African countries engage DFIs to fund oil, gas projects

Chief Timipre Sylva, Minister of State for Petroleum Resources

By Solomon Asowata

Lagos, March 7, 2022 (NAN) Nigeria and other petroleum producing countries in Africa have begun engagements with Developmental Finance Institutions (DFIs) to fund critical oil and gas projects in the continent.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, made this known while declaring open the first African Local Content Investment Forum (ALCIF) on Monday in Lagos.

The forum was organised by the Nigerian Content Development and Monitoring Board (NCDMB), with the theme: “Pan-African Strategy Towards Sustainable Funding of Africa Oil and Gas Projects”.

Sylva, represented by Dr Nasir Sani-Gwarzo, Permanent Secretary, Ministry of Petroleum Resources, said the countries were engaging the Afrexim Bank, African Development Bank and other institutions to finance their projects.

He said that the move was necessitated by the refusal of international finance institutions to approve funding for development of hydrocarbons due to the global push for transition to cleaner sources of energy.

According to Sylva, Africa has 120 billion barrels of proven crude oil and about 600 trillion cubic feet of proven gas reserves that must be harnessed for the continent’s socio-economic development.

 

The minister said: “Without doubt, the emerging trend is that leading multinational financial institutions are factoring Environmental, Social, and Corporate Governance (ESG) in their lending decisions.

“The seeming freezing of equity investment in upstream field development projects by International oil companies is a wakeup call for Africa to provide alternative funding to sustain hydrocarbon development and secure our energy future.”

He noted that governments of Africa Petroleum Producing Organisations (APPO) member countries were heavily dependent on oil and gas revenues to meet their socio-economic obligations.

According to him, dearth of funds, limitations in technology mastery, high-end skills gap, undeveloped internal market for hydrocarbon derivatives and inadequate energy infrastructure are some of the challenges facing the industry.

He said the continent’s oil and gas infrastructure requirements include upstream field development projects; pipelines; depots; terminals; refineries; petrochemical plants; and research and development among others, which required huge funding.

Also, Mr Simbi Wabote, Executive Secretary, NCDMB,  said that more than 640 million people, representing about half of the total population in Africa, had no access to electricity while the other half with access had unreliable supply of electricity.

“The challenge of inadequate energy is partly the reason why Africa is faced with poverty, conflicts, migration, brain drain and ranks very low on Human Development Index,” he said.

Wabote said that the Afrexim Bank and the AfDB had the opportunity of taking advantage of Africa’s abundant hydrocarbon resources by providing funding for oil and gas development.

The Secretary General, APPO,  Dr Omar Ibrahim, said Africa’s contribution to green house gas emissions was about four per cent, and it was, therefore, unjust for the continent to be railroaded into the global energy transition timeline.

He called for the setting up of an African Energy Investments Corporation (AEICorp) which would fund oil and gas projects as the traditional financiers withdraw from the industry.

Ibrahim said: “But we are realistic. AEICorp cannot do it alone. No financial institution in Africa can do it alone. But through cooperation and collaboration, we are confident that Africa shall succeed.

“If we see energy security as critical to our national security, we should enact laws that provide for a portion of windfalls from oil and gas sales to be re-invested in the industry.

“We need to find a way or ways of getting African oil and gas producing countries governments to commit to a certain percentage of the windfalls to a special fund for the sustenance of the oil and gas industry during the transition period.”

Also, Dr Benedict Oramah, Managing Director, Afrexim Bank, represented by Mr Ibrahim Sagna, Head, Advisory and Capital Markets, Afrexim Bank, said that the bank would continue to support the development of oil and gas projects.

Oramah said that the bank had provided funding to the Nigerian National Petroleum Company Ltd and the Dangote Refinery as well as other players in the sector. (NAN)(www.nannews.ng)

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NURPC highlights implications of global change from fossil fuels

Mr Gbenga Komolafe, Chief Executive, NUPRC

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) says the goal of the global change to move completely away from fossil fuels has its implications.

Mr Gbenga Komolafe, the Chief Executive, NUPRC, said this on Thursday in Abuja at the ongoing fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition.”

