The Nation Newspaper

Tag: John Ofikhenua

  • NEITI worries over paltry $3.9b oil savings 

    NEITI worries over paltry $3.9b oil savings 

    • Seeks consolidation of oil savings accounts
    The Nigeria Extractive Industries Transparency Initiative (NEITI) was yesterday worried that all that the country could save from its oil proceeds between 1980 and June 2017 is $3.9billion.

    The Executive Secretary, Waziri Adio made this disclosure yesterday in Abuja, during the presentation of its occasional paper titled “the case for a robust oil savings fund for Nigeria.” The report stressed the need for savings and more savings despite the oil bench mark price.

    His words: “Nigeria currently has three oil savings funds. They are the Sovereign Wealth Fund with $1.5billion, the Excess Crude Account $2.3billion, and the Stabilisation Funds with N29.02billion  ($95million).

    “In the last 40 years of oil production, Nigeria has extracted about 31billion barrel of its oil reserves. However, from 1980 to 2015, the country exported crude oil worth about $1.09trillion but has a current balance of $3.9billion as at June 2017 in the three funds.”

    He, however, called on the Federal Government to consolidate all oil trust funds into the Nigeria Sovereign Wealth Fund to yield return on investment.

    He added that with 3.9billion dollars in Nigeria’s oil savings funds which merely accounts for 16% of the 7.44trillion naira of the federal budget shows that the Nigeria economy is highly vulnerable and unprotected.

    According to the NEITI boss, “when people are talking about how we ended in this trouble and how we will get out of it little attention is paid to savings, that we didn’t have enough savings, when the prices were high we thought it would be high forever living in Fools paradise and when the prices fell we didn’t have enough to fall back on.” He added that Nigeria has to move away from its present state of spend it all or even save and spend attitude to real savings culture, otherwise the country will continue to be vulnerable.

    The report disclosed that most countries that established one or more oil revenue funds have accumulated huge savings in their stabilisation accounts. On the other hand, Nigeria’s ECA has been dogged by questions about its Constitutionality, which have hindered regular remittances into the accounts. But the ECA also faces governance issues bordering on transparency and failure to adhere to the fiscal rules guiding the operations of the ECA.

    In the end, distrust by subnational governments about the management of the fund coupled with the lack of political will has prevented the government from effectively implementing its savings and stabilisation policy.

    The Chief Executive Officer
    recalled that this is not the first time we are going to be experiencing an economic downturn, adding that when Nigeria faced a similar challenge in 2008/2009, the country had a chance dealing with the situation and without having to borrow as Nigeria had in excess of 60 billion dollars in reserves.

    In his words “We were one of the very few countries that didn’t have to go and borrow, and we didn’t have to go through what we are going through now and this happened 2008/2009 and by the time the prices started rising again and selling above 100 dollars we were just blowing it”

    The report, however, recommends that The federal government seeks speedy resolution on Supreme Court cases related to oil funds, and delink government expenditures from oil revenues to pursue policy initiatives that pursue prudent macro economic policies, better economic and social environment for the next generation.

    In addition to ensuring that there are constant savings whether oil prices are high or low and provide regular payouts from the return on investment of the funds to compensate beneficiaries for their sacrifice.

