Ex-trade minister backs full deregulation of petroleum downstream sector

Mr Okechukwu Enelamah, former Minister of Industry, Trade and Investment, on Thursday said the full deregulation of the petroleum downstream sector would allow the industry to reach its full potential.

Enelamah also advised the Federal Government to look for a win-win solution to the issue of removal of petrol subsidy, being the right thing to do from an economic perspective.

The News Agency of Nigeria (NAN) reports that Enelamah spoke at the 18th Annual Memorial Lecture of Chief Aret Adams, the first Group Managing Director of the Nigerian National Petroleum Corporation (NNPC).

The lecture  had as its theme: “Total Deregulation of Nigeria’s Downstream Oil and Gas Sector: Challenges and Opportunities.”

The former minister, who chaired the lecture, said  a lot of capital would be freed up for developmental purposes if the sector was fully deregulated.

He noted that the deregulation of the telecommunications sector which had transformed to a $20 billion industry in less than 20 years was a pointer that same could be achieved in the petroleum sector.

According to him, true competition, independent market regulator, consumer protection and investor protection are some of the factors that can help achieve a fully deregulated petroleum sector.

Delivering his lecture, Mr Tunji Oyebanji, Chairman, Major Oil Marketers Association of Nigeria (MOMAN), said Nigeria lost $13 billon in 2019 to non-functional refineries.

Oyebanji noted that if the four NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.

He said : “Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space.

“Total deregulation is more than just the removal of price subsidies, it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain and resulting in the growth in the nation’s downstream petroleum sector as a whole.”

Oyebanji said that though the government had announced the removal of petrol subsidy in March 2020, with the price of crude  oil above $60 per barrel, the N162 the product was currently being sold was below the landing cost.

He said NNPC as the sole importer of petroleum products was currently defraying the cost through ‘under recovery”, stressing that this was not sustainable in the long run.

The MOMAN chairman also disclosed that Nigeria had the cheapest fuel price among its African neighbours, which encouraged smuggling of the product across its borders.

He said deregulation would increase more investment especially with the taking off of the African Continental Free Trade Agreement (AfCFTA) which would give Nigerian businesses opportunities to expand.

Oyebanji said the coming of stream of the 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and others would transform Nigeria into a net exporter of crude oil  in the near future.

In his address of welcome, Mr Charles Osezua, Chairman, Board of Trustees, Aret Adams Foundation, said the late NNPC boss had over 32 years ago championed the campaign for full deregulation of the downstream sector.

“Aret fought for the removal of subsidy and wanted to release the creative and entrepreneurial capacities of Nigerians.

“There was resistance which led to his removal as the GMD which was termed ‘national interest’, but 32 years later, the discussion of subsidy removal remains topical and emotive, ” Osezua said. (NAN)

Passage of PIB will unlock several midstream gas opportunities - Sylva

 Chief Timipre Sylva, Minister of State for Petroleum Resources says the passage of the Petroleum Industry Bill (PIB) into law will unlock several midstream gas opportunities and enhance domestic gas utilisation.

Sylva said the Federal Government was also ready to collaborate with all stakeholders to initiate national activities that would make Nigeria actualise its declaration of 2021-2030 as the ‘Decade of Gas Development’.

The News Agency of Nigeria (NAN) reports that Sylva spoke on Thursday at the ongoing 12th Nigerian Gas Association (NGA) International Conference 2021.

The conference had the theme: "Powering Forward: Enabling Nigeria’s Industrialisation via Gas."

The minister who was represented by his Technical Adviser, Gas Business and Policy Implementation, Mr Justice Derefaka, noted that Nigeria's

over 200TCF proven reserves of natural gas must be utilised for economic growth and development.

He said: Our efforts will continue to focus on gas to transmute Nigeria from the conventional dependence on white products to a cleaner, more available, accessible, acceptable, and affordable energy use in gas. 

"This will not only cushion the effects of current deregulation but also create enormous job opportunities for Nigerians. 

"For this reason, we are proposing grand fathering in the new PIB.

The proposed PIB now before the National Assembly when passed into law will also unlock several midstream gas opportunities to further enhance domestic gas utilisation

"The revised PIB framework is based on core principles of clarity, dynamism, neutrality, open access and fiscal rules of general application. "

According to him, the priority of  President Muhammadu Buhari's administration is the

development of Nigeria’s vast gas resources and strengthening of the gas value chain as encapsulated in the National Gas Policy of 2017. 

