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Oil Theft: Avuru Seeks National Emergency On Oil Sector
Former chief executive officer of Seplat Energy Plc, Austin Avuru, has said that 80percent of Nigeria’s oil production was lost to oil theft.
This is coming amid an assertion by the Chairman of the United Bank for Africa (UBA) Plc, Tony Elumelu, that Nigeria was “losing over 95percent of oil production to thieves”.
Avuru, in a report titled, “Reining in the Collapse of the Nigerian Oil Industry” published by the Africa Oil+Gas Report, called for a state of emergency in the Nigerian oil and gas sector.
He urged regulators and the Nigerian National Petroleum Company (NNPC) to set up a “war room” strategy to develop a plan to return the oil sector to “full bloom.
“With eyes fixed on divestments and exit, the IOCs have not made any meaningful investments in the last 15 years,” he said.
“The result has not just been declining production. Much worse, the entire export pipeline network has been surrendered to vandals and illegal bunkerers. Thus, the phrase “crude theft” which crept into the industry about 2010 has taken on a new meaning.
“There are some pipeline systems now (particularly in the East), where 80percent of production injected therein does not make it to the terminal!”
According to him, almost every producer is now cooking up “alternative evacuation” schemes that cost four to five times what pipeline export would normally cost!
“The stark reality today is that the IOCs are leaving. Their decision to leave is outside our control as a nation. In fact, over the last 12 years, Shell and Chevron have divested from a total of 21 blocks. It is now public knowledge that Shell and ExxonMobil are now exiting the onshore/shallow water altogether,” he said.
“In fact, my projection is that, by Christmas day of 2025, Total would be the only IOC in JV with NNPC.
“The situation is the same with domestic gas delivery. Even though we are weaving all the right slogans about the future of gas in Nigeria, in the past five years, I can only point at a couple of Nigerian independents who are investing in gas development and processing for the domestic market.
“The state of the NNPC Towers in Abuja, headquarters of the Nigerian oil industry: Just standing back and intervening by pre-emptive acquisitions cannot be a sustainable solution to the question of retreating IOCs Nigerian Petroleum Industry is a national emergency. Oil production is down to about 1.4million barrels per day and declining and this includes about 600,000BOPD from the deep-water.
“Domestic gas production has stagnated at about 1.2billion cubic feet (Bcf) per day over the past five years at a time when projected production should have been 3.5Bcf per day. The collateral impact of course, is the low level of power generation which itself has stagnated at about 4,000megawatts per day since 2015.”
Avuru added that the full impact of the current oil production level can only be imagined when oil prices return to the $60 per barrel level.
“I dare repeat that the situation has to be treated as a national emergency,” he said.
“Between the upstream regulator (the commission) and NNPC, they need to set up a ‘war room’, some form of an effective task force to develop a blueprint for returning the industry to full bloom. The responses we hear today to the myriad of problems outlined above have been ad-hoc, knee jerk and in some cases only self-serving.”
Avuru outlined some issues that must be addressed in the oil and gas sector.
“When IOCs leave a matured petroleum patch, independents, whether local or international, usually move in to inject fresh capital, run a nimble efficient operation and maximize production and reserves addition,” he added.
“A well-organised transition driven by a clear policy direction, from the retreating IOCs to a crop of efficient independents with the requisite resources will have to be implemented.
“Just standing back and intervening by pre-emptive acquisitions cannot be a sustainable solution proffered by NNPC.
“There has to be a deliberate policy-driven return to the traditional onshore/shallow water terrains. 80percent of our remaining reserves are still in this belt.
“To do this, we have to address the twin problems of reliable pipeline evacuation and community restiveness. These problems have become heightened, not because there is no solution, but because we have abandoned every attention to them in the last 15 years.
“When these two problems are tackled, plus a strict application of the ‘drill or drop’ provisions of the new PIA, huge investments in drilling and facilities revamp will flow again into this terrain.
“Finally, we have to match our gas slogans with effective, measurable, policy actions to drive investments in domestic gas supply. The current flip-flops on pricing and commercial structure of the gas business cannot stimulate investments in the sector.
“This industry will not wake up by God’s miracle. We have to wake up and design the stimulant that will revitalise it.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had said the country loses more than 115,000 barrels per day to oil theft and vandalism.
Oil producers in Nigeria lamented oil thieves are raking in ‘petrodollars’ while Nigeria is bedevilled by low production.
In February, Nigeria’s oil production had dropped to an average of 1.25million barrels per day (bpd) from 1.39million the previous month.
News
China Alerts Rivers, A’Ibom, Abia Govs To Economic Triangle
The Mayor of Housing, My-ACE China, has alerted the Governor of Rivers, Akwa Ibom, and Abia states to what he calls an emerging ‘Economic Triangle’ within their states.
