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Shell Advances In Gas Distribution, Deep-Water Exploration, And Production



Mr. Osagie Okunbor, Managing Director, Shell Petroleum Development Company of Nigeria (SPDC) and Country Chairman of Shell Companies in Nigeria.

…Helping to power Nigeria’s economy

Olushola Okunlade Writes

The Shell Petroleum Development Company of Nigeria Limited (SPDC) has invested in businesses in Nigeria for more than 60 years and has shown growth interests in several companies that produce, distribute, and export oil, gas, and liquefied natural gas (LNG), and other energy products.

The Shell Nigeria Exploration and Production Company Limited (SNEPCo) produces oil and gas in the deep waters of the Gulf of Guinea. Shell Nigeria Gas Limited (SNG) provides gas to industrial and commercial customers.

Three businesses are ultimately wholly owned by Shell Plc and together are known as the Shell
Companies in Nigeria (SCiN): The Shell Petroleum Development Company of Nigeria Limited (SPDC) has a 30% share in the SPDC joint venture (SPDC JV) which produces oil and gas in the Niger Delta.

The SPDC JV has 16 Niger Delta onshore oil mining leases (OML) after the completion of the sale of its interest in OML 17 on January 15, 2021.

SPDC also has three shallow-water licenses (OMLs 74, 77, and 79) and a 40% interest in the non-Shell-operated Sunlink joint venture that has one shallow-water license (OML 144).

SNEPCo has interests in two Shell-operated deep-water blocks: Bonga (OML 118 – 55% interest) and Bolia/Doro (OML 135 – 55% interest).

SNEPCo also has an interest in the non-operated deep-water block: Erha (OML 133 – 43.75% interest). SNEPCo’s license for the non-operated Zabazaba block (OPL-245) expired in 2021.

Mr. Osagie Okunbor, Managing Director, Shell Petroleum Development Company of Nigeria (SPDC) and Country Chairman of Shell Companies in Nigeria.
Mr. Osagie Okunbor, Managing Director, Shell Petroleum Development Company of Nigeria (SPDC) and Country Chairman of Shell Companies in Nigeria.

Osagie Okunbor, Country Chairman of Shell Companies in Nigeria recalls last year’s achievement “I stand in awe of the sheer grit and determination of our staff and contractors that have enabled us to achieve most of our business goals despite the challenges that we have faced and continue to face. The year has so many success stories, including how we are advancing our ambitions in gas distribution and deep-water exploration and production.

“However, Shell Companies in Nigeria, like other operators, have suffered from a growing number of sabotage attacks on our oil wells and pipelines, as well as the rising levels of crude oil theft. This forced us to declare a force majeure on our Bonny export program, effective March 3, 2022. Now is the time to remind ourselves of a stark reality: the theft of crude oil is also the theft of jobs and opportunity. The illegal actions of third parties are robbing Nigeria’s economy of billions of dollars and this must end. I am also saddened by an unprecedented tragedy.

“In August 2021, gunmen attacked a convoy of buses carrying workers to the Assa North/Ohaji South gas project. They killed six contract workers and one government security agent. Seven others were injured. My thoughts and those of Shell are with the families who have lost their loved ones. We provided emergency support immediately after the attack and assisted in the investigation. I hope we never again witness such a horrific incident.

Shell Value Their Communities: Despite the security challenges we face, Shell Companies in Nigeria continue to contribute positively to the communities where we do business. Alongside
our long-standing health-care, education, enterprise development, and community-led programs, we have financially supported the purchase of vaccines for Nigeria through COVAX and we have launched awareness-raising and vaccination campaigns.

The highest concentration of direct social investment in 2021 within the Group was made in Nigeria. As a development partner with a strong belief in Nigeria, we will continue to support the country’s aspirations toward achieving the UN’s Sustainable Development Goals.

Shell is making advances within the access-to-energy space. All On, a not-for-profit, impact investment company to which SPDC and SNEPCo have committed around $200 million, has helped renewable energy start-ups to connect 45,000 off-grid customers and aims to increase this to 75,000 in 2022. All On, together with Odyssey Energy Solutions and the Global Alliance for People and Planet also launched a global procurement program for renewable energy
companies to help bring affordable, high-quality solar products to the Nigerian communities most in need.

