Uncategorized
March 28, 2024 No Comments

NNPC, First E&P achieve 20,000bpd production at OML 85

The Nigerian National Petroleum Company Limited and its joint venture partner in Oil Mining Lease 85, First Exploration and Petroleum Development Company Limited, have commenced oil production from the asset also known as Madu Field.

Production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day, NNPC stated in a statement issued on Friday by its spokesperson, Olufemi Soneye.

It said, “The achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of enabling environment for existing and prospective investors.”

Speaking on the development, the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, described the commencement of oil production at the Madu Field as a significant milestone that would contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

Kyari, who commended stakeholders for their support, also explained that the addition of 20,000 barrels per day by an indigenous oil player signaled the commitment of stakeholders to achieving economic development for Nigeria.

Recall that the Final Investment Decision on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd/First E&P JV in 2018.

“Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading Unit, which has a crude oil storage capacity of up to 800,000 barrels,” NNPC stated.

The Federal Government has been making efforts to ramp up crude oil production in Nigeria by addressing issues of oil theft and pipeline vandalism

For instance, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, and Chief of Defense Staff, Gen Christopher Musa, met on Thursday to come up with additional strategies to halt crude oil theft and pipeline vandalism.

Lokpobiri, who played host to the defence chief in his office in Abuja, said the move would enable the Federal Government to shore up crude oil production, increase oil revenue, address foreign exchange issues, and boost the overall economy.

On Monday, it was reported that Nigeria lost about N720bn in revenue as a result of the consecutive monthly decline in its crude oil production in February and March 2024.

The report also stated that the country’s inability to ramp up production in these months made it miss its crude oil production benchmark in the 2024 budget.

But data from the latest April 2024 Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries showed that Nigeria’s crude oil production (excluding condensates) witnessed the second consecutive monthly decline since the beginning of this year, as it dropped to 1.231 million barrels per day in March.

The Federal Government and operators in the sector have consistently blamed the drop in Nigeria’s crude oil production on theft and incessant pipeline vandalism in the Niger Delta region.

As part of measures to tackle the menace, Lokpobiri, on Thursday, hosted the defence chief, who led a military delegation to the minister’s office.

Speaking before the meeting went into a closed-door session, Lokpobiri said, “The quickest way to solving our economic problems is through oil and gas.

“Today, oil sells for over $90/barrel, and if we ramp production and reduce the level of oil theft and pipeline vandalism, we will be able to raise the requisite money to fund not only our budget, take care of our forex problem and then ensure that we stabilise our economy as a country.”

The minister said security and investment in its oil assets usually get priority attention globally and expressed optimism that the defence chief, who is very familiar with the Niger Delta terrain, would address the situation.

“Your appointment is putting a round peg in a round hole because everyone in Bayelsa sees you as a Bayelsa man and there is no creek that you don’t know,” the oil minister told his guest, as he urged the military delegation to reduce crude oil theft and pipeline vandalism to the barest minimum.

“By the time we increase production, we will be able to take care of the feedstock needed by Dangote Refinery, Port Harcourt, Warri, and Kaduna refineries, and modular refineries that we have so that we can have full benefit across the entire value chain,” Lokpobiri stated.

On his part, the defence chief stated that crude oil being Nigeria’s economic mainstay, deserves all the military support it needs.

“We know all the challenges that we are facing, some of them directly, some indirectly, but we assure you that the Armed Forces of Nigeria are fully in support of you and your ministry.

“We will continue to provide the necessary support to ensure that the country benefits from the God-given resources that we have,” Musa stated.

Uncategorized
February 29, 2024 No Comments

IOCs, Indigenous Producers Seek Expeditious Resolution of All Oil Assets Divestment Deals

International Oil Companies (IOCs) and their indigenous counterparts have expressed worry over the delay in the conclusion of the several divestment deals in the Nigerian oil sector.

Speaking at the just-concluded Nigeria International Energy Summit (NIES) in Abuja, a number of those who spoke maintained that the reluctance of the authorities to quickly expedite action on the cases was bad for the sector and, by extension, the Nigerian economy.

Among the pending divestment processes are the ones involving Exxon Mobil Corporation, which agreed to sell its shallow-water oil assets to Seplat Energy Plc almost two years ago.

The Nigerian National Petroleum Company Limited (NNPC) had raised objection to the deal, stressing that it has the right of first refusal.

