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  • Lokpobiri: Shell’s Bonga North project to boost Nigeria’s economic value

    Lokpobiri: Shell’s Bonga North project to boost Nigeria’s economic value

    The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, stated yesterday that an additional 110,000 barrels per day (bpd) from Shell Plc will increase Nigeria’s economic value.

    He welcomed Shell PLC’s announcement to proceed with the Final Investment Decision (FID) on the Bonga North deep-water project.

    The project, located off Nigeria’s coast, is expected to sustain production at the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, with recoverable resources estimated at over 300 million barrels of oil equivalent (boe).

    Reacting to the development, Senator Lokpobiri said, “This project is expected to add 110,000 barrels per day to Nigeria’s production capacity, creating significant economic value for the nation.”

    This statement was contained in a press release from his special adviser on media, Nneamaka Okafor, issued from Abuja.

    The minister noted that the announcement aligns with the federal government’s commitment to revamping Nigeria’s oil and gas sector through strategic reforms and investments.

    “This announcement by Shell is a clear indication that our policies are working. It underscores the confidence investors have in the reforms and enabling environment being fostered under President Bola Ahmed Tinubu’s administration,” he said.

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    It will be recalled that the Minister had consistently assured Nigerians that major investment announcements would be made before the end of the year. The Shell FID is one of several anticipated investments, and Lokpobiri reiterated the government’s commitment to providing the enabling environment for businesses to thrive.

    “This is just one of many investments we are expecting. The federal government remains steadfast in addressing investor concerns, improving regulatory frameworks, and ensuring that the oil and gas sector continues to attract global players. Our goal is to use such investments to drive economic growth, create jobs, and improve the standard of living for Nigerians,” the minister added

    The Bonga North project will function as a subsea tie-back to the Shell-operated Bonga FPSO facility, where Shell holds a 55% interest. It represents a major step forward for Nigeria’s energy sector, marking a significant increase in production capacity and enhancing the country’s position as a global energy player.

    Lokpobiri commended Shell for its confidence in Nigeria and assured the company of the government’s support in ensuring the project’s success. He further emphasized that more initiatives are underway to sustain the momentum in attracting investments into the sector.

  • Offshore Lab, NNPCL, Shell launch tech hub in Bayelsa

    Offshore Lab, NNPCL, Shell launch tech hub in Bayelsa

    Offshore Lab, integrated service firm of project delivery, capacity building and social innovation, has launched its second Junior Lab technology hub for disadvantaged children under its joint venture with Nigerian National Petroleum Corporation Limited (NNPCL) and Shell Petroleum Development Company (SPDC).

    The new hub will be at Daisy’s Home for Special Children in Yenogoa, Bayelsa State and it will provide practical, hands-on technology education for children in the community.

    The Junior Lab initiative, spearheaded by The Offshore Lab, empowers young people in underserved communities by providing a learning centre with curricula, and dedicated trainers. Junior Lab also offers pupils access to cutting-edge tools and training in agrotechnology, engineering, digital innovation, and others, making it easier for children in these communities to acquire skills and capabilities for the future.

    Emeka Obiwulu, chief executive of The Offshore Lab, noted the project’s impact on young Nigerians, saying “by extending this initiative to Daisy’s Home and local communities, we are laying the groundwork for a brighter future for youths. This is more than just education; it’s about unlocking potential, fostering innovation, and driving national development from the grassroots.”

    Read Also: Customers urge NNPCL to establish more retail outlets

    Following successful delivery of the first Junior Lab at Badamia Home in Port Harcourt last year, Daisy’s Home for Special Children will serve as the next hub. The lab will focus on agrotechnology, providing pupils with knowledge and practical skills to navigate the agri-tech sector, a key area for Nigeria’s future development. It will have a greenhouse facility for practical learning and will integrate technologies like hydroponics, automated sensors and irrigation.

    According to the World Economic Forum, the digital economy could add $180 billion to Africa’s GDP by 2025. Empowering disadvantaged children with digital skills ensures they can contribute to this economic potential and bridge the digital divide.

