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Tag: Nestoil

  • Nestoil Group chair honoured

    Nestoil Group chair honoured

    In recognition of his outstanding contributions to Nigeria’s oil and gas industry, as well as his commitment to corporate excellence and philanthropy, Ernest Azudialu-Obiejesi, Chairman of Nestoil Group, has been named the Telegraph Newspaper’s Businessman of the Year 2024.

    The prestigious award was presented to him on February 21, 2025, at the New Telegraph Awards Ceremony at the Balmoral Event Center, Federal Palace Hotel, Victoria Island, Lagos.

    Read Also: Troops kill 217 terrorists, arrest 122 oil thieves in February

    The event, attended by industry leaders, policymakers, and dignitaries, celebrated individuals and organizations that have significantly contributed to national development in various sectors.

  • Fix Liquidity Issues in Power Sector – Nestoil CEO urges FG

    Director of Nestoil Limited Dr Ernest Obiejesi said Power sector holds the key to stimulating growth in the domestic market.

    Dr Obiejesi spoke at the 4th Nigeria Gas Conference which held in Abuja.

    The Nestoil boss said the gas supply industry in Nigeria will experience a boom if the liquidity issues in the power sector were fixed. He explained that the Power sector accounts for over 80% of the domestic gas off take market.

    According to him, liquidity issues in the Power sector means that gas producers are owed huge sums of money for gas they have supplied. Dr Obiejesi said this situation is a huge disincentive for gas producers to invest heavily in any form of gas gathering infrastructure.

    The Nestoil Group Managing Director commended the Federal Government for the recent Gas Flaring Regulation embedded in the 2017 Gas Policy, which he described as an audacious and innovative step by Government to discourage gas flaring.

    He said this initiative was however not far reaching enough. According to him, a permanent solution would be to address the liquidity issues in the downstream and power sectors to encourage much needed investments in gas gathering infrastructure that would eliminate gas flaring.

    “Everyone agrees that a willing-buyer-willing seller arrangement is what will ultimately unbundle the Gas industry in Nigeria and across the West Coast but Government must be ready to make the right seed-investments and take the tough decisions that will enable the gas supply market grow into maturity,” said Dr Obiejesi.

    The Group Managing Director of Nestoil urged Government to continue to encourage indigenous players in the Oil and Gas industry. “OML 42, which we acquired in 2011 was fraught with a lot of challenges at the time it was sold by the IOCs. We are proud to announce however that Gas production of 40MMScf per day is set to be introduced to the domestic gas supply network by the end of this week with another 40MMScf per day being targeted for end-November 2018 for a total of 80MMScf per day by the end of this year”.

    Nestoil is Nigeria’s largest indigenous Engineering, Procurement, Construction and Commissioning (EPCC) Company in the Oil and Gas sector and has been a significant contributor to the industry since inception in 1991.

    With over 1,500 direct employees, Nestoil continues to redefine industry standards in Pipeline Construction, Repairs and Maintenance with associated facilities for Dredging, River Crossing and Shoreline Protection. Its sister company Neconde is an Oil exploration and production company.

  • Nestoil wants bolder initiatives to boost gas supply

    The Group Managing Director of Nestoil Limited, Dr Ernest Obiejesi, says the Power sector holds the key to stimulating growth in the domestic market.

    He spoke at the 4th Nigeria Gas Conference which held in Abuja, recently.

    According to him, the gas supply industry in Nigeria will experience a boom if the liquidity issues in the power sector were fixed. He explained that the Power sector accounts for over 80 percent of the domestic gas off take market. Obiejesi explained that liquidity issues in the power sector means that gas producers are owed huge sums of money for gas they have supplied. He added that the situation is a huge disincentive for gas producers to invest heavily in any form of gas gathering infrastructure.

    The Nestoil boss commended the Federal Government for the recent Gas Flaring Regulation embedded in the 2017 Gas Policy, which he described as an audacious and innovative step by Government to discourage gas flaring, but  not far reaching enough.