Similarly stuck are Eni’s plan to sell some of its assets to Oando, and Equinor ASA’s deal with Chappal Energies. Shell Plc, which in January agreed to sell its Nigerian onshore oil business to a group of local companies for more than $1.3 billion is also awaiting regulatory approval.

Minister of State, Petroleum Resources (Oil), Senator Heineken Lokpobiri, has stressed at several forums that resolution of the cases had reached advanced stages and the federal would not hesitate to make the necessary approvals, yet none of the deals has sailed through.

But at the event in Abuja, Chairman of Independent Petroleum Producers Group (IPPG), who also leads Waltersmith Petroman Oil Limited, AbdulRazaq Isa, made a passionate plea for the processes to be completed as soon as possible.

Isa stated, “It is on this very important note that the IPPG passionately prays for the expedited conclusion and closure of the divestment processes. The current status where the sellers have signalled full intention to leave, whereas the buyers are yet to effectively take over the operation of the assets is very detrimental to the sector as well as the country.

“The industry would be most appreciative of the prompt intervention of the government to untangle all issues and diligently fast -track all relevant approvals.”

Managing Director of Shell Nigeria, Osagie Okunbor, was quoted by Bloomberg as stressing in one of the sessions that there was an “urgent need to conclude these transactions”.

On its part, Exxon said delays in approving the sale of its assets to London-listed Seplat were causing uncertainty for the communities and contractors that depended on those operations.

“It’s imperative that it’s concluded and that clarity is provided to everyone involved,” Exxon Nigeria Chief Executive Officer, Shane Harris, said at the same conference. “What’s really important is it helps resolve a significant amount of uncertainty that currently clouds thousands of people,” he added.

In a similar vein, Oando Plc’s acquisition of Eni’s Nigerian unit, which has interests in onshore oil and gas blocks and power generation, has been challenged by NNPC over the failure to obtain prior authorisation.

But Oando’s Executive Director, Alex Irune, said, “We do need the reviews, consent to come quickly.”

Irune added, “We do need to get on these assets and start working on them.”

The departure of international oil majors from onshore operations in Nigeria has coincided with years of declining investment in the industry.

But while accusing fingers obviously point at the regulator, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL both vehemently protested any insinuations that they were blocking the deals.

NUPRC’s Chief Executive, Gbenga Komolafe, in defence of the organisation he heads, insisted that he was only making sure that due process was followed.

Komolafe said, “Let me take time to respond to issues raised by the chairman of IPPG in respect of the issue of divestment, because it is critical for us as regulator to respond in that respect. We, acting on behalf of the government of Nigeria as the regulator of the upstream recognise that divestment is the right of licensees or operators.

“It’s a business decision, clearly, but in doing so, the position of the regulator is that the divestment must follow due process. And for that reason, we have put in place robust divestment processes, which we believe that if followed, will be in the interest of the government, the host communities, the seller, and the buyer.

“So, what we are doing as regulator is to ensure that both the buyer and seller and, of course, the government and the host communities are all on the same page.

“So, please, let the message be taken home that the regulator is in no way trying to be a showstopper in this respect. We are working collaboratively with the parties to the divestment to ensure that robust regulatory process that have been put in place is followed.”

Speaking against the backdrop of the perception that NNPCL was blocking IOCs intending to divest from Nigeria’s onshore, Group Chief Executive Officer, Mele Kyari, insisted that the role of NNPC was that of a facilitator, and not an obstacle.

Kyari explained that by virtue of its statutory mandate as the enabler of national energy security, its role was to ensure that at the end of the day, there was optimal and sustainable production from the divested assets to guarantee energy security for the benefit of Nigerians.

Meanwhile, some members of OPEC and allies, led by Russia, (OPEC+) yesterday agreed to extend voluntary first-quarter oil output cuts into the second quarter, sources told Reuters.

OPEC+ in November agreed to voluntary cuts totalling about 2.2 million barrels per day (bpd) for the first quarter, led by Saudi Arabia rolling over its own voluntary cut.

OPEC+ has implemented a series of output cuts since late 2022 to support the market amid rising output from the United States and other non-member producers and worries over demand as major economies grapple with high interest rates.

Oil prices have found support from rising geopolitical tensions due to attacks by the Iran-aligned Houthi group on Red Sea shipping, although concern about economic growth and high interest rates has weighed. Brent futures for May settled $1.64 higher, or 2 per cent, at $83.55 a barrel on Friday.

OPEC+ member countries announced the cuts individually. Kuwait said it would cut its oil output by 135,000 barrels a day (bpd) through June, while Algeria will cut its output by 51,000 bpd.

