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Tag: Crude oil

  • Crude oil production rises by 31,629b/d

    Crude oil production rises by 31,629b/d

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said crude oil production increased by 31,629 barrels per day (b/d) from 1.4mb/d in May 2024 to 1.5mb/d in June 2024. This was contained in its June 2024 Oil Production Status Report that the Commission released on its website.
    The report is a reflection of an unstable oil production as the figures keep fluctuating on monthly basis. There has been neither a steady decline nor a steady increase in production in 2024.
    While the country produced 1.4 1mb/d in April, output was 1.4mb/d in March; it was 1.5mb/d in February and 1.6mb/d in January. From the record, in the month under review, the country’s output rose by 31,629b/d over the 1,468,579 produced in May 2024.
    Nigeria has been grappling with crude oil theft, illegal refining, and pipeline vandalization.
    The organised crime has taken a toll on its monthly production, culminating in output fluctuation.
    Last Friday, the Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, revealed that the Federal Executive Council has awarded $21 million contract for the metering of 187 flow stations in the Niger Delta.
    The measure, he said, will lead to proper accountability of production and export in the industry. He also announced that the council also approved a contract for advanced cargo, which will track the movement of crude oil right from loading to final destination.

    The two contracts are billed for completion in 180 days, he said. His words: “One of the key approvals by the Federal Executive Council on Wednesday has to do with awarding a contract for the metering of our 187 flow stations across the Niger Delta region of Nigeria by the NUPRC.

    Read Also: Nigeria blessed to have Kalu lead constitutional amendment – Reps Deputy spokesperson

    “As part of our steps to ensure that we have proper accountability, the Federal Executive Council approves the metering of all our production.

    “We have 187 flow stations in the country, metered across the Niger Delta area, and there was a contract awarded for us to meter all the flow stations so that we will be able to properly account for what we produce and what we export.

    “The second key issue is what we call advanced cargo, as part of the steps towards ensuring that we account for what we produce, and then Nigerians getting the maximum value for what we produce.

    “The second memo that was approved by the council has to do with what we call advanced cargo, which means we are awarding a contract to a company that will provide the technology within 180 days, the same period, to enable us to know from the point of loading of every cargo of crude oil that’s loaded in Nigeria up to the point of destination. That is why I call it advanced cargo.”

    “So, the Federal Executive Council on Wednesday also, you know, approved a memo, and awarded a contract to be delivered within 180 days, you know, to provide the software also by the NUPRC, to ensure that we in Nigeria, you know, can monitor what is loaded from our terminals up to the final point of destination.”

  • Fed Govt to reduce cost of crude oil production below $20/b

    Fed Govt to reduce cost of crude oil production below $20/b

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rolled out measures to reduce the cost of crude oil production to less than $20 per barrel, The Nation learnt at the weekend.

    According to a document entitled: “Outlook for the Upstream Oil and Gas Sector of the Nigerian Oil and Gas Industry for 2024 and the Near Term (2024-2026), which our Abuja correspondent obtained, the sub-optimal level of crude oil production in the country is between $25 and $40/ barrel.

    The document, which the Commission’s Chief Executive, Gbenga Komolafe, authored, noted that NUPRC will set up a framework for crude oil and gas transportation.

    The NUPRC boss said: “In accordance with the commercial regulation mandate of the Commission as enshrined in Section 4 of the Petroleum Industry Act (PIA), the Commission would, in 2024 and the near term, pursue strategies aimed at optimising the unit cost of production for oil and gas by driving the reduction of the current average unit cost of production in all terrains to below $20 per barrel, in the near term from current sub -optimal levels of $25-$40 pet barrel.”

    To achieve the plan, the commission, said Komolafe, has not only set up a framework for oil and gas transportation and/or handling costs based on a standardised tariff template/model, it has also planned to implement an open access regime for upstream oil amd gas pipelines and ancillary facilities.

    The document also noted that the commission has planned to incentivise investment in oil and gas infrastructure to boost domestic delivery and stimulate the deregulated domestic gas market through the ease of administrative approval processes.

    Read Also: Banks await CBN’s decision on submitted recapitalisation plans

    NUPRC has also planned to operationalise the Host Community Development Trust Fund(s) development actions to engender social inclusion and commitment to protect oil and gas facilities and ensure uninterrupted operations, thereby eliminating cost-community agitations and disruptions.

