Photo From The opening session of the 2022 edition of the Nigerian Oil and Gas Conference and Exhibition in Abuja
All Posts in "Day: July 5, 2022"
Divestment Enabler For Nigeria’s Upstream Sector Growth -NUPRC
Prospective indigenous player should perceive the International Oil Companies divestment in some of the upstream assets as an opportunity rather than a threat to the development of the Nigerian upstream petroleum sector,Gbenga Komolafe the Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said.
Komolafe disclosed on Monday,while speaking on the topic ‘IOC Divestments – Nigeria’s Energy Security, and the Role of the IPPG in this new mix’ at the Independent Petroleum Producers Group (IPPG) dinner at the Nigerian Oil and Gas Conference.
He advised that it was high time to look inwards in the sector to proof the capability of the local content in value addition and optimizing development of the nation’s hydrocarbon resources.
He said:”Therefore, we encourage you as indigenous players across the value chain to deploy your competency and ingenuity in promoting vibrancy and capacity utilization in the industry.Remarkably, I am proud to say that indigenous companies contribute about 30% of crude oil and 20% of the gas production, as well as 40% and 32% of oil and gas reserves, respectively. Furthermore, seven (7) indigenous companies are among the top twenty (20) companies with the highest oil reserves in Nigeria.
“It is estimated that the energy demand across Africa in 2040 would increase by about 30 percent compared to the current level. Consequently, the divestment of the IOC away from our onshore and shallow water terrains present a massive opportunity for new operators of those assets, in which the IPPG is better positioned to take advantage of in order to meet the increasing energy demand.
He also said the Commission expects the IPPG to stay competitive, optimise future energy security and be resilient in our oil and gas extractive industry.
He advised that the IPPG should adopt an innovative and pragmatic approach towards operational excellence to include decarbonisation and improvement in cost efficiency; creation of enabling environment with their host communities and utilization of appropriate skills and capabilities.
He added:”In this new mix, the IPPG is expected to have an increased focus on natural gas exploitation and utilization. As you position to take the opportunity being presented by the divestments, the need to be prepared to make the necessary investments for gas pipeline infrastructure, gas processing facilities, meeting domestic gas delivery obligations to strategic sectors of the economy, and global gas export requirements should be in focus” .
He assured that the Commission would continue provide the requisite regulatory support in line with the provisions of the PIA 2021, stressing it is encouraging that Section 52 in the PIA provides for the establishment of the Midstream and Downstream Gas Infrastructure Fund.
He advocated the need for strengthening the capacity of IPPG through collaboration, strategic alliances, mergers and acquisitions targeted at producing synergies and large independents that can compete with multinationals.
TotalEnergies Mulls Increased Oil,Gas Output
TotalEnergies EP Nigeria Limited will in five years, will be ramping up the rate at which it is currently producing oil and gas.
Victor Bandele, the Deputy Managing Director of TotalEnergies, disclosed on Monday that the plan will happen throughout the world where the company operates.
He spoke at the opening session of Nigerian Oil and Gas Conference, NOG 2022, in Abuja,where he also noted that his company holds vital position in Nigeria’s economic life, and is wholly responsible for the production and distribution of over 20% of the energy that is consumed in the whole of country.
He said,while fossil fuel production will be boosted by the company, it will still continue to diversify its business into the development of more renewable energy.
He added that energy diversification from fossil to cleaner fuels will provide more business opportunities, while also benefitting the natural environment.
He said that the diversification drive will continue and, by 2050, 50% of all the energy developed by Total Energies will come from gas, with 35% coming from oil, while the remaining 15% will be based on electricity.
In his remarks, the Executive Secretary, Nigerian Content Development Monitoring Board (NCDMB),Engineer Simbi Wabote, said this year’s Nigerian content seminar will focus on the seventh ministerial regulations officially gazetted by the federal government last year.
He said the regulation provides for the minimum standards, facilities, personnel and technology for trading in the oil and gas industry.
Nigeria Imports N293bn Aviation Fuel In Three Months
Nigeria spent N292.56 billion on the importation of aviation fuel, known as Jet A1 in the first three months of the year – January to March 2022,the National Bureau of Statistics (NBS) has said.
NBS in its Foreign Trade Statistics Report for First Quarter of 2022, aviation fuel, accounted for 4.96 per cent of Nigeria’s total import of N5.9 trillion, with the commodity ranking the second most imported commodity in the country in the first quarter.
