Author: Sasforde

Shell Petroleum Development Company of Nigeria Limited (SPDC) has concluded plans to supply gas to Dangote Fertiliser and Petrochemical Plant in Lekki for 10 years.

The final investment decision involves SPDC and its joint venture partners – Nigerian National Petroleum Company
Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company.

“This investment decision is a critical step in pursuing the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Oil Mining Lease 35 located in Sagbama Local Government Area of Bayelsa
State,” said the managing director of SPDC, operator of the joint venture, Osagie Okunbor.

Okunbor added that SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and,
particularly, the domestic gas agenda.

According to Okunbor, increasing the delivery of natural gas to the domestic market is key to accelerated industrialization and economic development in Nigeria.

The FID signals a positive step towards the construction of the required infrastructure for the project that is expected to create jobs through direct and indirect employment.

Dangote boasts Africa’s largest granulated urea fertiliser complex and produces around 65 percent of Nigeria’s domestic fertiliser requirements.

The project will supply gas which will enhance the Dangote Fertiliser and Petrochemical Plant’s ability to deliver on its promise to the Nigerian people and government.

OPEC Secretary General, Haitham Al Ghais, has criticised the International Energy Agency (IEA) for its recent statement, stating that it overly focuses on specific issues and unfairly blames the oil and gas industry for the climate crisis.

Al Ghais expressed concern about the IEA’s proposed framework, suggesting it could limit the choices of oil and gas-producing developing countries.
He argued that the IEA’s approach contradicts the Paris Agreement and may lead to reduced investment and harm the security of energy supplies.

Al Ghais defended technologies like carbon capture utilization and storage (CCUS), dismissed by the IEA, and highlighted the industry’s commitment to renewables and emissions reduction.

Al Ghais emphasized the complexity of energy challenges and the need for a collaborative approach to address emissions, energy security, access, and affordability.

He urged a focus on reducing emissions without favoring specific energy sources and stressed the importance of balancing economic growth, social well-being, and emissions reduction.

Al Ghais called for constructive dialogue, collaboration, and inclusive decision-making in addressing energy transition pathways and ensuring that all perspectives are considered. He highlighted the need for energy transitions to align with economic growth and social well-being while reducing emissions.

The Minister of Power, Adebayo Adelabu, has unveiled a comprehensive bottom-to-top strategy aimed at addressing the long-standing challenges in the power sector.

Speaking at the Annual Roundtable organised by the Nigerian Electricity Management Services Agency (NEMSA), Adelabu outlined a transformative approach that prioritizes the needs of electricity consumers over a singular focus on power generation.

In this strategic shift, Adelabu emphasised that fostering a robust connection with electricity consumers would be pivotal in resolving liquidity issues that have plagued the sector since its privatization. By emphasizing various models for electricity generation that consumers are willing to pay for, the minister envisions a more sustainable and economically viable power sector.

While acknowledging the importance of the power generation aspect, Adelabu underscored the critical need for meticulous attention to the distribution and transmission segments. He stressed that the effectiveness of power generation is rendered futile if it does not reach end-users, comparing it to working in the dark where consumers are unaware of the ongoing efforts.

“In transforming this sector, our top agenda is a bottom-to-top approach,” Adelabu declared, signaling a shift from conventional methods. “We will start from the customers, down to the distribution infrastructure to transmission,” he explained, outlining a strategic roadmap that targets key components like transmission, distribution, and metering.

The minister emphasized the significance of infrastructure improvement and highlighted the essential role of NEMSA in providing the necessary expertise. Adelabu also pointed out that high-quality materials are pivotal in updating infrastructures to meet global standards, a task where the expertise of NEMSA becomes crucial.

With the recent electricity law designating NEMSA as the lead enforcer of statutory technical and regulatory standards, the agency’s role in ensuring the safety of lives and property within the power sector has been further solidified.

This underscores the commitment to maintaining global standards and ensuring the reliability of the power supply. Chairman of NEMSA’s Governing Board, Suleiman Yahaya, appealed for increased government funding to empower the agency in fulfilling its mandate of enforcing technical standards. He recommended that NEMSA should also explore raising charges and rates to enhance its internally generated revenues, providing a sustainable means to support the power sector.

In his remarks, Managing Director of NEMSA, Aliyu Tukur Tahir, shed light on the agency’s foundation, established by the NEMSA Act of 2015 (now the Electricity Act of 2023).

Tahir said that technical standards and regulations help to ensure that all electrical installations deployed in the NESI meet the required technical standards, regulations and specifications.

“This is to ensure that such systems are capable of delivering a safe, reliable and sustainable electricity supply as well as guaranteeing the safety of lives and property.”

Tahir said that to effectively achieve its core mandate of enforcement, NEMSA had 19 Inspectorate Field Offices (IFO), six national metre test stations, and one engineering and chemical laboratory.

According to him, those offices are manned by qualified, well-trained, skilled and well-motivated engineers, technical officers and other professionals.

The act empowers NEMSA to enforce technical standards and regulations, conduct technical inspections, and certify all categories of electrical installations.