    The document reads in part: “Activate the Environmental Remediation Fund Administration Regulations 2023 (currently awaiting gazetting). The commission will diligently implement the regulations to address the environmental impacts of oil and gas operations during the period.

    “Agree on a protocol with the Nigerian Content Development and Monitoring Board (NCDMB) to ensure the implementation of the Nigerian Content regime does not escalate costs.’’

  • Crude oil reserves hit 37.50 billion barrels

    Crude oil reserves hit 37.50 billion barrels

    Nigeria’s crude oil reserves rose from the 36.96 billion barrels (bb) to 37.50bb within a year, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said yesterday.

    The natural gas reserves also increased from 208.83 Trillion Cubic Feet (TCF) to 209.26TCF within the same period.

    The records are contained in the January 2023 to January 2024 update given in Abuja yesterday by NUPRC Chief Executive Officer (CEO) Gbenga Komolafe.

    He attributed the increase in the reserves to production from some of the marginal fields in the country and the several initiatives of the commission.

    The NUPRC boss said: “The brown fields and marginal fields, some of them, have started producing and contributing to our national oil and gas reserves.”

    According to him, the data shows the level of hydrocarbon capacity the nation is endowed with.

    On the template for domestic crude oil supply obligation, Komolafe said that in compliance with the provisions of Section 109(2) of the Petroleum Industry Act (PIA), 2021, the commission, in a landmark move, has developed a template guiding the activities for Domestic Crude Oil Supply Obligation (DCSO).

    He recalled that in conjunction with relevant stakeholders from Nigerian National Petroleum Company (NNPCL), Upstream Investment Management Services (NUIMS), representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria (CORAN) and Dangote Petroleum Refinery, the commission came up with the template for the buy-in of all, in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries.

    Komolafe said the strategic initiative aligns with the policy of the current administration and the declaration of President Bola Ahmed Tinubu that Nigeria is ready for business.

    He added that President Tinubu, as part of his administration’s fiscal policy vacated barriers to investment in the oil and gas sector.

    Komolafe said the development aligns with Nigeria’s commitment to bolstering domestic refining capacity and ensuring the   sustainability of its oil industry.

    He said: “The template provides a transparent framework aimed at fostering collaboration among stakeholders for a thriving energy sector.

    “It is therefore my pleasure to unveil the template for DCSO compliance. With this development, the second half of 2024 is poised to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria.”

    Read Also: EFCC arraigns five for illegal crude oil deal

    Asked whether the template took decision on the currency of transaction of crude oil to domestic refineries, he said according to the PIA, the parties: refinery and crude oil producers are to agree on the currency of transaction whether naira or dollar.

    He said the price of crude oil, being an international commodity, is determined as such.

     Komolafe explained that no legitimate crude oil shipped outside Nigeria could be stranded because every official consignment has a designated destination.

    He was responding to why there is shortage of crude for domestic refineries while some crude oil bearing vessels were stranded on the high seas.

    Crude oil allocation, he noted, is based on the allocation request from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to the commission and the actual capacity of producers.

  • Nigeria’s crude oil reserves hit 37.50bb

    Nigeria’s crude oil reserves hit 37.50bb

    Nigeria’s crude oil reserves increased from 36.96 billion barrels (bb) on January 1st, 2023 to 37.50bb on January 1st, 2024.

    Besides, the country’s Natural Gas reserves rose from N208.83 trillion Cubic Feet (TCF) on 1st January 2023 to 209.26TCF on January 1st 2024.

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive Officer, Engr. Gbenga Komolafe broke the news to reporters in Abuja on Monday, April 15.

    Read Also: Why local refineries are yet to produce petrol, by CORAN

    He attributed the increase in the reserves to production from some of the marginal fields in the country.

    The NUPRC Chief Executive said several initiatives of the commission were accountable for the feat.

    He said: “The brownfields and marginal fields, some of them, have started producing and contributing to our national oil and gas reserves.”

    According to him, the data indicates the level of hydrocarbon capacity the nation is endowed with.

    He described the declaration as positive data for the nation.

    Details shortly…

  • Nigeria’s crude oil receipts under threat as buyers favour Angola

    Nigeria’s crude oil receipts under threat as buyers favour Angola

    The nation’s oil exports may be facing a significant hurdle as a decline in European demand creates a buyer’s market.

    This is coming at a time the nation is grappling with oil theft and needs a strong export market to bolster its revenue.