It added that aviation fuel import in the first quarter of 2022, represented a significant increase of 287.29 per cent compared to the N75.54 billion spent on its import in the fourth quarter of 2021.
According to the report,in the fourth quarter of 2021, jet fuel import was the sixth most imported commodity, accounting for 1.27 per cent of the period’s total import figure of N5.94 trillion.
There was no mention of jet fuel import in the foreign trade statistics of the NBS, despite the country recording total imports of N6.85 trillion for the period in the first quarter of last year,the report said.
Besides,the agency reported that the most notable import item in the period was Premium Motor Spirit (PMS), also known as petrol, which gulped N1.67 trillion of Nigeria’s import bill.
According to the agency, fuel import figure in the first quarter of this year,represented an increase of 15.97 per cent and 142.73 per cent, when compared to N1.44 trillion and N687.74 billion spent on the import of the same commodity in the fourth quarter of 2021 and first quarter of 2021, respectively.
It added : “The value of total imports in first quarter 2022 stood at N5.90 trillion, this decreased by 0.67 per cent when compared with the value recorded in the fourth quarter of 2021 (N5.94 trillion); but increased by 21.04 per cent compared to the value recorded in the corresponding quarter of 2021, which is N4.875 trillion.
“In terms of Imports, in the first quarter of 2022, China, The Netherlands, Belgium, India and the United States were the top five countries of origin of imports to Nigeria. The values of imports from the top five countries amounted to N3.44 trillion representing a share of 58.34 per cent of the total value of imports.“The commodity groups with the largest values among the top imported products were ‘Motor Spirit ordinary’ – N1.507 trillion), ‘Kerosene type jet fuel’ – N292.56 billion, and ‘Durum wheat (not in seeds)’ – N258.31 billion.”
Appeal Court Empowers FIRS To Collect VAT From Lagos Hotel Owners
The Court of Appeal sitting in Lagos has ruled that the Federal Inland Revenue Service (FIRS),can collect Value Added Tax from. Lagos Hotel Owners Association of Nigeria.
It quashed the Federal High Court judgment in favour of the Lagos Hotel Owners Association of Nigeria.Justice Rilwanu Aikawa of the Federal High Court on October 3, 2019, declared that the FIRS lacked the powers to collect VAT from the association’s members.
It further struck out a counter-claim filed by the Lagos State Government against the FIRS.
The Federal High Court had held that Consumption Tax on goods and services consumed in hotels, restaurants and event centres is a residual matter, which is within the exclusive legislative competence of a state government.
It upheld the powers of the Lagos State Government to charge and collect Consumption Tax from hotels, restaurants and event centres within the state.
It further stopped the federal government from collecting VAT on goods consumed in hotels, restaurants and event centres.
According to the court, Consumption Tax on hotels, restaurants and event centres is in the purview of the state government based on the 1999 Constitution and the Taxes and Levies (Approved List for Collection) Act (Taxes and Levies Act).
The court said the provisions of the VAT Act in respect of the consumption of goods and services in hotels, restaurants and event centres are inconsistent with the Constitution and the Taxes and Levies Act and are therefore void.
It further held that under the Taxes and Levies Act, Consumption Tax arising from transactions involving the sale of goods and services in hotels, restaurants or event centres is to be collected by the state government.
The court also stated that since the Taxes and Levies Act (as amended in 2015) was enacted after the VAT Act of 1993, its provisions have tacitly repealed any provisions of the VAT Act concerning hotels, restaurants and event centres and should thus prevail.
It, therefore,stopped the FIRS from collecting VAT on transactions relating to the consumption of goods and services in hotels, restaurants and event places in Lagos.
But, FIRS proceeded to the Court of Appeal and subsequently secured a stay of execution pending the outcome of the appeal filed.
Defect: Lagos Shuts 137 Buildings
No fewer than 137 properties in Lagos have been closed by the Lagos State Physical Planning Permit Authority on account of building irregularities.
The enforcement exercise took place in six district offices of LASPPPA, which were Alimosho, Mosan Okunola, Egbe- Idimu, Ikotun Igando, Agbado- Oke Odo and Ayobo-Ipaja,the agency said in a statement by its General Manager,Tpl. Kehinde Osinaike.
According to the agency, twelve properties were sealed within the Alimosho District of LASPPPA, while 22 properties were sealed at Mosan Okunola.
