Tag: Oil

  • GHL: how 93 oil rig workers were endangered by FBN

    GHL: how 93 oil rig workers were endangered by FBN

    General Hydrocarbons Limited (GHL) has faulted a claim of diversion of oil mining proceeds made against it by First Bank of Nigeria Limited.

    The bank had accused GHL of being indebted to it to the tune of $225 million, which the company denied following the freezing of its accounts via a Mareva injunction.

    Reacting to the bank’s diversion allegation and denial of court process abuse, GHL said in a second right of reply which it published yesterday: “It is not our intention to respond to every misinformation or inaccurate information put out by First Bank on the matter with GHL. We will respond to three points for clarity.

    “Diversion: First Bank keeps talking about diversion of funds by GHL without providing any evidence. Here are the facts.

    “As we said before and will repeat now, all GHL contracts and invoices were vetted and paid by FBN through their Credit and Risk teams directly to ALL service providers.

    “FBN’s repeated failures to pay on time within the contractual framework of 5 days which became up to 70 days or not at all, in a clear breach of its Tripartite Agreement obligations as captured below:

    “This failure to pay GHL pending request as per above terms led to an international incident on October 7, 2023, when the drilling rig, Blackford Dolphin, ran out of fuel, food, water and other critical supplies with 93 souls on board, and the Rig was on the verge of declaring MAYDAY.

    “The Managing Director and Executive Director of FBN were abroad and the current Managing Director, Olusegun Alebiousu, who was then the Chief Risk Officer (CRO), was acting for the Managing Director and GHL brought this matter to his urgent attention.

    “He then worked the phone, calling Suppliers and Service Providers one after the other and promised payment within three days. Based on FBN’s assurances, the Service Providers made emergency supplies, but the payment never came.

    “To ensure the safety of life and continuing security at 75KM Offshore Nigeria, GHL had to enter an Irrevocable Third-Party Payment Order with one of the Offtakers to pay the suppliers directly, which stabilised the operation. FBN was later given evidence of the payments made. That is what FBN calls Diversion.

    “We will meet FBN in court with daily reports and log details to debunk this continuing misinformation of diversion.

    “GHL acted to save 93 souls, most of them foreign nationals, who had begun contacting their embassies and home governments, and to save Nigeria from an international incident offshore Nigeria.

    “We are ready, willing and able to present the body of evidence to any court, including the continuing non-payment to Century FPSO and other service providers by FBN despite repeated demands in line with signed agreements.

    “Indeed, we had to cough out our own cash as reflected in our audited financial statements to keep the project afloat or go to court to seek protective reliefs.

    “On abusing the court process and failure to comply with a valid court order, FBN claimed they went to court on a different matter with regards to the Facility Agreement.

    “But Justice Ambrose L. Allagoa had given his judgment after hearing both sides on the Facility Agreement, amongst other issues on December 12, 2024. ‘That an order is granted, restraining the respondent (FBN) either by itself, or acting through its servants, agents, assigns, privies, affiliates howsoever described, including any persons claiming under its authority from making any calls or demands, or taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of the Applicant (GHL) which have been charged as security for the facility agreements in respect of the Applicant’s operation of OML 120, including but not limited to the side letter, and the amended and restated agreements between the Applicant and the Respondent pending the hearing and determination of the arbitration proceedings between the Applicant and the Respondent brought pursuant to Clause 12(c) of the Agreement between the Applicant and the Respondent dated 29th May 2021.’

    “FBN then went to Justice D Dipeolu of the same Federal High Court on December 30, 2024, with the same lawyers, without disclosing this relevant judgment to the Learned Justice, to obtain a Mareva injunction Exparte freezing order against GHL and individual directors who never signed personal guarantees and thus not personally liable.

    “Is this how a 130-year-old blue chip financial institution committed to good governance and rule of law, should behave? Why the hurry to score cheap points to use on social media?

    Read Also: Army apprehends 15 over suspected oil theft in Niger Delta

    “If FBN was so sure of its facts why not put GHL on notice? Why an ex-parte? We leave this to the Justices of the Federal High Court to decide on this matter and we will not make any further comment to avoid being sub-judice.

    “Contrary to FBN’s claims, it sought to appoint an Independent Asset Manager to promote corporate governance. What it sought to do was to appoint a company that it could fire at any time to ‘take over GHL’s business, offices and operations within 90 days’ of further disbursement.

    “GHL refused and counter-offered a Joint Operating Committee with FBN and they refused, resulting in the current impasse which they weaponised and made a public spectacle with their publication of their Exparte Mareva Freezing Orders. GHL had to stand its ground against such bullying.

    “This second right of reply has become necessary, again, in view of FBN’s continued misstatement but they have failed to debunk or deny the foundational material facts and seek to eat their cake and have it.

    “Luckily, FBN has not denied the Subrogation MOU and the benefits it got upfront from GHL’s intervention. They should meet their obligations and all will be well. Thank you.”

