the sector including ensuring job security for Nigerians.

Meanwhile, operators in the Nigerian oil and gas industry have decried the suffocation of their businesses by over 40 regulators and the attendant multiple taxes, and fees that are present in the industry.

They lamented that there were too many bottlenecks usually encountered in their efforts to comply with the regulatory procedures, saying that has forced investors to now start looking for solace in other countries.

Speaking during a panel session at the SPE conference, the Managing Director and Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade, described the Nigerian oil and gas industry as the most regulated in the world, pointing out that over 40 regulators were currently overseeing the sector.

“Some years ago, we were dealing with about 10 regulators, but today, the number of regulators that we are dealing with is not less than 40. We really have to deal with this. We need the regulators but we believe the regulations should be seamless,” Falade stated.

He emphasised the need for regulations to be more digitised, adding that getting approvals these days was a herculean task.

Noting that the payments to regulators were currently done in dollars, he appealed that those fees should be done in Naira, adding “Let our operators breathe.”

While calling for a reduction in the timeframe for securing approvals for projects, Falade, however, applauded the regulators for the support that indigenous firms have enjoyed from them, saying, “the regulators have been supportive, but there is room for improvement.”

Contributing, Executive Director, Oando Plc, Mr. Ainoje Irune, who was represented by the General Manager, Subsurface, Oando Energy Resources, Mr. Babafemi Onasanya, said financial support had been a major concern for indigenous players.

He said finding a financial partner was crucial to the growth of local players in Nigeria.

On her part, the Principal Consultant, Reservoir and Facilities Solution Nigeria Limited, Mrs. Oluseyi Afolabi, said Nigeria must perfect its laws and ensure a seamless regulatory process to avoid changing the rules often.

According to Afolabi, “you can’t change the rule in the middle of the game. The oil and gas industry is a long term investment and investors are in business to make a profit, we don’t need to discourage them.”

Peter Uzoho

Oil and gas experts at the Institute for Energy and Extractive Industry Law have stressed the need for the federal government to protect and strengthen regulatory agencies in the industry in order to boost competition and prevent monopoly in the sector.

In the same vein, the analysts canvassed for protection and support to local players in the Nigerian petroleum refining and marketing space through introduction of business-friendly fiscal policies capable of enhancing investment by indigenous companies.

A consultant at the Institute, Dr. Taiwo Ogunleye and an independent energy analyst, Mr. Ademola Adigun, made the calls while making presentations at a one-day workshop in Lagos.

The topic of the workshop was “The Midstream and Downstream Petroleum Industry in Nigeria: The Roles of NMDPRA in Ensuring Energy Security.”

Their advocacy came on the heels of the recent spat between the management of Dangote Industries Limited -owners of the 650,000 barrels per day Dangote Petroleum Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In his presentation, Adigun called for a substantial review of fiscal policies that will entrench competition and strong regulatory environment in the Nigerian oil and gas industry.

He said regulatory issues were key to creating efficiency and transparency in the petroleum products supply value chain, warning that the regulator must not be weakened by the actions of the government, the players and the public to avert the collapse of the downstream petroleum industry.

While pointing out that NNPC would not sell crude below cost of production since crude oil is an international product, he advised that Nigeria must be guided by international best practices.

He also warned about the continuous subsidy payment on petrol, which he said had hit N8 trillion, saying that has made the market uncompetitive and continues to create disruptive supply arrangements.

 “As at today, landing cost of petrol is N1,100 per litre aside from associated costs of trucking the product to dispensing outlets. The last time we checked, subsidy was around N5 trillion. But today, as I speak with you, subsidy has gone to about N8 trillion”, Adigun stated.

Earlier in his presentation, Ogunleye stated that monopoly was not the way to go for any market that wants the best for all stakeholders.

According to him, as enshrined in the Petroleum Industry Act (PIA), no single person or institution must owe and control more than 40 per cent of fuel supply and distribution in Nigeria.