Sylva said the president had outlined

some strategic priorities for the ministry aimed at stimulating  the sector to foster the sustainability of the Nigerian economy, enhance energy availability, create well paid jobs, and take millions of Nigerians out of poverty.

"As a government, we are pursuing programs to grow our gas economies through the development of industrial and transport gas markets, in juxtaposition with gas-to-power initiatives," he added.

He listed the achievements of the government to include the construction of the 614km Ajaokuta-Kaduna-Kano (AKK) pipelines, inauguration of the National Gas Expansion Programme and the commencement of the Nigeria Gas Flare Commercialisation Programme. (NAN)

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NASS pledges support to quick completion of Dangote Refinery

The National Assembly Ad-hoc Committees on the Petroleum Industry Bill (PIB) on Tuesday pledged their support to the quick completion of the Dangote Refinery in Lagos because of its importance to the nation's economy.

The committees also assured Nigerians on the quick passage of the PIB which according to them would make the Nigerian oil and gas industry operate in line with global best practices and attract investors.

 

The committees made the pledge during an inspection visit to the sites of the Dangote Refinery, Petrochemicals Complex, Fertiliser Plant and Subsea Gas Pipeline projects in Ibeju Lekki, Lagos.

The lawmakers  were led  on the visit by Sen. Sabo Nakuda, Chairman, Senate Committee on PIB and Mr Mohammed Monguno, Chairman, House Committee on PIB respectively.

They were received by Mr Devakumar Edwin, Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Group.

Speaking with newsmen, Nakuda said refineries were part of downstream operations of the Petroleum Industry, adding that the committee intend to visit all the refineries in the country.

Nakuda said : "We were in Kaduna yesterday and today we are in Lagos. We will also go to Port Harcourt and Warri to know what the industry entails and what needs to be captured in the PIB.

"I am totally overwhelmed with what I have seen at the Dangote Refinery. 

Looking at this Investment here, it is unbelievable that a single individual can confront this project at this time of our economic life.

"I am sure that by this time this refinery come on stream that even our currency, the Naira is going to be strengthened because we are spending millions of dollars on importing petroleum products. 

"Here we have an edifice that can supply the country's petroleum needs and we as a National Assembly are going to make sure that we give him all the necessary support because it is like a matter of life and death.”

On the PIB, he said the lawmakers were working assiduously to ensure its passage within the next two months.

Also speaking, Monguno said the bill would make the nation's oil and gas industry competitive and attract the much need investments.

"The world is moving away from oil and gas towards renewables and as such there is need for us to maximise our potential that is yet to be exploited particularly with regards to crude and condensates," he said.

According to him, Nigeria has between 10 and 20 years to judiciously utilise its oil and gas resources to develop its infrastructure and transform the country's economy.

He lauded the President of the Dangote Group, Dr Aliko Dangote for having the foresight in embarking on the projects, adding that it would generate a lot of multiplier effects in the downstream sector.

"It will create employment for our teeming unemployed youths, 

diversify our economy and help us to boost our foreign exchange reserve," the lawmaker added.

On his part, Edwin lauded the commitment of the government and the legislature to pass the PIB this year.

He said the three million Metric Tonnes Per Annum Fertiliser plant would improve the agricultural sector and stop importation of fertiliser into the country.

Edwin noted that the 650,000-barrels-per-day refinery could meet 100 per cent of the Nigerian requirement of all liquid petroleum products and would have surplus for export.

"The refinery project will create 1,600 permanent jobs and 100,000 indirect jobs. It will save Nigeria over $9.8

9 billion annually through import substitution, " he said. (NAN)

Marketers seek FG’s intervention to halt hike in cooking gas prices

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has appealed to the Federal Government to urgently intervene in arresting the galloping hike in the prices of cooking gas across the country.

NALPGAM made the appeal in an open letter jointly signed by its Executive Secretary, Mr Bassey Essien, and its National Public Relations Officer, Mr Raphael Aguele, on Friday.

A copy of the letter which was addressed to Chief Timipre Sylva, Minister of State for Petroleum Resources, was obtained by the News Agency of Nigeria (NAN) in Lagos.