Manufacturing Uncategorized
December 26, 2023 No Comments

How Nigeria can address extractive industry’s challenges, revive Ajaokuta steel

Stakeholders at the PEEF Annual Conference (PAC) in Abuja raised concerns over challenges bedeviling Nigeria’s mining and steel industry in the country.

Identifying and proffering solutions to some of the challenges, the stakeholders said, the lack of innovative leadership, accountability, technical capabilities, and adequate financing require urgent attention.

They also noted, in a communiqué, that the absence of basic infrastructure, insecurity due to conflicts and criminal activities, inconsistent policies, and a lack of regulation impeding progress remained serious barriers in the sector.

They called for the need for strategic interventions and collaborative efforts to overcome the obstacles.The industry players said non-state actors, exemplified by organisations like the People Expertise and Excellence Foundation (PEEF), should continue their advocacy efforts to maintain attention on the sector.

They also asked for the sector’s resources to be harnessed with value-added and regulated approaches to accelerate economic growth. They added that non-state actors can play a vital role by forming a specialized team to document policy goals, monitor performance, and advocate for the sector’s development.

They noted that proper regulation at all levels is crucial for the sector’s development and growth, adding that there is a need to address inconsistent policies and conflicting responsibilities between federal and state governments.

The stakeholders said proper regulation and collaborative efforts are essential to unlock the great potential of Nigeria’s Extractive and Solid Minerals Sector, contributing significantly to economic growth and development.

They noted that Nigeria’s steel industry is lagging because of the lack of clear policy direction and commitment to national goals and aspirations by the Nigerian government.

They also blamed the situation on inadequate training and development opportunities for staff as well as poor integration of new technologies into current systems.

According to them, the steel industry has been roped in skewed concessions leading to losses and arbitration penalty payouts due to privatization policy.

They asked the government to deal with the issue of poor and unstructured funding, as well as complicated bureaucracy in government business. The conference participants, which seek the resuscitation of the Ajaokuta Steel Company (ASCL) and the development of the steel industry in Nigeria said the Nigerian government should develop a long-term and focused national plan for the resuscitation of ASCL, prioritizing the development of the steel industry and allocating necessary resources to achieve this goal.

“The government should provide patriotic and disciplined leadership, ensuring transparency, accountability, and good governance to ensure the success of the resuscitation of ASCL.

“Declaration of a state of emergency on steel to underscore the industry’s importance to the nation’s economic development, mobilizing necessary resources and focusing attention on ASCL’s resuscitation,” the industry players said.

They noted collaboration with other governments and the private sector to develop ASCL, bringing in expertise, technology, and funding to ensure project success.

Calling for the remodeling of privatization and concession models to ensure transparency and attract the right investors for the successful resuscitation of ASCL,

The players noted utilizing the Nigerian LNG model in resuscitating ASCL, involving a public-private partnership (PPP) model based on transparency, accountability, and good governance was necessary.

They said exploration of a bilateral government-to-government arrangement under a PPP model to fund the upgrade and rehabilitation programme for ASCL could address the age-long financial difficulties.

Uncategorized
April 25, 2023 No Comments

OPEC+ cuts risk oil supply deficit, threaten economic recovery -IEA

LONDON, April 14 (Reuters) – Output cuts announced by OPEC+ producers risk exacerbating an oil supply deficit expected in the second half of the year and could hurt consumers and global economic recovery, the International Energy Agency (IEA) said on Friday.

OPEC+ and the IEA have jousted in recent months over their outlooks for global oil supply and demand.

Consumer countries represented by the IEA have argued that tightening supplies drive up prices and could threaten a recession, while OPEC+ blames Western monetary policy for market volatility and inflation which undercuts the value of its oil.

“Oil market balances were already set to tighten in the second half of 2023, with the potential for a substantial supply deficit to emerge,” the IEA said in its monthly oil report.

“The latest cuts risk exacerbating those strains, pushing both crude and product prices higher. Consumers currently under siege from inflation will suffer even more from higher prices.”

The IEA saw 2023 demand at a record 101.9 million barrels per day, up 2 million barrels per day on last year and on par with its prediction last month.

OPEC+ called its surprise cut decision a “precautionary measure” and in a monthly oil report published on Thursday OPEC cited downside risks to summer oil demand from high stock levels and economic challenges.

The IEA said it expected global oil supply to fall by 400,000 bpd by the end of the year citing an expected production increase of 1 million bpd from outside of OPEC+ beginning in March versus a 1.4 million bpd decline from the producers bloc.

