TotalEnergies, others pledge support for Nigeria's gas development plan

TotalEnergies Nigeria, Shell Companies in Nigeria, Chevron Nigeria Ltd., and 

ENI Companies in Nigeria have pledged support to development of Nigeria's gas resources as the country's energy transition fuel.

The International Oil Companies (IOCs) made the pledge on Tuesday during a panel session at the 10th Practical Nigerian Content Conference organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenogoa, Bayelsa.

The News Agency of Nigeria (NAN) reports that the session had the topic: " Growth Levers and Investment Opportunities Arising from Nigeria's Petroleum Industry Act ( PIA)".

Mr Mike Sangster, Managing Director, TotalEnergies Nigeria, represented by 

Mr Victor Bandele, Deputy Managing Director, Deep Water, TotalEnergies, commended President Muhammadu Buhari for signing the PIA into law.

Sangster said TotalEnergies was committed to the global energy transition and achieving carbon neutrality in its operations by 2050.

He, however noted that oil and gas would remain relevant in the energy mix in the next five to 10 years hence there was need to optimise Nigeria's abundant oil and gas resources.

Sangster said TotalEnergies was in support of the plan to expand domestic gas utilisation, adding that the company had been able to reduce gas flaring significantly in its operations.

Also,  Mr Osagie Okunbor, Country Chair, Shell Companies in Nigeria, said the PIA had created the enabling environment for the development of Nigeria's oil and gas sector.

Okunbor said the adoption of gas as Nigeria's transition fuel by the Federal Government was a welcomed development and what was needed to take the industry forward.

Mr Roberto Daniele, Managing Director, ENI Companies in Nigeria lauded the government for declaring Year 2021 to Year 2030 as the Decade of Gas Development.

On his part, Mr Cosmos Iwueze, General Manager, JV Operations, Chevron Nigeria Ltd., said there was need to upgrade gas infrastructure in the country.

He also called for price deregulation in the gas sector as well as payment of legacy debts owed to gas suppliers by power generation companies.

Mr Bala Wunti, Group General Manager, National Petroleum Investment Management Services (NAPIMS) , expressed optimism that Final Investment Decisions (FIDs) would be taken on some critical projects by 2022.

Wunti said  some of the projects which were being executed by the IOCs and the Nigerian National Petroleum Corporation were suspended for years due to uncertainty in the oil and gas sector.

He said the enactment of the PIA had restored investors confidence in the industry and had repositioned Nigeria to optimise its hydrocarbon resources.

Mr Simbi Wabote, Executive Secretary, NCDMB said the projects attracted by the PIA would create a lot of opportunities for local content in the oil and gas industry.

"Without projects, there is no local content and if PIA is able to provide these opportunities, local content will benefit to a large extent," Wabote said.

 (NAN)

Nigeria Machine Tools partners firm to manufacture valves

AMPO POYAM Valves has announced a partnership agreement with Nigeria Machine Tools to establish a local subsidiary to design and manufacture highly engineered valves for the energy industry in Nigeria.

The company made the announcement in a statement posted on its website on Tuesday.

Mr Alex Eizmendi, Strategic Director, AMPO POYAM Valves, said the company was excited with its partnership agreement with Nigeria Machine Tools, based in Oshogbo, Osun State.

“As a world leader in highly engineered valves for the most severe services and applications of the energy industry, we are excited to engage with a leading manufacturer in Africa to bring our wide range of tailor-made valve solutions to the West African market.

“The agreement aims to further consolidate AMPO POYAM Valves’ position in the region while emphasising the company’s commitment to the African continent.

“We look forward to a long-term partnership that can serve as an appropriate model of support to our West African customers,” he said.

According to him, it will also support Nigeria’s national economy by the transfer of global top-tier technology and know-how to the African market.

“This partnership shows our complete faith as well in Nigeria’s industrial infrastructure,” Eizmendi added.

