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  •  TotalEnergies on Wednesday said the commencement of production from its Ikike field would help to bridge Nigeria s oil production gap which had declined in recent times Mr Mike Sangster the Managing Director TotalEnergies E amp P Nigeria made this known at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE in Lagos The News Agency of Nigeria reports that the Ikike project is a Joint Venture between TotalEnergies 40 per cent and the Nigerian National Petroleum Company Ltd 60 per cent Located 20 kilometers off the coast at a depth of about 20 meters the Ikike platform is tied back to the existing Amenam offshore facilities through a 14km multiphase pipeline Represented by Mr Victor Bandele the Deputy Managing Director Deepwater TotalEnergies E amp P Nigeria Sangster said the field would add 50 000 barrels per day to Nigeria s oil production He said That kind of the project first is low capex which is what Nigeria needs now It is high profit which is what Nigeria needs now and it s helping to bridge the gap that we have caused by ourselves Today our Organisation of the Petroleum Exporting Countries OPEC quota is 1 8 million barrels we are producing less than 1 3 million So what for me is success is that we don t waste the capacity that we should have as a country When we are supposed to be producing 1 8 million we should do more than that and be able to take benefits of what we have today Sangster called for more collaboration among operators in the sector to optimise cost and improve efficiency in their operations He said there was a need for the industry stakeholders to work with the government in addressing the current security challenges such as pipeline vandalism and oil theft that was affecting the sector NewsSourceCredit NAN
    Ikike field will help Nigeria bridge production gap – TotalEnergies
     TotalEnergies on Wednesday said the commencement of production from its Ikike field would help to bridge Nigeria s oil production gap which had declined in recent times Mr Mike Sangster the Managing Director TotalEnergies E amp P Nigeria made this known at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE in Lagos The News Agency of Nigeria reports that the Ikike project is a Joint Venture between TotalEnergies 40 per cent and the Nigerian National Petroleum Company Ltd 60 per cent Located 20 kilometers off the coast at a depth of about 20 meters the Ikike platform is tied back to the existing Amenam offshore facilities through a 14km multiphase pipeline Represented by Mr Victor Bandele the Deputy Managing Director Deepwater TotalEnergies E amp P Nigeria Sangster said the field would add 50 000 barrels per day to Nigeria s oil production He said That kind of the project first is low capex which is what Nigeria needs now It is high profit which is what Nigeria needs now and it s helping to bridge the gap that we have caused by ourselves Today our Organisation of the Petroleum Exporting Countries OPEC quota is 1 8 million barrels we are producing less than 1 3 million So what for me is success is that we don t waste the capacity that we should have as a country When we are supposed to be producing 1 8 million we should do more than that and be able to take benefits of what we have today Sangster called for more collaboration among operators in the sector to optimise cost and improve efficiency in their operations He said there was a need for the industry stakeholders to work with the government in addressing the current security challenges such as pipeline vandalism and oil theft that was affecting the sector NewsSourceCredit NAN
    Ikike field will help Nigeria bridge production gap – TotalEnergies
    General news2 months ago

    Ikike field will help Nigeria bridge production gap – TotalEnergies

    TotalEnergies on Wednesday said the commencement of production from its Ikike field would help to bridge Nigeria’s oil production gap which had declined in recent times.

    Mr Mike Sangster, the Managing Director, TotalEnergies E&P Nigeria, made this known at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos.

    The News Agency of Nigeria reports that the Ikike project is a Joint Venture between TotalEnergies (40 per cent) and the Nigerian National Petroleum Company Ltd. (60 per cent).

    Located 20 kilometers off the coast, at a depth of about 20 meters, the Ikike platform is tied back to the existing Amenam offshore facilities through a 14km multiphase pipeline.

    Represented by Mr Victor Bandele, the Deputy Managing Director, Deepwater, TotalEnergies E&P Nigeria, Sangster said the field would add 50,000 barrels per day to Nigeria’s oil production.

    He said: “That kind of the project first is low capex, which is what Nigeria needs now.

    It is high profit, which is what Nigeria needs now and it’s helping to bridge the gap that we have caused by ourselves.

    “Today, our Organisation of the Petroleum Exporting Countries (OPEC) quota is 1.8 million barrels, we are producing less than 1.3 million.

    “So, what for me is success is that we don’t waste the capacity that we should have as a country.

    “When we are supposed to be producing 1.8 million, we should do more than that and be able to take benefits of what we have today.

    ” Sangster called for more collaboration among operators in the sector to optimise cost and improve efficiency in their operations.

    He said there was a need for the industry stakeholders to work with the government in addressing the current security challenges such as pipeline vandalism and oil theft that was affecting the sector.


    NewsSourceCredit: NAN

  •  Seplat Energy Plc on Wednesday said there were huge business opportunities for investors in Nigeria s transition to cleaner sources of energy Mr Roger Brown the Chief Executive Officer Seplat Energy Plc made this known while delivering a keynote address at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE in Lagos The News Agency of Nigeria reports that the topic of the panel session was Operationalising a Clean Energy Transition for Sustainable Development in Africa Represented by Mr Effiong Okon New Energies Director Seplat Energy Plc Brown said lack of access to energy by Nigeria and other African countries remain a huge opportunity for investors He said Nigeria in particular had a strong potential for growth and that energy transition was an opportunity to create a sustainable future for the country According to him Nigeria s population is projected to hit 329 million by 2040 with an electricity demand of 240TWh Brown said there was the need for investment in gas and renewables such as hydro solar and wind which would play key roles in Nigeria s industrialisation in the near future He said The greatest business opportunity ahead of us is to supply the right mix of energy to support Nigeria s growth In doing so we must make a positive social impact and contribute to Nigeria s achievement of the United Nations Sustainable Development Goals Brown said Seplat was in support of the Federal Government s decision to make gas Nigeria s energy transition fuel and would continue to make investments toward the development and utilisation of the country s abundant gas resources While listing the company s achievement he said Seplat had since 2011 invested a capex of 1 7 billion in the sector and had paid 445 million dividends since its Initial Public Offerring IPO He said the 700 million ANOH Gas Processing Company being constructed by Seplat and the Nigerian National Petroleum Company Ltd at Asaa in Imo was nearing completion Brown said the project when completed would provide gas to boost the much needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth Earlier Prof Olalekan Olafuyi Chairman SPE Nigeria Council urged African countries to priotise reduction of energy poverty in the continent while also working on decarbonising the energy system Olafuyi said that the continent s contribution to global carbon emission was relatively low He added that there was the need to utilise its huge hydrocarbon resources for industrialisation and human capital development NewsSourceCredit NAN
    Huge investment opportunities in Nigeria’s energy transition abound – Seplat
     Seplat Energy Plc on Wednesday said there were huge business opportunities for investors in Nigeria s transition to cleaner sources of energy Mr Roger Brown the Chief Executive Officer Seplat Energy Plc made this known while delivering a keynote address at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE in Lagos The News Agency of Nigeria reports that the topic of the panel session was Operationalising a Clean Energy Transition for Sustainable Development in Africa Represented by Mr Effiong Okon New Energies Director Seplat Energy Plc Brown said lack of access to energy by Nigeria and other African countries remain a huge opportunity for investors He said Nigeria in particular had a strong potential for growth and that energy transition was an opportunity to create a sustainable future for the country According to him Nigeria s population is projected to hit 329 million by 2040 with an electricity demand of 240TWh Brown said there was the need for investment in gas and renewables such as hydro solar and wind which would play key roles in Nigeria s industrialisation in the near future He said The greatest business opportunity ahead of us is to supply the right mix of energy to support Nigeria s growth In doing so we must make a positive social impact and contribute to Nigeria s achievement of the United Nations Sustainable Development Goals Brown said Seplat was in support of the Federal Government s decision to make gas Nigeria s energy transition fuel and would continue to make investments toward the development and utilisation of the country s abundant gas resources While listing the company s achievement he said Seplat had since 2011 invested a capex of 1 7 billion in the sector and had paid 445 million dividends since its Initial Public Offerring IPO He said the 700 million ANOH Gas Processing Company being constructed by Seplat and the Nigerian National Petroleum Company Ltd at Asaa in Imo was nearing completion Brown said the project when completed would provide gas to boost the much needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth Earlier Prof Olalekan Olafuyi Chairman SPE Nigeria Council urged African countries to priotise reduction of energy poverty in the continent while also working on decarbonising the energy system Olafuyi said that the continent s contribution to global carbon emission was relatively low He added that there was the need to utilise its huge hydrocarbon resources for industrialisation and human capital development NewsSourceCredit NAN
    Huge investment opportunities in Nigeria’s energy transition abound – Seplat
    General news2 months ago

    Huge investment opportunities in Nigeria’s energy transition abound – Seplat

    Seplat Energy Plc on Wednesday said there were huge business opportunities for investors in Nigeria’s transition to cleaner sources of energy.

    Mr Roger Brown, the Chief Executive Officer Seplat Energy Plc, made this known while delivering a keynote address at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos.

    The News Agency of Nigeria reports that the topic of the panel session was: “Operationalising a Clean Energy Transition for Sustainable Development in Africa.

    ” Represented by Mr Effiong Okon, New Energies Director, Seplat Energy Plc, Brown said lack of access to energy by Nigeria and other African countries remain a huge opportunity for investors.

    He said Nigeria in particular had a strong potential for growth and that energy transition was an opportunity to create a sustainable future for the country.

    According to him, Nigeria’s population is projected to hit 329 million by 2040 with an electricity demand of 240TWh. Brown said there was the need for investment in gas and renewables such as hydro, solar and wind which would play key roles in Nigeria’s industrialisation in the near future.

    He said: “The greatest business opportunity ahead of us is to supply the right mix of energy to support Nigeria’s growth.

    “In doing so, we must make a positive social impact and contribute to Nigeria’s achievement of the United Nations’ Sustainable Development Goals.

    ” Brown said Seplat was in support of the Federal Government’s decision to make gas Nigeria’s energy transition fuel and would continue to make investments toward the development and utilisation of the country’s abundant gas resources.

    While listing the company’s achievement, he said Seplat had since 2011 invested a capex of $1.7 billion in the sector and had paid $445 million dividends since its Initial Public Offerring (IPO).

    He said the $700 million ANOH Gas Processing Company being constructed by Seplat and the Nigerian National Petroleum Company Ltd. at Asaa, in Imo was nearing completion.

    Brown said the project, when completed would provide gas to boost the much-needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth.

    Earlier, Prof. Olalekan Olafuyi, Chairman, SPE Nigeria Council, urged African countries to priotise reduction of energy poverty in the continent while also working on decarbonising the energy system.

    Olafuyi said that the continent’s contribution to global carbon emission was relatively low.

    He added that there was the need to utilise its huge hydrocarbon resources for industrialisation and human capital development.