  • Quit notice: OMPALAN urges dialogue

    Following the insistence on the October 1 quit notice that the Coalition of Northern Youths has given to the Igbo in northern Nigeria, the Oil and Solid Minerals Producing Area Landlords Association of Nigeria (OMPALAN) on Monday urged the Federal Government to call all the aggrieved parties to a negotiation table.
    OMPALAN’s National Facilitator, Barrister Sam Oduh Ezediaro, who made this call in a statement, said the quit notice which has also got the blessing of some of the elders in the north is worrisome.
    He, however, noted that although there could be excuses to balkanize the country, a united sovereign Nigeria, where there is rule of law, will still fare better than a divided one.
    He said that: “The various crisis rocking the nation should be seen as a clarion call to good governance by the political leadership. While there may be glaring reasons for break up we, as a nation will fare much better under a united sovereign nation that is driven by the rule of law.
    “The Federal Government should provide an enabling environment for dialogue in order to bring aggrieved individuals and organisations to a negotiating table where burning issues can be properly addressed.
    ” I, therefore, wish to appeal to those campaigning for self determination to sheath the sword and accept dialogue as the most effective tool to resolve conflicts.”
    He noted that the quit notice is worrisome because the country has been battling to recover from the havoc of the civil war which claimed three million lives and retarded the economy.
    OMPALAN  admitted that that governance challenges have made the ordinary Nigerian miserable.
    Continuing, the statement added that : “The nation’s economy which is driven largely by oil is manifestly in deep recession due to global shock in oil price coupled with our dwindling foreign reserve that is regularly tampered with to make up for budget deficit. “Our Country, Nigeria is really in a mess bringing to fore the issue of political leadership which is actually fueling the ongoing agitations for self-determination across Nigeria’s vast ethnic nationalities.
    “The perception of injustice and inequities are spreading like wild fire beyond the frontiers of political and ideological divides. With tempers running high there is the tendency to shift the blame to government and not just government but, to those holding the levers of power. This is understandable especially in view of the biting austerity that does not seem to abase.
    “However, Nigerians are extraordinary people who are known all over the world to overcome trying periods in the nation’s history. Nigeria survived a traumatising civil war that led to the death of over 3 million people.
    “Nigeria survived the shock of the 2000 shariah-induced crisis that resulted in the avoidable death of thousands of innocent Christians in the north and reprisal killings of Moslems in the South. Nigeria survived the rage of crippling armed campaigns by militants in the Niger Delta region.
    “Nigerians should not loose sight of the war ravaging the north east of our Country by the dreaded Boko Haram terrorists with attendant heavy toll on life and property. The Boko Haram war in the north east of Nigeria has claimed several thousands of lives including our brave soldiers that fell to the savage bullet of anarchy.
    “These innocent, patriotic and gallant citizens sacrificed their lives while fighting to restore constitutional peace and order in war-torn north east Nigeria.
    “Worse still, is the devastating effect and nightmarish experience of fellow Nigerians who were displaced in their thousands from their once-peaceful war-torn areas and are now forced to live in sub-standard make-shift camps.
    “Finally, I commend the effort of OMPALAN and other peace-loving organizations across the Country for making bold effort to sue for peace. Our Country, Nigeria will fare better when we resolve to live together under a sovereign and united nation founded on peace, justice and equity.
    “The greatest threat to sovereign Nigeria is insecurity especially the spirited effort of religious bigots to take over the reins of government and force their evil agenda on the Country. This is an area President Buhari has done very well and must be commended by all Nigerians.
    “If Boko Haram had succeeded nobody would be talking of the rule of law or injustice or inequity. Nigerians of all climes must therefore come to terms with the stark reality on ground and pray fervently for the quick recovery of President Buhari to enable him finish the war successful against terrorism in the north east and by extension the entire Country.”
  • IAEA rates Nigerian nuclear infrastructure high

    IAEA rates Nigerian nuclear infrastructure high

    • Seeks independence for NNRA

    The International Atomic Energy Agency (IAEA) on Wednesday gave the Nigerian Nuclear Regulatory Authority (NNRA) a clean bill of health, describing it as a committed regulatory body that works for the continuous improvement of nuclear and radiation safety.

    An interim report that the IAEC Integrated Regulatory Review Service (IRRS) mission’s chairman, Lamberto Mattoecci presented on the 10-day mission, however, observed that the NNRA was still enmeshed in challenges related to its independence in implementing regulatory decisions and activities.

    Presenting the report in Abuja, the IAEA recommended that the “government should ensure that the NNRA is effectively independent and it is functionally separated from entities having responsibilities or interests that could influence its decision-making.”

    It also recommended that the government should establish a national policy on safety and ensure that the corresponding legal framework is in line with IAEA safety standards.

    It recommended that the NNRA should carry out an analysis of all competencies needed to cover its responsibilities, develop and implement a human resources and training plan.

