09/12/2023
*BREAKING; Dangote Refinery begins production, receives first 1million barrels of crude shipment.
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07/12/2023
💥House Of Reps Seeks Improvement Of Local Content In Nigeria's Oil And Gas Production.
22/11/2023
Reps approves MTEF, N7.8trn borrowing plan for 2024; set daily oil production level of 1.78mbps, 1.80mbps, 1.81mbps🎈
08/11/2023
NNPC Signs Green Economy Development Agreement with Niger State Government
The Niger State Government's Green Economy Initiative has drawn the attention of international investors, with NNPC Ltd leading the way by signing a groundbreaking Green Economy and Energy Development Partnership agreement. This collaboration aims to drive the development of four unique projects:
1. A Greenfield Hydroelectric power project.
2. Mega Solar parks in institutions and home solar systems for 250,000 households out of the 800,000 households in Niger state.
3. Establishment of a 500 million liters Ethanol Plant with associated cultivation of Maize, Sugarcane, and Sweet Sorghum on 100,000 hectares of land in Niger state, producing over 500,000 tons of crops to fuel the ethanol plant.
4. NNPC's commitment to plant 135 million trees on 100,000 hectares of land as part of its 2030 net zero targets and climate protection efforts.
The Governor of Niger state, Mohammed Umaru Bago is resolute in planting 1 billion trees on 1 million hectares of land over the next eight years.
This ambitious plan has garnered the support of NNPC, the largest oil and gas company in Africa. Niger State aspires to collaborate with other global oil and gas, shipping, airlines, cement companies, and the United Nations and its agencies to achieve the 1 billion trees target.
Source: Abdullberqy U Ebbo
Special Adviser to the Governor on Digital Media and Strategy.
13/10/2023
Minister of Solid Minerals Development, Dr Dele Alake,declared that governors do not have the constitutional powers to ban mining activities.
Alake made the statement during a pre-event press conference in Abuja ahead of the 8th edition of the annual Nigerian Mining Week 2023 slated for October 16-18,2023 in Abuja.
He pointed out that the governors know that mining remains exclusively for the federal government in the Constitution, hence it is not under the purview of a State Governor as far as the enactment laws, and regulations of operations of solid minerals are concerned.
Therefore, the Minister cautioned State Governors to desist from taking laws into their hands to regulate the sector and said it is illegal to do so, which also they are not constitutionally empowered to regulate oil and gas activities.
He said: “The state’s ban on mining activities across the court is a point that is really sore. And it’s a constitutional matter. I want to use this opportunity to get to the entire Nigerian public that no state and I repeat, no state has the authority to interfere in mining operations, no state has the authority and it is not it’s a no-brainer. It’s a constitutional matter.
“Mining belongs exclusively in the purview of the federal government, according to the Constitution. It is in the exclusive legislative list. It is not in the residual.
“It is not in the concurrent it’s in the exclusive legislative list. Every item on the exclusive, legislative list belongs to the federal government.
“There is no doubt about that. All items on the residual list belong to the states and all items in a concurrent section belong to both, but mining like oil and solid Minerals belongs in the exclusive legislative, therefore, it is the federal government that has the authority.
“Legal authorities as supported by the Constitution make laws regulations and operationalization of the Solid Minerals resources of Nigeria.
“Now, because of the peculiar nature of solid minerals, because of the involvement of the local communities or the host communities, there is an engagement even in the regulatory framework of mining operations.
“There is an engagement close with the host communities and the federal government through the Ministry of Solid has been engaging with host communities in fact, in the licensing operations or processes or procedures, there is a provision for the engagement with the host communities. Now these host communities also belong in the various states.”
“Mind you we are not against any state that wants to engage a mining operations as long as it follows due process.
“If any state wants to engage in mining, it can form its own Special Purpose Vehicle, SPV, apply for a mining licence from the office of the Minister for solid minerals go through the due process and be so licensed if it meets all the criteria. Such a state is like any company or like any individual, institution, or corporate body.
“But for a State to wake up and say it is regulating mining activities is like a state waking up to ban oil exploration it is downright illegal.
13/10/2023
Federal Government is working frantically on measures aimed at ensuring that oil marketers in the country resume importation of Petrol, to achieve seamless storage, supply and distribution of the product across the country.
A source disclosed that the Federal Government was working at a number of short term measures to enable oil marketers access foreign exchange at a rate that will not cause serious dislocation in the price of fuel.
“For strategic reasons, the details of this short term measures will be kept off the public space for now. But rest assured that government is not comfortable with a situation where NNPC will be the sole importer of the product as this will defeat the essence of the deregulation policy of the government.” A source said.
