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Tag: Olufemi Soneye

  • NNPCL’s Pipelines and Depots Rehabilitation Project set to ensure energy sufficiency – Soneye

    NNPCL’s Pipelines and Depots Rehabilitation Project set to ensure energy sufficiency – Soneye

    Olufemi Soneye, Chief Corporate Communications Officer (CCCO) of the Nigerian National Petroleum Company Limited (NNPCL) says the company’s ongoing pipelines and depots rehabilitation project is set to resolve longstanding supply challenges and strengthen the country’s energy infrastructure for the long term. He spoke with Biodun Adetunji. Excerpts:

    There have been concerns about sustainability regarding NNPCL’s efforts to rehabilitate…

    The NNPC Ltd. is working towards transforming Nigeria into a self-sufficient producer and net exporter of refined petroleum products and a very first step in that direction is the successful rehabilitation work that has birthed the renewed operations of the Port Harcourt and Warri refineries.

    The rehabilitation and upgrade of the Old Port Harcourt and Warri Refineries by the end of 2024 marked a significant milestone in this journey.

    And, as you know, work on the New Port Harcourt and Kaduna Refineries is at advanced stages, reinforcing the commitment to eliminating fuel importation.

    The reason the term so-called came in is because of the manifest challenges that are clear and present threats to your operations?

    Okay, as you rightly observed, in every human endeavour, there are challenges everywhere. In fact, any human engagement that does not come with its challenges may never stand the test of time because challenges would rear their heads at some point. Yes, despite the progress, several challenges threaten the sustainable operation of the refineries and the efficient supply of petroleum products.

    Pipelines, for instance?

    I was coming to that. The aging pipeline infrastructure is an issue that we have to deal with. Nigeria has a 5,120 km network of crude oil and product pipelines connected to 22 storage depots (terminals). The infrastructure is dilapidated, making product transportation inefficient. Then there is the issue of pipeline vandalism and security concerns. Frequent pipeline vandalism has led to losses and disruptions in supply.

    In the past, refineries have been forced to shut down due to full storage tanks and inability to evacuate products and rather than use the pipelines, this has led to an over-reliance on road transport – the breakdown of pipelines has resulted in increased use of trucks for product distribution and this has led to frequent road accidents, fires, and high transportation costs. As the saying goes, Rome was not built in a day and all that we are doing now is to re-commit to the ethos and virtues of protecting critical assets with a view to avoiding mistakes of the past, the consequence of which we are facing and pausing for now. 

    But there must be solutions?

    Whereas there are limited financial resources, which pose challenges in executing both refinery and pipeline rehabilitation projects simultaneously, we are exploring creative and innovative approaches to ensure a cost-effective funding model to proceed with the pipeline and depot rehabilitation.

    For instance, to ensure the sustainability of refinery operations and improve the supply chain, NNPC Ltd. designed a robust rehabilitation plan for pipelines and depots: We will be deploying a new financial model: Finance, Build Operate and Transfer (FBOT) approach. Unlike the refineries, which were funded through loans, the pipeline and depot rehabilitation project is based on the Finance, Build, Operate, and Transfer (FBOT) model. Under this model, contractors finance the project, operate it for a set period to recover their investment, and then transfer ownership back to NNPC Ltd.

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    The entire pipeline and depot infrastructure was divided into four lots, with contracts awarded to different private companies. The Concession Agreements, signed in 2023, outlined key rehabilitation and upgrade activities.

    The activities include but may not be limited to the construction of new crude oil and product pipelines to replace obsolete ones, implementation of advanced technology to enhance pipeline security and prevent vandalism, rehabilitation and modernisation of storage terminals to support increased refining capacity.

    These outlined activities look ambitious but how realisable are they?

    Despite the challenges, the pipeline and depot rehabilitation project has made significant progress: Lot 1: Rehabilitation of pipelines from Bonny to Port Harcourt, including depots in Aba, Enugu, Makurdi, and Yola. We have started rehabilitation at Port Harcourt terminal, enabling seamless product loadout. Lot 2: Rehabilitating of pipelines from Escravos to Warri Refinery, extending to Benin and Ore depots and this rehabilitation at Warri terminal has enabled the restart of smooth product distribution. Lot 3: Pipelines and depots associated with Kaduna Refinery, including crude supply from Warri to Kaduna and product distribution to Kano, Gusau, Jos, Gombe, and Maiduguri have commenced with assessment of the Warri-Kaduna crude pipeline for full rehabilitation. Lot 4: Another firm is rehabilitating the Lagos coastal pipeline network, spanning Atlas Cove-Mosimi-Ore-Ibadan-Ilorin. Mobilisation has begun for the rehabilitation of Atlas Cove terminal and pipeline connections. Mobilisation letters have been issued to some of the companies upon the submission of Bank Performance Guarantees and NPSC is closely working with the concessionaires to fast-track project execution.

    When would these be completed?