    NewsSourceCredit: NAN

  •  The Federal Government on Tuesday reiterated its commitment to achieving self sufficiency and net exporter of energy resources by 2026 Mr Bala Wunti Group General Manager National Petroleum Investment Services NAPIMS made this known while speaking at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Tuesday in Lagos The News Agency of Nigeria reports that he spoke during a panel session on Sustainable Energy Transition Strategy The Role of Legislative Frameworks and Investment Programmes Wunti said though the government had pledged to achieve net zero carbon emission by 2060 its priority remains reducing energy poverty in the country with its abundant hydrocarbon resources To this end he said the government s target was to attain zero dependence on imported energy both primary and secondary as well as becoming a net exporter of secondary energy resources by 2026 Wunti said the plan was to provide access to energy to 100 per cent of the population through the gas to power initiative which would spur industrialisation and economic growth He however maintained that this could only be achieved through effective legislative frameworks and investment programmes needed to maximise the opportunities in the oil and gas sector Wunti said there was need to create a platform where market investment and financing come together with regard to delivery of energy in a more sustainable manner He noted that unfortunately the industry had witnessed decline in investments in recent years which had plunged the world into the global energy crisis According to him available statistics from the Organisation of the Petroleum Exporting Countries OPEC shows that the world requires 11 8 trillion to meet its energy needs Wunti said the current global energy crisis was due to energy imbalance with supply falling short of demand which had driven the price of energy resources upward Also Mr Austin Avuru Chairman AA Holdings Ltd said Africa must design home grown solutions to the divestment of assets by International Oil Companies across the continent Avuru said the move was largely responsible for Nigeria being unable to meet its OPEC quota adding that there was need to grow indigenous companies to fill the void created by the divestment of the IOCs He said the way forward was for the companies to get access to funding from within the continent for oil and gas exploration Avuru also called for deployment of technologies production of more natural gas and encouragement of tree planting to achieve decarbonisation while maximising the continent s abundant oil and gas resources Earlier in his remarks Prof Olalekan Olafuyi Chairman SPE Nigeria Council decried the lack of access to energy by many Africans Olafuyi said building a sustainable energy sector was fundamental for the African continent to power sustainable industrialisation and trade He said this underpins the African Continental Free Trade Area AfCFTA plan and thus highlights further the need for regional integration to solve Africa s energy and climate challenges Ramping up sustainable energy generation capacity by 2030 according to the African Development Bank s AfDB New Deal on Energy for Africa requires a minimum of 44 billion of annual financing Maintaining and extending the pace of progress will thus require strong political commitment and sound governance long term energy planning adequate political and fiscal incentives as well as public and private financing he said NewsSourceCredit NAN
    FG reiterates commitment to energy self-sufficiency by 2026
     The Federal Government on Tuesday reiterated its commitment to achieving self sufficiency and net exporter of energy resources by 2026 Mr Bala Wunti Group General Manager National Petroleum Investment Services NAPIMS made this known while speaking at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Tuesday in Lagos The News Agency of Nigeria reports that he spoke during a panel session on Sustainable Energy Transition Strategy The Role of Legislative Frameworks and Investment Programmes Wunti said though the government had pledged to achieve net zero carbon emission by 2060 its priority remains reducing energy poverty in the country with its abundant hydrocarbon resources To this end he said the government s target was to attain zero dependence on imported energy both primary and secondary as well as becoming a net exporter of secondary energy resources by 2026 Wunti said the plan was to provide access to energy to 100 per cent of the population through the gas to power initiative which would spur industrialisation and economic growth He however maintained that this could only be achieved through effective legislative frameworks and investment programmes needed to maximise the opportunities in the oil and gas sector Wunti said there was need to create a platform where market investment and financing come together with regard to delivery of energy in a more sustainable manner He noted that unfortunately the industry had witnessed decline in investments in recent years which had plunged the world into the global energy crisis According to him available statistics from the Organisation of the Petroleum Exporting Countries OPEC shows that the world requires 11 8 trillion to meet its energy needs Wunti said the current global energy crisis was due to energy imbalance with supply falling short of demand which had driven the price of energy resources upward Also Mr Austin Avuru Chairman AA Holdings Ltd said Africa must design home grown solutions to the divestment of assets by International Oil Companies across the continent Avuru said the move was largely responsible for Nigeria being unable to meet its OPEC quota adding that there was need to grow indigenous companies to fill the void created by the divestment of the IOCs He said the way forward was for the companies to get access to funding from within the continent for oil and gas exploration Avuru also called for deployment of technologies production of more natural gas and encouragement of tree planting to achieve decarbonisation while maximising the continent s abundant oil and gas resources Earlier in his remarks Prof Olalekan Olafuyi Chairman SPE Nigeria Council decried the lack of access to energy by many Africans Olafuyi said building a sustainable energy sector was fundamental for the African continent to power sustainable industrialisation and trade He said this underpins the African Continental Free Trade Area AfCFTA plan and thus highlights further the need for regional integration to solve Africa s energy and climate challenges Ramping up sustainable energy generation capacity by 2030 according to the African Development Bank s AfDB New Deal on Energy for Africa requires a minimum of 44 billion of annual financing Maintaining and extending the pace of progress will thus require strong political commitment and sound governance long term energy planning adequate political and fiscal incentives as well as public and private financing he said NewsSourceCredit NAN
    FG reiterates commitment to energy self-sufficiency by 2026
    General news2 months ago

    FG reiterates commitment to energy self-sufficiency by 2026

    The Federal Government on Tuesday reiterated its commitment to achieving self-sufficiency and net exporter of energy resources by 2026.Mr Bala Wunti, Group General Manager, National Petroleum Investment Services (NAPIMS), made this known while speaking at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Tuesday in Lagos.

    The News Agency of Nigeria reports that he spoke during a panel session on “Sustainable Energy Transition Strategy: The Role of Legislative Frameworks and Investment Programmes.

    ”Wunti said though the government had pledged to achieve net zero carbon emission by 2060, its priority remains reducing energy poverty in the country with its abundant hydrocarbon resources.

    To this end, he said the government’s target was to attain zero dependence on imported energy, both primary and secondary, as well as becoming a net exporter of secondary energy resources by 2026.Wunti said the plan was to provide  access to energy to 100 per cent of the population through the gas to power initiative which would spur industrialisation and economic growth.

    He, however maintained that this could only be achieved through effective legislative frameworks and investment programmes needed to maximise the opportunities in the oil and gas sector.

    Wunti said there was need to create a platform where market investment and financing come together with regard to delivery of energy in a more sustainable manner.

    He noted that unfortunately, the industry had witnessed decline in investments in recent years which had plunged the world into the global energy crisis.  

    According to him, available statistics from the Organisation of the Petroleum Exporting Countries (OPEC) shows that the world requires $11.8 trillion to meet its energy needs.

    Wunti said the current global energy crisis was due to energy imbalance with supply falling short of demand which had driven the price of energy resources upward.

    Also, Mr Austin Avuru, Chairman, AA Holdings Ltd., said Africa must design home grown solutions to the divestment of assets by International Oil Companies across the continent.

    Avuru said the move was largely responsible for Nigeria being unable to meet its OPEC quota, adding that there was need to grow indigenous companies to fill the void created by the divestment of the IOCs.He said the way forward was for the companies to get access to funding from within the continent for oil and gas exploration.

    Avuru also called for deployment of technologies, production of more natural gas and encouragement of tree planting to achieve decarbonisation  while maximising the continent’s abundant oil and gas resources.

    Earlier in his remarks, Prof. Olalekan Olafuyi, Chairman, SPE Nigeria Council, decried the lack of access to energy by many Africans.

    Olafuyi said building a sustainable energy sector was fundamental for the African continent to power sustainable industrialisation and trade.

    He said this underpins the African Continental Free Trade Area (AfCFTA) plan and thus highlights further the need for regional integration to solve Africa’s energy and climate challenges. 

    “Ramping up sustainable energy generation capacity by 2030 according to the African Development Bank’s (AfDB) New Deal on Energy for Africa, requires a minimum of $44 billion of annual financing.  

    “Maintaining and extending the pace of progress will thus require strong political commitment and sound governance, long-term energy planning, adequate political and fiscal incentives as well as public and private financing,” he said.  


    NewsSourceCredit: NAN

  •  The Nigerian Upstream Petroleum Regulatory Commission NUPRC says it has placed focus on four cardinal areas for sustainable gas development and utilisation in the country The commission said that the four cardinal areas were gas reserves growth optimised gas production domestic gas utilisation and gas flare elimination Mr Gbenga Komolafe Commission s Chief Executive NUPRC made this known at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Monday in Lagos The News Agency of Nigeria that the conference had as its theme Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa Komolafe represented by Mr Abel Nsa Head National Oil and Gas Excellence Centre NOGEC urged other African countries to adopt suitable anchor points and roadmaps similar to what had been outlined by the commission According to him this will enable them to achieve the right energy mix while decarbonising their oil and gas development He noted that Nigeria had huge abundant gas resources which had been adopted by the country as its energy transition fuel Komolafe said the passage of the Petroleum Industry Act PIA 2021 was aimed at eliminating bottlenecks in the oil and gas sector to attract more investments He said We are positioning gas as our transition fuel while adopting phased down approach in our energy transition quest geared toward paying greater attention to the development of untapped gas resources This energy source with low carbon footprint would serve as the transition fuel in meeting our energy security as a nation Fortunately several African countries including Nigeria Algeria Mozambique Egypt and Libya among others are blessed with huge gas reserves With a total of over 620 trillion cubic feet of natural gas reserves and 125 3 billion barrels of crude oil the future of upstream oil and gas in Africa is promising Komolafe however noted that it required the right legislative framework and a change in policy direction for maximum economic recovery and energy sustenance He added that the PIA had generous fiscal provisions aimed toward attracting investment not just for oil development but for harnessing of the rich gas potential of the nation which was among the highest in the world Also Prof Olalekan Olafuyi the Chairman SPE Nigeria Council said the world was facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times Olafuyi said It is expected that the adaptive strategies for energy transition should be adopted in Africa The status quo in the African energy supply is very obvious Africa and Nigeria in particular are still struggling with endemic energy poverty as compared to the developed regions of the world He said this was further worsened by the divestment by major international operators and funding challenges for oil and gas businesses This leaves the indigenous stakeholder in a situation of choosing to continue with the oil and gas business or channeling the attention to renewable energy sources This question is in the mindset of stakeholders in the energy business and policy space are the main reason we are here at this conference Olafuyi said NewsSourceCredit NAN
    NUPRC outlines cardinal areas for sustainable gas utilisation, development
     The Nigerian Upstream Petroleum Regulatory Commission NUPRC says it has placed focus on four cardinal areas for sustainable gas development and utilisation in the country The commission said that the four cardinal areas were gas reserves growth optimised gas production domestic gas utilisation and gas flare elimination Mr Gbenga Komolafe Commission s Chief Executive NUPRC made this known at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Monday in Lagos The News Agency of Nigeria that the conference had as its theme Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa Komolafe represented by Mr Abel Nsa Head National Oil and Gas Excellence Centre NOGEC urged other African countries to adopt suitable anchor points and roadmaps similar to what had been outlined by the commission According to him this will enable them to achieve the right energy mix while decarbonising their oil and gas development He noted that Nigeria had huge abundant gas resources which had been adopted by the country as its energy transition fuel Komolafe said the passage of the Petroleum Industry Act PIA 2021 was aimed at eliminating bottlenecks in the oil and gas sector to attract more investments He said We are positioning gas as our transition fuel while adopting phased down approach in our energy transition quest geared toward paying greater attention to the development of untapped gas resources This energy source with low carbon footprint would serve as the transition fuel in meeting our energy security as a nation Fortunately several African countries including Nigeria Algeria Mozambique Egypt and Libya among others are blessed with huge gas reserves With a total of over 620 trillion cubic feet of natural gas reserves and 125 3 billion barrels of crude oil the future of upstream oil and gas in Africa is promising Komolafe however noted that it required the right legislative framework and a change in policy direction for maximum economic recovery and energy sustenance He added that the PIA had generous fiscal provisions aimed toward attracting investment not just for oil development but for harnessing of the rich gas potential of the nation which was among the highest in the world Also Prof Olalekan Olafuyi the Chairman SPE Nigeria Council said the world was facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times Olafuyi said It is expected that the adaptive strategies for energy transition should be adopted in Africa The status quo in the African energy supply is very obvious Africa and Nigeria in particular are still struggling with endemic energy poverty as compared to the developed regions of the world He said this was further worsened by the divestment by major international operators and funding challenges for oil and gas businesses This leaves the indigenous stakeholder in a situation of choosing to continue with the oil and gas business or channeling the attention to renewable energy sources This question is in the mindset of stakeholders in the energy business and policy space are the main reason we are here at this conference Olafuyi said NewsSourceCredit NAN
    NUPRC outlines cardinal areas for sustainable gas utilisation, development
    General news2 months ago

    NUPRC outlines cardinal areas for sustainable gas utilisation, development

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has placed focus on four cardinal areas for sustainable gas development and utilisation in the country.

    The commission said that the four cardinal areas were gas reserves growth, optimised gas production, domestic gas utilisation and gas flare elimination.

    Mr Gbenga Komolafe, Commission’s Chief Executive, NUPRC, made this known at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Monday in Lagos.

    The News Agency of Nigeria that the conference had as its theme: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa.

    ” Komolafe, represented by Mr Abel Nsa, Head, National Oil and Gas Excellence Centre (NOGEC), urged other African countries to adopt suitable anchor points and roadmaps similar to what had been outlined by the commission.

    According to him, this will enable them to achieve the right energy mix while decarbonising their oil and gas development.

    He noted that Nigeria had huge abundant gas resources which had been adopted by the country as its energy transition fuel.

    Komolafe said the passage of the Petroleum Industry Act (PIA) 2021 was aimed at eliminating bottlenecks in the oil and gas sector to attract more investments.

    He said: “We are positioning gas as our transition fuel while adopting phased down approach in our energy transition quest geared toward paying greater attention to the development of untapped gas resources.

    “This energy source with low carbon footprint would serve as the transition fuel in meeting our energy security as a nation.

    “Fortunately, several African countries including Nigeria, Algeria, Mozambique, Egypt and Libya, among others are blessed with huge gas reserves.

    “With a total of over 620 trillion cubic feet of natural gas reserves and 125.3 billion barrels of crude oil, the future of upstream oil and gas in Africa is promising.

    ” Komolafe, however, noted that it required the right legislative framework and a change in policy direction for maximum economic recovery and energy sustenance.