    According to him, a permanent solution would be to address the liquidity issues in the downstream and power sectors to encourage much needed investments in gas gathering infrastructure that would eliminate gas flaring.

    “Everyone agrees that a willing-buyer-willing seller arrangement is what will ultimately unbundle the Gas industry in Nigeria and across the West Coast but Government must be ready to make the right seed-investments and take the tough decisions that will enable the gas supply market grow into maturity,” said Obiejesi.

    He further urged government to continue to encourage indigenous players in the Oil and Gas industry. “OML 42, which we acquired in 2011 was fraught with a lot of challenges at the time it was sold by the IOCs. We are proud to announce however that Gas production of 40MMScf per day is set to be introduced to the domestic gas supply network by the end of this week with another 40MMScf per day being targeted for end of November 2018 for a total of 80MMScf per day by the end of this year,” he said.

  • Why OB3 pipeline project is delayed, by Nestoil

    Nestoil has attributed the delay in the completion of the East-West pipeline project to incessant rainfall, resulting in flooding of the operational areas.

    The company’s Executive Director, Dr. Chukwueloka Umeh, said the pipeline project, also known as Obiafu, Obrikom, Oben (OB3) gas pipeline, was also impacted by militancy and the difficulty encountered in crossing the River Niger.

    He told The Nation that a delegation from the Vice President’s office, as well as from the Senate and the House of Representatives have inspected the project.

    ‘’They saw the challenges we faced and the level of work done and they were impressed and commended us,’’ he said.

    According to him, the Nestoil’s part of the project has reached 87 per cent completion. ‘’We have finished the welding and are joining the spools and burying the pipes and expect to complete it by the first or second quarter of 2019, if the polity is stable considering that it is election year.

    Umeh said: “The project is divided into two. Oilserve is supposed to do half of the pipeline and Nestoil, the other half. But one thing that has not been told and most Nigerians don’t know about the project is that the pipeline starts from Rivers State,  and passes to Delta State. The topography the pipeline traverses is such that some part is mostly on land and the other mostly on seasonal swamp.

    “Nestoil being known as an expert for working in seasonal swamp got that section of thee job. So, from Omoku in Rivers State to Delta State during the rainy season, most of the pipelines we work is under water. Also, imagine the weight of 48-inch diameter pipeline. There is no way you can handle that kind of pipeline in the water while work is ongoing. We have reached about 87 per cent completion on the project. It is important to note that we have to weld the pipeline, dig the ground, put the pipeline, sometimes you have to put some weight on the pipes before you bury them.

    “So, when the ground is waterlogged, you cannot do much about welding for the safety of the workers and there is no equipment you can use for the welding under water. You cannot also bury the pipeline when the place is full of water. That is the major challenge we are facing. From when we started this project, when it was signed in 2012 and now, the rainfall pattern in the country has changed. There has been big flooding within these past years. A lot of that flooding happened in the areas where we work on the pipeline in Rivers State. Currently, we are supposed to do horizontal Directional Drilling (HDD) to cross the pipeline under the River Niger, which is about two kilometres. It has never been done in this country before for this size of pipe. It has been done in other parts of the world, but the longest pipeline crossing of this size that has been done in other parts of the world is about 1.8 kilometres. The one we are doing on the River Niger is longer; so, this pipe will set the world record for doing HDD.

    “We are in rainy season, the River Niger banks are overflowing.The equipment we use to the HDD, water has covered them. Therefore, there is nothing we can do. When people say Nestoil is delaying the project, they don’t take into account where it is working.

    ‘’Oilserv has done a great job by finishing their scope, but theirs is mostly on land. Nestoil is on seasonal swamp, so we have several months in a year that we can do work effectively. We have lost much equipment to this project because of the swamp.

    ‘’When you are working and rain starts and it gets to a certain level, you may not be able to bring out your equipment and you abandon them there until dry season comes. When you come back in dry season, a lot of the equipment are already gone and you cannot use them anymore. You have to start overhauling them.