It was also learnt that the Federal Government, as a long term measure, is working on some fiscal and monetary re-engineering that will help to firm up the Naira, going forward.
“Of course, it is obvious that the speculative exchange rate of 1000 to a dollar cannot be the actual value of the Naira. A multi-pronged approach is being adopted which will help to firm up the Naira and which, ultimately will enable the marketers to access the dollar at a rate that will not only be sustainable, but will also be profitable for them to import fuel to ensure seamless supply and distribution throughout the country. NNPC cannot be the sole importer of fuel in a deregulated market.” A source added.
Federal Government will be coming up with initiatives that will address the issue of the foreign exchange frontally in the weeks ahead.
“The government has noted the request of the marketers. The foreign exchange conundrum is being addressed, even though the issue of crude oil price is not one the government can influence one way or the other. But the oil marketers must be back in business and their Depots must be filled with product.”
13/10/2023
Nigeria’s crude oil output reached an all-time high of 1.35 million barrels per day in September 2023, the country’s greatest level since this year.
According to the most recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country’s output in September was nearly 14% more than in the preceding month of August 2023.
According to data from the commission, Nigeria’s crude oil output (excluding condensates) was precisely 1,346,562 barrels per day in September, representing a 165,429bpd increase over the 1,181,133bpd produced in August of this year.
Further examination of NUPRC data revealed that the country’s oil outputs in January, February, and March were 1,266,659bpd, 1,292,240bpd, and 1,266,737bpd, respectively.
In the months of April, May, June and July, Nigeria produced 1,004,392bpd; 1,189,332bpd; 1,260,928bpd; and 1,089,089bpd respectively.
The above crude oil production figures therefore showed that Nigeria’s oil production in September was the highest output so far recorded by the country this year.
The Federal Government has been making concerted efforts to shore-up the country’s oil production, which is far below the about 1.8 million barrels per day quota approved for Nigeria by the Organisation of Petroleum Exporting Countries.
In a related event, the NUPRC expressed great optimism that the asset transaction from Exxon Mobil to Seplat Energy may proceed. Gbenga Komolafe, the CEO of NUPRC, revealed this in Cape Town during Africa Oil Week.
The $1.28 billion sale, which some in the industry said was crucial to attracting much-needed investment into Nigeria’s oil and gas sector, was rejected by the regulator last year.
06/10/2023
The Return of Petrol Queues:
Fuel scarcity looms as landing cost of petrol hits N720/litre
05/10/2023
Uproar in oil sector after NNPC favours MRS, AA Rano again
Oladehinde Oladipo
October 5, 2023
The Nigerian National Petroleum Company Limited (NNPC) has awarded new contracts to four companies, including two downstream firms, for the rehabilitation of the country’s pipelines, sparking criticisms from industry operators.
BusinessDay findings showed Oilserv Limited, A.A RANO Nigeria Limited, Macready Oil & Gas Service Company Limited, and MRS Oil Nigeria Plc emerged as preferred bidders for the maintenance of the pipelines, through the build, operate, and transfer financing model to facilitate crude supply to the refineries and products evacuation from them.
The pipeline network consists of 4,315km of multi-product pipelines and 701km of crude oil pipelines, interconnecting 22 fuel depots, the country’s four refineries, and the jetties at Atlas Cove and Warri.
Industry experts who spoke to BusinessDay said the developments will give retailers that won pipeline contracts a competitive advantage over others with access to a reliable and secure supply – a development they described as contrary to global standards.
“It’s an anomaly for downstream retailers to win pipeline contracts. In the US market, pipeline operators are separated from retailers,” a business leader in Nigeria’s energy sector said. “Whether by accident or deliberate regulatory constraint, no single company sits astride the entire value chain.”
BusinessDay’s findings showed some of the biggest United States pipeline companies such as Kinder Morgan, Williams Company, and Colonial Pipeline are midstream operators with no retail outlets.
“Retail companies with no antecedents of handling pipeline contracts should not be winning contracts for million-dollar pipeline projects in Nigeria. It gives room for exploitation,” the source said.
Another senior oil executive who spoke to BusinessDay said the new pipeline deals showed the transition from state monopoly under the NNPC to private monopoly as some parts of the country may be underserved.
“The market has a concern that in the event of any supply shortfall, these retail operators with pipeline contracts may have preferences for their own retail outlet which is not good for the market,” another industry source told BusinessDay.
BusinessDay’s findings revealed the country’s oil behemoth selected the four companies as preferred bidders on a LOT basis for the rehabilitation of the country’s idle pipelines.
