Mohammed Shosanya

The Petroleum and Natural Gas Senior Staff Association of Nigeria,PENGASSAN says the proposed tax reform bills will stifle explorative activities in the country’s oil and gas sector.

It also said that Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA) would be negatively impacted if the bill sails through.

President of PENGASSAN,Festus Osifo spoke while addressing members of the National Executive Council (NEC) on Tuesday in Abuja.

He said:”The Association notes the ongoing tax reforms and wish to demand that the tax relief exemptions that is given to those earning minimum wage and business should be expanded to accommodate more people and companies in that category.

“Clarity must be provided regarding revenue collection processes from oil and gas companies as some provisions in the bill have the likelihood of negatively impacting our members in some of our major branches like Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA).

“We shall be participating actively in the public hearing where our position will be well articulated. We hereby call on the National Assembly to conduct a proper public hearing session where different views will be collated to amend the provisions in the bill and not just to tick the box”.

Meanwhile,Osifo confirmed the functionality of the Port Harcourt Refinery, insisting that PENGASSAN members were part of the team that ensured it came on stream this time around.

His reaction follows insinuations that the refinery had gone comatose again,  a few days after its much-celebrated commencement of production.

Osifo,who doubles as President of the Trade Union Congress(TUC) revealed that the management of Nigeria National Petroleum Corporation Limited (NNPCL) pulled the feat because there was a dedicated Escrol account for the revival of the refinery, as against the previous system where funds were domiciled in the Central Bank of Nigeria (CBN).

He,however,gave a few limitations in the production processes which he said may have forced the refinery to slow down operations.

According to him,the blending process was normal globally, as no refinery can produce with a single Crude Distillation Unit (CDU), noting that the coming on stream of Warri and Kaduna refineries would bring the much needed relief to the country.

He said Nigerians,including the media had every reason to doubt and question the government,considering what they had suffered at the hands of past governments.

He added:”Nigerians, we have every reason to doubt the government. We have every reason to question assertions from governments because over the years, they have actually let us down.

Explaining the production processes in the refinery, he said, “Really, from our checks, the Port Harcourt refinery is actually working.

“But let me explain this. In petroleum product production, you take the crude and you pass the crude into what they call the CDU (Crude Distillation Unit).So, it is actually that unit that is going to bring different products. That unit today, as we speak, is working.

“When you pass the crude into CDU, it is going to give you what we call Kerosene (DPK), it is going to give you what we call ATK (Aviation fuel), and it’s going to give you DPO (Diesel).

“It’s also going to give you naphtha. That is that distillation unit. That unit is working.What that means is that when you pass crude into that unit, you will have these products, but the old Port Harcourt refinery was not designed to produce aviation fuel.

“So, you are going to have these three principal products: the Naphtha, the AGO, as well as the DPK. So normally, that Naphtha, you are going to pass it to this unit called the Reformat Unit.As we speak today, that reformat unit is not actually working. We must disclose this to Nigerians.

“What is now happening at the moment is that you are going to take that Naphtha and merge it with Crack-C5. It will now be blended with Naphtha, and some other processes take place, and now it gives us PMS.

“What Nigerians should be interested in today is that: is the Port Harcourt refinery producing AGO? The answer is yes. Is the old Port Harcourt refinery producing kerosene? The answer is yes. Is it producing PMS today? The answer is yes.

“We should reduce the concentration on what the processes are but look at the products that come out.”

He added: “There is no refinery in the world that has a CDU that produces PMS in a single tranche. No one produces PMS, even Dangote Refinery.

“Their CDU doesn’t just produce PMS. But there is a product that comes out that is close to PMS. The requirement and the specification – what we call the Octane number in PMS – is very high.

“You have to produce it to spec or it damages vehicles. That Naphtha is further treated, and treating that Naphtha using the Crack-C4 from Indorama is what they now call blending.

