Mohammed Shosanya

The Nigerian Gas Association,NGA, has recognized and expressed deep appreciation for the outstanding contributions of Mr. 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 Mr. Okunbor and Shell were commended for their pivotal role in collaborating with the association on crucial advocacy and industry initiatives.

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

Speaking,the President of the NGA, Mr Akachukwu Nwokedi lauded Mr Okunbor and Shells consistent support and active involvement in initiatives aimed at harnessing Nigeria’s vast gas reserves for commercialization.

“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.”

Mr. 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.

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

Mr. 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.

Mohammed Shosanya

For the Nigeria Liquefied Petroleum Gas Limited,thirty five years of birth and consistent value to Nigeria,one of the leading gas producing countries in the world,deserves spotlight for its uncommon feat.

The company’s success stories in the country’s economic environment,is visible for discerning minds and understood by stakeholders who had followed its trajectory since its inception.

Incorporated as a limited liability company under the laws of the Federal Republic of Nigeria on May 17, 1989 to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for national income,the company’s humble beginning started 10 years when the first cargo of Liquefied Natural Gas (LNG) was loaded for delivery to Montoir Terminal in France, NLNG .

It has since maintained its reputation as a safe, reliable, responsible and trusted supplier of LNG and Natural Gas Liquids (NGLs) worldwide and thus puts the country in global map.

Its high-flying impacts in the global LNG market is boosted by the company’s shared core values of safety,integrity, teamwork,respect, excellence and caring for people,which NLNG explains,
underpin all the work it does and the foundation of its business principles.

With assets worth about USD17.5 billion with 51% stake by international oil companies and 49 per cent belonging to the country through the Nigerian National Petroleum Company Limited (NNPC),the company impacts in Nigeria’s growth

Over the years,the company paid dividends of about USD18 billion to the Federal Government of Nigeria courtesy of its shareholding in the company,through Nigerian National Petroleum Company Limited, NNPC.

It’s also noteworthy that the company has paid about USD9 billion in taxes to the Federal Government of Nigeria.It also contributes to national wealth and the economic wellbeing of states in which it operates, by paying all applicable taxes and tariffs.

While payment to the Federal Government of Nigeria through its shareholding in Nigerian National Petroleum Company Limited, NNPC, for feedgas from inception till date is about USD15 billion,he company generated considerable Foreign Direct Investment (FDI) for the country,with its plant construction.

Interestingly,since 2008, the company has contributed about four per cent of Nigeria’s annual Gross Domestic Product (GDP). With rebasing of the GDP in 2014, NLNG’s contribution to the GDP is estimated at about one per cent.

It provided more than 12,000 jobs at the peak of construction of each plant. Overall, the major sub-contractors employed over 18,000 Nigerians in technical jobs in the Base Project (Trains 1 and 2).

Through each Nigerian Content plan for its contracts, NLNG has promoted the development and employment of Nigerian manpower thus helping to nip the spiralling level of unemployment in Nigeria in the bud.

For instance,over 12,000 direct jobs was generated during the construction phase of Train 7,which is expected to double or triple after the construction of the plant.

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Over the years,the NLNG has supported the development of community and Nigerian contractors to enhance their capacities and capabilities thereby enabling them to achieve standards of excellence.

Through the initiative to empower local contractors via the Finima Legacy Project,the company said indigenous contractors have made capital investments in their companies thereby expanding their operating capacity.

A senior official of the company said the the capabilities of local vendors have also been developed through mentoring and partnerships between more established Nigerian vendors and community vendors.

According to the company,the Nigerian Content commitment in the acquisition of six new technology DFDE ships by NLNG’s subsidiary, Bonny Gas Transport, led to major achievements such as a feasibility study for the establishment of a drydocking and ship-repair yard in Nigeria, the training and development of Nigerians (both in Nigeria and Korea) in various aspects of ship design and construction, and export of Nigerian goods for use in construction of BGT ships in South Korea.

For Train 7, 55% of both engineering activities and procurement will be carried out in Nigeria and by Nigerian vendors.

With the incorporation of its first subsidiary, Bonny Gas Transport (BGT), in 1989, the LNG shipping industry in Nigeria was born. Currently, NLNG, through NLNG Ship Management Limited (NSML), another of its subsidiaries, is the biggest employer of Nigerian seafarers on board its 13 BGT-owned ships

The company has trained hundreds of sea-going officers, some to the level of captains and chief engineers.

