Oil & Energy

NNPC To Acquire IOCs Divested Assets

Published

11 years ago

July 15, 2013

Nigerian National Petroleum Corporation, (NNPC), has said it will acquire the divested assets of International Oil Companies, (IOCs), in Nigeria.
The NNPC has also borrowed about N224 billion ($1.4 billion) from the international financial market to settle the N496 billion ($3.1 billion) indebtedness of its subsidiary – the Pipeline and Products Marketing Company, PPMC – to importers of petroleum products into the country over the last three years.
Speaking on the plans to acquire the divested interests of oil majors, Group ManagingDirector, NNPC,Mr Andrew Yakubu, said in a statement that it is prepared to take over and operate the assets sold off in Nigeria by foreign oil companies.
He said, “With the divestment of the oil majors, the Nigerian Petroleum Development Company, NPDC, comes across as the major option for indigenous participation that will replace companies like Shell and other companies that wanted to divest their equities”.
He disclosed that the NPDC has been repositioned to ensure that the acquired assets remain productive to boost the company’s reserve base and ultimately ensure increases in revenue for Nigeria.
According to data from the NNPC, NPDC’s crude oil production has averaged 130,000 barrel of oil per day with plans to raise output to 250,000 barrel per day by 2015.
This planned increase in production, the NNPC said, will be driven by production from fields sold off by the international oil majors.
NPDC has acquired over 55 per cent equity stake in four onshore oil assets divested by Shell, Eni and Total, including the promising Oil Mining Lease, OML 30, which is projected to be capable of producing around 300,000 barrels per day in the near future, up from 35,000 barrels per day at present. Analysts are of the view that the NNPC stands the chance of acquiring the divested interest, as its partnership with the oil majors means that it will be given the right of first refusal in the acquisition of assets.
On the N224 billion loan deal, reports said the loan deal was agreed in December but it took six months for the money to be disbursed as the deal structure needed to be validated with multiple stakeholders and Nigerian authorities.
The prepayment facility, guaranteed by future oil sales, was led by Standard Chartered Bank and also included BNP Paribas, Societe Generale, Natixis and several Nigerian banks.
The N224 billion loan, according to reports, will be repaid by the NNPC over a period of five years, while it will use as colloateral, 15,000 barrels per day of oil production.
The remaining $1.7 billion of debt is owed to trading houses as well as oil majors, BP, Royal Dutch Shell and Total for supplies of fuel in the last three years.
Reports said the NNPC’s ability to repay the balance of the debt will be more challenging as it has committed most of its available oil flows for the next five years, which can generate additional cash only if oil prices stay much above $75 per barrel.
“Some more recent PPMC creditors did not get any proceeds from the recent drawdown, and cannot afford to be waiting and financially bleeding for another five years with no clear repayment roadmap.
“However, a solution could be found via an increase of the allocation of oil for creditors”, a source said.

Oil & Energy

NNPCL Assures On OB3 Pipeline Completion

Published

2 days ago

May 13, 2024

The Tide

The Nigerian National Petroleum Company Limited (NNPC Ltd) has said the Obiafu-Obrikom-Oben (OB3) Gas Pipeline would now be completed next quarter.
This is as the national oil company said it would continue to invest in the development of huge oil and gas infrastructure to make it easy for operators and prospective investors to carry out their business in Nigeria.
The Executive Vice President, Upstream, Oritsemeyiwa Eyesan, disclosed this at the Offshore Technology Conference (OTC), in Houston, Texas, United States of America.
Speaking at one of the panel sessions of a luncheon organised by the Petroleum Technology Association of Nigeria (PETAN), with the theme: “Sustainable Energy Solutions for Africa’s Future (Nigerian Perspective)”, Eyesan stated that NNPC Ltd.’s objective was to ensure that there is a healthy balance of energy sources in the country.
She explained that though the oil and gas sector is not where it ought to be, much progress had been made between last year’s edition of the OTC in terms of opening up the sector for investments and infrastructural development.
While identifying funding as the major challenge impeding the development of the sector, Eyesan listed some of the bright spots in the industry to include the Executive Orders signed by the President to open up the sector, the imminent resolution of the assets divestment by the International Oil Companies (IOCs), and the aggressive execution of gas infrastructure projects such as the OB3 Gas Pipeline, which she said would be completed in the next quarter.

