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The protracted dispute on Oil Mining Leases (OMLs) 123124, 126137, operated by Addax Petroleum Nigeria Limited, has finally been laid to rest, paving the way for much-needed investment and growth of the oil blocks.
Mr Garba Muhammad, Chief Corporate Communications Officer, Nigerian National Petroleum Company Limited (NNPC Ltd) in a statement on Wednesday said the Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between NNPC and Ashland.
Muhammad said the contract was terminated after 25 years but subsequently, NNPC signed another PSC with Addax in 1998 on the blocks and operated through Addax Petroleum for another 24yrs.
He said in 2021, issues around the revocation of the licences were reconsidered.
This, he said made the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) advised that the assets be returned to the Concessionaires (NNPC Limited) to ensure clean and amicable exit for Addax.
“On Jan. 25, NNPC Limited commenced formal engagements with Addax and NUPRC; followed by series of meetings to ensure a swift close-out of the exit discussions and formalities.
“These discussions eventually paved way for the preparation and signing of a Transfer, Settlement and Exit Agreement (TSEA),” he said.
In his remarks at the close-out and signing ceremony, the NNPC GCEO, Mele Kyari, charged the Transition Management Team to hit the ground running towards restoration and fulfilment of the promise of the Assets.
He promised that readjustment will be swift and efficient, in order to extract optimum value from the assets, and to deliver maximum value to shareholders.
NewsSourceCredit: NAN
The morale of staff of the Nigerian National Petroleum Company Limited (NNPCL) was boosted within the week as the House of Representatives declared support to the quest by the company to embark on the rehabilitation of the nation’s refineries.
The support was declared by the house ad hoc Committee on Refineries after NNPCL intensified effort to reduce the nation’s dependence on importation of petroleum products.
Speaking during an oversight visit to the Warri Refining and Petrochemical Company (WRPC), Chairman of the Committee, Rep. Abdul Ganiyu Johnson, said that they were ready and willing to work and support the NNPC towards realising the objective of the rehabilitation.
Johnson said that the committee’s visit was to ascertain the level of job that is ongoing in the refinery while expressing satisfaction that the contractor has already mobilised equipment and personnel to the site.
The chairman gave the assurance that the committee would support any measure being taken by the NNPCL to ensure the commencement of production that would ultimately reduce dependence on fuel importation.
Giving an overview of the plant, the acting Managing Director of the Company, Mr Desmond Inyamah, disclosed that a Quick –fix Maintenance Service Contract for the refinery was signed in June and the timeline for the completion of Area 1&2 is 12 months.
Inyamah noted that the 12 months would begin to count from the commencement of work, adding that the refinery would operate at 60 per cent of its installed capacity after the completion of the Fluid Catalytic Cracking Unit (FCC).
He expressed delight at the show of solidarity and support by the legislators.
It would be recalled that the quick fix maintenance service agreement for the Warri refinery was signed with Daewoo Nigeria limited on June 24 in Abuja.
Refineries Rehab: Reps Back NNPCL, Declare Total Support
In another development, the Nigerian Society of Chemical Engineers (NSCHE) conferred the institution’s Honorary Fellowship on the Group Chief Executive Officer (GCEO) of the NNPCL, Malam Mele Kyari.
The conferment took place at the society’s 30th Fellows’ Conference in Abuja.
Speaking at the ceremony, Prof. Ayodele Ogunye, a former president of the society, stated that the honour was in recognition of the valuable contributions of the Kyari led NNPC towards the advancement of Chemical Engineering in Nigeria.
Ogunye noted that the company remained the highest employer of chemical engineers in the country.
Kyari, who was the Guest Speaker at the conference with the theme: New Perspectives for Addressing Upstream, Midstream and Downstream Petroleum Issues in Nigeria”, disclosed that the new NNPC was open to a new business model of taking equity in viable projects against sole ownership.
Sylva and KyariHe said the major focus of the company was to ensure that the nation’s refineries returned to optimal production capacity before presenting them to stakeholders to decide on the best way to manage the assets in the interest of all concerned.
The NNPCL GCEO pointed out that the company while taking advantage of the opportunities provided by current assets to satisfy the energy needs of today, it looked forward to converting the plants into other useful purposes toward the 2060 net zero commitment.
In his remarks, the conference chairman, retired Maj.-Gen. IBM Haruna, advised the leadership of the new NNPCL to take seriously the issue of good corporate governance based on transparency and accountability.
This, Haruna said would enable the company to gain the confidence of the people, especially on matters of land and other operational assets.
On his part, the President of the NSCHE and former Group Executive Director, Gas and Power Directorate of the NNPC, Mr Seidu Mohammed, commended the NNPCL GCEO for the achievements recorded within the few years in office.
