Category: Oil & Gas

Energy

By Emmanuella Anokam

Abuja, June 27, 2024 (NAN) The Federal Government says it is focused on diversifying the energy mix by investing in renewable energy projects, hydrogen development and enhancing the regulatory framework to attract private investments.

Amb. Nicholas Ella, Permanent Secretary, Ministry of Petroleum Resources, made this during a Town Hall Meeting with the management and members of staff of the ministry on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that the meeting was organised to brainstorm on the sustainable development of the oil and gas sector, in line with the Renewed Hope Agenda of the present administration.

Ella said the Ministry had taken significant steps in developing a hydrogen policy to diversify Nigeria’s energy mix and contribute to global efforts in reducing carbon emissions.

“This policy framework is aimed at establishing hydrogen as a viable alternative energy source and leveraging our existing gas infrastructure to produce green hydrogen,” he said.

Ella said that based on priority areas of the government, the cardinal objective of the engagement was to align their efforts with the presidential directive issued in January 2024, to “unlock the energy sector and natural resources for sustainable development.’’

“To understand the enormity and urgency of the tasks before us, we have to appreciate the vast energy needs of Nigerians – to power homes and industries.”

However, he appealed to all members of staff of the Ministry to brace up for the huge responsibilities placed on their shoulders as civil servants, to drive and sustain development in any society.

On gas infrastructure, Ella said the President placed high premium on gas infrastructure development and supply, and had demonstrated this with the launch of the “Decade of Gas” programme and ensuring expansion in supply through the National Gas Expansion Programme.

“Under the “Decade of Gas” initiative, we significantly expanded gas infrastructure, including the AKK Gas Pipeline Project, the OB3 Gas Pipeline Project and the ANOH project being undertaken by the Nigeria National Petroleum Company Limited (NNPC Ltd.)

“These projects are geared towards ensuring an efficient and widespread distribution of gas aimed at positioning Nigeria as a leading gas-powered economy,’’ he said.

The Permanent Secretary said it would ensure the full implementation of the Enterprise Content Management (ECM) by filling documents digitally, providing easy access to data and information, and storing them in line with legal requirements.

On discipline, the Ella warned that there would be zero tolerance for indiscipline, adding that every member of staff of the Ministry must live above board and act in accordance with service rules.

He assured the workers that their welfare and allowances would be prioritised, expressing gratitude for two amiable Ministers of State who are committed to the welfare of workers.

“We must justify that favourable disposition by giving it all our best.

“I am committed to the training and retraining of all staff within the limits of available resources. Our objective is to utilise credible training institutions to improve quality of training.

“Recognising the importance of human capital, the Ministry is partnering with educational institutions like the Petroleum Training Institute (PTI) and the Public Service Institute of Nigeria, to provide training and skill development for our staff.

“The Ministry will implement a robust performance management system, setting clear Key Performance Indicators (KPIs) to ensure accountability, transparency and effective service delivery, aligning with the Federal Civil Service Strategy and Implementation Plan (FCSSIP) 2025,’’ he said.

He assured to put the ministry on the path of unmatched progress as it began to lobby to host the Africa Energy Bank (AEB).

“Nigeria will be a regional industrial hub and a key player in the African energy sector through collaborative efforts and comprehensive roadmaps.

“In line with my mandate under the Petroleum Industry Act (PIA), we are set to commence the process of implementing the Ministry of Petroleum Incorporated (MOPI), having obtained the legal opinion of the Ministry of Justice to that effect.

“The ministry initiated programmes to integrate Artificial Intelligence (AI) in the oil and gas sector.

“AI will be utilised to optimise exploration and production processes, enhance predictive maintenance of equipment and improve decision-making through data analytics.

“By adopting AI technologies, we aim to increase operational efficiency, reduce costs and minimise environmental impact, thereby positioning Nigeria’s oil and gas sector at the forefront of innovation.

“Committees were established to oversee these initiatives and ensure their successful implementation,’’ the permanent secretary said.

Earlier in her remarks, Mrs Asma’u Adaji, Director, Human Resources Management, while thanking the permanent secretary for the engagement, said it was a maiden edition since the permanent secretary assumed office.