    The pipeline and depot rehabilitation project is expected to be completed within two to three years. Upon completion, Nigeria will achieve the following: Sustainable crude oil supply to refineries; seamless product distribution through pipelines, reducing reliance on trucks; improved energy security and reduction in fuel importation; lower transportation costs and reduced road hazards caused by fuel tankers. We can assure Nigerians that the NNPC Ltd.’s pipeline and depot rehabilitation project is a game-changer in achieving Nigeria’s energy security and self-sufficiency in refined petroleum products.

    With a structured financial model, strategic partnerships, and committed execution, the initiative is set to resolve longstanding challenges in petroleum supply and strengthen the country’s energy infrastructure for the long term.

  • How Utapate crude blend will impact Nigeria’s economic fortunes—Soneye

    How Utapate crude blend will impact Nigeria’s economic fortunes—Soneye

    The Nigerian National Petroleum Corporation Limited (NNPCL) recently introduced its latest crude oil grade, the Utapate sweet crude oil blend, to the international market. Olufemi Soneye, the Chief Corporate Communications Officer (CCCO) of NNPC Limited, in this chance encounter with Biodun Adetunji, shares interesting insights about the new crude blend as well how the Executive Orders of President Bola Tinubu have created an enabling environment which makes the job of the NNPC Limited’s board easier. Excerpts:

    Can you expatiate on the Utapate crude blend? What’s it all about, specifically, OML 13?

    Since Mr. Mele Kyari assumed the role of the Group Chief Executive Officer (GCEO) of NNPC Limited, he has significantly enhanced oil production in Nigeria, driving remarkable and unprecedented transformation in the upstream sector. This has even been made possible and easier by some of the Executive Orders of President Bola Ahmed Tinubu. Without some of the reforms engendered by those presidential orders, some of the giant strides being recorded may not have been possible.

    First, let me state that the good news is that the reserves of OML 13 are 330 million barrels of oil, 45 million barrels of condensate and 3.5TCF of gas. The location of the asset in question is in Akwa Ibom State, Eket, to be specific. The field discovery period was between 1953 – 1987 and is extensively covered by Analogue, 2D & 3D Seismic Data.  The number of fields in OML 13 are, originally, 14 fields in the acreage; eleven (11) under NEPL’s Operatorship and three (3) farmed out to marginal operators (Qua Iboe, Stub Creek and Eket). The total coverage area is 1987 sq. km. In addition, there are two significant discoveries of about 400 million barrels and 1.2TCF of gas currently under appraisal. The average well depth in the field is 3000m. Its oil export terminal is FSO Tulja Kalyani, 40km offshore Akwa-Ibom State.

    What makes Utapate so important?

    Utapate is of the Light Sweet Crude blend and its sulphur content is API 44, 0.065%. The blend is being processed through unique heat-based treatment and product conditioning in the modern processing facility to improve its properties. The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).  This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.  As I said earlier, this achievement under Kyari is contingent on the favourable operating environment created by Mr. President.

    When did the federal government allocate OML 13 to NPDC (NELP) and when did the execution of the OML13 FTSA agreement commenced? People also ask about when the spudding of oil under the NEPL operatorship and what is the number of producing fields in the block?

    The allocation was done in 2017, while the execution agreement was done in 2019.  The spudding of oil first well under the NEPL operatorship happened on February 1, 2021.

    Utapate Field had been the only developed field at the time of take-over.  However, exploration and appraisal activities have been carried out by NEPL/NOSL with 3 field development plans for Akai, Ekim and Ibotio approved with other field development plans underway.

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    How many number of wells have been drilled since the commencement of the asset redevelopment project?

    Forty (7 exploratory, 5 appraisal and 28 oil development).  The multi-rig Deployment Strategy with a Cluster Drilling Location management was deployed to achieve an accelerated drilling campaign in the OML-13 Acreage, with a 2 x 30,000bopd Oil and Gas processing facility.  The achievement of the first oil during the current field redevelopment was on February 24, 2023

    What are the current daily and monthly production rates?

    The daily production rate is between 40,000 and 41,000 bpd. The monthly production is about 1.2mbpd

    In terms of production increment, what are we looking at?

    We are looking at additional development drilling in 2025 and 2026 and the construction of a Main Flow Station (MFS) processing facility of 100000barrels of oil capacity and 250MMSCF to incorporate production from other fields within the block as well as 3.5 million barrels of crude oil terminal and Single Point Mooring for export.

    What’s the total number of export cargoes?

    I’m pleased to say that five of seven cargoes planned for 2024 have already been achieved.  The date of the first export was on July 24, 2024. The sixth cargo will be loaded on November 28, 2024.  The seventh cargo will be loaded in December 2024. The method of crude oil evacuation from OML13 is a subsea pipeline, barging and storage on FSO for export.

    The Utapate field development plan, executed between 2013 and 2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations. The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tanks, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.