He said that the body was ready to proffer workable solutions toward assisting the new NNPCL achieve its desired goal, emphasising that the society had pool of experienced professionals in that regard.
Sylva calls for collaboration in the area of energy diplomacy
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NewsSourceCredit: NAN
The Nigerian National Petroleum Company Limited (NNPC Ltd), says the cooperation with Nigerian security has significantly reduced the scale of oil theft in the Niger Delta Region, following the discovery of several illegal pipes.
The Group Chief Executive Officer (GCEO) NNPC Ltd, Malam Mele Kyari made this known on Tuesday in Abuja at the ongoing Energy and Labour Summit 2022 organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Kyari, in a keynote address, spoke on “Energy Transition: Positioning the Nigeria Energy Industry for the Future(Government Perspective)”.
The GCEO while speaking on a wide-range of industry issues such as Energy Transition, Petroleum Industry Act 2021, a brand new NNPCLtd, tackling crude oil theft, he underscored the need for collaboration to halt the crude oil theft to spur economic growth.
“The situation of vandals action on our pipelines and generality of crude oil theft has reach to the point that it needs all to react.
The government security and regulatiory agencies, whether service or operating are on the table today,” he said.
Kyari, while expressing optimism that the country will have access to more crude – and revenue in the coming weeks said the PIA passage had made the industry competitive, bringing companies back for investments while business decisions were being made.
Also speaking, Mr Gbenga Komolafe, Commission Chief Executive (CCE), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) commended PENGASSAN for organising the event which dwelt on “Energy Transition and its Effect on Workforce in the Nigerian Oil and Gas Sector”.
Komolafe lauded PENGASSAN on its constructive roles in ensuring industrial peace and harmony, even as the industry was challenged by global and domestic factors like energy transition, climate change, paucity of financing, crude oil theft and a host of other constraints.
The CCE said remarkably, the oil and gas industry in Nigeria had contributed immensely to the economic growth of Nigeria for over five decades.
Through this period, he said the industry metamorphosed from one dominated solely by international Operators, to an industry with many indigenous players pulling their weight positively across operations in the petroleum value chain.
He said the success and growth witnessed in the industry over this period could be hinged on robust government policies such as Nigerian Oil and Gas Industry Content Development Act and PIA 2021 and other regulations, Investments and competent workforce.
“Nigeria could further strengthen the resilience of our resources by considering initiatives to decarbonise existing oil and gas operations and continue to encourage investment in lower-carbon energy infrastructure such as gas pipelines.
“It is expected that gas reserves would be a more resilient energy source under a range of energy transition scenarios,” said the CCE.
He further listed some robust regulatory enablers to facilitate these energy resilience approaches that would make our hydrocarbon projects low carbon emitters and more attractive to investors to include the National Policy on Decade of Gas which is hinged on the Natural Gas Expansion Programme.
Others, according to him are Natural Gas Flare Commercialisation Programme, Natural Gas Flare Elimination and Monetisation Plan in line with Section 110 of the PIA, 2021.
He also included Guideline for Management of Fugitive Methane and Greenhouse Gases Emissions in the Upstream Oil and Gas Operations in Nigeria and the inclusion of Gas Infrastructure Fund in PIA.
He underscored the need to begin to develop local innovative financing solutions to develop our huge gas resources as the number of international traditional investors have dropped drastically.
To this end, he said the Africa Export Import bank (Afrexim) and Africa Petroleum Producers Organisation (APPO) had decided to set up an Africa Energy Bank to provide capital for oil and gas projects in Africa.
NewsSourceCredit: NAN
The Nigerian National Petroleum Company Limited (NNPC LTD.
) has completed the acquisition of OVH Energy Marketing Limited (OVHEM) downstream assets under an Accelerated Network Expansion (ANEX) Initiative.
Unveiling the acquisition on Saturday in Abuja, Sen. Margery Okadigbo, NNPC Ltd Board Chairman, said it would strengthen the downstream business portfolio to enhance profitability and guarantee National Energy Security.
The News Agency of Nigeria reports that downstream assets acquisition which were from OVHEM, operators of Oando filling stations, include reception jetty (ASPM) with 240,000MT monthly capacity and eight LPG Plants.
Others include three Lubes blending plants, three Aviation Depots, and 12 warehouses.
Okadigbo said the acquisition would bring over 380 additional filling stations under NNPC Retail brand in Nigeria and Togo to its journey of attaining 1,500 stations.
“We will be the largest petroleum product retail network in Africa.
We are going to have the Biggest filling station collection in Africa.
