The president said NNPC had reached “a significant milestone” after receiving the certificate of incorporation at his office, adding that the firm would have to compete with global peers. Alhaji Abubakar, the registrar of the country’s Corporate Affairs Commission, which registers companies, NNPC’s capitalization stood at 200 billion naira ($485 million), one of the country’s biggest. He did not provide further details.
Last month, NNPC chief Mele Kyari said in a TV interview with Bloomberg the company could consider an initial public offering within three years.
Source: Offshore Engineer
https://www.oedigital.com/news/491183-nigeria-incorporates-state-oil-firm-with-485m-capitalization
Speaking at a conference in Cape Town, Kola Karim, CEO of Shoreline Energy International said he has noticed a positive shift in community engagement with the Act and changes it has wrought in the industry. Kola also noted that oil and gas business in-country makes up almost 90% of Nigeria’s use of foreign exchange.
“When you talk of ranking and importance regarding the government of Nigeria, it is the industry. Now with the PIA, the world knows it is open for business. What we have seen is the level of engagement being more robust and the value proposition is becoming clear in the markets,” said Karim.
Heine Melkevik, former Managing Director Equinor Nigeria and current Managing Director Business Development, Alta Trading UK Limited, said the predictability the Act brings to the sector means investors can model what kind of investment different projects need.
While Melkevik thinks investment into renewable energy is necessary, he pointed out the level of industrialisation the continent needs to undergo in order to create a manufacturing sector, needs the baseload stability that oil and gas-powered plants can provide, and he sees space for both kinds of projects. “It shouldn’t be either-or, transition to renewables or oil and gas. The reality is sub-Saharan Africa needs more investment in oil and gas.”
The passage of the PIA creates frameworks to provide clarity for return on investments on projects; ease of business has been more clearly regulated; access to licencing has been restructured and simplified; and timelines for licencing are no longer at the discretion of authorities but independently regulated. The conversion contract – a process for companies to change their contracts to be governed by the new laws – is also clearly spelled out. Existing contracts will be honoured under old regulations until their licencing expires and any new contracts will be written under PIA rules.
Olakunle Williams, CEO of QSL Gas and Power said there are obvious implications for investment opportunities for the country’s natural gas sector. “The PIA is a good piece of legislation. What we need to do is talk about developing the energy mix in Nigeria that allows natural gas to be developed and a way is found to transition to cleaner energy.
“We are disproportionately affected by climate change, but we cannot abandon our natural resources. Even globally, this is a challenge. Nigeria and African countries need to develop our manufacturing sector. So how do we develop knowledge-based ecosystems and set up the right energy mix,” asked Williams.
He sees the opportunity for natural gas to be used to address Nigeria’s baseload needs and Akinwole Omoboriowo II, CEO of Genesis Energy, believes there is sufficient capital in-country to create the pipeline. “My encouragement is that the law has been passed, there is sufficient capital in the country. There are a lot of hotspots and there are more opportunities than issues,” said Omoboriowo.
Source: ESI Africa
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The bill has been in the works since the early 2000s, but the sensitivity of potential changes affecting Nigeria’s key source of revenue and foreign exchange has undermined all previous attempts at an overhaul. Major fuel marketers and other observers had been alarmed by a provision that they said could give Africa’s richest man, Aliko Dangote, an effective monopoly on fuel sales in Nigeria while the communities where oil and gas is produced had pressed for a larger share of oil money.
Analysts say the bill’s approval this year was essential to attracting a shrinking pool of capital for fossil fuel development. Amendments to the package allowed a series of concessions for oil companies to lure investment.
Source: Offshore Engineer
https://www.oedigital.com/news/489887-nigeria-s-president-buhari-signs-oil-overhaul-bill-into-law
The Executive Secretary of NEITI Dr Orji Ogbonnaya Orji disclosed this at the launch of the global Opening Extractives programme in Abuja. Deputy Director/Head Communications & Advocacy, Mrs. Obiageli Onuorah disclosed this in a press statement yesterday. The statement explained that “Opening Extractives is a programme that will support Nigeria to implement reforms geared towards the disclosure of the ownership of extractive companies.”