    IAEA urged the regulatory body should ensure that all facilities and activities have a valid authorization, and establish and implement an enforcement policy to respond to non-compliance,
    The NNRA, according to Mattoecci, should consider formalising cooperation with other authorities having responsibilities related to safety.

    He submitted that the final mission report will be provided to Nigeria in about three months. Mattoecci revealed that “Authorities in Nigeria have told IAEA that they plan to make the report public.”

    The 12-member IRRS team comprised of senior experts from France, Germany, Greece, India, Italy, Latvia, Morocco, Pakistan, Slovenia, Turkey, and Zimbabwe, as well as IAEA staff members.

    The Nigerian government, according to him, “will work with the IAEA to develop a work-plan for the implementation of the mission’s recommendations and suggestions,”

    On the findings, the mission said that “The IRRS team recognises the strong commitment of Nigeria to improving nuclear and radiation safety. The team was extended full cooperation by all parties in this review,” said Lamberto Mattoecci, Technical Coordinator for Nuclear Safety and Radiation Protection at the Italian Institute for Environmental Protection and Research (ISPRA).

    He added that “We believe the outcome of this mission will be of great help to the country in order to enhance its national regulatory framework.”

    Speaking at the press briefing, NNRA Director General, Prof. Lawrence Dim noted that the action- plan is the basis for the work, stressing that many of the recommendations will be addressed.

    The NNRA boss said: “Someone also asked what is the expectation before the team will come back in three years time. We have not decided when they will come back. But after we decide we will come again to look at what we are doing. It is a continuous process.”

  • AEDC to distribute more power with new transmission station

    AEDC to distribute more power with new transmission station

    With the commissioning of the Kukuaba Transmission Station, the Abuja Electricity Distribution Company (AEDC) on Tuesday said that it is now reinforced and better positioned to serve its customers better.

    Speaking at the ceremony in Abuja, where the Minister of Power, Works and Housing, Babatunde Fashola, who was represented by the Permanent Secretary, Engr. Louis Edozien, the Managing Director of AEDC, Engr. Ernest Mupwaya explained that the company can now distribute power directly to Lugbe and its environs. 

    This, according to him, is that the line from where the consumers are now getting their power is nearby. 

    “Those who are being served from Katampe in Gwarimpa, Life Camp, Mabuchi, Maitama, Wuse II, Jahi and others will also enjoy improved supply. This is so because it has now been freed of the power it was releasing to Lugbe. In the long time, we will have the capacity to take more electricity,” he said.

    According to him, the firm has reinforced 4,048 sub-stations in its network through maintenance services while surveying the protection system of 68 others.

    Speaking earlier at the opening session of the 17th Power Sector Meeting in Abuja, he said the reinforcement was to boost power supply and enhance health and safety in its operational environment.

    The AEDC boss noted the improvement in the power sector saying, “the usual discussions in the past about power deficit is gradually giving way to discussions about increased power not being utilised. This is further supported by the rate at which incremental generation is being commissioned in the industry.”

    He noted that commissioning the 132/33Kva Kukuaba transmission sub-station by the federal government shortly after the meeting would boost power supply directly in Lugbe area of the Federal Capital Territory (FCT).

    “The majority of customers in Abuja City such as Maitama, Wuse II, Gwarinpa and Mpape will also benefit from improved supply because of the freed capacity in the Katampe transmission substation,” Mupwaya added.

    Reeling out other achievements of the Distribution Company (DisCo) since it was privatised in 2013, he said: “We have completed Large Power Users (LPU) metering of 3,885 customers by February 2017; flagged off metering of Small Power Users (SPU) in December 2016 and close to 90,000 are metered so far.”

    AEDC said it has improved the organisational design, corporate governance and compliance, and improved training for its personnel.

    The Permanent Secretary in the Ministry of Power, Engr. Louis Edozien who chaired the meeting said the ministry has rolled out policy directives to address the limitation of 33Kv and 11Kv distribution infrastructures across the DisCos to solve the issues of power underutilisation often tagged as load rejection.

    Edozien urged the DisCos not to feel threatened by the recent ‘Eligible Customer’ pronouncement that will allow certain customers to buy power directly from the Generation Companies (GenCos). He said the declaration will strengthen their services and improve revenue base to tackle the liquidity crisis in the sector.