Komolafe, represented by his Senior Technical Adviser and Assistant Director, NUPRC, Mr Abel Nsa spoke on  “Fundamental Shifts in NUPRC in a Time of Transition.”

He said that all nations were being jointly held responsible for environmental impact of fossil fuels, while oil producing nations that have the appropriate economic model may escape a lot of impact.

Komolafe noted that oil producing nations without the appropriate economic model, might be worst hit in spite of their endowment with abundance of fossil resources.

“Responsive nations can still make the proper shift even in the seemingly short time left,” he added.

He said the growing concern around energy transition affected all economies of the world especially those most dependent on fossil fuels for their energy needs and national revenue.

Komolafe said the targeted state of net-zero emission might be challenging to attain but a lot of effort was being put into curtailing fossil fuels and advancing cleaner alternatives by developed countries.

He said in Nigeria’s case, the quest for sustainable development had two dimensions; quest to get the best economic model for harnessing oil and gas resources and to balance the environmental demands of the comity of nations.

To this end, Komolafe said Nigeria commenced a holistic reform of the industry in the 2000s to address the first problem, along the line the second issue took centre stage.

“But gladly the Petroleum Industry Act (PIA) 2021 was progressively adapted to address both issues,” he added.

According to him, Nigeria has indeed commenced the necessary shift toward sustainability.

He noted that the passage of the PIA, 2021, offered fundamental shifts in the regulatory architecture of the NUPRC.

Komolafe said the Act provided for legal, governance, administrative framework and attractive fiscal regime.

“In a clear departure from the past, the law provides clarity on areas that were hitherto uncertain or ambiguous in the regulation of upstream operations.

“Empowered by the PIA, the commission naturally tapped into its wealth of experience, expertise and institutional memory that it has garnered over the years to implement the desired change and bring about monumental shifts.

He outlined some of the strategic focus of the NUPRC toward attaining the desired change as envisaged in the PIA 2021 as Development of Regulations, Environmental Remediation Fund and Field Development Plan, among others.

“Committee on Implementation of the PIA (STEERCO) is developing draft regulations for effective implementation of the Act. In this respect also, NUPRC is in consultation with upstream stakeholders to ensure all-inclusiveness and robustness.

“Some of these regulations are being developed to address critical industry issues such as, acreage administration, decommissioning and abandonment, commingling of stacked reservoirs, oil and gas royalty administration and host communities development trust, amongst others.

“The process of stakeholder’s engagement has commenced, and the commission has requested input from various stakeholder groups which will be evaluated for adoption in the regulations. In a short while, the commission will publish.

“The PIA has vested in the commission, the power to set up an environmental remediation fund into which licensee and lessees will make financial contributions as determined by the commission toward potential degradation or damage to the environment.

“Towards meeting the government aspiration of 40 billion barrels of oil reserves, 220TSCF of gas reserves and three million bop production target, innovative ways are being employed by the commission in collaboration with industry players,” he said.

This, he said, would ensure maximum economic recovery through exploration and resources maturation, improved oil recovery, reserves maturation and production optimisation, asset stewardship and risk management.

He said with the focused implementation of these initiatives, it was confident that the NUPRC could drive the attainment of the Nation’s Reserves and Production target. (NAN)

Nigeria can use mass data to meet energy needs, increase reserves - NUPRC boss

Mr Gbenga Komolafe, Chief Executive, NUPRC

By Solomon Asowata

Mr Gbenga Komolafe, Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria can utilise mass data to meet its energy needs and increase its hydrocarbon reserves.

Komolafe spoke at a panel session on "Data to Barrel” at the ongoing 5th Nigeria International Energy Summit in Abuja.

He said: " According to U.S. Energy Information Administration (EIA), Petroleum energy remains the largest source of energy, though its share of world marketed energy is in decline from 33 per cent in 2015 and projected at 31 per cent in 2040. 

"With this huge opportunity, the key challenge is using mass data to meet Nigeria’s energy needs and increase proven reserves by ensuring that our oil and gas resources are not left behind in the subsurface without being beneficial in a timely manner for the Nation. 