    Nigeria’s crude for May loading has been very slow to find buyers so far, with more than half of the scheduled cargoes yet clear.

    More than 30 of the nation’s cargoes are still looking for buyers, according to traders specializing in West African crudes. A total of at least 53 are scheduled to load from Nigeria next month, according to data compiled by Bloomberg. Most of the consignments are one million barrels.

    “Capacity is offline at some typical destinations for Nigerian crude such as Spain’s San Roque refinery and Italy’s Sarroch plant. Facilities that have halted capacity for work also include Shell Plc’s Pernis refinery near Rotterdam, Europe’s biggest plant,” Bloomberg said.

    The country’s crude cargoes can be openly traded into either Asia, Europe or even the US, making the pace of sales a closely watched market detail.

    Demand for Nigerian oil has been curbed by heavy refinery turnarounds in Europe that created an excess of April barrels going into the current May trading cycle, the people said.

    Competitive rival producers in the Mediterranean have also cut into Nigeria’s sales, the people said.

    The West African country’s sales also have to contend with higher freight costs and premium prices for more-immediate supplies.

    By contrast, sales of Angola’s May-loading crude have been fairly steady, with only five or six out of the 34 planned shipments still available.

    Read Also: Nigeria’s crude oil output dips three straight months

    The country’s crude benefited from good demand from buyers in Asia like China and India, the people said. The International Energy Agency also cited strong demand for Angolan barrels in India in its monthly report.

    Also, the report said Mediterranean refiners can choose to skip Nigerian supply in favour of “cheap North African barrels that ship more quickly to the region, or they can process some of the large volumes of US West Texas Intermediate crude that have been arriving in Europe in recent months.”

    The situation is further compounded by the specific challenge of finding buyers for Nigerian oil. Traditionally, France has been a major importer of Nigerian crude, averaging roughly 110,000 barrels a day over the past year. However, due to the nationwide French strikes and a decline in overall crude imports, this demand has plummeted.

    This struggle to find buyers for its oil could have a negative impact on Nigeria’s economy. The nation relies heavily on oil exports as a major source of revenue for its national budget. A decline in sales volume or price could lead to a significant shortfall in government income.

  • Nigeria’s crude oil output dips three straight months

    Nigeria’s crude oil output dips three straight months

    • Currently 1,438,129b/d; 4,621,409b/d produced in Q1 2024

    Nigeria’s total crude oil and condensate production has declined for three straight months from January 2024 to 1,438,129b/d in March, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    The commission broke the news in its document tagged “Crude Oil and Condensate Production 2024.

    According to the data that it released at the weekend, the country produced

    1,539,609b/d of crude oil and condensate in February 2024.

    NUPRC noted that in January 2024, Nigeria’s crude oil and condensate output was 1,643,671b/d.

    For the March production, the commission explained that the country recorded 1,230,513b/d crude oil, 64,113b/d blended condensate, and 143,498b/d unblended condensate, totalling 1,438,129b/d.

    The document noted that in the first quarter of 2024, Nigeria’s total crude oil and condensate production was 4,621,409b/d.

    Meanwhile, the Minister of State for Petroleum Resource (Oil), Sen. Heineken Lokpobiri, on Friday blamed the crude oil production in the first quarter 2024 (Q1 2024) on challenges with the Trans Niger Pipeline and the maintenance that some oil companies carried out.

    The explanation was contained in the  statement by his Special Assistant, Media and Communications, Nneamaka Okafor, issues from Abuja.

    According to the statement, Lokpobiri is intensifying efforts at restoring the production to previous level of 1.7million barrels per day and also exceed it.

    The statement noted that “In response to recent concerns regarding a shortfall in oil production in Nigeria during the first quarter of 2024, the Minister of State for Petroleum Resource (oil), Sen. Heineken Lokpobiri,  assures that measures are being taken to address the situation to, not only restore production to previous levels, but to also increase it.

    “The minister clarifies that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some Oil companies operating in Nigeria.”

    Read Also: Nigeria’s crude oil output dips to 4,887,623b/d

     The Minister is also pleased to announce that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days.

     He anticipates that Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) prior to these developments, will soon be restored.

    Furthermore, the Ministry of Petroleum Resources is actively engaged in policy evolution aimed at maximizing the utilization of all available wells in Nigeria. This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilize the nation’s foreign exchange reserves. The increased revenue will also empower the government to fulfill its commitments in providing essential infrastructure, as outlined in the 2024 budget.

