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  • Sale of SPDC, ExxonMobil will boost local content

    Sale of SPDC, ExxonMobil will boost local content

    • As NOGOF holds in Bayelsa on May 21st- 22nd

    The sale of ExxonMobil to Oando Energy Plc, Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy will boost the local content drive of the Nigerian Content Development Monitoring Board (NCDMB).

    Chairman of Petroleum Technology Association of Nigeria (PETAN), Mr. Wole Ogunsanya made this known in Abuja during the NCDMB press conference on the “Nigerian Oil and Gas Industry Oil and Gas Opportunity Fair (NOGOF) 2025.”

    Ogunsanya who is also a member of NCDMB said the acquisition is about keeping the value of oil and gas production in Nigeria.

    According to him, the 40 per cent and 45 per cent of oil and their profit that ExxonMobil and SPDC used to repatriate to other countries will now remain in Nigeria.

    He said: “ I am sure those of you in the press have seen a lot of announcements about acquisition of oilfields, and also recent, including the Shell asset, to explain to Nigeria.

    “What it means is that in the Exxon Mobil deal, the 40per cent of the oil that used to go to Exxon Mobil and they take it outside Nigeria to now reside in Nigeria. And the 45per cent of it, Shell, that used to be taken to Europe, the profit of it, will now deal with Nigerian, who is an indigenous country. That is what local content is all about. It’s about keeping value in country.”

    On the NOGOF, the NCDMB Executive Secretary, Engr. Felix Ogbe said the local content value of the oil and gas industry as at 2024 was 56 per cent.

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    He said the 5th Edition of the NOGOF will hold on 22nd of May 2025 in Bayelsa State.

    “This will be the 5th edition of NOGOF and it is scheduled to hold on 21st and 22nd of May 2025 in Bayelsa State.  Delegate registration will start on the 20th of May 2025,” he said.

    According to him, NOGOF as an event, is used to meet the key objectives of the Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICD Act).

    Ogbe said the  NOGICD Act mandates the Board to develop local capacities and capabilities in Nigeria’s oil and gas industry.

    He added that it promotes institutional collaboration and increases Nigerian participation in the sector.

    The Act, he said, also seeks to link oil and gas to other industries and maximize the use of local resources.

    The Executive Secretary the event will also host the Champions of Nigerian Content Awards on the sidelines this year.

    He said the award will celebrate individuals and companies that have made significant contribution to the development of Nigerian Content.

    He recalled that the 1st edition of NOGOF was hosted in Uyo, Akwa Ibom State in 2017. The 2nd and 4th editions were hosted in Bayelsa State, while the 3rd edition was hosted virtually due to the COVID -19 pandemic.

    He said the theme for this edition is – “Driving Investment and Production Growth: Shaping a sustainable Oil and Gas Industry through Indigenous Capacity Development.”

    According to him, the theme highlights the critical role of the oil and gas industry in fueling industrialization and development of Nigeria’s economy.

    Ogbe said this aligns with the NCDMB’s mission of increasing local content in Nigeria.

    Continuing, he said “This theme also aligns with President Bola Ahmed Tinubu’s commitment to economic growth and self-reliance.  Through the signing of an Executive Order, the President has positioned the country as Africa’s top destination for petroleum sector investments. This was achieved by prioritizing local capacity development.

    “NOGOF provides opportunities for companies in the upstream, midstream and downstream sectors to showcase their upcoming projects.  The aim is  to achieve our national aspirations of increasing gas and crude oil production,  boost revenue, and meet domestic crude oil and gas supply obligations.

    “This enables service companies, manufacturers, oil and gas trainers, and job seekers to invest in facilities and capabilities that will domicile most of the activities in the country.

    “In the 2023 edition of NOGOF, over 100 opportunities were presented by companies in the sector.  We had over 1,500 attendees, including VIPs.  Some of the projects showcased such as UBETA and Bonga North are already being executed, while others are in the pipeline for FID.

    “We expect a large attendance and more opportunities at this year’s edition, because of the impact of the three Presidential Directives on the Oil and Gas Industry, which has unlocked new investments.

    “We hope to welcome delegates, partners, and governmental bodies from different parts of Africa to engage in quality discussions and explore new business opportunities across the African oil and gas value chain.

    “We are committed to guide investors and other stakeholders on the various opportunities available to stakeholders in the oil and gas industry. As such, we have prepared a Compendium of Nigerian Content Opportunities in the Oil and Gas Industry 2025, which will be made available to all delegates at the event.