NAN recalls that upon his resumption in February 2024, the permanent secretary had met with heads of departments and agencies under the ministry. (NAN)(www.nannews.ng)

ELLA/EMAF
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Edited by Emmanuel Afonne

Fire

By Yunus Yusuf

Lagos, June 26, 2024 (NAN) Dangote Industries Ltd. has confirmed a minor fire incident at its Effluent Treatment Plant (ETP) in Lagos on Wednesday and which was swiftly contained.

Mr Anthony Chiejina, the Group Head of Corporate Communications at Dangote Group, disclosed this in a statement in Lagos.

Chiejina said: “There is no cause for alarm as the refinery is operating and there is no recorded injury or harm to any of our staff on duty.”

He said that emergency services responded on time to contain the incident.

Although initial reports said no injuries were sustained.

According to him, the cause of the fire is currently unknown, and investigations are underway to determine the extent of the damage and the cause of the incident.

The News Agency of Nigeria (NAN) reports that the Dangote Refinery is a massive project with a projected refining capacity of 650,000 barrels per day. (NAN)

YO/ AWA

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Edited by Olawunmi Ashafa

Fuel

By Emmanuella Anokam

Abuja, June 25, 2024 (NAN) The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says there is no imported dirty fuel in the country.

The Authority said it would never encourage importation of dirty fuel into the country and ensured that only quality protroleum products are consumed by Nigerians.

Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, made this known while speaking with newsmen after a meeting with the oil marketers and local refiners on Tuesday in Abuja.

Dangote Oil Refinery and Petrochemicals had accused the Authority of granting licenses to oil marketers to import dirty fuel into the country.

The Vice President, Oil and Gas, at Dangote Industries Limited (DIL), Devakumar Edwin, had accused International Oil Companies (IOCs) in Nigeria of doing everything to frustrate the survival of Dangote Refinery.

Ukoha, while addressing newsmen said the sulphur content in the fuel even in this June was not above the lawful limit.

“There is no dirty fuel being brought in and I have given you the statistics for June.

“What we have on the average from the imports have continued to go down from 200 Parts Per Million (PPM) on the average and now we have it far below the 50 PPM that is provided under the law,” he said.

He recalled that the ECOWAS), Heads of States in 2020 endorsed a declaration, adopting the African Fuel Roadmap that requires that certain products have as a minimum 50PPT per a million litres of sulphur.

The Executive Director said while it encouraged almost an immediate enforcement, on import to comply with that standard, the same treaty deferred enforcement for local refiners up to Dec. 31, 2024.

According to him, though the time for enforcement on local refineries is not due, the plants are complying on their own.

“And with the refineries there is no need to enforce that until the end of this year. But they themselves are already taking steps to see that is also guaranteed,” he said.

Ukoha noted that the Petroleum Industry Act (PIA) in 2021, Section 318 also captured and upheld the ECOWAS treaty.

“So as an Authority what have we done since we came into being? We started by engendering compliance. We saw a downward trend up to 2022-2023 December,” he said.

The Executive Director admitted there was a spike in the sulphur content of imported products between December 2023 and January 2024, which resulted in a vigorous enforcement in February.

“In December and in January 2024, we noticed a spike in the sulphur content of products being imported. And again now began strong enforcement from Feb. 1,

“I am happy to tell Nigerians that up until as we speak in June, the average sulphur content in every Automotive Gas Oil (AGO) that is brought into Nigeria is far below what the 50 PPM provision is in the law,’’ he said.

According to him, the new refineries are even built with plant sulphurisation limit which will reduce it to 10PPM.

“But we are not very anxious about that because even the new refineries that are coming on have within their design of the plants the sulphurisation limit that we will see in the nearest future going down as low as 10PPM.

“So, I will like to assure Nigeria that this is a mandate that the Authority takes very seriously and that we are here to guarantee the wellbeing and health of Nigeria and there is no dirty fuel we will encourage to come into Nigeria,” he said.

Ukoha further said that the meeting with the oil marketers and refiners was aimed at promoting collaboration in a manner that would guarantees energy security within the country.