    The Minister further assured of renewed hope as Nigeria navigates through these challenges, while urging all to remain committed to ensuring the sustainability and growth of Nigeria’s oil sector, which plays a crucial role in driving the nation’s economy.

  • Nigeria’s crude oil output dips to 4,887,623b/d

    Nigeria’s crude oil output dips to 4,887,623b/d

    Nigeria’s total crude oil and condensate production has declined for three straight months from January 2024 to 

    1,438,129b/d in March, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    The commission broke the news in its document tagged “Crude Oil and Condensate Production 2024.

    According to the data that it released at the weekend, the country produced 1,539,609b/d of crude oil and condensate in February 2024.

    NUPRC noted in January 2024, Nigeria’s crude oil and condensate output was 1,643,671b/d.

    For the March production, the commission explained that the country recorded 1,230,513b/d crude oil, 64,113b/d blended condensate, and 143,498b/d unblended condensate, totalling 1,438,129b/d.

    The document noted that in the first quarter of 2024, Nigeria total crude oil and condensate production was 4,621,409b/d .

     Minster of State for Petroleum Resource (Oil), Sen. Heineken Lokpobiri,  blamed the crude oil production in the first quarter 2024 (Q1 2024) on challenges with the Trans Niger Pipeline and the maintenance that some oil companies carried out.

    The explanation was contained in a statement his Special Assistant, Media and Communications, Nneamaka Okafor, issues from Abuja.

    According to the statement, Lokpobiri is intensifying efforts at restoring the production to previous level of 1.7million barrels per day and also exceed it.

    Read Also: Why Nigeria recorded crude oil production shortfall – Minister

    The statement noted: “In response to recent concerns regarding a shortfall in oil production in Nigeria during the first quarter of 2024, the Minster of State for Petroleum Resource (Oil), Sen. Heineken Lokpobiri,  assures that measures are being taken to address the situation to, not only restore production to previous levels, but to also increase it.

    “The Minister ister clarifies that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some Oil companies operating in Nigeria.”

    The Minister is also pleased to announce that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days. 

    He anticipated that Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) prior to these developments, will soon be restored.

  • Navy arrests ship with suspected stolen crude oil

    Navy arrests ship with suspected stolen crude oil

    Operatives of the Nigerian Navy Ship (NNS) Beecroft deployed for Operation Delta Sanity have arrested a vessel, Motor Tanker SWEET MIRI, over alleged involvement in crude oil theft.

    The oil vessel with 13 crew members including a Ghanaian, was arrested at 174 nautical miles off the coast of Nigeria, approximately 320 kilometers, heading to Benin Republic.

    Briefing newsmen onboard the vessel on Saturday afternoon, the Flag Officer Commanding (FOC) Western Naval Command (WNC) Rear Admiral MB Hassan, said it generated suspicion after it swtiched off its Automatic Identification System (AIS) to avoid being detected.

    He said the tanker was a vessel of interest to the Nigerian Navy, adding that switching off its AIS led to the deployment of a naval gunboat to investigate its activities.

    He said: “On 25, February 2024, the vessel was observed to have switched off its Automatic Identification System to avoid detection.

    “This necessitated the deployment of Nigerian Navy Ship ABA to investigate the vessel. Subsequently, she was found carrying products suspected to be crude oil. “Thereafter, NNS SOKOTO was deployed to double up the search and interdict the vessel. On arrival, it was discovered that she was carrying about two million liters of suspected product without approval,” said Lieutenant Hussaini Ibrahim, the Base Information Officer in a statement yesterday.

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    He said the FOC disclosed that the deployment was in line with the directive of the Chief of the Naval Staff (CNS), Vice Admiral Emmanuel Ikechukwu Ogalla, to deny oil thieves access.

    He said the ship was open for other agencies to take samples and carry out their own independent investigations to find out the culpability of the vessel.

    According to Ibrahim, the FOC said the vessel was owned by a Ghanaian and registered in Ghana by a Ghanaian company.

    “In the same vein, while giving an update on the earlier arrested Motor Tanker VINNALARIS, the FOC said that, the CNS has instructed that the investigations of all arrested vessels should be conducted beyond the level of crew. 

    “In this regard, the FOC has extended the investigation to uncover the kingpins.

    “He finally appreciated the efforts of DSS for assisting the Nigerian Navy in conducting investigations when matters of crude oil theft are brought to them,” Ibrahim added.