  • Oil prices surge over supply disruption

    Oil prices surge over supply disruption

    Oil prices reversed early declines yesterday, induced by concerns of tighter Russian and Iranian supply in the face of escalating Western sanctions.

    Brent crude futures advanced 60 cents, or 0.79 per cent.

    It sold for $76.90 a barrel while U.S. West Texas Intermediate (WTI) crude was up 50 cents, or 0.68 per cent. It sold for $74.06.

    The Federal Government’s oil price benchmark in the 2025 budget estimates is $75 per barrel.

    It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

    Concern over sanctions tightening supply has translated into increased demand for Middle Eastern oil, reflected in a rise in Saudi Arabia’s February oil prices to Asia, the first such increase in three months.

    In China, Shandong Port Group on Monday issued a notice banning United States-sanctioned oil vessels from its network of ports, three traders said, potentially restricting blacklisted vessels from major energy terminals on China’s east coast. Shandong Port Group oversees large ports on China’s east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

    Read Also: Federal lawmaker Ukodhiko extols oil magnate, Victor Egukawhore at 59 

    Meanwhile, cold weather in the U.S. and Europe has boosted heating oil demand, though oil price gains were capped by global economic data. Euro zone inflation accelerated in December, an unwelcome but expected blip that is unlikely to derail further interest rate cuts from the European Central Bank.

    “Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the eurozone,” said Panmure Liberum analyst Ashley Kelty.

    Technical indicators for oil futures are now in overbought territory and sellers are keen to step in again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, Head of Research at Onyx Capital Group.

    Market participants are awaiting more data this week, including the U.S. December non-farm payrolls report on Friday, for clues on U.S. interest rate policy and the oil demand outlook.

  • Oil may trade around $70 this year

    Oil may trade around $70 this year

    Oil will likely trade around $70 a barrel this year on weak Chinese demand and rising global supplies, offsetting OPEC+-led efforts to shore up the market, a Reuters monthly poll has showed.

    A weaker demand outlook in China in particular forced both the Organisation of the Petroleum Exporting Countries and the International Energy Agency (IEA) to cut their oil demand growth expectations for 2024 and 2025.

    The IEA sees the oil market entering 2025 in surplus, even after OPEC and its allies delayed their plan to start raising output until April 2025 against a backdrop of falling prices.

    U.S. oil production rose 259,000 barrels per day to a record high of 13.46 million bpd in October, as demand surged to the strongest levels since the pandemic, data from the U.S. Energy Information Administration (EIA) showed yesterday.

    Output is set to rise to a new record of 13.52 million bpd next year, the EIA said.

    Investors will be watching the Federal Reserve’s interest rate-cut outlook for 2025 after Fed bank policymakers this month projected a slower path due to stubbornly high inflation.

    Lower interest rates generally spur economic growth, which feeds energy demand.

    Some analysts still believe supply could tighten next year depending on President-elect Donald Trump’s policies, including those on sanctions. He has called for an immediate ceasefire in the Russia-Ukraine war, and he could re-impose a so-called maximum pressure policy toward Iran, which could have major implications for oil markets.

    “With the possibility of tighter sanctions on Iranian oil with Trump coming in next month, we are looking at a much tighter oil market going into the new year,” said Phil Flynn, a senior analyst for Price Futures Group, also citing firming Indian demand and recent stronger Chinese manufacturing data.

    Read Also: Oil theft: Navy arrest 215 suspects, 26 vessels, others 

    China’s manufacturing activity expanded for a third-straight month in December, though at a slower pace, suggesting a blitz of fresh stimulus is helping to support the world’s second-largest economy.

    Buoying prices yesterday, the U.S. military said it carried out strikes against Houthi targets in Sanaa and coastal locations in Yemen on Monday and Tuesday.

    The Iran-backed militant group has been attacking commercial shipping in the Red Sea for more than a year in solidarity with Palestinians amid Israel’s year-long war in Gaza, threatening global oil flows.

    Meanwhile, U.S. crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.

    Crude stocks fell by 1.4 million barrels in the week ended Dec. 27, the sources said on condition of anonymity. Gasoline inventories rose by 2.2 million barrels, and distillate stocks climbed by 5.7 million barrels, they said

  • Inside the plight of Bayelsa’s oil-producing communities

    Inside the plight of Bayelsa’s oil-producing communities

    Located in the heart of Nigeria’s Niger Delta, Bayelsa State epitomises a paradox of wealth and hardship. Despite its abundant oil reserves that drive the national economy, local communities endure crippling poverty, environmental degradation, and a host of socio-economic challenges. The impact of oil extraction is profound, leaving behind a legacy of ecological damage and human suffering. IBRAHIM ADAM explores the deep-rooted systemic issues plaguing the state, from environmental crises and health emergencies to the erosion of cultural vitality

    Bayelsa State’s oil-producing communities are now at a crossroads despite President Bola Ahmed Tinubu’s pledge to sustain its collaboration with the state government, so as to address oil spills and gas flaring in the Niger Delta region.

