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PIB: NNPC Assures Conducive Fiscal Regime

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15 years ago

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The Nigerian National Petroleum Corporation (NNPC) has assured investors in the nation’s oil and gas industry, specifically joint venture partners, that the fiscal regime which would emerge from the Petroleum Industry Bill (PIB), when passed, would make Nigeria a more conducive environment for business in the West African sub-region.

Group Managing Director of NNPC, Engr Austen Oniwon gave the assurance at the just-concluded 35th edition of the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) 2011 while presenting a paper entitled, “Gas Utilisation For Long Term Clean Energy And Economic Growth”, in Abuja.

Oniwon reasoned that the non-passage of the bill should not be an excuse for indecision as the opportunities available in the industry would not wait as others would come and fill the gap, if joint venture partners fail to act promptly.

Acknowledging their doubts about the fiscal regime in the PIB, the NNPC boss said, “but I can tell you from what I know from the PIB, that the fiscal regime that will emerge is not going to be any worse than what operates in the West African sub-region.

“I believe, if you can do business under these regimes, then those that would do business under the PIB would be very happy to do business in Nigeria”, the GMD emphasised.

The Tide gathered that the bill stipulates how resources and profits should be shared between government and operators in  the industry, and conditions under which the companies will operate.

But The Tide understands that some major international oil companies (IOCs) had kicked against the PIB, alleging that it contains a punitive fiscal regime, and therefore, may undermine their business interests.

Sources said that this feeling had resulted in observed reluctance of the IOCs to invest in new exploration and production operations in the country, which has adversely impacted available crude oil reserves.

But in a bold strategy to shore up core investors’ confidence in the PIB, Oniwon pledged the corporation’s resolve to optimise the nation’s oil and gas potential by encouraging investors to expoit the wide opportunities that exist to boost their drive towards business expansion.

According to Oniwon, with proven gas reserves put at 187 trillion cubic feet (tcf) as at January, 2007, the country’s gas reserves creates a solid platform for environmentally-sustainable economic growth, nothing that as the seventh largest producer in the world, Nigeria’s gas remains of high grade quality without any sulphur content.

On the need to enhance gas utilisation, the GMD said, “Nigeria is said to be one of the fastest growing emerging economies with an expanding middle class, and expected growth in the energy and power sectors”, adding that, “existing energy supply and demand imbalance widening as a lack of past investment in infrastructure has hindered development of Nigeria’s natural gas resources.”

Oniwon stressed that, “government’s objective is to increase power generation capacity to 10,000megawatts from the current 6,000megawatts, of which less than 50 per cent is utilised due to gas supply constraints.”

He noted that the dearth of domestic infrastructure has made diesel and petrol the main source of fuel supply for electricity generation in Nigeria, and added that the realisation of the full potential of natural gas would require enormous efforts and collaboration.

The NNPC’s top director reiterated the Federal Government’s vision of using the gas industrialisation project for the economic transformation of the country, adding that the strategic initiative is anchored on planned investments such as petrochemicals, fertiliser and methanol plants, aimed at shooting up gas utilisation and monetisation windows.

Vivian-Peace Nwinaene

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Oil & Energy

“NCDMB, MJD, Renaissance Launch Pipeline Engineering, Corrosion Control Training 

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5 days ago

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March 23, 2026

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A leading indigenous oil & gas construction and servicing company, MJD Oilfield Services Limited, in partnership with the Nigerian Content Development and Monitoring Board (NCDMB) and Renaissance Africa Energy Company Limited, has officially commenced a comprehensive 12-month Nigerian Content Human Capital Development (NC-HCD) training programme.
The programme is designed to equip 33 Nigerian graduates in engineering and related disciplines with advanced technical competencies in pipeline pigging, corrosion control, and integrity monitoring, thereby strengthening local capacity within the oil and gas sector.
The intensive, year-long initiative integrates both theoretical instruction and practical, hands-on training, with the objective of developing highly skilled and industry-ready professionals capable of contributing meaningfully to Nigeria’s energy infrastructure.
Speaking at the official kick-off ceremony in PortHarcourt, the Managing Director, MJD Oilfield Services Ltd., Olayemi Familusi, emphasised the significance of the programme and urged participants to take full advantage of the opportunity.
He also commended the NCDMB for its sustained contributions to the growth and transformation of the Nigerian oil and gas industry.
“The Nigerian oil and gas industry has undergone remarkable development since the establishment of the NCDMB,” he stated. “We commend the Board for its unwavering commitment to the advancement of Nigerian talent and the industry at large. Beneficiaries are encouraged to apply these acquired skills within the country, where opportunities for growth and impact continue to expand.”
In his address, the Executive Secretary, NCDMB, Felix Omatsola Ogbe, described the initiative as a strategic investment in Nigeria’s energy security.
Represented by the Manager, Human Capital Development, NCDMB, Mrs. Tarilate Bribena-Teide, Ogbe highlighted the critical importance of pipeline integrity expertise, particularly for key national assets such as the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline.
He further underscored the Board’s strict expectations regarding discipline and commitment, insisting that a minimum attendance rate of 99.9 per cent  is mandatory.
Ogbe said “The Board will not hesitate to withdraw and replace any participant who demonstrates a lack of commitment. This programme requires full dedication and has the potential to significantly transform participants’ career trajectories.”
Also speaking at the event, representative of Renaissance Africa Energy Company Limited, Funso Alabi, reaffirmed the importance of strategic collaboration in developing a competent workforce capable of sustaining the long-term reliability and efficiency of Nigeria’s energy infrastructure.
The technical training partner, DORET Limited, presented an overview of the curriculum, which is aligned with the NCDMB Human Capital Development Implementation Guidelines (2020) and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The programme combines classroom-based learning with practical workshop sessions, with a strong emphasis on promoting local content development and technical excellence.
To ensure participants’ full engagement, the programme is fully supported with monthly stipends, meal allowances, mobilisation and demobilisation allowance, learning resources (including laptops and Personal Protective Equipment), health insurance coverage, and both local and international certifications upon successful completion.
The initiative further represents a critical pathway for young Nigerian graduates to transition into the oil and gas industry, reinforcing nation’s capacity to meet its complex technical demands with locally developed expertise.
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Oil & Energy