Gains outside the producer alliance were due to be led by the United States and Brazil, with Norway and Ecuador also making significant contributions.

Rising global oil stocks may have influenced the OPEC+ decision, the IEA added, noting the Organisation for Economic Cooperation and Development (OECD) industry stocks in January hit their highest level since July 2021 at 2.83 billion barrels.

Meanwhile Russian oil exports in March hit their highest levels since April 2020 on robust oil product flows, the IEA said, despite a seaborne import ban from the European Union and a price cap sanctions policy spearheaded by the United States.

Russia’s March revenue rose by $1 billion month on month to $12.7 billion, but was still 43% lower than a year earlier partly due to capped prices on its seaborne oil exports.

Uncategorized
April 25, 2023 No Comments

Nigeria’s Oil And Gas Sector Hit By $21 Billion In Divestments

The oil and gas production in Nigeria is being severely impacted by the Western ESG strategies that are forcing IOCs to reconsider their upstream and downstream operations worldwide, resulting in major reshuffling and divestments of assets. Nigeria, one of OPEC’s leading oil producers, has already seen $21 billion worth of assets divested, putting its future in jeopardy. In contrast to Western NGO’s strategies, NGOs in Nigeria, such as “We, the People,” are calling for a government moratorium to prevent further divestments in the Niger Delta.

The NGO is concerned that if oil companies are allowed to divest without cleaning up the entire Niger Delta region, the environmental issues in the area will never be addressed. Despite the ongoing divestments, African nations, including Nigeria, need to be given time to transition to using gas as their transition fuel, according to Ainojie Alex Irune, CEO of Oando Energy Resources. More investments and production are needed to counter expected demand growth in the future on the continent. In addition, NJ Ayuk, Executive Chairman of Africa Energy Chamber, believes that the continent needs to leverage its immediate resources to eliminate energy poverty, as Africa is a gas continent.

The regulatory uncertainty of Nigeria’s oil and gas sector prior to the enactment of the Petroleum Industry Act 2021 and ESG-related fossil fuel divestment schemes forced by energy transition and COVID-19 are the main reasons for the divestments, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Nigeria’s yearly capital expenditure in the upstream arm of the oil sector decreased by over 70% within a period of eight years. The country’s total annual upstream capital expenditure decreased by 74% from $27 billion in 2014 to less than $6 billion in 2022, and competition from regional peers has led to a decrease in the proportion of the overall upstream investment attracted by

However, there is still hope, as Nigeria is showing increased natural gas reserves and oil reserves in the short term. The NUPRC has reported that Nigeria’s oil and condensate reserves are 31.060 billion barrels for oil and 5.906 billion barrels for condensate. Associated gas reserves are 102.32 trillion cubic feet, non-associated gas reserves are 106.51 trillion cubic feet.

The future of Nigeria and Sub-Saharan Africa is at stake, and according to a growing amount of Southern leaders and analysts, it is time to reassess strategies and policies pushed by the North without delay. The divestment strategies being pushed by Western climate change and IPCC/IEA reports are not only controversial but now counterproductive for most developing countries.

Uncategorized
April 25, 2023 No Comments

Global Oil & Gas Market Rises To $7bn In 2023

The global oil and gas market reportedly grew from $6,989.65 billion in 2022 to $7,330.80 billion in 2023 at a compound annual growth rate (CAGR) of 4.9 per cent.

The Russia-Ukraine war however disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.

The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe.

The oil and gas market is expected to grow to $8,670.91 billion in 2027 at a CAGR of 4.3 per cent.
The oil and gas market consists of sales of crude oil, natural gas, refined petroleum products and asphalt, lubricating oil and grease.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.

Oil and Gas extraction is the exploration and production of petroleum and natural gas from wells.
Asia-Pacific was the largest region in the oil and gas market in 2022.North America was the second largest region in the oil and gas market.

The regions covered in the oil and gas market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The main types are oil & gas upstream activities, oil downstream products.Oil and gas upstream activities include exploration activities, such as creating geological surveys and obtaining land rights and production activities, such as onshore and offshore drilling.
The various drilling types include offshore; onshore that are used for residential, commercial, institutions and other applications.

Low interest rates in most developed countries will positively impact the oil and gas industry during the forecast period.For instance, in March 2020, UK decreased the interest rates to 0,1 per cent which was the lowest ever.