    In a new report titled “On-the-Spot Assessment of Oil and Gas Exploration Activities in Bayelsa State, Nigeria,” the Human and Environmental Development Agenda (HEDA Resource Centre) takes a look at the untold challenges facing communities in Bayelsa.

    The report noted that the challenges are immense, but so are the opportunities for transformation, even as it stated that it is imperative for all stakeholders’ the government, corporations and communities to work together to build a sustainable future.

    Some resident’s view aptly captured the above observation when he said: “We want a life where we can thrive without being poisoned by the wealth beneath our feet.”

    Environmental catastrophe

     Despite the immense wealth generated from oil exploitation, the report highlights the severe challenges confronting Bayelsa’s communities. Environmental degradation has reached alarming levels, with relentless oil spills contaminating water sources, farmlands and the air. The health consequences are devastating, as residents are exposed to hydrocarbons associated with cancer and chronic illnesses.

    A resident of Sagbama Local Government Area who didn’t want his name mentioned expressed despair over the situation. He said: “Our waterways are polluted, farms destroyed and our health is worsening. The government and companies seem indifferent to our plight.”

    The socio-economic impact is equally harrowing. Traditional livelihoods such as fishing and farming have been decimated. In communities such as Brass and Nembe, fishermen now struggle to find aquatic life in waters once teeming with biodiversity.

    One of the residents of the area remarked: “Oil pollution has destroyed the water’s ecosystem. Everything is gone.”

    Adding to their woes, the report emphasised on lack of transparency on the part of International Oil Companies (IOCs) that exacerbates the crisis. The unclear handling of asset divestments and environmental obligations often leaves communities marginalised. Insufficient remediation efforts and poor accountability have further deepened public mistrust, leaving Bayelsa’s residents feeling abandoned in the face of mounting challenges.

    Communities in health crisis

    Access to healthcare remains a critical challenge for many communities in Bayelsa State. In Kolokuma/Opokuma, residents unanimously reported suffering from severe health effects without adequate medical support. The report underscores the urgent need for establishing well-equipped health centres and implementing regular medical monitoring to ease the growing health burden on affected populations.

    The health impact of oil exploration on Bayelsa’s residents is staggering. A sobering 79 per cent of residents reported health issues directly linked to oil pollution. Contaminated water and air have exposed them to harmful hydrocarbons, fueling a rise in cancer cases, respiratory illnesses, and congenital deformities.

    Gas flaring compounds the crisis, significantly contributing to respiratory problems. A mother from Nembe voiced her concern: “Our children often complain of stomach pains. We’re unsure if it’s the water, fish, or air causing it.”

    These findings paint a harrowing picture of the toll oil exploration takes on the health and well-being of Bayelsa’s communities, highlighting the pressing need for systemic interventions.

    Socio-economic dislocation of livelihood

    The HEDA report paints a grim picture of how oil-related environmental damage has devastated traditional livelihoods in Bayelsa. Farming and fishing, once the backbone of local economies, have been reduced to shadows of their former selves. Farmers report drastically diminished crop yields, while fishermen struggle with waterways polluted beyond recovery, leaving fish stocks severely depleted.

    This environmental and economic collapse has driven many into poverty, with some turning to illegal artisanal refining just to survive. A farmer from Ekeremor lamented: “Our lands used to be fertile before oil came. Now, production is low, and we barely get by.”

    The socio-cultural fabric of these communities has also suffered significant strain. Corruption and internal conflicts, fueled by the oil industry’s pervasive influence, have eroded trust and traditional values. Once dedicated to community development, youth leadership roles have become entangled with oil-related interests, deepening divisions and weakening communal bonds.

    The report calls for urgent community empowerment initiatives to restore traditional livelihoods and rebuild trust, offering a pathway to resilience and unity for Bayelsa’s embattled communities.

    Broken system of corporate, government responsibility

    Both International Oil Companies (IOCs) and the government agencies have fallen short in addressing the environmental and social toll of oil exploration. The report reveals that over 57 per cent of residents believe the government fails to hold IOCs accountable, while a staggering 90 per cent see no tangible benefits from the Environmental Remediation Fund.

    Frustrated by the lack of support, residents of Southern Ijaw pleaded: “We need the government to help us with healthcare, education and farming.”

    The communities also criticised lack of transparency in IOC operations. Asset divestments are seen as poorly communicated, with minimal efforts to involve the people most affected.

    One resident voiced his frustration: “Oil companies don’t take us seriously; they destroy our environment and force us to travel miles just to fish.”

    This absence of clear communication has left communities feeling excluded and powerless in decisions that shape their lives. The report urges stricter regulatory enforcement and greater transparency to rebuild trust and ensure that communities are no longer sidelined in critical matters.

    Voices from community leaders

    Discussions with community leaders and key stakeholders revealed ongoing struggles, including crumbling infrastructure, limited healthcare access, and a lack of adequate socio-economic support. Participants stressed the urgent need for comprehensive environmental remediation and stronger accountability from both the government and International Oil Companies (IOCs).

