Oil & Energy

Averting NUPENG Strike Over Eleme Road

Published

9 years ago

June 26, 2017

For the past two months, there has been a public outcry over the terrible situation of the road from Eleme junction to the Refinery in Port Harcourt, the Rivers State capital.
For millions of Nigerians plying the route on daily basis, in the course of private and public businesses, the condition of the road has not only become deplorable but impassable.
A journey across this axis of the road which ordinarily should take about 20 minutes, now takes about four hours under very frustrating conditions.
The National Union of Petroleum and Natural Gas Workers (NUPENG), particularly the Petroleum Tanker Drivers (PTD) branch of the union, has consistently appealed to the Federal Government to give urgent attention to the road. The body said, if permanent attention cannot be given to the road, at least, let temporary measures be provided to enable its members operate on the road in view of the peak of the rainy season.
Tanker drivers who ply the road daily while distributing petroleum products from Eleme Refinery to different parts of the country have lamented that the condition of the road has become a nightmare and a major frustration in their business operation.
Disappointed that their appeals have not been able to attract the Federal Government’s sympathy or attention to their plight, the body threatened to withdraw its members services to the nation.
The Rivers State chairman of PTD, Comrade Lucky Etuokwu, in his several media out busts had explained the pains, frustrations and heavy maintenance costs that petroleum tanker drivers have to bear due to the deplorable road condition.
According to him, there is need for government to fix the road before the peak of the rainy season because of the flood, occasioned by lack of drainage, covers the road, tanker drivers would find it difficult to meander through the bad spots and that this could lead to ship-off and eventual fall of trucks.
In an event of a fall, the petrol fire likely to follow could take lives of the drivers and other persons, as well as vehicles and structures close to it, adding that the petroleum products content of the truck which runs into millions would also go.
Etuokwu consistently called on the Federal Government as well as the Rivers State Government to fix the road to forestall the dire consequences, threatening that the body would have no option than to withdraw the services of its members, if government fails to do the needful.
Just as PTD is calling and wailing, the parent organization, NUPENG also aligned with it and added that if the appeals fail, it would also embark on a nationwide strike.
AS the voices of PTD, NUPENG and the public reached a crescendo, there came a ray of hope when the Minister of Power, Works and Housing, Babatunde Fashola, arrived the state (barely two weeks ago) on his official visit to Afam Power Plant in Oyigbo Local Government Area. Expectation was that the minister would take the advantage provided by his visit to make clear statement about Federal Government’s concern on the road. But such was not to be.
Again, by fortunate coincidence, the Minister of Transportation, Rotimi Amaechi, an indigene of the state, flew into Port Harcourt on the occasion of his 52nd birthday celebration. Amaechi’s visit provided yet another hope for the suffering Nigerians that the minister would, at least, given an indication of the government’s feelings, particularly when the issue impinges on transportation. But, again, this was to no avail.
They had wondered, does it mean that, the public outcry over the dangerous situation of the road does not matter to the Federal Government? Or is the Federal Government too busy with more pressing issues that it cannot consider the serious threat being posed to lives of the citizens and the economy of the nation in view of the strategic position of their road? Where then lies the hope of the people?
Apparently worried by the seemingly not-so-important attitude of the government to the road, youths of some local government areas along this axis of the East West Road, rose up Friday, threatening total blockage of the road. According to the spokespersons of the youths, if in seven days, nothing was done by government, they would block the road and bring to a total halt all movements.
Should the ultimatum of the vexing youths elapse and the route be totally blocked in protest? Should the tanker drivers withdraw their services? Should NUPENG call out oil workers on a nation-wide strike before the needful is done? The consequences would be so dire to our national economy that is already at a strait.
The consequences of the two actions of youths and oil workers would indeed be too far-reaching. There would be crisis in the distribution of petroleum products, creating scarcity and price increase nationwide. NUPENG strike means calling on oil workers to down tools resulting in a replay of our old ugly tunes. A mental picture of rampaging youths blocking this busy road would be terrible and better left for the imagination.
The best option is for the Federal Government to get on top of the situation and save the nation, a trauma of these ugly events which might follow.
Apart from the refinery, this axis of the East-West Road connects the Federal Ocean Terminal (FoT), the Naval College, Indorama the biggest petrochemical plant in the West African sub-region, and of course, the Onne Oil and Gas Free Zone (OGFZ) which hosts over 250 companies.
There is no gain saying that the road plays a major role in the economic life of the nation. But neglect of this road has become historic and many believe that the earlier it is given the attention it deserves, the better for the nation.
The road in question is a Trunk A road whose responsibility to maintain is that of the Federal Government. But the inability of the central government to give adequate attention to the road has directly pushed pressures on Rivers State Government.
Recall that at the inception of the present administration in the state led by Governor Nyesom Wike, it took remedial actions to fix the road which was in a terrible condition and also affecting negatively the operations of companies in the area.
Governor Wike then reached out to the managements of some of the companies operating in the area and initiated a temporary rehabilitation of parts of the road. This step was able to sustain public movement till the present period.
Before Wike’s administration, the preceding administration in the state led by Rotimi Amaechi invested so much resources and funds on Federal Government roads in the state with the hope that government at the centre would refund. But the state could not get its refund till that administration elapsed. The reluctance or unwillingness of Federal Government to refund states what they spent in fixing Trunk A roads in their various areas has become a big discouragement for them to continue.
To be sincere to the Federal Government, it had made efforts in the past to rebuild the East-West road, but that was not achieved. Billions of naira was reportedly uncovered to have been defrauded the system by the contractors who blew the billions and left us all in this mess. Yet, it is the responsibility of the Federal Government to make these contractors to cough out our billions.
Federal Government is expected to find a lasting solution to this East-West road that had for decades remained a nightmare to travelers. It could through its agencies and with the support of the National Assembly save us all from the mess by declaring a state of emergency on this road that is a life-wire of the nation’s economy.
But while expecting the Federal Government’s permanent solution, Governor Wike of Rivers State can also do good by finding a temporary measure to the road. In Wike’s score card, road construction remains one of his winning points and this feat cannot be sustained if people and residents of Rivers State continue to suffer avoidable trauma due to terrible conditions of Trunk A roads in the state.
In fixing the dangerous spots on the Eleme Junction-Refinery road axis of the East – West Road, let Governor Wike also extend this temporary measure to Eleme Junction to Oyigbo axis of Aba Road which is also a Trunk A road and in a state of abandonment.
By fixing these federal roads so far neglected by the central government, Governor Wike would not only be improving his profile as “Mr Project”, but would also be helping the nation in averting another national disaster that goes with a nation-wide oil workers’ strike.