Peter Uzoho

Rotary Club of Ikeja-Alausa has successfully carried out awareness programmes in three strategic health institutions under its catchment area in Lagos, aimed at combating infant and child mortality in Nigeria, in line with Rotary Area of Focus: “The Rotary Maternal and Child Health Campaign.”

The programme which was part of the club’s initiatives to impact lives in the communities, provided empowerment to healthcare professionals and members of the communities with practical health Insights.

The programme, according to Rotary Club, was held simultaneously at three healthcare facilities in Lagos including Opebi Primary Healthcare Centre; Onigbongbo Primary Healthcare Centre; and the Beko Ransom Kuti Primary Healthcare Centre, Police College, Ikeja.

In a statement sent to THISDAY, yesterday, the Club said the programme was equally aimed to educate and sensitize healthcare professionals, caregivers, and community members on the best practices to reduce infant and child mortality rates.

 It informed that the programme brought together women of reproductive age, mothers, grandmothers, expecting and nursing mothers, healthcare workers, nurses, midwives, care givers, social workers, as well as aid workers.

According to the club, “The event was designed to provide a platform for these professionals to share practical insights and expertise on ways to prevent infant and child mortality.

“The campaign focused on the importance of proper antenatal care, safe delivery practices, and post-natal care for new mothers. Medical professionals also shared insights on how to identify and manage common health issues that can lead to infant and child mortality, such as malaria, pneumonia, and diarrhea.”

Speaking at the event, the President of the club, Henry Akwara, stated: “With this campaign, the Rotary Club of Ikeja-Alausa is taking a bold step toward creating a healthier future for mothers and children, not only in our community but also in the society at large.

“By empowering healthcare professionals and communities with practical insights and expertise, we can significantly contribute to reducing infant and child mortality rates.”

In his lecture at the session, the guest speaker and Past President of the club, Dr Ruchi Singh Gaur, of the Rotary Club of Jalandhar Helping Hands, District 3070, India, emphasized the need for early detection and treatment of child-related health issues.

According to her, “If we can identify these problems early and provide proper treatment, we can significantly reduce infant and child mortality rates”.

Peter Uzoho

Ahead of the release of the 2022 and 2023 oil, gas and solid minerals audit reports by the Nigeria Extractive Industries Transparency Initiative (NEITI) in September, the South-west representative on the agency’s board, Mr. Taiwo Olasupo, has told Nigerians that the anticipated reports would reveal more oil revenue losses and other loopholes in the petroleum sector.

He said the report being awaited would cover more areas hitherto not covered by previous reports, adding that there would be a major improvement in the new report from the ones released in the past.

Olasupo, stated this during an exclusive chat with THISDAY on the sidelines of the just-concluded NEITI National Stakeholders Working Group (NSWG)’s retreat held in Lagos.

“In our 2022 and 2023 oil, gas and solid minerals audit reports which are coming out in September, Nigerians should expect to see more revelations in terms of oil losses, revenue losses, monies paid by companies and remitted by government agencies, more areas of coverage, and major improvement from the previous reports,” he added.

As expected by the government and Nigerians, he said it behooves on NEITI to keep improving on its job delivery in line with its key transparency and accountability principle.

He urged Nigerians to avail themselves of the NEITI audit reports to enable them be in a better position to ask questions about how proceeds from their God-given resources are being utilised.

According to him, “it is important that Nigerians know what these companies operating in their communities are paying in terms of royalties, taxes, levies, as well as the various intervention funds that were created to make life better for them.”

Olasupo, pointed out that NEITI’s core mandate was to promote prudent management of the extractive resources for the general good of the people of Nigeria.

He maintained that the essence of an audit was to review and reveal, match figures claimed in documents with the actual and then correct lapses where necessary through recommendations.

He noted that NEITI was established to work as the chief auditor of Nigeria’s extractive sector, “which means through our audit reports, Nigerians will know what we are generating from the oil, gas and mining industries, whether there are defaults in remittances by companies or otherwise.”

“Part of our mandate is to understand how and why our crude oil is being stolen and how to plug the loopholes, and also how to boost investor confidence in the extractive sector so that more Foreign Direct Investment (FDI) inflows can come,” he added.

