Oil & Energy

Kachikwu Challenges Exxonmobil, Others On Gas Commercialisation Policy

Published

7 years ago

April 15, 2019

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has urged ExxonMobil and other International Oil Companies operating in Nigeria, to key into the gas commercialization policy of government for gas development in the country.
Kachikwu gave the advise while fielding question from newsmen after visiting the ExxonMobil Erha Floating Production Storage and Offloadingvessels (FPSO) facility in Lagos, yesterday.
An FPSO unit is a floating vessel used by the offshore oil and gas industry for the production and processing of hydrocarbons for the storage of oil.
Erha FPSO has a liquid storage capacity of 2.2 million barrel, making it one of its biggest kind in the world. the Erha field and Erha North satellite field, was completed in 2006.
The fields are located approximately 97km offshore Nigeria, in water depths ranging from 1,000m to 1,200m.
The fields were developed with an investment of 3.5 billion dollars.
He said that gas would be parallel income stream for the country if everyone key in to implement the gas commercialization policy
“ There is so much we can do with oil, we are doing that.I like to see oil go up in barrels, up to 3 million barrels but most importantly, I like to see gas begin it life.
“If you look at the production, a lot of gas is been rejected. And everybody is talking of gas in the country and gas is going to be parallel income stream for the country.
“ We have talked about it too much, but fiscal terms have to be agree PSC terms, commercial terms for gas need to be agreed and once we unlock that , the issues of power becomes secondary.
“ My message here today is, thanks for the fantastic work you are doing but there is a huge amount of work left undone,’’ he said.
He said that the country had volume and reserves of oil to produce in the next 40 to 50 years but the gas was still lying untapped.
He said that a lot had been done under the gas commercialization policy adding the LPG deployment had started in the country.
“But those are just torching the fringes, what is important is coming up with right commercial terms, get that done as rapidly as possible and let everybody who have access to gas to development,’’ he added.
He said that government had received submission from all oil companies keying into the policy to help exit gas flare.
“ It is a different thing from dealing with gas development itself. There are many ways to stop flare, you can inject it and that is what has helped us achieved about 70 per cent factor in gas flare exit but that is not real exit, that is manage exit.
“For you to exit it, you must have the right commercial terms so that people can produce gas and make it commercial,’’ he said.
He noted that the need to develop gas for commercial purpose remained the big elephant in the room.

Oil & Energy

AEDC Confirms Workforce Shake-up …..Says It’ll Ensure Better Service Delivery

Published

1 day ago

November 10, 2025

The Tide

The Abuja Electricity Distribution Company(AEDC) has announced a major restructuring exercise as part of efforts to reposition the utility firm for improved service delivery, operational excellence, and stronger customer focus.

In a statement issued by the AEDC management late last Thursday, the company said the move aligned with its ongoing corporate transformation strategy designed to make AEDC more agile, innovative, and customer-centric.

As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.

It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.

“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.

“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.

“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.

AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.

The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.

“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.

“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.

Oil & Energy

Economic Prosperity: OPEC Sues For Increase In Local Crude Oil Refining

Published

1 day ago

November 10, 2025

The Tide

The Chairman of the Organisation of the Petroleum Exporting Countries (OPEC) Board of Governors, Ademola Adeyemi-Bero, has advised local oil refiners in Nigeria to increase in-country refining of crude, noting that value creation for crude oil will support economic growth and development.

Adeyemi- Bero who gave the urge at the Nigerian Association of Petroleum Explorationists Pre-Conference Workshop in Lagos, insisted the country must move away from decades of crude exports and focus on retaining value within the local economy.

He said, “We’ve been an oil and gas exporting country. We produced oil; once there was oil, we put it in a tank and sent it abroad. 40 or 50 years later, people blame Shell and others, but I don’t. They are businesses looking for feedstock for their industrialisation. If you give it to them, they’ll still take it.”

Adeyemi-Bero, who is also the Chief Executive Officer of First Exploration & Petroleum Development Company, said Nigeria had a responsibility to develop its energy resources locally and use them to drive industrial growth, rather than depend on foreign markets, adding that President Bola Tinubu would have returned fuel subsidies if the Dangote refinery had not been there to produce fuel locally.

”Just look at the impact the Dangote refinery has had on foreign exchange and gross domestic product growth. You can imagine what would have happened if that had occurred 50 years ago. If the president had said, ‘I’m cancelling subsidies, and I’m not going to allow multiple exchange rates.’ We didn’t have the option of having petroleum products in this country; I’m sure he would have changed his policies and gone back to subsidies. It’s as simple as that. Let’s not over-aggregate.

He continued, “If you go to Saudi Arabia today, if you go to the UAE, if you go to Qatar, if you go to Malaysia, if you go to Brazil, they are expanding the value chain and keeping it in their space. Now, one man built a refinery; we fought him, we argued with him. But the impact of that Dangote refinery on our GDP and foreign exchange is big.”

According to him, local refining and crude utilisation would also help stabilise the naira and strengthen the nation’s economy.

“If we can sell some oil in naira, let’s do it if it works for both parties. The strength of the naira is what it commands in trade. This is why nobody wants the naira outside this space, but the day you can pay for oil in naira because both parties agree, it strengthens the naira,” he said.

Adeyemi-Bero stressed that Nigeria must deliberately reduce its dependence on exports and focus on value creation to avoid future economic decline.

“We need to decline exports. All of us like to sell, but the person who will buy from us will be willing to buy at the right price. ‘I’m investing in dollars, so don’t come and buy in naira. If I invest in dollars, then pay me in dollars.’ But we could make that happen,” he stated.

Oil & Energy

Senate Seeks Mandate To Track, Trace, Recover Stolen Crude Oil Proceeds

Published

1 day ago

November 10, 2025

The Tide

The Senate Ad-hoc Committee on Oil Theft and Sabotage, has sought for an expanded mandate to track, trace, and recover stolen crude oil proceeds both locally and internationally.

Chairman of the committee, Ned Nwoko, made the call while speaking with newsmen, on the progress made so far by the committee, in Abuja, last Thursday.

Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.

“This is a national call to action. Nigeria cannot afford to continue losing trillions to corruption, inefficiency, and criminal networks.

“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.

Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.

“This represents one of the most troubling cases of economic sabotage our nation has ever faced.

“We have made far-reaching recommendations to end this long-standing menace.

“There is need for strict enforcement of international crude oil measurement standards at all production and export points.

He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.

The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.

He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.

“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.

“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.