    He also revealed that the Market Operator and the Nigeria Bulk Electricity Trading Plc (NBET) are in the process of restructuring the bulk energy debts owed by DisCos to help them raise financing while improving their services to customers.

  • BPE seeks to 20% of deferred entities via public listing

    BPE seeks to 20% of deferred entities via public listing

    The Bureau of Public Enterprises (BPE), according to its Director General, Alex Okoh, is working with core investors in some privatised enterprises sold by deferred public offering to ensure they sell at least 20 percent of such entities to the market through public listing.

    He said that “BPE is working with core investors in certain privatised  enterprises sold by deferred public offering to ensure that they sell at least 20% of such entities to the market via public listing.”

    The Head of Public Communication, Mr. Chukwuma Nwokoh, who made this known in a statement yesterday, said that Okoh spoke via a paper titled Creating An Enabling Environment For Public Listings Of The Economy’s Commanding Heights: The Case For Telecommunications & Energy Sectors.

    The statement added that the paper that was presented at the 2017 annual national workshop of the Chartered Institute of Stockbrokers in Abuja.

    Okoh said that Public listings remain a strategic objective of the reform and privatisation programme of the Federal Government.

    He added that the privatisation agency would  develop policies to attract additional private sector capital into the privatised companies “which will eventually give confidence to the business and encourage listing”.

    To achieve that, Okoh explained that the Bureau would henceforth ensure that the right core investors with the financial, technical and managerial competences are selected to ensure that they are capable of moving privatised entities to the desired level in order to make them attractive for public listings.

    Okoh called for the establishment of an institutional framework to reach targets in both public and private sectors and to identify quick wins, medium term goals, long term achievements.

     The DG said that the Bureau was also undertaking a quick assessment of privatized enterprises, especially in the petro-chemical sector with a view to divesting the Federal Government shares through the capital market.

     Also speaking at the event, a former Director-General of the BPE, Mr. Benjamin Ezra Dikki, called on the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to set up a committee to induce the telecommunications companies in the country to go to the capital market.

  • NNPC gets $2b discounts on upstream contracts

    NNPC gets $2b discounts on upstream contracts

    …reduces cost of prodcution to $22/barrel
    The Nigerian National Petroleum Corporation  (NNPC), has secured $2billion discounts in the last one year from renegotiated Upstream contracts being executed by its various service providers.

    The Corporation said the feat was achieved in the quest to continually drive down the high cost of production in the industry.

    This was made known on Tuesday by NNPC Group Managing Director, Dr. Maikanti Baru, in a podcast message to the Corporation’s Staff to mark One-Year Anniversary of his appointment as the Corporation’s helmsman.

    Dr. Baru, who took over the mantle of leadership of NNPC from Honourable Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, July 4, last year, said already NNPC had lowered operating costs of production from $27/barrels to $22/barrels.

    “For the Upstream, cost reduction and efficiency are key features that we will pay attention to”, Dr. Baru stated in the 25-minute podcast.

    Dr. Baru directed that focal points for efficiency in each of the Corporation’s Autonomous Business Units, ABUs, and Corporate Services Units, CSUs, should be identified to ensure the realisation of the key performance indicators enshrined in the 2017 budget, adding that the Corporation must attain a six-month contracting cycle.  

    Speaking further on the achievement of NNPC in the past year with him at the helms of affairs of the Corporation, Dr. Baru said there had been a significant increase in crude oil reserves and production, stressing that during the period, the national average daily production was 1.83million barrels of oil and condensate while currently, the Year-To-Date 2017 average production hovers around 1.88million barrels.

    He said with the improvement in security and resumption of production operation on the Forcados Oil Terminal (FOT) and Qua Iboe Terminal (QIT) pipelines, the average national production was expected to increase and surpass 2017 target of 2.2million barrels of oil and condensate per day.

    The GMD stated that in October last year, the Owowo Field, located close to the producing ExxonMobil-operated Usan Field was found, adding that the Field’s location could allow for early production through a tie-back to the Usan Floating Production Storage and Offloading (FPSO).