“On behalf of Shell Companies in Nigeria, I congratulate All On for winning the 2021 impact investor of the year award in Nigeria conferred by the Impact Investors Foundation. I am also very proud to announce the completion of the Oloibiri Health Campus in the Ogbia area of Bayelsa State. Oloibiri holds a special place in the heart of Shell Companies in Nigeria because it is where we discovered oil many decades ago. The campus will be commissioned later in 2022 and includes a primary healthcare facility and a centre for specialist health services.

Shell’s relationship with Nigeria is strong, Shell has announced its intention to review options for its onshore Nigeria portfolio but Shell’s relationship with Nigeria remains strong. We may be changing the content of our portfolio but this is because we intend to focus future investment in Nigeria on deep-water exploration and production, and expanding our gas distribution network for domestic and international customers.

In 2021, the Bonga field’s oil mining lease (OML) 118 and its production sharing contract (PSC) were renewed for another 20 years. This lease underpins our deep-water operations. Its renewal opens up further opportunities for Shell in Nigeria. We also successfully launched the Shell Energy Nigeria business line to expand the gas distribution solutions being championed by SNG. I am confident that this move will extend the efforts of Shell in delivering gas for power and industrial use across the country.

Natural gas is a critical component of Nigeria’s economy and is very significant for the country’s energy transition. The growing global market for LNG is also driving the development of Nigeria LNG’s expansion with the construction of Train 7, which will
increase production capacity by 35% from the current 22 million to 30 million tonnes a year.

Recognition for Shell Companies in Nigeria Shell Companies in Nigeria received a number of accolades in 2021. For example, in May, we were named the International Oil Company with the most impactful Local Content Initiatives at the Nigerian Oil and Gas Opportunity Fair. In December, Nigeria’s Tertiary Education Trust Fund described the consistent contributions of SNEPCo to education in Nigeria as exemplary and worthy of emulation by other corporates.

Looking ahead, I hope that the business environment remains conducive to existing and new investors. I have no doubt that Nigeria, Nigerians, and my colleagues across Shell Companies in Nigeria will face whatever they must with the same compassion, dignity, and resilience that they have always shown, Okunbor concluded.

In addition, Shell Gas B.V. holds a 25.6% shareholding in Nigeria LNG Limited (NLNG) which produces and exports LNG to European and other markets. SPDC and SNEPCo also own All On Partnerships for Energy Access Limited (All On), a not-for-profit company limited by guarantee for the purpose of improving access to energy in Nigeria.

For more than 60 years, Shell has invested in Nigeria’s economy and the Nigerian people. Together, they have built robust oil and gas businesses and contributed to neighboring communities. Shell’s commitment remains strong, even as the content of our asset portfolio changes. Shell also announced a review of our Nigerian onshore oil investments.

Deep-water exploration and production in the Gulf of Guinea, where the renewal of the OML 118 license for 20 years has opened up further opportunities; and Expansion of the gas supply and distribution network within Nigeria and to international markets.

These ambitions align with Shell’s Powering Progress strategy and support Nigeria’s vision to provide reliable, affordable power to its people. In 2021, Nigeria continued to receive the largest concentration of social investment in Shell. Our healthcare and education programs helped thousands more people over the last year. We continue to work to bring energy to off-grid communities through All On, our not-for-profit impact investment company.

We will continue to clean up oil spills, despite the challenges arising from the illegal actions of third parties, such as sabotage and crude oil theft. The clean-up and remediation in the Ogoniland community of Bodo have made solid progress, with around 60% of the area remediated and 300,000 mangrove seedlings planted.

The Powering Progress: Powering Progress sets out Shell’s strategy to accelerate the transition of its business to net-zero emissions. It is designed to create value for our shareholders, customers, and wider society. Powering Progress has four main goals in support of Shell’s purpose, to power progress together by providing more and cleaner energy solutions. It is underpinned by our core values and focus on safety.

It has four main goals: achieving net-zero emissions, powering lives, respecting nature, and generating shareholder value.

2021 Key Developments Financial Sheet: Shell Companies in Nigeria spent $800 million on
contracts with Nigerian-registered companies which is the same level as 2020 spending.

$986 million in corporate taxes and royalties paid to the Federal Government of Nigeria (SPDC $424 million and SNEPCo $562 million), compared with $900 million in 2020.

The SPDC JV, SNEPCo, and SNG spent $33.82 million in direct social investment, compared with $49.4 million in 2020. The decline is largely because, in 2020, significant contributions were made to COVID-19-specific programs supporting communities impacted by the onset of the pandemic.