"No era lasts forever, so Nigeria must make haste to harness fossil fuel energy while its still relevant."

Komolafe noted that the upstream industry was facing challenges that require the need for mass data in high-precision reservoir modelling and surveillance. 

"Consequently, superb computing power, high-performance storage capacity, powerful and integrated mapping applications are required to be able to turn big data into barrels and value for money.

"Hence, the key challenge for service providers in producing oil companies is to demonstrate the value that gathering additional data will bring to the asset. 

"So, it is not just about gathering more data, but equally about the Value of the Information (VOI) from the data gathered," he said.

According to him, the development and use of Artificial Intelligence (AI), through generating new and robust mapping applications, requires big data and supercomputing technology.

He said this helps to decide investment in the right prospects, development of a robust Field Development Plan (FDP), drilling and completions in safe and cost-efficient operations, all in order to optimise production and meet daily deliverables. 

"Big data only makes sense when it leads to safer operations, cost efficiency, and increased profit margins," Komolafe noted.

He said the NUPRC has taken technological advancements into consideration in its work processes.

Komolafe said currently, the Technological Adaptation Unit within Engineering and Standards Department engages service providers on new technologies that could be implemented in the Nigerian Petroleum Industry.

" In addition, we have established more data related initiatives in the NDR such as National Improved Oil Recovery Centre (NIORC) focussed on utilizing big data to drive reduction in cost per barrel.

" Also, the Integrated Data Mining and Analytics Centre (IDMAC) was setup to assess and analyse data for informed business decisions," he said. (NAN)

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We will ensure operators present their `green story’ in field development plan – NUPRC

Mr Gbenga Komolafe, Chief Executive, NUPRC

By Solomon Asowata

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says it will ensure that operators present their “Green Story’’ in Field Development Plan (FDP) as Nigeria move to attain net zero carbon by 2060.

Mr Gbenga Komolafe, the Chief Executive, NUPRC, made this known while speaking at the 5th Nigeria International Energy Summit (NIES) on Monday in Abuja.

The News Agency of Nigeria (NAN) reports that the summit had as its theme: “Revitalising the Industry: Future Fuels and Energy Transition’’.

According to Komolafe, the energy transition regime has posed a challenge and opportunity for Nigeria to reposition its energy focus and regulatory policies toward development of clean and renewable energy.

According to him, investors in the upstream are being tasked to provide their green story as a basis for attracting required funds for field development.

He noted that Nigeria was the largest economy in Africa, 25th largest in the world by nominal Gross Domestic Product (GDP) and an emerging global power.

Komolafe said it was rated by the World Bank as an emerging market, a maritime nation with 206tcf gas reserves and crude oil and condensate reserve of 37 billion barrels,

He said Nigeria had huge potential to monetise and derive optimum value from its oil and gas assets in response to the challenges posed by the energy transition regime.

Komolafe said the nation, however, could not exist in isolation of the global trend in energy transition.

“The NUPRC, as part of implementation of its statutory regulatory mandate ensures that operators present their ‘green story’ in FID in a manner that incorporates carbon capture and gas commercialisation,’’ he said.

Komolafe explained that fossil fuels were expected to continue to meet much of the world’s energy demand in spite the growth in renewable energy and nuclear power.

He said that in order to meet increasing demand for petroleum energy, countries would need to carry out increased exploration, adopt advanced technology to maximise production yields and increase oil and gas reserves.

Also speaking, Dr Nasir Sani-Gwarzo, the Permanent Secretary, Ministry of Petroleum Resources, said Nigeria was committed to reducing its greenhouse gas emissions by 20 per cent by 2030.

He said this was being driven by programmes such as Decade of Gas Initiative and promotion of gas-based industries which would lead to job creation for Nigerians.

On his part, Mr Simbi Wabote, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), said international oil companies were divesting their assets due to the global energy transition.