Olasupo, expressed worry that Nigeria was now facing a new challenge brought by energy transition and decarbonisation.

He said NEITI has seen this as a major challenge that Nigeria has to swiftly rise up to tackle and minimised its impact on investment in the oil and gas sector.

“We have to support the government with actionable roadmap on how to retain and stimulate investment in the oil and gas sector without losing sight of the global demand for an environmentally-friendly energy production and utilisation,” he stated.

He, however, explained that the retreat was more like an induction training and interactive session for the newly-constituted 6th NEITI board/NSWG.

He said the retreat was a platform where the members were being trained on or exposed to the core mandate of NEITI, which primarily borders on strengthening and ensuring more transparency and accountability in the management of Nigeria’s oil, gas and mining resources.

Olasupo stated that the retreat also exposed participants to the opportunities, prospects and challenges in the extractive sector, and to chart a way forward on how to harness the opportunities.

He maintained that the session also covered, “how to plug leakages in oil, gas and mining production, revenue remittances and ensuring effective implementation of intervention funds for the development of the host communities especially in the areas of health, education, power, drinkable water, good roads, and clean habitable environment. 

“The retreat also seeks to look at the past NEITI audit reports, point out areas done well and areas to improve upon. So, basically, at the end of the retreat, every member of the 6th board that attended would have been well armed with the requisite information needed to make positive contributions in the course of the four-year term for the general good of Nigerians.”

However, as the representative of the South-west Zone on the NEITI board, Olasupo said part of his job was to educate the people of the zone on the works of NEITI and build their awareness on what they should be demanding from the companies and government with respect to what is due to them.

“I’m also advising my fellow board members that we need to sell NEITI to the grassroots because a lot of the people don’t know anything about the agency. So, it means we need to embark on massive campaign to create awareness and make them see the need to track the utilisation of their money,” he added.

Peter Uzoho

Stakeholders on the board of the Nigeria Extractive Industries Transparency Initiative (NEITI) have expressed their resolve to monitor and track the utilisation of some special intervention funds created by the Petroleum Industry Act (PIA) 2021 in line with the mandate of the agency to entrench transparency and accountability in the utilisation of proceeds from the country’s extractive sectors.

Those special funds include the 30 per cent Frontier Exploration Fund being managed and used by the Nigerian National Petroleum Company Limited (NNPC) to boost oil and gas exploration activities in the frontier basins.

The funds also included the 3 per cent Host Community Development Fund (HCDF) which is derived from 3 per cent of the total operating expenditure (OPEX) of exploration and production companies in the preceding year. It is to be managed by the Host Community Development Trust (HCDT) in each host community to carry out critical developmental projects in the communities.

Speaking to THISDAY, the representative of the Civil Society Organisations  (CSOs) on NEITI, Dr Erisa Danladi, said the 6th board has taken those funds as part of the things they wound be beaming their searchlight on to monitor their utilisation.

“We want to see proper engagement from the communities so that we are able to build their capacities to understand that they are the people that these funds are meant to work for, to understand that these are the funds that we need to follow through to understand what they do with those funds.

“We are going to be building capacity of the locals, of the regions and civil society in general to be able to pick out those funds and then ask questions: are they being utilised? Are they on the right track?,” she said.

Executive Secretary of NEITI, Dr Ogbonnaya Orji, pointed out that there are certain issues that are key in the extractive industry including the 30 per cent Frontier Exploration Fund and the HCDF.

He said the stakeholders would be following the implementation of those funds by tracking their utilisation for transparency and accountability.

He explained, “The point you made about the Host Community Fund is a provision in the Petroleum Industry Act. NEITI is tracking this very closely. We are not involved in the implementation of that particular provision, we would have loved to because host communities really need that provision.”

Peter Uzoho

The federal government has charged the new Board of the Nigeria Extractive Industries Transparency Initiative (NEITI), to refocus its attention on impacts derived from the priorities of the present administration.

The government listed the priorities as economic growth through diversification, increased investment inflows and competition built on extractive sector reforms and the Nigerian citizens.