    “We are confident that the Compendium will serve as a useful tool in identifying and pursuing investment opportunities that align with local content requirements of the industry.

    “As part of our commitment to expand local content development across Africa, I have directed that some key African countries such as Ghana, Uganda, Sierra Leone be invited to also present their projects.

    “This opening will foster Business-to- Business partnerships between the Nigerian oil and gas service industry and their peers in other African countries. It will also improve intra-Africa trade and position our service companies for more opportunities beyond the shores of Nigeria.

    “To all stakeholders, we will be counting on your team’s support and cooperation, to ensure that this edition of NOGOF becomes a great success.”

  • ExxonMobil mulls $10b investment in Nigeria’s deep-water

    ExxonMobil mulls $10b investment in Nigeria’s deep-water

    Nigeria’s economic reforms have received a significant boost as ExxonMobil unveiled plans to invest $10 billion in the country’s deep-water oil operations.

    DP World also proposed a multibillion-dollar port project.

    Vice President Kashim Shettima welcomed the investments on the sidelines of the 79th Session of the United Nations General Assembly in New York yesterday. He described the investments as a testament to the administration’s investment-friendly policies.

    Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, in a statement, quoted VP Shettima as saying:  “This potential investment by ExxonMobil aligns perfectly with the President Bola Ahmed Tinubu administration’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects.”

    The VP elaborated on the President Tinubu administration’s efforts in ensuring ease of doing business in the country.

    He said: “The Renewed Hope Agenda places a strong emphasis on ease of doing business. We have initiated comprehensive reforms to streamline bureaucratic processes, enhance transparency, and provide fiscal incentives that make Nigeria an attractive destination for global investors.”

    The VP highlighted recent policy changes by the administration, saying: “Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms.

    “These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run.”

    Addressing the specific concerns of the oil and gas sector, the Vice President said: “We are actively working on revising the fiscal framework for deep-water operations. Our goal is to strike a balance between attracting investments and ensuring fair returns for the Nigerian people. The potential ExxonMobil investment is a clear indication that we are moving in the right direction.

    “As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning. Our doors are open to all investors across various sectors. The message is clear: Nigeria is open for business, and the President Tinubu administration is your partner in progress.”

    Read Also: Minister urges action to combat Ginger Blight

    Earlier, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, reaffirmed the company’s commitment to investing in Nigeria.

    “Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” Harris said.

    The centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.

    “We’re working closely with the President’s office and the Special Adviser to the President to secure favourable fiscal arrangements that will make this significant investment possible,” Harris explained.

    Despite the planned divestment of its onshore assets to Seplat Energy, ExxonMobil aims to inject $1 billion annually into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.

    Also, international maritime giant, DP World, announced its plans to develop a multibillion-dollar port project in Nigeria.

    Group Chairman & CEO of DP World, Sultan Ahmed bin Sulayem, disclosed this during a courtesy visit to Vice President Shettima on the sidelines of the ongoing United Nations General Assembly in New York.

    The proposal comes as a direct response to President Tinubu’s aggressive investment drive and efforts to improve the ease of doing business in the country.

    Sulayem said: “Nigeria is a massive market with hugely underutilised potential. The market has the capacity to dominate this sector in Africa. It is a major African country with a huge asset and resource base.

    “With our supply chain of over 2,500 points of sale to Nigeria, we will bring in the requisite capital, human and material resources needed to achieve this feat.”

    The DP World chief exec expressed confidence in the Nigerian economy, citing the country’s vast import and export market as a key factor in their decision to invest.

    Welcoming the initiative, VP Shettima said the “proposal is a testament to President Bola Tinubu’s avowed commitment to attracting foreign investments” to Nigeria.

    He emphasised the administration’s ongoing efforts to create a more investor-friendly environment.

    “Nigeria is open to investors from around the world. We are witnessing a total rejuvenation in terms of economic policies aimed at freeing up the economy and making way for a free, fair, and enduring market,” the VP stated.

    He assured the investors of the government’s full support and the administration’s dedication to facilitating foreign investment and economic growth.

    Others present at the meetings included the Minister of Industry, Trade, and Investment, Doris Nkiruka Uzoka-Anite; the Minister of Arts, Culture, and Creative Economy, Hannatu Musa Musawa; and the Minister of Youth Development, Dr. Jamila Ibrahim Bio, among others.

  • ExxonMobil: ‘we are not leaving’

    ExxonMobil: ‘we are not leaving’

    ExxonMobil yesterday assured the Federal Government it is not exiting Nigeria.