    One participant expressed the dire reality: “Fish from our rivers taste like kerosene. We are dying slowly.”

    Another voiced concern over the militarisation of the region: “Surveillance personnel harass us regularly, making us feel unsafe in our own homes.”

    The discussions also brought to light the human rights abuses tied to oil exploration. They emphsised that they frequently faced harassment and intimidation from security forces employed by IOCs; compounding the struggles of already vulnerable communities.

    Read Also: NUPRC committed to fairness, inclusivity in oil licensing process – Nelson Adanna

    The report calls for immediate action to address these human rights violations, emphasising the need to protect and empower affected populations.

    $12b needed to clean up Bayelsa oil spill

    The Bayelsa State Oil and Environmental Commission has emphasised that a staggering $12 billion is required to remediate the damage caused by oil pollution in the southern part of the state over the next 12 years.

    In a recent report, the Commission placed significant blame on Shell and the Italian oil giant, Eni for being major contributors to the region’s widespread contamination. The investigation, initiated in 2019, relied on forensic evidence, blood samples from affected residents, and corporate data to build its case.

    The report shows that the findings are alarming, with toxic pollutants in the soil, water, and air, as well as in the blood of local residents, were found to be many times above safe limits. These toxins have been linked to severe health risks, including burns, respiratory issues, and heightened cancer rates.

    A Shell Petroleum Development Company spokesperson declined to comment on the findings, claiming the company had not seen the final report. Meanwhile, an Eni representative attributed the spills to theft, sabotage and illegal refining activities, emphasising that the company is committed to addressing all spill incidents. The spokesperson added that “Eni conducts its activities according to the sector’s international environmental best practices, without any distinction on a country basis.”

    However, the Commission’s findings pointed at poorly executed oil company-led cleanups have often exacerbated contamination, further polluting the soil and groundwater. Gas flaring, a routine practice in the region, has also compounded the health risks for local communities.

    Using a United Nations cleanup model first employed in Ogoni land over a decade ago, the Commission calculated the immense cost of restoring Bayelsa’s environment. The report highlighted that the region, once home to one of the world’s largest mangrove forests teeming with ecological diversity, is now one of the most polluted places on Earth.

    “At least $12 billion is needed to clean up the soil and drinking water, reduce the health risks to residents, and restore the mangrove forests essential for flood prevention and ecological balance,” the report emphasised.

     Bayelsa to sue oil companies for decades of environmental pollution

    The Bayelsa State Government has resolved to sue the IOCs operating in the state over oil pollution that has persisted for more than six decades. Governor Douye Diri made this announcement while addressing the State Executive Council meeting in Yenagoa, where the final report of the Bayelsa State Oil and Environment Commission was presented.

    He said: “After a review of an advance copy of your report, I can affirm that it captures the essence of our trials while outlining a hopeful pathway towards resolution. Your insights will serve as a beacon, guiding us towards actionable solutions and inspiring us to restore dignity and opportunity to our people.”

    The governor described the report “An Environmental Genocide: Counting the Human and Environmental Cost of Oil in Bayelsa, Nigeria,” as deeply alarming.

    He was encouraged by the revelation that in most industrialised countries, two principles “polluter pays” and “no fault liability” are foundational to regulating extractive industries.

    He explained: “These principles mean that those who own and operate facilities are responsible for the damage caused by their pollution, even if they are not at fault.”

    Governor Diri also indicated the government may pursue legal action outside Nigeria. He emphasised that “the perennial excuse by the IOCs that nearly ‘90 per cent of leaks are due to sabotage’ would not find accommodation in foreign jurisdictions. This is why we are pleased that this commission has strengthened our capacity to litigate anywhere in the world,”

    The governor quoted parts of the report, which highlighted that Bayelsa bears 25 per cent of Nigeria’s oil pollution. He cited a study estimating that in 2012, oil spills in Nigeria, particularly in the Niger Delta, caused over 16,000 additional neonatal deaths, saying: “Even one life lost to accommodate the greed of oil exploration is one death too many.”

    Diri also pointed out the severe oil contamination in Bayelsa: “It has been so heavy that, according to estimates, as much as one and a half barrels of oil have been spilled in Bayelsa for every man, woman, and child living in the state today. The stark reality is devastating: every Bayelsa resident is affected, our lives perpetually endangered. The brutal implication: we are either already dead or waiting to die.”

    The report also highlighted the significant oil revenue generated from Bayelsa’s production. Since 2006, oil from the state has generated over $150 billion for the Federal Government, with an average of $10 billion in government revenues per year.

    Path to redemption

     The HEDA report noted that immediate and sustained action is critical to address the challenges faced by Bayelsa State’s oil-producing communities. It calls for a comprehensive remediation effort, demanding that International Oil Companies (IOCs) clean up oil spills and restore the environment, with the report noting that: “adequate compensation for affected communities is non-negotiable.”