    The Field, he noted, had added a currently estimated reserve of 1billion barrels to the national crude oil reserves.

    Baru noted that the Corporation had grown the production of the Nigerian Petroleum Development Company, NPDC, NNPC’s flagship Upstream Company, from 15,000 barrels of oil per day (bopd) to the current peak-operated volume of 210,000bopd in June 2017.

    He stated that the ownership of Oil Mining Licence, OML13 had been restored to NPDC following a presidential intervention, with first oil from the well expected before the end of the year.

    The GMD said the confidence of the NNPC JV partners to pursue new projects had been rekindled following the repayment agreements for JV cash call arrears that were negotiated and executed for outstanding up to end 2015 by all the IOC Partners of the Corporation’s Joint Venture Companies (JVCs).

    In the gas sector, the GMD said gas supply to power plants and industries in the Country had been significantly increased.

    Dr. Baru listed the accomplishments of the Corporation in the sector to include: Completion of the repairs of the vandalized 20” Escravos Lagos Pipeline System A (ELPS –A) in August 2016 which ramped up Chevron Escravos Gas plant supply from nil to 259MMscfd and the Completion of repairs of the vandalized Chevron offshore gas pipeline in February 2017 which equally peaked the company’s gas supply to 430MMscfd.

    Other accomplishments under this category are: the completion of repair works on the vandalized 48” Forcados Oil Terminal (FOT) export gas pipeline in June 2017, which had reactivated shut down gas plants, including Oredo Gas Plant, Sapele Gas Plant, Ovade Gas Plant, Oben and NGC Gas Compressors; and the commissioning of NPDC’s Utorogu NAG2 and Oredo EPF 2 gas plants.

    The GMD explained that the concomitant effect of the efforts was a significant growth in domestic gas supply in the last few months, adding that during the period, domestic gas supply had increased from an average of 700MMscf in July 2016 to an average of 1,220MMscfd currently, with about 7 of the volume supplied to thermal power plants.

    “A lot of Generation Companies (GENCOs) are rejecting gas due to the inability of Transmission Company of Nigeria (TCN), to wheel-out the power generated”, Dr. Baru said.

    Dr. Baru informed that since his assumption of office a year ago, resources had been deployed to the Benue Trough, with exploration efforts commenced there in earnest.

    He explained that seismic data acquisition was ongoing in the frontier region using the services of Integrated Data Services limited, IDSL, and her partners to pursue Government’s aspiration to grow the reserves base of the Country.

    The GMD stated that drilling activities were expected to commence in Benue Trough in Q4 this year.
    He said: “We are working with the security agencies for an early return to the Chad Basin. Drilling activities will be a priority on resumption while continuing with seismic data acquisition with improved parameters.”

    In the Downstream Sector, Dr. Baru explained that in the last one year, NNPC had stabilised the market with sufficient products’ availability across the Country through modest local refining efforts as well as the Direct Supply Direct Purchase, DSDP, scheme,  which he observed had saved the nation about N40billion in 2017.

    “We have also commenced the resuscitation of our products transportation pipelines network, thus enabling us to move products to depots at a faster rate and cheaper distribution costs to consumers. The Aba, Mosimi, Atlas-Cove and Kano Depots have all been re-commissioned and are currently receiving products, thereby enhancing products’ availability across the Country”, the GMD said. 

    Baru said in the last one year, NNPC had improved capacity utilisation of the refineries with the projection that they would attain supplying 50 per cent of the non-gasoline white products to the nation, including Diesel and Kerosene that are commonly consumed in the Country.

    The GMD said after more than seven years of dormancy, the Asphalt Blowing Unit of the Kaduna Refining and Petrochemical Company, KRPC, was resuscitated to meet road construction needs in the Country.
    He declared that efforts were ongoing to secure 3rd party financing to revamp the refineries to their full operational capacities.

    Drawing his address to a close, Dr. Baru disclosed that the overwhelming support he received from the Corporation’s staff and the Industry’s in-house Unions, Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, and Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, contributed to the successes recorded by NNPC Management under his leadership in the past year.