Chairman of the House Committee on Power, Victor Okolo, emphasized the critical importance of ensuring that all electrical installations within the Nigerian Electricity Supply Industry (NESI) meet required technical standards, regulations, and specifications.

Represented by house member, Rodney Ambaiowei, Okolo pledged legislative support, assuring that NEMSA would receive adequate funding and other essential support to effectively discharge its responsibilities.

Former Chairman of NEMSA’s Governing Board, Suleman Yahaya appealed for adequate funding as he stressed on the pivotal role that good technical standards, regulations, and certification enforcement play in establishing a stable and reliable electricity market.

He underscored the necessity of a well-rounded framework, including active collaborations with the legislative and judicial arms of government, to support NEMSA’s mandate and contribute to the overall development of the power sector.”

Seplat Energy Plc has been honoured with the Social Impact and Sustainability Awards (SISA) Corporate Social Responsibility (CSR) award for empowerment. Member of Trustees at Sustainability Professionals Institute of Nigeria and President of the International Network for Corporate Social Responsibility, Eustace Onuegbu, highlighted the significance of these awards in recognizing transformative efforts in Nigerian society.

The award specifically acknowledges organizations that have embraced globally recognized sustainability standards such as ISO 37101 Management Standards on Sustainable Development, ISO 26000 Social Responsibility, ISO 14001 Environmental Management, ISO 9001 Quality Management, ISO 20400 Sustainable Supply Chain Management, ISO 45001 Occupational Health and Safety Management Standards, among others.

The recognition extends to adherence to best reporting standards like GRI and IIRC Standards, as well as initiatives aligned with the UN’s 17 Sustainable Development Goals (SDGs) and philanthropic contributions.

Seplat Energy’s commitment to educational advancement and stakeholder engagement received a commendation from the award organizers. The company’s notable educational CSR initiatives, including the Seplat Pearl’s Quiz, National Undergraduate Scholarship, SEPLAT Teachers Empowerment Programme (STEP), and Seplat Innovators programme, were highlighted.

Director of External Affairs and Social Performance, Chioma Afe, expressed gratitude for the recognition, emphasizing the company’s dedication to global best practices in social development programs, particularly in host communities.

Afe stressed that Seplat’s educational CSR initiatives align with the company’s seven Principles of Corporate Strategy, emphasizing accountability, transparency, ethical behavior, respect for stakeholders’ interests, adherence to the rule of law, compliance with international norms, and respect for human rights.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled six gazetted regulations to spur investment and economic growth in the midstream and downstream sectors of the petroleum industry and boost revenue generation

The regulations which were unveiled yesterday in Abuja, would support sustainable growth for the mid and down streams sectors.

They included the Midstream and Downstream Petroleum Operations Regulations and Assignment or Transfer of License and Permit Regulations.

Others include the Petroleum Measurement Regulations; Gas Pricing and Domestic Demand Regulations; Petroleum (Transportation and Shipment) Regulations; and Natural Gas Pipeline Tariff Regulations.

Speaking at the unveiling, NMDPRA Board chairman, Idaere Ogan, said the Petroleum Industry Act (PIA) 2021 provided for the development of the regulations to actualise the benefits of the PIA.

Ogan, while commending the management, regulation drafting committee and relevant stakeholders whose inputs were considered as expected by the PIA said the regulations covered all aspects of the PIA to promote economic growth.

Also speaking Authority Chief Executive NMDPRA, Mr Farouk Umar, said in addition to the six regulations being inaugurated, 14 other regulations have been developed and shall be issued shortly.

Umar said the PIA emplaced a framework for the development of the relevant regulations that would support sustainable growth and investment across the oil and gas value chain in Nigeria.

“Accordingly, the NMDPRA in consultation with relevant stakeholders, has developed the regulations which have been designed to enable businesses through regulatory clarity, certainty, fairness, transparency, and best industry standards.

“The Authority remains committed to collaborating and engaging with our industry stakeholders whilst promoting transparency and accountability, in the implementation of these regulations,’’ he said.

In an overview, Dr Joseph Folorunsho, NMDPRA Legal Adviser/Secretary, said the Midstream and Downstream Petroleum Operations Regulations applied to gas and petroleum liquid operations and oil and gas service permit.

Folorunsho said it bordered on conformity assessment and technological adaptation and also provided for the grant of licenses and sanctions on violators

He said the Assignment or Transfer of License and Permit Regulations applied for approval or consent of authority on all midstream processing facilities including terminals, pipelines and blending infrastructure.

“The objective of the Petroleum Measurement Regulations is to ensure accurate measurement on allocation of gas and crude oil and ensuring installation of appropriate measurement by company and metering of oil and gas operations.

“Gas Pricing and Domestic Demand Regulations regulates retail gas pricing, prices of marketing natural gas of the strategic sectors, and identifies the unregulated market and make provisions.

“Petroleum (Transportation and Shipment) Regulations regulates activities relating to transportation loading, shipment and export of crude oil. It prohibits illegal and unauthorised crude oil activities, among others,” Folorunsho said.