    In terms of equity structure with partners, what is in place?

    It is currently operated by NNPC E&P Ltd and Sumedha Energy Ltd. The equity structure is at 55%:45%, respectively.

    Over the years, such exploration projects have suffered the consequences of community resistance. What is being done to keep the oil flowing?

    We have in place the Spud-Baby Program, a Community Support Program for mothers whose children are born on certain drilling days within the entire 13 local government areas, by offering grants to support the mothers and the newborn babies. We have enjoyed peaceful co-existence with our host communities. The incorporation of OML 13 HCDTF is also progressing well.

  • Olufemi Soneye @ 50: When competence, commitment enhance delivery

    Olufemi Soneye @ 50: When competence, commitment enhance delivery

    By A. O. Bolaji

    Egbon, don’t you remember me?’ Those were his first words as a mutual friend asked if I didn’t remember him.

    ‘We were together in America during Obama’s election in 2008. We went around during the coverage. We even had lunch on you,’ he said. That was when I remembered this young, enterprising and very jovial though sometimes reticent young man, Olufemi Soneye. This was in January, 2023.

    But we were to begin serious sessions of bonding when we bounced off ideas about journalism and reputation management between each other.

    Olufemi Soneye turned 50 on October 29, 2024.

    Now, observing birthdays has Biblical references in Genesis, Jeremiah, Job, Mark and Matthew, among others.

    However, observance of birthdays varies depending on the conviction and disposition of individuals.

    Olufemi Soneye has every reason to celebrate but he has demurred because of the recent tragedy that struck at NNPCL, where he is the Chief Corporate Communications Officer, CCCO. Yet, he deserves to be celebrated.

    Discernibly, life is lived in moments and it is in the cumulative effect of those moments that each life is viewed as successful or otherwise.

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    A scripture say, “Seest thou a man diligent in his ways, he shall stand before kings and not before ordinary men.”

    This much resonates with the essence of Soneye’s life as virtually everyone who knows him, would agree that he is a perfect gentleman imbued with strong character, wisdom, temperance and insight, a successful technocrat whose lexicon does not have space for the word failure.

    His song has always been that of victory and he sings it with all forcefulness and conviction.

    In full essence, he is a man prepared by a combination of factors such as a robust and analytical mind, unswerving vigour, selflessness, and fearlessness, he exemplifies a new breed without greed in Nigeria’s socio-economic and professional space.

    He is a man routinely saluted for his sense of duty, willingness to help, forthrightness and penetrating presence at all times.

    On an occasion such as his birthday, it is only fitting to take a closer look at his essence and continuing relevance in both private and public life.

    More profoundly is his appointment as the CCCO at NNPCL. The appointment in October 2023 revalidated the strength of his cerebral disposition in public service, intellectual sagacity and patriotism to his fatherland by doing a difficult job seamlessly and almost always getting positive results.

    Being appointed as CCCO of NNPCL at that time simply thrust him into the murky waters of intrigues, scheming and a trust deficit that had engulfed the oil and gas space, specifically the NNPCL.

    But for a man who prefers to be called by his full first name of Olufemi (instead of Femi), he does not believe in half measures.

    Notable amongst his numerous roles in that capacity has been to oversee the company’s external and internal communications, reputation management, and stakeholder engagement.

    He has also developed and implemented NNPCL’s communications strategy for effectiveness, managing media relations, coordinating crisis communications and issues management, leading corporate branding and image management, fostering stakeholder engagement, including government, investors, and industry partners, et al.

    Mr. Soneye equally has a proven record of playing a vital role in shaping NNPCL’s public image by effectively communicating its vision, mission, and values in the best interest of Nigeria. Being a seasoned journalist with decades of experience prepared him for that role, especially having practised in the USA – before NNPCL, Soneye was publisher of Per Second News, PSN, a global online publishing outfit.

    October 29 is indeed unique in the life of Soneye and it is just right to say happy birthday to a growing legend, an emerging icon, a great administrator, a man of distinction, a consummate professional, a respected nationalist, and a committed and loving father and husband.

    Like diamonds, his worth is inestimable. Olufemi Soneye has impacted numerous lives locally and internationally through his generosity, knowledge, impartation and benevolence and ultimately with a good sense of humility, maturity, discipline, integrity and dignity.

    His commitment to making a positive difference in people’s lives is immense.

    To the man of exceptional ability and performance, Olufemi Soneye stands out as an administrator per excellence and through his brilliance, hard work and success he has become one of the rising pillars of Nigeria in the most critical sector of our economy.

    The business world is only for the brave at heart and thankfully he is a shining example within that space.

    Congratulations on reaching the half-century club! May your next 50 years be more amazing than the first and may God bless your new age with life’s amazing wherewithal clothed with abiding fulfilment, sound health, long life, fruitfulness and prosperity.

    • Bolaji, a journalist and media strategist, is based in Lagos