    “I look forward to your continued cooperation and support as we navigate the Corporation out of its current challenges towards profitability with integrity and transparency,” the GMD stated.

  • IAEA storms Nigeria to assess nuclear regulatory infrastructure

    • Reps raise nuclear materials security concerns

    The Integrated Regulatory Review Service (IRRS) mission of the International Atomic Energy Agency (IAEA) yesterday stormed Nigeria to assess the nuclear infrastructure in the country.

    Speaking at the opening ceremony in Abuja, the Director General, Nigerian Nuclear Regulatory Authority (NNRA), Prof. Lawrence Dim, noted that the “IAEA and international nuclear professionals and experts in the field of nuclear science and technology, are in Nigeria today (yesterday) to assess our regulatory infrastructure.”

    He explained that the IAEA had selected its professionals on the basis of competence and expertise to inspect Nigerian’s nuclear regulatory infrastructure.

    Dim, acknowledged the fact that the nuclear regulatory process is international in nature and the practice are always advocated and applied.

    The authority, according to him, will become an independent nuclear regulator when the nuclear safety, security and safeguard bill is signed into law.

    He added that NNRA has prepared the bill which the IAEA has reviewed and is now set for onward presentation to the National Assembly for passage into law.

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who declared the ceremony opened, said that the ministry will continue to live up to its expectation of ensuring nuclear safety while celebrating closely with an international agency such as IAEA, and its expert advice, radioactive equipment and training.

    His Senior Special Technical Adviser, Mr. Adegbite Adeniji who represented him, said that Nigeria was grateful to the international agency for granting her request for a peer review.

    Meanwhile, the IRRS Coordinator, Mr. Theodros Hailu, disclosed that the mission was to assess the national regulatory framework of nuclear, radiation and safety.

    The team, he said, which would remain in Nigeria in the next 12 days, will send its findings and recommendations to the federal government.

    The chairman, House Committee on Petroleum Upstream, Hon. Victor Nwokolo raised concern about the security of nuclear materials in Nigeria.

    Speaking with journalists, he explained that “what I was saying is that one, as days pass by, the nuisance in our society develop more sophisticated methods of bringing arms against the state.

    “In a nutshell or in a very clear language, we want these materials to be properly secured so that this issue of a bomb blast, the same materials that are used in our mining sector, the same materials that are used by our quarries, are what they also use in this crime.”

    He noted that the propensity to use the materials for committing a crime has made it necessary to ensure that they do not go to the wrong hands.

  • Nigeria to hit 40b barrels oil reserve by 2020

    Nigeria to hit 40b barrels oil reserve by 2020

    • As NNPC/FIRST JV secure over $700 Schlumberger funding for new filed

    The plan by the Nigerian National Petroleum Corporation to grow the nation’s crude oil reserves to 40 billion barrels by the year 2020 received a major boost on Thursday with the execution of a tripartite agreement in Abuja.

    The agreement was between the NNPC/FIRST Exploration & Production Joint Venture and Schlumberger for the development of the Anyalu and Madu fields in the Niger Delta under Oil Mining Licence, OML 83 and OML 85, offshore Nigeria.

    Under the agreement, Schlumberger would provide the over $700 million development cost of the Anyala and Madu fields which would generate 193 million barrels of crude oil into the current reserves of 37.2billion barrels and an additional 800 billion cubic feet of gas into the nation’s proven gas reserves which currently stand at 197 Trillion Cubic feet of gas.

    In terms of daily production, the fields will yield 50, 000 barrels of crude oil per day and 120 million standard cubic feet of gas per day by early 2019.

    Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr. Maikanti Baru, said the innovative approach to funding JV operations in response to the challenging economic environment was novel and aligned wholly with the government’s aspiration to increase crude oil and gas production, reserves growth and monetization of the nation’s enormous gas resources.

    He added that apart from serving as a test case for future funding mechanism, the approach adopted was in sync with the realisation of the corporation’s 12 Business Focus Areas (BUFA) which is to ramp up crude oil production and reserves growth, amongst others.

    He said the projected increase in production of gas would come in handy as the Corporation strived to sustain the supply of gas to the existing power plants as well as the planned power projects billed to come on board within the period.