He said the Petroleum (Transportation and Shipment) Regulations was expected to stem crude oil theft and illegal activities while Natural Gas Pipeline Tariff Regulations provided framework for tariff methodology and transportation of natural gas.

Escalating oil theft by criminals is eating up resources of the country. Industry operators are calling for declaration of emergency in the oil and gas sector to halt the menace. Recently, security agents operating across the country reported the recovery of stolen crude oil valued at N86.2 billion in August alone.

Also, a total of 16, 000 litres of diesel valued at N800/litres (N12.8m), were reported to have been recovered by members of the Nigeria Security and Civil Defence Corps in Cross River.

Confirming the situation, Minister of State for Petroleum Resources, Dr Timipre Sylva, said that the country loses 400,000 barrels of crude daily via oil theft.

He described the development as a “national emergency” and regretted that the nation had fallen short of OPEC daily quota, from 1.8 million barrels to 1.4 million barrels, due to crude theft. Sylva said the problem of crude theft could not be handled by federal government alone, as the thefts happens in the communities that host the oil pipelines. As a result, it has become necessary to involve the stakeholders, especially host communities.

EFCC Grills Venezuelan, 4 Nigerians Over Oil Theft

From my investigations, I saw that the oil theft is orchestrated by an organised syndicate allegedly backed by security personnel specifically assigned to man key export infrastructure and pipelines. A top industry operator who confided in me said some soldiers posted to a key export line in Port Harcourt openly threatened to kill their new commander who made an attempt to carry out changes of those assigned to guard the asset.

National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, said time has come for government to declare emergency in the sector. He told me that because crime has become a well coordinated theft with some security agents compromising their responsibilities, a shift towards investing in artificial intelligence would be a major consideration of government going forward.

The Chief Executive Officer, of the Nigerian National Petroleum Company (NNPC), Limited Mr Mele Kyari, sharing similar data, disclosed that the country loses an average of 200,000 barrels of crude per day to oil thieves, translating to 73million barrels in a year.

Also, Speaking at an oil and gas event in Lagos on Thursday, Commission Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said the agency has developed a roadmap for tackling the security challenges in the industry.

Komolafe said NUPRC, has identified and is working towards implementing areas of collaboration between the government and operators and ensuring that operators realise their full production potential.

Under the plan the Commission is liaising with the top echelon of Nigerian Security Forces for a robust security framework that ensures Government Security Forces (GSF) provide pipeline and asset security.

In addition, massive public enlightenment campaign to educate citizens on the dangers associated with crude oil theft and pipeline vandalism, in collaboration with relevant agencies would be carried out.

A rights group, promoting openness in the oil and gas sector, Transparency Alliance Network, has appealed to President Bola Tinubu to avert moves by some interests in the Presidency to subvert the concluded bidding process to engage consultants for the Pre-Shipment Inspection Agents (PIAs) and Monitoring/Evaluation Agents (MEAs) under Nigerian Export Supervision Scheme (NESS) in the industry.

It said the bidding process for the Pre-Shipment Contract for PIAs and MEAs issued through the Ministry of Finance, Budget and National Planning was handled in line with the Procurement Act 2007 and other extant laws.

In a press release signed in Abuja yesterday by the group’s national coordinator, Zakary Musa Zubairu, he said after satisfying all the pre-qualification requirements, including expertise and tract record of experience, the contract was awarded to qualified Nigerian companies vide an approval letter referenced PRES/87/MF/314 dated May 15, 2023 by former President Muhammadu Buhari.

Zubairu, however, alleged that some “unscrupulous elements in Tinubu’s government are bent on thwarting the process and causing an ignominious policy reversal.”

He expressed optimism that such an action has no place in the Renewed Hope Agenda and continuity policy of the All Progressives Congress (APC).

Zubairu said those seeking to “exploit their closeness to power and the trust reposed in them by President Tinubu to enrich themselves should know that there’s no room for such criminality in this administration.”

He said, “We have very reliable and credible intelligence at our disposal that after passing through the bidding and pre-qualification process for the Pre-Shipment Inspection and Monitoring in the Oil and Gas sector, vested interests in the Presidency have removed the names of the companies that won the bid and replaced it with their preferred companies without recourse to the concluded process. This is not only criminal but a breach of the Procurement Act. We therefore demand its immediate reversal.”

The group maintained that with the strategic importance of the Pre-Shipment Inspection and Monitoring in the verification of the quality, quantity, pricing, currency exchange rate and financial terms including monitoring and evaluating, it is important to follow due process and not resort to sharp practices that will further worsen the energy crisis Nigeria is currently facing especially with the removal of fuel subsidy in the country.

“As an anti-corruption think-tank, we are saddened by the barefaced illegality that’s been supervised by the exulted office of the Chief of Staff. Shortchanging the companies that rigorously went through the bidding and pre-qualification process and bringing unqualified companies without the requisite experience and expertise is a deliberate attempt to jeopardise the Tinubu administration and further worsen the plight of Nigerians who depend on the oil and gas sector for jobs and energy needs. The need to have competent companies to monitor and evaluate the sector is sacrosanct and we stand with the law and the good people of Nigeria to denounce any such rascality,” the statement added.