“Our discussions covered considerable issues, very significant and profound. Issues of pricing, competition have been raised and we will continue to engage with every operator to see that we land at a place that is ultimately beneficial to Nigeria and Nigerians,” he added.

Also, Gabriel Ogbechie, the Group Managing Director of Rain Oil Limited said the meeting agreed on level playing field for efficient collaboration in the sector. (NAN)(www.nannews.ng)

ELLA/RSA

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Edited by Rabiu Sani-Ali

Emission

By Yunus Yusuf

Lagos, June 25, 2024 (NAN) Sahara Energy has unveiled its target of achieving zero carbon emissions from its oil and gas operations by 2060.

The company, along with its sister companies in the energy value chain, has commenced arrangements to reduce carbon emissions and earn carbon credits for a sustainable future.

The agenda was disclosed at a news conference, tagged, “Carbon Footprint and the African Narrative”,  held by Sahara Group and Asharami Square in Lagos on Tuesday.

Mr Wole Ajeigbe, Group Project Manager, Asharami Energy,  while speaking on “Decarbonisation of Africa’s Upstream Operations”, said Sahara Energy was building a sustainable energy future with an ambitious but pragmatic approach to its upstream carbon net zero journey.

According to him, efforts are ongoing at its seven oil-producing assets across Nigeria to ensure that operations at the sites are considerate of global warming.

Ajeigbe said that the net zero plan would be achieved gradually by reducing and minimising carbon emissions on a yearly basis.

He said that the company had some gas commercialisation projects which were expected to be completed by 2025 to 2026.

He listed the strategies to include; elimination of gas flare across its upstream operations; reduction in freshwater usage during operation; and making use of Carbon Capture Utilisation and Storage (CCUS) among others.

Emphasiaing its determination, he said that the company had already joined the global group of CCUS, emerging as the first African company in the forum.

Ajeigbe said, to ensure oil and gas continue to be used to meet Africa’s energy demands, the sector needed to decarbonise its operations quickly.

He noted that the energy demand and usage in Africa would increase significantly in coming years,

Ajeigbe stressed the need for the government to create an enabling environment that would stimulate investments and grant fiscal incentives on gas projects such as tax holidays, funding recurities, risk mitigation among others.

The government and stakeholders, according to him, also need to encourage availability of capital pools; improve bankability of gas projects; give support to projects that have taken decarbonisation seriously; and attract skills and develop the capabilities needed for the energy future.

Regional Director, West Africa, Ford Foundation, Dr Chichi Aniagolu-Okoye, said although Africa was contributing about  four per cent to global warming, the continent has been severely affected by the phenomenon.

She said the fact that Africa holds up to 17 per cent of the global population, yet contributes just four per cent to global carbon emissions.

This, he noted, means that the continent could do more for a sustainable environment through careful and strategic planning.

Aniagolu-Okoye said that Africa must focus not only on challenges, but also on opportunities that global warming presents.

“There are numerous opportunities to place Africa firmly at the forefront of climate debate and the media should lead the campaign,” she said.

The Director, Governance and Sustainability, Sahara Group, Ms Ejiro Gray, spoke on most viable solutions for mitigating carbon emissions and meeting Africa’s development.

According to her, these solutions include natural gas development; increase in use of renewables; protection and rehabilitation of African natural carbon sinks.

Gray said that other were innovation in low cost/low emissions clean energy solutions; carbon culture storage/carbon capture and re-utilisation and utilisation of domestic knowledge.

She said that Sahara had continued to make improvements to its operations, to reduce the carbon footprint and by extension, the continent footprint.

Gray listed some of the strategies to include; increase use of renewables; gas commercialisation; research and development and sustainable energy and carbon sinks.

Others are Carbon Capture Usage and Storage (CCUS); tree planting initiatives; and awareness campaigns for youths, among others.

The Head, Corporate Communications, Sahara Group, Bethel Obioma, said the Asharami Square has come to stay and would be having training and mentorship for journalists.

Obioma said that it would also be having Asharami Awards to appreciate those works that had contributed to building sustainability in Africa.

