Oil & Energy

Oil, Gas Sector’s Financial Flows Reduce To $17.05 – NEITI

Published

7 years ago

December 24, 2018

The Nigeria Extractive Industries Transparency Initiative (NEITI) says that total financial flows from Nigeria’s oil and gas sector reduced to 17.05 billion dollars in 2016, indicating a 31 per cent decline on the 24.79 billion dollars generated in 2015.
NEITI disclosed this in its 2016 Oil and Gas Audit Report released in Abuja last Friday.
The report revealed that the decline was a 75 per cent plunge on the sector’s peak earnings of 68.44 billion dollars generated in 2011.
It noted that the 2016 figure was the lowest in 10 years and the fifth lowest in the 18 years covered by NEITI’s audit reports from 1999 to 2016.
The report blamed the plunge in revenue in 2016 on the low oil prices in the global market and reduced oil production in Nigeria, which in turn was caused by disruption and vandalism of oil assets and spike in crude theft, among others.
It added that the yearly average price of crude oil per barrel stood at 43.73 dollars in 2016 as against 52.5 dollars in 2015.
It said that a total of oil production in 2016 was 659 million barrels as against 776 million barrels produced in 2015
This, it noted was a decline of 15 per cent.
“The Nigerian Liquefied Natural Gas’ NLNG, dividend, loan and interest repayment for 2016 dipped by 63.5 per cent to $390.2 million, as against $1.07 billion recorded in 2015,’’ it added
On crude oil theft and sabotage, it revealed that the country lost about 101 million barrels of crude oil to theft and sabotage valued at 4.4 billion dollars
“Of the total loss, Seplat Petroleum Development Company and Shell Petroleum Development Company, SPDC, accounted for 81 million barrels of crude oil lost through sabotage, while 20 other oil companies recorded 19.8 million barrels lost to theft.
“Losses due to crude oil theft and sabotage rose from 27 million barrels in 2015 to 101 million barrels in 2016, an increase of 274 per cent.
“This was aside losses due to deferment, which in 2016 was put at 144 million barrels which also went up by 65 per cent when compared to the 87.5 million barrels in 2015,” it said.
On cash calls and Joint Ventures (JV), the report said that 8.2 billion dollars was budgeted for cash calls in 2016, out of which 5.5 billion dollars was released and 4.9 billion dollars was paid.
It added that Non-Joint Venture, JV, cash call expenses came to 874 million dollars, representing 17.59 per cent of cash call expenditure.
It further revealed that the contribution of the oil and gas sector to Nigeria’s Gross Domestic Product (GDP) dropped from 9.5 per cent in 2015 to 8.3 per cent in 2016.
On gas production, it said that total gas produced in 2016 was 3.051 trillion Standard Cubic Feet (SCF) out of which 288.209 billion SCF was flared, representing 9.45 per cent of production.
“A total of 126 million barrels, valued at 5.48 billion dollars or N1.37 trillion, was earmarked for domestic consumption, allocated as follows: 23 million barrels (18%) for refineries, 55.9 million barrels (45%) for Direct Sale Direct Purchase (DSDP), 36.6 million barrels (29%) for PPMC lifting and 10.4 million barrels (8%) for offshore processing.
“From the money for domestic crude allocation (DCA), NNPC deducted the following upfront: N512 billion for JV cash call; N126.5 billion for pipeline repairs and maintenance; N99 billion for under-recovery and N20 billion for crude losses,” it said.

Oil & Energy

FG Inaugurates National Energy Master Plan Implementation Committee

Published

4 days ago

September 22, 2025

The Tide

The Federal Government has inaugurated the National Energy Master Plan Implementation Committee (NEMiC), in a major step towards repositioning Nigeria’s energy sector.

Minister of Innovation, Science and Technology, Uche Nnaji, disclosed this in a Statement issued by the minister’s Senior Special Adviser, Robert Ngwu, in Abuja, at the Weekend.

According to the statement, the inauguration which marked the beginning of the full implementation phase of the National Energy Master Plan (NEMP), tasked the committee with the responsibility of spearheading the country’s transition to a cleaner, more inclusive and sustainable energy future.

Nnaji urged the committee to deliver real impact to households, industries, and communities nationwide.

“The National Energy Master plan is not just a document; it is a blueprint for transforming our energy landscape. NEMiC must fast-track the deployment of energy solutions that are reliable, affordable, and climate-friendly.

“The work you do will directly influence Nigeria’s economic growth, social progress, and environmental sustainability,” the minister said.

Nnaji expressed optimism that the committee would deliver on the assignment.

“The decisions and actions taken by this Committee will define Nigeria’s energy trajectory for decades to come.

“This is a responsibility of the highest order, and I am confident NEMiC has the capacity, the vision, and the commitment to rise to the occasion,” he said.

It would be noted that NEMP is a comprehensive framework designed to guide Nigeria’s energy diversification, strengthen energy security and align national development with global climate action goals.

Constituted on Oct. 17, 2024, by the Energy Commission of Nigeria (ECN), NEMiC is tasked with mobilising funding and investing in renewable energy infrastructure.

It also has the responsibility of accelerating the deployment of technologies that expand access to reliable and affordable power.

The committee would oversee projects across solar, wind, hydro, biomass, and other emerging technologies while also advancing the operationalisation of the National Energy Fund, meant to channel resources into domestic energy efficiency and infrastructure projects.