The SPDC JV, in compliance with statutory requirements, paid $38.7 million in 2021 to the Niger Delta Development Commission (NDDC). SNEPCo and its co-ventures paid $23 million
to the NDDC.

Combined production from SPDC and SNEPCo (Bonga) declined to 493,000 barrels of oil equivalent, compared with 614,000 barrels of oil equivalent in 2020. The decline was largely a result of divestment action and activity curtailment due to heightened security issues in the Niger Delta.

Shell Companies in Nigeria directly employed 2,500 people (of whom 97% were Nigerian nationals) with more than 8,500 contractors supporting operations.

Business Developments: Shell Energy Nigeria was established to focus on gas, power, renewables, and energy solutions for industrial and commercial customers.

SNG, the domestic gas distribution entity of the Shell Energy Nigeria business line, continues to expand and has signed agreements to deliver gas to around 165 corporate customers.

SNG provides gas to more than 130 commercial and industrial customers, at the time of writing. Infrastructure is being built to enable the delivery of gas to new customers.

SNEPCo, its OML 118 partners, and the Nigerian National Petroleum Corporation (NNPC) extended the OML 118 production-sharing contract (PSC) license for another 20 years, further incentivising the development of the OML 118 block and opening opportunities in Nigeria’s deep waters.

NLNG Train 7 early works, including engineering, procurement, and construction activities, have ramped up. SPDC completed the sale of its 30% interest in OML 17 for $533 million.

Shell has announced its intention to reduce its involvement in onshore oil and gas production in Nigeria and will continue to develop its deep-water oil and gas production and its gas supply businesses for domestic use and export.

Social Investment: The All On impact investment company increased the size of its total portfolio of renewable, energy access investee companies from 31 to more than 40, and the All On Hub increased its supported businesses from 41 to 81 ventures.

All On, together with Odyssey Energy Solutions and the Global Alliance for People and Planet, launched the Demand Aggregation for Renewable Technology (DART) program to bring affordable, high quality solar products to communities most in need.

Community Health Insurance Scheme added 8,180 people. More than 85,000 people have been enrolled across the Niger Delta since its launch in 2010. The scheme is a partnership between the SPDC JV, Rivers State Government, and local communities.

The health-in-Motion mobile community health outreach program added 2,451 people.
More than one million people across the Niger Delta have benefited since 2010.

The SPDC JV renewed five Global Memorandum of Understanding (GMoU) agreements to provide secure funding for community-led development programs and also deployed one new agreement. Over $98.6 million was disbursed over the last five years.

The SPDC JV and SNEPCo invested $6.2 million in education programs. More than 2,500 secondary school grants, over 3,200 university grants and 900 Cradle-to-Career scholarship
grants have been made since 2016.

The SPDC JV has delivered the first phase of a $5 million infrastructure project to the Nigeria Maritime University (NMU), Okerenkoko, Warri, Delta State.

The global Shell LiveWIRE entrepreneurship program helped 190 Nigerians through training and grants.

Spills and Clean-up: SPDC JV operational spills: nine1 incidents of more than 100 kilograms of crude oil compared with 12 incidents in 2020. The total volume of 29 tonnes of spilled crude was slightly less than the 30 tonnes reported in 2020.

Spills from illegal activities: 1062 incidents with volume of 3.3 thousand tonnes, compared with 122 incidents in 2020, with a volume of 1.5 thousand tonnes. The doubling of the volume was mainly attributable to one incident, caused by sabotage, which accounted for 2.3 thousand tonnes of crude oil. This was contained and around 90% recovered and returned to the system.

Ogoniland: Clean-up led by the government agency, Hydrocarbon Pollution, and Remediation Project (HYPREP). In 2021, remediation was completed and certified on nine sites; work continues on 11 sites.

Bodo: By the end of 2021, remediation was completed 60% of the clean-up area with around 300,000 mangrove seedlings planted so far out of the required 2 million seedlings that are planned by the end of 2025.

Nigeria is core to Shell’s business strategy, Shell remains committed to Nigeria and its people and has done business in the country for more than 60 years.

Like other multinationals, Shell continually seeks to enhance its portfolio of assets through selective investments and divestments in order to return value to shareholders.

Over the last decade, SPDC has reduced its licences in the Niger Delta by half and in 2021 completed the sale of its 30% interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta. Options for the remaining onshore portfolio are under consideration.