    He added that the PIA had generous fiscal provisions aimed toward attracting investment not just for oil development but for harnessing of the rich gas potential of the nation which was among the highest in the world.

    Also, Prof. Olalekan Olafuyi, the Chairman, SPE Nigeria Council, said the world was facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times.

    Olafuyi said: “It is expected that the adaptive strategies for energy transition should be adopted in Africa.

    “The status quo in the African energy supply is very obvious.

    Africa and Nigeria in particular, are still struggling with endemic energy poverty as compared to the developed regions of the world.

    ” He said this was further worsened by the divestment by major international operators and funding challenges for oil and gas businesses.

    “This leaves the indigenous stakeholder in a situation of choosing to continue with the oil and gas business or channeling the attention to renewable energy sources.

    “This question is in the mindset of stakeholders in the energy business and policy space are the main reason we are here at this conference,” Olafuyi said.


    NewsSourceCredit: NAN

  •  Chief Timipre Sylva Minister of State for Petroleum Resources has called for the deployment of available technologies to make fossil fuel cleaner in the face of global energy transition Sylva made the call while speaking at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Monday in Lagos The News Agency of Nigeria reports that the conference had as its theme Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa He said the theme of the conference was very apt coming at a time when the world was witnessing a turnaround in the global energy landscape and clamouring for transition to greener energy sources to reduce carbon emission The minister however maintained that energy transition was better viewed as providing clean energy and not as abandoning some energy sources According to him the ongoing global energy is a huge challenge to the reliability and sustainability of renewable energy supplies as alternatives to fossil fuels Anticipated economic growth and rising global population especially in Asia and Africa will significantly push energy demand upward to a level that renewable energy sources only cannot meet by 2050 All these imply that the global energy mix will remain with us amidst greater dominance by hydrocarbon energy sources at least in the foreseeable future It also indicates that energy transition will remain a gradual process as against a rapid and radical shift as some have presented it It is therefore necessary that more effort should be put on the use of available technologies like the Carbon Capture Utilisation and Storage CCUS to make fossil fuels cleaner This will encourage a win win situation in terms of CO2 emission reduction and meeting global energy demand he said According to him many countries have already come to the realisation that the adoption and deployment of the CCUS technologies in large scale will play a critical role in supporting energy transitions globally He said that investment into the CCUS technologies was a very appropriate step at this stage of addressing climate change concerns The minister who noted that Africa was bedeviled with energy poverty advised African countries to adopt adaptive strategies taking into account the different socio economic political and developmental peculiarities of individual nations He said Africa s energy poverty would have to be addressed by responsibly developing and utilising Africa s abundant natural resource fossil fuels from where the renewable energy would be funded amidst a gradual energy transition Nigeria as the oil and gas industry leader in Africa is committed to pursuing the energy transition to promote economic growth Sylva said the country was gradually investing in renewable energies primarily solar to reduce carbon emissions whilst continuing to exploit hydrocarbon resources especially natural gas recognised as the energy transition fuel for Nigeria On his part Mr Kamel Ben Naceur 2022 SPE International President blamed the current global energy crisis on the sharp decline in investment in the upstream petroleum sector in pursuit of energy transition Ben Naceur said with the return to normalcy after the COVID 19 pandemic and the ongoing tension in Eastern Europe had driven the price of petroleum products very high leading to inflation in many countries He said projections had shown that oil and gas would continue to be a significant part of the energy mix in the foreseeable future hence there was need to increase investment in the industry NewsSourceCredit NAN
    Sylva seeks deployment of technologies to make fossil fuel cleaner
     Chief Timipre Sylva Minister of State for Petroleum Resources has called for the deployment of available technologies to make fossil fuel cleaner in the face of global energy transition Sylva made the call while speaking at the 2022 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Monday in Lagos The News Agency of Nigeria reports that the conference had as its theme Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa He said the theme of the conference was very apt coming at a time when the world was witnessing a turnaround in the global energy landscape and clamouring for transition to greener energy sources to reduce carbon emission The minister however maintained that energy transition was better viewed as providing clean energy and not as abandoning some energy sources According to him the ongoing global energy is a huge challenge to the reliability and sustainability of renewable energy supplies as alternatives to fossil fuels Anticipated economic growth and rising global population especially in Asia and Africa will significantly push energy demand upward to a level that renewable energy sources only cannot meet by 2050 All these imply that the global energy mix will remain with us amidst greater dominance by hydrocarbon energy sources at least in the foreseeable future It also indicates that energy transition will remain a gradual process as against a rapid and radical shift as some have presented it It is therefore necessary that more effort should be put on the use of available technologies like the Carbon Capture Utilisation and Storage CCUS to make fossil fuels cleaner This will encourage a win win situation in terms of CO2 emission reduction and meeting global energy demand he said According to him many countries have already come to the realisation that the adoption and deployment of the CCUS technologies in large scale will play a critical role in supporting energy transitions globally He said that investment into the CCUS technologies was a very appropriate step at this stage of addressing climate change concerns The minister who noted that Africa was bedeviled with energy poverty advised African countries to adopt adaptive strategies taking into account the different socio economic political and developmental peculiarities of individual nations He said Africa s energy poverty would have to be addressed by responsibly developing and utilising Africa s abundant natural resource fossil fuels from where the renewable energy would be funded amidst a gradual energy transition Nigeria as the oil and gas industry leader in Africa is committed to pursuing the energy transition to promote economic growth Sylva said the country was gradually investing in renewable energies primarily solar to reduce carbon emissions whilst continuing to exploit hydrocarbon resources especially natural gas recognised as the energy transition fuel for Nigeria On his part Mr Kamel Ben Naceur 2022 SPE International President blamed the current global energy crisis on the sharp decline in investment in the upstream petroleum sector in pursuit of energy transition Ben Naceur said with the return to normalcy after the COVID 19 pandemic and the ongoing tension in Eastern Europe had driven the price of petroleum products very high leading to inflation in many countries He said projections had shown that oil and gas would continue to be a significant part of the energy mix in the foreseeable future hence there was need to increase investment in the industry NewsSourceCredit NAN
    Sylva seeks deployment of technologies to make fossil fuel cleaner
    General news2 months ago

    Sylva seeks deployment of technologies to make fossil fuel cleaner

    Chief Timipre Sylva, Minister of State for Petroleum Resources, has called for the deployment of available technologies to make fossil fuel cleaner in the face of global energy transition.

    Sylva made the call while speaking at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Monday in Lagos.

    The News Agency of Nigeria reports that the conference had as its theme: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa.

    ” He said the theme of the conference was very apt, coming at a time when the world was witnessing a turnaround in the global energy landscape and clamouring for transition to greener energy sources to reduce carbon emission.

    The minister, however, maintained that energy transition was better viewed as providing clean energy, and not as abandoning some energy sources.

    According to him, the ongoing global energy is a huge challenge to the reliability and sustainability of renewable energy supplies as alternatives to fossil fuels.

    “Anticipated economic growth and rising global population, especially in Asia and Africa, will significantly push energy demand upward to a level that renewable energy sources only cannot meet by 2050. “All these imply that the global energy mix will remain with us, amidst greater dominance by hydrocarbon energy sources, at least in the foreseeable future.

    “It also indicates that energy transition will remain a gradual process, as against a rapid and radical shift as some have presented it.

    “It is, therefore, necessary that more effort should be put on the use of available technologies like the Carbon Capture, Utilisation and Storage (CCUS), to make fossil fuels cleaner.

    “This will encourage a win-win situation in terms of CO2 emission reduction and meeting global energy demand,” he said.

    According to him, many countries have already come to the realisation that the adoption and deployment of the CCUS technologies in large scale will play a critical role in supporting energy transitions globally.

    He said that investment into the CCUS technologies was a very appropriate step at this stage of addressing climate change concerns.

    The minister who noted that Africa was bedeviled with energy poverty, advised African countries to adopt adaptive strategies taking into account the different socio-economic, political and developmental peculiarities of individual nations.

    He said: “Africa’s energy poverty would have to be addressed by responsibly developing and utilising Africa’s abundant natural resource – fossil fuels, from where the renewable energy would be funded amidst a gradual energy transition.

    “Nigeria, as the oil and gas industry leader in Africa, is committed to pursuing the energy transition to promote economic growth.

    ” Sylva said the country was gradually investing in renewable energies, primarily solar, to reduce carbon emissions, whilst continuing to exploit hydrocarbon resources, especially natural gas – recognised as the energy transition fuel for Nigeria.

    On his part, Mr Kamel Ben-Naceur, 2022 SPE International President, blamed the current global energy crisis on the sharp decline in investment in the upstream petroleum sector in pursuit of energy transition.

    Ben-Naceur said with the return to normalcy after the COVID-19 pandemic and the ongoing tension in Eastern Europe had driven the price of petroleum products very high leading to inflation in many countries.

    He said projections had shown that oil and gas would continue to be a significant part of the energy mix in the foreseeable future hence there was need to increase investment in the industry.


    NewsSourceCredit: NAN

  •  The Society of Petroleum Engineers SPE Nigeria Council has called for enforcement of stiff penalty for gas flaring in Nigeria Prof Olalekan Olafuyi Chairman SPE Nigeria Council made this known at a news briefing ahead of the 2022 Nigeria Annual International Conference and Exhibition NAICE on Wednesday in Lagos The News Agency of Nigeria reports that the NAICE is an annual event of the SPE and this year s edition is scheduled to hold from Aug 1 to Aug 3 at Eko Hotel Lagos Olafuyi said the theme of the conference Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa is very apt and in line with current realities He said The world is facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times It is expected that adaptive strategies for energy transition should be adopted in Africa This is the core of the conference According to him there is need to maximise Nigeria s abundant natural gas resources to address the nation s energy deficit To this end he said there was need to enforce the penalty on gas flaring by oil companies to deter the practice which was affecting the country negatively Olafuyi said President Muhammadu Buhari had assured the global community of Nigeria s commitment to achieving a net zero carbon emission by 2060 and was working toward that He also called for investments in gas infrastructure across the country and establishing policies that would support gas development and utilisation On the spate of oil theft in the country Olafuyi said SPE was ready to assist the government in proffering solutions that could curb the menace He added that the activities of vandals and oil thieves were shortchanging Nigeria s revenue and had become a huge challenge to the industry Olafuyi said the 2022 NAICE would feature contributions from Chief Timipre Sylva Minister of State for Petroleum Resources and Malam Mele Kyari Group Chief Executive Officer Nigerian National Petroleum Company Ltd He gave other speakers as Mr Farouk Ahmed Chief Executive Nigerian Midstream and Downstream Petroleum Regulatory Authority and Mr Gbenga Komolafe Commission s Chief Executive Nigerian Upstream Petroleum Regulatory Commission NewsSourceCredit NAN
    Petroleum engineers advocate stiff penalty for gas flaring
     The Society of Petroleum Engineers SPE Nigeria Council has called for enforcement of stiff penalty for gas flaring in Nigeria Prof Olalekan Olafuyi Chairman SPE Nigeria Council made this known at a news briefing ahead of the 2022 Nigeria Annual International Conference and Exhibition NAICE on Wednesday in Lagos The News Agency of Nigeria reports that the NAICE is an annual event of the SPE and this year s edition is scheduled to hold from Aug 1 to Aug 3 at Eko Hotel Lagos Olafuyi said the theme of the conference Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa is very apt and in line with current realities He said The world is facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times It is expected that adaptive strategies for energy transition should be adopted in Africa This is the core of the conference According to him there is need to maximise Nigeria s abundant natural gas resources to address the nation s energy deficit To this end he said there was need to enforce the penalty on gas flaring by oil companies to deter the practice which was affecting the country negatively Olafuyi said President Muhammadu Buhari had assured the global community of Nigeria s commitment to achieving a net zero carbon emission by 2060 and was working toward that He also called for investments in gas infrastructure across the country and establishing policies that would support gas development and utilisation On the spate of oil theft in the country Olafuyi said SPE was ready to assist the government in proffering solutions that could curb the menace He added that the activities of vandals and oil thieves were shortchanging Nigeria s revenue and had become a huge challenge to the industry Olafuyi said the 2022 NAICE would feature contributions from Chief Timipre Sylva Minister of State for Petroleum Resources and Malam Mele Kyari Group Chief Executive Officer Nigerian National Petroleum Company Ltd He gave other speakers as Mr Farouk Ahmed Chief Executive Nigerian Midstream and Downstream Petroleum Regulatory Authority and Mr Gbenga Komolafe Commission s Chief Executive Nigerian Upstream Petroleum Regulatory Commission NewsSourceCredit NAN
    Petroleum engineers advocate stiff penalty for gas flaring
    General news2 months ago

    Petroleum engineers advocate stiff penalty for gas flaring

    The Society of Petroleum Engineers (SPE), Nigeria Council, has called for enforcement of  stiff penalty for gas flaring in Nigeria.