Furthermore, other Central Banks of countries such as North Macedonia, South Africa, Malaysia, Kenya, Argentina, Ukraine, Sri Lanka, and Azerbaijan, as well as Turkey also decreased their interest rates in 2020.

Oil price volatility is likely to have a negative impact on the market as significant decline and increase in oil prices negatively impacts the government and consumer spending.

The decline in oil prices is having a negative impact on government spending in countries such as, Nigeria, Saudi Arabia and the UAE (United Arab Emirates) which are largely dependent on revenues generated through crude oil exports; whereas significant increase in oil prices had resulted in rising inflation, current account deficit and fiscal deficit in countries such as; India and China, which predominantly import oil.

For instance, the Saudi government is expected to cut down its spending from 1.05 trillion riyals ($280 billion) in 2019 to 1.02 trillion riyals ($270 billion) in 2020, to 955 billion riyals ($255 billion) by 2022, due to significant decline in revenues generated from oil exports, thereby, affecting the market. This high volatility in oil prices is expected to negatively impact the market going forward.

Major companies in the oil and gas industry are looking into big data analytics and artificial intelligence (AI) to enhance decisions making abilities and thus drive profits.

Major companies in the oil and gas market include; Royal Dutch Shell, BP plc, Saudi Aramco, Exxon Mobil, Gazprom PAO, Chevron, Iraq Ministry of Oil, PJSC Lukoil, Total SA, and Rosneft.

The companies gather huge amounts of raw data relating to the working of refineries, pipelines and other infrastructure through a large number of sensors placed across the oil rig.

Using big data analytics, the companies can detect patterns which can allow them to quickly react to unwanted changes or potential defects, thus saving costs.AI allows the companies to take better drilling and operational decisions.
Companies such as ExxonMobil and Shell have been increasingly investing in AI technology to have a centralized method of data management and support data integration across multiple applications.

Other companies such as Sinopec, a Chinese chemical and petroleum corporation, has announced its decision to construct 10 intelligent centers to help in reducing operation costs by 20 per cent.

This oil and gas market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry

The countries covered in the oil and gas market are, Nigeria, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.

News Uncategorized
September 28, 2022 No Comments

Russia has halted gas deliveries to Germany

Russia has halted gas deliveries to Germany via a key pipeline for an indefinite period after saying Friday it had found problems in a key piece of equipment, a development that will worsen Europe’s energy crisis.

Russian gas giant Gazprom said Friday that the Nord Stream pipeline due to reopen at the weekend would remain shut until a turbine is repaired.

In a statement, Gazprom indicated it had discovered “oil leaks” in a turbine during a planned three-day maintenance operation.

Gazprom added that “until it is repaired… the transport of gas via Nord Stream is completely suspended”.

Resumption of deliveries via the pipeline which runs from near St Petersburg to Germany under the Baltic Sea had been due to resume on Saturday.

Gazprom said it had discovered the problems while carrying out maintenance with representatives of Siemens, which manufactured the turbine in a compressor station that pushes gas through the pipeline.

On its Telegram page, it published a picture of cables covered in a brown liquid.

Earlier in the day, the Kremlin warned the future operation of the Nord Stream pipeline, one of Gazprom’s major supply routes, was at risk due to a lack of spare parts.

“There are no technical reserves, only one turbine is working,” Kremlin spokesman Dmitry Peskov told reporters.

“So the reliability of the operation, of the whole system, is at risk,” he said, adding that it was “not through the fault” of Russian energy giant Gazprom.

Following the imposition of economic sanctions over the Kremlin’s invasion of Ukraine, Russia has reduced or halted supplies to different European nations, causing energy prices to soar.

The Kremlin has blamed the reduction of supplies via Nord Stream on European sanctions which it says have blocked the return of a Siemens turbine that had been undergoing repairs in Canada.

Germany, which is where the turbine is located now, has said Moscow is blocking the return of the critical piece of equipment.

Berlin has previously accused Moscow of using energy as a weapon.

The announcement by Gazprom comes the same day as the G7 nations said they would work to quickly implement a price cap on Russian oil exports, a move which would starve the Kremlin of critical revenue for its war effort.

Gazprom also announced the suspension of gas supplies to France’s main provider Engie from Thursday after it failed to pay for all deliveries made in July.

– ‘Much better position’ –
As winter approaches, European nations have been seeking to completely fill their gas reserves, secure alternative supplies, and put into place plans to reduce consumption.

A long-term halt to Russian gas supplies would complicate efforts by some nations to avoid shortages and rationing, however.

Germany said Friday its gas supplies were secure despite the halt to deliveries via Nord Stream.