The NEITI Boss explained that “The NAMS project will transit NEITI information/data gathering process from analogue to an automated/digital process, improving efficiency in time and resources while reducing human interference and error in the audit process.” He also stated that the NEITI 2020 Reports for the oil, gas and solid minerals have reached the final stages of completion and will be ready for release by the NEITI Board before the end of the year.
The statement added that the on-going Fiscal Allocations and Statutory Disbursement Report that tracks revenues receipts and utilization in resource-rich states and statutory recipients for the period 2016 -2019 will be released next month. Dr Orji further explained that “establishing a publicly accessible register of beneficial owners cannot be the end to the campaign against ownership secrecy.
Making the registers count through constant interrogation, update and utilization of data and information contained in these registers to demand accountability are critical to the success of this campaign. Also important is the need to constantly build the capacity of state and non-state actors that are involved in this work to enable us achieve the desired outcomes”, he emphasized.
The Chief Executive Officer of the newly created Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Mr Gbenga Komolafe while delivering his Commission’s statement of commitment to the programme commended the global Extractive Industries Transparency Initiative (EITI) and NEITI for ensuring transparency in the extractive sector. Komolafe explained that NUPRC has created the beneficial ownership register for the oil and gas sector and will ensure compliance by all will build public trust, public investment confidence and create a fair market environment in a manner that will help businesses to manage risk especially under the new Petroleum Industry Act regime.
He assured stakeholders that NEITI remains committed to the delivery of its mandates in Nigeria’s oil, gas and mining sectors through effective implementation of EITI Standard and the provisions of the NEITI Act 2007. He said: “We will continue to work with all stakeholders – government, companies, civil society, media and development partners in this direction for the benefits of our country and her citizens.”
The Chairman stated. The Minister of Finance, Budget and National Planning Dr (Mrs) Zainab Ahmed who delivered the keynote address and launched the Opening Extractives programme conveyed the Federal Government’s unequivocal commitment and support towards the implementation of the global Opening Extractives programme in Nigeria.
Mrs Ahmed whose speech was delivered by the Minister of State, Budget and National Planning, Prince Clem Agba, explained that “Nigeria’s participation and strong support to the global launch of the Opening extractives has shown its determination and resolve to imbibe and implement the principles of Opening Extractives in the country.According to her, “Opening extractives is expected to support the Nigerian government to strengthen its management of the nation’s natural resources, increase trust within the extractive sector and ensure that benefits of natural resources wealth is felt by our people.‘From the plan laid out for the programme, in the next five years, government, companies and civil society actors would have greater access to and use of comprehensive and reliable information about the ultimate owners of extractive industries facilitated through opening extractives,” he said.
Ahmed noted that “the EITI and its partners have vital role to play in supporting countries to adopt international best practices that have been benchmarked while allowing individual countries relate to their contextual realities”
The global EITI Executive Director, Mr Mark Robinson who participated virtually told participants that enhancing beneficial ownership disclosure can contribute to strengthening natural resource governance in Nigeria in line with the government’s agenda to fight corruption, improve domestic revenues and attract investment. He explained that the goal of Opening Extractives which is jointly implemented by the EITI and Open Ownership is to ensure that government, industry and civil society actors have greater access to reliable information on the ultimate owners of extractive companies, thus enabling stakeholders to address governance risks related to hidden ownership and to maximise revenues from the extractive industries.
Permanent Secretary, Ministry of Mines and Steel Development and Member NEITI Board, Dr Oluwatoyin Akinlade in the Ministry’s statement of Commitment stated that her Ministry and all the agencies under its supervision have since keyed into implementing Beneficial Ownership transparency in the mining sector which is serving as a tool for effective tax collection and domestic resource mobilisation. Dr. Akinlade affirmed that beneficial ownership reporting is already yielding positive results with the Mining Cadastre Office recording a 150% increase in its license renewal processes between January and May 2021 alone as a result of the initiative.
Beneficial Ownership disclosures which was launched globally and domesticated today in Nigeria has the capacity to promote effective governance, tax system, tackle corruption and illicit financial flows, support fair and open markets and strengthen corporate accountability. Currently, over a hundred and ten countries have made commitments to implement beneficial ownership transparency and over thirty countries have so far published beneficial ownership data.