In recognition of funding as the bane of the Nigerian manufacturing industry,NLNG, in 2013 launched the USD1 billion NLNG Local Vendors Finance Scheme (NLVFS).This was increased to USD1.2 billion in June 2017 with the introduction of an additional participating bank to the scheme making a total of six participating banks.

The company explained that the scheme facilitates access to funds from six participating banks to NLNG-registered vendors (suppliers of goods or contractors of services). Under the scheme, vendors are able to get quicker access to finance at fairer terms for their NLNG related business operations ​by leveraging on NLNG’s relationships with the banks.

Little wonder,the Nigerian Content Development and Monitoring Board, NCDMB, has commended the Nigeria LNG Limited over what it described as remarkable success at promoting Nigerian Content in the country.

Its former Executive Secretary of the NCMDB, Engr. Simbi Wabote, gave the commendation at the Nigerian Content Stakeholders Retreat in Bonny, Rivers State, hosted by NLNG, in demonstration of its unwavering commitment to the advancement of local content in Nigeria.

He lauded the NLNG for its remarkable success at promoting Nigerian Content, recalling that at the inception, the company’s management level had 90 per cent expatriates and 10 per cent Nigerians.

He added:“However, the table has now turned the other way, with the entire Management now consisting of Nigerians” he added.

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The Nigeria LNG Limited has helped to protect the environment from the effects of gas flaring and contributed to the reduction of gas flaring in Nigeria from 65 to about 20%.

The company is also protecting the environment by the significant reduction in felling of trees for use as fuels.

Additionally,NLNG has contributed to a healthier nation by encouraging the use of cleaner energy through its domestic LPG supply programme which has also resulted in reduced expenditure on respiratory health issues.
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Last year,NLNG Shipping and Marine Services Limited (NSML) has launched its Clean Water Initiative, a programme to raise awareness of the dangers of plastic pollution and to advocate for action to address the issue.

The Chief Executive Officer of NSML, Mr Abdulkadir Ahmed,noted the detrimental effects of the plastic crisis on economic activities, human health, and the environment.

For over a decade,NLNG’s intervention in the supply of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, to the domestic market under the NLNG Domestic LPG (DLPG) Scheme has helped reduce the use of dirty fuel sources for cooking.

Besides,it has stimulated growth in the industry by guaranteeing LPG supply, availability, affordability and enabling the development of a value network for a sustainable ecosystem towards a better Nigeria.

NLNG cumulatively supplied over 1,452kt of LPG to the domestic market, spurring a steady rise in annual domestic consumption in a market that was below 50kt per annum in 2007 to over 600kt per annum in 2018. To ensure steady supply of products, deliveries are made through NLNG’s dedicated vessel chartered for the DLPG Scheme.

Its DLPG market deepening strategy yielded some further dividends with the commencement of deliveries to Stockgap Terminal in Port Harcourt, as part of deliberate moves to encourage growth of the sector beyond Lagos and reduce the impact of congestion of the Lagos ports on deliveries into the market.

NLNG has committed to delivering 100% of its LPG production​ to the domestic market through Nigerian companies with whom it has signed Sales and Purchase Agreements (SPAs).

Last year, NLNG said it supplied 493,000 metric tons of LPG to the domestic market. In the preceding years, NLNG delivered 498,000 metric tons in 2022 and 399,000 in 2021.

Currently, NLNG caters for 30% of the total LPG demand in the country which is currently estimated to be about 1.5 million metric tons.

The company maintains a firm commitment to supplying LPG to the domestic market.

The company remains focused on promoting increased gas utilisation within the country and raising awareness about the use of clean gas for cooking to mitigate health risks associated with firewood usage.

Pursuant to its role in the LPG sector, facilitating the entry of more stakeholders into the LPG value chain and encouraging investments in infrastructure development to bolster sectoral growth.

This has contributed to the creation of additional employment and business opportunities in Nigeria.

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The company’s CSR initiatives chiefly involve sponsorship in sports, beautification of roads, giving donations and project implementations. Some of these projects include provision of borehole water, youth empowerment, schools and healthcare centres for the communities.

NLNG has three main levels of scholarship schemes: Post Primary, Under-Graduate and Post Graduate to encourage academic excellence and support human capital development in Nigeria,through which it added value in the last 35 years.