“OVH has given us so much to look after the investment we have you on the package to continue to work with us,” Okadigbo said.
Malam Mele Kyari, NNPC Ltd. Group Chief Executive (GCEO), said the merger was achievable through NNPC Ltd robust system and network, being an institution with the capabilities to deliver to shareholders.
Kyari said the acquisition was in line with President Muhammadu Buhari’s zeal for the NNPC to consistently provide energy security for Nigeria which involved access to products and management of the every transition.
“By this merger, we are the largest downstream company with robust network in the country and in Africa.
“This is vehicle to ensure we deliver on the energy transition in the country.
“We will use it to deliver Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (C into the market.
“Poor citizens who rely on biomass to cook.
70 per cent of Nigerians don’t have access to clean cooking fuel downstream company with robust network in the country and in Africa.
This is an opportunity for us to utilise this privilege and expand it.
“Today what we have struggled for years have been attained.
We will deliver value to our stakeholders and guarantee energy to all,” he said.
In a remark, Huub Stokman, OVH CEO, said the company was enthusiastic of the future potential and capabilities of the combine entity and was ready to bring efficiency in leading business.
Stokman said this acquisition from NNPC, which would transform downstream energy sector in West Africa, came at a critical time in the Nigerian energy sector and in the light of the enactment of the Petroleum Industry Act 2021 (PIA).
“As the demand is still increasing, also there should be deliberate effort to increase the supply in consumption of Natural Gas energy transition.
“The combined entity will be well positioned to take advantage of these opportunities in a way the will really positively impact oil and gas downstream sector,” he said.
NewsSourceCredit: NAN
The Nigerian National Petroleum Company Limited (NNPC Ltd.) on Friday launched ‘Crude Theft Monitoring Applications’ to curb oil theft and pipeline vandalism.
The News Agency of Nigeria reports that the launch held in Abuja on the sideline of the signing of renewed Production Sharing Contracts (PSCs) agreements between NNPC and its partners in Oil Mining Leases.
The portal with the address ‘stopcrudetheft.
com’ could also be accessed through a mobile phone.
The portal has application options for reporting incidences, with prompt follow up and responses and another one for crude sales documents validation.
Speaking during the launch, Malam Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Ltd. said ”vandals’ actions on pipelines became a difficult thing to deal with, but it engaged partners to ensure that it responded to the situation.
”
According to the GCEO, there was involvement of government regulatory bodies, security agencies and host communities while it put up a robust framework to curtail the menace.
“There are still ongoing activities of oil thieves and vandals on our pipelines and assets, very visible in the form of illegal refineries that are continuously put up in some locations and insertions into our pipeline network.
“Arrests have been made and vessels have been arrested by Nigerian Navy, I commend the Armed forces, in the last three months, they have done substantive work and had destroyed some illegal refineries,” he said.
Kyari said international refineries where the stolen crude could be taken to had obligations to ensure they bought Nigerian crude from credible sources which could be validated.
He said, ”if they refused to do that, they would be held responsible as part of the culprits involved.
”
He explained that the platforms were created for members of the communities and other Nigerians to report incidences of theft and be rewarded.
Kyari urged that on the international arena, companies must report suspicious sale.
He further said,”every product that left the country must have a unique registration number by the NNPC and validated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“Ahead of this, we are also creating a platform where end-users, particularly refiners and traders can validate the product.
“We cannot do this without international collaboration.
It is impossible for any refinery to take a crude they do not know the source, refineries are designed to process certain specific grade of crude.
“It is their duty to ensure that they validate this, because we have unique number of every crude that leaves this country,” he said.
The GCEO, while stating that it has a total coordination process now, said it had a line of sites around all marine movement in the country and had created a functional platform.
“We have visibility around everyone’s operations and the Economic and Financial Crime Commission (EFCC) is following everyone related to those transactions.
“Wherever there is massive movement of cash, EFCC will follow the person, we believe that the combination of all these will get us back to normalcy,” he said.
NewsSourceCredit: NAN
By Itohan Abara-Laserian
The Nigerian Stock Exchange (NSE) said Mr. Oscar Onyema had completed his tenure as CEO after a period of 10 years.
Mr. Olumide Orojimi, head of corporate communications at NSE, said in a statement in Lagos on Tuesday that a closing ceremony took place on April 1 in honor of Onyema.
Additionally, Otunba Abimbola Ogunbanjo, President, Nigerian Exchange Group (NGX Group) Plc, said the closing gong was in commemoration of Onyema's exemplary leadership.
Following the successful demutualization of the Exchange, Onyema would become the Group Chief Executive Officer (GCEO), NGX Group Plc.