Security issues, sabotage, and crude oil theft in the Niger Delta remained significant challenges to our onshore operations in 2021. We continue to monitor the situation closely and evaluate implications for the integrity of our infrastructure and the sustainability of the SPDC JV’s operations.

Shell also announced their intention to review material portfolio options for onshore Nigeria, in line with our intent to focus future investment in Nigeria on our deep-water and gas positions. The company is in discussions with the Nigerian government and other stakeholders on how this can best be achieved.

Despite the required portfolio rebalancing, which is in line with Shell’s Powering Progress Strategy, Nigeria remains core for Shell and we will continue our investments in deep-water and gas.

Shell Recognition and Awards: In 2021 Shell Companies in Nigeria received numerous awards in recognition of their contribution to the country. Among these are:


2021 – NCDMB NOGOF – The most impactful local content in the upstream category – SCiN

2021 – TETFUND – Tertiary Education Trust Fund – SNEPCo

2021 – SAIPEC – Health Safety and Environment (HSE) Company of the Year – SCiN

2021 – NOG – Women in Leadership of the Year Award – SNEPCo

2021 – FIRS – (Federal Inland Revenue Service) Remarkable Performance in Remittance of the various Taxes in 2021 Tax year – Shell

2021 – FIRS (Federal Inland Revenue Service) One of the best Tax Compliant Organization in Nigeria for 2021 Tax Year – Shell

2021 – NIES – Upstream company of the year 2021 – Shell

2021 – Nigeria International Energy Summit (NIES) Women in Energy award – SNEPCo

2021 – Manufacturers Association of Nigeria (MAN) In recognition of Shell’s contribution to powering industries in Nigeria and for its long partnership with MAN over the years – SNG

Oil & Gas

Fuel: IPMAN Hails FG Over Approval For Private Importers



Fuel: IPMAN Hails FG Over Approval For Private Importers
The Independent Petroleum Marketers Association of Nigeria (IPMAN), has commended the Federal Government for approving the importation of petroleum products by private firms.

Mr. Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community, in charge of Anambra, Ebonyi, and Enugu States, said this while reacting to the development in Awka on Sunday.

The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, on Friday, said private marketers could now import petrol into the country.

Farouk said under the new arrangement, the NNPCL had ceased to be the sole importer of petrol into Nigeria.

“We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give license to any prospective importer.

“The market is now open for everybody that wants to import as far as they meet all the requirements. The NMDPRA will no longer fix prices or release templates for petrol.

“As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said.

Anyaso said this was a positive development and an appropriate response to the demands of marketers and Nigerian masses who had condemned the monopolistic grip of NNPCL on the oil and gas sector for decades.

He said this would create the much-needed competitive pricing environment and allow market forces to demand the price of products.

According to him, “Two days ago, I repeated the call that the Federal Government should issue import licenses to private investigators, I also said it is wrong for the NNPCL, which is a private company, to be the sole importer and determiner of prices.

“I am happy that the same NMDPRA also announced that approval has been given to private importers. This is how it should be in a deregulated Industry.

“The competition that will begin in the coming days will surely ease the pain of high prices of products,” he said.

Anyaso commended the Federal Government for its bold step and called on it to extend the same to refineries to complement the contributions of Dangote refinery when it commenced production.

He said the four existing refineries should be repaired to produce at optimal capacity while licences are issued to more people who could build modular refineries.

He said this was the time to address the problem of Enugu Depot which had been moribund for over 15 years and had made distribution of products in the zone difficult as a result.

“We are appealing that as the government is addressing the issue of supply, they should also address the problem of distribution, Enugu Depot has not functioned for over 15 years, we need the Federal Government to fix it.

“It has not been easy for our members who source products from Lagos, Warri, Calabar and bring by road, the risk, accident, and losses have been too much,” he said.

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Oil & Gas

NNPC’s Post PIA Implementation Strategies To Create Value For Stakeholders



We Will Provide Energy Today And Will Do Tomorrow, Says Mele Kyari
Rashidat Okunlade Writes

For decades, the commercialisation of the Nigerian National Petroleum Corporation (NNPC) was the subject of discussions among critical stakeholders in the oil and gas sector. This was largely because there was hardly any framework for its implementation.

But with the unveiling of the entity in 2021 as a Company and Allied Matters Act (CAMA) firm under the brand name of the Nigerian National Petroleum Company Limited (NNPCL), as encapsulated in the Petroleum Industry Act (PIA), the ground was set for a reformed national oil company that was ready to compete with its peers globally.

