Oil & Energy

SNEPCo Suspends Relocation As Wike Wades In …To Meet Shell, NPA To Stave Off Unrest

Published

7 years ago

September 17, 2018

To forestall a breakdown of law and order, the Amanyanabo of Okochiri in Okrika Local Government Area, King Ateke Tom and the Rivers State Director of the Department of State Service (DSS), have prevailed on thousands of youths under the aegis of Rivers State Youth Federation (RSYF) to shelve their planned protest while also prevailing on the management of Shell Nigeria Exploration and Production Company (SNEPCo) to suspend the phased relocation of the Supply Base of the company at Onne to Lagos.
Both mediators secured the armistice, following their swift intervention to prevent a complete shutdown of business activities at the Oil and Gas Free Zone, Onne, in Eleme Local Government Area, last Wednesday, over the move by the Shell subsidiary to relocate its Supply Base out of Rivers State, a move the youths vehemently kick against.
Sources at the meeting told The Tide that both the DSS and the Rivers State Government were concerned about the long term security implications for the state should SNEPCo’s relocation to Lagos be implemented.
Sequel to the resolution, the Rivers State Governor, Chief Nyesom Wike, will next week meet with the top management of Shell Petroleum Development Company of Nigeria, Nigerian Ports Authority (NPA), Oil and Gas Free Zones Authority (OGFZA) and other relevant stakeholders over the planned relocation of the Supply Base of SNEPCo from Onne to Lagos.
It would be recalled that thousands of youths and women groups in Rivers State have staged peaceful protests to express their displeasure over the planned relocation of the SNEPCo Supply Base from Onne due to its adverse economic and security implications on the state and the entire Niger Delta region.
Last Wednesday, the director of DSS in Rivers State and King Ateke Tom had intervened in what would have been a stand-off between thousands of Rivers youths and the Shell subsidiary, and negotiated a deal to give the state government time to find an amicable solution to the impasse.
Speaking shortly after the meeting, President, Rivers State Youth Federation, Comrade Saviour Patrick, said the Amanyanabo of Okochiri and the DSS director have promised to work with other stakeholders to address the concerns of the youth, adding that they were going to wait for the outcome of the dialogue with the state governor.
Another source from the meeting said, “The youths are upset although the DSS director told them there was not much they could do, but he is worried that the situation does not degenerate into renewed militant activities in the state.”
The source added that this would not be the first time Shell had attempted to relocate its business from Rivers State, hinting that Shell’s decision was likely more political than commercial.
In August, more than 1,000 youths under the aegis of the Onne Youths Council (OYC) staged a peaceful protest at the SNEPCo Supply Base, asking the company to rescind its decision to relocate the base from the Onne Oil and Gas Free Zone to Lagos port.
The President of OYC, Comrade Philip John Tenwa, who led the peaceful protest, said the planned relocation would lead to the loss of more than 5,000 direct and indirect jobs.
The Tide gathered that SNEPCo workers have also kicked against the company’s plan to move the Supply Base from Onne to Lagos.
The workers, in a statement made available to newsmen on August 2, 2018, described the planned relocation as “hurried and ill-advised and against the interest of the Niger Delta region”.
The statement signed by one Edward Otaru reads: “We, the affected operations staff and expatriates of SNEPCO wish to bring the attention of the Federal Government and well-meaning Nigerians of a plan by the management of our company to forcefully relocate our operations from Onne, Port Harcourt to Lagos.
“The hushed, hurried but forceful relocation order emanated under a strange and suspicious condition, as it was neither discussed with the staff nor backed by any justifiable reasons.
“We decided to bring this hurried relocation order to the notice of the government and the general public because of its implication on our families and friends who might suffer unnecessary dislocation and also its implication on the Niger Delta region.”
The workers called on the Federal Government to halt the planned movement in the interest of jobs and development of the Niger Delta region.
The Paramount Ruler of Onne Community, King John Dennis Osaronu, also called on SNEPCo to rescind its planned relocation, saying that the community has hosted the company for more than 20 years without any disagreements.
In a reaction to the Onne youths protest, spokesperson for Shell Nigeria Exploration and Production Company (SNEPCo) said, “Shell Nigeria Exploration and Production Company (SNEPCo) has no intention of shutting down the Logistics Supply Base in Onne, Port Harcourt.
“The base will continue to be utilised by The Shell Petroleum Development Company of Nigeria Limited (SPDC), operator of the SPDC Joint Venture for SPDC Joint Venture operations.
“SNEPCO’s operations are in the Bonga field 120 kilometres off Nigerian coast in the Gulf of Guinea and our operations staff and contractors work offshore in Bonga.”

Susan Serekara-Nwikhana

Oil & Energy

TotalEnergies, Conoil Sign Deal To Boost Oil Production

Published

4 days ago

November 24, 2025

The Tide

TotalEnergies has signed agreements with Conoil Producing Limited under which to acquire from Conoil a 50 per cent interest in Oil Processing Licence (OPL) 257, a deep-water offshore oil block in Nigeria.

The deal entails Conoil also acquiring a 40 per cent participating interest held by TotalEnergies in Oil Minining Lease (OML) 136, both located offshore Nigeria.

Upon completion of this transaction, TotalEnergies’ interest in OPL257 would be increased from 40 per cent to 90 per cent, while Conoil will retain a 10% interest in this block.

Covering an area of around 370 square kilometres, OPL 257 is located 150 kilometers offshore from the coast of Nigeria. “This block is adjacent to PPL 261, where TotalEnergies (24%) and its partners discovered in 2005 the Egina South field, which extends into OPL257.

Senior Vice-President Africa, Exploration & Production at TotalEnergies, Mike Sangster, said “An appraisal well of Egina South is planned to be drilled in 2026 on OPL257 side, and the field is expected to be developed as a tie-back to the Egina FPSO, located approximately 30 km away.