    Junior Lab is part of a vision to improve access to technology education in Nigeria, with the goal of setting up mini-ICT labs with modern equipment, tailored curricula and dedicated trainers. Each lab will address strategic national challenges in Agriculture and Climate Tech, Manufacturing and Production, Energy and Renewables, as well as Technology and Digital Innovation.

    NNPCL and SPDC have supported this mission. Speaking for SPDC, Igo Weli, general manager of Corporate Relations, noted: “It’s exciting to witness transformation in not just technical skills of young people but also their confidence and leadership…’’

  • Shell to support indigenous firms

    Shell to support indigenous firms

    Oil major, Shell has restated commitment to the development of Nigerian companies through contract awards and scaling up of expertise.

    The commitment was given at the 13th edition of the Practical Nigerian Content forum in Yenagoa, Bayelsa State where Shell companies in Nigeria are among more than 700 oil and gas entities taking part.

    The four-day conference with the theme: “Deepening the Next Frontier for Nigerian Content Implementation” will see the hosts, Nigerian Content Development and Monitoring Board (NCDMB) and participating companies review progress on the development of Nigerian content pertaining to the implementation of the Nigerian Oil and Gas Industry Development (NOGICD) Act since it was enacted in 2010.

    Shell companies in Nigeria are participating at the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98 billion to the businesses in 2023 in continuing effort to develop Nigerian content in the oil and gas industry.

    The contracts, awarded by the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG) present a three per cent increase from the 2022 performance of $1.92 billion.

    Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project Olaposi Fadahunsi, representing SNEPCo Managing Director, Ron Adams, told participants at the opening of the forum that several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.

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    “Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress,” Fadahunsi said. He commended the Nigeria Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act.

    In addition to contract awards, Shell companies have implemented projects under the Human Capital Development Fund, including the Niger Delta University learning centre and digital library project and the Federal University of Technology Information Technology Hub. Both projects were inaugurated this year, in collaboration with SPDC Joint Venture partners – Nigeria National Petroleum Company Limited (NNPC), TotalEnergies and Nigeria Agip Oil Company Limited (NAOC).

    Other projects include the University of Lagos Geosciences Centre of Excellence, Nigeria Diving School and funding of ongoing research at the University of Ibadan to develop a synthetic-based drilling fluid.

    Shell Companies in Nigeria also continue to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta post graduate scholarships since 2016.

    Fadahunsi said: “As we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% of the graduates who won the awards securing employment in the oil and gas industry, academia and Information Technology, among other sectors, within one year of completing their studies. Nigerian content will continue to be an important part of Shell operations.”

  • LNG: Shell starting arbitration hearings with Venture Global, says CEO

    LNG: Shell starting arbitration hearings with Venture Global, says CEO

    Shell is starting arbitration hearings over the supply of Liquefied Natural Gas (LNG) from Venture Global’s Calcasieu Pass facility, Shell Chief Executive Officer (CEO) Wael Sawan said recently, according to a Reuters report.

    It is further reported that Shell and other companies including BP, Galp and Repsol have launched contract arbitration cases in the United States over inability to obtain contract cargoes for more than two years.

    “Frustratingly, we have got no volumes against our term agreement which underpinned the financing for the project. We’re going through arbitration hearings this quarter,” Sawan said on a call with Reuters analysts.

    Read Also: Shell, Renaissance’s $2.4basset sale deal to resume

    Shell and others say they have lost billions of dollars in profit from gas promised under long-term contracts but it was not delivered. Venture Global LNG contends it has not fully commissioned the Louisiana plant.

    Previously, Venture Global LNG had criticised Shell for its poor performance record at its own LNG facilities. Many industry observers see this accusation by Venture Global as reminiscent of the legal issues faced by NLNG a Shell Subsidiary, where it was found that the company had breached a contract by failing to deliver at least 19 cargoes of LNG, under a contract signed in January 2020.