Speaking on the agreement, Mr Norbert Chukwumah, Vice Chairman, Nigeria Machine Tools, expressed optimism that the agreement would boost Nigeria’s manufacturing capacity and the nation’s economy.

“Since our establishment in 1980, we have remained passionate about proffering solutions to Nigerian’s and subsequently the continent’s industrial needs as well as transferring global technology and know-how to the local market.

“This partnership is set to boost not just the West Africa market but the continent’s at large, create job opportunities, up-skill our resources as well as encourage technology transfer.

“As part of the partnership agreement, we will provide state-of-the-art facilities, resources and latest available technology and equipment for the development of highly engineered AMPO POYAM Valves for the energy sector.

“We thank the Nigerian Content Development and Monitoring Board (NCDMB) for creating an enabling environment that facilitated this agreement,” he said.

Also, Mr Yomi Ademefun, Director, AMPO POYAM Valves Nigeria, said the scope of the agreement would focus on highly engineered valves manufacturing, testing, painting, and servicing for the oil, gas, petrochemicals, chemical, mining and power sectors.

Ademefun said the company had been in Africa since 2003 and had supplied more than 15,000 valves for strategic projects in different African countries.

He said that some of the projects include Dangote Refinery and Petrochemicals Project, Lagos, Greater Tortue-Ahmeyim FLNG, Angola LNG, Midor Refinery Upgrade Project and Damietta LNG.

He said they also included Skikda LNG Terminal, Coral South Development Project, Algiers Refinery Rehabilitation and Adaptation Project, among others. (NAN)

NUPRC boss seeks strategies for sustainability of Nigerian content in oil, gas sector

Engr. Gbenga Komolafe, Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

Engr. Gbenga Komolafe, Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has called for the development of strategies for sustainability of Nigerian content policies in the oil and gas sector.

Komolafe spoke on Tuesday at the ongoing 10th Practical Nigerian Content 2021 Conference in Yenagoa.

The conference, organised by the Nigerian Content Development and Monitoring Board (NCDMB), has as theme: ” Driving Nigerian Content in the New Dawn of the Petroleum Industry Act (PIA)”.

Komolafe said President Muhammadu Buhari’ssigning into law of the PIA had brought the much-desired stability to the Nigerian oil and gas industry, which would boost investors’ confidence.

He said the enactment of the Nigeria Oil and Gas Industry Content Development (NOGICD) Act had helped the development of indigenous capacity, resurgence of new businesses, creation of jobs and retention of wealth in the country.

Komolafe said despite these achievements, it was critical for stakeholders to devise strategies to optimise business recovery and sustainability of Nigerian Content policies in a post-pandemic era.

“This is to foster economic growth and development in the energy sector and the oil and gas value-chain for the benefit of all Nigerians and our stakeholders,” he added.

Komolafe maintained that the commission was committed to the sustainable development of Nigeria’s huge hydrocarbon resources in the overriding interest of the country.

To this end, he said the NUPRC would continue to enable upstream businesses and create additional revenue streams for government and the investors, for the development of Nigeria’s socio-economic infrastructure.

He said: “As we forge ahead, it is critical for the global oil and gas industry to remain efficient and innovative in responding to the emergence of renewables, to sustain the relevance of hydrocarbon resources in the global energy mix.

“Local content development and research is a major driver of most productive economies and a trigger for socio-economic development.

“It is a multi-professional area that requires all stakeholders to be closely synergised for effectiveness towards achieving national goals and objectives.”

Earlier, Mr Simbi Wabote, Executive Secretary, NCDMB, said the Practical Nigerian Content Conference was aimed at giving stakeholders the opportunity to discuss on how to improve local content in the oil and gas industry.

Wabote listed some of the achievements of the board to include establishment of the Nigerian Content Research and Development Council and the 10 years strategic roadmap.

He said it also includes the creation of $50 million dollars research and development fund, support for local and indigenous research breakthroughs among others.

