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FG May Drag Shell To Court Over Bonga Oil Spill

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FRSC officials certifying petroleum tanker  drivers in Eleme Local Government of Rivers State recently.     Photo: NAN

FRSC officials certifying petroleum tanker drivers in Eleme Local Government of Rivers State recently. Photo: NAN

There are indications that
the Federal Government may drag the Anglo Dutch oil gaint, Shell Exploration and Producing Company (SNEPCO) to court following its refusal to pay the fine imposed on it over the Bonga oil spill.
The value of the fine is $3.6 billion.
The National Oil Spill Dectection and  Response Agency (NOSDRA) which gave the indication, expressed dismay over the refusal of SNEPCO to provide relief materials for the shoreline fishing communities due to the huge impact of the spill.
According to NOSDRA, over 40,000 barrels of crude oil spilled into the Atlantic Ocean, and that the spill occurred as a result of equipment failure, making SNEPCO responsible for the damages.
NOSDRA had issued a statement through its Head of Public Affairs, Mr Henshaw Ogubike, saying,  “Despite the fact that the incident was caused by equipment failure and the admission by the then managing director that 40,000 barrels of crude oil spilled into the Atlantic Ocean, no attempt was made by the oil company to provide relief materials for the shoreline communities with respect to the acute and chronic impact of the crude oil on the environment,”.
Ogubike said in 2014, NOSDRA issued a notification of sanction to the oil company with regard to the Bonga Spill incident but it has yet neither paid compensation to the affected shoreline communities nor provided relief materials to them as directed by the agency and the House of Representatives Committee on Environment.
However, in a reminder signed by the D-G of NOSDRA, Mr Peter Idabor, SNEPCO has again been urged to pay the said amount either in its foreign currency value or Naira equivalent as compensation and administrative costs for its failure to effect clean-up on the impacted site within the stipulated period as provided in the agency’s Act and Regulations.

 

Chris Oluoh

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Oil & Energy

Electricity Boost: Abia Launches Waste-To-Energy Project 

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Abia State Governor, Alex Otti, says the state is no longer experiencing power failures caused by frequent collapses of the national grid.
This is as his administration begins investing in converting organic waste Into electricity.
Speaking to the media at the State Government House, last Thursday, Governor Otti revealed that waste products are now being transformed into renewable energy through Biogas.
He stated that the state is no longer fully under the supervision of the Nigerian Electricity Regulatory Commission (NERC).
Otti explained that the new arrangement has been negotiated and accepted by the the Enugu Electricity Distribution Company (EEDC), the utility firm responsible for power distribution in Abia.
In his words “This is a pilot programme. Instead of discarding waste, we can convert it into clean energy, enabling us to power numerous areas, particularly the Umuahia In-Farms.
 “I had earlier reported that our proposals to EEDC have been accepted, and we are in the process of raising funds to settle obligations with them.
“On 24th December, the Abia State Electricity Regulation Authority took iver the regulation of power from NERC. From now on, generation, transmission, and distribution will be regulated within the state.”
Otti highlighted that the initiative is aimed at improving efficiency and achieving energy independence, similar to how Aba Power provides electricity for the Aba In-Farms.
“You may Have noticed that during some recent national grid collapses, our state remained unaffected because a significant portion of our power infrastructure is now under our authority,” he said.
Governor Otti further expressed optimism on the Progress of the programme saying “That is the entire purpose acquiring the Umuahia in-farms, and i am pleased with the advancements we are making in this regard.”
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NUPRC Pledges Transparency In 2025 Oil Pre – Bid Round

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reiterated its dedication to a transparent process for the 2025 Oil Bid Round.
The Chief Executive, NUPRC,  Mrs Oritsemeyiwa Eyesan, while speaking at a Pre-Bid Webinar, at the Weekend, emphasized that the process is an opportunity for investors to participate in a stable, rules-based system that fosters genuine value creation.
Eyesan disclosed that the process involves five steps including “Registration, Pre-qualification, Data acquisition, Technical bid submission, and Evaluation and Commercial Bid Conference.
“This has been done to increase competitiveness and a response to capital mobility,”.
“Only candidates with strong technical and financial credentials will move forward, chosen through a transparent merit-based process”.
She noted that with President Bola Tinubu’s approval, signature bonuses have been adjusted to reduce entry barriers, prioritizing technical capabilities, credible programs, financial strength, and production delivery speed.
“Let me state clearly that the bid process will comply with the PIA 2021, promote the use of digital tools, for smooth data access and remain open to public, and international and institutional scrutiny through partners like NEITI, and other oversight agencies. Indeed, transparency is an integral part of our process,” she stated.
“To further strengthen the process, today’s Webinar, the first of its kind, aims to clarify bid requirements and helps you participate effectively before the tender deadline as well. We also invite your questions and feedback to improve the licensing round process and outcomes.
“In closing, let me emphasize that the Nigerian 2025 Licensing Round is not merely a bidding exercise; it is a clear signal of a reimagined Upstream Sector anchored on the rule of law, driven by data, aligned with global investment realities, and focused on long term value creation”, the NUPRC boss stated.
The 2025 Licensing Round, launched on December 1, 2025, offers 50 oil and gas blocks across various terrains, including frontier, onshore, shallow water, and deep water.
Since then, all licensing materials have been posted on the Commission’s portal, and dedicated support channels have been created to address applicant inquiries.
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Dangote Refinery Affirms 75m Litres PMS, 25m Litres Diesel Daily Supply 

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Dangote Petroleum Refinery has reaffirmed its capacity to supply fuel volumes significantly more than Nigeria’s estimated domestic consumption.
The refinery said it can supply 75 million litres of Premium Motor Spirit (PMS) daily against an estimated national consumption of 50 million litres.
The company, in a statement issued to Journalists, at the Weekend, also said it has capacity to supply 25 million litres of Automotive Gas Oil (AGO) compared with an estimated daily demand of 14 million litres, along side capacity to supply 20 million litres of aviation fuel daily, above the estimated maximum domestic consumption of four million litres.
According to the refinery, the availability of volumes above prevailing demand provides critical supply buffers, enhances market stability and reduces reliance on imports, particularly during periods of peak demand or logistical disruption.
“The management of Dangote Petroleum Refinery would like to reiterate our capability to supply the underlisted petroleum products of the highest international quality standard to marketers and stakeholders,” the company said in a public notice.
The refinery reaffirmed its commitment to full regulatory compliance and continued cooperation with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stating that its supply approach is aligned with ongoing efforts to ensure market stability and orderly downstream operations.
The refinery said it remains fully engaged with regulators and industry stakeholders in support of Nigeria’s national energy security objectives, as the country deepens its transition from fuel import dependence to domestic refining.
It expressed willingness to work closely with market participants to ensure that the benefits of local refining, including reliable supply, competitive pricing and improved market discipline are delivered consistently to consumers nationwide.
The statement added “With domestic refining capacity expanding, stakeholders believe Nigeria is increasingly positioned to reduce foreign exchange exposure, improve supply security and strengthen downstream efficiency through locally refined petroleum products”.
By: Lady Godknows Ogbulu
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