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OML 17: Heirs Holdings Begins Work On Oilfield

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OML 17: Heirs Holdings Begins Work On Oilfield

One year after acquiring a 45 per cent stake in Oil Mining Lease (OML) 17, Heirs Holdings has issued a tender for work on the Elelenwa multi-phase pump gathering station.

Heirs Holdings acquired the 45 per cent stake from Shell Petroleum Development Company (SPDC), Total E&P, and Eni. The Nigerian National Petroleum Corporation (NNPC) holds the remaining 55 per cent.

Heirs Holdings Oil and Gas said it was seeking interested and pre-qualified contractors for the work. The contractor will carry out the work under an engineering, procurement, installation, and commissioning (EPIC) contract.

The scope covers work through to start-up of a pump gathering station for good fluids from the Elelenwa West manifold and flows to the Agbada-1 flow station for processing. The Agbada field is in the middle of the license, while Elelenwa is in the south, close to Port Harcourt.

Scope includes a mini front-end engineering and design (FEED), followed by a detailed engineering design. Work will also include the provision of a schedule, site surveys, and power generation. The supplier will also provide two years of operational spares, deliver the pump and other facilities to the site, carry out performance testing, and finally hand over.

The company requires interested bidders to be pre-qualified in the NipeX joint qualification system database. They must also submit details on how they will comply with local content requirements. Bids must include commercial and technical tenders at the same time.

Heirs Holdings’ purchase from the three IOCS in early 2021 included Schlumberger as a technical partner, while Shell’s trading arm is an off-taker. The financing involved United Capital, Afreximbank, ABSA, Africa Finance Corporation (AFC), Union Bank of Nigeria, Hybrid Capital, and Amundi. Standard Chartered acted as global coordinator.

OML 17 currently produces 30,000 barrels of oil equivalent per day. It has 2P reserves of 1.2 billion boe, with another 1bn boe of exploration potential. The company has said infrastructure in the area could allow the production of 200,000 BPD of oil and 300 million cubic feet per day of gas.

The oil company had in May 2021, appointed Osayande Igiehon as CEO, joining the company from Shell. Heirs Holdings’ Chairman, Tony Elumelu, is also chairman of the oil unit.

Igiehon while speaking on his appointment, said ‘‘Heirs Holding Oil and Gas represented an “extraordinary opportunity to create Africa’s first true integrated energy company, with a mission to ensure that Africa’s natural resources are directed toward value creation in Africa, powered by sustainable, robust and abundant African energy”.

It appointed senior executives in August, including CFO, Samuel Nwanze, and a number of former Shell employees.

Heirs Holdings has plans to cut flaring and increase power generation. The company had said OML 17 will “drive an integrated energy strategy to deliver the benefits of meeting energy demands while improving labour productivity in the country”.

Source- The Sun Newspaper.

Oil & Gas

Nigeria Produces 78 Percent Of OPEC Oil Quota In April – NNPC

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NNPC, marketers begins 24-hour depot, retail outlet operations to end fuel scarcity

…”there have been challenges limiting the country from making the much-desired progress” – Komolafe

Olushola Okunlade Writes

Nigeria’s oil production in April 2022 averaged 1.354 million barrels per day, mbpd, about 78 percent of the 1.735 mbpd quotas allocated to it by the Organisation of Petroleum Exporting Countries, OPEC.

In its latest report to the Federation Account Allocation Committee, FAAC, meeting in May, the NNPC said total oil lifted (export crude) in April was 8.8 million barrels which was a 10 percent decline from the 9.77 million barrels lifted in the previous month. The report said that N337.6 billion was the gross domestic crude oil and gas revenue for the month of April, while recovery of strategic holding cost of N239, 381,651.39 was posted.

NNPC added that crude oil export revenue received during the month amounted to $14.70 million, with export revenue received in April amounting to $29.94 million. The report also showed that NLNG feedstock gas receipt was $76.47 million which represented last month’s receipt of $72.48 million, plus arrears of $4.26 million. It added that other receipts for the month included the sum of $29.18 million being miscellaneous receipts, gas and ullage fees as well as interest income.

Speaking at the Iwereland Petroleum Communities Summit of the Host Communities’ Development Trusts as part of the Implementation of the Host Communities Development Trusts in Oil-Producing Itsekiri Communities, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe attributed the country’s low production level to the massive oil theft going on in the Niger Delta region.

Komolafe said that despite the country’s technical capacity to produce 2.3mbpd, it was producing 1.9 mbpd out of which 1.35 mbpd was received at export terminals. He said: “While the Commission is prioritising efforts towards increasing oil and gas production and ensuring maximum economic recovery in Nigeria through the optimisation of the oil and gas value chain, there have been challenges limiting the country from making the much-desired progress.

“Currently, Nigeria has the potential to produce about 2.3 million barrels of oil per day being the technical allowable. Unfortunately, the country can only produce about 1.9 million barrels of oil per day out of which only about 1.35 million barrels of oil per day are received at the terminals due to massive crude oil theft and pipeline vandalism”.