Before the passage of the PIA, many stakeholders in the industry had admitted that the old NNPC, has not had an enviable past because of the seeming loss of faith by Nigerians and its partners in its operations. But that perception has since changed with the implementation of the PIA under the leadership of the Group Chief Executive Officer of the NNPC Ltd, Mallam Mele Kyari.

Indeed, under the Kyari-led  management, the 44-year-old corporation has joined the global Extractive Industries Transparency Initiative (EITI). It also declared its first profit in about four and a half decades, released its Annual Financial Report to the public, and has generally been more open to public scrutiny.

With the company now fully transitioned into a commercial entity, stakeholders are now seeing a new NNPC that is ready to do things differently.

For instance, at the just concluded 2023 Upstream Investment Management Services Ltd (NUIMS) Annual Value Assurance Review (AVAR) Workshop, Africa’s richest man and the Chairman of Dangote Group, Aliko Dangote; Chairman of Heirs Holdings Ltd, Tony Elumelu; Deputy Managing Director, Deepwater Asset, TotalEnergies Upstream Nigeria Limited (TUPNI), Victor Bandele; the Managing Director of Shell Nigeria Exploration & Production Company (SNEPCo), Elohor Aiboni and other critical stakeholders expressed their appreciation to the leadership of the Nigerian National Petroleum Company Ltd and the NNPC Upstream Investment Management Services (NUIMS) for the level of collaboration geared towards delivering key projects to unlock value for stakeholders.

AVAR  workshop

The AVAR is a strategic forum where key issues that shape the oil and gas upstream business landscape are reviewed, and the direction is set with the sole objective of guaranteeing short-term success and long-term value is delivered to all stakeholders.

The NUIMS 2023 AVAR is geared towards consolidating on gains for growth in the PIA era, with a laser focus on the ways NUIMS can better attract and manage capital for sustainable growth by emplacing plans to protect, preserve, and promote NNPC Limited’s upstream business objectives.

The outcomes of AVAR will also serve as relevant input to the ongoing efforts by NUIMS to be well-positioned to attract the required investments into the industry.

 Stakeholders’ view

This year’s event has the theme, ‘Consolidating for Growth in PIA Era.’ was attended by the Group Chief Executive Officer of the NNPC Mele Kyari; the Executive Vice President (Upstream), NNPC Adokiye Tombomieye; the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti; the Chairman, Heirs Holding, Tony Elumelu and other top investors in the Nigerian economy.

Speaking at the event, the Chairman, Dangote Group, Aliko Dangote said that the NNPC Limited has what it takes to become the African version of Saudi Arabia’s Aramco, adding that the oil giant can generate billions of dollars in revenue if the right decisions are made.

While stating that the PIA brought the transformation of NNPC from a government establishment to a commercial entity with no recourse to government funding, Dangote said that NUIMS has a critical role to play in unlocking funding to take advantage of the huge opportunities in the sector as well as to actively manage the investments to repay its loans, generate reasonable returns, and fund investments in new opportunities.

“I truly believe that NNPC should be our African Aramco. There is nothing that is impossible. You can make it possible and do not let anything scare you. It is just the same thing with us.  If I tell you about our own story, you will be shocked as to how. It was not only the refinery that we started about six years ago. We had 32 projects that we all rolled out at the same time.

But then, on the way we had lots of hitches here and there where the devaluation of the currency, COVID-19, and challenges of infrastructure set in. If you want to do a real project in Nigeria, you have to look at the infrastructure that we have, because the infrastructure we have is not meant for mega projects. 

We need to look at our infrastructure and see how we can take ourselves to the next level and it has to be driven by NNPC because they are the largest conglomerate and whatever happens to NNPCL, their assets, it actually happens to us either directly or indirectly”, he said.

He stated that if the NNPCL does not perform well, it affects the economy while adding that NUIMS, being an investment arm of NNPCL, plays a critical role in managing the Federal Government’s interest in the oil and gas industry.

“You are a partner in the Joint Venture (JV) assets and the Concessionaire in the Production Sharing Contract (PSC) arrangements. As important as its oversight function is, my expectation in this post-PIA era is that NUIMS should pivot from being overly focused on its role as a ‘watchdog’ to acquiring the mindset of an aggressive Investment Manager.”

The billionaire further said that the NNPCL needs to roll out massive investments in terms of oil and gas to meet demand, adding that there are many off-takers waiting to invest.