Secretary to the Government of the Federation (SGF) and Chairman of the NEITI Board, Senator George Akume, gave the charge on day two of the ongoing retreat for the members of the NEITI Board in Lagos.

In a statement by the Deputy Director/Head, Communications and Stakeholder Management, NEITI, Mrs Obiageli Onuorah, the SGF stated that the theme of the retreat, “From Reports to results built on Impacts” situated the expectations of President Bola Tinubu from the present NEITI Board.

He specifically said the president’s expectations were for NEITI to forge a new policy and strategic direction where it could use its reports, findings and recommendations to drive reforms in Nigeria’s extractive sector for the benefit of Nigerians and in support of government efforts in growing the sector.

Akume’s keynote address, according to the statement, was presented by his representative and former Permanent Secretary, General Services Office in the Presidency, Mr. Olusegun Adegunle.

The SGF pointed out the importance for the NEITI Board to guide the agency to play a “Leading role in supporting Nigeria to navigate through the grave challenges that oil theft and illegal bunkering had imposed on our economy and the consequences to our environment through our public value addition by providing informed policy direction.

“We must therefore help to build a NEITI process that provides accurate, adequate and timely information and data to guide this Administration’s policy making choices in the oil, gas and mining sectors and support policy decisions to institutionalize transparency and accountability mechanisms in Nigeria’s extractive sector for the benefit of all.”

In his remarks, Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, reiterated the resolve of the Board to support government by aligning the agency’s mission of fostering transparency and accountability in Nigeria’s extractive industries with the yearnings of Nigerians for impacts within the country’s contextual reality and its international obligations.

“This retreat has been structured as an induction programme that will expose us to the mandates and operations of NEITI and why we are unique, peculiar and different from other agencies of the Federal Government,” Orji reiterated.

•Says country lost 4.2bn litres of products from refineries worth $1.84bn

•Warns about effect of energy transition, decline in global oil demand on Nigeria

Peter Uzoho

In reference to its past audit reports on the oil and gas sector in the country, the Nigerian Extractive Industries Transparency Initiative (NEITI), yesterday, reiterated that the country lost a whopping 619.7 million barrels of oil valued at N16.25 trillion to theft between 2009 and 2020.

The agency added that between 2009 and 2018, the country also lost 4.2 billion litres of petroleum products from refineries valued at $1.84 billion.

Executive Secretary of NEITI, Dr. Ogbonnaya Orji, made the assertions yesterday in Lagos, at the commencement of the 2024 NEITI Board Retreat.

Orji warned that the global push for transition to renewable energy and the prospect of a permanent oil demand decline would have significant effect on Nigeria’s fossil fuels-dependent economy.

He stated, “Figures contained in our 2009 to 2020 audits have put Nigeria’s losses to crude oil theft over a 12-year period at 619.7 million barrels valued at $46.16 billion or N16.25 trillion.

“Similarly, between 2009 and 2018, the country also lost 4.2 billion litres of petroleum products from refineries valued at $1.84 billion.”

Orji pointed out that the losses and their attendant negative effects on the economy led to the constitution of a Special Panel on Oil Theft/Losses, which had NEITI as a member, to study the situation against current realities and make recommendations on how to fight the menace.

The executive secretary stated that the global transition from fossil fuels to renewable energy sources posed significant risks to countries that depend heavily on hydrocarbon-based natural resource-revenues for survival.

According to him, Nigeria is heavily dependent on oil revenues for survival. He said it fell within the ambit of the current NEITI board to support the government and citizens with timely policy decisions and strategies to deal with the unavoidable unfolding development in the extractive sector.

He maintained that the fear of the known risks in most of the affected countries far outweighed the potential unknown opportunities, except Nigeria and others affected utilised the immense opportunities within the Extractive Industries Transparency Initiative (EITI), its global network and multi stakeholder’s framework, to search for solutions.

Orji said, “At current dependency levels, Nigeria already faces significant threats to its economy from the prospect of a permanent decline in global demand for crude oil.