Oil & Energy

How Solar Canals Could Revolutionize the Water-Energy-Food Nexus

Published

4 days ago

September 22, 2025

The Tide

Globally, demand for food, water, and energy is sharply on the rise. The World Economic Forum says that by 2050, food demand could increase by over 50%, energy by up to 19% and water by up to 30%. The increasing scarcity of these resources – and potential solutions to their sustainable management – are deeply interconnected, calling for integrated solutions.

“Disruption in one amplifies vulnerabilities and trade-offs in others,” wrote the World Economic Forum in a July report. “Such disruptions also create opportunities for sustainable growth, enhanced resilience and more equity.” The idea of synergistic nexus solutions is starting to pick up steam in both public and private sectors.

A new project in California, aptly named Project Nexus, aims to do just that. The novel project seeks to find synergies for water management and renewable energy production in some of the nation’s sunniest and most water-stressed agricultural lands by covering miles and miles of irrigation canals with solar panels, yielding multiple benefits for the water-energy-food nexus.

While the panels generate clean energy, they also shade the canals from the harsh desert sun, mitigating water loss to evaporation and discouraging the growth of aquatic weeds that can choke the waterways. Plus, the presence of the water acts as a built-in cooling system for the solar panels. The $20 million state-funded initiative could produce up to 1.6 megawatts of renewable energy “while producing a host of other benefits,” according to a report from SFGATE.

In addition to these benefits, placing solar panels on top of existing agricultural infrastructure could offer key benefits compared to standard solar farms. They are more easily and quickly greenlit, as they don’t face the same land-use conflicts that utility-scale solar farms are facing across the nation. Plus, “placing solar panels atop existing infrastructure doesn’t require altering the landscape, and the relatively small installations can be plugged into nearby distribution lines, avoiding the cumbersome process of connecting to the higher-voltage wires required for bigger undertakings,” reports Canary Media.

The result of Project Nexus and similar models appears to be a win-win for water, energy, and food, all while using less land. “The challenges of climate change are going to really force us to do more with a lot less … so this is just an example of the type of infrastructure that can make us more resilient,” says project scientist Brandi McKuin. While Project Nexus isn’t releasing figures on the project’s performance until they have a full year’s worth of data, McKuin says current analysis shows that the project is on track to meet its projected outputs.

Project Nexus is not the first project to place solar panels over canals, but it’s still among just a handful of such projects in the world. The United States’ first and only other solar canal project came online late last year in Arizona, where the project produces energy for the Pima and Maricopa tribes, collectively known as the Gila River Indian Community. While many large-scale renewable energy projects have run up against land-use issues with tribal lands, the Arizona project shows that the canal model can be an excellent alternative solution.

“Why disturb land that has sacred value when we could just put the solar panels over a canal and generate more efficient power?” David DeJong, director of the Pima-Maricopa Irrigation Project, was quoted by Grist. In keeping with the spirit of water-energy nexus solutions, the Project is currently developing a water delivery system for the water-stressed Gila River Indian Community.

Of course, these pilot projects produce a whole lot less energy than utility-scale solar farms. But research suggests that if the solar canal idea is scaled across the United States’ 8,000 miles of federally owned canals and aqueducts, it could have a significant impact. In 2023, a coalition of environmental groups calculated that installing panels on all that existing federal infrastructure could generate over 25 gigawatts of energy and potentially avoid tens of billions of gallons of water evaporation at the same time.

By Haley Zaremba

Oil & Energy

Dangote Refinery Resumes Gantry Self-Collection Sales, Tuesday

Published

4 days ago

September 22, 2025

The Tide

Dangote Petroleum Refinery and Petrochemicals Limited has announced that it will resume self-collection gantry sales of petroleum products at its facility beginning tomorrow, Tuesday, September 23, 2025.

This is revealed in an email communication from the Group Commercial Operations Department of the company, and obtained by Newsmen, at the Weekend.

The decision marks a reversal of a directive issued earlier, which had suspended self-collection and compelled marketers to rely exclusively on the refinery’s Free Delivery Scheme.

The company explained that while gantry access is being reinstated, the free delivery service remains operational, with marketers encouraged to continue registering their outlets for direct supply at no additional cost.

The statement said “in reference to the earlier email communication on the suspension of the PMS self-collection gantry sales, please note that we will be resuming the self-collection gantry sales on the 23rd of September, 2025”.

Dangote Petroleum Refinery also apologised to its partners for any inconvenience the suspension may have caused, while assuring stakeholders of its commitment to improving efficiency and ensuring seamless supply.

“Meanwhile, please be informed that we are aggressively delivering on the free delivery scheme, and it is still open for registration. We encourage you to register your stations and pay for the product to be delivered directly to you for free. We sincerely apologise for any inconvenience this may cause and appreciate your understanding,” it added.

It would be recalled that in September 18, 2025, Dangote refinery had suspended gantry-based self-collection of petroleum products at its depot. The move was designed to accelerate the adoption of its Free Delivery Scheme, which guarantees direct shipments of petroleum products to registered retail outlets across Nigeria.

The company had also explained that the suspension would help curb transactions with unregistered marketers, either directly at its depot or indirectly through other licensed dealers.

The refinery stressed that the earlier decision was an operational adjustment aimed at streamlining efficiency in the downstream supply chain.

It further warned that any payments made after the effective suspension date would be rejected.