    This led to a London arbitration panel and an England and Wales High Court of Justice ruling against NLNG in July 2024. The arbitration panel included John Beechey CBE, J. William Rowley KC, and Nevil Phillips.

    Shell accuses Venture Global LNG of wrongfully earning $3.5 billion, according to an earlier report by the Financial Times.

  • Shell, Renaissance’s $2.4basset sale deal to resume

    Shell, Renaissance’s $2.4basset sale deal to resume

    Issues around the blockage of Shell’s bid to sell off its asset for up to $2.4 billion to Renaissance consortium, by upstream oil regulator, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) would soon be resolved, it was gathered yesterday.

    NUPRC found some issues with the proposed sale of the oil major’s onshore assets to a consortium of local companies but they should be resolved soon, Presidential Special Adviser  on Energy, Olu Verheijen, said.

    “I am sure that in short order, it will be resolved with the regulator in a way that addresses our own objectives to continue to accelerate exits for international oil companies,” Verheijen said during a call with the energy reporters’ in Lagos.

    The Federal Government had blocked Shell’s bid to dispose of Shell’s entire onshore and shallow-water oil operations, but approved a similar deal by Exxon Mobil with Seplat Energy which had awaited regulatory approval for more than two years since a $1.28 billion fee was announced in February 2022.

    NUPRC CEO Gbenga Komolafe, in a speech in Abuja, had said the Shell deal “could not scale (the) regulatory test,” but did not elaborate.

    President Bola Tinubu had signalled on Oct. 1 that the Exxon-Seplat deal would receive ministerial approval in a matter of days after getting clearance from the regulator.

    “We welcome the regulator’s announcement and look forward to formally receiving the ministerial consent as we work toward the conclusion of the sale,” Exxon said in a statement.

    A Shell spokesperson did not immediately respond to a request for comment.

    The rejection was seen as a blow to Shell’s strategy to pivot toward deepwater for future investments and reflects the growing challenges that oil companies face in Nigeria.

    Oil majors operating in Nigeria, Africa’s largest oil exporter, have been retreating from onshore operations hampered by theft and sabotage, opting to focus future investments on newer and more lucrative deep offshore fields.

    Read Also: Shell to remain in Nigeria despite divestments

    The Shell assets hold a combined estimated volume of 6.73 billion barrels of oil and condensate and 56.27 trillion cubic feet of associated and non-associated gas.

    In trying to exit the oil-rich Niger Delta, Shell follows Exxon Mobil, TotalEnergies (TTEF.PA), opens new tab and Eni (ENI.MI), who wanted to do so due to security concerns.

    NUPRC approved the sale of onshore assets by Eni’s local unit to Oando in July and another from Equinor (EQNR.OL), to new entrant Project Odinmim.

    Environmental activists and some communities opposed the Shell-Renaissance deal, tying Shell to a string of lawsuits for environmental restoration and compensation for land and rivers damaged by oil spills.

    In April, NUPRC started evaluating Shell’s divestment to the consortium, which comprises four Nigerian exploration and production companies and an international energy group.

  • NCDMB, Shell gift engineering studio, ICT hub to FUTO

    NCDMB, Shell gift engineering studio, ICT hub to FUTO

    The Nigerian Content Development and Monitoring Board (NCDMB) and the Shell Petroleum Development Company (SPDC), with its joint venture (JV) partners, have unveiled an engineering design studios and an information and communication technology (ICT) hub at the Federal University of Technology, Owerri (FUTO).

    The facilities were donated in furtherance of the Nigerian Content Human Capacity Development (HCD) programme, which had focused on institutional strengthening, equipping universities and revamping select technical and vocational schools across the country, in a bid to develop competent technical manpower and craftsmen needed in the oil and gas industry and the linkage sectors.

    The new facilities include two state-of-the-art Engineering Design Studios and a fully furnished 100-seater Main ICT Lecture Hall, equipped with computers and smartboards. The studios are designed to serve as a “visually stimulating collaborative workspace that fosters an environment where students can engage in group work, brainstorming sessions, and ideation meetings.”