NAN reports that the price of 12.5kg of cooking gas has increased from N3,300 to N4,200 and N5,500 at retail outlets in the last few months.

NALPGAM appealed to the government to put in place a policy that would encourage full domestication of Liquefied Petroleum Gas (LPG), also known as cooking gas.

The marketers said every local producer of gas should be mandated to domicile all molecules produced in the country as against the situation of being a major exporter of gas produced as well as a major importer of gas.

“If all molecule of gas produced should be domesticated, the local markets will be adequately supplied and prices stabilised.

“By this way, the concerted efforts of the Federal and State government agencies to encourage the use of gas would not be in vain.

“Thus, we urge your urgent intervention to address the plight of stakeholders; else all the expansion programmes of the government would be an exercise in futility,” NALPGAM said.

The marketers noted that the government in line with its aspiration to deepen gas utilisation in Nigeria, had urged investors to harness investment opportunities in the entire gas value chain to bridge the gap in other domestic gas usage in the country.

They said the significant growth in local consumption of LPG had been hinged on many Nigerians converting to cooking gas for domestic and commercial uses.

According to NALPGAM, the country’s local consumption which hitherto stood at about 70,000 metric tonnes as at 2007 had grown to over one million metric tonnes as at end of 2020.

“A major challenge with LPG utilisation in Nigeria is the issue of inconsistent availability and ever galloping gas price with the attendant depot landing costs and other associated charges.

“The domestic availability has been skewed majorly to 65 per cent import dependence, while only 35 per cent has been attributed to local supply.

“The price of LPG has exponentially skyrocketed over the last few months.

The cost of LPG early in 2020 was N3.4 million per 20MT truck, but by December 2020, it had gone up to N5.4 million; N5.6 million in January, 2021 and N6 million per 20 MT by February.

“The galloping price increases have not only choked marketers but have also strangulated consumers, thus making a mockery of the whole gas expansion plan of the government,” the marketers said.

They noted that the gains made in the huge conversion rate to LPG usage which had moved the per capita consumption from 1.5kg to over 3kg have gradually reduced because of the domestic costs of LPG.

The marketers said a majority of users of LPG were gradually reverting to the use of kerosene and firewood with the obvious known health implications.

NALPGAM also alleged that LPG operations at the Nigerian Petroleum Development Company ( Oredo IGHF Plant), Ologbo, Edo State were dominated by “middlemen”.

They said: “These middlemen without identifiable LPG bottling plants are hawking LPG allocations from plant to plant for patronage at exorbitant prices.

“Equally, disturbing is the fact that gas plant owners in the Edo/Delta region with their verifiable large storage capacities have not been granted any off taker facility despite the location of the project in the region.” 

Nigeria will maximise AfCFTA opportunities with full deregulation of downstream sector, says NAC secretary

 Mr Francis Anatogu,  Secretary, National Action Committee for the Implementation of the African Continental Free Trade Area Agreement (AfCFTA) says Nigeria can maximise the opportunities of the agreement with full deregulation of the downstream sector.

Anatogu made the assertion while speaking with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

NAN reports that Nigeria is among the African countries that has ratified the AfCFTA which began its implementation on Jan. 1, 2021.

The AfCFTA aims to redefine trade relations within African states and proposes creating a central market for goods and services, with free movement of people and investments across 54 countries.

Anatogu noted that refined petroleum products was Africa's number one import with African countries importing over $36 billion of petroleum products per annum.

He said: "So, Africa presents huge market for our oil and gas sector, especially the midstream and downstream sector.

"The very first step is for deregulation to happen and there is a level playing field for businesses to make investments.

"For the petroleum industry, without deregulation we will not be able to maximise the benefits of AfCFTA.

The first thing is to even get the marketers to even import and sell in Nigeria. 

"They need to feel confident to import petroleum products and sell in their home country before they can move to other African countries.

”What we now need to do as a country is to make sure that our businesses are best equipped to get into that market in Africa.What that means is that we need to encourage investments. 

”With deregulation, businesses are encouraged to invest because they know they can charge competitive prices and recover their investments."

Anatogu also harped on the need to create a level playing field for marketers and the Nigerian National Petroleum Corporation (NNPC) to create competition in the downstream sector.