    Managing Director and CEO, FIRST E&P, Ademola Adeyemi-Bero, who signed on behalf of FIRST E&P, remarked that the partnership between the NNPC/FIRST E&P JV and Schlumberger would infuse a novel asset development model which combines FIRST E&P’s local knowledge and market position as an indigenous operating company, with Schlumberger’s financing and broad technical capabilities.

    He added that the joint project team would strengthen FIRST E&P’s project delivery abilities and the model would offer the Upstream subsector a credible alternative funding and technical partnership model for growing production and adding reserves.

    On his part, Patrick Schorn, Vice President, Schlumberger, who signed on behalf of Schlumberger traced the advent of the multi-national oil fields service company in Nigeria to the first commercial oil find in Oloibiri when Schlumberger played a role in Shell’s drilling effort.

    He noted that the partnership with NNPC and FIRST E&P would provide Schlumberger the opportunity to leverage on its reservoir knowledge, oil field services and project management expertise to lower development costs and maximize value for the partners.

    The OMLs 83& 85 are in shallow waters 40 km offshore in the Niger Delta, NNPC holds 60% interest in the licences while, FIRST E&P, the operator of the JV, holds the remaining 40% interest. Apart from providing funding for the development of the fields, Schlumberger would also provide other Oilfield Services to the JV on a limited exclusive basis.

    A joint project team would be established to drive technology transfer whilst leveraging on the global technical expertise of Schlumberger and the extensive local knowledge of the JV partners.

  • France to invest over €1b in Nigeria oil industry

    France to invest over €1b in Nigeria oil industry

    The French Government has said that it has set aside about one billion euros to be invested in the Nigeria Oil and Gas industry, stating that Nigeria remains her first economic trading partner in Africa.

    France Ambassador to Nigeria, Denys Gauer, declared this when the Group General Manager, Group Public Affairs Division (GPAD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Ndu Ughamadu, led a delegation to his office in Abuja.

    Mr. Gauer said that French Development Agency has put in place about one billion Euros to encourage French investors to invest in the Nigeria Oil and Gas sector, adding that the French government is also cooperating with the Federal Government in the fight against Boko Haram insurgency.

    The French Ambassador commended the Federal Government for stemming the Niger Delta insecurity situation noting that Total, a French multinational Oil and Gas Company, had significant investment equity in the Nigeria Liquefied Natural Gas Limited (NLNG) and Egina project.

    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this known in a statement on Tuesday.

    He however, expressed concern that some other French companies were having challenges with the unclear Nigeria’s fiscal policies in the Oil and Gas sector revealing that some French investors were currently developing wind energy and solar energy in Katsina State.

    Earlier, the Group General Manager, Group Public Affairs Division of NNPC, Mr. Ughamadu, said the Corporation under the current management led by the Group Managing Director, Dr. Maikanti Baru, was well positioned and open to investment opportunities from the French Government and investors.

    Mr. Ughamadu noted that with the significant scale down in pipeline vandalism and insecurity which has boosted oil production, global investors such as the French Government can now invest in renewable energy, gas and power infrastructural development, pipeline construction, storage facility and the direct sales and direct purchase of Nigeria crude oil grades.

    He said the NNPC as the state-owned oil and gas Corporation had global operations and called for closer collaboration between the French Government and the Corporation especially in the area of consular services in order to enable NNPC top executives and staff meet their global engagements.

    The GGM thanked the Ambassador for the warm reception accorded the NNPC delegation and assured him that with the leadership of the new NNPC management, the Corporation was determined to develop a robust business atmosphere for investors.

  • Reduce agitation with PIB – South south OMPALAN youths

    Reduce agitation with PIB – South south OMPALAN youths

    Following the October 1 quit notice that the Coalition of Northern Youths have given to the Igbo living in the north, the Youths from the South-South zone of our Country under the umbrella body of Oil & Solid Mineral Producing Area Landlords Association of Nigeria (OMPALAN) yesterday urged the National Assembly to pass the Petroleum Industry Bill (PIB) into law to reduce agitation and restiveness of the different ethnic groups.

