Oil and gas
FG says it is determined to finally end gas flaring
*** PIA is a lifetime strategy that promises to bring renewed hope, says Komolafe
The Federal Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Health, Safety, Environment and Community of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has expressed determination to finally put an to gas flaring practices.
This it said will for the last time guarantee environmental sanity in the oil and gas value chain in the Country.
Executive Director, Health, Safety, Environment and Community of the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA, Capt. John Tonlagha said ‘Regulations and Guidelines’ have been developed in accordance with the PIA which are in the final stages of of approvals.
He spoke at the official commissioning of HOSTCOM’s Abuja Liaison Office and end of year community sensitization on the PIA
Speaking to the topic; the Role of NMDPRA on Zero Gas Flare and the Utilization of Environmental Remediation Fund as Contained in the Petroleum Industry Act (PIA)’
He said the objective of the Gas Revolution which underpins the 7 Big Win is intended to transform Nigeria into an industrialized nation with gas playing a major role by spurring particular enabling policies to launch the gas industry.
“The Nigerian Gas Master Plan (NGMP) is the blueprint designed to address growth in the domestic gas market as well as supply chains to ensure availability and affordability for users, infrastructure development, long-term supply security, as well as robust legal, regulatory, and fiscal policies.
“Its actualization is expected to stimulate economic growth, further improve Nigeria’s energy mix. drive investments, and provide the much-needed jobs for our citizens in the country.
“Thus, the development of gas infrastructure like the construction of the 61 4km Ajaokuta-Kaduna-Kano (AKK) gas pipeline, as well as increasing domestic utilization of LPG and CNG, commercializing gas flares under the National Gas Flare Commercialization Program (NGFCP), developing industrial gas markets, increasing Gas to Power, the National Domestic Gas Supply and Pricing Policy, the Nigerian National Gas Policy, the Nationg| Gas Expansion Programme and the Auto-gas policy.
“The effort towards establishing Train 7 by the Nigerian Liquefied in the reduction of gas flaring in Nigeria is also a laudable achievement.
“These are all ways the FGN has sought or attempted ta articulate its desired flare down policy as well as its keenness in strengthening the gas-to-power nexus in the country under the Gas Revolution.”
NUPRC chief executive, Engr. Gbenga Komolafe, commended HOSTCOM’s drive towards ensuring that host communities are fully involved in the actualization of the gains of the Petroleum Industry Act (PIA) 2021 while enhancing peaceful and harmonious coexistence between operators and their hosts.
Speaking to the topic; ‘Host Community Development Trust Milestones Implementation Achievments: A tool for possible eradication of vandalism and Crude oil theft at the official commissioning of the HOSTCOM Liaison office/end of year Community sensitization on the Petroleum Industry Act (PIA) he said the commission has continued to prioritize those aspects regarding the integration and well-being of host communities in its operational considerations to ensure fairness and justice.
“Evidence of our commitment to this objective can be seen in the tremendous efforts made by the Commission within the first six months of its inception in generating ideas, formulating proposals, and engaging stakeholders towards formulating a navigational aid for the implementation of the Host Community Development Trust Fund (HCDT), in line with the provisions of section 235 of the PIA, 2021.
“You will recall that in the seventh month of our stewardship, (June 28, 2022 precisely) the Commission unveiled the Nigeria Upstream Host Communities Development Regulation and Procedure Guide”
He indicated that the PIA is a lifetime strategy that promises to bring renewed hope by ushering in far-reaching reforms backed by proper implementation strategies,
He spoke on the topic, Host Community Development Trust Milestones Implementation Achievments: A tool for possible eradication of Vandalism and Crude oil theft at the official commissioning of the HOSTCOM Liaison office /end of year Community sensitization on on the Petroleum Industry Act (PIA) in Abuja at the weekend
He said at the Commission they were passionate about successfully driving the implementation process.
‘Armed with the provisions of the PIA-HCDT framework, the Commission has indeed moved ahead with the implementation of the requirements of the relevant provisions to deliver on its mandate, as seen by major and critical milestones achieved within a short timeframe.
“The effect of these strategies, which are aimed at ensuring the effective implementation of the provisions, would become obvious in the coming months.” He listed Some of the Commission’s activities to include
Gazetting, and publication of the Nigeria Upstream Host Communities Development Regulation (NUHCDR, 2022), in July, 2022 after series of engagements with industry stakeholders, engaging and collaborating with relevant agencies, such as the Corporate Affairs Commission (CAC), to facilitate the incorporation of the Trusts; for example, the Department of State Security (DSS), to facilitate the verification of the character and integrity of BolT members; the National Boundary Commission (NBC), to ensure the inclusion of littoral communities to a Settlor’s area of operations based on sound science, to mention just a few.
According to him, they have been able to set up the Implementation team currently driving the digitization of the application process; the Host Community Development Team to handle the process of implementation and attendant fallouts; and the Compliance and Enforcement Team for HCD Implementation, to ensure strict compliance by all
stakeholders including Settlors, and Host Communities, among others.
He said they have also carried out
Nigerian Upstream Host Communities Development Guidelines (draft stage), application for incorporation approval templates, and the recent move from digitization to automation of the HCD implementation process
Oil and gas
Confederation of Oil & Gas Communities Defends NUPRC Boss, Debunks Misconduct Allegations
The Confederation of Oil & Gas Communities of Nigeria has urged President Bola Tinubu to disregard allegations against the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe.
It described the claims as baseless and malicious.
