TotalEnergies, Dangote Refinery Seal Supply Deal

Mohammed Shosanya

TotalEnergies,has signed its first supply deal with Dangote Refinery in Nigeria, Chief Executive Patrick Pouyanne said on Friday.

The action took place during a meeting with Aliko Dangote, but without details of what the agreement entails.

“We met this morning, we made the first deal between both of us,” Pouyanne told a panel at the Africa CEO Forum in Kigali, Rwanda. “The two CEOs met with our head of trading and we found the way to convince them to make a deal,” he added.

Dangote has been trying to secure crude supplies for his 650,000 barrels per day (bpd) refinery, the largest in Africa and Europe when it reaches full capacity.
In May, the company put out a tender for two million barrels of West Texas Intermediate (WTI) Midland crude every month for a year starting in July, a tender document seen by Reuters showed.

The oil refinery, which started production in January, cost $20 billion to build. Dangote aims to reverse Nigeria’s reliance on imports for fuel and other refined products even though the country is Africa’s biggest oil producer.

Dangote said the refinery had enough gasoline, diesel and aviation fuel to supply the African continent and export to Brazil.

“We started producing jet fuel, we are producing diesel, by next month, we’ll be producing gasoline. What that will do, it will be able to take most African crudes,” Dangote told the panel.

“Our capacity is too big for Nigeria. It will be able to supply West Africa, Central Africa and also Southern Africa,” he added.

Burnt Tank Farm Not Ours, Says NNPC Ltd

Mohammed Shosanya

The Nigerian National Petroleum Company Limited (NNPC Ltd),has clarified that the fire incident at a tank farm in Marine Beach, Apapa, Lagos, was at a depot belonging to HOGL Energy Ltd (Honeywell Depot), and not an NNPC Retail Ltd.’s facility .

Olufemi Soneye,Chief Corporate Communications Officer,NNPC Ltd, cleared the air in a statement obtained by Premium News on Friday.

The fire,which has since been extinguished, was as a result of petroleum products spillage within the perimeter of the tank farm,the statement added.

Meanwhile, NNPC Ltd and other depots in the area have resumed loading activities.

The company assured that the incident will,in no way, affect petroleum products supply and distribution across the country.

FG Intensifies  Commitment To Use Gas For Economic Growth

…As Tinubu Commends NNPC Ltd, Partners Over Three Commissioned Gas Projects

Mohammed Shosanya

The Federal Government has reiterated its determination to utilize Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

President Bola Ahmed Tinubu disclosed this while commissioning three critical gas infrastructure projects executed by NNPC Limited and its partners in Ohaji-Egbema, in Imo State and Kwale, in Delta States, on Wednesday.

The three projects commissioned include the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.

“It is pleasing that approximately, 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25% incremental growth in gas supply. In practical terms, this translates into more gas to the power sector,gas-based industries, and other critical segments of the economy,” the President added.

The President said from the onset, his administration was clear of its intention to leverage on the virtually unlimited capacity of gas to deepen domestic gas utilization, increase national power generation capacity, revitalize industries, and create multiple job opportunities for economic growth.

He said aside the Presidential Compressed Natural Gas (CNG) Initiative which is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivizing gas development through Presidential Executive Orders.

Congratulating the projects partners (NNPC Limited, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy for the successful implementation of the three projects, Tinubu particularly charged the NNPC Limited to, as the national energy company of choice, sustain its relentless efforts and record more successes in the energy sector for the benefit of all Nigerians.

He described the commissioning as a highly significant milestone for Nigeria as it demonstrates his administration’s efforts to accelerate the development of critical gas infrastructure geared at enhancing the supply of energy to boost industrial growth and create employment opportunities.

He said the projects were fully in line with the Federal Government’s Decade of Gas initiative, and his administration’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialization.

“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas fueled prosperity in our country. Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business,” the President noted.

Earlier in his address, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo highlighted the efforts of his ministry to continue to champion the utilisation of gas as a transition fuel as Nigeria moves towards achieving clean energy efficiency and security by 2060.

Ekpo commended the President for his leadership and support towards the success of the three projects.

In his remarks, the GCEO NNPC, Mr. Mele Kyari described the commissioning as a demonstration of Mr. President’s commitment and support to grow the domestic utilization of natural gas for power generation, as feedstock for gas-based industries and overall rapid industrialization of Nigeria on the back of the enormous gas resources in the country.