“But in all honesty, the refinery is working, and these products are all there and coming out.We must congratulate NNPCL for the rehabilitation and successful startup of the old Port Harcourt refinery.

“Over the years, PENGASSAN has been at the forefront for demanding that these refineries must be rehabilitated and brought back to operations. This we will not stop until the remaining three refineries are successfully rehabilitated and resume operations. Afterwards, we will mount a vanguard for the refineries to be privatized using the NLNG model that has worked efficiently over the year”.

         Mohammed Shosanya

The Ogoni people have adopted a new orientation geared towards peace and development within the locality,charting a path to a permanent resolution of over three decades of conflicts with the government and Shell over oil production and underdevelopment.

The development follows resolutions taken at an Ogoni congress held Saturday, November 30, 2024 under the aegis of the Movement for the Survival of the Ogoni People (MOSOP). From speeches to interactive sessions, attendees resolved to move forward on the path of development and led a commitment to support the leadership of MOSOP to achieve these goals.

Addressing the Congress,President of MOSOP, Fegalo Nsuke said it’s time to permanently solve the Ogoni problem,noting that the Ogoni people must stand up to defeat both internal and external repression.

He regretted Ogoni’s inability to address its critical challenges of underdevelopment since the struggle was launched 34 years ago.

He added: “We launched the struggle in 1990. We are thirty four years into it and the problem was that we were protesting underdevelopment. For thirty four years, we have been unable to address this problem.”

He expressed dismay over the growing number of splinter groups in Ogoni, attributing it to the commercialization of the struggle which he says had been “very costly in lives and assets invested and lost in the process.”

“The reason you see all these splinter groups is that we have left the primary goal of the struggle and have started chasing money and our pockets” he said.

He urged the Ogoni people to be ready and committed to resolve the problem permanently noting that Tinubu,being a listening president, provides a rare opportunity to permanently resolve the Ogoni problems.

“While I am not speaking for the government, I want you to know that the current president is a listening president and offers an opportunity to resolve the problem.Let us take advantage”,he said.

Also speaking,former deputy president of the Movement for the Survival of the Ogoni People, MOSOP, Chief Dr Fortune Okwa Chujor urged the Ogoni people to support the development initiatives of Nsuke describing him as a non-commercial and non-political president of MOSOP.

A former president of the National Youth Council of Ogoni People (NYCOP) and an elder of MOSOP, Chief Emmanuel Nkala said he stands with the MOSOP President, Fegalo Nsuke and called on Ogoni youths to do the same. Chief Nkala canvassed for unity amongst Ogonis urging the people to give the MSP development initiative a chance.

Ogoni youth president,Theophilus Mbagha Esq, in his contributions urged the Nigeria authorities to dialogue with the Ogoni people to resolve the Ogoni problem. He also backed the Nsuke-led initiative as acceptable to Ogoni youths.

Spokesperson for the Federation of Ogoni Women’s Association (FOWA) Lady Immaculate Kpopie assured the Congress of the support of the Ogoni women for the development drive led by Nsuke. Congress then resolved and mandated the MOSOP President Fegalo Nsuke to initiate and conclude discussions on the issue and to win a fair share of Ogoni Ogoni resources which will be committed to Ogoni development.

       Mohammed Shosanya

The Petroleum Technology Association of Nigeria (PETAN),has advocated the need for the privatization of Nigeria’s oil and gas pipelines, to ensure efficiency and sustainability of the nation’s critical oil and gas industry.

Its chairman,Engineer Wole Ogunsanya, made the charge at the Nigeria International Pipeline and Security Conference (NIPITECS) which took place at the Abuja Continental Hotel.

He explained that the commonwealth solution of privatizing Nigeria’s pipeline network stems from the opportunity the country has for the private investor to hold 51% ownership in the nation’s pipelines with the oil producers, including the NNPC Ltd. and IPPG that own the crude oil as shareholders.