    Prof. Olalekan Olafuyi, Chairman, SPE, Nigeria Council, made this known at a news briefing ahead of the 2022 Nigeria Annual International Conference and Exhibition (NAICE) on Wednesday in Lagos.

    The News Agency of Nigeria reports that the NAICE is an annual event of the SPE and this year’s edition is scheduled to hold from Aug. 1, to Aug. 3, at Eko Hotel, Lagos.

    Olafuyi said the theme of the conference: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa”, is very apt and in line with current realities.

    He said: ‘The world is facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times.

    ” It is expected that adaptive strategies for energy transition should be adopted in Africa.

    This is the core of the conference.”According to him, there is need to maximise Nigeria’s abundant natural gas resources to address the nation’s energy deficit.

    To this end, he said, there was need to enforce the penalty on gas flaring by oil companies to deter the practice which was affecting the country negatively.

      Olafuyi said President Muhammadu Buhari had assured the global community of Nigeria’s commitment to achieving a net zero carbon emission by 2060 and was working toward that.

      He also called for investments in gas infrastructure across the country and establishing  policies that would support gas development and utilisation.

      On the spate of oil theft in the country, Olafuyi said SPE was ready to assist the government in proffering solutions that could curb the menace.

      He added that the activities of vandals and oil thieves were shortchanging Nigeria’s revenue and had become a huge challenge to the industry.

      Olafuyi said the 2022 NAICE would feature contributions from Chief Timipre Sylva, Minister of State for Petroleum Resources, and Malam Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company Ltd.   He gave other speakers as Mr Farouk Ahmed, Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Mr Gbenga Komolafe, Commission’s Chief Executive, Nigerian Upstream Petroleum Regulatory Commission.

     

    NewsSourceCredit: NAN

  •   The Petroleum Technology Development Fund PTDF says its innovative research on developing zeolite refining catalyst from kaolin sources is a deliberate and strategic approach to providing solutions to specific industry challenges Executive Secretary PTDF Dr Bello Gusau said this on Thursday in Abuja at the Society of Petroleum Engineers SPE Annual Oloibiri Lecture Series and Energy Forum 2022 OLEF conference The Nigerian News Agency reports that the 2022 conference is themed Global Energy Transition Implications for Future Investments in Nigeria s Oil and Gas Industry Zeolite catalyst is an important chemical for petroleum refining and for a variety of applications in the petrochemical industry Gusau represented by Adebulehin General Manager Strategic Planning PTDF urged relevant stakeholders to partner with the Fund in developing a pilot plant for Zeolite production According to him the Fund under section one of the PTDF Act has the power to develop promote and implement petroleum technology and manpower development through research and training of Nigerians in relevant oil and gas fields The Executive Secretary stating that the PTDF had implemented these mandates for the past 20 years extended an open invitation to anyone who wanted to partner with the PTDF in this regard Speaking on the energy transition he underlined the need for training technology development and capacity building as important enablers to achieve the goals and aspirations of the energy transition in Nigeria He said that the Oil and Energy Industry urgently needed technology and skills to increase its viability and profitability In the wake of the energy transition especially for upskilling and technology development capacity building will be at the forefront when it comes to discussions on the energy transition in the Nigerian oil and gas industry he said He said in a recent publication that the Energy Information Administration EIA projected a nearly 50 percent increase in the use of renewable energy in the world While oil and other liquid fuels are projected to likely remain the world s largest energy source in 2050 renewable energy sources including wind and solar will grow at about the same rate he said Based on this projection he said that future investments in Nigeria s oil and gas industry may decline due to the global push for clean energy According to him currently the Nigerian Petroleum Industry contributes about 80 percent of the Federal Government s revenue and 90 percent of Nigeria s export earnings However he said it had become very important that we start thinking about alternative sources of energy outside of the fossil based energy production and consumption system including oil natural gas and coal He said more attention should be paid to renewable energy sources like wind and solar as well as lithium ion batteries In addition the industry is struggling to recover from the negative effects of the COVID 19 pandemic and in the midst of this slow recovery faces rising oil prices as a result of the ongoing war between Russia and Ukraine Typically the sharp rise in crude oil prices from less than 60 a barrel last month to 120 a barrel today is what should benefit the country But the poor state of Nigeria s refineries makes it very difficult to maximize profits as is the case in other oil producing nations around the world he said He expressed the guarantee of the absolute commitment of PTDF to continue supporting the activities of SPE in the future
    PTDF’s breakthrough research on zeolite for tackling industry challenges – ES
      The Petroleum Technology Development Fund PTDF says its innovative research on developing zeolite refining catalyst from kaolin sources is a deliberate and strategic approach to providing solutions to specific industry challenges Executive Secretary PTDF Dr Bello Gusau said this on Thursday in Abuja at the Society of Petroleum Engineers SPE Annual Oloibiri Lecture Series and Energy Forum 2022 OLEF conference The Nigerian News Agency reports that the 2022 conference is themed Global Energy Transition Implications for Future Investments in Nigeria s Oil and Gas Industry Zeolite catalyst is an important chemical for petroleum refining and for a variety of applications in the petrochemical industry Gusau represented by Adebulehin General Manager Strategic Planning PTDF urged relevant stakeholders to partner with the Fund in developing a pilot plant for Zeolite production According to him the Fund under section one of the PTDF Act has the power to develop promote and implement petroleum technology and manpower development through research and training of Nigerians in relevant oil and gas fields The Executive Secretary stating that the PTDF had implemented these mandates for the past 20 years extended an open invitation to anyone who wanted to partner with the PTDF in this regard Speaking on the energy transition he underlined the need for training technology development and capacity building as important enablers to achieve the goals and aspirations of the energy transition in Nigeria He said that the Oil and Energy Industry urgently needed technology and skills to increase its viability and profitability In the wake of the energy transition especially for upskilling and technology development capacity building will be at the forefront when it comes to discussions on the energy transition in the Nigerian oil and gas industry he said He said in a recent publication that the Energy Information Administration EIA projected a nearly 50 percent increase in the use of renewable energy in the world While oil and other liquid fuels are projected to likely remain the world s largest energy source in 2050 renewable energy sources including wind and solar will grow at about the same rate he said Based on this projection he said that future investments in Nigeria s oil and gas industry may decline due to the global push for clean energy According to him currently the Nigerian Petroleum Industry contributes about 80 percent of the Federal Government s revenue and 90 percent of Nigeria s export earnings However he said it had become very important that we start thinking about alternative sources of energy outside of the fossil based energy production and consumption system including oil natural gas and coal He said more attention should be paid to renewable energy sources like wind and solar as well as lithium ion batteries In addition the industry is struggling to recover from the negative effects of the COVID 19 pandemic and in the midst of this slow recovery faces rising oil prices as a result of the ongoing war between Russia and Ukraine Typically the sharp rise in crude oil prices from less than 60 a barrel last month to 120 a barrel today is what should benefit the country But the poor state of Nigeria s refineries makes it very difficult to maximize profits as is the case in other oil producing nations around the world he said He expressed the guarantee of the absolute commitment of PTDF to continue supporting the activities of SPE in the future
    PTDF’s breakthrough research on zeolite for tackling industry challenges – ES
    General news6 months ago

    PTDF’s breakthrough research on zeolite for tackling industry challenges – ES

    The Petroleum Technology Development Fund (PTDF) says its innovative research on developing zeolite (refining catalyst) from kaolin sources is a deliberate and strategic approach to providing solutions to specific industry challenges.

    Executive Secretary, PTDF, Dr. Bello Gusau, said this on Thursday, in Abuja, at the Society of Petroleum Engineers (SPE) Annual Oloibiri Lecture Series and Energy Forum 2022 (OLEF) conference.

    The Nigerian News Agency reports that the 2022 conference is themed "Global Energy Transition: Implications for Future Investments in Nigeria's Oil and Gas Industry."

    Zeolite catalyst is an important chemical for petroleum refining and for a variety of applications in the petrochemical industry.

    Gusau, represented by Adebulehin, General Manager, Strategic Planning, PTDF, urged relevant stakeholders to partner with the Fund in developing a pilot plant for Zeolite production.

    According to him, the Fund, under section one of the PTDF Act, has the power to develop, promote and implement petroleum technology and manpower development through research and training of Nigerians in relevant oil and gas fields. .

    The Executive Secretary, stating that the PTDF had implemented these mandates for the past 20 years, extended an open invitation to anyone who wanted to partner with the PTDF in this regard.

    Speaking on the energy transition, he underlined the need for training, technology development and capacity building as important enablers to achieve the goals and aspirations of the energy transition in Nigeria.

    He said that the Oil and Energy Industry urgently needed technology and skills to increase its viability and profitability.

    “In the wake of the energy transition, especially for upskilling and technology development, capacity building will be at the forefront when it comes to discussions on the energy transition in the Nigerian oil and gas industry,” he said. .

    He said in a recent publication that the Energy Information Administration (EIA) projected a nearly 50 percent increase in the use of renewable energy in the world.

    “While oil and other liquid fuels are projected to likely remain the world's largest energy source in 2050, renewable energy sources, including wind and solar, will grow at about the same rate,” he said.

    Based on this projection, he said that future investments in Nigeria's oil and gas industry may decline due to the global push for clean energy.

    According to him, currently, the Nigerian Petroleum Industry contributes about 80 percent of the Federal Government's revenue and 90 percent of Nigeria's export earnings.

    However, he said it had become very important that we start thinking about alternative sources of energy outside of the fossil-based energy production and consumption system (including oil, natural gas and coal).

    He said more attention should be paid to renewable energy sources like wind and solar, as well as lithium-ion batteries.

    “In addition, the industry is struggling to recover from the negative effects of the COVID-19 pandemic and in the midst of this slow recovery; faces rising oil prices as a result of the ongoing war between Russia and Ukraine.

    “Typically, the sharp rise in crude oil prices from less than $60 a barrel last month to $120 a barrel today is what should benefit the country.

    "But the poor state of Nigeria's refineries makes it very difficult to maximize profits as is the case in other oil-producing nations around the world," he said.

    He expressed the guarantee of the absolute commitment of PTDF to continue supporting the activities of SPE in the future.