Kyari assured that as part of its mandate, NNPC Ltd remains committed to maintaining energy security by executing more strategic gas projects for the benefit of Nigeria.

TotalEnergies Plans Fresh $400m Investment In LPG

Mohammed Shosanya

TotalEnergies has announced its ambition of giving 100 million people in Africa and India access to clean cooking by 2030.

Announcing this at the Clean Cooking Summit organized by the International Energy Agency (IEA), TotalEnergies also said it will invest more than $400 million in the development of liquefied petroleum gas (LPG) for cooking.

In order to make clean cooking affordable for as many people as possible, the Company will develop the use of digital pay-as-you-cook technologies that allow customers to pay only as they use the LPG cylinder, rather than having to pay the full value of the cylinder volume up front.

According to the IEA1, more than 2.3 billion people worldwide do not have access to clean cooking solutions and still cook their meals on traditional stoves using wood and charcoal. As the IEA points, access to cleaner cooking fuels.

“We praise this initiative by the IEA, which TotalEnergies embraces to promote access to reliable, affordable and sustainable cooking solutions for as many people as possible, in line with the Company’s purpose” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“By developing access to clean cooking in Africa and India, TotalEnergies aims to have a positive impact on the environment and on people’s health, while also helping to reduce gender inequalities in these regions. Clean cooking contributes to long-term social, economic and human development in a more sustainable way.”

The company is already a major player in the distribution of LPG in cylinders, with more than 50 million people in Africa and Asia benefiting already from a reliable and cleaner energy.

Shell Says Bonga Oil Field Boosted Nigeria’s Output In 2023

Mohammed Shosanya

Shell Nigeria Exploration and Production Company Ltd (SNEPCo) produced more oil at Bonga last year than the previous one, according to a review of its operations.

Nigeria’s first deep-water development produced some 138,000 barrels of oil per day (boepd) in 2023 compared to around 101,000 in 2022.

According to the review,among other factors, the improvement was driven by drilling of new wells, optimising reservoir and facility management and excellent asset management.

“Bonga continues to justify the investments and hard work that led to its discovery,” said SNEPCo Managing Director Elohor Aiboni.

“The uptick in production is the result of commitment by staff, continuous improvements in production processes and maintenance and the support of the Nigerian National Petroleum Company Ltd (NNPC) and our co-venture partners – TotalEnergies Nigeria Limited, Nigerian Agip Exploration and Esso Exploration and Production Nigeria Limited. Working together, we will continue to power lives and deliver value to all stakeholders.”

Bonga started production in November 2005 through the 225,000-barrels-per-day capacity Bonga FPSO, anchored 120 kilometres offshore. The FPSO exported the 1 billionth barrel of oil last year.

The operations have resulted in remittance of taxes and royalties to the government of Nigeria to finance development, development of indigenous contactors and service providers, and a wide-ranging social investment portfolio which has improved lives across the country.

NNPC E&P Ltd,NOSL Strike First Oil In OML 13

Mohammed Shosanya

NNPC Exploration and Production Limited (NNPC E&P Ltd), NNPC Ltd’s flagship upstream subsidiary, and Natural Oilfield Services Ltd (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO), have announced the commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom State, Nigeria.

The production,which commenced on the 6th of May 2024 with 6,000 barrels of oil is expected to be ramped up to 40,000 barrels per day by May 27th, 2024,Olufemi Soneye,Chief Corporate Communications Officer,NNPC Ltd,said in a statement on Sunday.

The first oil flow from OML 13 is a historic milestone in the partnership between NNPC E&P Ltd and NOSL, highlighting their dedication to driving growth and development in Nigeria’s oil and gas sector, which remains a vital component of the nation’s economy,the statement quoted.

It added:”The achievement does not only signify the culmination of rigorous planning and execution by the teams involved, but also represents a new era of economic empowerment and development opportunities for the host communities.

“Furthermore, for Nigeria, the first oil from OML 13 holds some significance as it contributes to the country’s efforts to increase its oil production capacity, which is crucial for meeting domestic energy needs and driving economic growth”.

The statement further quoted that the NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.

NCDMB Boss Pledges Support For Local Capacities

Mohammed Shosanya

The Nigerian Content Development and Monitoring Board (NCDMB) has reassured oil and gas stakeholders that service companies and other manufacturers that have established capacities in the country will continue to enjoy patronage through the award of contracts from operating companies in the sector.

The Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe made this commitment on Friday in Port Harcourt, Rivers State when he led officials of the Board and Shell Petroleum Development Company of Nigeria (SPDC) to visit companies that deliver pipe coating and related services, a statement said.

The team visited Brightwaters Energy Limited, formerly known as Willbros Nigeria Ltd, Solewant Nigeria Limited and Pipe Coaters Nigeria, managed by Tenaris Nigeria Ltd.

The Executive Secretary said the visits were to assess the companies’ facilities and determine how the Board can galvanize the industry to patronise them.

He emphasized the import of getting first-hand information on in-country capabilities before making key decisions on oil and gas projects. He insisted that operating companies must support and patronise local oil and gas service companies in compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

He added that activities in the Nigerian oil and gas industry must be used to create employment opportunities for the nation’s teeming youths and help to resuscitate the economy, in line with the aspirations of President Ahmed Bola Tinubu.

The Chief Executive Officer of Brightwaters Energy Limited, Mr. Scott Gregory thanked the Executive Secretary for leading the visit while highlighting that Brightwaters, formerly Willbros carried out Nigeria’s first pipe coating in 1962.

He recalled that the facility had 3,000 employees some years back, executing various spheres of oil and gas projects.

He conveyed the management’s aspiration to return the firm to those high-performance levels and sought the Board’s support to win oil and gas projects that would resuscitate the sprawling facility.

“We feel that we can be a positive contributor to Nigeria through the capacities that we have. We want to bring real, true value to the table,” he added. He admitted that the coating facility had suffered downtime, but assured that the plant would be up and running within 60 days of the award of a new contract.

The Chairman of Tenaris Nigeria, Dr. Ernest Nwapa welcomed the NCDMB’s team to PCNL’s facilities. He commended the efforts made by the agency to push local content in the industry, attributing it to the good culture that had been established at the Board over the years.

Nwapa, who was the pioneer Executive Secretary of NCDMB expressed delight that some of the oil and gas projects that had been pending for nearly ten years were now being developed and expressed hope that existing local capacities would be maximized in the execution of those projects.

The team was taken around the company’s facilities and shown the various equipment of PCNL in readiness for the award of new contracts. Nwapa pledged the commitment of the company to meet the expectations of clients as well as allow them to participate in the supervision of the work in their factory.

The PCNL facility covers an area of 160,000 m2 in the Onne Free Trade Zone. The company offers Anticorrosion, CWC, Thermal Insulation, Internal and Bends Coating plants as well as Double Jointing and Anode Installation Facilities.

At Solewant Group, an EPCI and Pipe Coating Company, the NCDMB delegation was shown round the company’s facilities as well as the new investments, such as the 5mega watts generators, procured to guarantee power supply to the facility.

Accompanying Engr. Ogbe on the facility visits were the Director Projects Certification and Authorization Division (PCAD), Engr. Abayomi Bamidele, General Manager PCAD, Engr. Maurice Iwhiwhu, Special Technical Assistant (STA) to the Executive Secretary, Engr. Mofe Megbele, Deputy Manager, Corporate Communications, Mr. Obinna Ezeobi, and other staff members of the Board.

11Plc To Expand Footprint In LPG,CNG Market

Mohammed Shosanya

11Plc (formerly Mobil Oil Nigeria Plc ) has restated its commitment to increase investment in a bid to expand its market share of the Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) segment.

Its Managing Director and Chief Executive Officer,Adetunji Oyebanji, who made this commitment at the Annual General Meeting (AGM) held at Abuja Comtinental Hotel ,FCT Abuja, said the company is taking steps to position itself in the gas sector.

“Our LPG is growing fast with the deployment of more skids in the company’s retail outlets as well as the collocation of CNG outlets in the stations,” he stated.

According to him, substantial financial commitment has been made in this respect, which in turn has resulted in significant improvements in all areas of the company’s operations.

He said seven years after the takeover of a 60% equity stake of ExxonMobil in former Mobil Oil of Nigeria by NIPCO Plc, the parent company had made significant investments in its facilities to increase productivity and meet market demands.

He added: “ We remain optimistic about a brighter future for the company and the resilience of the nation’s economy. We hope to build on the current momentum predicted on better management of the company as professed by the new leadership. Our integrated business model coupled with the sound financial measures being adopted across our business lines give us hope for brighter outlooks in the ongoing transformation of 11Plc.