The University Support Programme, launched in 2014, is part of NLNG’s commitment to develop education and complement government and stakeholders’ efforts.

It spent about USD12 million (amounting to USD2 million per university) to build modern engineering laboratories and/or furnish them with cutting edge engineering equipment to aid teaching and research in six universities across Nigeria’s six geopolitical zones.

The company awarded full scholarships to 10 Nigerian youths for their postgraduate studies abroad.

The beneficiaries were awarded the 2022 scholarship to further their education at two prestigious universities in the United Kingdom, the University of Aberdeen and Cranfield University, Scotland.​

The awardees, seven males and three females, will specialise in mechanical engineering, sustainability transition, oil and gas law, environmental energy, data science, renewable energy, global health and management, and international business management.

Nigeria LNG Limited sponsors three of the biggest and most prestigious prizes in Africa for science, literature, and literary criticism: The Nigeria Prize for Science and The Nigeria Prize for Literature, each worth USD100,000 in award money, and The Nigeria Prize for Literary Criticism with a N1 million cash reward.

The Nigeria Prize for Literature and The Nigeria Prize for Literary Criticism are aimed at bringing Nigerian authors and literary critics to public attention and celebrating literary craftsmanship in the nation.

In the last 20 years, the company has boosted the literary terrain with quality participation of the writers and value addition to Literature in the country.

The Bonny Community Health Insurance Programme is a community-based health insurance initiative that is geared towards providing access to affordable, sustainable, and quality healthcare services without beneficiaries making out of pocket expenses when accessing medical care.

NLNG launched Youth Empowerment Scheme (YES) in 2004 as a sustainable development initiative aimed at youths (18-35 years old) within NLNG’s host communities.

YES is designed to make the participating youths economically and socially responsible and self-reliant through guided technical and managerial development training, and today,the initiative has grown exponentially

NLNG has committed to providing 50% (N60 billion), with the balance contributed by the Federal Government. Tagged the biggest CSR initiative by a private company in Nigeria, the 34 kilometre road passing through Bodo, Afa, Opobo and Nanabie to Bonny is expected to contribute significantly to the long-term goals of the Federal Government with respect to the development of the Niger Delta region.T

Nigeria LNG Limited has further built ultramodern health centres, provided hospital equipment, and, in some cases, also installed electricity transformers. It has built several kilometres of roads and many schools in several communities in Rivers State and promoted social interaction among communities. These are in addition to renovation of schools and town halls and sinking of water boreholes.

Since its inception in 1989,the company also won awards and commendations within and outside Nigeria,in recognition of its quality service in the industry.

For instance,the Nigeria Employers’ Consultative Association (NECA),conferred Nigeria LNG Limited (NLNG) the Investment in Societal Renewal and Corporate Social Responsibility (CSR) Award, recognising the Company’s unparalleled commitment to CSR initiatives in Nigeria.

The company also won the “Local Content Company of the Year 2022” award at the ongoing 2023 Nigeria International Energy Summit (NIES) in Abuja.

It further bagged the “Gas Infrastructure Project of the year 2022” award for its Train 7 Project.

The company was recognised by the Federal Inland Revenue Service (FIRS) as its most Supportive Tax Payer.

It won the ‘Most Outstanding Contributor’ award in the natural gas industry at the 2020 World LNG Virtual Summit and Award.

The recent commendation of the gas company by President Tinubu,for its steadfast commitment to excellence and immense contributions to the GDP, acknowledging the critical role the Company plays in Nigeria’s economy gave credence to NLNG as the growth engine of the country in the last 35years.

In recognition of the company’s preeminent role,the President mince no words in assuring the NLNG Board that all encumbrances to the progress and development of Nigeria’s industrial citizens as well as any further impediment to the business practice in the oil and gas sector would be swiftly removed.

The drivers of the company’s commercial focus are desirous of continually repositioning it for competitive edge and to ensure optimal incremental value and business growth”, leveraging a range of strategic portfolio management and optimisation mechanisms including cargo diversions, swaps, SPA reviews for value, etc inspite of the helping hands it has given to Nigeria since its birth.

Chairman, NLNG Board, HRM King Edmund Daukoru, CON, who acknowledged the crucial role NLNG has played in Nigeria’s economy, maintained that NLNG will continue to consolidate its position as not only one of the major and reliable suppliers of LNG in the world, but equally a flexible and value-driven LNG supplier.