Fuel Price Hike: NAJA Tasks FG On Crude Supply To Local Refineries 

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5 days ago

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March 23, 2026

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The Nigeria Auto Journalists Association(NAJA ), has called on President Bola Ahmed Tinubu to take decisive steps toward stabilising Nigeria’s fuel market by guaranteeing the direct supply of crude oil to domestic refineries, particularly the Dangote Refinery, as global tensions continue to unsettle energy prices.
In a statement issued last Thursday, the association warned that the rising cost of petrol, exacerbated by the ongoing crisis in the Middle East, poses a serious threat to economic stability and the welfare of Nigerians already grappling with inflationary pressures.
NAJA argued that Nigeria must urgently insulate its downstream petroleum sector from external shocks by strengthening local refining capacity.
The association’s intervention comes amid heightened volatility in the international oil market, where geopolitical developments have continued to influence crude prices and, by extension, the cost of refined petroleum products.
NAJA noted that while recent policy measures by the federal government signal a willingness to address the crisis, more targeted interventions are required to achieve lasting stability. The group specifically referenced the government’s plan to distribute 100,000 Compressed Natural Gas (CNG) conversion kits nationwide, describing it as a commendable but insufficient response to the scale of the challenge.
According to the association, the CNG initiative represents a forward-looking approach to energy diversification, particularly within the transportation sector. However, it stressed that alternative fuel adoption alone cannot resolve the immediate pressures facing petrol consumers. Instead, NAJA maintained that ensuring the efficient operation of domestic refineries remains the most viable short-term solution.
Speaking on behalf of the association, its Chairman, Theodore Opara, urged the federal government to implement policies that would enable local refineries to access crude oil directly from the Nigerian National Petroleum Company Limited, preferably in naira. He argued that such a move would significantly reduce the exposure of domestic fuel production to fluctuations in the global oil market.
Opara, while noting that the current arrangement, under which the Dangote Refinery imports a substantial portion of its crude feedstock, undermines the refinery’s potential to stabilise local fuel prices explained that reliance on imported crude effectively ties domestic refining operations to international pricing dynamics, thereby limiting the benefits of local production.
“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” he said. “If the refinery gets direct crude supply from the NNPC, it will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”
The NAJA chairman further noted that Nigeria’s continued dependence on imported refined petroleum products remains a major vulnerability, despite its status as Africa’s largest crude oil producer. He described the situation as economically unsustainable, particularly at a time when global uncertainties are driving up energy costs.
“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions. It will also help stabilise the downstream petroleum sector,” he added.
While acknowledging the potential of the CNG programme to reduce dependence on petrol over time, NAJA insisted that the backbone of Nigeria’s energy strategy must remain anchored in efficient domestic refining. The association warned that failure to address crude supply constraints could undermine ongoing efforts to reform the sector.
“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” Opara said.
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Oil & Energy

FG Advances $20bn Nigeria-Europe Gas Pipeline Plan

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5 days ago

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March 23, 2026

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The Federal Government said it has progressed in its plan on the proposed transcontinental gas pipeline aimed at delivering its vast natural gas to European markets.
The proposed pipeline, still at an early development stage, is being advanced by a consortium of global industry players and would be subject to extensive technical, commercial, and regulatory processes.
Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who spoke alongside key industry stakeholders, during discussions on the proposed pipeline, at a meeting in London, United Kingdom, described the engagement as both timely and historic, adding that Nigeria is poised to attract investors into its gas sector.
In his words “Nigeria is set for investors to take advantage of this natural gas. The Petroleum Industry Act and the executive orders by Mr President for the petroleum sector have set a conducive environment to attract investments to the sector.
“We must be intentional in the utilisation of our resources. So long as we have these reserves, we must take advantage of them and better the lives of those in the region,” Ekpo said.
The minister further noted that, with appropriate financial backing in place, he sees no obstacle to the project coming to fruition.
In a statement signed by the Spokesperson to the minister, Louis Ibah, Ekpo noted that the move is aimed at strengthening energy security and unlocking long-term economic value.
The proposed pipeline, described as a transformative gas corridor, is designed to transport up to 30 billion cubic metres of gas annually from Nigeria’s southern reserves through Chad and Libya, before extending subsea to Sicily, Italy, and into the broader European market.
According to the statement, stakeholders expressed optimism that the proposed pipeline project would redefine Nigeria’s role in the global energy market while deepening ties with Europe.
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