Source: The Nation
https://thenationonlineng.net/neiti-to-digitalise-oil-gas-audit-by-december/
An industry research by Mordor Intelligence had noted that the market for oil and gas upstream in West Africa would register a growth of approximately 6.7 per cent between 2020-2025, adding that crude oil production for the West African region is expected to record growth of approximately 9.63 per cent and natural gas production at approximately 5.15 per cent.
With oil price rebalancing way above pre Covid-19 level, countries like Nigeria had indicated interest to increase output to about four million barrels per day on the backdrop of new legislation. Oil Price had similarly projected steady exploration across the continent as Italian oil giant Eni looked optimistic with discovery in the Ivory Coast. The discovery in the CI-101 block is reportedly a major find in the last two decades.
Côte d’Ivoire had also announced a major offshore oil and gas discovery, following initial exploration success in 2014 as oil majors took advantage of a 2019 licensing round, which led to the sales of exploration blocks standing at about $185 million. Similarly, a discovery of about two million barrels of oil and 2.4 trillion cubic feet of gas by Eni increased Ivory Coast’s proven reserves, which previously stood at around just 100 million barrels.
While Senegal is also making history after a series of projects came on board from 2014 and 2017, discoveries of one billion barrels of oil and over 40,000 billion cubic feet of gas remained an elixir for the country. There are also existing prospects in Mauritania, The Gambia, Guinea-Bissau, and Guinea-Conakry (MSGBC) beginning from 2022. This is coming on the backdrop of the Greater Tortue Ahmeyim LNG gas project, expecting to produce 2.5 million tonnes of LNG yearly. Tanzania talks have been ongoing to start development on the country’s LNG industry, expected to materialize in 2023 with an estimated 57 trillion cubic feet of gas reserves.
Source: The Guardian
https://guardian.ng/energy/nigeria-others-may-realise-7-per-cent-growth-oil-gas-sector-despite-challenges/
“The donations are aimed at strengthening advanced practical teaching and research in subsea engineering to give the students the required skills and competences for entry level jobs in the oil and gas industry,” Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Elohor Aiboni, said last Thursday at a ceremony to hand over facilities to the university.
The facilities, valued at over $700,000, are in alignment with the Human Capacity Development Guideline of the Nigerian Content Development and Monitoring Board (NCDMB). Aiboni, represented by SNEPCo’s Social Investment Manager, Dr. Gloria Udoh, expressed optimism that with the level of investment by NNPC and SNEPCo in deep-water training via the establishment centres of excellence and donation of cutting-edge information and communication technology centres, among others, Nigerian oil and gas industry would surpass its local content aspiration earlier than projected.
“This investment anchored on the maintenance of subsea infrastructure on Nigeria’s pioneer deep offshore field, Bonga, is expected to develop and upskill the cognitive and technical abilities of students who pass through the Offshore Technology Institute for the ultimate benefit of our industry and of our country,” Aiboni added.
With the new laboratory and software packages, according to Aiboni, the Offshore Technology Institute is positioned to deliver effective training in engineering design; construction and installation of offshore and subsea structures; computer simulations; civil and construction tests; 3D printing/engravement capability; Measurement/Metering Technology and Robotics; Alternative Energy Technologies; and Data Acquisition Learning System.
Vice Chancellor, University of Port Harcourt, Professor Onwunari Georgewill, commended NNPC and SNEPCo with its co-venture partners for their goodwill to the university and particularly to OTI and canvassed more areas of collaboration between the university and its industry partners. Prof. Georgewell said, “This project’s completion is timely because it latches on to the university’s leadership philosophy, which focuses on advancing education through an integrated learning environment to produce industry-ready university graduates and workforce.
“The current administration of the university places a lot of emphasis on university and industry collaboration and partnership. This donation will therefore enhance the achievement of the postgraduate degree-awarding Offshore Technological Institute in the practical context.”