  •   By Edith Ike Eboh amp Emmanuel AfonneThe Nigerian National Petroleum Corporation NNPC started its week with the declaration of its readiness to introduce regulations and criteria to guide its partners about divestments in the nation s oil and gas industry NNPC Group Managing Director Malam Mele Kyari disclosed this at the opening ceremony of the 2021 edition of the Nigeria Annual International Conference and Exhibition NAICE organised by the Society of Petroleum Engineers SPE in Lagos He spoke on the theme The Future of Energy A Trilogy of Climate Change Public Health amp Global Oil Market He affirmed that the Corporation had worked out rules to guide partners on such issues as asset abandonment relinquishment costs severance of operator staff third party contract liabilities technical operational and financial capabilities as well as competency of the buyer and post purchase development plan He said such a guideline had become necessary in order to safeguard the nation s strategic interest in the face of the global sentiment against funding of fossil fuel projects Kyari noted that in subsequent deals NNPC would introduce new rules of engagement in order to make a clear distinction between divestment of equity shares and operatorship in the various joint operating agreements in order to leverage its rights of pre emption He added that there would also be clear criteria for evaluating the operational competency and track records of new partners He also stated that the new policy would be geared towards converting asset abandonment and relinquishment costs into opportunities to further grow the Nigerian Petroleum Development Company NPDC which he said has become the number one upstream company in Nigeria as at today Everything we are doing must be done in line with national interest NNPC as a national oil company that represents all of us must be a global player This is our ambition and we are getting there I can tell you that within the next one or two months we are going to publish our Audited Financial Statement for 2020 I can also confirm to you that for the first time in our history we will declare profits Kyari said He said the Corporation would continue to play a pivotal role in the global energy transition as part of its commitment to promote low carbon investments by whetting the appetite of investors in cleaner energy sources like wind solar hydrogen natural gas and bio fuels We are deepening natural gas utilization under the National Gas Expansion Programme NGEP to earn more carbon credit and create a net zero carbon environment in line with our drive of becoming an energy company of global excellence Kyari stated He noted that from the anticipated economic growth rising global population and energy requirement renewable energy sources alone would not be able to meet the energy demand by 2050 stressing that gas would still be a vital part of the global energy mix He said the passage of the Petroleum Industry Bill PIB would enable the Corporation to focus more on improving oil and gas infrastructure through collaboration with major stakeholders adding that NNPC was working with operators and service contractors to challenge cost of operations and increase profitability in the oil and gas sector Also in the week under review the Senegalese government seeks Nigeria s support to develop their nation s oil and gas sector The Minister of State for Petroleum Resources Chief Timpre Sylva receiving the Senegalese Energy Minister Aissitou Gladima and her delegation in Abuja said that Africa needed to come together and work to support development of the region and reduce over dependence on foreigners for growth I want to use this opportunity to welcome you As I said it is important for us as a region to come together because as they say you have to say yes before someone from outside says yes to you We as Africans must come together to work together in order to chart a way forward We cannot continue to depend on Europe and the outside world he said He said that oil production activities started in Nigeria in 1937 but commercial discovery was made in 1950s adding that first commercial discovery was made in 1956 and first cargo of crude left Nigeria in 1958 On local content he said that Nigeria had grown its local content from three per cent in the past 10 years to about 43 per cent and the growth target is 70 per cent by 2027 In her remarks Gladima thanked her Nigerian counterpart for the hospitality extended to her delegation adding that her country had longed to partner with Nigeria to gain from its wealth of experience in the oil and gas sector She said that Nigeria s over 50 years experience in oil production was an excellent example for Senegal as it is beginning to grow its own oil and gas industry She expressed her country s interest to join the African Petroleum Producers Organization APPO to help the development of the oil sector in Senegal Also the Corporation was able to weather the impact of COVID 19 with impressive performance in 2020 financial year Some of its subsidiaries posted impressive financial results at their various annual general meetings which held virtually recently The Integrated Data Services Limited IDSL an Upstream subsidiary of NNPC with interest in the acquisition processing and interpretation of seismic data as well as reservoir management services announced a revenue of N18 71billion in 2020 Giving a general review of the performances of the various Strategic Business Units the Chief Financial Officer of the NNPC Mr Umar Ajiya said the positive performance from the various subsidiaries show how prepared the companies are for the post Petroleum Industry Bill regime Speaking at the IDSL AGM the Chairman of company s Board of Directors Mr Adeyemi Adetunji said though the performance was below target the company made progress in its priority areas In 2020 we carried on with our five Key Priority Areas from the previous year They included growing our revenue increasing our market share across our service lines maintaining a minimum operating cost to revenue ratio of 90 per cent expanding IDSL s capabilities in Marine Data acquisition and reducing contracting cycle Our efforts yielded amazing results Acting Managing Director of the company Mr Olufemi Sijuade said the company would continue to add value to the society without compromising requisite generation of returns to its shareholders The results were also positive for the National Engineering and Technical Company Limited NETCO which recorded N3 37billion as profit before tax for the 2020 financial year The outstanding performance by NETCO according to the Chairman of the board Engr Adeyemi Adetunji was a result of ingenuity and commitment on the part of its Management In spite challenges NETCO posted a profit before tax of N3 37billion which represents an increase of 53 94 per cent from N2 2billion in 2019 In view of the company s performance I am pleased to inform the meeting that NETCO remains a viable company and will be declaring a dividend of 40kobo per share to the shareholders at this AGM he said He also revealed that in addition to the huge profit the company secured for the first time the Projects Management Consultancy Owner s Engineer Services Contract for the rehabilitation of NNPC s three refineries making it the main engineering consultant for the projects In his remarks the Managing Director of NETCO Mr Usman Baba said the improvement was as a result of some deliberate cost cutting measures undertaken by his management team to boost profitability He said the company would continue to leverage on the NNPC s current Transparency Accountability and Performance Excellence TAPE initiative to remain commercially viable The outstanding performance continued with the Nigerian Gas Marketing Company NGMC which recorded a profit after tax of 41 7billion in the year ended 2020 representing a massive 311 per cent increase over its 2019 figures Also Mr Yusuf Usman Chief Operating Officer Gas amp Power who also doubles as Alternate Chairman of the NGMC Board disclosed that the astronomical leap in profit was achieved in spite of the challenges of low gas off take due to the economic downturn caused by the COVID 19 pandemic He said the company s revenue profile for the year rose to N215 45 billion as against N212 93 billon recorded in 2019 Usman noted that since the last AGM NGMC has made some key changes in terms of operational cost reduction and process optimization leading to increased operational performance in the year under review In alignment with NNPC s strategic goal to accelerate domestic gas utilization across the country NGMC has expanded its gas distribution portfolio to a number of strategic partners across the country We are optimistic that this will add to NGMC bottom line going forward he said Providing further insight into the 2020 performance the Managing Director Engr Faruk Usman informed that the cost optimization measures led to a total gas sales volume of 103 billion standard cubic feet as against a planned target of 100 17BCF NGMC also achieved Goal Zero in its Health Safety and Environment HSE indices which harps on zero incidents in operation He announced that in consonance with the NNPC GMD s directive to reduce cost of gas to achieve the company s Credit Information Report CIR Target NGMC successfully negotiated downward the price of feed gas with some producers In the same vein we renegotiated lower mark ups in our service contracts thereby significantly reducing operating expenses he said Also the Petroleum Products Marketing Company Limited PPMC was not left out of the impressive outings as it posted a net profit after tax of N3 59billion in the 2020 financial year The NNPC GMD who also doubles as the Chairman of the Board of Directors of the Company said in spite of the challenges posed by the Covid 19 pandemic and the lockdown the company was able to end 2020 on a positive note Kyari who was represented by the Chief Operating Officer Ventures and Business Development Engr Adeyemi Adetunji said the company sold a total of 18 17billion litres of petroleum products at a total value of N2 02 trillion A total of 26 09billion litres of petroleum products was imported during the year under review with Premium Motor Spirit PMS accounting for 94 27 per cent of the import Automotive Gas Oil AGO 5 1 per cent Dual Purpose Kerosene DPK 0 24 per cent and Aviation Turbine Kerosene ATK 0 39 per cent the GMD revealed He noted that there was 15 per cent increase in petroleum products imported in the year 2020 when compared with 22 6billion litres for the full year 2019 stressing that the increase was occasioned by a sharp rise in demand for PMS after the Covid 19 lockdown eased off The Chairman described the company as the livewire of the nation s downstream sector stressing that it has been very strategic in getting NNPC to meet its statutory obligation of providing energy security for the nation in terms of petroleum products sufficiency Also speaking at the AGM the Managing Director of the PPMC Mr Musa Lawan said the company has been repositioned to become the preferred marketer of petroleum products through the automation of its processes commercial orientation and financial autonomy In the same vein the Gas and Power Investment Company Limited NGPIC another subsidiary of the corporation laid a solid foundation for growth and profitability in the years ahead The Chairman of the NGPIC Board of Directors Mr Umar Ajiya at the maiden Annual General Meeting listed some of the key steps taken to put the company on a firm financial footing to include completion of the 1st and 2nd Gas Turbines for the 450MW Okpai Phase 2 Independent Power Plant IPP in Kwale Delta State completion of Feasibility Study Front End Engineering Design FEED for the 1350MW Kano IPP and the actualization of full transfer of 15 per cent equity shares in the ongoing 1050MW Kwale Independent Power Project IPP to NGPIC Other achievements are the acquisition of 20 per cent equity in Brass Fertilizer and Petrochemical Project BFPCL completion of feasibility study and Front End Engineering Design FEED for 1350MW Abuja IPP and completion of migration of NGPIC accounts into SAP He said NGPIC would leverage on the expected positive impact of the ongoing Presidential Power Initiative PPI to improve business operations for profitability Despite the economic slowdown and challenges peculiar to Nigeria s Oil Gas and Power amp non power gas based businesses NGPIC has continued to improve its performance The growth may currently be little however with continued commitment from our Shareholders Management and colleagues we are quite optimistic of a bright future for NGPIC Please be assured that NGPIC is very much poised for profitability and performance excellence In his remarks the Managing Director of NGPIC Dr Salihu Jamari said with continued support of shareholders and the management team s determination to leave lasting legacy the company would grow into a viable profit centre in no distant future NNPC Subsidiaries Post Impressive Performances in 2020 Financial Year NNPC Subsidiaries Post Impressive Performances in 2020 Financial Year On the Monthly Financial and Operation Report MFOR of the Corporation it recorded N234 63billion on Petroleum products Sales in the month of March 2021 The sales were made by its subsidiary the Petroleum Products Marketing Company PPMC compared to 188 15 billion sales in February 2021 The report indicates that total revenues generated from the sales of white products for the period March 2020 to March 2021 stood at 2 129trillion where petrol contributed about 99 24 per cent of the total sales with a value of 2 113trllion To ensure continuous increased PMS supply and effective distribution across the country the NNPC has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across Nigeria The report informed that in March 2021 70 pipeline points were vandalized representing 29 63per cent increase from the 54 points recorded in February 2021 During the period Port Harcourt area accounted for 63 per cent and Mosimi Area accounted for 21per cent of the vandalized points while Gombe accounted for the remaining 16 per cent However NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace In the Gas sector a total of 222 74 billion Cubic Feet BCF of natural gas was produced in the month March 2021 translating to an average daily production of 7 183 33 million Standard Cubic Feet per Day mmscfd Production from Joint Ventures JVs Production Sharing Contracts PSCs and NPDC contributed about 63 23 per cent 19 78 per cent and 63 99 per cent respectively to the total national gas production What you need to know The NNPC will ensure that Nigeria s National Strategic Interest is safeguarded by developing a comprehensive policy for its partners The NNPC will make clear Distinction between divestment of shares and operatorship agreements under various joint operation agreements The NNPC will leverage its rights of pre emption to evaluate the operational competency and track records of new partners In order to ensure that the corporation sustains a prosperous business environment it is paying attention to abandonment and relinquishment costs severance of Operator staff Third party contract liabilities and competency of the buyer to mention but a few As a national oil company and a global player NNPC is set to play key role in global transition to low carbon energy in the near future with Natural gas reserve serving as greatest enablerto smooth transition to low carbon energy On global crude oil outlook U S Oil Drops for 3rd Day On Concerns COVID 19 Variant Spread The United States of America oil prices fell while Brent futures were largely unchanged on mounting concerns that the increasing spread of the Delta variant of the coronavirus in top consuming countries will cut fuel demand Brent crude oil futures added 1 cent to 72 42 dollar per barrel while the United States of America West Texas Intermediate WTI crude fell 7 cents or 0 1 to 70 49 dollars per barrel Both futures fell to their lowest since July 21 before regaining some ground by the close Meanwhile the Market Intelligence Department of NNPC s London Office reported that another spike in Covid 19 infections in major economies hammered oil markets during the week although prices later regained some lost ground in volatile trading In London the front month October contract for Brent retreated by 48 to 72 41 dollars per barrel on relatively light trade while in New York the September contract for West Texas Intermediate WTI shed 70 to end at 70 56 dollars bbl Oil prices have tanked by almost five per cent over fear of the Delta variant of the coronavirus in the last few dayswith traders however hoping for a boost for the best in the years ahead NAN Source NAN
    NNPC weekly review: NNPC introduces divestment policy for partners