This model is not new in Nigeria,it’s the working model that has kept the NLNG to remain a pride of the industry even when there  more room for improvement establishing more LNGs’ and increase of gas feedstock,he said.

He said,all over the world,life expectancy of populations is highly impacted by energy security, which ensures the availability of and access to healthcare, availability of infrastructure that enhance living standards, affordable food, better housing and education.

” With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it means that Nigerians lack energy security. It also means that majority of Nigerians lack all these basic necessities”.

” For Nigeria, the catalyst to our economic growth is oil and gas, and capacity must be built across the value chain – from finding the resources to production to refining to transporting and to the downstream. Doing this with in-country capacity will guarantee Nigeria as one of the top 20 economies in the world”, he declared.

He expressed regret that Nigeria failed to use the proceeds of its crude oil sales over the decades to build the country.

He,however,commended indigenous companies making up professional associations like PETAN and PLAN for helping to build capacities and creating jobs in a local content drive that has multiplier effects and yielding results along the value chain of the industry and the regional economy.

PLAN, representing the “lynch pin” of the oil and gas industry without which the resources wouldn’t be effectively transported to where they are needed, be it refineries or gas plants and further to power plants, cannot be overlooked in the development of oil and gas and there is a lot to do in partnership with them to ensure energy security for all. Luckily,  the collaboration with PETAN has always been on a sound footing as most members belong to both associations”, he added.

Speaking on a panel discussion on the topic ‘Pipeline System for Nigeria’s Decade of Gas: Challenges and Opportunities’, Engr. Ogunsanya posited that the country should use all forms of energy sources at its disposal to  close the energy gap, adding that it is impressive to note an increase in the use of solar energy across the country, but charged stakeholders to invest in the solar technology rather than importing.

He,however,pointed out that the demand for oil and gas would continue to increase, even if not at the rate we had it in the past, but it remains relevant to the development of developing countries.

He congratulated the Chairman of the Board of Trustee of PLAN, Engr. Geoff Onuoha, who, along with many other members of the Association also belong to PETAN, and pledged PETAN’s continued support for its advocacy activities which aim at creating awareness about the importance of pipelines in the nation’s critical oil and gas industry.

Mohammed Shosanya

The Nigerian National Petroleum Company Limited’s new Executive Vice President,Upstream,Mr. Udobong Ntia, has implored upstream stakeholders in the nation’s oil and gas industry to strengthen corporate governance, transparency and efficiency in their operations.

He spoke during an Upstream Governance, Risk and Compliance Workshop themed “Enhancing Governance, Risk and Compliance in Nigeria’s Upstream Sector” held in Lagos, on Tuesday, a statement said.

In his opening remarks at the workshop, Ntia emphasized that governance, risk management, and compliance are at the foundation of NNPC Ltd’s core values of integrity,excellence,and sustainability.

Olufemi O Soneye,Chief Corporate Communications Officer, NNPC Limited, quoted him to have commended the upstream leadership and regulators for supporting the initiative to assemble stakeholders to discuss issues that have a bearing on individual and collective success towards attaining the clear mandate of sustainably ramping up the nation’s crude oil production.

He also reiterated his readiness to provide enablers within his purview that will accelerate the implementation of initiatives that will enhance governance, risk management and compliance in the upstream sub-sector.

The workshop had in attendance NNPC Ltd’s Chief Compliance Officer, Mr. Nasir Usman; NNPC Ltd’s Chief Upstream Investment Officer, Mr. Bala Wunti; representatives of industry regulators such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC); the Nigerian Content Development and Monitoring Board (NCDMB) and over 20 upstream operators from International Oil Companies in Nigeria.

Mohammed Shosanya

Eni’s subsidiary,Nigerian Agip Exploration Limited (NAE) and STAC Marine,have marked one year of successful collaboration for the operation and maintenance of the Floating, Production, Storage and Offloading (FPSO) facilities located in the offshore deepwater of ABO field.