    The report further urges the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce stricter compliance with decommissioning standards to ensure regulatory effectiveness.

    In addition, HEDA highlights the importance of community empowerment programs, which should focus on rebuilding traditional livelihoods and offering alternative employment opportunities. A key recommendation is the: “training in renewable energy skills to open new economic pathways,” equipping the communities with the tools to transition to sustainable and profitable industries.

    The report also calls for the establishment of healthcare facilities to provide care for pollution-related illnesses, emphasising that addressing the long-term health crisis is a priority.

    “These efforts must be complemented by regular health monitoring programmes to safeguard the well-being of affected populations,”

    Transparency in IOC operations is another critical point of the report, which advocates for the adoption of “clear communication strategies for asset divestments” and actively involving communities in decision-making processes. This, it argues, would help to build trust and accountability between the corporations and the communities they impact.

    HEDA also stressed the role of capacity-building initiatives in raising awareness about environmental rights and strengthening community-led monitoring mechanisms. These initiatives are crucial to empower communities to actively engage in environmental stewardship and advocacy.

    The report further underscores the importance of anti-corruption measures, including the use of technologies like blockchain, to ensure transparency, integrity, and accountability in oil operations, while preventing resource misuse and promoting sustainable practices.

    Collectively, these measures outline a comprehensive framework for remediation, health intervention, community empowerment, and systemic reforms. Through collaboration between stakeholder’s government, corporations, and communities Bayelsa State can chart a path toward environmental restoration, socio-economic resilience, and a more equitable future.

  • Oil production must go up at all cost, says COAS 

    Oil production must go up at all cost, says COAS 

    The Chief of Army Staff (COAS), Lt.Gen. Olufemi Oluyede, has declared that oil production must continue to go up at all cost in the interest of the country’s economy.

    He said the only way to improve the economy was to ensure sustained increase in oil production.

    Oluyede told troops and officers of the 6 Division in Port Harcourt, Rivers State, to sustain their clampdown on all forms of illegal oil operations carried out in the Niger Delta by oil thieves.

    Oluyede, who spoke on Tuesday when he visited the Headquarters of the 6 Division in the company of other senior officers, said if the country failed to make money from oil, the dollar would continue to rise.

    The Army Chief, who participated in the decoration of 11 senior officers of the division with higher ranks, said if the dollars kept rising, everything would continue to be expensive in the country.

    He told the troops not to obey any order that involved engaging in illegal activities and promised to improve their welfare of the troops.

    Addressing the troops, he said: “There is no other way as it is now that the Dollar will come down if the government does not make money from oil because oil is the mainstay of the economy. 

    “So, if we are not making money from oil,  the Dollars will keep on rising and that means food and everything will be expensive.  Nigeria is our country. We do not have any other country, so we must make Nigeria work. 

    Read Also: Yuletide: CDS felicitates troops on Christmas

    “Why I am here this afternoon is to charge you because we have been given the responsibility to safeguard all oil infrastructure in Niger Delta and that we must do well. If anybody tells you to go and do anything illegal, tell them that the Chief of Army Staff said that you should not do it. 

    “In the next one month, I must find changes here. Oil production must go up at all cost. I have come to talk to you as your father and as your leader.

    “Now, as your father I will beg you to do what is correct. Now, as your leader, if you do not do what is correct I will deal with you decisively.

    “So, if you don’t want to be in soup, just go and do your work and do it well. Like I told you, I know this environment very well, I was the GOC here, so there is nothing you can tell me. So go tell your colleagues that this is my message”.

    General Oluyede said he would work hard to ensure improvement in the welfare of the troops in the next one year to enable them discharge their duties without worries.

    He said he had discussed the predicament of the army with President Bola Ahmed Tinubu particularly in the areas of accommodation and kitting.

    But he insisted that the troops must work harder to improve oil production to enable the government earn money to take care of their welfare.

    He said: “In the next one month there must be remarkable difference here. I have come to give you directive and those directive must be followed so that Nigeria can be better. 

    “There is no other way to earn money for Nigeria. And let me tell you, I have told Mr President about our predicament in the Army. Talking about accommodation,  kitting, whatever. Where is the government going to get the money if they do not have money from oil? No, tell me, where else will they get the money? 

    “Now, if you do your part, I will do my part. In the next few weeks you will see that things will start changing. Even Ration Cash Allowance (RCA) we are working on it so that we can have something better for you. And the same thing we are going to do with kitting and accommodation. 

    “There will be massive accommodation for you so that you can have places to live with your families. But if we do not make the government earn money, where will they get money? There is no other way. 

    “So, my message to you is for you to go back and tell your colleagues. We must make things better here”.

  • Host communities demand payment of 3 % royalties by oil firms

    Host communities demand payment of 3 % royalties by oil firms

    Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) yesterday cautioned international Oil Companies (IOCs) against flouting the provisions of the Petroleum Industry Act (PIA).