    Its MD/CEO, Mr. Shane Harris made this known when he led his team to meet the  Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri in Abuja.

    The ExxonMobil boss said, “We are excited about the prospects these new investments bring,’ said Mr. Harris. “Our partnership with the Nigerian government is crucial for sustainable growth, and we look forward to continuing our collaboration as we have no plan to leave.”

    Meanwhile, the minister reaffirmed Federal Government’s commitment to enhancing production and fostering a conducive environment for investors in the energy sector.

    This was emphasised during a recent meeting with ExxonMobil’s and his team.

    This was contained in a press statement

    Lokpobiri’s Special Adviser on Media and Communication, Nneamaka Okafor issued yesterday.

    The minister highlighted the ministry’s strategic focus on creating robust collaborations and sharing innovative ideas with International Oil Companies (IOCs).

    “We are dedicated to ramping up production and ensuring a supportive

    environment for all investors by doing everything possible to maintain investor confidence in our country,” he said.

    Read Also: Tinubu vows to eliminate insecurity in Nigeria

    Harris hinted at significant new investments that ExxonMobil is injecting into Nigeria’s energy sector. He expressed confidence in the renewed relationship between ExxonMobil and the Nigerian Government, assuring that the oil giant is not planning to leave Nigeria.

    Lokpobiri commended ExxonMobil

    for its commitment, noting that it aligns perfectly with the nation’s objectives. “ExxonMobil’s planned investments are commendable and greatly appreciated. This renewed relationship is a testament to the mutual goals we share for the future of our energy sector,’ he said.

    The discussions also hinted at the Ministry’s support for both international and independent oil operators. Sen. Lokpobiri assured Mr. Harris of the Government’s support, emphasizing the importance of creating a thriving environment for all stakeholders.

    “We fully support ExxonMobil and other lOCs, just as we do with independent operators. Our collaborative efforts are key to the sustainable growth of our energy sector,’ he added.

    He stressed the importance of continued dialogue and partnership between the Government and IOCs to drive innovation and growth in the sector.

  • Foundation raises 8,000 public health advocates

    Foundation raises 8,000 public health advocates

    ExxonMobil, through its Power Forward programme, has raised over 8,000 malaria champions and public health advocates.

      The 10th Power Forward project in partnership with NBA Africa and PanAfricare is a youth programme providing life skills and public health seminars, malaria prevention workshops and basketball development to 250,000 boys and girls in 40 schools at Abuja. 

     This year’s programme includes basketball tournament from June through September featuring 30 boys’ teams and 12 girls’ teams.

    Read Also: Nigeria more ready for business now, Tinubu tells ExxonMobil

     The on-court competition, holding between September 19 to 21, features an alumni summit ahead of the championship games at M.K.O. Abiola National Stadium today, and will engage 500 former Power Forward participants on the programme’s impact,  with a Jr. NBA clinic for 1,200 young boys and girls.

     ExxonMobil Foundation President, Alvin Abraham said: “Over the past decade, our partnership with NBA Africa and PanAfricare on the Power Forward initiative has promoted youth development through sports, life skills, and public health education.”

     NBA Africa Vice President and Country Head of Nigeria, Gbemisola Abudu, said: “The initiative utilises the transformative power of basketball to educate young people about public health awareness while instilling critical life skills as teamwork and leadership, and we’re encouraged about the influence the programme has had to date.”

     PanAfricare Nigeria Country Director, Dr. Patrick Adah added: “Power Forward, in its 10th year, has raised over 8,000 malaria champions and public health advocates. The positive impact of the project has transformed youths in 40 schools in FCT. Through effective and collaborative partnership, the project has metamorphosed into a model which we look to expand.”

  • Nigeria more ready for business now, Tinubu tells ExxonMobil

    Nigeria more ready for business now, Tinubu tells ExxonMobil

    President Bola Tinubu yesterday said Nigeria has never been more ready for business than now, saying the country is no longer settling for crumbs and leftovers on the investment agenda of the world’s most prolific energy conglomerates.

    According to a statement  by his Special Adviser on Media and Publicity, Ajuri Ngelale, President Tinubu spoke when he hosted a delegation consisting of the global leadership of an Oil & Gas transnational giant, ExxonMobil, in New York on the sidelines of the United Nations General Assembly (UNGA).

    President Tinubu, who was once an executive in Mobil Oil Nigeria, before the 1999 merger, which resulted in ExxonMobil, told his guests that “Nigeria has never been more ready for business than it is now.”

