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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”.

Oil & Gas

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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Oil & Gas

Nigeria Oil Firms Spill 1,545 Barrels Of Crude Oil In First Quarter 2022

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Nigeria Boosts Oil Production By 200,000b/d

Oil and gas companies operating in the Niger Delta spilled 1,545 barrels of crude oil, an equivalent of 246, 000 liters, in three months, from January to March 2022, according to data obtained from the National Oil Spill Detection Response Agency, NOSDRA.

Although this indicates 52.6 percent less than the 3,262 barrels of crude oil spilled in the corresponding period of 2021, the development reflects the severe impact of environmental pollution on the nation’s economy due to crude oil exploration.

On a company by company basis, the report revealed that Heritage Energy Operational Service Limited recorded the highest spills, with 404.3 barrels of crude oil spilled in 31 incidents; followed by Shell Petroleum Development Company, SPDC, with 404.3 barrels of crude oil spilled in 31 incidents.

Others on the list include Empire energy, 314.47 barrels of crude oil spilled in one incident; Eroton Exploration and Production Limited spilled 69.57 barrels of crude oil in one incident; Nigerian Agip Oil Company, NAOC, spilled 49.7 barrels of crude oil in 16 incidents; while Enageed Resource Limited spilled 15 barrels in two incidents.

While the value of the crude oil spilled might not be huge, the damage to the environment, the disruption to the livelihoods of individuals within the impacted communities, and the manpower and financial resources required to clean up the spill and return the environment to its original state, run into billions of dollars.

Reacting to the development, the former Chairman, Petroleum Association of Nigeria, Bank-Anthony Okoroafor, said, “It cost millions of dollars to clean a barrel of a crude oil spill.

The cost of managing oil spillage is very huge, it cannot be quantified because the cost to human life is more. Environmental degradation caused by the spillage affects human life. A lot of people in the next 10 years or more will suffer from serious lungs problems and cancer among others.

According to Duke Energy Distinguished Professor of Environmental Engineering and Science, Hilary Inyang, who has completed a scientific study of the areas, “A deep analysis should show that it would cost more than $50 billion to clean up more than 2,500 sites in the entire Niger Delta, even with the recognition that there have been more spills than spill sites.

Speaking further, he said, “It would also take more than 50 years, even if that money was available. My back-of-the-envelope estimate is that for Ogoniland sites alone, about $6 billion are needed but risks can be reduced to tolerable levels with $3 billion.”

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