  • Army uncovers 14reservoirs with 3mlitres of stolen crude oil

    Army uncovers 14reservoirs with 3mlitres of stolen crude oil

    • Manhunt for big players begins

    The 6 Division of the Nigeria Army, Port Harcourt, Rivers State has discovered  14 illegal reservoirs containing three million litres of crude oil and 49 boilers in Odagwa Etche Forest, Rivers State.

    The General Officer Commanding (GOC) 6 Division, Port Harcourt, Maj.-Gen. Jamal Abdussalam, said the discovery was made by officers of the division through credible intelligence.

    Abdusalam said that the  operators of the illegal reservoirs had about 49 crude oil boilers, where they refined stolen products and moved them to different locations through various channels.

    He said the suspects also constructed many tanks and  used hoses and cables to connect crude oil from wellheads located within the area.

    The GOC said: “The idea of bringing you here is to let Nigerians know exactly what is happening.  You can see that this place is in a deep forest even if you are using helicopter and military drones you will not be able to see what we actually saw here on the ground.

    Read Also: Army uncovers 14 reservoirs with 3 million litres of stolen crude oil in Rivers forest

    “We have discovered many illegal activities. As you can see we have seen reservoirs that can contain upwards of 200000 litres of crude oil. We have discovered about 14 of them in this bush.

    “We  have also discovered boilers that are capable of processing crude oil about 49 of them all located inside this bush and we have seen the network of hose and cables connected around the whole area.

    “The crude oil we have discovered in this place is in  the excess of the daily crude oil export of Nigeria . This is very pathetic and very sad to note.

    “Here we discovered 14 reservoirs and each reservoir stored a minimum of 200,000 liters of crude oil.

    “So, simple mathematics will give you in excess of 3million liters of crude oil that is stored. We are not talking about the ones that have been processed and taken out. These are the ones that we have discovered.

    “This place is called Odagwa in Rivers State and inside this place we have many wellheads. We don’t know the exact number of wellheads around here.

    “Most of them are not in use but you can see that it’s from these wellheads that these people put their pipes to steal this oil. Few arrests have been made however those that we have arrested are not the major players in this business. They are just carriers of the stolen oil.”

    According to him, the carriers were just labourers, adding that the army would go after the big players.

  • Tantita, NSCDC arrest vessel siphoning crude oil in Bayelsa

    Tantita, NSCDC arrest vessel siphoning crude oil in Bayelsa

    Efforts to end crude oil theft in the Niger Delta got a major boost with the arrest of an ocean-going vessel, while siphoning crude oil in an offshore location in Bayelsa state, by operatives of Tantita Security Services Nigeria Limited (TSSNL).

    TSSNL, a private security firm owned by former freedom fighter, Chief Government Ekpemupolo alias Tompolo, in a joint operation with men of the Nigerian Security and Civil Defence Corps (NSCDC), apprehended the vessel identified as MT KALI, Thursday night.

    This arrest came barely 24 hours after the Nigerian Navy led by the Chief of Naval Staff, Vice Admiral Emmanuel Ogalla, launched a new outfit, ‘Operation Delta Sanity’, to combat oil theft and other maritime crimes in Warri, Delta state.

    The captain and marine engineer of the vessel, identified as Adeboye David and Promise Eze respectively, as well as other accomplices, alleged to be members of some communities in the state, were seen on board the vessel in a video sighted by this reporter in Warri, Friday evening.

    Read Also: Tantita, NSCDC arrest vessel siphoning crude oil in Bayelsa

    In the video, the crew and their local accomplices were seen siphoning crude oil onto the vessel from offshore Sokebolou field in Bayelsa state, before they were apprehended.

    It was gathered that the management of TSSNL had reported the incident to the National Security Officer (NSA), Mallam Nuhu Ribadu and the board and management of the Nigerian National Petroleum Company Limited (NNPCL).

    Adeboye and Eze, during an interrogation by an official of TSSNL, said the vessel came in from Lagos state, four days prior to the arrest.

    According to them, they departed Lagos following assurances by their boss, simply identified as Captain Adeniyi, that they would have smooth sailing to conduct their business as relevant “security” agents on the waterways had been “settled”.

    Tantita’s Executive Director Operations and Technical, Captain Warredi Enisuoh, disclosed last night that the vessel is presently anchored at an NNPCL location at Oporoza, Warri Southwest council area of Delta state.

    He said the suspects were kept on board the vessel as investigations continued on Friday.