The petition, submitted by Ufuoma Odiete, accused Komolafe of violating the Petroleum Industry Act (PIA) by establishing and chairing an Alternative Dispute Resolution Centre Body of Neutrals, which Odiete alleged is not recognized by the PIA.
It also alleged nepotism, claiming that 15 out of the 28 members of the committee are from the South West.
Addressing journalists in Abuja on Friday, the Confederation’s National Coordinator, High Chief George Bucknor, dismissed the petition as unfounded and intended to disrupt the smooth implementation of the PIA.
“The petition is malicious, vexatious, speculative, and libelous blackmail without substance,” Bucknor said. He explained that the establishment of the ADR Centre aligns with Chapter 3, Section 234 of the PIA, which empowers the Commission to create mechanisms for resolving disputes between settlors and host communities.
Bucknor clarified that the NUPRC’s role in host community development trust funds is regulatory and facilitative, not managerial. He cited Section 240(2) of the PIA, which mandates operators to contribute 3% of their actual annual operating expenditure to these funds.
He also criticized the petition as an attempt to destabilize the oil and gas industry and the Niger Delta region. “We strongly caution the petitioner against spreading false information,” he said, adding that host communities had passed a vote of confidence in Komolafe and his leadership.
Bucknor called on security agencies, particularly the Department of State Services (DSS), to investigate the motives behind the petition and ensure the stability of the sector.
Department of Security Services to use the earnest powers of their good offices to investigate: Ufoma Odiete subversive interest.
“The intentions of Ufuoma Odiete in his widely circulated malicious vexatious and libelous blackmail against NUPRC and the Commission Chief Executive is capable of truncating: the smooth beneficial running of the PIA and causing unrest in the Oil industry and the Niger Delta Region.”
The Confederation reaffirmed its support for Engr. Komolafe, emphasizing that his initiatives are pivotal to the successful implementation of the PIA and the advancement of the oil and gas sector.
Oil and gas
Nigeria’s Oil Earnings Projected to Hit N6.9 Trillion Monthly with Production Increase
The Federal Government may see a significant rise in revenue, up to N6.99 trillion monthly, following an increase in oil production to 1.8 million barrels per day (bpd), according to the Nigerian National Petroleum Company Limited (NNPC Ltd.).
In collaboration with industry stakeholders, the NNPC has intensified efforts to boost crude oil output to meet the government’s production targets.
This increase is coming as the average price of Brent crude remained stable at around $81 per barrel, creating favorable conditions for substantial earnings. Calculations based on current production levels and exchange rates show that producing 1.8 million bpd at $81 per barrel could yield approximately $4.37 billion in monthly revenue, which translates to N6.99 trillion at an exchange rate of N1,600 per dollar.
NNPC’s Group Chief Executive Officer, Mele Kyari, announced the milestone during a recent Oil Production War Room meeting at NNPC headquarters in Abuja, attended by top officials, including Petroleum Resources Minister Heineken Lokpobiri. Kyari emphasized that the increased production aligns with the Federal Government’s 2024 budget projections and long-term economic goals.
Chief Production War Room Officer Lawal Musa highlighted that the collaboration between the NNPC, security agencies, and local communities had been crucial to achieving the 1.8 million bpd level. The goal is now set to reach 2 million bpd by the end of the year, a target the NNPC is optimistic about achieving given the current momentum and security improvements in oil-producing regions.
Minister Lokpobiri commended the NNPC for achieving this production feat, describing it as a “remarkable milestone.” He expressed confidence that NNPC Ltd could not only meet but exceed the two million bpd target, further enhancing Nigeria’s revenue prospects.
The Chairman of the NNPC Board, Chief Pius Akinyelure, reinforced the board’s commitment to furthering this progress, urging the management and staff to pursue even greater achievements in the oil and gas sector. Dr. Paul Bebenimibo, spokesperson for Tantita Security Services Nigeria Limited, one of the private security agencies involved, confirmed the peaceful and secure environment in the Niger Delta as key to the production surge, assuring that further measures are in place to sustain and even increase output.
The drive to reach two million bpd underscores NNPC’s dedication to stabilizing and expanding oil production, with significant implications for Nigeria’s fiscal health and overall economic stability.
Oil and gas
Governor Ododo Seeks Federal Collaboration to Boost Oil Exploration in Kogi State
Kogi State Governor Ahmed Usman Ododo has called for enhanced cooperation between the state and the federal government to accelerate investment in oil exploration within Kogi State.
Governor Ododo made this appeal during a visit to Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), in Abuja on Thursday.
Special Adviser on Media to the Governor, Ismaila Isah quoted him to have reiterated his administration’s commitment to creating a favorable environment for investors, emphasizing the state’s readiness to work closely with the federal government.
He underscored the importance of fast-tracking oil exploration in Kogi in line with President Bola Ahmed Tinubu’s vision to expand exploration in Nigeria’s frontier basins.
Responding to the governor’s call, Senator Lokpobiri reaffirmed Kogi’s status as an oil-producing state and pledged the federal government’s commitment to attract investment to tap into the state’s vast oil resources. He highlighted the mandate of the Petroleum Industry Act (PIA), which tasks the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with exploring frontier basins.
He assured that the government is ready to deploy funds for further exploration in Kogi.
Senator Lokpobiri also commended Governor Ododo for his leadership and strides in governance, noting that these efforts will be key in attracting and sustaining investment in the state.
Kogi State became the first oil-producing state in Northern Nigeria in 2022 following the federal government’s confirmation of oil discoveries in commercial quantities.
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