Mohammed Shosanya

 

 

Group Chief Executive Officer of Nigeria National Petroleum Company Limited,Mele Kyari has debunked  claims that his company is sabotaging the efforts of domestic refineries in the country.

 

 

 

 

He spoke at the opening ceremony of the 42nd Nigeria Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition themed: “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth and Affordability” in Lagos, on Monday.

 

 

 

 

A statement signed by Olufemi O Soneye,Chief Corporate Communications Officer,NNPC Ltd,quoted Kyari as saying that the company is part-owners of the Dangote Refinery.

 

 

 

 

 

He added that such investment is a strategic move aimed at strengthening domestic fuel supply.

 

 

 

 

According to him, NNPC Ltd is set to collaborate with private refineries to ensure affordable and sustainable petroleum products supply; Naira-for-crude transactions in order to stabilize the local currency and regulate forex markets.

 

 

 

 

This, he added, will bring about expansion of gas infrastructure such as the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipelines projects and the development of cleaner energy options, such as Liquiefied Natural Gas (LNG) and Compressed Natural Gas (CNG).

 

 

 

 

“Currently, NNPC Ltd supplies over 1.6 billion standard cubic feet (bscf) of gas per day to the domestic market through infrastructure we either own outright or operate with partners. This distribution network is entirely managed on NNPC Ltd.’s balance sheet,” Kyari added.

 

 

 

 

He reiterated the company’s commitment to resolving Nigeria’s energy trilemma, by ensuring energy security, sustainable growth and energy affordability.

 

 

 

The GCEO, who was special guest of honour at the occasion, also said the company has concluded plans to deliver 12 Compressed Natural Gas (CNG) Mother Stations and Mini LNG Plants soon, as part of efforts to boost the existing 1.6bscf of gas supply for domestic market.

 

 

 

 

“The energy trilemma is a profound responsibility we shoulder as stewards of Nigeria’s energy future. NNPC Ltd is working tirelessly to improve our supply chain, develop new refining capacities and expand our retail network,” Kyari stated.

 

 

 

 

 

Explaining that the company is expanding its efforts to enhance domestic energy access, the NNPC Ltd helmsman said the next 3-6 months will see significant project launches, including CNG mother stations, mini-LNG plants, and additional CNG daughter stations.

 

 

 

Kyari, who commended President Tinubu’s efforts to relieve forex pressures by reducing fuel imports and strengthening Nigeria’s local refining capacity,  emphasized the need for collaboration, innovation, and technology in achieving Nigeria’s energy goals.

 

 

 

“Resolving the energy trilemma requires bold ideas, shared knowledge, and collective determination. Together, let us build a Nigeria where energy is secure, sustainable, and affordable for all.”

 

 

He spoke on NNPC Ltd’s mandate to guarantee energy security as stipulated by the Petroleum Industry Act,saying the company has fostered partnerships and investments aimed at enhancing local production and generating revenue for economic diversification.

 

 

 

 

 

 

      Mohammed Shosanya

 

 

Nigeria has attracted only 4% of African oil and gas investments since 2016, while investment has surged in other, less resource-rich nations,the Special Adviser to the President on Energy, Olu Verheijen has said.

 

 

 

 

She spoke to a diverse audience, at the African Energy Week in Cape Town, South Africa,a statement signed by her spokesperson, Abiodun Oladunjoye said.

 

 

 

 

She added:“Since 2016, Nigeria has managed to attract only 4 percent of total investments in oil and gas, while less resourced countries in Africa have enjoyed a bigger share. When we analyzed investment data, we also found that, between 2013, when Nigeria’s last deepwater project reached FID, and now, IOCs operating in Nigeria have committed more than $82 billion in deepwater investments in other countries that they have deemed to be more attractive destinations for their capital.”

 

 

 

 

 

Verheijen lamented that the country has  underperformed in oil and gas production despite Nigeria’s wealth in the oil and gas industry.

 

 

 

 

She spoke on how countries like Brazil that has only 30% of Nigeria’s oil reserves has outperformed by producing 131% more than current production of Nigeria.

 

 

 

She said:“Despite our abundant endowments, we have underperformed against our potential. For example, Brazil holds only 30% of Nigeria’s oil reserves but produces 131% more. This is largely due to under-investment”.

 

 

 

She underscored the untapped potential within the industry and highlighted many efforts by President Tinubu’s administration to enact reforms aimed at reshaping Nigeria’s investment landscape.