It was learnt that Oilserv Limited emerged as the preferred bidder for LOT 1, which comprises the Bonny-Port Harcourt Crude Oil pipeline (54.8km), Port Harcourt-Aba–Enugu Products Pipeline (210km), Port Harcourt depot, Aba Depot and Enugu Depot. Port Harcourt Refinery–Bonny Export Terminal Products Pipeline (35km) Bonny Export Terminal–Loading Jetty Products Pipeline (32km), Bonny Export Terminal facilities.
A.A Rano won the bid for LOT 2, which comprises Escravos–Warri Crude Oil Pipeline (60km), Warri-Benin Products Pipeline (90km), Benin-Ore Products Pipeline (110km), Warri Depot, Benin Depot and Ore Depot.
Macready Oil & Gas Service Company Limited was selected for LOT 3, which comprises Warri-Kaduna Crude Oil Pipeline (604km), Kaduna-Kano Products Pipeline (224.3km), Kaduna-Jos Products Pipeline (166.4km), Kaduna-Suleja Products Pipeline (170.8km), Kaduna Depot, Kano Depot, Jos Depot and Suleja Depot.
Nigeria, others face sluggish growth on debt burden, joblessness - World Bank
MRS Oil Nigeria Plc won LOT 4, which comprises Atlas Cove–Mosimi/Satellite Products Pipeline (72.8km), Mosimi–Ore Products Pipeline (151.3km), Mosimi–Ibadan Products Pipeline (79.1km), Ibadan-Ilorin Products Pipeline (168.9km), Atlas Cove Depot, Mosimi Depot, Satellite Depot, Ibadan Depot, and llorin Depot.
“LOT 4 is a fairly well-developed market with NNPC already incurring the capital cost for infrastructure before transferring to the preferred winner. From a competitive point of view, it gives the winner an advantage compared to others,” Kelvin Atafiri, the CEO of Cavazanni Human Capital Limited, said.
In 2021, MRS and AA Rano were among the companies selected for Nigeria’s crude-for-fuel swap contracts for one year.
The contracts, known as direct sale, direct purchase, are coveted since they are used to supply nearly all of Nigeria’s petrol needs as well as cover some of its diesel and jet fuel consumption.
Efforts to get responses from AA Rano and MRS as at time of publication proved abortive.
“I would have expected core engineering and procurement construction companies would be selected, not retailers,” he added.
NNPC’s pipeline network was designed to efficiently move crude oil from terminals located at Escravos and Bonny to Warri Refining and Petrochemical Company and Port Harcourt Refining Company, respectively.
However, poor maintenance and vandalism have left many government-owned fuel depots and pipelines idle for years, a development that has caused the country to increasingly resort to private tank farms and road tankers for the supply and distribution of products.
“There is a big concern about where NNPC will get the crude oil to supply the refineries that will get the fuel tankers off the road,” Niyi Awodeyi, CEO of Subterra Energy Resources Limited, said.
The administration of President Bola Tinubu has said that by next year, the country will be a net exporter of petroleum products with the rehabilitation of refineries in the country, starting with the Port Harcourt refinery. However, antecedents have led to a trust deficit between the public and the government.
In September 2022, Timipre Sylva, the then minister of state for petroleum resources, said the Port Harcourt refinery would become functional by the end of last year. Six months later, he said the plant would commence refining activities before the end of the second quarter of 2023. This is the third quarter of the year and the projection moved by another quarter.
“To be candid, in the short term, the drive to ramp up production immediately is security to ensure zero loss to theft and vandalism. And I wonder if the government can achieve that,” said Jide Pratt, country manager of Trade Grid.
01/10/2023
BREAKING: President Tinubu announces the removal of VAT on diesel for the next 6 months.
29/09/2023
Petroleum Minister Inspects Project At Warri Refinery
The Minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, on Friday inspected the ongoing Quick-Fix Project in the Warri Refinery, Delta State.
The Nigerian National Petroleum Corporation Limited made this known on its X (Twitter) page on Friday.
Photos from the inspection were captioned, “The Minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, has just arrived in Warri Refinery for the 13th Refineries' Rehabilitation Steering Committee Meeting.
“Accompanied by the Group CEO, NNPC Limited, Mr. , the Minister will also inspect work progress on the ongoing Quick-Fix Project in the Refinery.”
22/09/2023
PMS dealers stated on Thursday that the pump price of petrol should be between N890 to N900/litre based on the fall of the naira against the United States dollar and the surge in the price of crude in the international market.
The forex crisis and the recent rise in crude price, according to oil marketers, have made it impossible for petrol price to still remain at N617/litre. They insisted the government had quietly reintroduced fuel subsidy.
“I told you earlier that there is no way that the government will sustain the price of petrol at N617/litre without paying subsidy on it, going by the continued fall of the naira,” the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Chinedu Ukadike
He added, “The dollar is almost N990 at the parallel market currently, and you can see the effect of this on the pump price of diesel. Diesel is close to N1,000/litre, so the retail price of PMS should be around N890 to N900/litre.