    Other facilities are a 200KVA diesel generator, diesel storage tank, generator house, borehole, overhead water tank, perimeter mesh wire fence, a car park as well as shallow drains and landscaping.

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    In his remarks at the ceremony, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, said the studios and hub were initiated in furtherance of Federal Government’s aspirations for development of competent technical manpower to support activities in the oil and gas industry and its linkage sectors. The impartation of specialised skills through expansion and modernisation of academic infrastructure, he noted, has to be accelerated.

    According to the NCDMB boss, who was represented by the Board’s Director in charge of Capacity Building, Ama Ikuru, “We shall keep enhancing institutional capacity to equip our students with the requisite knowledge and skills needed to compete globally in the wake of the 4th industrial revolution where Artificial Intelligence, data science, Internet of Things, robotics dominate.”

    Recalling several interventions by the NCDMB in academic institutions to boost acquisition of contemporary skills, Engr. Ogbe said, “the Board has carried out the upgrade of many vocational schools and universities under its Technical and Vocational Education and Training Centres (TVETs) upgrade programme” and that it believes in “the significance of education particularly the Science, Technology, Engineering and Mathematics (STEM) courses,”

    In his own address, the Managing Director and Country Chair of SPDC, Osagie Okunbor, described the Engineering Design Studio and ICT Hub as a “very important human capital development project” that has resulted from a fruitful collaboration between SPDC, JV partners, notably, NNPCL, SPDC, TotalEnergies, Nigeria Agip Oil Company (NAOC), and NCDMB.

    Represented by the General Manager, External Relations, Shell Petroleum Development Company (SPDC) Igo Weli, Okunbor disclosed that FUTO was “selected to benefit from institutional strengthening in the catchment areas of SPDC’s Assa North Ohaji South Gas Development Project” and that the facility was in line with the associated Nigerian Content Human Capacity Development Plan” and “in accordance with the provisions of the NOGICD [Nigerian Oil and Gas Industry Content Development] Act, 2010 and NCDMB’s HCD Guidelines of 2020.”

    He promised that “A 40KW solar system will be installed in the coming weeks to ensure sustainable energy supply” to the facility.

    In a related address, the Chief Upstream Investment Officer, NNPCL Upstream Investment Management Services, Bala M. Wunti, observed that “Innovation thrives in an environment where ideas can be freely exchanged and developed,” adding that “The Engineering Studio and ICT Hub is designed to be such a place where students, researchers, and faculty can collaborate on projects, share knowledge, and push the boundaries of what is possible.”

    Represented by the Senior Advisor Stakeholders Relations, Halimat Wilson, the NNPC top official stated that the true impact of the facility would be measured by the success stories that emerge from it.

    Governor Hope Uzodinma, represented by the Commissioner for Digital Economy and E-Government, Chimezie Amadi, thanked Shell and its partners and the NCDMB for providing the state with what he described as vital digital infrastructure. He said the facility would serve as a centre for innovation and creativity that would contribute to the development of the State.

    Earlier in a welcome address, the FUTO Vice Chancellor, Professor Nnenna Nnannaya Oti, said the facility “aligns with the critical mandate of the University, to jumpstart national development through indigenous technology-based teaching pedagogy that emphasises practical knowledge, innovations and problem solving.”

    She expressed profound appreciation to the Managing Director and Country Chair of Shell, the Executive Secretary of the NCDMB, and the Group Chief Executive Officer of NNPCL, among others, “for making such a landmark donation” to the University.   

    The dignitaries were conducted round the facilities before the ribbon cutting.

    On the NCDMB team were the General Manager, ICT, Obinna Osuji, Zonal Coordinator, Abia and Imo States, Emma Ohanere, and Manager, Capacity Building, Dokubo Obongo.