 

 

 

 

Among these initiatives, she said the government has introduced fiscal incentives targeting deep offshore and non-associated gas projects, marking the first time Nigeria has outlined a fiscal framework specifically for deepwater gas.

 

 

 

She said her office has collaborated closely with the office of the National Security Adviser to create and distribute focused security directives, leveraging insights garnered from on-ground operators.

 

 

 

Besides,Verheijen disclosed  steps to streamline approval processes by clearly defining the regulatory scopes involved.

 

 

 

This initiative, she explained, aims to significantly reduce the extended project timelines that have historically plagued the industry, as well as the high-cost premiums associated with operating in Nigeria.

 

 

 

She added: “Our target is to shorten the contracting timelines from an extensive 38 months to just 135 days, while also working to eliminate the 40% cost premium that currently exists within the Nigerian petroleum industry.”

 

 

 

She also disclosed efforts by the current President Tinubu administration to further open up the oil and gas sector for bigger investments with a set of clear fiscal incentives for non-associated gas and deep offshore oil and gas exploration and production.

 

 

 

She said:“This is the first time that Nigeria is outlining a fiscal framework for deepwater gas since exploration in the basin commenced in 1991″

 

 

 

 

According to her, amongst other initiatives, there has been a focus on midstream and downstream investments in Compressed Natural Gas, (CNG), liquefied petroleum gas, and electric vehicles as part of the Presidential Gas for Growth Initiative.

 

 

 

 

She added that the administration has also worked to streamline regulatory processes, shorten project timelines, and reduce the high-cost premium of operating in Nigeria.

 

 

 

She said:“We have also introduced fiscal incentives to catalyze investments in the midstream and downstream sectors, including, Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Mini Liquefied Natural Gas (LNG).

 

 

 

 

“These align with the broader Presidential Gas for Growth Initiative, which seeks to enable the displacement of PMS and Diesel in three key sectors: heavy transport, decentralised power generation and cooking. These incentives are also stimulating demand for Electric Vehicles.

 

 

 

“Our goal is to eliminate the 40% cost premium within the Nigerian petroleum industry and cut down contracting timelines from 38 months to 135 days,” Verheijen stated.

 

 

 

 

She said the government has unlocked over $1 billion across the energy value chain, with two more major investment projects expected by mid-2025.

 

 

 

 

“We are also facilitating the transfer of onshore and shallow water assets to local companies with the capacity to grow production, while supporting the transition of International Oil Companies, with resilient capital, into deep offshore and integrated gas. We have unlocked over $1 billion in investments across the value chain and by the middle of 2025 we expect to see FID on two more projects, including a multibillion-dollar deepwater exploration project, which will be the first of its kind in Nigeria in over a decade – one of many to come.”

 

 

 

She also addressed efforts by the Tinubu administration to revamp the nation’s power sector, with plans to provide more reliable electricity access for the 86 million Nigerians currently underserved.

 

 

 

She said the scheme aims to improve revenue assurance and collection.

 

 

 

 

Other key measures include tackling legacy debt, deploying seven million smart meters to reduce losses, and expanding off-grid solutions for remote communities.

 

 

     Mohammed Shosanya

 

 

 

Global oil demand is projected to reach 120.1 million barrels per day (BPD) by 2050, while energy demand will rise 24% during the same period, says the Organization of Petroleum Exporting Countries (OPEC) Secretary General Haitham Al Ghais.

 

 

 

In a keynote address at the African Energy Week: Invest in African Energies 2024 conference, Al Ghais said that African producers will play a central role in meeting rising demand.

 

 

 

“Demand will be fueled by a world economy that is expected to be more than double in size to more than $360 trillion by 2050. Driving this economic growth is the rapidly expanding world population, expected to reach 9.7 billion from the current 8 billion. Urbanization globally will continue to intensify. Over 600 million people are expected to move to new cities around the world, including Africa,” he said.

 

 

He drew insight into OPEC’s recently-launched World Oil Outlook (WOO).

 

 

 

 

Launched in September 2024, the 18th edition of the WOO featured a review and assessment of the medium- and long-term prospects for the global oil and energy sectors.

 

 

The publication offers a comprehensive analysis of global supply and demand dynamics while taking into account the interplay between energy security, energy affordability and the need to reduce emissions.

 

 

For Africa, which faces an energy crisis with over 600 million people lacking access to electricity and over 900 million people lacking access to clean cooking solutions, increasing oil and gas production is a fundamental requirement. As such, Al Ghais emphasizes the need to increase investment in oil and gas.