Executive Secretary of NCDMB, Mr. Simbi Wabote, described the human capital initiatives of SNEPCo as commendable. “I commend your remarkable and consistent collaboration and partnership with the NCDMB towards the development of in-country capacities and capabilities.” Represented by NCDMB General Manager, Corporate Service and Logistics, Mr Halilu Abdulmalik, Wabote said, “Your Nigerian content initiatives are consistent with the objectives and aspirations of NCDMB’s 10-year strategic roadmap, and we hope that necessary adjustments will be made to the curriculum to ensure optimal utilization by students in the university community.”
With the theme, “Optimising gas utilisation and energy transition for sustainable development,” the parley had in attendance experts in oil gas from across Nigeria, including Managing Director of Shell Nigeria Gas Limited (SNG), Ed Ubong; Principal and Chief Executive of Petroleum Training Institute (PTI), Effurun, Dr. Henry A. Adimula; General Manager, Joint Venture Operations in NAPIMS, Atuchi Martina; Profs. Wumi Iledare, I.A. Mohammed-Dabo and Abubakar Sambo.
The NNPC boss said optimising gas utilisation in Nigeria requires appropriate energy and gas policies, multi-stakeholder collaboration, sufficient investment and innovative financial mechanisms, adequate gas production and supply in tandem with demand, while leveraging technology, provision of adequate gas infrastructure and facilities.
Others, according to Kyari, are boosting sectoral gas utilisation through expansion and integration of domestic/regional power grids, growing the gas markets like autogas/natural gas vehicles, collaborative efforts and partnerships between stakeholders, driven by enabling policies and favourable business environment. He stressed that educational institutions have a role to play, tasking them to also evolve as energy landscape. He said: “As we all know, Nigeria has been blessed with natural gas resources in addition to oil, and it currently has a reserve of 206TCF.” This is enough to support developments such as new gas-fired power plants and more than enough to make gas a viable fuel for existing and new industrial facilities.
“In recognition of this fact, the government has aptly termed this period the ‘Decade of Gas.’ “The Nigerian energy transition is anchored on the use of gas as the heart of the transition which is the first step in the journey. Several analyses and projections show that oil and gas still remain a key component of the global energy mix. Therefore, we must ensure an equitable energy transition which must be inclusive, fair and take into cognisance the reality of our economy.”
Kyari listed the benefits of sustainable gas utilisation to include economic growth and stability through employment and curtailment of inflation, growth in industries and manufacturing sector and feedstock for methanol fertilisers and other petrochemicals. Others are cleaner source of energy, reduced deforestation and attainment of net zero emission targets.
Source: The Guardian
https://guardian.ng/news/gas-crucial-to-nigerias-energy-security-nnpc-insists/
Salim who was represented by the Group Head Chemtech, SON, Mrs. Theresa Ojomo, at the batch B Technical Committee (TC) meeting for Corrosion Inhibition Standards at the SON Ogba laboratory complex, Lagos, also stated the need to harmonise practices in various sectors of the economy.
He added: “This Technical Committee meeting is for the adoption of 35 ISO Standards for Nigerian use and its benefits are enormous for the Nigerian Oil and Gas Industry. A total of 35 standards were adopted and they include, ISO 3233-1 2019 part 1-3 paints and varnishes Determination of percentage volume of non-volatile matter, IS0 19097-1 2018 part 1 -2 Accelerated Life Test method of Mixed Metal Oxide Anode for Catholic Protection, ISO 13847: 2013 Petroleum and natural gas industries- pipelines transportation systems to name but a few.”
He added that the purpose of the TC meeting was to capture details on standard requirements for metal corrosion inhibition, enhance regulation, certification, and speedy service delivery in the sector, thereby adding value and generating revenue for the economy
The SON Boss acknowledged and appreciated the dedication of the Chairman, Vice-Chairman of the working group, the Nigerian Corrosion Association, and other stakeholders present at the meeting, stressing that all the standards adopted are expected to be forwarded for approval by the Nigeria Standard Council for the certification of professionals in the sector and by extension foster trade as well as strengthen the national capacity to benefit from trading in standard products under the African Continental Free Trade Area (AFCFTA).
Source: This Day
]]>New Standards for Nigeria’s Oil and Gas Sector Underway Says SON