  • Kidnapped ex-Shell worker rescued in Akwa Ibom

    Kidnapped ex-Shell worker rescued in Akwa Ibom

    • •Abductor killed

    The Police Command in Akwa Ibom State has rescued a 63-year-old retiree of Shell Petroleum Company who was kidnapped by unknown gunmen and shot dead the suspected kidnapper.

    The command’s Spokesperson, ASP Timfon John, made this known in a statement yesterday in Uyo, the state capital.

    John said the victim, who was abducted on June 17 and held hostage by his abductors, was rescued unhurt in a compound at Ikot Udobong Village in Etim Ekpo.

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    “Upon sighting the police, the kidnappers opened fire at them. One of the kidnappers was wounded while the others fled,” she said.

    The police spokesperson said the state Commissioner of Police, Mr Waheed Ayilara, had ordered the command’s SWAT operatives to swing into action.

    ”Efforts are seriously ongoing to arrest the fleeing members of the gang for prosecution,” she said.

    John said preliminary investigations indicated that the kidnappers had initially demanded N50 million as ransom for the release of their captive.

  • NGA salutes Okunbor, Shell for gas contribution

    NGA salutes Okunbor, Shell for gas contribution

    The Nigerian Gas Association (NGA) has recognized and expressed deep appreciation for the outstanding contributions of Osagie Okunbor, Managing Director of the Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair of Shell Companies in Nigeria, towards the advancement of Nigeria’s gas sector.

    This recognition came during a recent courtesy visit by the NGA’s Executive Council members to SPDC, during which Okunbor and Shell were commended for their pivotal role in collaborating with the Association on crucial advocacy and industry initiatives.

    This collaboration has significantly influenced the development and implementation of critical policies, laws, and regulations, vital to the growth of the gas sector in Nigeria.

    The president of the NGA, Akachukwu Nwokedi, lauded Okunbor and Shell’s consistent support and active involvement in initiatives aimed at harnessing Nigeria’s vast gas reserves for commercialisation.

    The NGA with the active support of key stakeholders has actively supported numerous significant gas industry initiatives such as the development of the Gas Master Plan, the creation of the Domestic Gas Pricing Framework, the implementation of the Nigerian Gas Transportation Network Code, the Gas Expansion programme, and input into the Petroleum Industry Act (PIA) 2021 that have prioritized and incentivized investment in Nigerian gas.

    “The NGA is charged with coordination of the Decade of Gas Secretariat which has been instrumental in advancing the Decade of Gas initiative towards reshaping the future of Nigeria’s gas sector. The NGA’s immediate past president, a senior Shell executive is the foundational director of the Decade of Gas secretariat.”

    Okunbor appreciated the NGA’s unwavering focus and alignment on critical industry issues, noting that the association has served as a disciplined platform for gas advocacy while remaining consistent with its objectives.

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    He reaffirmed Shell’s commitment to supporting the NGA and actively contributing to unlocking the vast potential of gas in Nigeria.

    Nwokedi reiterated the NGA’s commitment to becoming a leading resource centre for the gas industry, promoting investment opportunities in Nigeria’s gas sector through global advocacy and targeted industry forums/events.

    “The NGA also aims to increase the participation of Nigerians across the gas value chain and enhance its strategic focus by relaunching the NGA Advisory Group. This group will play a crucial role in promoting sound gas policy formulation among regulatory stakeholders.

    “The NGA is determined in its drive to advance Nigeria’s gas and energy sector as well as promote Diversity Equity and Inclusion (‘DEI’) within it. The association strives for sustainable growth and inclusivity in the nation’s energy landscape through collaborative efforts with industry leaders like Mr. Osagie Okunbor and institutions like Shell,” he said.

  • Oyo partners Shell Nigeria Gas to build gas distribution network

    Oyo partners Shell Nigeria Gas to build gas distribution network

    Oyo state government and Shell Nigeria Gas (SNG) have signed an agreement to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

    SNG will build and operate the gas distribution network, which will serve customers across Oyo State, for 20 years.

    Speaking at the signing ceremony, Oyo State governor, ‘Seyi Makinde, described the project as “a catalyst for development in the state.”