It said:“In Egbe-Idimu, 29 properties were affected with another 32 sealed at Ikotun Igando. Also, in Ayobo-Ipaja and Agbado-Oke Odo, 25 properties and 17 properties were sealed with padlocks respectively. Some properties were also sealed with caution tape at the 6 District Offices.”
The properties that were sealed contravened the State Physical Planning Regulations, adding that the properties were mostly residential buildings which were converted for commercial use without getting the necessary permits and approvals,the statement said
Other sealed properties, he said, were industrial, institutional and commercial buildings under construction for failure to obtain a planning permit or approval and for erecting structures that did not conform to physical planning regulations.
Oyo Needs More Primary School Teachers -UBEC
The Universal Basic Education Commission has implored Oyo state government to employ more primary school teachers
It lauded the qualitative education pupils in the state are enjoying under Governor Seyi-Makinde’s administration.
The Executive Secretary, Universal Basic Education Commission, Dr. Hamid Bobboyi gave the charge today in Ibadan, as part of the 2022 National Personnel Audit team’s recommendation to the state government.
Bobboyi,said the need to recruit more teachers became manifest during the just concluded Personnel Audit Exercise in the state by the Commission in collaboration with OYOSUBEB.
He commended the Oyo State Universal Basic Education Board for cooperating with its Audit team in the conduct of the National Personnel Audit Exercise.
Speaking through the head of team, Engr. Muhammed Bello, the ES said: “We urge Oyo state government to look into recruitment of teachers into the public primary schools in the state”.
He pledged the commitment of the commission to look into other areas to move basic education forward in Oyo State.
He added that the National Personnel Audit Exercise was a major activity in data gathering used in planning and development of education.
Bobboyi said that the commission discovered a lot of progress made, compared to the previous exercise.
He solicited the cooperation of other stakeholders in education in ensuring accurate data so as to know where every Nigerian child of school age was at any given time.
Responding, the Executive Chairman, Oyo State Universal Basic Education Board, Dr. Nureni Aderemi Adeniran admitted the acute shortage of teachers in the State, saying the state government is making efforts to look into fresh recruitment and replacement of seconded teachers in the state.
“We are aware of the shortage of teachers in our primary schools. The state government under the leadership of our dear Governor, Engr. Seyi Makinde is making efforts to ensure the problem is resolved in time”, Adeniran added.
He said that the state government will continue to collaborate with the Federal Government and other relevant agencies to ensure the public education sector in the state thrives.
He also hinted that school owners and proprietors operating illegally in the State would be made to face the law.
He advised such schools to regularise their registration by visiting the Ministry of Education, Ibadan.
Adeniran reiterated the Oyo State government’s commitment at revamping education in the state.
Dr. Adeniran commended the National Personnel Audit team’s report on data of schools in the State, adding that the update will help the State in planning its education in the forthcoming fiscal budget.
Why Fuel Scarcity Lingers-Oil Workers
Oil workers under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG),says the lingering fuel scarcity in the country is due government’s misplaced priority.
NUPENG President, Comrade William Akporeha, explained that rather than blaming tanker drivers for petrol scarcity, the blame should be put on the doorstep of the government, who he said had refused to build new refineries in the last 30 to 40 years.
He spoke during the 5th Quadrennial Delegates Conference of the Petroleum Tanker Drivers (PTD) branch of NUPENG in Ibadan the Oyo State capital, where he also questioned the rationale for importing petrol and diesel when these products could be refined locally if the refineries are working.
He said: “Why are the scarcity of petrol? Where is the product? The scarcity is not caused by tanker drivers but government’s misplaced priority. If the product is available, members will move it around.
“By importing the product, you are exporting capital, exporting jobs by doing so,” the NUPENG boss said. To turn the tide, he called on the Federal Government to put the refineries to ensure that petroleum products are refined locally. I don’t think it’s rocket science to do that. The refineries we have today were built by the military 30 to 40 years ago”.
In his remarks,outgoing National Chairman, PTD Branch of NUPENG, Comrade Salimon Akani Oladiti, said the ban on night travelling by tanker drivers have helped in saving lives and drastically reducing the rate of accidents, especially at night.
According to him, through the collaboration with stakeholders especially the Federal Road Safety Corps (FRSC), the rate of accidents involving Tanker Drivers had reduced while Tanker Drivers’ involvement in Petroleum Pipeline vandalization has been tackled with all the seriousness it deserves.