Oil & Energy

TotalEnergies Targets 100 Startups In 2024

Published

2 days ago

May 13, 2024

The Tide

As part of its support to businesses in Nigeria and Africa, TotalEnergies Nigeria has launched the 2024 edition of its Startuppers challenge.
By this, the multinational aims at empowering 100 businesses across 32 African countries with N8 million cash prize, personalised coaching, and media representation.
The year’s edition of the challenge, launched virtually at an event attended by the Managing Director of TotalEnergies Nigeria Plc, Dr. Samba Seye, and other executives of the energy company, Last Thursday, would be used to commemorate the 100th anniversary of the multinational.
Presenting the form of this year’s competition, the General Manager, Total Country Service, TotalEnergies, Mrs Adesua Adewole, said registration for the challenge would open on May 13th and close on June 18th, 2024.
Adewole explained that 100 startups would be selected at first before 5 finalists would be selected, adding that the shortlisted businesses would pitch to a jury made of experts who would select winners across three categories.
“In December, we will have 100 businesses to celebrate in Africa. In past edition, we had only six winners who were invited to Paris but this year, we will have 100 winners who will be going to selected location where they will be celebrated”, she said.
Adewole stated that Africa was special to TotalEnergies, hence the focus.
In her words, “Africa is special to us. When you look at Africa, our youths make up 60%. They are the ones who will develop he continent, so we streamlined this to them to help them develop their businesses or ideas, scale up and become the business leaders of tomorrow.
“The aim of this 4th edition is to support and encourage young African entrepreneurs to innovate and bring their projects to reality in their country of application”.
Explaining further, the Country Communications Manager, TotalEnergies Nigeria, Dr Charles Ebereonwu, said “we have not attained 100 years before.
“Apart from celebrating 100 years, we have introduced new dimensions like your empowerment of women and equality. All entries will be subjected to whether they take into consideration these dimensions”.
Targeted by the challenge are startups less than three years old or pioneering a business idea with a positive impact on their communities and/or the planet.
“The aim of this 4th edition is to support and encourage young African entrepreneurs to innovate and bring their projects to reality in their country of application”, a statement from the firm said.

Oil & Energy

TCN Targets Power Restoration To North-East, May 27

Published

2 days ago

May 13, 2024

The Tide

The Transmission Company of Nigeria (TCN) has said electricity supply will be fully restored to the North-East by May 27.
TCN’s spokesperson, Ndidi Mbah, who disclosed this in a statement made available to newsmen, weekend, said the commission’s contractors were working to erect four new transmission towers along the Jos-Gombe axis, to enable the restoration of power supply to States in the North-East region of the country.
Recall that TCN had on April 23, said four of its towers along the Jos–Gombe 330 kilo volt (kV) transmission line were vandalised, affecting electricity supply to Gombe, Damaturu, Maiduguri, Yola, Bauchi, and Jalingo.
“The tower collapse affected Gombe, Damaturu, Maiduguri, Yola, Bauchi and Jalingo. Immediately after the incident, however, TCN engineers worked first to redistribute available bulk supply on the Jos, Bauchi, Gombe 132kV line between Jos and Yola Discos, while work commenced immediately at reconstructing the four vandalised towers”, the commission said.
It continued that “Presently, we are rebuilding the four towers simultaneously. Progress is evident, with one tower nearing 80% completion, another at 60%, a third at 30%, and dismantling work finished on the fourth tower”.
Additionally, she said, “tower members” are being fabricated and assembled on-site to expedite work, adding that TCN is dedicated to the quick restoration of bulk power on the line route.
“Construction work on the Jos – Gombe transmission line, taking supply up to Damaturu and environs will be completed and energized by the 20th of May, 2024, while the Damaturu – Maiduguri axis will be completed on the 27th of May, 2024.
“Expectedly, bulk power transmission would be fully restored on the affected 330kV transmission line by the 27th of May. Yola and Jos DisCos would also be able to offtake and distribute optimally from TCN substations.
“For now, only 38MW is wheeled to both Jos and Yola Distribution companies, with each receiving 19MW each. Efforts to take some of the available power to Jalingo was hampered by very high voltage on the line, which could cause a system disturbance”.
According to the spokesperson, TCN is aware of the inconveniences caused by the current insufficient power supply through Yola and Jos DisCos to electricity customers in the affected states.
Mbah further said the company pledged to earnestly expedite work on the towers to guarantee that the towers are completed within the specified time frame.