    “The communities where we work are also a factor. Omoku is the epicenter of this project and you know what militants do there. We deal with the communities every day. Sometimes, you are stopped from working for one reason or the other. Sometimes, warring militant groups compel us to stop work. Those things cause delays because you have to think safety of your staff first. Sometimes last year, 14 of my workers were kidnapped in a day. These are people working on the OB3 project, this made workers scared of going to work. How do you work in these kind of areas and expected to deliver on schedule?

    “Rainfall pattern is changing not just in Nigeria but everywhere. The Meteorological Association of Nigeria has predicted that this year rainfall in Nigeria will increase by 10 per cent and it is happening. Water levels have risen much quicker than last year. Some of my equipment are stuck on the right of way and these equipment are not cheap. In these instances, there is nothing you can do but we have been able to manage to this point. We have a schedule for completion that we agreed with the client (Nigerian National Petroleum Corporation). The client has been good even as a partner because they understand the challenges that we face. We have device ways of tackling the challenges on daily basis, we discuss with our client and we work together to proceed.”

    The multi-million dollar OB3 gas pipeline is expected to increase domestic gas supply by two billion standard cubic feet per day (bscf/d) when it begins operation later in the year. At inception, the project was estimated to cost over $400 million.

  • Nestoil to offload Neconde’s OML 42 asset to settle debt

    The management of Nestoil, the oil service arm of the  Obijackson Group, is to offload part of its shares in oil mining lease (OML) 42 in the Western Niger Delta,  to pay its debts to banks. The field is operated by Neconde Energy Limited.

    According to Oil+Gas Report, Nestoil holds 80 per cent of Neconde and is the prime mover of its special purpose vehicle (SPV) creation, which took over Shell/Total/ENI’s 45 per cent stake in the acreage in 2012. The remaining 55 per cent is held by the Nigerian National Petroleum Corporation (NNPC) and managed by its exploration and production arm, Nigerian Petroleum Development Company (NPDC).

    Obijackson Group is owned by Nigerian business mogul Dr. Ernest Azudialu.

    Explaining the reason for the planned sale of equity by Nestoil, the report noted that creating value from the asset has been an epic struggle. While Neconde paid $585 miliion to buy the 45 per cent, it has found it difficult to reach and maintain optimum output and price to pay back the debts and also fund the needed expansion.

    The struggle first started with the NPDC, which was chosen as the operator of the OML 42 field on takeover from Shell and partners. NPDC’s alleged inefficiency and struggle for the operatorship of the asset kept production at a very suboptimal level of less than 20,000 barrel per day (bpd) for over three years.

    Besides, within the same period of struggle for the operatorship of the field, crude oil price crashed and worsened a bad situation and the Niger Delta militants struck and bombed the crude evacuation pipeline of the field, the Forcados pipeline, forcing the terminal to shut down for 16 months between February 2016 and June 2017.

    However, out of the $585 million paid for the asset, the consortium partners (Nestoil, Yinka Folawiyo and KOV) paid $435 million as equity and collectively raised $150 million as debt, but what’s not clear is how much of the $435 million equity was raised as debt by the members of the SPV.

    Efforts made by The Nation for further clarifications from the Managing Director/Chief Executive Officer of Neconde Energy, Mr. Frank Edozie, did not yield any fruit as calls and text messages sent to him failed to elicit response.

    But last year, Obijackson Group Chairman, Dr. Azudialu and Mr. Edozie, at a press briefing in Lagos, lamented the huge financial challenges facing Neconde Energy following the hiccups faced by the downturn in the global oil gas industry since 2014. The challenges, especially crash in price coupled with security issues in the Niger Delta and struggle for operatorship, which stalled production increase, made it difficult to operate profitably to pay the banks.

    At a press briefing meant to alert the public of the plans by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to picket Neconde Energy, following labour issues within the company, the management decried PENGASSAN’s action, considering the enormous challenges already facing the firm.

