Oil & Energy

Ward Advocates Technology-Driven Fiscal Regime

Published

15 years ago

August 15, 2011

Robust and balanced fiscal regime that matches development cost and size has been described as essential for effective deployment of technology to guarantee proper development of Africa’s vast resources, Mark Ward has said.

Ward, who is the chairman and managing director, Mobil Producing Nigeria (MPN) and the lead country manager, ExxonMobil affiliates in Nigeria made the assertion in a keynote speech at the just concluded 2011 Society of Petroleum Engineers, Nigerian Annual International Conference and Exhibition in Abuja, recently.

The ExxonMobil boss said technology which continues to elvove to help meet people’s needs would have great impact in addressing the needs and issues in future, and would continue to play a critical role in enabling the achievement of energy secuirty objectives.

He explained that the solution to the challenge of satisfying future global demands lies in effective deployment of innovative technologies which would enable the full development of all the resource types from ultra-deep water to un-conventional resources like heavy oil, coal bed, methane, shale gas etc, the optimisation of energy utilisation and also mitigating the environmental impact of energy development and use.

The note reads partly: “Most forecasts predict that global energy demand will be up 35 per cent more in 2030 than today, driven by growth in population and economic activity. The forecasts also indicate that oil and gas will continue to constitute above 60 per cent of the global energy mix as no other energy source can match their availability, affordability and scale.

“So, as the international energy community is busy working on technologies that underpin growth in renewable energy sources as well as nuclear power and lower emission coal, it is critical for us to deliver technology innovations and improvements that will enable increased supplies of oil and gas that will be needed to support economic growth in the years to come.

“Much of the earth’s remaining recoverable oil resources are found in complex geological formations, remote locations, and under harsh conditions. Leading edge technologies are needed to overcome these challenges and bring these abundant resources to market, to the continued success of the industry, it is a key foundation of ExxonMobil. We take a long-term approach to investment in technology. We spend more than $1 billion annually on research and developemnt,” he said.

On how Africa fits into the above, Ward said with a resource base of about 182 GB it produces an average prodcution capacity of 10.5m bbls of crude oil per day culminating to 12. 5 per cent of the world’s total, stressing that the continent continues to show significant growth in exploration and production.

He added that Nigeria, Angola, Algeria, Egypt and Libya were the five countries that dominate the upstream oil production and account for 85 per cent of the continent’s total oil production.

He reasoned that due to the significant activity growth in the deepwater and unconventional sub-segments in Africa in the near future which require cost-effective development, there was need for significant technology deployment.

Vivian-Peace Nwinaene

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

7 days 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

7 days 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

7 days 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,”