He said that the body was already in partnership with University of Lagos and Pan Atlantic University in the quest to upscale skill on sustainability.(NAN)(www.nannews.ng)

YO/AWA

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Edited by Olawunmi Ashafa

Fuel

By Yunus Yusuf

Lagos, June 25, 2024 (NAN) The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said that none of its members and private fuel depots had imported fuel outside regulatory specifications.

DAPPMAN said this in a statement on Monday night in Lagos, following the allegations that some marketers were importing dirty fuel.

The association said that no depot imports fuel outside the specifications approved by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA).

It said, ” NMDPRA had initially objected to offtakes by ‘our daughter vessels’ from import ‘mother vessels’, via Ship-to-ship operations which usually take place offshore Lome.”

The association said that the move  was vehemently protested and resisted by downstream operators and had since been rescinded.

DAPPMAN said that between February and May 2024, NMDPRA had allowed AGO imports with maximum sulphur content of 200/ppm.

“However this was followed by another move, by the regulator, to fast forward the country target date of the implementation of the 50/ppm sulphur limitation on PMS and AGO imports, to June 1 from Dec. 31, 2024.

“DAPPMAN will continue to work with all stakeholders, willingly to provide safe, healthy fuels to all Nigerians competitively giving them great and affordable fueling options for their daily activities,” it added. (NAN)(www.nannews.ng)

YO/ACA/AWA

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Edited by Chidinma Agu/Olawunmi Ashafa

Refinery

By Yunus Yusuf

Lagos, June 23, 2024 (NAN) Mr Devakumar Edwin, the Vice President of Dangote Oil and Gas Industries, has accused International Oil Companies (IOCs) in Nigeria of trying to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

Edwin told the newsmen in Lagos on Sunday.

Edwin alleged that the IOCs were deliberately and wilfully frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price.

He claimed that this forced Dangote to import crude from countries as far as the United States, with its attendant high costs.

Edwin lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in granting licences, indiscriminately, to marketers to import dirty refined products into the country.

He said, “The federal government issued 25 licences to build refinery, and we are the only one that delivered on promise.

“In effect, we deserve every support from the government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported.

“We are calling on the federal government and regulators to give us the necessary support in order to create jobs and prosperity for the nation,” he said.

He claimed that while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was trying its best to allocate the crude for the company, the IOCs were deliberately and willfully frustrating all efforts to buy the local crude.

“It would be recalled that the NUPRC, recently met with crude oil producers as well as refineries owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA).

“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available.

“At some point, we paid six dollars over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports Crude Oil and imports refined Petroleum Products.

“They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products,” he added.

Edwin said: “It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense.

“This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy, and at the cost of the health of the Nigerians who are exposed to carcinogenic products.

“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market.

“Since the US, EU and UK imposed a Price Cap Scheme from 5th February, 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.

“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently.

“It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally,” he said. (NAN)(nannews.ng)

YO/AWA

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Editedby Olawunmi Ashafa

Oil exportation resumes in Nembe fields after loading mishap

Resumption 

By Nathan Nwakamma  

Yenagoa, June 22, 2024 (NAN) Aiteo Eastern Exploration and Production Company (AEEPCO), operator of the Nembe Oilfields has resumed the production and export facility off Bayelsa coastline operation, shut due to oil spill from a loading mishap.

Aiteo announced the resumption in a statement by its Spokesman, Mr Mathew Ndianabasi on Saturday

The News Agency of Nigeria (NAN) reports that the incident discharged large volumes of crude into the Atlantic Ocean on June 17.  

Nembe fields within Oil Mining Lease (OML) 29 has capacity to produce 180,000 barrels of crude per day at peak levels. 

NAN learnt that frequent vandalism by oil thieves had significantly hammered peak production from the facility. 

Ndianabasi noted that following the completion of the joint investigative visit to the spill site by all stakeholders as required by regulations, AEEPCO will reopen its facilities for production while continuing other statutory spill management procedures. 

He quoted AEEPCO’s Group Managing Director, Victor Okoronkwo, as saying: ” After a comprehensive evaluation of our operations and infrastructure at the Nembe Swamp Field, we are delighted to confirm the resumption of production activities.  