Gas to power huge opportunity for Nigeria – Minister’s aide

Mr Justice Derefaka, Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, Chief Timipre Sylva.

By Solomon Asowata

Mr Justice Derefaka,Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, says Nigeria gas reserves will drag 120 million Nigerians out of energy poverty.

Derefaka  said  with gas becoming  dominant fuel for power generation globally,  it presented  a huge opportunity for Nigeria with its over 206TCF of proven gas reserves to utilise it  for socio-economic development of the country.

The News Agency of Nigeria (NAN) reports that he spoke at the 2021 Nigerian Association of Petroleum Explorationists (NAPE) Conference  in Lagos.

“We are unlocking the natural gas potential of Nigeria that  will drag over 120 million Nigerians out of energy poverty.

” The Federal Government remains  committed to transforming Nigeria through optimising of its gas resources and has adopted gas as the nation’s energy transition fuel,” he said.

According to him, the government has initiated policies such as the National Gas Expansion Programme (NGEP), the National Gas Flare Commercialisation Programme (NGFCP) and the National Gas Transportation Network Code (NGTNC).

Derefaka said the Declaration of  2021 to  2030 as ‘Decade of Gas’ by the Federal Government was aimed at stimulating the sector’s contribution to national development by deepening gas utilisation in the country.

He said: “As a nation, we are working on converting the massive quantity of  gas being flared now to energy for Nigerians with the commencement of the NGEP and the NGFCP.

“We are dealing with the energy poverty in the country.

“The major objective of the Muhammadu Buhari-led administration is to transform Nigeria into an industrialised nation, with gas playing a major role.”

Derefaka noted that the Central Bank of Nigeria N250 billion gas sector intervention fund would help optimal development of the sector within the next decade.

He added that the passage of the Petroleum Industry Act, Auto Gas Scheme as well as infrastructure projects such as the Ajaokuta-Kaduna-Kano pipelines were geared toward actualising the objective. (NAN)

Cost optimisation driving NNPC’s profitablity – NETCO MD

Mr Johnson Awoyomi, Managing Director, NETCO, presenting a gift  to Miss Mercy Obasi, winner of the raffle draw competition held at NETCO’S exhibition stand at the Nigerian Association of Petroleum Explorationists (NAPE) 2021 Conference on Tuesday in Lagos.

By Solomon Asowata

Lagos, Nov. 16, 2021 (NAN) Mr Johnson Awoyomi, the Managing Director, National Engineering and Technical Company (NETCO), has attributed the Nigerian National Petroleum Corporation (NNPC) profitability to cost optimisation.

The News Agency of Nigeria (NAN) reports that NETCO is one of the subsidiaries of the NNPC.

Awoyomi spoke during an interactive session with young engineers at the Nigerian Association of Petroleum Explorationists (NAPE) 2021 Conference on Tuesday in Lagos.

He said that cost optimisation was the driving force behind the profitablity of the NNPC.

Awoyomi said the enactment of the Petroleum Industry Act ( PIA) was a game changer for the petroleum sector with the aim of enhancing commercial, profit and sustainability of the NNPC and its subsidiaries.

The NETCO boss said: “In 2020, when others were facing loses, NNPC was able to break a 44 year jinx by declaring a N287 billion profit.

“What the management of the NNPC did was to improve cost effectiveness by ensuring that operating cost was reduced while also improving profit accruing to the National Oil Company.

“These huge profits were made as a result of the NNPC’s top management deployment of cost optimisation initiatives.”

Awoyomi noted that cost optimisation was very key in the face of challenges facing the industry caused by the COVID-19 pandemic and global energy transition.

He said going forward, the NNPC was targeting to reduce the contracting cycle from 18 months to six months and was working to reduce the Unit Operating Cost of crude oil production to 10 dollars per barrel.

Awoyomi, therefore, urged the young engineers to imbibe the principles of cost engineering devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis.