    The association also urged Federal Government to address the challenges in the solid minerals host communities for easy job creation that will bring peace and development.

    Condemning the notice in a statement that the youths signed and released to The Nation, they submitted that Nigeria needs now is “Peace and Unity” which is chief among the Vision & Mission of OMPALAN.

    The statement which the Leaders of the youths, Hon. Ngokanya, Benjamin and Captain John Victor Etim signed noted that the youths met in Port Harcourt, Rivers State.

    The other members that were in attendance, according to the statement, were Hon. Benjamin Ngokanya, Captain John Victor Etim, Barr. Dave Owate Wokoma, Barr Favour Okokon, Mr. Dandy Loveday, Harry Aparama Kelvin, Envang. Benard Oluka, Jeff Nwafor Eric Dudu Obeta, Umeh Christian, and Hon Asukwo Effiong.
    The youths said that God has blessed every state of Nigeria with one mineral deposit or the other that the nation is yet to harness.

    They added that: “We, therefore, implore the Federal Government to explore these rich and diverse endowments in order to create new jobs for sustainable development goals.

    “As key stakeholders who believe firmly in the Nigeria Project, the South-South OMPALAN youths advocate for the passage of the Petroleum Industry Bill (PIB) for the the host communities by the National Assembly which should equally be extended to solid mineral producing States so as to reduce youth restiveness and other forms of agitations that impede development  as we believe that Nigeria can thrive and develop faster when the God-given natural resources impact host communities positively and commensurately.”

    The group commended acting President Prof. Yemi Osinbajo for rising to the threat and suing for peace across the length and breath the country through the meetings with the 36 State Governors of the Federation and leaders of the South East and Northern Nigeria.

    Continuing, the association’s youths said that: “We cannot blame the entire Igbo’s or South East region for the isolated actions of a tiny but, vocal group (ISOB and MASSOP) in much the same way the North East region cannot be blamed and penalized for the monumental destructions and killings occasioned by Boko Haram which has cost the taxpayer in Nigeria trillions of Naira.

    “No section of our nation can be seen or said to be greater than the entire Country, Nigeria. Our unity in diversity should be guarded jealously by every citizen of this great Country. As such, hate speeches and tribal threats will only help to destroy our unity and threaten constitutional peace.”

    The South-South youths “called on the coalition of northern youths to support the rule of law and shun disgruntled politicians who are working to truncate the hard-earned democratic experiment in Nigeria because this great Country belongs to everyone citizen of Nigeria especially the youths who will grow to take over the management of the Country.

    “We equally advise the IPOB and MASSOB to sheath the sword and be part of Nigeria’s indissoluble sovereignty and unity. Our refrain should be ‘One Nigeria! Every Nigerian’. OMPALAN stands for one united and sovereign Nigeria for every Nigerian in any part of Nigeria. We are willing to engage both the coalition of Northern Youths, IPOB, MASSOB and other aggrieved organisations in a dialogue to build peace development across the entire Country in order to strengthen corporate governance.

    “All forms of agitations and threats for secession across the Country should cease forthwith. Our political leaders and elders should come to a round table discussing without further delay to fashion a way forward for our dear Country and remove the fragile peace process from limbo aware that so many Countries are looking up to us for leadership and inspiration.

    “Finally, the S’South youths of OMPALAN requests the Presidency to convene a youth summit of major youth formations across Nigeria to drum support for the rule of law and douse the tension generated by the treasonable and shocking statement credited to the coalition of northern youths asking the Igbos to leave the north.

    “There is only one Nigerian Government with one constitution. The sit at home order and hate speeches only convey the treasonable message within Nigeria and beyond that, there are three parallel governments in the Country managed jointly by the Federal Government, the coalition of northern youths and secessionist movements.

    “This ugly development has dire consequences on national security and stability, especially in the nation’s oil fields. We expect the nation’s robust security agencies to deploy their arsenal effectively to bring the prevailing security threats that are burning like wildfire under control and guarantee the right of every law-abiding citizen of sovereign Nigeria to live and work in any part of the Country without fear or molestation.”