Mr China, a real estate success strategist who has won numerous local and international awards, has thus drawn the attention of the governors of the concerned states to the emerging development and has urged them to intentionally accelerate the emergence of the economic triangle.
Speaking to newsmen in Uyo, Akwa Ibom State capital at the conclusion of his business trip to the state, Mr China, who is the managing director of the Housing and Construction Mayor Limited, said the envisaged economic corridor would compete favourably with the Lagos economic hub or even better.
He said: “Talking about ‘Economic Triangle’, the only place that can wrest economic power from Lagos is Akwa Ibom, Abia, and Rivers states axis or corridor. This corridor contains more than Lagos has, if they can be interconnected with smooth roads, ports, and if their blue potentials are unlocked. They will not only wrest power from Lagos but would be more lucrative.”
The investor who is behind the emerging Alesa Highlands Green Smart City in Eleme, near Port Harcourt, said the new ‘Economic Triangle’ has a bigger potential due to massive land assets with the corridor plus blue economy and the existing hydrocarbon industry.
Explaining, Mayor of Housing said Aba (Abia State) provides the biggest fabrication capacity in West Africa to supply goods to the Gulf of Guinea; Port Harcourt provides access to the Gulf of Guinea for off-taking Aba products, and the Uyo provides deep sea port at Ibaka and international airport facilities as well as forest reserves for massive agro-economy.
He said with sea ports in Rivers State and deep seaport in Akwa Ibom, and international airports in Rivers and Akwa Ibom, Aba can focus on adequate power supply and fabrication boom to supply a new booming market around the economic triangle.
By doing this, he said, jobs would spill out in huge quantities and more manufacturers would be drawn from all over Africa to boost the fast coming African Continental Free Trade Agreement (AfCFTA). He said Nigeria would thus have two major trade nodes in West Africa; Lagos and the PH/UYO/Aba triangle.
He said goods going to or coming from Chad, Niger, and the rest of Central Africa can head to the Lagos ports or to the Ibaka/PH ports zone in the new economic triangle.
He said with power supply made stable, good roads, excellent security system, and ease of doing business enthroned in the zone, the South-South and South East would become the biggest economic nerve in the near future.
Mayor of Housing called on governors of the three states to be intentional about the new corridor, put away political differences (if any), and create this corridor by agreeing on projects each state would execute with a short period of time so the states would be linked by good roads, communication, security, trade laws, concessions to investors, etc.
He remarked that northerners were already heading to the Onne Port in Rivers State to export goods, saying creating a commission to oversee the development of the ‘Economic Triangle’ would fast-track its emergence.
He observed that people of the three states are peaceful and usually preoccupied with zeal for economic prosperity, saying that if they are linked to such huge opportunities staring at them in the emerging economic triangle, they would totally shun violence and focus on prosperity.
Mr China insisted that the emerging economic triangle would form a big node not only into the Gulf of Guinea economic zone but into Africa because AfCFTA is about production, certification, market availability, and easy transport nodes by sea and air. He said the new economic triangle boasts of all the factors.
“They can only realise this by working together, through collaboration. One state cannot do it but a triangle of the three will create it through seamless interconnection, ports, industrial park, etc. The people will be the richest and internally generated revenue (IGR) will be the biggest in the country,” he said.
News
Tinubu Nominates Ex-INEC Chair Yakubu, Fani-Kayode, Omokri, 29 Others As Ambassadors
President Bola Tinubu has sent the names of 32 ambassadorial nominees to the Senate for confirmation, days after he sent the first batch of three names.
Among them are the immediate past chairman of the Independent National Electoral Commission, Mahmud Yakubu, an aide to former President Goodluck Jonathan, Reno Omokri (Delta), and former Enugu State Governor, Ifeanyi Ugwuanyi, among others.
“In two separate letters to the Senate President, Godswill Akpabio, President Tinubu asked the Senate to consider and confirm expeditiously 15 nominees as career ambassadors and 17 nominees as non-career ambassadors,” read a statement on Saturday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.
In the statement titled, ‘Tinubu nominates 32 additional ambassadors,’ Onanuga noted, “There are four women on the career ambassadors’ list and six women on the non-career ambassadors’ list.”
“Among the non-career ambassador designates are Ogbonnaya Kalu from Abia, a former presidential aide, Reno Omokri (Delta), former chairman of the Independent National Electoral Commission (INEC), Mahmud Yakubu, former Ekiti first lady, Erelu Adebayo, and former Enugu governor, Ifeanyi Ugwuanyi.
“Others are Tasiu Musa Maigari, the former speaker of the Katsina House of Assembly, Yakubu N. Gambo, a former Commissioner in Plateau State and former Deputy Executive Secretary of the Universal Basic Education Commission.