    The HOSTCOM reminded the oil firms of the need to remit three per cent of their annual operating expenditure (OPEX) into the host communities fund to enhance development.

    The communities expressed excitement at the $5 billion Bonga North Deep Offshore Field investments into the oil and gas sector, which according to them were facilitated by the policies and reforms of President Bola Ahmed Tinubu.

    HOSTCOM President Dr. Benjamin Tamaranebi, who spoke multi-billion dollar Bonga North Deep Offshore Field, hailed the transparent and accountable leadership Gbenga Komolafe as the Managing Director and Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    He told reporters yesterday: “When Engr Gbenga Komolafe, took over the mantle of leadership the oil production was 1.6 to 1.7 million barrels of Crude per day but today it has increased to 2.0 million barrels per day.

    Read Also: Tantita: Celebrating victory against oil thieves, economic saboteurs

    “With a deep sense of responsibility, we have observed with keen interest the transparency demonstrated by the Commission in the conduct and adherence to established protocols and regulations to ensure effective conduct of their practices and accountability.

    “Following the reassurances of the Commission to continue to engage the host communities of Nigerian Producing Oil and Gas (NIPOGAS), we rate the score card of the Commission by passing a vote of Confidence on the NUPRC and the management team ably led by the Commission’s Chief Executive, Mr. Gbenga Komolafe for an award of excellence for its commitment to Petroleum Communities’ sustainable development and protection of their participatory rights.

    “With regards to the aforementioned strides of the NUPRC for delivering within record time, we call on all meaningful stakeholders to join hands with the (NUPRC) to facilitate the speedy implementation of the three per cent OPEX which is overdue by some settlors.

    “And to those settlors who have refused to effectively set-up the Host Communities Development Board of Trustees to immediately do so.

    “To allow the Communities to start enjoying their benefits of sustainable development and participatory rights as contained in the PIA 2021.

    “In fact, we call on the NUPRC to list out all the settlors who have refused to comply with the PIA 2021 or else we will have no choice than to escalate the issue of noncompliance to section 234 of the PIA 2021 and the Host Communities Development Regulation No 114 of 2022 to the President who is the Minister of Petroleum Resources for the (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to invoke the revocation of their licenses for violating the extant regulatory laws of Nigeria and protocols of the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) greenhouse gas (ghg).

  • Nigeria ranks top 3 in deep water oil projects –Presidency

    Nigeria ranks top 3 in deep water oil projects –Presidency

    Nigeria’s deepwater oil projects now deliver competitive returns and the country has moved from the bottom quartile of 13 indexed countries to the top three, the Presidency has disclosed.

    The Special Adviser to President Bola Tinubu on energy, Olu Verheijen, disclosed this in a keynote address at an executive session of the Energy Institute and the National Association of Petroleum Explorationists (NAPE).

    In a copy of the address made available to newsmen in Abuja on Friday, Verheijen noted that, in deepwater gas, Nigeria has moved from a total absence of a fiscal framework to having one for the first time in history.

    She said the feats were attained by major oil and gas sector reforms by President Tinubu’s administration aimed at improving fiscal attractiveness and ease of doing business.

    According to her, the reforms targeted actual bottlenecks and real projects in the investment pipelines.

    “In April this year, FID was reached on the Ubeta Non-Associated Gas project, a half-a-billion dollar project.

    “The Ubeta field was discovered in 1965 and has finally been unlocked to deliver prosperity to multitudes of Nigerian lives and businesses,” she said.

    With the latest development, Nigeria is positioned to tap into 90bn dollars in financing available for deepwater projects around the world, by IOCs that are already operating in the country.

    “Accessing 20 per cent of this will be more than enough to bring five major deepwater projects on-stream, unlocking 1.3 billion barrels of oil equivalent (boe).

    Read Also: NSCDC busts new oil smuggling operation in Rivers

    “We are gearing up for our first FID on a Greenfield deepwater development since the last one (Egina) in 2013.

    “Going into 2025, we expect the investment momentum to quicken, proving beyond any doubt that President Tinubu’s energy reform agenda is truly revolutionary. Our challenges are addressable and fixable,” she said.

    She added: “All these new investments will have major implications for the Nigerian economy.

    “The foreign exchange inflows will help with exchange rate management and macroeconomic stability; local economies will benefit from the increased spending on construction and hiring; skill-building and technology transfer will take place.

    “Importantly, with the industry infrastructure being developed, each new investment will ensure that subsequent projects are possible at lower costs and with the guarantee of greater returns – creating a virtuous cycle of new investments.”

  • Crisis brews in Bayelsa oil host communities over alleged trespass

    Crisis brews in Bayelsa oil host communities over alleged trespass

    The host communities of the Samabri/Biseni Cluster Location, specifically Osekwuenike, Osifo, and Abuetor in the Sagbama Local Government Area of Bayelsa State, have raised concerns regarding what they described as a false claim made by the Asamabiri Community, asserting co-host status to the Samabri/Biseni Cluster location.