    President Tinubu said following an illustrious private sector career as a professional accountant in the oil and gas industry, he has proven his capacity to take difficult decisions as President and is best prepared to solve problems and crush all bottlenecks standing in the way of new and large-scale capital flowing into Nigeria’s oil and gas industry.”

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     “The knotty issues require direct supervision on my part. Despite many contending obligations, I will sit down and oversee the process of removing these encumbrances to job and wealth creation for the Nigerian people.

    “We know the industry. We grew up in it. We are positioned to solve the problems, and we are pragmatic, and we will solve the problem,” the President firmly assured.

    ExxonMobil President of Global Upstream Operations, Liam Mallon, assured President Tinubu that he is aware of the new and personal commitment that the President is bringing to bear on behalf of Nigeria and is well placed to reciprocate the President’s efforts with new investment as he pledged new production of nearly 40,000bpd in its Nigerian operations in phase one of a new investment push in Nigeria.

    “What you told us was that your team would collaborate with us, and that has proven true. We have made significant progress since we last met. We are growing our production, and we are working hard on expanding in the deep-water production. We appreciate your efforts, and we will respond in kind. The time is right. Thank you for your leadership,” the ExxonMobil President stated.

  • Tinubu reassures ExxonMobil: Nigeria is now fully prepared for business opportunities

    Tinubu reassures ExxonMobil: Nigeria is now fully prepared for business opportunities

    President Bola Tinubu, on Monday, September 18, said Nigeria has never been more ready for business than now, saying Nigeria is no longer settling for crumbs and leftovers on the investment agenda of the world’s most prolific energy conglomerates.

    According to a statement issued by his Special Adviser on Media and Publicity, Ajuri Ngelale, President Tinubu, spoke when he hosted a delegation consisting of the global leadership of an Oil and gas transnational giant, ExxonMobil, in New York, on the sidelines of the United Nations General Assembly (UNGA).

    President Tinubu, who was once an executive in Mobil Oil Nigeria, before the 1999 merger, which resulted in ExxonMobil, told his guests that “Nigeria has never been more ready for business than it is now.”

    He said following an illustrious private sector career as a professional accountant in the oil and gas industry, he has proven his capacity to take difficult decisions as president and that he is best prepared to solve problems and crush all bottlenecks standing in the way of new and large-scale capital flowing into Nigeria’s oil and mo gas industry.

    The president said: “The knotty issues require direct supervision on my part. Despite many contending obligations, I will sit down and oversee the process of removing these encumbrances to job and wealth creation for the Nigerian people.

    “We know the industry. We grew up in it. We are positioned to solve the problems, and we are pragmatic, and we will solve the problem.

    Read Also: Tinubu, Ramaphosa in investment talks at UNGA

    ExxonMobil President of Global Upstream Operations, Liam Mallon, assured Tinubu that he is aware of the new and personal commitment that the president is bringing to bear on behalf of Nigeria and is well placed to reciprocate the president’s efforts with new investment.

    He also pledged new production of nearly 40,000bpd in its Nigerian operations in phase one of a new investment push in Nigeria.

    The ExxonMobil President stated: “What you told us was that your team would collaborate with us, and that has proven true. We have made significant progress since we last met. We are growing our production, and we are working hard on expanding in the deepwater production. We appreciate your efforts, and we will respond in kind. The time is right. Thank you for your leadership.”

  • ExxonMobil to battle malaria with $5.7m

    ExxonMobil is committing $5.7 million to support local and global organisations working to eliminate malaria around the world.

    This year’s grants, announced in conjunction with World Malaria Day, will continue the company’s nearly 20-year effort to reduce the global burden of malaria, a disease that still causes an estimated 435,000 deaths yearly.

    According to a statement issued by the Manager, Media and Communications, ExxonMobil Nigeria, OgeUdeagha, ExxonMobil’s malaria initiative has worked to advance progress against malaria though partnerships focused on developing the next generation of global health leaders and building health system capacity by supporting education and improving access to tools for malaria prevention, diagnosis and treatment.

    “We focus our attention on local and global organisations that deliver health services and supplies directly to affected communities,” said Kevin Murphy, president, ExxonMobil Foundation.

    “While great progress continues to be made in saving lives from malaria around the world, important work remains to prevent the disease’s resurgence.”

    ExxonMobil works with partners in Angola, Cameroon, Chad, Equatorial Guinea, Mozambique, Nigeria and Papua New Guinea to identify and promote solutions to fight the disease.