“Professor Nora Ladi Daduut, a former senator from Plateau; Otunba Femi Pedro, a former Deputy Governor of Lagos State; Femi Fani-Kayode, a former aviation minister from Osun State; and Nkechi Ufochukwu from Anambra State are on the nomination list,” the statement read.
Also on the list are former First Lady of Oyo, Fatima Florence Ajimobi, former Lagos Commissioner, Lola Akande, former Adamawa Senator, Grace Bent, former governor of Abia, Victor Okezie Ikpeazu, Senator Jimoh Ibrahim, businessman, lawyer and Senator from Ondo State, and the former ambassador of Nigeria to the Holy See, Ambassador Paul Oga Adikwu from Benue State.
Among the nominees for career ambassador and high commissioner-designates are: Enebechi Monica Okwuchukwu (Abia), Yakubu Nyaku Danladi (Taraba), Miamuna Ibrahim Besto (Adamawa), Musa Musa Abubakar (Kebbi), Syndoph Paebi Endoni (Bayelsa), Chima Geoffrey Lioma David (Ebonyi) and Mopelola Adeola-Ibrahim (Ogun).
The other nominees are Abimbola Samuel Reuben (Ondo), Yvonne Ehinosen Odumah(Edo), Hamza Mohammed Salau (Niger), Ambassador Shehu Barde (Katsina), Ambassador Ahmed Mohammed Monguno (Borno), Ambassador Muhammad Saidu Dahiru (Kaduna), Ambassador Olatunji Ahmed Sulu Gambari (Kwara) and Ambassador Wahab Adekola Akande (Osun).
“The new nominees are expected to be posted to countries with which Nigeria maintains excellent and strategic bilateral relations, such as China, India, South Korea, Canada, Mexico, the United Arab Emirates, Qatar, South Africa, Kenya, and to Permanent Missions such as the United Nations, UNESCO, and the African Union.
“All the nominees will know their diplomatic assignments after their confirmation by the Senate,” it read.
Last week, Tinubu sent three ambassadorial nominees for screening and confirmation.
The nominees were Ambassador Ayodele Oke (Oyo), Ambassador Amin Mohammed Dalhatu (Jigawa), and Retired Colonel Lateef Kayode Are (Ogun).
All three are in the pot for posting to the UK, USA, or France after their confirmation.
“More nominees for ambassadorial positions will be announced soon,” Onanuga revealed.
News
Investment In Education Remains Top Priority For Gov Fubara – SSG
The Secretary to Rivers State Government, Dr. Benibo Anabraba, has reiterated that the administration of Governor Siminalayi Fubara remains committed to improving access to quality education at all levels.
Dr. Anabraba gave the assurance while receiving the Deputy Registrar/Zonal Coordinator of the West African Examinations Council (WAEC), Mr Ayanfemi Adeniran-Amusan in Port Harcourt during a courtesy visit.
He emphasised that Governor Fubara remains resolute in sustaining investment in the education sector to improve the quality of teaching and learning.
According to him, “We appreciate the work you are doing and know that our students are amongst the highest in ranking.
“His Excellency, Sir Siminalayi Fubara, takes education very seriously. He is sponsoring the free registration of students for the West African Senior School Certificate Examination (WASSCE) in Government Schools.
“Also, Governor Fubara has approved the establishment of Computer-Based Test (CBT) Centres across the State’s three senatorial districts and the 23 LGAs. The project is intended to improve access to digital learning and examination facilities for students so that our children are at breast with digital literacy, a prerequisite for today’s students.
“We are currently working assiduously to get those centres, both mega and mini, across the three senatorial districts and the 23 local government ready in order to meet up with your deadline,” he said.
The SSG also conveyed the assurances of the Governor to WAEC on Government’s willingness in providing land for its Zonal Office.
Earlier, the Deputy Registrar/Zonal Coordinator of the West African Examination Council, Mr Ayanfemi Adeniran-Amusan, promised to collaborate with the State Government in matters concerning education development.
In another development, the Secretary to State Government, Dr Benibo Anabraba, also met with officials of the National Agency for the Prohibition of Trafficking in Persons, NAPTIP, led by the Assistant Director of Intelligence, Rivers State Command, Barr. Ikediashi Nwamaka.
The SSG while appreciating the Agency for its effort in the protection of vulnerable persons, also raised Government’s concern on the activities of orphanages and care homes in unwholesome practices such as child trafficking, abuse of underaged girls also known as baby-factory, and the lack of regulations on surrogacy.
He however assured that the Rivers State Government has already put plans in place towards legislation to regulate these acts against vulnerable persons, particularly women and children.
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