“Our dedicated team has worked diligently to address the issues caused by the recent incident and implemented enhanced safety protocols to prevent future occurrences.  

“We have engaged with regulatory bodies, local communities, and stakeholders to ensure transparency and accountability throughout this process.” (NAN) (www.nannews.ng)

NN/OJI/IAA

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Edited by Maureen Ojinaka/Isaac Aregbesola

Minister of Finance & Coordinating Minister of the Economy, Mr Wale Edun (2nd front row) speaking, shortly after inspecting the Kaduna River Crossing at the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project site in Kaduna. Standing by the Minister from the left is the Minister of Information & National Orientation, Mr Mohammed Idris; the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo and the GCEO NNPC Ltd., Mr Mele Kyari.AKK

By Emmanuella Anokam

Abuja, June 21, 2024 (NAN) The Minister of Finance/Coordinating Minister of the Economy, Mr Wale Edun has described the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project as critical to the industrialisation and economic growth of Nigeria.

Edun stated this on Friday, during a working visit of three cabinet Ministers to the AKK gas pipeline project site where they inspected the River Kaduna crossing milestone of the project in Kaduna.

This is coming just as the Group Chief Executive Officer of NNPC Ltd, Mr Mele Kyari assured Nigerians that the project would be delivered by the end of the first quarter, 2025.

This is contained in a statement by Olufemi Soneye, the Chief Corporate Communications Officer, NNPC Ltd.

Edun was accompanied in the visit by the Minister of Information and National Orientation, Mr Mohammed Malagi and Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

Speaking at the project site, Edun described the AKK Gas pipeline as the pipeline of prosperity, which is very dear to the President, because it will deliver the critical infrastructure needed to trigger the nation’s economic growth and industrialisation.

“The AKK Gas Pipeline is crucial for this administration and its delivery is in line with Mr President’s strategy of bringing prosperity to the people,” Edun added.

In his remarks, Malagi said the AKK Gas Pipeline Project was a testimony to the fact that the Federal Government’s “Decade of Gas” has commenced in earnest.

“Nigerians should be proud of the AKK Gas Pipeline project. With the delivery of this project, the prosperity that Mr President is always talking about is unravelling right here before our eyes,” he said.

Also speaking, Ekpo described the gas pipeline as part of the Federal Government’s many efforts to harness the nation’s abundant gas resources towards improving power generation, revamping ailing industries and creating employment opportunities.

Ekpo urged all stakeholders to support the NNPC Ltd. towards delivering the project and several other gas projects as the country depends on it to bring prosperity to the people.

The three ministers, who lauded the NNPC Ltd. and its project partner, Brentex/CPP Ltd (BCL) on the progress made so far, also expressed optimism that the NNPC will deliver as promised.

Earlier, the GCEO NNPC Ltd, Mr Mele Kyari assured the Project will be delivered by first quarter of 2025, as major segments of the job have been completed.

“Without promising too much, we assure you that this project will be delivered on schedule.

“Our mission is to work towards delivering it by December 2024. But we are confident this project will be delivered by first quarter of 2025,” Kyari informed the three visiting Ministers.

The GCEO, who said the NNPC Ltd. recognises the strategic importance and enormous value of the project to Nigeria’s economy, said the Company was bankrolling the project on the back of its own balance sheet.

Gov. Uba Sani of Kaduna State, represented by his deputy, Dr Hadiza Balarabe, said the completion of the AKK gas pipeline would herald the much-needed economic and industrial revival in the state.

“If you know about the Kakuri Industrial Area and how most of our factories there have become moribund, you will understand why we in Kaduna State are all excited about the AKK Gas Pipeline.

“Without doubt, the pipeline will revamp our industries and bring about a huge impact on our people. We can’t wait for it to be completed,” the Governor added.

The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline is a 40 inch by 614km linear pipeline system running from Ajaokuta in Kogi State to Kano.

It has associated intermediate, terminal gas facilities and other related equipment to transport natural gas to off-takers at Abuja, Kaduna and Kano. (NAN)(www.nannews.ng)

ELLA/RSA

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Edited by Rabiu Sani-Ali

AKK gas pipeline project 90% complete -Minister