Last year,after several years of operation and maintenance by an international contractor, STAC took over responsibility for the FPSO. As of November 2024,

STAC has successfully completed one year of safe, efficient, and smooth operations as of November this year.

To further strengthen this achievement, along with the companies’ commitment to Health, Safety and Environment (HSE), NAE and STAC also signed the “Pact for Safety and Environment”,a statement said on This year.

The statement explained that the  agreement, developed by Eni’s Safety Competency Centre, focuses on the critical role of the human factor in ensuring a safe and reliable workplace.

The Pact, signed by the top management of both NAE and STAC, is a critical step towards achieving Eni’s zero incident safety target by enhancing safety performance across all operations,it added.

Eni has been operating in Nigeria since 1962, actively engaging in hydrocarbon exploration and production. Currently, Eni has a substantial portfolio of assets in exploration and production through the branches Nigerian Agip Exploration Limited (NAE) and Agip Energy Natural Resources Nigeria (AENR).

The company also holds a participation interest in Nigeria Liquified Natural Gas Limited (NLNG).

Mohammed Shosanya

The Major Energy Marketers Association of Nigeria (MEMAN),says its members sourced 251,797,142 litres of petrol from the Dangote Refinery,between September 16 and November 24, 2024.

Its Chief Executive Officer,Clement Isong,who disclosed this at a quarterly webinar organised by the association for journalists,said the total volumes of petrol sourced so far includes 148,463,142 litres loaded by trucks at the gantry and 103,334,000 litres delivered to the Apapa depots through vessels.

He said the association’s members are still loading fuel at the Dangote refinery.

He was represented by Ogechi Nkwoji, Head of Economic Intelligence Research Regulation,who explained that while MEMAN members have licenses to import petrol introduced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), but have in recent time relied on local supply from Dangote Refinery due to the competitive market framework already in place.

She noted that products lifted from Dangote Refinery were transported through trucks and vessels to marketers’ facilities in Lagos, highlighting the operational flexibility within the supply chain.

She examined the key factors affecting the cost of delivering petroleum products across Nigeria, providing an in-depth analysis of the elements shaping pricing.

She also highlighted MEMAN’s efforts to foster market stability and boost consumer confidence.

Speaking, James Gooder,Vice President of Crude Oil at Argus Media, highlighted the critical role of logistics and pricing factors in determining the final cost of Premium Motor Spirit (PMS).

His presentation,titled ‘Market Trends, Transparency, and Fair Pricing’, focused on the various factors impacting petroleum prices in the Nigerian market.

He emphasised the importance of jetty infrastructure,vessel capacity and exchange rate stability in shaping the pricing landscape of petroleum products in Nigeria.

He pointed out that one of the main challenges was the limited capacity of the country’s jetties to accommodate larger vessels.

He added:“The larger your draft, the larger the vessel you can bring in.This allows for economies of scale, which ultimately lead to lower costs per unit of product delivered.”

He noted that many jetties, particularly in Warri and Calabar,are restricted to draft sizes of around five meters, which limits the size of vessels that can dock there.

He said that this constraint leads to higher logistics costs, which in turn impacts the price of petrol at the pump.

Gooder stressed that addressing these infrastructure limitations is crucial to reducing costs,adding that:“Investing in the deepening of these drafts and improving the channels will boost business in these areas and accommodate larger vessels”

Acknowledging that major marketers have attempted to mitigate logistics challenges by sharing vessels, Gooder emphasised that this is only a partial solution.

Besides, Gooder discussed the key factors affecting the landed cost of PMS, primarily the exchange rate and the cost of imported products.

He explained that the landinh cost is calculated daily, based on the spot price of products and the prevailing exchange rate.

Gooder observed that from October to November, the exchange rate between the Naira and the dollar had remained stable.

He said that coupled with a global decline in crude oil and gasoline prices, this stability had contributed to a reduction in the landed cost of petrol.