Oladiti recalled his concerns for the safety of lives of Petroleum Tanker Drivers dated back to his younger days as a driver and on the assumption of office in 2014, he made a policy to inculcate discipline among members hence the decision to ban night traveling.
He added that while accidents involving tanker drivers had reduced, fuel scarcity has been minimized due to the commitment of PTD members who are always on duty.
He disclosed that the PTD partnership with NARTO, the Nigerian National Petroleum Corporation (NNPC), the FRSC, and other relevant stakeholders has brought incessant strikes by PTD members to the barest minimum.
He also commended the FRSC Corps Marshall, Dr. Boboye Oyeyemi for collaborating with PTD to introduce the use and enforcement of speed limits in their trucks.
“This measure helped in a tremendous way to reduce incidences of Tanker accidents on our roads. Instead of being enemies, we have partnered so well like friends and mutually helped to reduce carnage on our roads. For that, our wonderful Corps Marshal deserves a special award today,” he added.
Vandalism: Kaduna Electric Laments Loss Of N386m To Vandalism In Six months.
The Kaduna Electricity Distribution Company has bemoaned the rising cases of vandalism of power supply infrastructure in its franchise which has taking heavy toll on the company’s operations.
The company conveyed its ill-feeling in a statement,saying 158 distribution sub-stations were vandalized across the four franchise states of the Company between January and June this year.
The Chief Engineering and Technical Services Officer of the Company, Engineer Bello Musa,disclosed that his company lost N238,701,800:65 (two hundred and thirty eight million, seven hundred and one thousand, eight hundred naira, sixty five Kobo) worth of equipment .
He was quoted in the statement as also saying that the company lost N147,953,449:01in expected revenue during the period under review.
Some of the prolonged outages and service disruption suffered by the customers,he said, are due to vandalism and theft of power supply assets of the company by some selfish and criminal elements in the society.
He described the vandalism of power supply assets as “despicable act of sabotage and heinous crime against the society”.
“The destruction of critical national assets like power supply infrastructure by a few unpatriotic elements is a despicable act of sabotage, a mindless criminality and the pinnacle of irresponsibility which we must collectively fight as a society,” he said.
According to him, 54 distribution sub-stations of the 158 vandalized have been repaired and supply restored to the affected customers while efforts are being made to bring the remaining to back to service.
He implored security agencies and the prosecuting authorities to bring full weight of the law against the perpetrators of this crime.
He also advocated the need for more vigilance by communities and neighborhood vigilante groups so as to arrest the situation.
NNPC, Sahara JV To Boost Supply Of Cooking Gas In West Africa
WAGL Energy Limited, a joint venture business operated by the Nigerian National Petroleum Company (NNPC) Limited and Sahara Group, is making moves to develop and construct jetties across West African countries to boost the supply and penetration of Liquefied Petroleum Gas (LPG) in the sub-region.
Emmanuel Ubani, Managing Director, WAGL Energy Limited disclosed that discussions were already at advanced stages for the first in the lot.
He explained that the the move was part of the several efforts by the company to take advantage of the opportunities in the energy transition space, adding that WAGL had embarked on developing infrastructure to take beneficial advantage in the emerging energy transition era.
Acknowledging growing LPG demand in Africa, Ubani, advised that more strategic policies and investments are required to further promote and deepen the product’s utilisation in rural communities in the continent.
He said,for LPG to increase to a significant or dominant market position in Sub-Saharan African countries, an enabling environment for the sector must be put in place. He listed the elements that make up the enabling environment as infrastructure -both liquefaction and regasification plants, gas distribution, pipelines and/or gas distribution trucks, cylinder distribution and/or segmented local distribution to individual houses and industries.
He added:”All parts of the value chain must be in place and functional, that is, a distribution system to enable feasible access for the users must exist, a ready and vibrant market network and most importantly, acceptable and accommodating uses of the alternative energy source. Ensuring this requires both public and private investments at a level that allows for economies of scale, supporting in making the sector commercially viable. Sufficient attention on policy and strategic level, with clear responsibility allocation and appropriate regulation of the sector, is required.”
He said nations seeking to lead energy transition across the continent would need to massively de-risk and promote more private sector investment, a step he described as very critical.
He added:”Governments need to do a great job at providing an enabling environment for the sector to thrive. They need to take advantage of the abundancy and competitiveness of renewables and also support systemic innovation, especially as it affects the changing energy mix”