    Activities and public events planned in those countries to commemorate World Malaria Day include voluntary testing and counselling sessions, mosquito net distribution, community events and public awareness campaigns.

    This year’s grant recipients include ADPP Angola, Africare, Baylor College of Medicine, Corporate Alliance on Malaria in Africa (CAMA), Friends of the Global Fight, Grassroot Soccer, Harvard T.H. Chan School of Public Health, Jhpiego, Malaria No More, PATH Malaria Vaccine Initiative, Seed Global Health, Special Olympics, TchovaTchova, ExxonMobil Global Health Scholars at the University of Oxford and Worldwide Antimalarial Resistance Network (WWARN).

    Since 2000, ExxonMobil has invested a total of $170 million, supporting the delivery of 15 million bed nets to prevent mosquito bites, the administration of five million anti-malarial treatments and the distribution of 3.9 million rapid diagnostic kits. The company has also supported the training of 700,000 health workers.

  • ‘Kachikwu’s visit to Exxon Mobil FPSO was to increase production’

    The Ministry of Petroleum Resources Monday said that visit by Minister of State Dr. Emmanuel Ibe Kachikwu to the ERHA FPSO operated by ExxonMobil was to increase crude oil production and also unlock the gas.

    The ministry’s Deputy Director, Press, Olujimi Oyetomi, who made this known in a statement Monday said that the “This visit by Dr. Kachikwu not only marks a defining one for the Nation but also highlights a personal achievement for the Minister considering that he took on his current portfolio from his then position as the Executive Vice Chairman of Mobil Producing Nigeria Unlimited and General Counsel for ExxonMobil Nigeria affiliate Upstream and Downstream Companies in Nigeria.

     “This latest round of visits to the FPSO’s is to provoke the Oil Production Fields of Nigeria to ramp up their crude production and unlock gas in line with the Gas Revolution Agenda of the #7BigWins. He was received by Richard Laing, Executive Director and Production Manager of ExxonMobil while Scott Hommema, PhD, the General Manager, Deepwater Operations and Joint Interest, took him and his delegation on a tour of the FPSO.”

    The statement said that while addressing key business concerns of Exxon Mobil, Dr. Kachikwu urged them to not only focus on the profitability of the firm but also on giving back to the society having been doing business around the country for a long time.

    He commended the crew on behalf of the Federal Government of Nigeria for their Sacrifice, urgency of attention and value addition while conveying President Muhammadu Buhari’s deep commitment to the welfare of those on the production fields.

    Kachikwu name-checked the Department of Petroleum Resources’ automation initiatives that include Crude Oil and LNG Tracking (COLT), Automatic Downstream System (ADS), Accelerated Lease Renewal Program (ALRP) and others.

    He also referenced the community engagement drive of the organization evidenced by the peace and harmony seen in operating areas.

    The Executive Director and Production Manager of ExxonMobil, Richard Laing, also used the opportunity to firmly debunk the unsubstantiated rumor about the organizations exit from Nigeria.

    He further noted that the ERHA field is located in Oil Mining Lease (OML) 133 and ExxonMobil holds a 56.25% participating interest while Shell Nigeria Exploration and Production Company (SNEPCO) holds the remaining 43.75% share. The Floating, Production, Storage and Offloading (FPSO) has about 2.2 million barrels of storage capacity making it one of the largest of its kind, globally.

  • ExxonMobil, other oil coys not exiting Nigeria – Kachikwu

    Dr Ibe Kachikwu, the Minister of State for Petroleum Resource says that no International Oil Company (ICO) is planning to exit  Nigeria contrary to reports in some section of the media.

    Kachikwu made this known while briefing newsmen after facility tour of ExxonMobil Erha Floating Production Storage and Offloading vessels (FPSO) in Lagos on Sunday.

    FPSO unit is a floating vessel used by the Offshore oil and gas industry  for the production and processing of hydrocarbons for the storage of oil.

    Erha FPSO has a liquid storage capacity of 2.2 million barrel, making it one of its biggest kind in the world. The Erha field and Erha North satellite field, was completed in 2006.

    The fields are located approximately 97km offshore Nigeria in water depths ranging from 1,000m to 1,200m. They were developed with an investment of 3.5 billion dollars.

    He said that it was not possible for a company like ExxonMobil to sell off its assets for the small amount quoted in the report as its assets were much more worth than that.