Ogunbanjo said, “It is impossible to overstate Oscar Onyema's contributions to the growth of The Exchange and the development of the capital market over the past 10 years.
“After his first year as a manager, it became evident that his strategic mind and mastery of the Exchange business is what NSE needs to achieve its next level of growth.
“As expected, The Exchange has experienced significant growth over the years, most notable of which is the recent completion of the demutualization of The Exchange.
"It was indeed a pleasure working with him during our time at the NSE and I look forward to continuing our journey to greatness in the NGX era."
The new GCEO, Onyema, said: “I came to the NSE when the stock market was in the doldrums, investor confidence low, the mono-product and the stock market under regulatory administration.
“With tunnel vision, collaboration with stakeholders in the financial system and perseverance, we were able to overcome almost any challenge.
“I am delighted to have worked with thoughtful members of the National Council, visionary leaders on the Executive Committee and a team of experts from The Exchange to achieve such excellent results.
“We have come a long way from where we were and I am excited about the opportunities that demutualization opens up for us in the years to come.
“I must reiterate my commitment to ensuring that NGX Group Plc and its subsidiaries fulfill their mandate to become the leading provider of financial market infrastructure in Africa.
“I look forward to deepening partnerships with existing stakeholders and exploring new collaborations locally and globally to make this goal a reality.”
The demutualization of the Stock Exchange led to the emergence of the Nigerian Exchange Group Plc and three subsidiaries: Nigerian Exchange (NGX) Limited; NGX Regulation (RegCo) Limited and NGX Real Estate Limited.
Mr. Temi Popoola will assume the role of CEO of NGX Limited while Ms. Tinuade Awe will become CEO of NGX RegCo Limited. (NOPE)
(NAN)Heirs Holdings (“HH”) (www.HeirsHoldings.com), the leading African strategic investor, in partnership with affiliated company Transnational Corporation of Nigeria Plc (“Transcorp”) (https://TranscorpNigeria.com), Nigeria’s largest publicly listed conglomerate, announced today the unconditional acquisition of a 45% participating interest in Nigerian oil licence OML 17 and related assets, through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp) (http://TNOG.HeirsHoldings.com), from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI. In addition, TNOG Oil and Gas Limited will have sole operatorship of the asset.
The transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing component of US$1.1 billion, provided by a consortium of global and regional banks and investors. OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, according to our estimates, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.
The investment demonstrates a further important advance in the execution of Heirs Holdings’ integrated energy strategy and the Group’s commitment to Africa’s development, through long term investments that create economic prosperity and social wealth. Heirs Holdings’ heritage and approach to business fundamentally underscores its commitment to inclusive development and shared prosperity with its host communities. Heirs Holdings is fully invested in the development of the Niger Delta region.
Heirs Holdings’ strategy of creating the leading integrated energy business in Africa is executed through a series of strategic portfolio holdings. Transcorp is one of the largest power producers in Nigeria, with 2,000 MW of installed capacity, through ownership of Transcorp Power Plant (https://TranscorpPower.com) and the recent acquisition of Afam Power Plc and Afam Three Fast Power Limited. Transcorp closed the US$300 million Afam acquisitions in November 2020. Transcorp supplies electricity to the Republic of Benin, as part of an emphasis on promoting regional integration and delivering robust power supply to catalyse development in Africa. Transcorp also operates OPL281, under a production sharing contract with the Nigerian National Petroleum Corporation (“NNPC”). Similarly, Heirs Holdings’ subsidiary, Tenoil is the operator of OPL 2008, under a production sharing contract with NNPC. Tenoil also owns the Ata Marginal Field, which will commence production in Q2, 2021, with 3,500 barrels of oil per day.
Chairman of Heirs Holdings, Tony Elumelu stated: “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled. As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.”
Speaking further, he said “I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”
Speaking on the investment, the President/GCEO of Transcorp, Owen Omogiafo, said “This deal further demonstrates Transcorp’s integrated energy strategy and our determination to power Africa.”
Heirs Holdings was advised by Standard Chartered Plc, as Global Coordinator, and United Capital Plc (https://www.UnitedCapitalplcGroup.com), with a syndicate of lending institutions including Afreximbank, ABSA, Africa Finance Corporation, Union Bank of Nigeria, Hybrid Capital, and global asset management firm Amundi. The deal also involves Schlumberger as a technical partner, as well as the trading arm of Shell as an offtaker.
Heirs Holdings has created one of Africa’s largest, indigenous owned, oil and gas businesses, headquartered in Lagos, Nigeria and led by a board and management team with significant regional and global experience in production, exploration, and value creation in the resources sector. The HH Group is committed to the highest standards of safety, health, and community relations, together with best practice in governance and accountability.
