Mohammed Shosanya

The Nigerian Content Development and Monitoring Board (NCDMB) has completed 83 per cent of the 96 initiatives in the implementation of the 10-year strategic roadmap that was launched in 2017 to increase Nigerian content in the oil and gas industry to 70 per cent by the year 2027.

Its Executive Secretary, Simbi Wabote, stated this while delivering a keynote address on Tuesday during the opening ceremony of the ongoing 12th Practical Nigerian Conference at the Nigerian Content Towers in Yenagoa, Bayelsa State, with the theme, “Deepening Nigerian Content Amidst Divestments, Domestication and Decarbonisation”.

He recalled that the agency rolled out five pillars and four enablers to drive the focus areas under the roadmap, each supported with short, medium and long term initiatives.

Giving insight into the agency’s achievements in the implementation of the roadmap, he said, “We have completed 83% of the 96 initiatives under the strategic roadmap with focus now shifting to the remaining initiatives that require some heavy lifting to bring into fruition.

“Under the roadmap, the technical operations data in NOGIC-JQS shows that the number of registered industry operators moved from fifty-three (53) in 2018 to one hundred and fourteen (114) in 2023 representing about 100% increase. Within the same period, service companies increased from 8,000 to 11,000 while individual registrations increased from 149,000 to almost 400,000.

“Certification of NC Plans increased from 178 in 2022 to 255 in 2023 while the approved NC Compliance Certificates dropped from 197 in 2022 to 168 in 2023.

“We believe the higher certified NC Plans in 2023 will soon translate to approved contracts with NC Compliance Certificates as the industry get accustomed to the policy directions of the new government.”

He further said that a total of 889 expatriate quotas were approved in 2022 while 179 EQs were rejected, adding that the expatriate quota approval is trending down in the last five years.

He added: “This year, a total of 1,156 EQs were approved at the end of November compared to 889 approved in 2022. 328 EQs were approved, 179 rejected last year. The expatriate quota approval has been trending down from up till 2021 when it started an upward trending largely attributed to the post-COVID-19 business recovery, newly sanctioned projects such as Train-7, and the passage of the Petroleum Industry Act (PIA) of 2021.

“With the support of the industry, our sponsors, principals, advocates, staff, contractors, host communities, and even critics, the transformational impact of the delivery of these initiatives has been of resounding success.”

Speaking,the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, represented by the ministry’s permanent secretary, Gabriel Adadu, who joined via zoom, said the Federal Government would not relent in its effort at fostering local content within the sector, diversifying the country’s economy and also ensuring decarbonisation.

He said: “Nigeria’s commitment in fostering local content within the oil and gas industry remains unwavering. The diversification of our economy and the empowerment of our people through the expansion of indigenous participation in the sector is a cornerstone of national agenda.

“We recognize that divestment presents various challenges but there are also opportunities for strategic partnerships, technology transfer, local capacity building; and embracing these challenges tend to leverage the transition to empower Nigerian businesses to get better opportunities and stimulate growth.”

The Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, said the firm would always support the NCDMB, indigenous companies and partners to upscale local capacity.

He also stressed the importance of local capacity building in the advancement of indigenous participation in the sector to deepen Nigerian content.

Mohammed Shosanya

The Nigerian Upstream Petroleum and Regulatory Commission has announced that the Federal Government plans to cancel oil exploration leases that were granted to companies but remain unused without any exploration activities.

Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission,disclosed that only companies possessing both viable technical expertise and financial support would retain their leases.

He added:“Based on PIA (Petroleum Industry Act), the commission is focused on delivering value for the nation, so only firms that are technically and financially viable will keep their leases”.

He said the commission would initiate reviews of these leases, and awards of new leases would be “subject to specific terms and conditions.”

Recent data from the NUPRC reveals that, despite the issuance of approximately 53 exploration leases from 2003 until now, more than 60 percent of the prospecting licenses granted to both local and foreign oil companies have lapsed.

Of the 53 licenses issued, 33 have already expired and remain unrenewed, with four of them entangled in contract disputes. While the leases have not been automatically revoked, the regulatory body is no longer inclined to allow companies to retain these leases indefinitely.

The enactment of the Petroleum Industry Act (PIA) in 2021 has empowered the regulator to assess the technical and financial capabilities of companies holding oil exploration leases.

Investments in oil exploration within the country have been limited, as major oil companies withdraw from onshore and shallow water assets due to escalating insecurity, sabotage of oil infrastructure, and legal disputes with communities in the Niger Delta.

Mohammed Shosanya

The Nigerian National Petroleum Company Limited,has expressed its commitment to work with global partners in the march towards reducing methane emissions in oil and gas operations in seven years

On the sidelines of the ongoing United Nations Climate Change Conference, also known as COP28, taking place in Dubai, the United Arab Emirates, the Oil and Gas Decarbonization Charter was released,a statement said.

According to the statement,the Charter calls on the oil and gas sector to achieve the goal of reaching net-zero emissions for their own operations by 2050. It also includes commitments to achieve near-zero methane emissions and no routine flaring by 2030.

Speaking during a Panel Session titled “Accelerating the Elimination of Methane Emissions & the Decarbonisation of Oil & Gas,” NNPC Ltd’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan said the Charter was a major opportunity not just for the NNPC Ltd, but for the African sub-region.

“Africa contributes three percent to emissions, but that does not exclude us from the consequences of the emissions. I think the decarbonisation drive and the charter are not just ethical but also a strategic imperative for a major African National Oil Company (NOC) like ours.

“We believe this charter is an important one. We are committed to working with all stakeholders to deliver on that,” Eyesan stated.

She said to achieve its near-zero methane emissions, Nigeria has since declared this decade as Decade of Gas, which is not only geared towards producing more gas for export, but also towards producing gas for local economy and that of the entire African sub-region.

“I assure you that we are open to working with our partners towards achieving zero-flare and methane emission reduction by 2030. This fits perfectly with our dreams, and we consider it achievable,” Eyesan stated.

She described finance and technology as the two major challenges in delivering on the provisions of the charter, noting that for the two problems to be solved, African countries need to work with partners who have the technology and finance.

She expressed that NNPC Limited remains committed to expanding its alternative energy sources through investment in solar, wind, and other renewable sources.