Dangote said, “My businesses in Nigeria require 635 million scf of gas per day with further additional demand as we expand capacity. No businessman will leave such an opportunity on the table. Unfortunately, I hardly get 300 million scf per day and there is no clarity as to when the required gas will become available.”

 According to the Chairman of Dangote Group, a good investment manager actively seeks out investment opportunities, assesses them, and takes an investment decision and the NNPCL principal objective should focus on delivering strong returns; growing the investment portfolio, and managing portfolio risks. 

 He pointed out that the NNPC must first look into the cost component of its production as Nigeria has one of the highest break-even prices globally for extracting oil and gas which results in a long payback period.

Dangote said,“Let the NNPCL begin with delivering strong returns, which of course is a function of price and cost. While price in your industry is determined by the market and so clearly outside your control, the same cannot be said about cost. More aggressive cost targets need to be adopted and NUIMS staff rewarded with juicy bonuses if they meet these targets. 

You need to benchmark costs with producers in similar basins and aim to be the lowest amongst your peers. Some existing government policies, as laudable as they may be, also need to be re-evaluated. For instance, we need to strike a delicate balance between encouraging local participation in the oil & gas sector and compromising efficiency and cost.”

The Chairman, Dangote Group, suggested to the NNPCL that the next course of action as a manager should be to grow its investment portfolio explaining that it would reduce the influence of IOCs.

Also speaking at the event, the Chairman of Heirs Holdings Ltd, Tony Elumelu, lauded the NNPC for the effort it made to curb crude oil theft.

According to him, due to the efforts of the NNPC Ltd, Heirs Oil & Gas has witnessed 96 per cent recovery rate.

Elumelu said, “When I listened to the Group CEO speak today, talking about us moving to 2.5 million barrels we challenged him to do more. I believe that it is achievable. From losing 97 per cent of our 50,000 barrels production, interestingly and it will be bad of me to have this platform and not share this here.

That day, I got a call from the GCEO and I thought he was going to kill me for speaking up, to my greatest surprise, he said to me Tony, we are sorry about what is happening, we are doing something about it, it will be corrected.

They worked as a team and the Board of the NNPC, the FG, and the security agencies, and last month our recovery factor was 96 percent. So GCEO NNPC, you have delivered”. 

He added, “Today, we lifted 501,000 barrels of oil bringing our total lifting this year alone to 2.6 million barrels of oil. I am a great beneficiary of the new NNPCL.”

For his part, the Deputy Managing Director, Deepwater Asset, TotalEnergies Upstream Nigeria Limited (TUPNI), Mr. Victor Bandele, said the intervention of Kyari has unlocked fresh 30,000 barrels per day of crude oil from OML 130.

Bandele expressed his deep-felt appreciation for the Group Chief Executive Officer’s patriotic intervention in enabling the deep-water Production Sharing Contract (PSC) to engage the services of Gerry De Souza Drillship to commence the long-due drilling campaign of seven development wells and one exploratory well. 

This assisted in arresting production decline on the asset and unlocking up to 30,000 barrels per day of new oil from the Egina and Akpo fields before the end of the year 2023. 

This will generate more value for stakeholders, improve the capacity utilisation of the best-in-class Egina Floating, Production, Storage, and Offloading (FPSO) Vessel, and ensure the attainment of the desired benefits from the attractive crude oil prices in the market.

He reiterated his confidence in the leadership of NNPC Ltd and applauded the Upstream Investment Managers, NUIMS, under the Chief Upstream Investment Officer, Bala Wunti, for always being a step ahead and setting the pace for innovation in the Nigerian upstream oil and gas industry.

The DMD also announced to the gathering that TUPNI has secured the alignment of all the partners on OML 130 to progress with the lease renewal with a target to close out before the end of May 2023. The lease renewal will pave the way to firm up discussions on the Preowei and Egina West projects lined up by TUPNI and the OML 130 partners to introduce additional volumes to the Egina FPSO.

TUPNI is also on course to hit the milestone of one billion barrels of Crude Oil production on the Akpo field within a period of 15.5 years. He attributed this success to excellent reservoir management and the instrumental role played by NUIMS and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in providing the necessary support.

Bandele, impressed by the objectives of the NUIMS Value Assurance Review, promised to replicate the same in his organization. 

Sharing her thoughts at the event, the Managing Director of Shell Nigeria Exploration & Production Company (SNEPCo), Elohor Aiboni, expressed her appreciation to the leadership of NUIMS on the level of collaboration geared towards maximizing the potential of the deep-water assets and delivering key projects to unlock value for stakeholders.