 

 

“Oil and gas will remain the predominant fuels in the energy mix. To ensure security of supply to fuel this demand, our industries need to invest and boost investment levels significantly in the years to come,” he explained.

 

 

 

Al Ghais disclosed that “For Africa, the future looks bright. It has an estimated 125 billion barrels of proven reserves of oil. It is vital that African countries develop these resources with access to the necessary funding and technology.

 

 

 

He added:”This is vital for the economic and social development of the continent and its people.”

 

 

 

 

 

 

Mohammed Shosanya

 

 

As part of the strategies to increase Nigeria’s crude oil production and enhance revenue accruing to the national treasury, the Nigerian Content Development and Monitoring Board (NCDMB) has advocated for one week in each year to be dedicated to signing final investment decisions (FIDs) on new oil and gas projects.

 

 

 

Its Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe made the proposal on Tuesday in his presentation at the 2024 African Oil Week, holding at Cape Town, South Africa.

 

 

 

 

 

Ogbe,in a statement said that the FID Week, if adopted,could be incorporated into the existing annual international oil and gas conferences and would feature international and indigenous operating companies.

 

 

 

 

 

He maintained that dedicating one week every year for FID signing could compel companies and relevant regulators to fast-track their processes to meet the deadline.

 

 

 

 

 

He also indicated that the proposal for an annual FID Week has already been broached to Special Adviser on Energy to President, Mrs. Olu Verheijen and the leadership of the Nigerian National Petroleum Company Limited and international operating companies and was being considered.

 

 

 

 

He was represented at the African Oil Week by the Director, Projects Certification and Authorization Division (PCAD) Engr. Abayomi Bamidele.

 

 

 

 

He said the proposal for an annual FID Week was geared to address the insufficient FIDs signed by the operating companies and the limited number of new projects being developed in the Nigerian oil and gas industry. These worrisome developments contributed to Nigeria’s dwindling crude oil production and the negative impact on revenue, he said.

 

 

 

 

 

He suggested that the Nigerian oil and gas industry needed to have at least one or two final investment decisions on major projects to be signed every year, to catalyze activity in the local service sector and the national economy and ultimately increase crude oil and gas production and revenue for the country.

 

 

 

 

Referring to the three Presidential Directives (PDs) rolled out by President Bola Ahmed Tinubu in March 2024, for the oil and gas industry, the NCDMB boss said the agency had complied fully with the directives as it relates to fast-tracking the contracting cycle and eliminating middlemen with no demonstrable capacity from participating in the oil and gas value chain.

 

 

 

 

The PDs included Presidential Directive on Local Content Compliance, Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines and Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc)

 

 

 

Ogbe announced that NCDMB had applied the Presidential Directives in approving five oil and gas projects which are currently in the funnel.

 

 

 

He hinted that the expected production values of those projects are 1 billion standard cubic feet of gas per day and 350 million barrels of crude oil per day.

 

 

 

Speaking on strategies that would ensure sustainable local content development in African nations, the Executive Secretary stated that local content has to be promoted as a national agenda and supported by all institutions, businesses, decision makers, investors and citizens.

 

Mohammed Shosanya

 

 

The Nigerian National Petroleum Company (NNPC) Limited has advocated the need for increased collaboration and transparency among parties in the global energy industry’s quest to phase out carbon emissions across the oil and gas value chain and achieve net-zero by 2050.

 

 

 

Group CEO NNPC Ltd, Mele Kyari disclosed this while speaking at a Strategic Panel Session titled “Decarbonising Operations across Upstream, Midstream and Downstream” at the ongoing Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC 2024) in Abu Dhabi, United Arab Emirates, on Tuesday.

 

 

 

A statement by Olufemi O. Soneye,the Chief Corporate Communications Officer of NNPC,quoted Keyari as saying that beyond collaboration,transparency and openness are also important and not by vilifying those lagging, but by ensuring that the gaps between all parties are bridged.

 

 

 

Kyari,who was represented by NNPC Ltd’s Executive Director, Upstream, Mrs. Oritsemeyiwa Eyesan said Africa is currently faced with the challenge of tackling the twin problem of decarbonization and energy poverty and to deal with such a challenge, Nigeria made two fundamental policy shifts to support the nation’s decarbonization process.