    In a statement on Saturday jointly signed by the three Presidents General — Mr. Anthony Okorie of Osekwuenike Community, Comrade Benjamin Aghoghovia of Osifo Community, and Comrade Bartholomew Uti of Abuetor Community—along with other key stakeholders, the communities expressed their disbelief at Asamabiri’s decision to make such claims. 

    They highlighted the long-standing peace and inter-marital ties they have enjoyed with the Asamabiri Community over the years.

    The statement clarified the communities share a clearly defined natural boundary known as the Ogborogbo Canal with Asamabiri, a boundary that has not been disputed in the past.

    The host communities voiced their discontent over Asamabiri’s actions on October 2, 2024, when they mobilised to protest on land belonging to the host communities, where an oil firm is situated. 

    They claimed co-host status and cited ’22 years of neglect’ as their rationale for the protest.

    The leaders expressed that if this situation is not addressed, it could potentially lead to an unwarranted inter-communal crisis, which they seek to avoid at all costs.

    The communities are calling upon the Bayelsa State Government, corporate entities, and the general public to disregard the unfounded claims made by the Asamabiri community and recognise the historical rights of the host communities.

    The people of Asamabiri community of Sagbama had protested alleged decades of neglect by the oil firm operating in their community.

    Asamabiri, said to be a co-host community to Nigerian Agip Oil Company (NAOC) facility in Sagbama LGA had appealed to the federal and state governments to intervene in their plight which had lingered for over 22 years.

    The placard-carrying protesters had claimed that over the years, they were denied of their statutory benefits and social amenities by the oil firm.

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    Speaking on behalf of the community, its Paramount Ruler, Chief Joseph Odoni, had said the community members protested over the neglect at the firm’s facility recently.

    The monarch had said all necessary steps taken by the oil bearing community to resolve the impasse had been futile, alleging that the oil major had been favourable to another community, its co-hosts.

    The community leadership had also called on Nigeria’s Minister of State for Petroleum  Resources (Oil), Senator Heineken Lokpobiri, the apex Ijaw socio-cultural organisation, Ijaw National Congress and its youth body, Ijaw Youth Council to address the injustice the company had subjected Asamabiri to in the last two decades.

  • Governors pledge support to Fed Govt’s efforts to boost local oil refining capacity

    Governors pledge support to Fed Govt’s efforts to boost local oil refining capacity

    Governors of the 36 States have committed to support efforts by the Federal Government to enhance local refining of petroleum products in the country.

    They also promised to work with security agencies to address the current security challenges across the country.

    These formed part of resolutions at the meeting of the Nigeria Governors’ Forum (NGF) held in Abuja last night.

    Governor Hope Uzodinma, who read a communique at the end of the meeting, said the gathering was briefed by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) and the Director General of the Department of Security Services on the state of the oil sector and security situations.

    Uzodinma said the current challenge of ensuring adequate supply of petroleum products “is something that is being looked at. If you look at the news, you will see that the Dangote Refinery has come on, and with capacity to supply products.

    “I do not think that you or me will be happy, as a Nigerian, an OPEC member, producing crude oil, are relying on importation for our people to make use of petroleum products.

    “So, we must encourage the homegrown solution that the President just introduced; encouraging Dangote refinery.
    We should repair our Port Harcourt refinery; repair our Warri refinery, repair our Kaduna refinery, and then produce what we eat, and eat what we produce.

    “We should not rely on importation of crude oil. For me, it is an aberration abenitio to rely on importation of petroleum products as an oil producing country.

    “Which other member of OPEC country of our status is not refining crude oil in their country? So, we should not encourage that. I think I want to support buying petroleum products in naira, buying crude oil in naira and refining it here.

    “If you refine petroleum products locally, you will create jobs, you will cure unemployment, you keep people busy, you will reduce crime and then, you will also be proud to answer the name of an oil producing nation,” Uzodinma said.

    On what transpired between NGF members and the DG, DSS, Uzodinma said: “The new Director General of the Department of Security Services, also briefed us on new strategies to stop the rate of insecurity, all the security challenges in the country and how to fight cases of kidnapping, banditry, and activities of unknown gunmen.

    “We also committed to giving him support and to close rank. It will be very proper and a better synergy, working at the subnational to ensure that Nigeria is secure and the environment is safe, not only for the government, but also for the private sector to do their businesses. We will collaborate with him.

    On the presentation by an official from the office of the National Security Adviser (NSA), Uzudinma said: “The Office of the National Security Adviser appointed a director to liaise with the state governments for closer relationships.

    “She also appeared before us, spoke very eloquently, presented her plans and we committed to also working with her.

    “I think things are getting better by the day and we pray that with all these arrangements in place, the cost of living will come down.
    The cost of doing businesses in Nigeria will also come down and become more affordable.

    “So, at Nigerian Governors Forum, we are also committed to supporting Mr. President and ensure that the interests of our people are properly protected.