“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO.

“This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria”.

Oil & Energy

“COP30: FG, Brazil Partner On Carbon Emissions Reduction

Published

4 days ago

November 24, 2025

The Tide

The Federal Government and Brazil have deepened collaboration on climate action, focusing on sustainable agriculture, renewable energy, and the reduction of black carbon emissions.

The partnership is anchored in South-South cooperation through the Brazil-Nigeria Strategic Dialogue Mechanism, which facilitates the exchange of ideas, technology, and policy alignment within the global climate framework, particularly the Paris Agreement.

The Executive Secretary, Amazon Interstates Consortium, Marcello Brito, made the disclosure during an interview with newsmen, in Abuja, on the sidelines of the 2025 COP30 United Nations Climate Change Conference, held in Belem, Brazil.

Brito emphasized that both nations are committed to global efforts aimed at curbing black carbon emissions, a critical component of climate mitigation strategies.

“Nigeria and Brazil are collaborating on climate change remedies primarily through the Green Imperative Project (GIP) for sustainable agriculture, and by working together on renewable energy transition and climate finance mobilisation,” Brito said.

“These efforts are part of a broader strategic partnership aimed at fostering sustainable development and inclusive growth between the two Global South nations,” Brito added.

TheTide gathered that President Bola Ahmed Tinubu announced an ambitious plan to mobilize up to $3 billion annually in climate finance, through its National Carbon Market Framework and Climate Change Fund, positioning itself as a leader in nature-positive investment across the Global South.

Represented by the Vice President, Senator Kashim Shettima, Tinubu made the announcement during a high-level thematic session of the conference titled ‘Climate and Nature: Forests and Oceans’

Tinubu stressed that Nigeria’s climate strategy is rooted in restoring balance between nature, development, and economic resilience.

Hosted in the heart of the Amazon, on November 10—21, the 30th COP30 conference brought together the international community to discuss key climate issues, focusing on implementing the Paris Agreement, reviewing nationally determined contributions (NDCs), and advancing goals for energy transition, climate finance, forest conservation, and adaptation.

Oil & Energy

DisCo Debts, Major Barrier To New Grid Projects In Nigeria ……. Stakeholders

Published

4 days ago

November 24, 2025

The Tide

Energy industry leaders and lenders have raised concerns that the high-risk legacy debts of Distribution Companies (DisCos) and unclear regulatory frameworks are significant barriers to the financing and development of new grid-connected power projects in Nigeria.

The consensus among financiers and power sector executives is that addressing legacy DisCo debt, improving contractual transparency, and streamlining regulatory frameworks are critical to unlocking private investment in Nigeria’s power infrastructure.

Speaking in the context of new grid-connected power plants, during panel sessions at the just concluded Lagos Chamber of Commerce and Industry (LCCI) Power Conference, Senior Vice President at Stanbic IBTC Infrastructure Fund, Jumoke Ayo-Famisa, explained the cautious approach lenders take when evaluating embedded or grid-scale power projects.

Ayo-Famisa who emphasized the critical importance of clarity around off-takers and contract structures said “If someone approaches us today with an embedded power project, the first question is always: Who is the off-taker? Who are you signing the contract with?” . “In Lagos State, for example, there is Eko Electricity and Excel Distribution Company Limited. Knowing this is important,” she said.

She highlighted the nuances in contract types, whether the developer is responsible just for generation or for the full chain, including distribution and collection.

“Collection is very important because you would be wondering, ‘is the cash going to be commingled with whatever is happening at the major DISCO level, is it ring-fenced, what is the cash flow waterfall,” she stated.

Ayo-Famisa pointed out that the major stumbling block remains the “high leverage in the books of the legacy DisCos.” Incoming project financiers want to be confident that their cash flows won’t be exposed to the financial risks of these indebted entities. This makes clarity on contractual relationships and cash flow mechanisms a top priority.

Noting that tariff clarity also remains a challenge, Ayo-Famisa said “Some states have come out to clearly say that there is no subsidy; some are saying they are exploring solutions for the lower income segments. So, the clarity would be on who is responsible for the tariff, is this sponsored?, Can they change tariffs?, In terms of if their cost rises, they can pass it on, or they have to wait for the regulator.

“Unlike, what you find in the willing seller-willing buyer, where they negotiate and agree on their prices. Now they are going into grid, there is Band A, Band B, if my power goes into, say, Ikeja Electric, or I have a contract with them, “am I commingled with whatever is happening across their multiple bands?”

Also speaking, Group Managing Director and CEO of West Power & Gas Limited, Wola Joseph Condotti, stressed the dual-edged nature of decentralization in the power sector.

“Of course, decentralization brings us closer to the people as the jurisdiction is now clear. You also know that your tariff would be reflective of the type of people living in that environment. You cannot take the Lagos tariff to Zamfara, and this is what has been happening before now in the power sector. So, decentralization brings about a more customized solution to issues you find on the ground.

“Some of the issues I see are those that bother on capacity. It was a centrally run system that had 11 DISCOs. Of the 11 DISCOs, I think there are 3 or 4 of us today that are surviving or alive, if I may put it that way. If you go to electricity generation companies, they are doing much better,” she said.

Condotti highlighted regulatory overlaps as another complication, especially when power generation or distribution crosses state lines.

She said, “Investors would definitely have a problem. Say if you have a plant in Ogun State supplying power to another state, say Lagos State; you are automatically regulated by NERC. But the truth is that the state regulator of Ogun State and Lagos State wants you to comply with certain regulatory standards.”

With the growing demand for reliable electricity and an urgent need for infrastructure expansion, the ability to navigate these complex financial and regulatory landscapes would determine the pace at which new grid-connected power projects can be developed.