 Aiboni was full of praise and appreciation for the NUIMS leadership for creating an enabling environment that fosters collaboration among its partners.

 Citing the recent lease renewal, the MD restated SNEPCo’s commitment to growing their assets, willingness to deliver big-ticket projects, and exploiting near-term opportunities to continually grow output volumes by working closely with NUIMS. 

SNEPCo recently surpassed the one billion barrels of crude oil production milestone and is currently outperforming its production target for 2023 raising daily production output from approximately 90,000 BPD to 131,000 BPD.

 Improvements were recorded from the onshore and swamp assets following the launch of the industry-wide security architecture. 

Also, activities in the deep-water space have also picked up contributing to the overall improvement in production output.

Aiboni stated further that there is no reason Nigeria cannot grow its crude oil production output to four million barrels per day, leveraging on the vast array of prolific assets, especially in the deep-water space.

She further expressed her appreciation to the leadership of NUIMS for the level of collaboration geared towards maximizing the potential of the deep-water assets and delivering key projects to unlock value for stakeholders.

Speaking at the event, Kyari said the challenges facing the oil and gas industry globally has made it compelling for the NNPC to come up with more ingenious ways of doing things.

He admitted that there have been challenges with security and underinvestment in recent times, adding that with the passage of the Petroleum Industry Act, the NNPC is better positioned to create value for Nigerians. 

He said, “The crux of the industry is to make sure the upstream industry works. If the upstream works, there would be cash in the country. We are in a cash crunch in the country today, we are in a forex crunch today because the upstream has not gotten to a level where we can have a surplus to support the economy. 

 “And the reason is that we have challenges of security, decarbonization issues, energy transition, and the reluctance of financial institutions to lend. 

 “The practicality of all these is that there is difficulty in having access to capital today and this is very obvious, the whole world is lamenting today and there is an absolute supply gap in gas in the market in the short term and for a while to come and everyone is taking a step backward on what could be done to arrest the situation.  “As a company, NNPC is leading this process, we are required to ensure that production cost is optimum, we have interest in nearly every business in the upstream sector and even in the midstream and our performance determines what happens in the industry. We are in a position to go back to normalcy. 

“Production targets that we have kept over the years of 2 million barrels are realizable but have remained on the PowerPoint and this is the time to take them off the PowerPoint and resolve the insecurity, investment, and financing issues.”

 As a National Oil Company, Kyari said the NNPC must cooperate with its partners to solve the energy challenges facing the country.

 He said it is only through collaborative efforts with its stakeholders and partners that the NNPC can guarantee energy for the nation’s industrialization.

Kyari added, “We can solve the problem of energy poverty in the country, we can also support the rest of the world, particularly West African countries, to resolve the energy crisis that we are facing today. We can also help to resolve the issue of food security and by doing this, we will make more money for the country and businesses make more money. 

 We will invest in power and we are doing it and we believe that at the end of the day, we will create sufficient power for the country so that industries will spring up everywhere and create that prosperity that we desire. 

We have the best workforce that we have anywhere in the world and we have seen many things that they have done. This means that our short term is real, our short term is achievable and as a company, we will satisfy the requirements of our partners and shareholders.

 Our performance will speak for our us and our country and this is what we are focused on doing, we will work with you, we will work with the industry, we will work with our partners, we will work with our shareholders and ultimately, we will deliver value in a short time of three years and this is sufficient to bring all the value on the table. 

We are getting all the support from the security agencies to make sure this works and we are getting maximum cooperation and we will overcome the security challenges and this company will deliver value for all of us.”

In his speech at the event, Tombomieye said the enactment of the Petroleum Industry Act (2021) came with so many expectations for NNPC Limited, which has been transformed into a fully commercial entity. 

He said the oil and gas reserve base in Nigeria is enormous as available data indicate that the current crude oil and condensates production of 1.210 million barrels per day as of April has fallen short of the desired aspirations of 1.395 mmbopd for NUIMS.

According to him, additional efforts will be required to meet the objectives of growing reserves, oil and gas production, and monetizing the subsurface resources.

He said, “There is no gainsaying that several challenges have be-devilled our operations over time, ageing facilities, obsolete technologies, evacuation challenges, high production cost, inadequate workforce, inadequate funding.