Chris Oluoh

Oil & Energy

Resource Wars Are Here and Oil Is the First Casualty

Published

2 weeks ago

March 30, 2026

The Tide

In just over a year, the world saw several instances of a choked supply of commodities indispensable for today’s economies and military capabilities.

From China’s restrictions on rare earths and critical minerals supply to the de facto closure of the Strait of Hormuz, policymakers and analysts began to realize that the control of oil, critical minerals, rare earths, and magnets is as important as building and maintaining stockpiles of advanced weapons. It also became clear that without these resources, defense and military capabilities could be weakened. The actual arms race goes hand in hand with the new battle for the resources that underpin economic, manufacturing, and advanced military development.

“Great-power competition has returned to basics: who controls the physical resources that modern economies and militaries run on,” Alice Gower, a partner at London-based political-risk advisory firm Azure Strategy, told the Wall Street Journal.

“Energy, critical minerals and industrial capacity are leverage, not just economic assets,” Gower added.

The war in the Middle East and the blockage at the Strait of Hormuz laid bare the reality of choked energy supply. The world’s most vital oil and LNG chokepoint, through which 20% of daily global trade flowed before the Iran war, has been essentially closed for most tanker traffic for more than three weeks.

The massive supply shock, the worst disruption in the oil market in history, showed that the world is dependent on energy resources, and that geography and actual physical supply matter. With so much oil and gas stranded in the Middle East, oil prices spiked to above $100 per barrel, natural gas prices in Europe doubled, and Asian spot LNG prices hit multi-year highs.

The precarious situation in the Middle East is reverberating across Asia, the region most dependent on oil and LNG supply from the Persian Gulf. Asian refiners pay sky-high premiums for non-Middle Eastern crude, many are considering cutting or have already cut processing rates, and countries have started to enact fuel-preserving measures, from four-day work weeks to bans on fuel exports.

In Europe, the gas refilling season will be the toughest yet, as Asia is outbidding Europe for spot LNG supply after Qatar’s LNG is effectively sidelined and full capacity may not return for up to five years following Iranian missile attacks last week.

Even the ‘energy independent’ United States, the world’s top oil producer, is not independent when it comes to global supply shocks of such magnitude.

The national average price of gasoline is approaching $4 per gallon nationwide, more than $1 a gallon compared to a month ago, before the start of the war.

Oil is a global resource, traded on a global market, and prices reflect fundamentals, although they have been driven by hectic trading activity on geopolitics in recent weeks. But the fundamentals show that there is no resource available to plug the gap that has opened in Middle Eastern supply. Producers are slashing output due to a lack of storage capacity, which further delays a rapid recovery in supply when this mess ends.

All this goes to show that whoever controls the Strait of Hormuz has enormous leverage on inflicting global economic pain.

While the world is focused on the Strait of Hormuz, the race for rare earths and critical minerals continues, with the U.S. and Western countries scrambling to dent China’s dominance.

Since China restricted exports of rare earth elements early in 2025, Western countries have raced to create mine-to-magnet supply chains to reduce dependence on Chinese supply in the key military and automotive industries.

China holds a 59% share of the mining of rare earths, 91% in refining, and a whopping 94% in magnet manufacturing, the International Energy Agency (IEA) estimates.

The U.S. has responded by taking stakes in minerals mining companies, the launch of a U.S. Strategic Critical Minerals Reserve, known as Project Vault, and is leading efforts to break the Chinese stronghold on the pricing of these minerals critical for the defense and auto industries and national security.