“Therefore, it is better the government assists the masses by paying subsidy. From our records, in the United States, the super product or petrol is sold around $3.9, which is close to about N3,000/litre.
“The premium product is sold at about $2.89, which is over N2,000/litre. And if you check in other African countries you will find out that the product is being sold at between N1,200 and N1,500. But going by the forex rate in Nigeria, it should be around N900/litre.”
It was gathered that the subsidised ex-depot price of petrol as sold by NNPCL, was between N585 and N600 depending on area of purchase.
By subtracting the ex-depot cost of N600/litre from the projected unsubsidised rate of N890/litre, that the government may have been spending about N290/litre as subsidy currently.
Commenting on the government’s decision to reportedly reintroduce fuel subsidy, the National Secretary, IPMAN, Chief John Kekeocha, said it was obvious the price of petrol was now higher than N617/litre.
He commended the government for considering the plights of its citizens, but stressed that the government should come out clean on subsidy.
“The government must come out clean on subsidy. We know it is not possible to be running full deregulation at the current price of petrol. However, it is commendable that they are considering the plights of the masses,” the IPMAN official stated.
22/09/2023
Petrol Prices Hoghest In North-East, Lowest In South-South
North-East: N637
North-Central: N631
South-East: N627
South-West: N625
North-West: N623
South-South: N617
21/09/2023
"NIGERIA HAS THE RESOURCES AND THE LEADERSHIP, WE HAVE NEVER BEEN MORE READY FOR BUSINESS," PRESIDENT TINUBU TELLS GLOBAL ENERGY INDUSTRY
• EXXONMOBIL PLEDGES NEARLY 40,000BPD IN NEW NIGERIAN PRODUCTION IN THE SHORT-TERM
President Bola Tinubu played host to a delegation consisting of the global leadership of an Oil & Gas transnational giant, ExxonMobil, on Monday in New York, where he made his position known that Nigeria is no longer settling for crumbs and leftovers on the investment agenda of the world's most prolific energy conglomerates, saying "Nigeria has never been more ready for business than it is now."
President Tinubu says that, following an illustrious private sector career as a professional accountant in the oil & gas industry, he has proven his capacity to take difficult decisions as President and is best prepared to solve problems and crush all bottlenecks standing in the way of new and large-scale capital flowing into Nigeria's oil & gas industry.
"The knotty issues require direct supervision on my part. Despite many contending obligations, I will sit down and oversee the process of removing these encumbrances to job and wealth creation for the Nigerian people. We know the industry. We grew up in it. We are positioned to solve the problems, and we are pragmatic, and we will solve the problem," the President firmly assured.
ExxonMobil President of Global Upstream Operations, Liam Mallon, assured President Tinubu that he is aware of the new and personal commitment that the President is bringing to bear on behalf of Nigeria and is well placed to reciprocate the President's efforts with new investment as he pledged new production of nearly 40,000bpd in its Nigerian operations in phase one of a new investment push in Nigeria.
"What you told us was that your team would collaborate with us, and that has proven true. We have made significant progress since we last met. We are growing our production, and we are working hard on expanding in the deepwater production. We appreciate your efforts, and we will respond in kind. The time is right. Thank you for your leadership," the ExxonMobil President stated.
Chief Ajuri Ngelale
Special Adviser to the President
(Media & Publicity)
September 19, 2023
26/08/2023
Minister of Power, Adebayo Adelabu, has promised Nigerians that they will witness improved power supply across the nation soon.
Mr Adelabu made the promise on Friday in a chat with newsmen when he arrived at the Ladoke Akintola Airport, Alakia Ibadan.
The minister, who received a rousing welcome from his political associates, supporters, family and friends, noted that his ministry was the most criticised sector and so important to the economic emancipation of Nigerians.
Minister said he would do everything possible to make sure the Ministry, under his leadership, laid a good foundation for 24/7 power supply in Nigeria.
“We know it’s not something that is achievable overnight but we believe that once the foundation is laid, others can also build on it.
“I can tell you that between six months and one year, we will start seeing improvement in the power sector.
“Within the next six months, there would be major addition to the national grid, in terms of hydro power plant, that is the Zugeru 700mw in Niger state, that is about to be completed. This will be the biggest one in Sub-sahara Africa when completed.
“The Kanji dam that we all grew up to know supplies about 460mw, Sororo dam supplies about 520mw.
“I will do everything to ensure that Zugeru power plant is inaugurated and subsequently add 700mw to the national grid,” he stated.
26/08/2023
Port Harcourt refinery to be back on stream in December.
- Heineken Lokpobiri
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