    “I have confirmed that it is not true, there are going to be here for a long stay, they will be here over the next 50 years, they are looking for more, they are doing all kinds of things, they just begun the exploration campaign first time in four years because of the new cash call policies we put in place.

    “ That is not a sign of somebody who is exiting. But different from not exiting is to be aggressive. ExxonMobil needs to be more aggressive in terms of development policies,’’ he said

    He added that ExxonMobil need to be more aggressive with business as Bonga South west was almost on FID, Egina just kicked off and AGip is  struggling to get Zabzaba online.

    “ So, I need to see a very robust development ,’’ he advised

    Commenting on the aim of his visit, he said that it was to encourage the company and see the development programmes as well as share in the challenges they were experiencing in their operations.

    “First is to draw attention to the very complex and complication of operations of FPSOs when we do production off shore.

    “This is about 100 km from Land, and part of the thing I am doing this month is visiting some of them. Including Egina that is just recently buoyed in different location and the one of Agip.

    “I am here to look at what they are doing, to encourage them to continue the fantastic work they are doing and also discuss with them what their problems are,’’ he said

    According to him, the visit is also to draw attention nationally and internationally to the few challenges in operations as complicated as this one.

    He urged the company to brace up to the challenges in the sector as oil had recently been found in many African countries.

    Read also: Kachikwu challenges ExxonMobil, others on gas commercialization policy

    Earlier, Mr Richard Laing, ExxonMobil Executive Director, Production commended the minister for  making out time to visit the facility and reiterated that the company had no plans to exit Nigeria.

    “We are happy with Nigeria, We have our differences, we don’t agree on everything, we are happy and content. We are delighted over the minister’s visit and we are happy that he has come back to his spiritual home.

    “As the minister said, the corporation has been here for many years, we intend to stay, we have ambitious growth programmes to build wealth and grow business to make more profit, key into the gas commercialisation project.

    “ We fully support what the minister said and we look forward to working with him,’’ he said .

    Laing said that the company was being faced with the challenges of competition for capital and expertise in running the business. (NAN)

  • Kachikwu challenges ExxonMobil, others on gas commercialization policy

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu has urged ExxonMobil and other  International Oil Companies operating in Nigeria, to key into the gas commercialization policy of government for gas development in the country.

    Kachikwu gave the advise while fielding question from newsmen after  visiting the ExxonMobil  Erha Floating Production Storage and Offloadingvessels (FPSO) facility in Lagos, On Sunday.

    An FPSO unit is a floating vessel used by the Offshore oil and gas industry for the production and processing of hydrocarbons for the storage of oil.

    Erha FPSO has a liquid storage capacity of 2.2 million barrel, making it one of its biggest kind in the world. the Erha field and Erha North satellite field, was completed in 2006.

    The fields are located approximately 97km offshore Nigeria, in water depths ranging from 1,000m to 1,200m.

    NAN reports that the fields were developed with an investment of 3.5 billion dollars.

    He said that gas would be parallel income stream for the country if everyone key in to implement the gas commercialization policy

    “ There is so much we can do with oil, we are doing that.I like to see oil go up in barrels, up to 3 million barrels but most importantly, I like to see gas begin it life.

    “If you look at the production, a lot of gas is been rejected. And everybody is talking of gas in the country and gas is going to be parallel income stream for the country.

    “ We have talked about it too much, but fiscal terms have to be agree on PSC terms, commercial terms for gas need to be agreed and once we unlock that, the issues of power becomes secondary.

    Read also: Kachikwu: Firms should raise Nigeria’s oil production to 7m bpd

    “ My message here today is, thanks for the fantastic work you are doing but there is a huge amount of work left undone,’’ he said.

    He said that the country had volume and reserves of oil to produce in the next 40 to 50 years but the gas was still lying untapped.

    He said that a lot had been done under the gas commercialization policy adding the LPG deployment had started in the country.

    “But those are just torching the fringes, what is important is coming up with right commercial terms, get that done as rapidly as possible and let everybody who have access to gas to development,’’ he added.

    He said that government had received submission from all oil companies keying into the policy to help exit gas flare.

    “ It is a different thing from dealing with gas development itself.  There are many ways to stop flare, you can inject it and that is what has helped us achieved about 70 per cent factor in gas flare exit but that is not real exit, that is manage exit.

    “For you to exit it, you must have the right commercial terms so that people can produce gas and make it commercial,’’ he said.

    He noted that the need to develop gas for commercial purpose remained the big elephant in the room. (NAN)