“Given the fiscal problems Nigeria has experienced, from short-term disruptions in crude oil and gas output, the much longer-term and permanent decline in demand would have far-reaching impact on the country’s economy.

“While the transition from carbon-based fuel will have significant long-term impact on Nigeria’s revenue and exports, the transition would also have other impacts on the economy. A direct consequence of the transition would be the loss of fossil fuel as a source of energy.”

Orji said in 2021 crude oil and gas accounted for 46 per cent of energy use and 78 per cent of electricity generation in Nigeria.

He stated that the transition would require significant financial investment for the country to generate renewable energy to replace energy previously generated from carbon fuels.

According to him, “This financing (and technological) burden is in addition to the equally significant amount of money that is required to close Nigeria’s current energy supply gap.”

Orji urged the current administration to revisit the report of the 2009 special panel on oil losses and theft and come up with a white paper for the implementation of the recommendations contained in the report.

On the Retreat of the National Stakeholders Working Group (NSWG), which also serves as the Board of NEITI, he said the meeting was structured as an induction programme that would expose the board members to the mandates and operations of NEITI.

The retreat, he explained, was expected to chart a course for the current board by aligning the agency’s mission of fostering transparency and accountability in Nigeria’s extractive industries with the yearnings of the citizens for impacts within the country’s contextual reality and its international obligations.

Orji stated, “This retreat is an opportunity to reflect on the role of NEITI in shaping a new direction for the extractive industry. This requires robust discussions that will bring about ideas to deal with the current challenges of oil theft, illegal mining, stealing of Nigeria’s precious minerals, pipeline vandalism, damage to the environment and the eco system and other governance challenges that have contributed to loss of revenues and investment opportunities in the sector should be addressed.”

In his remarks, Chairman of NEITI board and Secretary to the Government of the Federation (SGF), Senator George Akume, said the appointment and inauguration of the board was another positive statement of President Bola Tinubu’s open support and commitment to transparency and accountability in the management of the country’s economic resources, and especially given the mandate and objectives of the Nigeria EITI.

Akume, who was represented at the occasion by the representative of the North-central zone on the NEITI board, Mr. Mathew Adoli, expressed the present administration’s passion and commitment to the global EITI, the work of NEITI, and the visible impacts which EITI process had achieved so far in Nigeria.

The SGF stated the extractive industry’s strategic importance to Nigeria’s economy, saying for the current administration’s economic agenda, the sector holds the future.

Akume said transparency and accountability in the management of the national resources were equally central to the anti-corruption agenda of the current government.

He stated, “Nigeria is, therefore, irrevocably committed to the implementation of EITI in the oil, gas, and mining industries.

“Our faith in the EITI process is not just because it is key to these two key government agendas, but also because over the years, NEITI has demonstrated a high degree of competence, integrity and commitment to the values that the country requires to achieve economic growth and development in the sector through availability of reliable information and data required for national planning and reforms.

“It has also supported phenomenal revenue growth in the sector through meticulous application of EITI principles. At this where our national and global focus are on energy security, efficiency and justice in energy financing, renewables and control of emissions, the work of NEITI is so important to our country and particularly this administration to help us define our country’s engagement strategy on the energy transition debate through consultations, constructive engagement driven by reliable information and data.”

He reminded members of the board that their responsibility was to shape and provide strategic policy direction and oversight that would support NEITI management and the secretariat to continue to implement its activities smoothly without any distractions or interference.

Akume said it was also important that the board supported NEITI to preserve its corporate values, remain focused and committed to its values of transparency and accountability for the benefit of all the participants at the retreat and for future generations.

On behalf of Tinubu, the SGF used the opportunity to renew the commitment of the Nigerian government to the EITI implementation under the provisions of the NEITI Act 2007, and international standards and best practices under the EITI principles and emerging issues.

Such issues, he said, included Beneficial Ownership Disclosure, Contract Transparency, data mainstreaming, energy transition, open data, strong independent civil society engagement, broadened company engagement and wider stakeholders’ collaboration and partnerships, among others.