He pointed out that “in the First Quarter of 2022 alone, out of about 141 million barrels of oil produced and a total of about 9 million barrels of oil was lost to crude oil theft. This amounts to a loss in Government revenue of about 1 billion United States Dollars (at $116 per barrel) or about N434 billion (at a CBN rate of N 415/$) which is about 90% the size of Delta State’s budget of N479 billion for the 2022 fiscal year.

“These monies could have otherwise been available for developmental projects such as the building of hospitals, schools, roads, provision of electricity and potable water, etc. More saddening, and undesirable, is the fact that sabotage of oil and gas facilities results in additional remediation costs to the Government as well as environmental degradation, soil and water contamination, the threat to human life, source of livelihood, wildlife, and marine life (fishes), crops resulting from spills”.

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Dangote Refinery To Expose Nigeria’s Downstream, Midstream Sectors To Int’l Markets

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Dangote Refinery To Expose Nigeria’s Downstream, Midstream Sectors To Int’l Markets

Dangote Refinery to Expose Nigeria’s Downstream, Midstream Sectors to Int’l Markets

Olushola Okunlade Writes

The coming on stream of the 650,000 barrels per day Dangote Petroleum Refinery will guarantee the availability of high-quality environmentally compliant products in Nigeria, regional markets in West Africa, Southern Africa, and inter-continental markets.

The President/CE of Dangote Group, Aliko Dangote made this disclosure on Tuesday at the Nigerian Content Midstream – Downstream Oil and Gas Summit 2022, which was held in Lagos.

Dangote Refinery To Expose Nigeria’s Downstream, Midstream Sectors To Int’l Markets
Left-Right: Representative of the President /CE, Dangote Industries Limited, Engr. Babajide Soyode, Technical Consultant – Dangote Industries Limited, Dangote Oil Refinery Company Limited, AGM Training, Development & Stakeholders Relationship Management, Dr. Ebele Oputa, Nigerian Content Development Monitoring Board, Director of Monitoring and Evaluation, Akintunde Adelana, Nigerian Content Development & Monitoring Board, Director of Planning, Research & Statistics, Daziba Patrick Obah, at the Dangote Petroleum Refinery Sponsor The Nigerian Content Midstream – Downstream, Oil, and Gas Summit 2022, in Lagos on Tuesday 24th May 2022.
Dangote Refinery To Expose Nigeria’s Downstream, Midstream Sectors To Int’l Markets
Left-Right: Representative of the President /CE, Dangote Industries Limited, Engr. Babajide Soyode, Technical Consultant – Dangote Industries Limited, Dangote Oil Refinery Company Limited, AGM Training, Development & Stakeholders Relationship Management, Dr. Ebele Oputa, Nigerian Content Development & Monitoring Board, Director of Planning, Research & Statistics, Daziba Patrick Obah, at the Dangote Petroleum Refinery Sponsor The Nigerian Content Midstream – Downstream, Oil, and Gas Summit 2022, in Lagos on Tuesday 24th May 2022

Dangote, who was represented by the Technical Consultant, Dangote Industries Limited, Engr. Babajide Soyode, said Dangote Petroleum Refinery would promote competition for local refining in Africa by encouraging existing large refineries to upscale, which would result in surplus products for exports.

He stated: “Dangote Petroleum Refinery will guarantee adequate fuels production for domestic consumption, availability of excess products for export, stabilization of domestic currency, upgrading, and expansion of Nigerian National Petroleum Corporation refineries and promotion of prospects of Nigeria transformation to a regional refining hub.”

Soyode emphasised the need for the Federal Government to invest more in quality infrastructure to reduce the importation of refinery equipment that would ordinarily be sourced in Nigeria. He noted that the development of specific, sustainable equipment manufacturing and services should be the focus of the NCDMB and the Federal Government. 

“Funding of a project should be to ensure that a substantial part of the production plant must be of Nigerian origin; the same applies to goods and services. Government should ensure a single-digit tax regime to encourage investment in the downstream sector”, he added.

Dangote Refinery To Expose Nigeria’s Downstream, Midstream Sectors To Int’l Markets
Left-Right: Representative of the President /CE, Dangote Industries Limited, Engr. Babajide Soyode, Technical Consultant – Dangote Industries Limited, Dangote Oil Refinery Company Limited, AGM Training , Development & Stakeholders Relationship Management, Dr. Ebele Oputa, Nigerian Content Development Monitoring Board, Director of Monitoring and Evaluation, Akintunde Adelana, Nigerian Content Development & Monitoring Board, Director of Planning, Research & Statistics, Daziba Patrick Obah, at the Dangote Petroleum Refinery Sponsor The Nigerian Content Midstream – Downstream , Oil and Gas Summit 2022, in Lagos on Tuesday 24th may 2022.

Speaking also, the Executive Secretary, NCDMB, Mr. Simbi Wabote reiterated the government’s target to increase domestic refining capacity to 1.4 million barrels per day in the next five years.

