Oil & Energy

Oil Firm Begins Negotiation With Aggrieved Egi Landlords

Published

12 years ago

June 16, 2014

The management of To
tal E & P Nigeria Limited, has commenced negotiation with members of Egi Oil and Gas Landlord Families Association in Ogba/Egbema/Ndoni local government area of Rivers State who recently blocked the company’s flow station at Obagi and gas plant at Obite.
The Executive General Manager (Corporate Services) of the Company, Engr Vincent Nnadi, who represented the Managing Director / CEO, Mrs Elisabeth Proust, led a team of total senior officer to a peace meeting with the association which held Thursday in Port Harcourt, the Rivers State Capital. Nnadi assured the aggrieved landlords that despite the situation, the company still holds them in high esteem. He, however, expressed disappointment over the approach adopted by the association in expressing their anger and noted that they failed to take advantage of several channels of communication and conflict resolution mechanism available to them which could have ensured quick handling of the issue.
Responding on behalf of the Egi Oil and Gas Landlord Families, Mr Christain Ahiakwo, expressed regrets over what he described as unwillingness of the company towards implementing the Memorandum of Understanding (MoU) the company entered with the association.
He reminded the Total team that way back in 2012, the Egi Oil and Gas Landlord Families were not willing to enter into negotiation with the company because of the perceived insincerity of the expatriate top leadership of the firm. According to him, it was in the light of the above that the association decided it would not entire into negotiation in the present situation until the Chief Executive Officer of the Company and National Petroleum Investment Management Service (NAPIMS) were in attendance.
Ahiakwo noted that NAPIMS had become a cog in the wheel of progress as it has shown disrespect to the development of Egi saying, “if you say that Egi fields are no longer producing, please go and leave our oil and gas alone. He equally condemned the attitude of the sons of the area occupy influential position who in the company, accusing them of constituting themselves into stumbling blocks against the interest of the people of Egi and reminded them that it was through the collective struggle of the people that they were employed.
Nnadi emphasised that it was in the interest of finding lasting solution to the face-off that the company dispatched the team and promised that their people’s request would be presented to the managing director who herself has shown serious interest in quick resolution of the issues . He pleaded with the landlords to remains calm and refrain from further action pending the reaction of the company to their request.
It would be recalled that between Monday June 2 and Wednesday June 4, the association mobilsied enmass and blocked the company’s flow station at Obagi and gas plant at Obite in protest against alleged non-implementaiton of 2012-2016 Memorandum of Understanding (MoU) which the multinational signed with the association.

Chris Oluoh

L-R: President, Nigerian Economic Society, Prof. Akin Iwayemi, Chairman, House of Representatives Committee on Petroleum Resources (Downsream), Rep. Dakuku Peterside and Deputy Speaker, House of Representatives, Chief Emeka Ihedioha, at the Third Downstream Stakeholders Conference in Abuja recently.

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

4 hours ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

4 hours ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

4 hours ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”