 

 

 

“One is declaring the decade of gas as transition fue from a predominantly  diesel and fuel economy to a gas-driven economy,while the second is the removal of fuel subsidy. NNPC Ltd has relied on these two policies to drive the nation’s decarbonization agenda,” Kyari said.

 

 

 

He added that as a signatory to the Oil & Gas Decarbonisation Charter  (OGDC),Nigeria is focused on achieving gas flare-out by 2030 through the utilisation of gas for automotive and power generation.

 

 

 

Kyari,who said Nigeria sits on huge gas reserves of up to 209 trillion cubic feet (tcf), explained that access to capital for funding gas projects has been a challenge as the balance sheet which could be easily used for raising money to fund gas projects,comes mostly from the international Oil Companies (OCs), which is also largely focused on export gas.

 

 

“It is important to know that if we must solve this existential problem, then there should be a provision for the global south (less energy endowed countries) to access capital to enable them address their problems,” he observed.

 

 

 

He decried how all parties are placed in the same bracket in the quest to decarbonize, saying that because the pace of progress is based on the current state of the countries,the OGDC must continue to provide a level playing field for all.

 

 

 

“It is in understanding the differences that exist among us, even though we are trying to solve the same problem,” he added.

 

 

 

Describing the level of collaboration in the quest to decarbonize as “phenomenal”, Kyari cited the example of TotalEnergies, which took the challenge to partner with NNPC Ltd through its methane measurement and detection technology.

 

 

 

This year’s edition, the 40th in the series of the annual event, holds under the theme,”Connecting Minds. Transforming Energy”as global energy leaders continue to find ways of accelerating innovation and collaboration towards fast tracking global energy transformation.

 

 

 

Mohammed Shosanya

 

 

The Nigerian National Petroleum Company Limited (NNPCL) has reacted to recent protests over hike in the prices of petrol,saying those who partook in the act were not well informed about the true state of things in Nigeria’s fuel supply chain.

 

 

 

 

Some protesters had earlier stormed the headquarters of the oil giant in Abuja, demanding the resignation of Kyari over the increase in the prices of petrol nationwide.

 

 

 

 

Spokesman for the NNPCL, Olufemi Soneye,clarified the company’s position in a media chat,where he also exonerated the Group Chief Executive Officer (GCEO), Mallam Mele Kyari,from. the upward movement in the cost of the product.

 

 

 

He said:“Unfortunately, the protesters lack understanding of the sector. If they were informed, they would know that the GCEO is not responsible for the fuel price increase; in fact, he ensured Nigerians had access to fuel at N620 per liter for over a year, even when the landing cost was above N1,100. NNPC Ltd. does not import adulterated fuel. If anyone has evidence to the contrary, they should bring forward samples of any such fuel imported by NNPC.”

 

 

 

According to him,no group or individuals motivated by selfish interests would deter or distract the NNPCL from achieving the goal of implementing President Bola Ahmed Tinubu’s roadmap for the sector to accomplish to ensure energy security for our nation.

 

 

 

He added“I won’t waste time engaging with individuals motivated by selfish interests. We have more pressing projects to accomplish to ensure energy security for our nation rather than focusing on inconsequential groups. We are committed to implementing President Bola Ahmed Tinubu’s roadmap for the sector, and no group will deter or distract us from achieving this goal”

 

Mohammed Shosanya

 

The Board of Trustees of the Nigerian Institution of Petroleum Engineers (NiPeTE) has expressed its unanimous vote of confidence in the leadership of its National Chairman,Engr. Prisca Kanebi.

 

 

 

 

The board conveyed its satisfaction in a communique issued on Tuesday in Lagos and signed by the Chairman of the Board of Trustees, Prof. Michael Onyekonwu,

 

 

 

Onyekonwu commended Kanebi for her unwavering dedication,commitment, and focus in advancing the goals of NiPeTE and contributing significantly to the growth and development of Nigeria’s oil and gas industry.

 

 

 

He noted Kanebi’s tireless efforts in promoting best practices, innovation, and sustainable development in the sector had not gone unnoticed.

 

 

 

 

He said that under her stewardship, NiPeTE has achieved significant milestones, and the Board is confident that her visionary leadership will continue to drive the association toward even greater success.

 

 

 

 

“In light of Kanebi’s impressive track record and the positive impact of her tenure, the Board of Trustees, alongside the Fellows and members of NiPeTE, wholeheartedly reaffirms our support for her re-election for another term,” Onyekonwu stated.