    He said: “This project fits into our plan to drive innovation and industrialisation in Oyo State and we’re ready to partner with more companies and other organisations to enhance the delivery of relevant projects.”

    Managing Director SNG, Ralph Gbobo, said the agreement was “a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.”

    He explained: “The gas distribution project will be a game-changer in the industrialization drive of the Oyo State Government and help boost internally generated revenue and result in more job opportunities.

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    “For SNG the project is a milestone in our effort to continue growing the energy supply to businesses in Nigeria in line with Nigeria’s ambition to drive progress on the back of natural gas availability across Nigeria under the Decade of Gas initiative.”

    The project will start with the construction of gas distribution infrastructure along 15km of pipelines route and will grow to deliver up to 60 million standard cubic feet of gas per day across the state. First gas is expected Q4, 2025.

    Managing Director of the Shell Petroleum Development Company of Nigeria Ltd and Chairman, Shell Companies in Nigeria, Osagie Okunbor said: “This event points to the value of partnership as Shell continues to power progress in Nigeria through more and cleaner energy solutions for commercial and industrial customers.

    “Building on our presence in the country since the 1960s and the wide marketing and trading reach of Shell Energy, we are excited about developing gas distribution solutions and delivering competitive and reliable energy for power generation and industrial use across Nigeria.”

  • LNG supply: Shell tables claims against Venture Global, NLNG faces arbitration hurdles

    LNG supply: Shell tables claims against Venture Global, NLNG faces arbitration hurdles

    Following restriction of Liquefied Natural Gas LNG supply to its customers, Shell PLC has made claims against Venture Global LNG (VGL), a United States-based LNG exporter, for its breach of contract to supply LNG cargoes.

    Also, Nigeria LNG may risk sanctions from a UK High Court for a similar breach of an LNG supply contract.

    Both Venture Global LNG and NLNG have been facing hurdles in the United States and in the United Kingdom for  breach of contract in a relatively similar fashion.

    While Shell Plc filed its claim with U.S. regulators, the NLNG breach, has now been advanced to the UK High courts for further litigation.

    Nigeria LNG is challenging the enforceability of the arbitral award’s demand order, issued by the arbitration panel.

    According to Reuters, report, Shell Plc has escalated its dispute with Venture Global LNG. It accused the liquefied natural gas producer of restricting supply access to it and other customers while exporting over $18 billion in LNG.

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    In a letter sent to the Federal Energy Regulatory Commission, Shell requested the commission to compel Venture Global LNG to disclose plant commissioning data to clarify the cause of delayed commercial operations.

    Shell and other European companies say they contracted with Venture Global LNG but did not get their gas cargoes under long-term contracts.

    They alleged that Venture Global LNG has been selling gas from the plant for more than a year to others, costing them billions in lost profit.

    On its part, Nigeria LNG was held to be in breach of contract by failing to deliver 19 cargoes under a contract it executed in January 2020.

    The cargoes, which were due for delivery between October 2020 and October 2021,, have not been delivered.

    In pleadings made by NLNG in its Particulars of Claims to the High Court of Justice in England and Wales Commercial Court, it’s breach was  confirmed by a final arbitration award dated 30th January 2023.

     The arbitration tribunal  comprised  Mr John Beechey CBE, Mr J William Rowley KC and Mr Nevil Phillips.

    Nigeria LNG Ltd., is significantly owned by Shell, Total, and Eni.

    An industry expert cited similarities between the disputes involving Venture Global LNG and Nigeria LNG.  The source attributed the challenge to the unexpected surge in the LNG market.

    “ The reason for this surge in disputes maybe related to the unexpected turn in losses to highly profitable margins, as high as $90 million per cargo, at the beginning of the Russian Ukraine conflict, post COVID market recovery and a huge demand in Asia and European markets, it is seen as a golden Era for LNG cargoes.

    “ This situation may have prompted numerous defaults on agreements, with major LNG suppliers opting to retain higher margins at the risk of lengthy litigations,” the source added.