Dangote Group reiterates commitment to job creation

By Solomon Asowata

The Dangote Group has reiterated its commitment to creating jobs for Nigerians for overall economic development of the country.

Hajiya Halima Aliko-Dangote, Group Executive Director, Commercial Operations, Dangote Group made this known during the Dangote Special Day at the 2021 Lagos International Trade Fair (LITR) on Wednesday in Lagos.

The News Agency of Nigeria (NAN) reports that the fair is holding from Nov. 5 to Nov. 14 and has as its theme: “Connecting Businesses, Creating Value”.
Over 200,000 visitors are expected while about 1,500 exhibitors from 16 countries are participating in the 35th edition of the fair.

Represented by Mr Rabiu Umar, Group Chief Commercial Officer, Dangote Industries Limited, she said the theme of the fair was consistent with the company’s drive for innovation and value creation across Africa.

She expressed optimism that the fair would further expand awareness for the group’s products ranging from sugar, salt, tomato paste, noodles, pasta, fertiliser and its 650,000BPD refinery coming on stream soon.

“Our interest goes beyond profit making, to supporting government in job creation, reducing poverty, and engaging in unprecedented philanthropy.

“In achieving these, we respect the laws of the land where we operate.

“With all sense of humility, we can say that outside of government, the Dangote Group is the biggest employer of labour in Nigeria,” she added.

Earlier in her remarks, Mrs Toki Mabogunje, President, Lagos Chamber of Commerce and Industry (LCCI), said the LITF was aimed at facilitating trade, commerce and investment.

Mabogunje, represented by Mr Gabriel Idahosa, Chairman, Trade Promotion Board, LCCI, said it also aimed to advance industrialisation of Nigeria’s economy to engender a high growth rate of the Gross Domestic Product (GDP).

She commended the Dangote Group for its products and services which have touched the lives of millions of people across the African continent and beyond.

“We appreciate the passion of the group’s leadership in providing solutions to the problems governments have not been able to solve in areas of food sufficiency, housing, and energy.

“The group’s operations have created millions of jobs across Africa and contributed immensely to the GDP of many countries,” Mabogunje said. (NAN)

Indigenous coys invest $10bn in oil, gas production

By Solomon Asowata

The Independent Petroleum Producers Group (IPPG) says its members have invested about 10 billion dollars in oil and gas production in Nigeria from 2003 till date.

The group, made up of 24 indigenous oil and gas companies, also pledged to support the smooth implementation of the Petroleum Industry Act (PIA) to attract more investment to the sector.

Mr Abdulrazaq Isa, Chairman, IPPG, made this known during an engagement between the group and Mr Gbenga Komolafe, Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday in Lagos.

Isa said the indigenous oil companies contribution to Nigeria’s oil production was 252,000 barrels per day and 650MMscf/d of gas.

According to him, this translate to 14 per cent and nine per cent of national oil and gas production respectively.

He expressed optimism that the companies would be responsible for 100 per cent of 1.2 million barrels per day refining capacity in the near future.

Isa said the LPG fully aligns with the government’s “Decade of-Gas” initiative as it seeks to-utilise the nation’s abundant gas resources to power the economy and address underlying issues.

“We are fully aligned to global decarbonisation initiatives and adoption of renewable energy.

“With the current global shift to cleaner energy sources, Nigeria can utilise its domestic gas reserves as a lower-carbon bridge to energy transition.

” Ultimately, gas must serve as the transition feedstock for Nigeria and facilitate the transition to larger scale renewable energy.

“Government international advocacy drive is required for gas to be considered as a transition fuel in order to attract investment into the sector,” he said.

Isa listed some of the challenges faced by the companies to include gas pricing, crude oil theft, security, high operating cost, long contracting cycle and crude handling charges.

He said with the ongoing divestment by some International Oil Companies due to global energy transition, it was imperative that the government set up an energy bank to finance projects in the oil and gas sector.

