Oil & Energy

NPDC To Begin Production Of 250,000 bpd In 2015 – NNPC

Published

12 years ago

April 28, 2014

The Nigerian National Pe
troleum Corporation (NNPC) has announced that Nigerian Petroleum Development Company (NPDC), its subsidiary, would commence production of 250,000 barrels of oil daily from next year..
The Group Managing Director of NNPC, Mr Andrew Yakubu, who disclosed this, added that NPDC was already being repositioned to take its current production level of 130,000 barrels per day to the new projection.
A statement by the corporation’s Group General Manager, Group Public Affairs Department, Ohi Alegbe, said that Yakubu spoke at the graduation ceremony of Chief Officers Management Development Programme of batches 069 and 072 in Abuja.
He said that NPDC’s assets base had grown with the assignment of new oil mining leases, adding that the company was aggressively exploring in “offshore, onshore and the inland basins of Chad, Anambra, Benue, Bida and Sokoto-Dahomey”.
He said that the exploration was in line with the strategic direction to support the Federal Government to increase national crude oil reserve and production to 40 billion barrels and four million barrels per day, respectively.
“We are as well carrying out in-field developments which have resulted in increased reserve.
“With the intensified approach, including the expedited action on new projects like Egina, the reserve and production targets are realisable,” he said.
Yakubu also expressed NNPC’s readiness to reinvigorate domestic consumption of the liquefied natural gas otherwise known as “cooking gas” across the country.
He said that NNPC was determined to reduce the pressure on kerosene consumption and that it was refocusing its strategy to encourage and aggressively grow the consumption of LPG.
According to him, the LPG provides a cleaner and cheaper energy alternative.
“NNPC’s footprint in the domestic gas market has attained unprecedented growth. “This is with the commissioning of the Nigerian Petroleum Development Company’s (NPDC) 100 million standard cubic feet of gas per day in Oredo Gas Processing Facilities and the acquisition of the new assets.
He revealed that“NPDC is now the biggest producer and supplier of gas into the domestic market, contributing over 400 million standard cubic feet of gas per day.
The GMD said that over 1,000 square kilometres of seismic data had been acquired in the Chad Basin in spite of the security situation in Borno.
He stated that revamping of the corporation’s critical downstream facilities such as the refineries, depots, pipelines and jetties, had remained the focus of the management.
He said that the efforts would ensure steady supply and distribution of petroleum products nationwide and implored the graduands to deploy their expertise to enhance NNPC’s efficiency, integrity, accountability and transparency.
During the occasion, the Group Executive Director, Corporate Services of NNPC, Dr Dan Efebo, reiterated the corporation’s determination to train and retrain its workforce.
He said the members of staff remained the cornerstone of any business concern, adding that since the training programme was established 24 years ago, it had recorded a total of 3,521 participants.

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

2 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

2 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

2 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,”