He noted that while this could drive up the pump price of Premium Motor Spirit in the short term, it would eventually lead to stability as witnessed in the deregulation of other products like diesel.

Anatogu said: "What we have now is NNPC being the sole importer of products but we believe that if you allow it to float, the price might go up a bit in the short term but it will stabilise.

”With deregulation, if we look at the West African coast for instance, going to Cameron, Niger, Benin; imagine the number of Nigerian trucks that can be supplying these countries.

"Also, there are those that are concerned that if we allow deregulation that a lot of people will be impoverished.

 "The truth of the matter is that the amount of jobs it will create in the medium term far outweighs the risk of the short term spike."

While commending the government for removing subsidy on PMS, he noted that the increase in the pump prices had been marginal and due to market forces. (NAN)

Sahara Group unveils 2019 sustainability report

(L-R)Executive Director, Sahara Group, Ade Odunsi, Director, Governance and Sustainability, Pearl Uzokwe, Executive Director. Moroti Adedoyin-Adeyinka and Executive Director, Kola Adesina at the unveiling of the Sahara Group 2019 Sustainability Report in Lagos on Wednesday.


Energy Conglomerate, Sahara Group, has released its 2019 Sustainability Report which reflected  its commitment to creating shared value for stakeholders through economic development, protection of the environment and building a sustainable society.
The report tagged: ” Transformative Innovation” was released by the Director, Governance and Sustainability, Sahara Group, Mrs Pearl Uzokwe on Wednesday in Lagos.
Uzokwe said the report highlighted  how the firm continues to leverage innovation and technology in achieving its corporate goals and sustainability ambitions across its businesses in Africa, Asia, Europe and the Middle East.
She said the group had continued to foster partnerships and initiatives which had co-created a desirable future through innovation.
Uzokwe said: “We have aligned our business operations within our entities with the demands and expectations of our changing world – digitisation – which in turn increases our competitive advantage for sustainable growth.
” Beyond measuring our performance in numbers and outcome, we have raised our lever of sustainability excellence by committing to more strategic partnerships and setting targets to achieve sustainable development from the micro to global scale.”
She said Sahara had aligned its operations and processes in furtherance of the urgent global transition to cleaner energy and low-carbon solutions. 
Uzokwe said “Sahara entered an MoU with the United Nations Development Programme in 2019 to provide access to affordable and sustainable energy in sub-Saharan Africa. This is in line with UN Sustainable Development Goal 7.
“During the year, we were pivotal to the success of the United Nations Private Sector Advisory Group (PSAG).
“We joined hands with other stakeholders in  advancing the mission of the African Influencers for Development (AI4Dev) World Economic Forum’s Partnering Against Corruption Initiative (PACI) and other institutions in providing a better quality of life to the world,” she said.
According to Uzokwe, Sahara inaugurated its Green Life Initiative in 2019 in line with its commitment to fostering sustainable environments via the protection of the environment, promotion of a circular economy and recycling of waste within and outside our business. 
 
“Among other activities, we established a Recycling Exchange Hub in the Ijora Oloye community and executed upcycling vocational training for the conversion of tyres to usable products,” she said.
 
Uzokwe also reiterated the firm’s commitment to environmental sustainability and compliance with the African Refiners and Distributors Association (ARA) standards – the only pan-African organisation for the African downstream oil sector. (NAN)

DPR warns depot owners against hoarding of petroleum products

Mr Sarki Auwalu, Director, DPR

The Department of Petroleum Resources (DPR) has issued warning to depot owners against hoarding of petroleum products in their facilities. 

Mr Sarki Auwalu, Director, DPR , issued the warning in a statement issued on Wednesday in Lagos.

Auwalu said it was necessitated  by reports received by the agency  on the wholesome activities of some depot owners who have created artificial scarcity by hoarding products in some parts of the country.

According to him, their nefarious activities is causing untold hardships to Nigerians. 

He stated that from available records,  there was product sufficiency in the country and that there was no need for such practices by these group of unpatriotic citizens. 

Auwalu emphasised that the Department, as the licence issuers to all oil and gas facilities in Nigeria including the depots, would not hesitate to apply appropriate sanctions on any depot found wanting in this regard. 