Earlier, Komolafe said indigenous companies were critical to the smooth implementation of the PIA signed by President Muhammadu Buhari on Aug. 16.

He said the maiden engagement with the group was to solicit their support toward the implementation of the PIA and to listen to their challenges as they affect the industry.

“Our meeting is to formally unveil the NUPRC to you and to familiarise and identify with you as a regulator business enabler inupstream operations.

“This is coming at a critical point in the industry when the clamour from the global community is focused on energy transition from fossil fuels to cleaner energy,” Komolafe said.

He noted that the decisions taken at the ongoing United Nations Climate Change Summit in Glasgow, Scotland, could affect securing of funds for critical oil and gas infrastructure in Nigeria.

Komolafe assured the IPPG that the commission would be a fair and transparent 21st century regulator geared towards optimising revenue for government and investors.

The News Agency of Nigeria reports that the IPPG was established in 2015 as an association of indigenous Exploration and Production (E&P) companies with a current membership of 24 companies.

The group was set up to promote and advance the development of the Nigerian petroleum industry. (NAN)

NUPRC seeks oil producers support for smooth implementation of PIA

By Solomon Asowata

Lagos, Nov. 3, 2021 (NAN) The newly created Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has solicited the support of the Oil Producers Trade Section (OPTS) for the smooth implementation of the Petroleum Industry Act (PIA).

Mr Gbenga Komolafe, Chief Executive Officer, NUPRC, made the call in his maiden meeting with top OPTS members on Wednesday in Lagos.

The News Agency of Nigeria (NAN) reports that the OPTS comprised of 29 companies who are the major players in Nigeria’s oil and gas sector.

Present at the meeting were Mr Rick Kennedy, Chairman, OPTS and Managing Director, Chevron Nigeria Ltd., Mr Osagie Okunbor, Country Chair, Shell Companies in Nigeria and Mr Mike Sangster, Managing Director, TotalEnergies Nigeria.

Others were Mr Richard Laing, Managing Director, ExxonMobil Nigeria Ltd. and Mr Roberto Daniele, Managing Director, ENI Companies in Nigeria.

Komolafe noted that the OPTS was a critical stakeholder and partner in the development and operations of upstream assets in the Nigerian oil and gas industry.

He said the NUPRC was established following the signing of the PIA by President Muhammadu Buhari on Aug. 16 and was aimed at optimising the sector’s contribution to national development.

“The implementation of the PIA is very germain to the president and this current administration and he has given us a period of six to 12 months to begin to deliver some of the key deliverables.

“It is against this backdrop that I have decided to host this meeting in Lagos to reinforce my acknowledgment of your association and to solicit your collaboration as industry stakeholders,” Komolafe said.

He noted that the meeting was coming at a critical time when the clamour from the global community was focused on energy transition from fossil fuels to cleaner energy.

According to him, this has resulted in funding challenges for exploration activities being faced by the companies.

He said the meeting was to familiarise the commission with the OPTS members and listen to the challenges hindering optimisation of key areas in the upstream sector.

“Permit me also to say that this is the first in the series of engagements with you as our vision is to build a 21st century regulator that will be fair, just and be a critical business enabler in the upstream petroleum sector.

“It is in this wise that we urge you all to join hands with us in building confidence in the industry for robust investment,” Komolafe said.

Responding, Kennedy while congratulating Komolafe on his appointment, assured him of the support and cooperation of the OPTS in achieving the mandate of the commission.

Kennedy said the establishment of the commission forms a major milestone in the reforms being made in the Nigeria’s petroleum sector, especially the passage of the PIA.

He, however, noted that the OPTS would need collaboration with the commission regarding some of the key timelines in the implementation of the PIA.

Kennedy said the areas included incorporation of development trusts for host communities, installation of flare meters as well as gas flare and monetisation plan.

He said the challenges faced by the companies were high operating cost, security, lengthy contract cycle, multiple levies and taxes, among others.