 

 

 

 

He added:“We believe that her leadership will continue to foster growth, collaboration, and excellence within both NiPeTE and the broader petroleum engineering community.”

 

 

 

He implored all members of NiPeTE to rally behind Engr. Kanebi as she seeks re-election, confident in her ability to lead the association to new heights in the coming years.

 

 

 

He emphasised that the election was transparent,fair,and in accordance with the institution’s governing framework, ensuring that the principles of accountability and fairness were upheld.

 

 

 

“The re-election of Kanebi followed NiPeTE’s electoral guidelines and met all necessary requirements. It was fully endorsed by the members of the institution, and any suggestion to the contrary is inaccurate and unfounded,” said Prof. Onyekonwu.

 

 

 

He expressed concern over the spread of misleading information regarding the re-election process and called on the Nigerian Society of Engineers (NSE) to refrain from making unsupported claims that could tarnish the reputation of NiPeTE and its leadership.

 

 

 

 

He added:“It is essential that we work together to uphold the integrity of the engineering profession, rather than engage in divisive rhetoric that undermines the achievements of the petroleum engineering community”

 

 

 

 

He reiterated the board’s full confidence in Engr. Kanebi’s leadership and commended her significant contributions to the nation’s oil and gas sector.

 

 

 

 

 

 

Mohammed Shosanya

 

Heirs Energies, a leading integrated energy company in Africa, announces its participation in the prestigious African Energy Week (AEW) 2024, taking place from November 4-8 in Cape Town, South Africa.

 

 

 

Osa Igiehon, CEO of Heirs Energies, will represent the company at this pivotal gathering of energy stakeholders across the continent and beyond.

 

 

 

AEW 2024, centered on the theme “Investment in African Energies: Energy Growth Through Enabling Environment,” brings together high-level government officials, industry leaders, and international investors to shape the future of Africa’s energy sector.

 

 

 

Osa will participate in several key sessions, including:A fireside chat on “Navigating Nigeria’s Energy Future: Challenges, Strategies, and Opportunities in the Upstream Sector”

 

 

 

A panel discussion on opportunities for Nigerian independent operators.

 

 

An exclusive roundtable on Africa’s green energy future, sharing Heirs Energies’ vision for African energy development

 

 

“Heirs Energies is committed to driving sustainable energy solutions that power Africa’s growth,” said Osa Igiehon, CEO of Heirs Energies.

 

 

 

Highlighting the import of collaboration in shaping a sustainable energy future, Heirs Energies reaffirms its commitment to driving progress in Africa’s energy sector.

 

 

 

“Our participation in African Energy Week 2024 shows our dedication to collaborating with stakeholders across the continent to unlock Africa’s vast energy potential and address global energy security challenges,” Osa stated.

 

 

 

 

The event will feature prominent attendees including heads of state, ministers of energy and petroleum resources from various African countries, global energy leaders, and executives from major international organizations.

 

 

 

 

Heirs Energies’ involvement in AEW 2024 reflects its position as a key player in Africa’s energy landscape and its commitment to fostering partnerships that drive innovation and sustainable development across the continent.

 

Mohammed Shosanya

 

 

Dangote Refinery has alleged that an international company has hired a depot facility near its facility in Lagos,to blend fake fuel in the country.

 

 

 

 

The fake fuel will be dumped into the market to compete with Dangote Refinery’s higher quality production, the company’s Group Chief Branding Officer Anthony Chiejina,said in a state on Sunday.

 

 

 

 

He lamented that the development  is detrimental to the growth of domestic refining in Nigeria, adding that it is not unusual for countries, including Nigeria to protect their domestic industries in order to provide jobs and grow the economy.

 

 

 

 

He added:”For example, the US and Europe have had to impose high tariffs on EVs and microchips in order to protect their domestic industries.

 

 

 

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty”.

 

 

 

He punctured claims by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) regarding lower-priced fuel imports.

 

 

He said that their pricing of ₦960 per litre for ships and ₦990 for trucks is competitive and benchmarked against international rates.

 

 

 

 

He also said that any cheaper imports likely consist of substandard products, posing risks to public health and vehicle longevity.

 

 

 

His statement reads: “We had lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations.

 

 

 

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports.

 

 

 

 

“If anyone claims they can land PMS at a price cheaper than what we are Selling, then they are importing substandard products and conniving with international traders to dump low quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles.

 

 

 

 

“Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

 

 

“Post deregulation, NNPC set the pace by selling PMS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

 

 

 

 

“In good faith, and in the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.