He further stated that the agency has set up a special taskforce to intensify surveillance and monitoring of all depots to check this anomaly. 

The Director assured that DPR would continue to provide its regulatory focus of quality, quantity,  integrity and safety ( QQIS) for the   effective operations of the Downstream sector.(NAN)

Deregulation : LCCI tasks FG on social pricing window for vulnerable Nigerians

The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to set up a social pricing window for vulnerable Nigerians to mitigate the impact of deregulation policy .

Mr Muda Yusuf, Director General, LCCI, gave the advice in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.

Yusuf said the removal of subsidy on Premium Motor Spirit, also known as petrol, would cause some challenges which could be for a short term if the right programmes were put in place.

He said: ” I will say that the deregulation policy is something that should be sustained and we should be looking at how we can mitigate the short term challenges on Nigerians.

“In the short term, we can look at a social pricing window for the vulnerable segment of society.

“The way we think this can work is to designate all the Nigerian National Petroleum Corporation (NNPC) stations and provide a social pricing mechanism in the NNPC stations alone.

“The Federal Government can set aside a certain amount to subsidise in these windows and it should not be more than 10 per cent of the total consumption of fuel in the short term before we transit into full deregulation.

”For instance, if our total consumption is 50 million litres, we can earmark like five million litres for the purpose of serving these vulnerable groups through the NNPC stations which we have all over the country.”

According to him, the other petrol stations should be allowed to function fully within the deregulation framework and provide services for more economically empowered persons.

“The vulnerable people who can afford to queue for some hours can use the NNPC stations but those who have the ability to pay can go straight to other stations to buy fuel.

”This is a model that we can consider and it will also bring some comfort to the Organised Labour that something is being done immediately to assist the vulnerable groups in society.

“Of course, there will be issues of corruption but we have to live with some of these things in this transitional phase so that we can move forward otherwise government will be seen as being very insensitive.

“That is why I think that we should have that kind of social pricing window to take care of vulnerable Nigerians using only the NNPC stations,” Yusuf said.

He noted that another way to mitigate the impact was to look at the challenges it posed to cost of the transport and energy cost for Small and Medium Enterprises in particular.

Yusuf said: “We need to look at the issue of mass transit once again. We need to ensure that we structure our budgets both at the national and sub-national levels to ensure that we prioritise mass transit.

” We also need to accelerate the process of ensuring that we produce refined petroleum products domestically and in order to accelerate that, this deregulation has to be in place.

“I have heard arguments that we should allow refineries to be working before we deregulate but that is not going to work.

”Unless we have a deregulation policy in place, it will be difficult to attract direct capital into the refineries.

“So, deregulation should come before attracting investment to the refineries because as things stand, we cannot depend on government owned and managed refineries.

”It has been proved that this is not sustainable. We should be looking at how we can incentivise private investment in refineries. We need this policy reform to make that happen.”

#EndSars: Mr Macaroni, others arrested

Popular Instagram Comedian, Mr Macaroni alongside other protesters arrested by the Lagos state police command on Saturday morning, have been subjected to inhumane conditions.

In footage shared online by actor, Yomi Fabiyi, Macaroni is seen without a shirt crammed with other arrested protesters in a small bus. Some of the protesters had their hands tied behind their backs.

The video has generated negative reactions from Nigerians, condemning the police for subjecting the protesters to such terrible conditions.

DPR promises to upgrade downstream operations to global standard

Mr Sarki Auwalu, Director, Department of Petroleum Resources (DPR).

The Department of Petroleum Resources (DPR) has promised to upgrade downstream operations to global standards with improved technology in  its ongoing automation process. 

A statement issued on Tuesday in Lagos by Mr Paul Osu, Head, Public Affairs, DPR, said Mr Sarki Auwalu, the Director of the agency made the promise

at a virtual meeting with the members of the Major Oil Marketers Association of Nigeria ( MOMAN).

Auwalu said the DPR was currently deploying appropriate technology to enhance value for operators and investors alike in the downstream sector.

According to him, DPR has concluded plans to inaugurate the Downstream Remote Monitoring Systems (DRMS) on Feb. 11  in Abuja.  

He said the DRMS was an inventory  and regulatory tool designed to track product levels across retail outlets and depots using  the short code-  *7117#.