“NUIMS has consistently demonstrated the zeal to overcome some of these challenges, as depicted in the recent strides for the emplacement of the industry-wide Security architecture, which has assisted in restoring production in some corridors.

“We are no longer in the PowerPoint era, and you must channel your energy towards reducing costs and growing production and revenue. Nigerians are watching us, and we must remain accountable to them.

“The Board and Management of NNPC Limited have tasked us with specific deliverables. We have executed the KPIs with timelines on when to deliver and can no longer afford to return with excuses to our principals for nonperformance. 

“Let us consider ourselves partners in progress, and every contribution is for the collective good of the Company. Knowing fully that the strength of a chain is at its weakest link, we must strive to support each other on this journey of making the Upstream Directorate the shining light of the Company as it has always been.”


Through the event, it is evident that while the NNPC Ltd is hungry for even more success, it has remained committed to supporting all its partners to achieve shared prosperity. 

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Oil & Gas

Seplat Energy Wins Two Awards At The NIES 2023 For Strong Gas Business



Seplat Energy wins two awards at the NIES 2023 for strong gas business

… Our commitment to Nigeria’s Decade of Gas mantra unwavering, says Seplat Energy

Seplat Energy Plc, leading Nigerian independent energy company, says its commitment to the Federal Government’s Decade of Gas position remains firm and unwavering. The energy company said it will continue to develop Nigeria’s gas resources to accelerate the replacement of diesel and biomass and support economic growth through the supply of reliable, low cost energy.

Seplat Energy drove these narratives at the 6th edition of the Nigeria International Energy Summit (NIES) which was held at the International Conference Centre (ICC) Abuja from April 16 to 20, 2023.

The NIES 2023 was not only a remarkable outing for Seplat Energy as the company also picked up two major wards bordering on its positions as a Nigerian Domestic Gas Ambassador in its support to the Nigerian Gas Association and for its outstanding commitment to Nigeria’s Decade of Gas mantra.

Mr. Effiong Okon, New Energy Director at Seplat Energy, who represented Mr. Roger Brown, Chief Executive Office, Seplat Energy, said at the continental level, Africa needs access to energy as five-fold increase in investment is required to reach United Nations (UN) Sustainable Development Goals (SDG) 7 by 2030.

Seplat Energy wins two awards at the NIES 2023 for strong gas business

According to him, by 2030, 50 per cent of the global population without access to electricity will be concentrated in seven countries, of which Nigeria is inclusive.

 Speaking during a Keynote dubbed ‘Africa at Heart of the Global Energy Mix: What’s Ahead in Nigeria’, and a panel session on ‘Improving Gas to Power, Gas to Industries, Gas for Cooking, Gas for Export’, Mr. Okon explained that achieving Africa’s energy and climate goals means more than doubling energy investment this decade, adding that the goal of universal access to modern energy calls for investment of USD 25 billion per year.

He said: “The opportunity is massive for our industry. With a future population of more than 2.5 billion, Africa represents a huge investment opportunity across the entire energy sector; and Seplat Energy will continue to develop Nigeria’s gas resources to accelerate the replacement of diesel and biomass and support economic growth through the supply of reliable, low cost energy.”

The conference-themed, Global Perspectives For a Sustainable Energy Future, had various stakeholders in the Nigerian Energy value-chain in attendance.

Consolidating on its strong stance on the Federal Government’s Decade of Gas Mantra, Mr. Okon explained that Seplat Energy is currently a leading supplier of processed natural gas to the expanding Nigerian domestic market; with working interest gas volumes for the 2022 business year averaging 112.3 MMscfd (2021: 107.9 MMscfd), a contribution of 44 per cent of the Group’s total production volume on a barrel of oil equivalent (boe) basis.

About 43 per cent of Africa’s population lack access to electricity most of them in sub-Saharan Africa with about 970 million Africans without access to clean cooking sources. Additionally, Africa’s share of global oil and gas production has declined from 2010 figures while energy demand continues to rise.

In IEA’s Sustainable Africa Scenario, Africa’s electricity demand increases by 75 per cent to 2030. Renewables, mainly solar PV, account for most new capacity additions due to ever‐declining costs driven by rapid global uptake.

IEA estimates that the prospects for oil and gas production would depend on the pace of global energy transition. However, the outlook for natural gas remains resilient compared to oil increasing in the near term to 2030.

Africa has the world’s lowest levels of per capita use of modern energy and with projected population and income growth, demand for energy is expected to expand by a third between 2020 and 2030.

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