“The situation on the gas market is tense, but the security of supply is guaranteed,” a spokeswoman for the economy ministry said in a statement.

The spokeswoman did not comment on the “substance” of Gazprom’s announcement earlier Friday but said Germany had “already seen Russia’s unreliability in the past few weeks”.

German officials have in recent times struck a more positive tone about the coming winter.

Before the latest shutdown, Chancellor Olaf Scholz said Germany was now “in a much better position” in terms of energy security, having achieved its gas storage targets far sooner than expected.

Europe as a whole has also been pushing ahead with filling its gas storage tanks, while fears over throttled supplies have driven companies to slash their energy usage.

Germany’s industry consumed 21.3 percent less gas in July than the average for the month from 2018 to 2021, said the Federal Network Agency.

Agency chief Klaus Mueller has said such pre-emptive action “could save Germany from a gas emergency this winter”.

Europe as a bloc meanwhile has been preparing to take emergency action to reform the electricity market in order to bring galloping prices under control.

Fear of shortages of natural gas has driven futures contracts for electricity in France and Germany to record levels.

European consumers are also bracing for huge power bills as utilities pass on their higher energy costs.

Uncategorized
September 20, 2022 No Comments

Nigeria to produce additional 255,000 bpd

Nigeria is set to produce additional 225,000 barrels per day, bpd, as Shell Nigeria Exploration and Production Company Limited, SNEPCo, has completed the 2022 Turnaround Maintenance, TAM, of the Bonga floating production storage and offloading, FPSO.

The FPSO was shut down on October 18, 2022, due to the statutory inspections, recertifications and other critical asset integrity restoration activities.

In a statement, yesterday, the company confirmed that the TAM was completed on November 9, 2022, adding the commissioning and start-up activities are currently in progress.

It stated: SNEPCo is pleased to announce that the 2022 TAM of the Bonga floating production storage and offloading vessel (FPSO) has been completed.

“The 225kbopd capacity FPSO was shut down on October 18, 2022,  to carry out statutory inspections, recertifications and other critical asset integrity restoration activities.

“The 2022 TAM which was originally planned for 30 days was completed in 22 days on November 9, 2022,  thanks to the excellent front-end planning and flawless execution.

“Commissioning and start-up activities are in progress and will culminate in ramp up of oil and gas production in the coming days.”

However, in its latest report obtained by Vanguard, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, said that Nigeria’s dwindling average oil output, including condensate, dropped Year-on-Year, YoY, by 7.4 per cent to 1.37 million barrels per day, mb/d in the first 10 months (January – October) 2022, from 1.48 mb/d in the corresponding period of 2021.

This showed a shortfall of 317,940 barrels when juxtaposed against the 1.69 mb/d, which the 2023 budget was based on at $70 per

Uncategorized
May 5, 2022 No Comments

Again, vandals attack Bayelsa pipeline, disrupt Agip’s gas export

Barely one week after it was attacked by vandals on March 29, the 24-inch Ogboinbiri/OB-OB gas pipeline has been vandalised and set ablaze, disrupting the firm’s gas export schedule from oilfields in Bayelsa State

The breach of the pipeline operated by Nigerian Agip Oil Company (NAOC) cuts the oil firm’s gas export feed to the Nigeria Liquified Natural Gas gathering and processing plant.

The vandalised point, located within Okaka and Azikoro in Yenagoa Council, was engulfed by fire on Wednesday.

Mr. Idris Musa, Director-General/Chief Executive Officer, National Oil Spills Detection and Response Agency (NOSDRA) confirmed the incident yesterday.

The spills response agency had on March 30 said its investigations revealed a rising spate of sabotage-induced oil and gas leaks at oilfields in Bayelsa.

Musa had raised the alarm that three sabotage incidents had occurred on oil and gas facilities in Bayelsa within one week and advised operators to reinforce surveillance.

The NOSDRA boss explained that a few days after fixing the gas pipeline, vandals blew up the pipeline again and it went up in flames.

“There was a gas leak last week from a vandalised gas pipeline OB-OB/Ogboinbiri pipeline at Okaka in Bayelsa State.

“The pipeline was repaired but unfortunately vandalised again, thus resulting in fire.

“The Nigerian Agip Oil Company is working actively to depressurise the pipeline to effect repairs on the pipeline,” Musa said.

Officials of NAOC declined to comment on the incident.

The fire at the site, which had forced surrounding vegetation to wither, has not been put out as of yesterday morning.