“When the exchange rate is stable and the cost of the product decreases, both the landed cost and the pump price follow suit,” Gooder added.

He cautioned against viewing  price reductions as act of generosity by marketers.

The expert said, “It’s not about magnanimity. Prices drop because the key variables in the cost calculation are favourable.

“In addition to the exchange rate and product costs, other charges also influence the final price of PMS, including vessel charges, Nigerian Ports Authority (NPA) fees, and expenses related to the Nigerian Maritime Administration and Safety Agency (NIMASA).”

Gooder noted that vessel charges alone had decreased from 60,000 dollars to 50,000 dollars,which is a significant reduction.

        Mohammed Shosanya

President Bola Tinubu has mandated the Nigeria National Petroleum Company Limited (NNPCL) to take immediate steps to reactivate the Warri and Kaduna refineries.

He gave the directive,following the successful revitalization of the Port Harcourt refinery, marked by the official commencement of petroleum product loading on November 26, 2024.

In a statement by his media aide,Bayo Onanuga on Tuesday,Tinubu said he acknowledges the pivotal role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of all our refineries and expressed gratitude to the African Export-Import Bank for its confidence in financing this critical project.

Tinubu,however,extended commendations to the leadership of NNPC Limited’s Group Chief Executive Officer, Mr. Mele Kyari, insisting that his unwavering dedication and commitment were instrumental in overcoming challenges to achieve this milestone.

He urged the NNPCL to expedite the scheduled  reactivation of both the second Port Harcourt refinery and the Warri and Kaduna refineries.

He said he believes these efforts will  significantly enhance domestic production capacity alongside the contributions of privately-owned refineries and make our country a major energy hub.

“With the gas sector also enjoying unprecedented attention by the administration, this administration is determined to repair the nation’s refineries, aiming to eradicate the disheartening perception of Nigeria as a major crude oil producer that lacks the ability to refine its own resources for domestic consumption,” the statement noted.

Highlighting the values of patience, integrity, and accountability in the rebuilding of the nation’s infrastructure, the President called upon individuals, institutions, and citizens entrusted with responsibilities to maintain focus and uphold trust in their service to the nation.

        Mohammed Shosanya

The Nigerian National Petroleum Company Limited (NNPC Ltd)says  there is no discrepancy between its crude oil production figures and those supplied by the regulatory agency, the Nigerian Upstream Petroleum Regulatory Company (NUPRC).

The clarification was sequel to reports  that the 1.54 million barrels per day (mbpd) for September cited by the NUPRC was far below the 1.8mbpd for November cited by the NNPC Limited.

The seeming disparity is as a result of the difference in the period of coverage in the reports – whereas the NNPC Ltd’s figure was the peak production for October 2024, the NUPRC’s figure was the average production for September 2024,Olufemi O Soneye,  Chief Corporate Communications Officer NNPC Ltd.,said in a statement.

This was confirmed by the Chief Executive Officer of NUPRC, Mr. Gbenga Komolafe, at the recent 42nd Nigerian Association of Petroleum Explorationists Annual International Conference & Exhibition in Lagos where he disclosed that Nigeria’s crude oil output, including condensate, increased by 16.56 per cent to 1.8mbpd million in October 2024, from 1.54 million bpd in September 2024.

The CEO of NUPRC,who was represented by the Executive Commissioner,Development & Production, Mr. Enorense Amadasu, was quoted as saying:”This represents an increase of 253,710, bpd to reach 1.8 million bpd in October, up from 1.54 million bpd in September 2024, representing 16.56 per cent month on-month rise”. 

The NUPRC also confirmed at the NAPE event that the 1.8mbpd feat pushed Nigeria’s production beyond the 1.5mbpd quota of the Organisation of Petroleum Exporting Countries (OPEC).

He maintained that there is no disparity or discrepancy in the production figures by NNPC Ltd and the regulator,adding that his company is working closely with relevant stakeholders to boost production to 2mbpd and above by the end of 2024.