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
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.
Oil and gas
We will soon unravel shady Issues in the Petroleum Sector, Senator Kawu vows
As the newly appointed chairman of the Senate Committee on Petroleum Downstream, Senator Sumaila Kawu has promised to tackle the persistent lack of transparency in Nigeria’s petroleum industry, which he likens to a “cabal.”
Kawu was appointed as chairman of the Committee following the demise of Senator Ifeanyi Uba who represented Anambra South who held sway as the chairman of the committee
Speaking to newsmen on Wednesday at the National Assembly, Kawu detailed his plans to shed light on the sector’s operations and engage the public in meaningful dialogue.
With rising fuel prices impacting Nigerians daily, Kawu emphasized the urgent need for clarity and accountability within the industry. “Our first step will be to study the current situation and gather information from relevant agencies,” he stated.
He highlighted the importance of holding public hearings, which will allow citizens to voice their concerns and experiences directly.
Kawu’s committee will focus specifically on reviewing contracts awarded by previous administrations and overseeing the current contracts for refinery repairs.
By scrutinizing the agreements, Kawu targets to expose any irregularities and ensure that funds are being used effectively.
He remarked, “We need to ask the hard questions and hold a public hearing to allow Nigerians to express their views.”
In his commitment to transparency, Kawu detailed his plans to engage with stakeholders, including the Nigerian National Petroleum Corporation (NNPC) and refinery operators, to understand the barriers to efficient production and accountability.
According to him, the recent visits to the refineries have given course fir concerns about unmet production timelines, prompting a call for a more rigorous evaluation of the situation.
Kawu’s focus on transparency is not only about identifying issues but also about fostering a culture of openness within the sector.
He promise to use the committee to dismantle the “cabal-like” operations that have characterized the industry, ensuring that decision-making processes are accessible and understandable to the public.
Senator Kawu expressed determination to implement measures that will stabilize the petroleum sector and address the legitimate concerns of Nigerians.
By prioritizing transparency and public engagement, he expressed the hope to restore confidence in the management of Nigeria’s petroleum resources.
Oil and gas
Controversy trails Mele Kyari’s continued stay in office amid soaring fuel prices
The ongoing fuel crisis in Nigeria, marked by skyrocketing prices and shortages, has triggered a wave of mixed reactions over the continued leadership of Mele Kyari, the Group Managing Director (GMD) and Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL).
Many Nigerians, alongside key industry stakeholders, are calling for accountability as the country’s oil and gas sector struggles under immense pressure.
Fuel prices have ballooned from N145.48 per liter in 2019 when Kyari assumed office, to nearly N1,000 per liter today, leaving the country in the grip of a cost-of-living crisis. This has led to widespread criticism of Kyari and the NNPCL, with some accusing the corporation of inefficiency and mismanagement that has further strained the already fragile economy.
Speaking in Abuja, Felix Osakwe, the 2023 presidential candidate of the National Rescue Movement (NRM), expressed deep disappointment with the state of the oil sector. He placed much of the blame on both Kyari and President Bola Tinubu, who also serves as the Minister of Petroleum.
“Engr. Mele Kyari should not be held solely responsible for the current crisis. The President, as the Minister of Petroleum, should also be accountable,” Osakwe said. “Kyari takes instructions directly from him, and they have failed to address the suffering of Nigerians due to the high cost of fuel.”
Osakwe further criticized the government for its lack of empathy, stating that the rising cost of transportation caused by escalating fuel prices has eroded the essence of democracy, making everyday life a struggle for Nigerians.
The call for Kyari’s removal has been echoed by lawmakers in the National Assembly.
A group, known as The Economy Rescue Group, led by Rep. Esosa Iyawe, has demanded Kyari’s resignation, citing the mismanagement of NNPCL as a primary cause of the sector’s decline. Iyawe emphasized that Kyari’s leadership has undermined President Tinubu’s administration and the promises of economic recovery under the “Renewed Hope Agenda.”
“We, the concerned lawmakers, believe that the mismanagement and failures of the NNPCL under Kyari have been disastrous for the country,” Iyawe said in a statement. “If he does not resign, we urge the President to suspend him to allow for a full investigation into the NNPCL’s activities.”
The lawmakers pointed to numerous issues plaguing the oil sector, including the distribution of adulterated fuel, indiscriminate licensing, and ongoing fuel scarcity despite Nigeria’s position as a major oil-producing nation.
They argue that the presence of cronyism within NNPCL and the use of middlemen for fuel trading have contributed to the crisis, demanding that Kyari’s management be thoroughly investigated.
Despite these growing calls for his resignation, Kyari has defenders. Rev. Olusegun Peters, National Chairman of the Democratic Peoples Congress (DPC), argued that Kyari should not be the scapegoat for Nigeria’s fuel crisis. Peters called for full deregulation of the oil sector, believing that more competition in the downstream sector would naturally drive prices down.
“Mele Kyari is not the real problem,” Peters said. “We need to open the oil and gas sector to competition. The more players we have, the better prices will become. No one man or entity should be allowed to dominate the supply of fuel.”
Peters also criticized the government for creating monopolistic conditions in the sector, suggesting that Kyari and the NNPCL are being unfairly blamed for deeper structural issues.
This controversy comes against a backdrop of significant challenges for Nigeria’s oil industry, including delayed refinery rehabilitation and allegations of corruption. Under Kyari’s leadership, the sector has been hit by accusations of inefficiency and mismanagement, leaving many to wonder if his continued tenure is sustainable in the face of public discontent.
As the pressure mounts, Nigerians continue to bear the brunt of the country’s fuel crisis, with hopes that swift and effective reforms will provide relief. The question remains whether the government will take decisive action to address the issues at the heart of the crisis, starting with the leadership of NNPCL.
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