      By Edith Ike Eboh amp Emmanuel AfonneThe Nigerian National Petroleum Corporation NNPC started its week with the declaration of its readiness to introduce regulations and criteria to guide its partners about divestments in the nation s oil and gas industry NNPC Group Managing Director Malam Mele Kyari disclosed this at the opening ceremony of the 2021 edition of the Nigeria Annual International Conference and Exhibition NAICE organised by the Society of Petroleum Engineers SPE in Lagos He spoke on the theme The Future of Energy A Trilogy of Climate Change Public Health amp Global Oil Market He affirmed that the Corporation had worked out rules to guide partners on such issues as asset abandonment relinquishment costs severance of operator staff third party contract liabilities technical operational and financial capabilities as well as competency of the buyer and post purchase development plan He said such a guideline had become necessary in order to safeguard the nation s strategic interest in the face of the global sentiment against funding of fossil fuel projects Kyari noted that in subsequent deals NNPC would introduce new rules of engagement in order to make a clear distinction between divestment of equity shares and operatorship in the various joint operating agreements in order to leverage its rights of pre emption He added that there would also be clear criteria for evaluating the operational competency and track records of new partners He also stated that the new policy would be geared towards converting asset abandonment and relinquishment costs into opportunities to further grow the Nigerian Petroleum Development Company NPDC which he said has become the number one upstream company in Nigeria as at today Everything we are doing must be done in line with national interest NNPC as a national oil company that represents all of us must be a global player This is our ambition and we are getting there I can tell you that within the next one or two months we are going to publish our Audited Financial Statement for 2020 I can also confirm to you that for the first time in our history we will declare profits Kyari said He said the Corporation would continue to play a pivotal role in the global energy transition as part of its commitment to promote low carbon investments by whetting the appetite of investors in cleaner energy sources like wind solar hydrogen natural gas and bio fuels We are deepening natural gas utilization under the National Gas Expansion Programme NGEP to earn more carbon credit and create a net zero carbon environment in line with our drive of becoming an energy company of global excellence Kyari stated He noted that from the anticipated economic growth rising global population and energy requirement renewable energy sources alone would not be able to meet the energy demand by 2050 stressing that gas would still be a vital part of the global energy mix He said the passage of the Petroleum Industry Bill PIB would enable the Corporation to focus more on improving oil and gas infrastructure through collaboration with major stakeholders adding that NNPC was working with operators and service contractors to challenge cost of operations and increase profitability in the oil and gas sector Also in the week under review the Senegalese government seeks Nigeria s support to develop their nation s oil and gas sector The Minister of State for Petroleum Resources Chief Timpre Sylva receiving the Senegalese Energy Minister Aissitou Gladima and her delegation in Abuja said that Africa needed to come together and work to support development of the region and reduce over dependence on foreigners for growth I want to use this opportunity to welcome you As I said it is important for us as a region to come together because as they say you have to say yes before someone from outside says yes to you We as Africans must come together to work together in order to chart a way forward We cannot continue to depend on Europe and the outside world he said He said that oil production activities started in Nigeria in 1937 but commercial discovery was made in 1950s adding that first commercial discovery was made in 1956 and first cargo of crude left Nigeria in 1958 On local content he said that Nigeria had grown its local content from three per cent in the past 10 years to about 43 per cent and the growth target is 70 per cent by 2027 In her remarks Gladima thanked her Nigerian counterpart for the hospitality extended to her delegation adding that her country had longed to partner with Nigeria to gain from its wealth of experience in the oil and gas sector She said that Nigeria s over 50 years experience in oil production was an excellent example for Senegal as it is beginning to grow its own oil and gas industry She expressed her country s interest to join the African Petroleum Producers Organization APPO to help the development of the oil sector in Senegal Also the Corporation was able to weather the impact of COVID 19 with impressive performance in 2020 financial year Some of its subsidiaries posted impressive financial results at their various annual general meetings which held virtually recently The Integrated Data Services Limited IDSL an Upstream subsidiary of NNPC with interest in the acquisition processing and interpretation of seismic data as well as reservoir management services announced a revenue of N18 71billion in 2020 Giving a general review of the performances of the various Strategic Business Units the Chief Financial Officer of the NNPC Mr Umar Ajiya said the positive performance from the various subsidiaries show how prepared the companies are for the post Petroleum Industry Bill regime Speaking at the IDSL AGM the Chairman of company s Board of Directors Mr Adeyemi Adetunji said though the performance was below target the company made progress in its priority areas In 2020 we carried on with our five Key Priority Areas from the previous year They included growing our revenue increasing our market share across our service lines maintaining a minimum operating cost to revenue ratio of 90 per cent expanding IDSL s capabilities in Marine Data acquisition and reducing contracting cycle Our efforts yielded amazing results Acting Managing Director of the company Mr Olufemi Sijuade said the company would continue to add value to the society without compromising requisite generation of returns to its shareholders The results were also positive for the National Engineering and Technical Company Limited NETCO which recorded N3 37billion as profit before tax for the 2020 financial year The outstanding performance by NETCO according to the Chairman of the board Engr Adeyemi Adetunji was a result of ingenuity and commitment on the part of its Management In spite challenges NETCO posted a profit before tax of N3 37billion which represents an increase of 53 94 per cent from N2 2billion in 2019 In view of the company s performance I am pleased to inform the meeting that NETCO remains a viable company and will be declaring a dividend of 40kobo per share to the shareholders at this AGM he said He also revealed that in addition to the huge profit the company secured for the first time the Projects Management Consultancy Owner s Engineer Services Contract for the rehabilitation of NNPC s three refineries making it the main engineering consultant for the projects In his remarks the Managing Director of NETCO Mr Usman Baba said the improvement was as a result of some deliberate cost cutting measures undertaken by his management team to boost profitability He said the company would continue to leverage on the NNPC s current Transparency Accountability and Performance Excellence TAPE initiative to remain commercially viable The outstanding performance continued with the Nigerian Gas Marketing Company NGMC which recorded a profit after tax of 41 7billion in the year ended 2020 representing a massive 311 per cent increase over its 2019 figures Also Mr Yusuf Usman Chief Operating Officer Gas amp Power who also doubles as Alternate Chairman of the NGMC Board disclosed that the astronomical leap in profit was achieved in spite of the challenges of low gas off take due to the economic downturn caused by the COVID 19 pandemic He said the company s revenue profile for the year rose to N215 45 billion as against N212 93 billon recorded in 2019 Usman noted that since the last AGM NGMC has made some key changes in terms of operational cost reduction and process optimization leading to increased operational performance in the year under review In alignment with NNPC s strategic goal to accelerate domestic gas utilization across the country NGMC has expanded its gas distribution portfolio to a number of strategic partners across the country We are optimistic that this will add to NGMC bottom line going forward he said Providing further insight into the 2020 performance the Managing Director Engr Faruk Usman informed that the cost optimization measures led to a total gas sales volume of 103 billion standard cubic feet as against a planned target of 100 17BCF NGMC also achieved Goal Zero in its Health Safety and Environment HSE indices which harps on zero incidents in operation He announced that in consonance with the NNPC GMD s directive to reduce cost of gas to achieve the company s Credit Information Report CIR Target NGMC successfully negotiated downward the price of feed gas with some producers In the same vein we renegotiated lower mark ups in our service contracts thereby significantly reducing operating expenses he said Also the Petroleum Products Marketing Company Limited PPMC was not left out of the impressive outings as it posted a net profit after tax of N3 59billion in the 2020 financial year The NNPC GMD who also doubles as the Chairman of the Board of Directors of the Company said in spite of the challenges posed by the Covid 19 pandemic and the lockdown the company was able to end 2020 on a positive note Kyari who was represented by the Chief Operating Officer Ventures and Business Development Engr Adeyemi Adetunji said the company sold a total of 18 17billion litres of petroleum products at a total value of N2 02 trillion A total of 26 09billion litres of petroleum products was imported during the year under review with Premium Motor Spirit PMS accounting for 94 27 per cent of the import Automotive Gas Oil AGO 5 1 per cent Dual Purpose Kerosene DPK 0 24 per cent and Aviation Turbine Kerosene ATK 0 39 per cent the GMD revealed He noted that there was 15 per cent increase in petroleum products imported in the year 2020 when compared with 22 6billion litres for the full year 2019 stressing that the increase was occasioned by a sharp rise in demand for PMS after the Covid 19 lockdown eased off The Chairman described the company as the livewire of the nation s downstream sector stressing that it has been very strategic in getting NNPC to meet its statutory obligation of providing energy security for the nation in terms of petroleum products sufficiency Also speaking at the AGM the Managing Director of the PPMC Mr Musa Lawan said the company has been repositioned to become the preferred marketer of petroleum products through the automation of its processes commercial orientation and financial autonomy In the same vein the Gas and Power Investment Company Limited NGPIC another subsidiary of the corporation laid a solid foundation for growth and profitability in the years ahead The Chairman of the NGPIC Board of Directors Mr Umar Ajiya at the maiden Annual General Meeting listed some of the key steps taken to put the company on a firm financial footing to include completion of the 1st and 2nd Gas Turbines for the 450MW Okpai Phase 2 Independent Power Plant IPP in Kwale Delta State completion of Feasibility Study Front End Engineering Design FEED for the 1350MW Kano IPP and the actualization of full transfer of 15 per cent equity shares in the ongoing 1050MW Kwale Independent Power Project IPP to NGPIC Other achievements are the acquisition of 20 per cent equity in Brass Fertilizer and Petrochemical Project BFPCL completion of feasibility study and Front End Engineering Design FEED for 1350MW Abuja IPP and completion of migration of NGPIC accounts into SAP He said NGPIC would leverage on the expected positive impact of the ongoing Presidential Power Initiative PPI to improve business operations for profitability Despite the economic slowdown and challenges peculiar to Nigeria s Oil Gas and Power amp non power gas based businesses NGPIC has continued to improve its performance The growth may currently be little however with continued commitment from our Shareholders Management and colleagues we are quite optimistic of a bright future for NGPIC Please be assured that NGPIC is very much poised for profitability and performance excellence In his remarks the Managing Director of NGPIC Dr Salihu Jamari said with continued support of shareholders and the management team s determination to leave lasting legacy the company would grow into a viable profit centre in no distant future NNPC Subsidiaries Post Impressive Performances in 2020 Financial Year NNPC Subsidiaries Post Impressive Performances in 2020 Financial Year On the Monthly Financial and Operation Report MFOR of the Corporation it recorded N234 63billion on Petroleum products Sales in the month of March 2021 The sales were made by its subsidiary the Petroleum Products Marketing Company PPMC compared to 188 15 billion sales in February 2021 The report indicates that total revenues generated from the sales of white products for the period March 2020 to March 2021 stood at 2 129trillion where petrol contributed about 99 24 per cent of the total sales with a value of 2 113trllion To ensure continuous increased PMS supply and effective distribution across the country the NNPC has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across Nigeria The report informed that in March 2021 70 pipeline points were vandalized representing 29 63per cent increase from the 54 points recorded in February 2021 During the period Port Harcourt area accounted for 63 per cent and Mosimi Area accounted for 21per cent of the vandalized points while Gombe accounted for the remaining 16 per cent However NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace In the Gas sector a total of 222 74 billion Cubic Feet BCF of natural gas was produced in the month March 2021 translating to an average daily production of 7 183 33 million Standard Cubic Feet per Day mmscfd Production from Joint Ventures JVs Production Sharing Contracts PSCs and NPDC contributed about 63 23 per cent 19 78 per cent and 63 99 per cent respectively to the total national gas production What you need to know The NNPC will ensure that Nigeria s National Strategic Interest is safeguarded by developing a comprehensive policy for its partners The NNPC will make clear Distinction between divestment of shares and operatorship agreements under various joint operation agreements The NNPC will leverage its rights of pre emption to evaluate the operational competency and track records of new partners In order to ensure that the corporation sustains a prosperous business environment it is paying attention to abandonment and relinquishment costs severance of Operator staff Third party contract liabilities and competency of the buyer to mention but a few As a national oil company and a global player NNPC is set to play key role in global transition to low carbon energy in the near future with Natural gas reserve serving as greatest enablerto smooth transition to low carbon energy On global crude oil outlook U S Oil Drops for 3rd Day On Concerns COVID 19 Variant Spread The United States of America oil prices fell while Brent futures were largely unchanged on mounting concerns that the increasing spread of the Delta variant of the coronavirus in top consuming countries will cut fuel demand Brent crude oil futures added 1 cent to 72 42 dollar per barrel while the United States of America West Texas Intermediate WTI crude fell 7 cents or 0 1 to 70 49 dollars per barrel Both futures fell to their lowest since July 21 before regaining some ground by the close Meanwhile the Market Intelligence Department of NNPC s London Office reported that another spike in Covid 19 infections in major economies hammered oil markets during the week although prices later regained some lost ground in volatile trading In London the front month October contract for Brent retreated by 48 to 72 41 dollars per barrel on relatively light trade while in New York the September contract for West Texas Intermediate WTI shed 70 to end at 70 56 dollars bbl Oil prices have tanked by almost five per cent over fear of the Delta variant of the coronavirus in the last few dayswith traders however hoping for a boost for the best in the years ahead NAN Source NAN
    NNPC weekly review: NNPC introduces divestment policy for partners
    General news1 year ago