    Azudialu said the Neconde employees, including those that had left the company, wanted transfer allowances for being transferred to Delta State where the oil field is located while the $558million borrowed from Nigerian banks and other international finance firms to acquire the asset have not been repaid in its and another loan, which is almost the same amount used to repair the facilities and interests are only being serviced. Therefore, the employees, who want to leave the company should take the company’s existing severance package.

    According to Edozie, the potential production from the asset was 100,000 barrels per day (bpd) at the time of purchase, but on completion of the acquisition, production was about 52,000 bpd. Following the long battle for operatorship of the field, attacks on oil facility, especially the blowing up of the Forcados pipeline on February 13, 2016, which is the only means of transporting oil from the fields to the terminal, production dropped to zero. He added that the firm has started to ramp up production and expects to increase output to 70,000bpd.

     

  • Debts: Nestoil to offload shares in Neconde’s OML 42 asset

    The management of Nestoil, the oil service arm of the  Obijackson Group, owned by Nigerian business mogul Dr. Ernest Azudialu, is to offload part of its shares in oil mining lease (OML) 42 in the Western Niger Delta, which is operated by Neconde Energy Limited, to pay its debts to banks.

    According to Oil+Gas Report, Nestoil holds 80 per cent of Neconde and is the prime mover of its special purpose vehicle (SPV) creation, which took over Shell/Total/ENI’s 45 per cent stake in the acreage in 2012. The remaining 55 per cent is held by the Nigerian National Petroleum Corporation (NNPC) and managed by its exploration and production arm, Nigerian Petroleum Development Company (NPDC).

    Explaining the reason for the planned sale of equity by Nestoil, the report noted that creating value from the asset has been an epic struggle. While Neconde paid $585 miliion to buy the 45 per cent, it has found it difficult to reach and maintain optimum output and price to pay back the debts and also fund the needed expansion.

    The struggle first started with the NPDC, which was chosen as the operator of the OML 42 field on takeover from Shell and partners. NPDC’s alleged inefficiency and struggle for the operatorship of the asset kept production at a very suboptimal level of less than 20,000 barrel per day (bpd) for over three years.

    Besides, within the same period of struggle for the operatorship of the field, crude oil price crashed and worsened a bad situation and the Niger Delta militants struck and bombed the crude evacuation pipeline of the field, the Forcados pipeline, forcing the terminal to shut down for 16 months between February 2016 and June 2017.

    However, out of the $585 million paid for the asset, the consortium partners (Nestoil, Yinka Folawiyo and KOV) paid $435 million as equity and collectively raised $150 million as debt, but what’s not clear is how much of the $435 million equity was raised as debt by the members of the SPV.

    Efforts made by The Nation for further clarifications from the Managing Director/Chief Executive Officer of Neconde Energy, Mr. Frank Edozie, did not yield any fruit as calls and short messages sent to him were not responded to.

    But last year, Obijackson Group Chairman, Dr. Ernest Azudialu and Mr. Edozie, at a press briefing in Lagos, lamented the huge financial challenges facing Neconde Energy following the hiccups faced by the downturn in the global oil gas industry since 2014. The challenges, especially crash in price coupled with security issues in the Niger Delta and struggle for operatorship, which stalled production increase, made it difficult to operate profitably to pay the banks.

    At a press briefing meant to alert the public of the plans by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to picket Neconde Energy, following labour issues within the company, the management decried PENGASSAN’s action, considering the enormous challenges already facing the firm.

    Azudialu said the Neconde employees, including those that had left the company, wanted transfer allowances for being transferred to Delta State where the oil field is located while the $558million borrowed from Nigerian banks and other international finance firms to acquire the asset have not been repaid in its and another loan, which is almost the same amount used to repair the facilities and interests are only being serviced. Therefore, the employees, who want to leave the company should take the company’s existing severance package.

    According to Edozie, the potential production from the asset was 100,000 barrels per day (bpd) at the time of purchase, but on completion of the acquisition, production was about 52,000 bpd. Following the long battle for operatorship of the field, attacks on oil facility, especially the blowing up of the Forcados pipeline on February 13, 2016, which is the only means of transporting oil from the fields to the terminal, production dropped to zero. He added that the firm has started to ramp up production and expects to increase output to 70,000bpd.