Wabote said this was, however, an opportunity for indigenous companies to take charge of the industry as it was in line with the NCDMB’s mandate. (NAN) (www.nannews.ng)

Nigeria needs to harness gas resources for national development – IOCs

By Solomon Asowata

Lagos, Feb. 22, 2022 (NAN) TotalEnergies Nigeria and Chevron Nigeria Ltd. on Tuesday stressed the need for concerted efforts to harness the country’s abundant gas resources for national development.

The International Oil Companies (IOCs) also pledged their support to the Federal Government’s quest to make gas the country’s transition fuel in the face of the global energy transition to cleaner sources of energy.

They made these known during a panel session at the sixth Edition of the sub-Saharan African International Petroleum Exhibition and Conference organised by the Petroleum Technology Association of Nigeria (PETAN) in Lagos.

The News Agency of Nigeria (NAN) reports that the session had the topic: “Dynamics of Sub Saharan Africa’s Energy, Oil and Gas Sector as We Strive to a Low Carbon Future, an IOC Perspective.”

Mr Victor Bandele, Deputy Managing Director, Deep Water, TotalEnergies Nigeria, said the company was committed to achieving carbon neutrality in its operations by 2050.

According to him, TotalEnergies in line with its new profile as an energy company is investing in all energy sources including biofuels, solar, gas electricity and hydrogen.

He said: “We have reduced our carbon footprint to a good level but not yet to zero.

“We have taken that on board and we are aligning with the Nigerian government because government itself has demonstrated that this is where it is heading to.

“TotalEnergies is partnering with all our partners and aligning with the government to make gas Nigeria’s transition fuel.”

Bandele noted that the Petroleum Industry Act (PIA) had brought clarity to the fiscal terms and would help attract more investment to drive the development of Nigeria’s gas resources.

Also, Mr Rick Kennedy, Managing Director, Chevron, Nigeria/Mid Africa Business Unit, said Africa’s young, skilled and large population as well as abundant gas resources provide a huge opportunity for investors.

Kennedy, represented by Mr Bobby Heuliet, Director, Deepwater/Production Sharing Contract, Chevron, said the company would continue to invest and make significant contribution to the Gross Domestic Product of the region.

He said the company’s vision was in like with the aspiration of African countries, including Nigeria to use gas as a transition fuel and would continue to make investment that would promote gas development. (NAN)

EKEDC demands more allocation from national grid

The new Chairman of Eko Electricity Distribution Company (EKEDC), Mr Oritsedere Otubu and Mr Alex Okoh, Director General, Bureau of Public Enterprises.

The new Chairman of Eko Electricity Distribution Company (EKEDC), Mr Oritsedere Otubu visited some stakeholders in the power industry in Abuja earlier this week. 

This was in line with Mr. Otubu's agenda to foster cordial relations with stakeholders following his appointment as the new chairman of the leading electricity distribution company in Nigeria last month.

Accompanied by the Company's MD/CEO Engr. Adeoye Fadeyibi; EKEDC Director, Ernest Oji; and some members of the management team, the Chairman visited the Ministry of Power, Bureau of Public Enterprises (BPE), Transmission Company of Nigeria (TCN), Nigerian Electricity Regulatory Commission (NERC), Niger Delta Power Holding Company, and the Nigerian Electricity Liability Management Company (NELMCO). 

This information was released via an official statement signed by the Company's General Manager, Corporate Communications, Mr. Godwin Idemudia.

 He stated that the focus of the new chairman is to improve the exemplary relationship between Eko DisCo and the stakeholders in the power sector as well as consolidate the achievements of his predecessor.

At the meetings, Mr. Otubu appreciated the efforts of the various stakeholders towards Eko Disco and assured them of the Company's support to improve electricity supply in the country. He said, 'this visit is essential to us as we want our stakeholders to see us for who we are. 

"We want to be more involved in the various plans and projects by the Government in strengthening our network.

"It is important for us to work in collaboration with stakeholders to identify areas where we can get things better and effectively supply power to our customers."

Eko DisCo must not only show that it is the leading Disco but also prove that the privatisation process of the power sector is a success.’  