Akume told the NEITI board members, “It is against this background that I wish to stress that by this appointment, enormous responsibilities have been placed on your shoulders. I have no doubt that considering the calibre of the membership of this board, you will deliver on this important mandate.

“I, therefore, urge you all to consider your appointment as an opportunity to give back to your country and contribute to the progress and development of our extractive sector.”

In his goodwill message, Lagos State Governor, Mr. Babajide Sanwo-Olu, stressed the urgent need to re-examine the existing laws that vested control over oil and other mineral resources in the federal government as well as the exploitation of mineral resources in the country.

Sanwo-Olu, who was represented by the state’s Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, said that must happen to enable Nigeria fully harness its abundant natural resource endowment.

He maintained that the need for review of those laws was urgent if the federal government’s policy on Ease of Doing Business was to succeed, especially at the sub-national levels.

The governor added, “The review is also important to promote investments in the extractive industry and diversify our nation’s economy.

“To this end, the federal government and its agencies need to engage more with the private sector and sub-national governments in the development of our natural resource.

“The areas of engagement include solid minerals development, host community programmes, environmental sustainability, energy efficiency, domestic resource mobilisation, and poverty reduction initiatives, which are at the centre of realising the impacts of the global extractive industries transparency initiative in resource-rich countries like Nigeria.”

Peter Uzoho in Lagos and Sunday Aborisade in Abuja

Former Commonwealth Secretary-General, Chief Emeka Anyaoku, President of the Senate, Senator Godswill Akpabio, and Governor of Enugu State, Dr. Peter Mbah, yesterday, extended congratulations to media mogul and Chairman of THISDAY/ARISE Media Group, Prince Nduka Obaigbena, on the occasion of his 65th birthday.

In a statement, Anyaoku described Obaigbena as a great trailblazer in the advancement of media services across the African continent. He noted Obaigbena’s career as a transformative leader, who had made significant contributions to the industry.

Anyaoku stated, “Hail to a giant media mogul in Africa on his 65th birthday. Prince Nduka Obaigbena is a great trailblazer in the expansion of media services on the continent of Africa. From the publication of THISDAY Newspapers to ARISE Television broadcast in Nigeria and many countries abroad, to the promotion of African fashion and ARISE Play Originals Awards Contenders.

“Your footprint in the media and media-associated industry has been truly transformative. And so I celebrate you on this your birthday and wish you many more years in good health of your continued innovative career.”

Akpabio, in a congratulatory message by his Special Adviser on Media and Publicity, Hon. Eseme Eyiboh, described Obaigbena as a pillar of media development in Nigeria.

He said Obaigbena revolutionised modern journalism practice in the country, describing him as a trailblazer, astute businessman, and entrepreneur.

Part of the statement read, “On behalf of my family, constituents and the National Assembly, I wish to heartily rejoice with a trailblazer, an astute businessman and entrepreneur, and a respected son of the Niger Delta and Nigerian of repute, Chief Nduka Obaigbena, on the occasion of his 65th birthday.

“I am very proud of the Duke of Owa Kingdom for his ingenuity, vision and developmental strides in journalism and media, generally, both locally and internationally. My brother, I must say that you have raised the bar in the media industry and set a standard that is worth upholding.

“As you turn 65, it is my prayer that God Almighty will bless you with more decades of excellent health, strength and wisdom to continue to contribute your quota to the growth of journalism and media practice and the development of Nigeria, generally. Happy birthday and congratulations.”

Mbah described Obaigbena as a disruptive innovator in the African media industry.

In a congratulatory message, the governor called Obaigbena “a bold entrepreneur, who dares to dream big”.

The message read, “Hearty congratulations to a media entrepreneur par excellence, who has proven himself a disruptive innovator in the Nigerian and African media space, contributing immensely to the advancement of the industry.

“Over the years, you have proven yourself an insightful and trailblazing media mogul, who dares to dream big and has a tremendous staying power to nurture the dreams to fruition.

“From politics to economy, sports, entertainment, among others, you have positively impacted virtually every sphere of our national and, indeed, African life.

“This is, therefore, wishing you a happy birthday and many more returns in good health and excellence. Congratulations!”