Auwalu said  the introduction of DRMS would create value for the sector by providing access to data for efficient  management of their operations. 

He noted that DPR as partners in progress would continue to engage with MOMAN to ensure seamless communication and feedback on our regulatory activities. 

The director said that DPR had developed a framework around quality,  quantity,   integrity and safety (QQIS) for petroleum products in response to the current situation of price freedom in the downstream sector.

 

He lauded the support of MOMAN for the gas expansion programme of government and advised the association to ensure  their members compliance with the gas add-on directives for their stations as they are the energy bridge of the nation.  

The Chairman of MOMAN,  Mr Tunji Oyebanji, assured  the DPR of the readiness of the association to always partner with the department for the development and growth of the sector.

He lauded the technology deployment by DPR in its operations which had enhanced its approval processes and data collection drive. (NAN)

DPR licenses first floating LNG production plant

Director/CEO DPR,  Mr Sarki Auwalu (Right) presenting Licence to Establish (LTE)  the first floating LNG production Plant in Nigeria to Managing Director   UTM Offshore limited, Mr Julius Rone at DPR office Abuja

The Department of Petroleum Resources (DPR) has issued Licence to Establish (LTE), the first floating Liquefied Natural Gas (LNG) production plant to UTM Offshore Ltd., an indigenous oil and gas company.

A statement issued on Monday in Lagos by Mr Paul Osu, Head Public Affairs, DPR, said the licence was presented to the company at the DPR headquarters in Abuja on Monday.

Mr Sarki Auwalu, Director, DPR who presented the licence said the company would be processing 176MMcfd natural gas and condensate.

Auwalu said the milestone was a reinforcement of the promise and commitment of President Muhammadu Buhari to Nigerians to promote indigenous participation in the oil and gas sector.

According to him, it is to ensure that companies come to Nigeria and do business in an equitable way to stimulate the economy and create jobs for Nigerians .

He added that the licence was a demonstration of government’s resolve to harness safe and reliable technology for the development of the oil and gas industry.

Auwalu said that the DPR would continue to create opportunities for companies by providing the regulatory tools of licences, permits and approvals for investors.

The Managing Director of UTM Offshore Ltd., Mr Julius Rone, while receiving the licence promised to abide with the terms of issuance within the 24 months validity period of the LTE from the date of issue. (NAN)

DPR targets $500m from signature bonuses of 57 marginal oilfields

The Department of Petroleum Resources (DPR) says Nigeria will earn about $500 million dollars from the signature bonuses to be awarded for 57 marginal oilfields in the country.

The agency said the bid round processes for the oilfields which began in June 2020 ,would be concluded by the end of the first quarteruarter of 2021.

Mr Sarki Auwalu, Director, DPR , made the disclosure while speaking on Friday during a television programme monitored by the News Agency of Nigeria (NAN) in Lagos.

NAN reports that a marginal field is any field that has reserves booked and reported annually to the DPR and has remained unproduced for a period of over 10 years.

Auwalu said the objective of the exercise was to deepen the participation of indigenous  companies in the upstream segment of the industry and provide opportunities for technical and financial partnerships for investors.

The director said out of the over 600 companies which applied for pre-qualification, 161 successful companies 

were shortlisted to advance to the next and final stage of the bid round

process.

"For the signature bonus, what we did internally is to look at the Competent Person Report and objectively estimate the average signature bonus on that field. 

"Some fields are high while some fields are low. We estimate to have not less than $500 million which is very much on the conservative side," he said.

The director noted that this was aside the monies already generated by the agency through the applications and data leasing for the marginal oilfields applicants.

He said the DPR had also gotten approval for the signature bonuses to be paid in either dollars or Naira to simplify the process for Nigerian companies and reduce strain on the nation’s foreign exchange reserve.

"Immediately after the payment of the signature bonuses and compliance with the farm out agreement, farm out demarcation area, then we will issue the award and bring the companies together for them to arrange how to enter the fields.

”We hope to finish the entire programme before the end of Quarter 1 this year.

"Going forward, we will give about 90 days in which the Oil Mining License holders will have discussions because no two fields are the same so that we allow these assets to be developed.

”We believe it will increase the reserves of this country as well as providing a lot of stimulant to the economy," Auwalu said.