The Chairman also cited the recent power supply issue in Lagos due to the drop in generation which led to frequent load shedding in many areas under the DisCo.

 He described the network as a strategic one growing rapidly because of increased industrial and commercial activities which have brought about the demand for more power supply. Hence, the inability to even meet up with the existing demand poses a real crisis for the DisCo.      

At the Federal Ministry of Power, the Chairman was welcomed by the Honourable Minister of Power, Mr Abubakar Aliyu who congratulated Mr. Otubu on his appointment. 

The Honourable Minister aligned with the Chairman's call for more collaboration by the actors in the power sector and stated his confidence in the DisCo based on its track record of performance in the NESI especially on financial remittance.

He also explained that the Federal Government is currently working on projects to expand the capacity of the national grid to better serve not only Lagos but also the entire country.

The Director General of BPE, Mr. Alex Okoh also congratulated Otubu on his appointment, and expressed his satisfaction towards the drive for more collaboration with stakeholders by EKEDC Chairman. 

He stated that he is confident in the capacity and the competence of the new chair to take EKEDC to a greater level. 

Okoh emphasised that Eko DisCo occupies a strategic franchise area in the power industry, thus such agenda is significant to the national economy and ensure that the intention of the privatisation process in making the sector more favourable to consumers and investors is achieved. 

He said he was impressed by how the Disco handled the recent power supply issues in Lagos and called on the other Discos to emulate such performance and carry along the Bureau in their decision-making process especially on key issues affecting the industry.

In his statement to the Eko DisCo team, Mr Sule Ahmed Abdulaziz, the MD/CEO of TCN explained the importance of having adequate power supply in Lagos as the State consumes more than 50% of the power generated. 

He equally assured Mr. Otubu that TCN will involve the Disco on the several ongoing projects to improve the electricity infrastructure as well as meet the Disco's request of receiving more allocation from the national grid. 

As a result of this visit, Eko Disco has assured its customers across its network of many development projects to improve service delivery and empower the quality of lives. 

Achieving an effective collaboration with the stakeholders, as the Chairman has stated, will move the power sector forward to meet the expectations of Nigerians.

Scarcity: NMDPRA deploys surveillance teams to Lagos petrol stations

Motorists queue for fuel at a petrol station on Lekki-Epe Express Way, Lagos on Thursday.

By Solomon Asowata

Lagos, Feb. 17, 2022 (NAN) The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday,  deployed seven ad-hoc surveillance teams to monitor petrol stations across Lagos State.

The downstream petroleum regulatory agency also confirmed that 37 million litres of Premium Motor Spirit (PMS) was trucked out with 885 trucks to the stations on Wednesday.

The News Agency of Nigeria (NAN) reports that Mr Ayorinde Cardoso, Zonal Operations Controller, NMDPRA, Lagos, made this known when he led a surveillance team to some petroleum products retail outlets across the state.

Cardoso assured that  normalcy would soon be restored in  the state on the fuel situation  with  efforts being made by all stakeholders in the downstream sector.

He said: “We have sufficient fuel in Lagos now and we have quarantined the contaminated products in some of the impacted depots.

“Our focus right now is to push out clean product to all the stations. Right now in Lagos, as at Wednesday morning, we had over 128 million litres in our depots.

“We have five vessels that are currently discharging since Feb. 15,  and they will also bring in about 204 million litres.

“So in total, in Lagos, we are looking at about 332 million litres within our system. As at Wednesday, we have trucked out about 37 million litres with 885 trucks.

“This morning we went out with seven ad-hoc surveillance teams to assess  the impact of those 885 trucks that were sent out.”

He said the monitoring team was checking availability of products in the outlets as well as the product quality to prevent infusion of any contaminated PMS which had been quarantined by the authorities.

Cardoso said the officials were also checking for hoarding of products by marketers, stressing that any marketer caught engaging in such activity would be penalised.

He said residents should know   that there was no need for panic buying as there was sufficient PMS  in Lagos state.

On the imported off-spec products which were withdrawn from the market, he said it would be disposed of in a safe manner. (NAN)