    “It is our belief that Nigeria is a great country. And, anything that will bring or cause disunity among our people, our citizens, should be discouraged.

    “We need to be united as a people. We need to support the government. We need to work for the interests of our people, and our national interests also protected.

    “So, we should have hope. Under the renewed hope agenda of Mr. President, supported by both the national government and all of us as citizens, there will be no better security than us being united, working together as a people, and believing in our country.”

    Uzodinma, who also spoke on the NNPCL boss’s presentation, said members of the NGF sympathise with Nigerians on the inconveniences caused by the current disruptions in petroleum products supply and pricing.

    He said: “We also received the Chief Executive Officer of NNPC, who briefed us on the total subsidy removal and the challenges facing the corporation, and his plans to alleviate the sufferings of our people, occasioned by the increase in pump prices.

    “We saw with him, and also interpreted some of the presentations he made. It is our hope that things are going to be better any moment from now.

    “We sympathize with our people. We know that there is hardship in the country. We also appreciate the reforms being carried out by the President.

    “Our prayer is that, as soon as possible, the relief we are looking for should come so that we can begin to leverage on the benefits of the reforms. And then, have a better Nigeria,” the Imo State governor said.

    Speaking further on the meeting, Uzodinma said: “We deliberated on issues affecting the country, the forum received a presentation from the African Medical Center of Excellence, funded by Afriximbank Bank, a world-class hospital, and specialized techniques and latest and modern equipment to be managed by first-class medical experts in special areas of treatment on oncology, cardiovascular issues, hematological cares, and other comprehensive general medical research.

    “The governors committed to supporting Afriximbank for this initiative. They are going to work with King’s College Hospital, London, and it is going to be a referral center of excellence for all medical challenges.”

    The communique, signed by NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, reads: “We, members of the Nigeria Governors’ Forum (NGF), at
    our meeting held today, deliberated on issues affecting
    the country.

    “The Forum received a presentation from the African Medical Centre of Excellence (AMCE), a specialized 500-bed hospital designed to deliver high-quality diagnostics and treatment across oncology, cardiovascular, and hematological care, alongside comprehensive general medical and surgical services.

    “Recognizing the AMCE’s role in advancing Nigeria’s healthcare capacity, the governors reaffirmed their commitment to fostering partnerships that support the development of such specialized facilities, aiming to improve health outcomes and accessibility for all Nigerians.

    “The forum received an update from the Group Chief Executive Officer of NNPC Limited on key developments in NNPC’s operations, including the National Crude and Condensate Production profile, the Production War Room initiative, and ongoing security efforts to combat illegal connections and vandalism.

    “Emphasis was placed on the role of the Production War Room in accelerating production and addressing bottlenecks in Nigeria’s upstream sector.

    “Governors acknowledged the importance of these measures in securing the nation’s energy resources and improving the efficiency and resilience of NNPC’s production and supply chain.

    “The forum also received a presentation from the new Director General of the Department for State Security, on the prevailing security challenges impacting the nation and detailed ongoing measures to mitigate these issues.

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    “Highlighting recent initiatives, the Director General emphasized inter-agency collaboration, enhanced monitoring, and stronger enforcement measures aimed at deterring illegal activities and sought for the governors cooperation accordingly.

    “Governors recognized the significance of these efforts and reiterated their support for collaborative actions to safeguard the nation.

    “The Forum received a presentation from the Pioneer Director of State Liaison from the Office of the National Security Adviser, aimed at strengthening collaboration with states and enhancing channels of communication.

    “The Director highlighted new strategies to support state-level security efforts and foster a cohesive approach to national security challenges.

    “Governors affirmed the importance of this collaboration and expressed their commitment to actively engage in coordinated efforts that improve communication, align security priorities, and ensure a safer environment across all states.”

  • Oil firm targets industry leadership

    Oil firm targets industry leadership

    MSM Oil and Gas is poised to become Nigeria’s  biggest indigenous oil exploration and production company, while setting a new standard for excellence and reinforcing its position as a key player in shaping the future of the oil and gas sector.

    This followed the inauguration a new facility in Lekki,Lagos.

    Chairman of MSM, Mauzzam Mairawani said the firm is committed to unlocking hydrocarbons to improve Nigeria’s foreign exchange earnings and revenue generation. He  emphasized the crucial role of partnerships in business success and underscored the company’s patriotic drive to unlock the country’s hydrocarbon potential.

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    The event  brought together distinguished guests and industry leaders, the Managing Director of MSM Oil and Gas, Dr. Charles Ayoka, along with engineers and representatives from the company’s strategic partners – Springrock, Genesis, Halliburton, Shafnet, Eastline Energy, Nymax Energy, and many others.

    The inauguration not only represents a significant achievement for the firm, SM Oil and Gas but also highlights the company’s forward-thinking approach and dedication to industry advancement.

    The unveiling of the facility sets a benchmark for the industry, demonstrating the firm’s commitment to innovation, growth, and progress.