Wabote said this was being done by rehabilitating the existing four national refineries and providing strategic support for setting up private-owned Greenfield and modular refineries in the country.

“Combined refining capacity of more than 1.4mbpd is expected from these focus areas within the next five years. About 400,000bpd is expected from the rehabilitation of NNPC refineries in Port Harcourt, Warri, and Kaduna using a target performance of not less than 90 per cent of nameplate capacity. The greenfield element of the roadmap covers the 650,000bpd Dangote Refinery in Lagos and the 200,000bpd BUA Refinery in Akwa Ibom,” said Wabote.

On his part, the Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, said there were huge opportunities in the oil and gas value chain.

Ahmed, represented by Mr. Francis Ogaree, Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure, NMDPRA, said the authority would continue to enable business in the sector.

He said the enactment of the Petroleum Industry Act (PIA) had introduced a governance framework for the industry with a clear delineation of roles between regulation and profit-centric business units.

Ahmed noted that the Act contained fiscal incentives to attract investment in gas development and local refining.

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NNPC Board Chairman Commends Nigeria’s Participation At OTC 2022

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‘There’s Sufficient Petrol’, Don’t Panic To Buy, Says NNPC

Olushola Okunlade Writes

Senator Margery Chuba-Okadigbo, Chairman of the Board of the Nigerian National Petroleum Company (NNPC) Ltd., on Monday commended the Nigerian delegation at the 2022 Offshore Technology Conference (OTC), in Houston, Texas, United States.

Chuba-Okadigbo gave the commendation while declaring open the OTC Nigerian exhibition pavilion at the conference.

She expressed her excitement toward declaring the pavilion open, saying that it was a thing of joy and pride that Nigeria is well represented at the conference.

Reports have it that the theme of the Nigerian exhibition pavilion is: “Energy Transition and the Future of Africa”, organized by the Petroleum Technology Association of Nigeria (PETAN).

The OTC is a platform where energy professionals across the globe meet to exchange ideas and opinions to advance scientific and technical knowledge for offshore resources.

“I am delighted to declare this exhibition open. Again, it’s a thing of joy and pride to see you Nigerians well represented in foreign countries,” she said.

Earlier in his opening remarks, the Chairman of PETAN, Mr. Nicolas Odinuwe, said that the theme was carefully chosen to “reflect the current realities in African oil and gas.”

Odinuwe called on Nigerian oil and gas industry leaders to continue to echo PETAN’s calls to deepen Nigerian content as always and implored the NNPC Ltd. board and others to indulge the association.

“OTC means different things to different people. But thanks to PETAN’s focused participation.

“PETAN and Nigeria have built capacities, capabilities, and visibility. PETAN has been the host of the Nigerian Pavilion for over 15 years.

“And we have been fully supported by the NNPC (now NNPC Limited) who are in transition.

We are here to continue to propagate, advocate and advance technology that has led to Nigeria being the only country in Sub-Saharan Africa with a robust exploration and production service industry,” he said.

According to the chairman, OTC gives attendees access to leading-edge technical information.

He said: “The benefits of the OTC 2022 event include showcasing companies’ capabilities to over 1,000 delegates and over 250 companies in the oil and gas industry.

“Also to give exhibitors the chance to promote their products and services to operators and contractors in the local region.

“Other benefits include gaining access by organizations to the latest industry news, a presence at one of the world’s largest oil and gas events and access to networking opportunities with professional contacts from across the world.

“Networking with the upstream, midstream, and downstream organizations as well as high profiled government officials and key decision-makers in the industry.

” The conference will give participants the opportunity to build and establish new leads as well as entrench a global presence in the industry.

“It will enable them to get familiar with competitors’ capabilities to stay ahead in the industry.”

Odinuwe said that PETAN had been responsible for leading and hosting the Nigerian government agencies, stakeholders, oil and gas companies, and investors at the OTC yearly.

He said that among the reasons for OTC was to deliver a unique experience for exhibitors and delegates to interact with global professionals as they share their insights on technological advances, energy transition, safety, environmentally focused solutions, and economic and regulatory impacts of the offshore energy sector.

“Organisations’ attendance will create a chance to develop business relationships and tap into emerging regions that are vital to offshore development as well as obtaining recognition necessary for growth and visibility to thousands across the globe,” he added.

He recalled that at the OTC 2019, Nigeria had the fifth-largest representation of over 60 participating countries.

“The value of participating organizations’ presence cannot be overestimated as they stand a chance to project their activities to investors and stakeholders spanning different countries.

The event will feature, among others, the formal opening of the Nigerian exhibition pavilion in the NRG Park; the luncheon and panel sessions on the Nigerian energy and supportive industries; the Nigerian Industry Awards Dinner and Cocktail; sideshows of Nigerian culture displays and entertainment; technical sessions and networking golf event,” he said.

PETAN is an association of indigenous Technical Oilfield Service Companies.

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