Oil & Energy

Total, Egi MoU And Prospects Of Dev

Published

8 years ago

October 23, 2017

Egi Clan in Ogba/Egbema/Ndoni Local Government Area of Rivers State is a major host community to multinational oil giant, Total Exploration and Production Nigeria (TEPNG).
The corporate partners had over the years operated on a well defined policy thrust, driven by Memorandum of Understanding (MoU), a community engagement model in which the basis of their corporate relationship is made explicit.
The implementation of previous MoUs in Egi clan to a large extent impacted positively on the lives of the people through a thriving rural economy in which the people were major determinant of their economic development.
There was relative peace and a strong communal bond that made Egi a centre of social and economic attraction.
Events in the area however assumed a dangerous twist, following the inundation of the entire Egi clan by a growing spree of insecurity resulting to the shattering of the fledgling economic activities in the area.
Homes were deserted and the corporate partnership between Total and Egi stakeholders was threatened. These ugly trends made the downward review of previous MoUs in the area inevitable.
However, the return of peace to Egi clan and ONELGA in general through the concerted effort and instrumentality of critical stakeholders, has again heralded vistas of hope and opportunities for the corporate partners to forge ahead.
A major breakthrough in this direction was the recent signing of a renegotiated Memorandum of Understanding (MoU) between Total Exploration and Production Nigeria (TEPNG) Egi Clan, Oil and Gas at the Corporate Headquarters of Total in Port Harcourt.
The well attended event was a platform for the stakeholders to rekindle faith with the MoU process. Managing Director of NEPNG, Nicolas Terraz expressed hope that the new MoU as a product of mutually acceptable agreements will form the basis of the company’s relationship with the beneficiary communities for the next five years.
The MD thanked all stakeholders, especially the negotiators for “their sacrifices, understanding and incisive contributions which culminated in the agreement.”
He pointed out that the content and depth of the new MoU are quite far reaching especially in its provisions for infrastructural and human capital development, but expressed deep concern on the implementation and management of the MoU process.
While assuring that TEPNG will not hesitate to disburse the needed funds to drive the MoU process, the MD drew attention to critical issues in the implementation process. He said, “basic principles of sustainability need to be integrated sufficiently into community development project choices, while project nominations and development should be to address identified needs and not contract driven.”
The MD also expressed concern over the management of the scholarship scheme, especially the skills acquisition trainings, which he noted were yet to “bring out established entrepreneurs from its horde of beneficiaries.”
Terraz stressed the need for strict compliance among the MoU stakeholders to the companies compliance regime which is in line with the current global anti-bribery and compliance policy.
The Monarch of Egi clan (Eze Egi) MRM, King (Prof.) Anele U. Wokoma who received the signed MoUs on behalf of the Egi stakeholders, expressed joy over the successful signing of the new MoU.
The Egi Monarch emphasised the need for sustainable peace in Egi land, stating that the rigorous endeavours of the negotiators of the new MoU would amount to an exercise in futility without peace in the area.
As the custodian of the culture of the people and a natural ruler, he said the interest of Egi was paramount in his development objectives and called on all stakeholders in the area to support the peace process.
The Eze Egi also urged the management of TEPNG to be faithful and committed in the disbursement of fund for the implementation of the MoU process and the overall development of Egi land.
Also speaking at the event, the Chairman, Caretaker Committee of Ogba/Egbema/Ndoni Local Government Area, ONELGA, Barr Osi Olisah thanked Egi stakeholders for the return of peace in the area, and called for vigilance against anti-peace forces.
The ONELGA Council boss also tasked the management of Total on the development of Egi clan, stating that the company should; “think globally and act locally.” According to the C.T.C. chairman, the company’s community development policy in Egi can only make more meaningful impact in Egi through the domestication of international best practices in its operational policies.
A major negotiator in the MoU process, Prof. Cheta Williams, who spoke with The Tide in an interview shortly after the signing of the new MoU, said the new agreements took care of the shortcomings of previous MoUs.
He said proper consultations were conducted among all concerned stakeholders to address all contentious issue.
The leadership of the Egi People Assembly (EPA) and the Oil and Gas landlords were also represented at the event.
In his remark, President General of Egi People Assembly, Apostle Magnus Elemele said the new MoU would bring lasting peace and development in the area, as the interest of all the stakeholders are taken care of. He said modalities would be put in place to ensure the smooth implementation of the MoU process.
However, a major concern of the Egi people was the retention of the employment clause in the new MoU.
But against the backdrop of a recessed economic environment, the TEPNG MD said, “the scenario doesn’t look good to support a robust pursuit for a marked employment quota at present, but effort will be made to clear out all outstanding employment commitment contained in the previous agreement while looking into the future with hope of improvement in the company’s operations.”
A cross section of the participants at the MoU signing who spoke with our correspondent, expressed conviction over the prospect of economic development in Egi land through the tenants of the new corporate agreement.
But they also expressed reservation over the need for sincerity of purpose, transparency and accountability in the implementation process. They urged the newly inaugurated implementation committee for the MoU to be guided by the virtue of transparency and due process in the discharge of the duties.
The Memorandum of Understanding (MoU) as a community engagement model has been used by multinationals and other corporate organisations in host community relations, but the implementation of such MoU has equally been prone to contentions among the partners.
The negotiated TEPNG/Egi MoU is therefore another platform for the corporate partners to improve on the shortcomings of the past and consolidate on the gains of the future.

Taneh Beemene

Oil & Energy

No Subsidy In Oil, Gas Sector — NMDPRA

Published

1 week ago

September 8, 2025

The Tide

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.

The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.

Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.

He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.

Furthermore, the Presidential – Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.

For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.

Oil & Energy

‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

Published

1 week ago

September 8, 2025

The Tide

The Managing Director, Financial Derivatives Company Limited (FDC), Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b if electricity supply would increase from the present 4.500MW to 8,000MW.

Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.

In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.

He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.

“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”

The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.

“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.

“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.

“The way out is a bailout, or it is lights out for Nigeria”, he warned.

He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.

Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.

He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”

Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.

Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.

The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.

Oil & Energy

NEITI Blames Oil, Gas Sector Theft On Mass Layoff

Published

1 week ago

September 8, 2025

The Tide

The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.

The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.

Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.

In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.

He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.

According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.

“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.

While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.

According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.

Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.

“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.