The company ambitious project, Train 7,also excited Daukoru,who indeed believes,will deepened NLNG’s global recognition when completed.

He said:”Following the Final Investme​nt Decision and the award and signing of Engineering, Procurement and Construction (EPC) contracts for Train 7, the next few years will be very challenging for NLNG as it works to safely deliver a new world class expansion within the context of a rapidly changing global energy landscape’

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At 35,the NLNG says it is waxing stronger,better and will continue to help build​ a better Nigeria by supplying products to the country, including exploring domestic LNG supply opportunities as a potential way of helping to bridge the energy gap, specifically supporting the power sector.

Mohammed Shosanya

The NNPC Energy Services Limited (EnServ) and Schlumberger (SLB), a renowned global technology company, have signed a technical partnership agreement towards bolstering upstream operations.

The agreement was signed at the NNPC Ltd’s Corporate Headquarters in Abuja on Thursday, with senior management teams from both companies in attendance, Olufemi Soneye
Chief Corporate Communications Officer,NNPC Ltd, said in a statement on Thursday.

Speaking after the signing, Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari described the ongoing reforms within the industry as a trigger for potential release of investments in the short term,the statement quoted.

“Quite a number of reforms are unfolding, and at the back of it is a potential release of investment that we are seeing in a very short term. Our physical environment is excellent today; contracting processes have been reviewed by virtue of the clear reforms Mr. President has put in place; and ultimately, we are already seeing substantial energy going into unlocking opportunities of today,” Kyari stated.

Highlighting the numerous benefits of the partnership, Kyari said it would lead to increased activity and more drilling campaigns that will add value to the two organisations.

He revealed that NNPC was working on a rig share platform with a definite plan around well drilling activities and associated operations in the coming years, which, he further explained, would increase crude oil production and support the ongoing plan to deepen gas utilization within the country.

Kyari,who expressed confidence in the long-standing relationship between NNPC Ltd and Schlumberger (SLB), said the NNPC would leverage on the assets within its control to accelerate the values that will come from this partnership.

“We are counting on Schlumberger (SLB) as our partners of 70 years. We are in business; we see the opportunities and strategic need to work with you and ultimately, we will create value for our country, “ the GCEO noted.

Earlier in his remarks, the Chief Executive Officer of Schlumberger (SLB), Mr. Olivier Le Peuch said the agreement was poised to accelerate the achievement of Nigeria’s exploration and production targets, which will foster Nigeria’s economic growth and prosperity.

“We are here to celebrate the strategic partnership that we signed with EnServ as a technical partner. This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd to achieve its exploration and production targets. We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs,” Le Peuch added.

He noted that as a company that has been on the shores of Nigeria for 70 years, Schlumberger (SLB) remains committed to investing in local talents and building capacity through technology and performance.

“We are pleased to be at the center of this transition and are in a position where we can bring our technical capability, technology, and capacity to the country so as to support the operations of NNPC Ltd,” he added.

Mohammed Shosanya

Senator Heineken Lokpobiri, the Minister of State Petroleum,says some international oil companies are coming back to Nigeria with massive investments prospects.

He attributed the development to the federal government’s action in rekindling the confidence of the oil investors in the country.

He spoke on Thursday at the Ministerial Sectoral briefings to mark the first anniversary of the President Ahmed Bola Tinubu’s Administration,where he also noted that International Oil Companies IOCs left the country because of lack stability due to absence of legal framework.

He added:”The biggest challenge we have is that we have thousands of idle oil wells that is not exploited. I will give an example, there is one oil block between Rivers and Akwa Ibom, that oil block has 117 oil wells but only 10 are producing the rest are just shot. Why?, no explanation, they are in the hands of somebody who do not have the capacity to put them to use. The PIA gives us the authority to say if you are given license and your are not using it to produce we revoke it and give to somebody who have. Unless you bring out the crude oil deposit in the soil they have no economic gains”

He also disclosed that with prevailing stability brought into the sector by the present government, Nigeria has made huge progress in raising daily crude oil production from 1.5 million barrels per day to 1.7 million barrels per day, adding that the country’s target is hit 2.5 million barrels per day by the end of 2024.