He explained that the DPR had learnt from the mistakes made in previous marginal oilfield bid rounds, adding that the 2020 exercise would be devoid of such issues leading to lingering litigations and unproductivity.

Auwalu said the agency had put measures in place to ensure that the

awardees would be credible investors with technical and financial capability.

He said the DPR carried out due diligence on all the applications with the assistance of the Nigerian Financial Intelligence Unit, the Department of State Security and the Federal Inland Revenue Service.

Explaining the rationale behind the non-publishing of the names of the 161 successful applicants selected for the final stage of the exercise, Auwalu said such an action was premature.

"All of them will not be successful. When we are finished,I can assure Nigerians that all the names of the successful companies who will be awarded will be known by Nigerians,"he said. (NAN)

LAPO advocates cancer treatment support for poor Nigerians

A Non-Governmental Organisation, Lift Above Poverty Organisation (LAPO) has called on both the Federal and State Governments to provide cancer treatment support for indigent individuals due to the high cost of managing and treating the ailment.

Mr Honestus Obadiora, Executive Director, LAPO NGO, made the call on Thursday during a sensitisation and awarenesses rally organised by LAPO in Igando area of Lagos State.

Obadiora, represented by Mrs Sandra Asowata, Head, LAPO NGO, Western Region, said the awareness, which was centered on Cervical, Breast and Prostrate Cancer was part of activities to mark the 2021 World Cancer Day.

Obadiora noted that LAPO was committed to the empowerment of poor and vulnerable people in Nigeria through the implementation of innovative financial and non-financial development programmes.

According to him, the organisation believes that poverty is further reinforced by diseases and vice versa and has therefore been involved in community health improvement across the country.

"As a development organisation, LAPO is concerned that cancer is now a major cause of morbidity and mortality in Nigeria with over 100,000 persons diagnosed every year of which about 80% die due to late detection. 

”Globally, 9.6 million people die from cancer every year even though over 80 per cent of cancer cases are preventable with early detection while 40 per cent of the disease can be eradicated by lifestyle changes.

"In 2016, the LAPO Community Campaign for Cancer Control (LAPO-C4) project was initiated by the Founder towards preventing and mitigating cancer-related deaths in Nigeria. 

”The main focus of the project is mass awareness creation, basic screening services for detection of pre-malignant conditions and building referral linkages for uptake of medical services," he said.

Obadiora said the project was being implemented in collaboration with six Community-Based Organisations across Lagos, Edo, Imo, Abuja and Rivers State.  

He said  between November 2016 and December 2020, LAPO created mass awareness about cancer in target communities across the country under the LAPO-C4 project.

The executive director said the organisation sensitised 83,405,597 community members against cancer, screened 38,595 persons and referred 26,215 for further screening and treatment in government-approved health facilities. 

He said: ”World Cancer Day aims to save millions of preventable deaths each year by raising awareness and education about cancer, and pressing governments and individuals across the world to take action against the disease. 

"The need for improved access to basic cancer screening services across the country cannot be overemphasised. 

"The best approach is the integration of cancer control services, including the inclusion of the Human Papillomavirus (HPV) vaccine in the routine immunisation schedule at Primary Health Care Centres in accordance with the 2018 - 2020 Nigeria National Cancer Control Plan (NCCP). 

”We are also advocating for a government policy on cancer treatment support for indigent individuals considering the enormous financial burden of managing the ailment in Nigeria. 

”We appeal to well-meaning individuals and corporate organisations to support LAPO in the implementation of cancer prevention and Maternal and Child Health projects in the country. We need your commitment to create a cancer-free world. ” (NAN)

DPR clarifies crude accounting process

The Department of Petroleum Resources (DPR) has clarified the process it uses for accounting for crude production in the country.

The agency disclosed that most incidents relating to oil theft occurs from the land terminals.

A statement issued on Thursday in Lagos by Mr Paul Osu, Head, Public Affairs, DPR, said Mr Sarki Auwalu, Director, DPR made the clarification while speaking before the House of Representatives Ad-hoc Committee on Oil Theft in Abuja.

Auwalu told the committee chaired by Hon. Peter Akpatason, that the DPR was the agency of government saddled with the responsibility of monitoring crude oil production and lifting.

He said: I will like to use this opportunity to give a brief on how we account for hydrocarbon in this nation.