  • Debts: Nestoil to sell some shares in Neconde’s OML 42 asset

    The management of Nestoil, the oil service arm of the Obijackson Group, owned by Nigerian business mogul Dr. Ernest Azudialu, is to offload part of its shares in oil mining lease (OML) 42 in the Western Niger Delta, which is operated by Neconde Energy Limited, to pay its debts to banks.

    According to Oil+Gas Report, Nestoil holds 80 per cent of Neconde and is the prime mover of its special purpose vehicle (SPV) creation, which took over Shell/Total/ENI’s 45 per cent stake in the acreage in 2012. The remaining 55 per cent is held by the Nigerian National Petroleum Corporation (NNPC) and managed by its exploration and production arm, Nigerian Petroleum Development Company (NPDC).

    Explaining the reason for the planned sale of equity by Nestoil, the report noted that creating value from the asset has been an epic struggle. While Neconde paid $585 miliion to buy the 45 per cent, it has found it difficult to reach and maintain optimum output and price to pay back the debts and also fund the needed expansion.

    The struggle first started with the NPDC, which was chosen as the operator of the OML 42 field on takeover from Shell and partners. NPDC’s alleged inefficiency and struggle for the operatorship of the asset kept production at a very suboptimal level of less than 20,000 barrel per day (bpd) for over three years.

    Besides, within the same period of struggle for the operatorship of the field, crude oil price crashed and worsened a bad situation and the Niger Delta militants struck and bombed the crude evacuation pipeline of the field, the Forcados pipeline, forcing the terminal to shut down for 16 months between February 2016 and June 2017.

    However, out of the $585 million paid for the asset, the consortium partners (Nestoil, Yinka Folawiyo and KOV) paid $435 million as equity and collectively raised $150 million as debt, but what’s not clear is how much of the $435 million equity was raised as debt by the members of the SPV.

    Efforts made by The Nation for further clarifications from the Managing Director/Chief Executive Officer of Neconde Energy, Mr. Frank Edozie, did not yield any fruit as calls and short messages sent to him were not responded to.

    But last year, Obijackson Group Chairman, Dr. Ernest Azudialu and Mr. Edozie, at a press briefing in Lagos, lamented the huge financial challenges facing Neconde Energy following the hiccups faced by the downturn in the global oil gas industry since 2014. The challenges, especially crash in price coupled with security issues in the Niger Delta and struggle for operatorship, which stalled production increase, made it difficult to operate profitably to pay the banks.

    At a press briefing meant to alert the public of the plans by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to picket Neconde Energy, following labour issues within the company, the management decried PENGASSAN’s action, considering the enormous challenges already facing the firm.

    Azudialu said the Neconde employees, including those that had left the company, wanted transfer allowances for being transferred to Delta State where the oil field is located while the $558million borrowed from Nigerian banks and other international finance firms to acquire the asset have not been repaid in its and another loan, which is almost the same amount used to repair the facilities and interests are only being serviced. Therefore, the employees, who want to leave the company should take the company’s existing severance package.

    According to Edozie, the potential production from the asset was 100,000 barrels per day (bpd) at the time of purchase, but on completion of the acquisition, production was about 52,000 bpd. Following the long battle for operatorship of the field, attacks on oil facility, especially the blowing up of the Forcados pipeline on February 13, 2016, which is the only means of transporting oil from the fields to the terminal, production dropped to zero. He added that the firm has started to ramp up production and expects to increase output to 70,000bpd.

  • Nestoil showcases expertise, innovation at NOG confab

    Nestoil showcases expertise, innovation at NOG confab

    Nestoil Limited showcased its expertise and innovative technology at the just concluded Nigerian Oil and Gas (NOG) conference in Abuja.

    The annual conference organised in collaboration with the Ministry of Petroleum Resources and Nigeria National Petroleum Corporation (NNPC) with support from the private sector has remained the industry’s must-attend event, attracting participation from both local and international key decision makers; participating companies and exhibitors from the entire oil and gas value chain.