He added:”When we took office, production was at approximately 1.1 million barrels per day, including condensates. Today, I am proud to report that we have increased our production to approximately 1.7 million barrels per day (inclusive of condensate). This increase is a testament to our relentless efforts to streamline operations and resolve conflicts among stakeholders.

“Steps taken to Increase Crude Oil Production include: Efforts towards revamping redundant oil assets to active status Continuous engagement with IOCs and Independent Petroleum Producers Group (IPPG) members in resolving industry disputes towards increasing production.

“The federal government has succeeded in rekindling the confidence of the International Oil Companies such as the Shell, ENI, Slumberger among others.

“There is a company that will announce $10 billion investment in the next two weeks.This were company that left Nigeria because of unfavourable government policies, but following this government’s policies that is competitive globally they are coming back to Nigeria.

“There is also another company that is coming with the investment of $5 billion dollars, I don’t want to preempt the announcement, let them announce it then Nigerians will know that Angola cannot be compared to Nigeria.
In Africa, Nigeria is the main oil and gas producer and will continue to dominate that position.

“Our target this 2024, having worked very hard to create the enabling environment is to ensure that we have minimum of $20 billion investment.

“Nigeria has the lowest investment in the oil and gas sector. The reason why we are not seeing the benefits is because in the last 12 years Nigeria’s capital investment in the industry is the lowest in the world. We have only 5%. Angola has 46%, Mozambique 97%, Korea has 670%, the question you would ask is why did the companies in Nigeria failed to invest. The PIA took longer than normal to come and nobody wants to invest billions of dollars in any clime that is where there is uncertainty.

“But we told them that the PIA is now passed and we have a stable governance structure.Our production target is that by the end of the year through our sustained campaign we would increase crude production to at least 2 million to 2. 5 million barrels per day” Lokpobiri said.

He said,reliable projections show that oil price would be stable from now till five years, hovering between $80 to $90 which is good for the country.

In his opening remarks at the event, Mohammed Idris, the Minister of Information and National Orientation, said that President Bola Tinubu is laying solid foundations to bring down cost of living and make life better for Nigerians.

“Landmark initiatives like the Consumer Credit Corporation, the Nigeria Education Loan Fund, Presidential Initiative on Compressed Natural Gas, the 200 Billion Naira Presidential Grant and Loan Scheme, our Agriculture and Food Security efforts (including the launch of Dry Season Farming, and massive fertilizer distribution), the Renewed Hope Infrastructure Development Fund(RHIDF), Renewed Hope Cities and Estates programme, our reform efforts in the Electricity Sector, and in the area of Taxes and Fiscal Policy, and the negotiations for a befitting new National Minimum Wage – are some of the many policies and programs that will directly touch and improve the lives and livelihoods of tens of millions of Nigerians,” he said.

The Minister at the programme, launched a portal which serves as a centralized source for both local and international audiences, providing reliable and up-to-date information on various aspects of the nation, including the government, the people of Nigeria, their cultural heritage and many more.

“We use this opportunity to launch the Nigerian National Information Portal. Of course, it was in existence before but it has been so badly managed that the Federal Ministry of Information and National Orientation has resuscitated this new portal.

“It is a gateway to all the information you require to know about this government; about Nigeria, people, and our cultures. So, join me in clapping for Nigeria for having this relaunched new National Information Portal,” he said.

The link to the portal is www.nigeria.gov.ng.

In his briefing, Barrister Nyesom Wike, the Minister of the Federal Capital Territory FCT, delayed that President Bola Tinubu has through his ministry restored hope in many ways through concrete reforms and intervention in projects deliverables.

According to him,the civil servants in the FCT could now expire to reach the permanent Secretary cadre or Head of Service due to the reforms brought about by the foresight of the President Tinubu.

He said,in the eight months there would be 3 bus and taxi terminals to enable Commuters free and safe movements, also reduce incidences of one-chance crimes in the FCT.

He said the Abuja Metro rail line has now been completed and that come Monday 27th May 2024, President Tinubu will ride on the Metro line, and then Nigerians would commence usage of the facility by next day.

“Nigerians would be allowed to ride the train free of charge for two months.

“Most of the roads have been rehabilitated and completed. National Assembly rehabilitated, Federal Secretariat, Vice President’s residence awarded over 14 years ago, has been completed. Schools within the metropolis have been given facelift” he said.

The FCT Minister also disclosed that arrangements are underway to deliver 10, 000 houses renewed hope city for poor residents of the city.