    NNPC weekly review: NNPC introduces divestment policy for partners

    By Edith Ike-Eboh & Emmanuel AfonneThe Nigerian National Petroleum Corporation (NNPC) started its week with the declaration of its readiness to introduce regulations and criteria to guide its partners about divestments in the nation’s oil and gas industry.

    NNPC Group Managing Director, Malam Mele Kyari, disclosed this at the opening ceremony of the 2021 edition of the Nigeria Annual International Conference and Exhibition (NAICE) organised by the Society of Petroleum Engineers (SPE) in Lagos.

    He spoke on the theme “The Future of Energy: A Trilogy of Climate Change, Public Health & Global Oil Market,”

    He affirmed that the Corporation had worked out rules to guide partners on such issues as asset abandonment; relinquishment costs; severance of operator staff; third party contract liabilities; technical, operational and financial capabilities as well as competency of the buyer and post-purchase development plan.

    He said such a guideline had become necessary in order to safeguard the nation’s strategic interest in the face of the global sentiment against funding of fossil fuel projects.

    Kyari noted that in subsequent deals, NNPC would introduce new rules of engagement in order to make a clear distinction between divestment of equity shares and operatorship in the various joint operating agreements in order to leverage its rights of pre-emption.

    He added that there would also be clear criteria for evaluating the operational competency and track records of new partners.

    He  also stated that the new policy would be geared towards converting asset abandonment and relinquishment costs into opportunities to further grow the Nigerian Petroleum Development Company (NPDC), which he said has become the number one upstream company in Nigeria as at today.

    “Everything we are doing must be done in line with national interest. NNPC as a national oil company that represents all of us must be a global player.

    “This is our ambition and we are getting there. I can tell you that within the next one or two months, we are going to publish our Audited Financial Statement for 2020. I can also confirm to you that for the first time in our history, we will declare profits,” Kyari said.

    He said the Corporation would continue to play a pivotal role in the global energy transition as part of its commitment to promote low carbon investments by whetting the appetite of investors in cleaner energy sources like wind, solar, hydrogen, natural gas and bio-fuels.

    “We are deepening natural gas utilization under the National Gas Expansion Programme (NGEP) to earn more carbon credit and create a net zero carbon environment in line with our drive of becoming an energy company of global excellence,” Kyari stated.

    He noted that from the anticipated economic growth, rising global population and energy requirement, renewable energy sources alone would not be able to meet the energy demand by 2050, stressing that gas would still be a vital part of the global energy mix.

    He said the passage of the Petroleum Industry Bill (PIB) would enable the Corporation to focus more on improving oil and gas infrastructure through collaboration with major stakeholders, adding that NNPC was working with operators and service contractors to challenge cost of operations and increase profitability in the oil and gas sector.

    Also in the week under review, the Senegalese government seeks Nigeria’s support to develop their nation’s oil and gas sector.

    The Minister of State for Petroleum Resources, Chief Timpre Sylva, receiving the Senegalese Energy Minister, Aissitou Gladima and her delegation in Abuja said that Africa needed to come together and work to support development of the region and reduce over-dependence on foreigners for growth.

    “I want to use this opportunity to welcome you. As I said, it is important for us as a region to come together because as they say, you have to say yes before someone from outside says yes to you. We, as Africans, must come together to work together in order to chart a way forward. We cannot continue to depend on Europe and the outside world,” he said.

    He said that oil production activities started in Nigeria in 1937 but commercial discovery was made in 1950s, adding that first commercial discovery was made in 1956 and first cargo of crude left Nigeria in 1958.

    On local content, he said that Nigeria had grown its local content from three per cent in the past 10 years to about 43 per cent and the growth target is 70 per cent by 2027.

    In her remarks, Gladima thanked her Nigerian counterpart for the hospitality extended to her delegation, adding that her country had longed to partner with Nigeria to gain from its wealth of experience in the oil and gas sector.

    She said that Nigeria’s over 50 years’ experience in oil production was an excellent example for Senegal as it is beginning to grow its own oil and gas industry.

    She expressed her country’s interest to join the African Petroleum Producers’ Organization (APPO) to help the development of the oil sector in Senegal.

     

    Also the Corporation was able to weather the impact of COVID-19 with impressive performance in 2020 financial year. Some of its subsidiaries posted  impressive financial results at their various annual general meetings which held virtually recently.

    The Integrated Data Services Limited (IDSL), an Upstream subsidiary of NNPC with interest in the acquisition, processing, and interpretation of seismic data as well as reservoir management services, announced a revenue of N18.71billion in 2020.

    Giving a general review of the performances of the various Strategic Business Units, the Chief Financial Officer of the NNPC, Mr Umar Ajiya, said the positive performance  from the various subsidiaries show how prepared the companies are for the post-Petroleum Industry Bill regime.

    Speaking at the IDSL AGM, the Chairman of company’s Board of Directors, Mr Adeyemi Adetunji, said though the performance was below target, the company made progress in its priority areas.

    “In 2020, we carried on with our five Key Priority Areas from the previous year.

    “They included growing our revenue, increasing our market share across our service lines, maintaining a minimum operating cost to revenue ratio of 90 per cent expanding IDSL’s capabilities in Marine Data acquisition and reducing contracting cycle. Our efforts yielded amazing results”.

    Acting Managing Director of the company, Mr Olufemi Sijuade, said the company would continue to add value to the society without compromising requisite generation of returns to its shareholders.

    The results were also positive for the National Engineering and Technical Company Limited, (NETCO), which recorded N3.37billion as profit before tax for the 2020 financial year.

    The outstanding performance by NETCO, according to the Chairman of the board, Engr. Adeyemi Adetunji, was a result of ingenuity and commitment on the part of its Management.

    “In spite challenges, NETCO posted a profit before tax of N3.37billion, which represents an increase of 53.94 per cent from N2.2billion in 2019. In view of the company’s performance, I am pleased to inform the meeting that NETCO remains a viable company and will be declaring a dividend of 40kobo per share to the shareholders at this AGM,’’ he said.

    He also revealed that in addition to the huge profit, the company secured, for the first time, the Projects Management Consultancy/Owner’s Engineer Services Contract for the rehabilitation of NNPC’s three refineries, making it the main engineering consultant for the projects.

    In his remarks, the Managing Director of NETCO, Mr Usman Baba, said the improvement was as a result of some deliberate cost-cutting measures undertaken by his management team to boost profitability.

    He said the company would continue to leverage on the NNPC’s current Transparency, Accountability and Performance Excellence (TAPE) initiative to remain commercially viable.

    The outstanding performance continued with the Nigerian Gas Marketing Company (NGMC), which recorded a profit after tax of ₦41.7billion in the year ended 2020, representing a massive 311 per cent increase over its 2019 figures.

    Also, Mr Yusuf Usman, Chief Operating Officer, Gas & Power who also doubles as Alternate Chairman of the NGMC Board, disclosed that the astronomical leap in profit was achieved in spite of the challenges of low gas off-take due to the economic downturn caused by the COVID-19 pandemic.

    He said the company’s revenue profile for the year rose to N215.45 billion as against N212.93 billon recorded in 2019.

    Usman noted that since the last AGM, NGMC has made some key changes in terms of operational cost  reduction and process optimization leading to increased operational performance in the year under review.

    “In alignment with NNPC’s strategic goal to accelerate domestic gas utilization across the country, NGMC has expanded its gas distribution portfolio to a number of strategic partners across the country. We are optimistic that this will add to NGMC bottom-line going forward,” he said.

    Providing further insight into the 2020 performance, the Managing Director, Engr Faruk Usman, informed that the cost optimization measures led to a total gas sales volume of 103 billion standard cubic feet as against a planned target of 100.17BCF.

    NGMC also achieved Goal Zero in its Health Safety and Environment (HSE) indices -which harps on zero incidents in operation.

    He announced that in consonance with the NNPC GMD’s directive to reduce cost of gas to achieve the company’s Credit Information Report (CIR) Target, NGMC successfully negotiated downward the price of feed gas with some producers.

    “In the same vein, we renegotiated lower mark-ups in our service contracts, thereby significantly reducing operating expenses,’’ he said.

    Also, the Petroleum Products Marketing Company Limited (PPMC) was not left out of the impressive outings as it posted a net profit after tax of N3.59billion in the 2020 financial year.

    The NNPC GMD, who also doubles as the Chairman of the Board of Directors of the Company, said in spite of the challenges posed by the Covid-19 pandemic and the lockdown, the company was able to end 2020 on a positive note.

    Kyari, who was represented by the Chief Operating Officer, Ventures and Business Development, Engr. Adeyemi Adetunji, said the company sold a total of 18.17billion litres of petroleum products at a total value of N2.02 trillion.

    “A total of 26.09billion litres of petroleum products was imported during the year under review, with Premium Motor Spirit (PMS) accounting for 94.27 per cent of the import, Automotive Gas Oil (AGO) 5.1 per cent, Dual Purpose Kerosene (DPK) 0.24 per cent and Aviation Turbine Kerosene (ATK) 0.39 per cent,” the GMD revealed.

    He noted that there was 15 per cent increase in petroleum products imported in the year 2020 when compared with 22.6billion litres for the full year 2019, stressing that the increase was occasioned by a sharp rise in demand for PMS after the Covid-19 lockdown eased off.

    The Chairman described the company as the livewire of the nation’s downstream sector, stressing that it has been very strategic in getting NNPC to meet its statutory obligation of providing energy security for the nation in terms of petroleum products sufficiency.

    Also speaking at the AGM, the Managing Director of the PPMC, Mr Musa Lawan, said the company has been repositioned to become the preferred marketer of petroleum products through the automation of its processes, commercial orientation and financial autonomy.

    In the same vein, the Gas and Power Investment Company Limited (NGPIC), another subsidiary of the corporation laid a solid foundation for growth and profitability in the years ahead.

    The Chairman of the NGPIC Board of Directors Mr Umar Ajiya, at the maiden Annual General Meeting listed some of the key steps taken to put the company on a firm financial footing to include: completion of the 1st and 2nd Gas Turbines for the 450MW Okpai Phase 2 Independent Power Plant (IPP) in Kwale, Delta State, completion of Feasibility Study/Front End Engineering Design (FEED) for the 1350MW Kano IPP, and the actualization of full transfer of 15 per cent equity shares in the ongoing 1050MW Kwale Independent Power Project (IPP) to NGPIC.

    Other achievements are: the acquisition of 20 per cent equity in Brass Fertilizer and Petrochemical Project (BFPCL), completion of feasibility study and Front-End Engineering Design (FEED) for 1350MW Abuja IPP, and completion of migration of NGPIC accounts into SAP.

    He said NGPIC would leverage on the expected positive impact of the ongoing Presidential Power Initiative (PPI) to improve business operations for profitability.

    “Despite the economic slowdown and challenges peculiar to Nigeria’s Oil, Gas and Power & non-power gas-based businesses, NGPIC has continued to improve its performance. The growth may currently be little, however, with continued commitment from our Shareholders, Management and colleagues, we are quite optimistic of a bright future for NGPIC. Please be assured that NGPIC is very much poised for profitability and performance excellence”.

    In his remarks, the Managing Director of NGPIC, Dr Salihu Jamari, said with continued support of shareholders and the management team’s determination to leave lasting legacy, the company would grow into a viable profit centre in no distant future.NNPC Subsidiaries Post Impressive Performances in 2020 Financial Year.NNPC Subsidiaries Post Impressive Performances in 2020 Financial Year.

    On the Monthly Financial  and Operation Report (MFOR) of the Corporation, it recorded N234.63billion on Petroleum products Sales in the month of March 2021. The sales were made by its subsidiary the Petroleum Products Marketing Company (PPMC) compared to ₦188.15 billion sales in February 2021.

    The report indicates that total revenues generated from the sales of white products for the period March 2020 to March 2021 stood at ₦2.129trillion, where petrol contributed about 99.24 per cent of the total sales with a value of ₦2.113trllion.

    To ensure continuous increased PMS supply and effective distribution across the country, the NNPC has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across Nigeria.

    The report informed that in March 2021, 70 pipeline points were vandalized representing 29.63per cent increase from the 54 points recorded in February 2021.

    During the period, Port Harcourt area accounted for 63 per cent and Mosimi Area accounted for 21per cent of the vandalized points while Gombe accounted for the remaining 16 per cent.

    However, NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.

    In the Gas sector, a total of 222.74 billion Cubic Feet (BCF) of natural gas was produced in the month March 2021 translating to an average daily production of 7,183.33 million Standard Cubic Feet per Day (mmscfd).

    Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 63.23 per cent 19.78 per cent and 63.99 per cent  respectively to the total national gas production.

    What you need to know

    The NNPC will ensure that Nigeria’s National Strategic Interest is safeguarded by developing a comprehensive policy for its partners. The NNPC will make clear Distinction between divestment of shares and operatorship agreements under various joint operation agreements. The NNPC will leverage its rights of pre-emption to evaluate the operational competency and track records of new partners. In order to ensure that the corporation sustains a prosperous business environment, it is paying attention to abandonment and relinquishment costs severance of Operator staff, Third party contract liabilities and competency of the buyer to mention but a few. As a national oil company and a global player, NNPC is set to play key role in global transition to low carbon energy in the near future with Natural gas reserve serving as greatest enablerto smooth transition to low carbon energy.

    On global crude oil outlook, U.S. Oil Drops for 3rd Day On Concerns COVID-19 Variant Spread.

    The United States of America oil prices fell while Brent futures were largely unchanged on mounting concerns that the increasing spread of the Delta variant of the coronavirus in top consuming countries will cut fuel demand.

    Brent crude oil futures added 1 cent to 72.42 dollar per barrel while the United States of America West Texas Intermediate (WTI) crude fell 7 cents, or 0.1, to 70.49 dollars per barrel.