“With our projections coming to fruition, we look forward to bigger and more powerful projects coming on stream which would undoubtedly boost the company’s bottom line. Nigeria’s hydrocarbon industry, especially in the downstream sector, will continue to benefit from our brand for value addition and sustenance of nobler legacies,” he stated.

Disclosing the financial results, he said the company recorded a turnover of N526.538 billion and a profit after tax of N26.568 billion in the financial year 2023, representing a 42% and 45% increase over 2022 reports.

Chairman of the company, Ramesh Kansagra who was represented by Non – Executive Director ,Alhaji Abdilkadir Aminu said the company made significant progress in the year by exploring the Compressed Natural Gas (CNG) market and constructing facilities in Ibadan and Lagos.

“Additionally, the company installed Liquefied Petroleum Gas (LPG) skids in 40 outlets nationwide to invest in the future of LPG. These investments have helped the company to improve its assets and resources to deliver on shareholder commitments.

“11 Plc remains committed to the highest standards of ethics, safety, health, and environmental practices while promoting best practices in Nigeria’s downstream oil and gas sector. The company’s management framework is robust, and its business model is continually resilient to harness endless opportunities,” he stated.

Kasangra said the Board of Directors has recommended a robust dividend payout of N3,245,357,349 equivalent to 900kobo per ordinary share of 50 Kobo each, subject to shareholders approval and withholding tax deductions at the prevailing rate which was unanimously approved by shareholders .

“We are confident in our ability to continue delivering growth to our shareholders’ investments, and this dividend reaffirms our commitment to that promise,” he stated.

Kasangra further revealed that Mobil Producing Nigeria Unlimited, its primary tenant, is scheduled to vacate Mobil House in 2024, adding that the loss of their tenancy will significantly diminish its other sources of income.

“Nevertheless, our company is prepared to navigate the changes and is committed to sustainability and operational efficiency to overcome challenges and facilitate growth. We will also continue to monitor the market trends and modify pricing strategies to meet the needs of our shareholders and customers,” he stated.

Lagos Receives N4bn From Oil Derivation Payouts

Mohammed Shosanya

Lagos State Government has received the sum of N3.911 billion since it became an oil producing state.

The state joined the league of oil-producing states in the country in 2016,and disclosed that it received a total of N3.911 billion as its share of the 13 per cent derivation fund.

The state’s Commissioner for Energy and Mineral Resources, Mr Biodun Ogunleye,who explained this during a ministerial press briefing to mark the second term in office of the State Governor, Mr Babajide Sanwo-Olu at Alausa, Ikeja,also said that the production has been hampered due to challenges faced by the company managing its exploration

Yinka Folawiyo Petroleum Company Limited (YFP), a wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, commenced the production of crude oil from the field.

He said:“Between 2018-2019, the state government received from the federal Government N131 million as part of oil derivation. And, between 2020-2021, the Lagos state government received N3.78 billion.

“But the owners of the assets have been having issues among themselves. And as long as they could not produce, there would be no money for Lagos.

“The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production.”

Speaking on the community electrification programme,the commissioner said the governor has approved the procurement of twenty thousand units of prepaid energy metres for target low income communities in the state.

He added:‘’Approval was further expanded to utilize funding to catalyse full metering across the state via collaborations with electricity distribution companies in Lagos and a leading smart metering solution company,ElSewedy Electric.

The commissioner,who lamented the increasing death rate from gas explosions in the state,hinted that the state government will soon introduce stringent measures to regulate the operation of Liquefied Natural Gas vendors in the state.

SNEPCo Boss Explains Bonga Success Story

Mohammed Shosanya

Bonga,Nigeria’s first deep-water development has been an outstanding producer due to effective leadership, cutting-edge technology, continuous improvement, integrated delivery and collaboration with partners and stakeholders, Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni,has said.

Alboni,who said this on Thursday at the 2024 Offshore Technology Conference in Houston, Texas in US,since its inception in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.

She reflected on the success factors that enabled the milestone in a presentation titled “The Bonga Journey to a Billion Barrels.”

“SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones,” she said.

She stated: “Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.

“These factors, Aiboni added, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case.”

SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations.

Aiboni spoke on the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.

She added:” “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.”

The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria. Today, some 97% of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.

Aiboni added: “Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy.”