Chinese dominance could be eroded, but it would take years.

Still, rising neodymium-praseodymium (NdPr) supply from countries like the U.S. and Australia is set to reduce China’s market share to 69% by 2030 from 90% in 2024, Bloomberg Intelligence (BI) said in new research this month.

“We’re seeing a surge in rare-earth investment as modern technologies demand more critical materials,” said Jack Baxter, Global Metals & Mining Analyst at BI and co-author of the report.

“That said, we anticipate a significant shortfall in supply due to trade uncertainties, with lead times as long as 10 years to get new material out of the ground,” Baxter added.

“This will give pricing power to the few producers that currently are able to supply critical materials outside of China, fracturing the globalized market.”

Amid fractured markets and high geopolitical uncertainty, one thing is certain – the next arms race, alongside the actual arms race, will be for control of key resources such as oil and critical minerals.

By Tsvetana Paraskova

Oil & Energy

Transcorp Energy, Renewvia Partner On Renewable Energy Gap

Published

2 weeks ago

March 30, 2026

The Tide

Transcorp Energy Limited and Renewvia Solar Nigeria Limited have signed a Memorandum of Understanding to jointly develop renewable energy projects across Nigeria.

The move is aimed at addressing the persistent power deficit that has crumble businesses in the nation.

The agreement also outlines a longer-term plan to expand operations across Africa, positioning both firms to tap into growing demand for clean and reliable electricity.

The partnership would target commercial, industrial and residential consumers, as well as underserved communities, through a mix of off-grid and grid-connected energy solutions.

Beyond electricity provision, the collaboration would explore the aggregation and monetisation of Renewable Energy Credits generated from the projects, adding a commercial layer to the clean energy rollout.

The Managing Director and Chief Executive Officer, Transcorp Energy, Chris Ezeafulukwe, said the initiative aligns with the company’s broader strategy to expand access to sustainable power.

He noted that combining grid and decentralised energy systems would enable the company to deliver reliable electricity directly to end-users across different segments of the economy.

Chief Executive Officer of Renewvia, Trey Jarrard, described Nigeria as a critical market for the company’s African ambitions.

According to him, the partnership provides a platform to scale operations rapidly by leveraging established infrastructure and local expertise, while delivering cost-effective and resilient energy solutions.

Both companies said the agreement lays the foundation for a scalable pan-African renewable energy business, capable of supporting diverse markets and accelerating the continent’s transition to cleaner power sources.

The collaboration comes amid increasing pressure on governments and private sector players to deploy sustainable energy solutions to bridge electricity gaps, reduce reliance on fossil fuels, and support economic growth across Africa.

Oil & Energy

IYC Tasks Niger Delta Governors On Oil Field Bidding ….Decries Exclusion of Host Communities

Published

2 weeks ago

March 30, 2026

The Tide

The Ijaw Youth Council (IYC) Worldwide has raised concerns over the continued exclusion of host communities from the governance of oil resources, urging Niger Delta governors to take decisive steps by bidding for oil blocs and marginal fields.

The council warned that failure to act would allow external interests to continue dominating the region’s oil assets, despite their location within host communities.

Secretary-General of the council, Maobuye Nangi-Obu, started this at the stakeholders’ meeting organised by the Pipeline Infrastructure Nigeria Limited , with participants drawn from Rivers, Abia and Imo States, in Port Harcourt, recently.

“It is time for state governments in the Niger Delta, especially Rivers State, to form oil companies that can bid for marginal fields within their territories”, he said.

Nangi-Obu expressed concern over the reported listing of about 25 marginal oil fields for allocation, noting that many were located in host communities but allegedly being assigned to non-indigenes.

In his words “They sit in Abuja and decide what happens in our region, yet we are not part of the oil governance of our own resources”.

He explained that marginal fields, though considered uneconomical by major oil firms, remain viable for indigenous operators, adding that their allocation had continued to fuel grievances in the Niger Delta.

The IYC scribe also warned of the implications of directional drilling, describing it as a growing threat to host communities.

“There could be oil wells in your community, and somebody elsewhere could be drilling that oil without your knowledge,” he cautioned.

On environmental concerns, Nangi-Obu condemned the persistent gas flaring in the region, blaming both international and local operators for failing to invest in gas processing infrastructure.

He, however, commended Pipeline Infrastructure Nigeria Limited for its engagement with host communities.

“Pipeline Infrastructure Nigeria Limited is doing the right thing by engaging stakeholders. Not all companies are doing what they are doing,” he stated.

Traditional rulers at the meeting, further acknowledged improvements linked to the company’s activities in their areas.

The Eze Ekpeye-Logbo, King Kevin Anugwo, represented by Dr Patricia Ogbonnaya, noted that “aquatic life that disappeared due to pollution is gradually returning,” attributing the development to improved environmental conditions.

Similarly, Chairman of the K-Dere Council of Chiefs, Chief Batom Mitee, said, “There is now peace in our community,” stressing, increased oil production must translate into tangible benefits for host communities.

By: King Onunwor