    Both futures fell to their lowest since July 21 before regaining some ground by the close.

    Meanwhile, the Market Intelligence Department of NNPC’s London Office reported that another spike in Covid-19 infections in major economies hammered oil markets during the week, although prices later regained some lost ground in volatile trading.

    In London, the front-month October contract for Brent retreated by 48¢ to 72.41 dollars per barrel on relatively light trade, while in New York, the September contract for West Texas Intermediate (WTI) shed 70¢ to end at 70.56 dollars /bbl.

    Oil prices have tanked by almost five per cent over fear of the Delta variant of the coronavirus in the last few dayswith traders, however, hoping for a boost for the best in the years ahead.(NAN)

    Source: NAN

  •   By Solomon Asowata The Department of Petroleum Resources has bagged the best exhibitors award at the 2021 Society of Petroleum Engineers SPE Nigeria Annual international Conference and Exhibition NAICE in Lagos A statement issued on Friday by Mr Paul Osu Head Public Affairs DPR on Friday in Lagos said the regulatory agency bagged the award for its creativity and technical excellence Osu said the 44th edition of the three day conference had as its theme The Future of Energy A Trilogy of Determinants Climate Change Public Health and the Global Oil Market According to him over sixty exhibitors from the oil and gas industry in Nigeria participated at the conference He said the Director of DPR Mr Sarki Auwalu dedicated the award to all DPR staff for their support and dedication in striving to meet the aspirations of the government for the oil and gas industry Osu added that the DPR boss promised that the agency would continue to provide necessary regulatory oversight and support to the industry to ensure business continuity and maximum economic recovery from Nigeria s hydrocarbon Resources NAN Source NAN
    DPR wins best exhibitors award at SPE conference
      By Solomon Asowata The Department of Petroleum Resources has bagged the best exhibitors award at the 2021 Society of Petroleum Engineers SPE Nigeria Annual international Conference and Exhibition NAICE in Lagos A statement issued on Friday by Mr Paul Osu Head Public Affairs DPR on Friday in Lagos said the regulatory agency bagged the award for its creativity and technical excellence Osu said the 44th edition of the three day conference had as its theme The Future of Energy A Trilogy of Determinants Climate Change Public Health and the Global Oil Market According to him over sixty exhibitors from the oil and gas industry in Nigeria participated at the conference He said the Director of DPR Mr Sarki Auwalu dedicated the award to all DPR staff for their support and dedication in striving to meet the aspirations of the government for the oil and gas industry Osu added that the DPR boss promised that the agency would continue to provide necessary regulatory oversight and support to the industry to ensure business continuity and maximum economic recovery from Nigeria s hydrocarbon Resources NAN Source NAN
    DPR wins best exhibitors award at SPE conference
    General news1 year ago

    DPR wins best exhibitors award at SPE conference

    By Solomon Asowata

    The Department of Petroleum Resources has bagged the best exhibitors award at the 2021 Society of Petroleum Engineers (SPE) Nigeria Annual international Conference and Exhibition (NAICE) in Lagos.

    A statement issued on Friday by Mr Paul Osu, Head, Public Affairs, DPR, on Friday in Lagos said the regulatory agency bagged the award for its creativity and technical excellence.

    Osu said the 44th edition of the three-day conference had as its theme: “The Future of Energy – A Trilogy of Determinants: Climate Change, Public Health, and the Global Oil Market.”

    According to him, over sixty exhibitors from the oil and gas industry in Nigeria participated at the conference.

    He said the Director of DPR, Mr Sarki Auwalu, dedicated the award to all DPR staff for their support and dedication in striving to meet the aspirations of the government for the oil and gas industry.

    Osu added that the DPR boss promised that the agency would continue to provide necessary regulatory oversight and support to the industry to ensure business continuity and maximum economic recovery from Nigeria’s hydrocarbon Resources. (NAN) 

    Source: NAN

  •   By Solomon Asowata The Federal Government said it would optimise the country s abundant gas resource to achieve transition to low carbon energy sources Chief Timipre Sylva Minister of State for Petroleum Resources said this assertion at the 2021 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Tuesday in Lagos The News Agency of Nigeria NAN reports that the conference has as its theme The Future of Energy A Trilogy of Determinants Climate Change Public Health and the Global Oil Market Sylva said The scenario being projected by some energy experts is that energy transition to low carbon energy sources would make the world a better living place with a cleaner climate I believe so too likewise the Government of Nigeria He however faulted the assumption that the transition to the use of low carbon energy solutions must happen simultaneously across the globe The minister noted that those pushing for the move failed to take into account the different socio economic political and developmental peculiarities of individual nations Let me state categorically that our approach towards the climate change net zero emission debate is to optimise the use of our abundant gas resource domestically as a transition fuel option towards meeting our Nationally Determined Contributions on climate change As a government we are determined to encourage more penetration of natural gas and its derivatives for domestic utilisation power generation gas based industries and propulsion in all aspects of the national economy This would in a fundamental manner address the great challenge posed by volatile oil market the environmental issues and public health concerns said Silva He said it was obvious that the world was migrating from a fossil fuel based economy to renewable energy This he added had engendered a corresponding decline in hydrocarbon including possible divestiture in the sector as deliberate frameworks were being championed to discourage extraction of carbon laden resources The minister noted that the COVID 19 pandemic had further exacerbated the investment decline Sylva said the government was therefore collaborating with its global partners in exploring policies technologies and investments He said this was aimed at addressing the challenge of migrating from carbon dependent fuels in order to meet its commitment to the Paris Agreement It is our belief that the distinguished Society of Petroleum Engineers SPE will be in the forefront of our quest to achieve the desired balance of clean environment safe public health and a renewed global oil market This SPE Annual International Conference and Exhibition will be an appropriate platform to bring to the front burner the critical discussions that would forge a robust and implementable clean energy solutions pathway for Nigeria the minister said Mr Roger Brown Chief Executive Officer Seplat Petroleum Development Company Plc said the company was committed to the aspirations of Nigeria and would continue to invest towards the objective Brown represented by Mr Effiong Okon Executive Director of Operations Seplat commended the government for initiating projects and programmes to boost gas development in Nigeria He said the programmes included the National Gas Expansion Programme National Gas Transportation Network Code and Nigeria Gas Flare Commercialisation Programme According to him the construction of infrastructures such as the NLNG Train 7 Project Ajaokuta Kaduna Kano AKK and the Obiafu Obrikon Oben OB3 pipelines will help deepen gas utilisation in Nigeria Brown said Seplat would continue to make investments to support the vision of the government adding that the company was currently supplying 30 per cent of gas to the electricity sector NAN
    FG says domestic gas optimisation key to energy transition
      By Solomon Asowata The Federal Government said it would optimise the country s abundant gas resource to achieve transition to low carbon energy sources Chief Timipre Sylva Minister of State for Petroleum Resources said this assertion at the 2021 Society of Petroleum Engineers SPE Nigeria Annual International Conference and Exhibition NAICE on Tuesday in Lagos The News Agency of Nigeria NAN reports that the conference has as its theme The Future of Energy A Trilogy of Determinants Climate Change Public Health and the Global Oil Market Sylva said The scenario being projected by some energy experts is that energy transition to low carbon energy sources would make the world a better living place with a cleaner climate I believe so too likewise the Government of Nigeria He however faulted the assumption that the transition to the use of low carbon energy solutions must happen simultaneously across the globe The minister noted that those pushing for the move failed to take into account the different socio economic political and developmental peculiarities of individual nations Let me state categorically that our approach towards the climate change net zero emission debate is to optimise the use of our abundant gas resource domestically as a transition fuel option towards meeting our Nationally Determined Contributions on climate change As a government we are determined to encourage more penetration of natural gas and its derivatives for domestic utilisation power generation gas based industries and propulsion in all aspects of the national economy This would in a fundamental manner address the great challenge posed by volatile oil market the environmental issues and public health concerns said Silva He said it was obvious that the world was migrating from a fossil fuel based economy to renewable energy This he added had engendered a corresponding decline in hydrocarbon including possible divestiture in the sector as deliberate frameworks were being championed to discourage extraction of carbon laden resources The minister noted that the COVID 19 pandemic had further exacerbated the investment decline Sylva said the government was therefore collaborating with its global partners in exploring policies technologies and investments He said this was aimed at addressing the challenge of migrating from carbon dependent fuels in order to meet its commitment to the Paris Agreement It is our belief that the distinguished Society of Petroleum Engineers SPE will be in the forefront of our quest to achieve the desired balance of clean environment safe public health and a renewed global oil market This SPE Annual International Conference and Exhibition will be an appropriate platform to bring to the front burner the critical discussions that would forge a robust and implementable clean energy solutions pathway for Nigeria the minister said Mr Roger Brown Chief Executive Officer Seplat Petroleum Development Company Plc said the company was committed to the aspirations of Nigeria and would continue to invest towards the objective Brown represented by Mr Effiong Okon Executive Director of Operations Seplat commended the government for initiating projects and programmes to boost gas development in Nigeria He said the programmes included the National Gas Expansion Programme National Gas Transportation Network Code and Nigeria Gas Flare Commercialisation Programme According to him the construction of infrastructures such as the NLNG Train 7 Project Ajaokuta Kaduna Kano AKK and the Obiafu Obrikon Oben OB3 pipelines will help deepen gas utilisation in Nigeria Brown said Seplat would continue to make investments to support the vision of the government adding that the company was currently supplying 30 per cent of gas to the electricity sector NAN
    FG says domestic gas optimisation key to energy transition
    General news1 year ago

    FG says domestic gas optimisation key to energy transition

    By Solomon Asowata

     The Federal Government said it would optimise the country’s abundant gas resource to achieve transition to low carbon energy sources.

    Chief Timipre Sylva, Minister of State for Petroleum Resources, said this assertion at the 2021 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Tuesday in Lagos.

    The News Agency of Nigeria (NAN) reports that the conference has as its theme: “The Future of Energy – A Trilogy of Determinants: Climate Change, Public Health, and the Global Oil Market.”

    Sylva said: “The scenario being projected by some energy experts is that energy transition to low carbon energy sources would make the world a better living place with a cleaner climate.

    “I believe so too, likewise the Government of Nigeria.”

    He, however, faulted the assumption that the transition to the use of low carbon energy solutions must happen simultaneously across the globe.

    The minister noted that those pushing for the move failed to take into account the different socio-economic, political and developmental peculiarities of individual nations.

    “Let me state categorically that our approach towards the climate-change-net-zero-emission debate is to optimise the use of our abundant gas resource domestically as a transition fuel option towards meeting our Nationally Determined Contributions on climate change.

    “As a government, we are determined to encourage more penetration of natural gas and its derivatives for domestic utilisation, power generation, gas-based industries and propulsion in all aspects of the national economy.

    “This would in a fundamental manner address the great challenge posed by volatile oil market, the environmental issues and public health concerns,” said Silva.

    He said it was obvious that the world was migrating from a fossil fuel-based economy to renewable energy.

    This, he added, had engendered a corresponding decline in hydrocarbon including possible divestiture in the sector as deliberate frameworks were being championed to discourage extraction of carbon-laden resources.

    The minister noted that the COVID-19 pandemic had further exacerbated the investment decline.

    Sylva said the government was, therefore, collaborating with its global partners in exploring policies, technologies and investments.

    He said this was aimed at addressing the challenge of migrating from carbon dependent fuels in order to meet its commitment to the Paris Agreement.

    “It is our belief that the distinguished Society of Petroleum Engineers (SPE) will be in the forefront of our quest to achieve the desired balance of clean environment, safe public health and a renewed global oil market.

    “This SPE Annual International Conference and Exhibition will be an appropriate platform to bring to the front-burner the critical discussions that would forge a robust and implementable clean energy solutions pathway for Nigeria,” the minister said.

    Mr Roger Brown, Chief Executive Officer, Seplat Petroleum Development Company Plc, said the company was committed to the aspirations of Nigeria and would continue to invest towards the objective.

    Brown, represented by Mr Effiong Okon, Executive Director of Operations, Seplat, commended the government for initiating projects and programmes to boost gas development in Nigeria.

    He said the programmes included the National Gas Expansion Programme, National Gas Transportation Network Code and Nigeria Gas Flare Commercialisation Programme.

    According to him, the construction of infrastructures such as the NLNG Train 7 Project, Ajaokuta- Kaduna-Kano (AKK) and the Obiafu-Obrikon-Oben (OB3) pipelines will help deepen gas utilisation in Nigeria.

    Brown said Seplat would continue to make investments to support the vision of the government, adding that the company was currently supplying 30 per cent of gas to the electricity sector. (NAN)