    This conference discussed salient issues bordering on the future of the industry. Some of the issues included Nigerian National Petroleum Corporation’s commercial strategy and priorities, the impact of legislative amendments related to the Oil & Gas industry, tackling crude oil theft and pipeline vandalism through stakeholder collaboration and how policy changes can create an attractive and viable investment environment. The Nigerian Content seminar discussed strategies for increasing national capacity, value and capital retention.

    As Nigeria’s leading provider of engineering, procurement, construction and commissioning (EPCC) services, Nestoil and its sister companies exhibited alongside over 250 companies and major players in the Nigerian energy sector, to showcase industry-defining expertise and innovative technologies.

    Nestoil leveraged this year’s conference theme “A journey towards transformation,” to showcase the growth of indigenous capacity to investors and international oil companies. Over the past two decades, Nestoil has affirmed its industry leadership through execution of technically complex projects, which have contributed to the efficiency of its clients in the oil, gas and energy sectors of the Nigerian economy.

    The company’s Group Managing Director, Dr. Ernest Obiejesi-Azudialu described the NOG as Nigeria’s version of the Offshore Technology Conference (OTC) held annually in Texas and enjoined operators to explore the opportunities afforded by the gathering to show our country’s potential to foreign investors and highlight the benefits of doing business in Nigeria.

    He said: “Let us take the Nigerian Oil and Gas Conference as our version of the Offshore Technology Conference and leverage the opportunities it presents to highlight our economic potential to the world. Nigeria is currently undergoing a process of rebirth that will bring prosperity to everyone. As Nigerians, we have a duty to help the world understand this, and showcase the opportunities that come with the transformation that occurs in every facet of our lives as a people.”

  • Nestoil to deliver multi-million dollar gas pipeline in 2016

    Nestoil, a local oil firm, is set to deliver multi-million dollar gas pipeline in 2016, the Group Managing Director, Obijackson Group, Dr Ernest Azudialu Obiejesi has said.

    The group is the parent company of Nestoil that is building the pipeline.

    Obiejesi said the pipeline known as OB3 pipeline is 48 inches by 67 kilometres, will help in transporting gas to power generation plants to improve electricity generation and supply.

    He said the pipeline would help in delivering gas to power plants located in the Niger Delta region and other parts of the country.

    Obiejesi said the pipeline is one of the major projects being executed by the Group, adding that the project was part of efforts to contribute to the growth of the nation’s energy sector.

    He said: “The pipeline known as OB3  is 48 inches by 67 kilometres. The pipeline is scheduled for completion in the first quarter of 2016. When the pipeline is completed, it would help in transporting gas from all the fields towards Oben across the Delta and to Escravos –Lagos pipeline where gas is supposed to be evacuated for the West and the Northern regions.

    He, however, said the completion of the project may be delayed till first quarter of 2017 in the event there are problems from the communities where the pipeline would pass.

  • Nestoil PLC holds management retreat in Uyo

    NESTOIL PLC, the flagship company of The Obijackson Group, is holding a three-day Management retreat, from January 9 – January 11, in Uyo, Akwa Ibom State. The purpose of the retreat is to appraise the company’s activities so far, as well as to define and align strategies for an improved performance in 2014. In a statement from the company, “Uyo, Akwa Ibom State was selected to host this retreat because of its excellent safety records and amenities, which are among the best in the country.” The statement also said that the Management retreat would be “one of many ways in which Nestoil PLC and the other companies in the Obijackson Group assemble to brainstorm and chart the course towards an even more effective output going forward.” Nestoil PLC, a diversified Oil and Gas company, has invested heavily in Engineering and major offshore fabrication since its inception 23 years ago. The company belongs to the formidable conglomerate, the Obijackson Group, which has extensive interest in Pipeline construction, Exploration and Production (E&P), Pressure Vessel Fabrication, Power Generation, Dredging and Marine Logistics as well as Civil and Infrastructural construction