”I think that will provide a better view for this committee as well as Nigerians. The process starts from the well because every crude oil comes from well, and you cannot drill a well without knowing the capacity of that well to produce.

“So, the hydrocarbon accounting in the DPR starts from well. Once you drill a well, you will need to have what we call a maximum efficiency rate to know the capacity that well will produce. The volume accounting starts from that point.”

According to him, the methodology used in hydrocarbon accounting are static measurement and dynamic measurement.

The director said: “The static is the volume that went into tank that you can dip and know the volume, while the dynamic is the volume that goes across the meter.

”We have two kinds of meters: we have production meter that you measure the volume of oil produced and we have custody transfer meter where you measure the volume of oil that exchanged hands.

“What we do is to take inventory of all wells producing in every field based on the volume we give, within which that well cannot produce more than that.

“If you under produce, you can kill the reservoir. If you over produce, you can kill the reservoir. All these volume measurements, whether static or dynamic, we take record of them.”

He disclosed that Nigeria has over 30 terminals with five of them being land terminals.

Auwalu said: “Most of the thefts, they are coming from land terminals because the land producers have to use pipelines to transport the crude into the terminals for export.

” In the process, you have a lot of third party interference which results in volumes that are being taken and are stolen.

“So, most of the discrepancies in production and export, you can easily calculate the theft volume.

“And the theft volume, if not all, come from the land terminals. But the offshore terminals, it is actually practically impossible to steal crude from offshore terminals, since it is from the bottom of the sea.”

Earlier in his remarks, Akpatason said the effects of crude oil theft could not be overemphasised, adding that it was the responsibility of all patriotic Nigerians to put an end to the menace.

He said the DPR was identified as the agency playing a key role in the monitoring of crude oil production and lifting in the country hence its invitation to the agency. (NAN)

Group urges FG to reverse power sector privatisation

An electricity consumer group, ‘Where’s the Light Movement,’ has called on the Federal Government to reverse the power sector privatisation policy for failing to achieve its set goals.

The group said the sector should be returned to public ownership under democratic control and management of workers and electricity consumers.

Mr Sina Odugbemi, the convener of the group, who briefed newsmen on Wednesday in Lagos, urged the government to take a bold step to reverse the privatisation and take charge of the sector.

Odugbemi said Nigerians had not experienced the desired objectives of available, accessible and affordable electricity supply for the past seven years of privatising the sector.

“The only way forward is for government to reverse the privatisation policy and bring back the power sector under exclusive public ownership.

“We are advocating for democratic control and management of workers and consumers in a more transparent manner.

“The reversal will help to check looting of public funds, mismanagement, nepotism, inefficiency among others to sustain the growth and development of the sector including guaranteeing uninterrupted and affordable electricity supply to all Nigerians,’’ he said.

Odugbemi noted that the Electricity Distribution Companies (DisCos), the Generation Companies (GenCos) and the Transmission Company of Nigeria had to demonstrate sufficient technical and financial capacity to solve the sector’s challenges.

“The social welfare and right of all Nigerians must be guaranteed at all times in accordance with Section 14 (1) (b) of the 1999 Nigerian Constitution (as amended).

“Section 14 (1b) states that ‘the security and welfare of the people shall be the primary purpose of the government.’

“Provision of Light enhances comfort, wellbeing, productivity and security of lives and property of citizens; absence or inadequacy of electricity to the citizens negates the purpose and the spirit of Article 14 (1) (b) of 1999 constitution,” said Odugbemi.

He noted that in spite of the billions of naira sunk into the sector by the government since it was privatised in November 2013, 46 per cent of Nigerians were yet to be connected to the national grid.

“Those connected to the national grid cannot boast of enjoying quality supply. Electricity is life, it is extremely instrumental to production, services, education, healthcare, well being among others,” Odugbemi said.

According to him, apart from reversing the privatisation policy, the tariff should be reviewed downward to N21 per kilowatt with no further increment due to the current economic realities in the country.

He called for metering of all electricity consumers, adding that estimated billing should be stopped and all debts accumulated by consumers as a result of the “crazy bills” should be cancelled.

He also called for life insurance policies for electricity workers as well as massive public investment in the power sector to guarantee uninterrupted power supply to all Nigerians. (NAN)