Oil & Energy

Oil Pollution: ‘IOCs Not Practising Remediation In N’ Delta’

Published

5 years ago

November 4, 2019

“We travel together as passengers on a little spaceship, dependent on its vulnerable reserves of air and soil, all committed for our safety to its security and peace, preserved from annihilation only by care, the work and the life we give our fragile craft”.

When Adlai
Stevenson made the above remarks shortly before his death, he was drawing attention to the need for global environmental protection.
Unfortunately, environmental pollution has today remained one of the most contentious issues of global concern.
Contrary to Stevenson’s postulation, the story of the Niger Delta region in Nigeria seems to be one of the most ominous globally in terms of environmental pollution and gas flaring. In spite of its huge natural deposit of oil reserves, the Niger Delta is predominantly associated with a diminishing and blighted environment, with its teeming natives and inhabitants, displaced of sustainable livelihood.
The ugly trend has continued to draw the attention of stakeholders and pundits, with a view to addressing the development challenges in the oil rich region.
Engr Olu Anda Wai-Ogosu is one of such concerned patriots and key stakeholders who have lent his views on how to address the issues of oil pollution and environmental devastation in the Niger Delta.
The environmentalist and lecturer in the Institute of Geo Sciences, at the Rivers State University, spoke with The Tide in an exclusive interview in Port Harcourt at the weekend, and indentified some tactical flaws in Nigeria oil politics as being responsible for infrastructural deficit in the Niger Delta region.
He picked holes in the Joint Venture Operation, between the Federal Government and the International Oil Companies (IOCs)and said that the effrontery demonstrated by IOCs in slighting oil bearing and host communities, had the tacit connivance of the Federal Government.
He noted that the IOCs, were not operating in the country on their own volition, but at the instance of the Federal Government who was supposed to protect the interest of the host communities. “The actions of the IOCs are supposed to be subjected to international scrutiny of best practices, but they operate on double standards, and hide under the cover of the Federal Government. The joint venture is an international agreement, and in Nigeria, the Federal Government controls 60 percent while the IOCs control 40 percent.
“The stake of the oil bearing or host communities is subsumed under the agreement, but the Federal Government mostly fails to comply in due terms and depends on bail out by the IOCs. The Federal government, therefore, lacks the moral justifications to whip the IOCs to line in the process of institutional default,” he said.
Commenting on the controversial Petroleum Industry Bill (PIB), the environmentalist, said the bill had suffered some defects as a result of vested interests and the intrigues of oil politics which is skewed to the detriment of the oil bearing communities. “The PIB, which was expected to address the burning issues in Nigeria oil sector has also met a brick wall. There are emphasies on financial benefits to the Federal Government and the IOCs, while the stakes of the host communities are not given due consideration. These communities have suffered the brunts of environmental pollution and they want assurance of sustainable livelihood. We are not sincere about the way we handle the environment,” he said. Wai-Ogosu who is the immediate past president of the Nigeria Environmental Society, also barred his mind on remediation activities by IOCs at polluted sites in the Niger Delta.
He pointed out that the IOCs were not practicing remediation in the Niger Delta, but adopted temporary palliatives to contain the spread of pollution.
“What the IOCs do is not remediation, they only try to cut the spread of the spills by scooping the top soil from where the spill has covered and deceive the larger public that they have remediated.
“Remediation is when you apply reasonable scientific and biological methods to ensure the depth of the spread of the hydrocarbon material is adequately removed from the soil,” he explained .
Explaining the effects of oil spillage on the natural environment, he said the effects depended on the size of the spill, the terrain and the natural resources. He explained further that oil spills extended to 200 kilometres away from where it took place, and in severe cases, its devastation can last for over 50 years, as was the case of Ebubu in Eleme Local Government Area of Rivers State.
The university don also attributed lack of active participation of the Niger Delta region in the oil and gas sector to the “self discriminatory politics” played by the Niger Delta leaders which robbed them of their pride of place and justifiable entitlements in Niger oil politics.
“The oil and gas industry in Nigeria started in the Niger Delta in the late 50s when oil was struck on commercial quantity at Oloibiri in present day Bayelsa State and later in Ogoni, but the region was not able to play key role in the sector because the leaders were not futuristic in their thinking.
“Self discrimination and the minority mentality affected their political alignment. The region was factionalised and operated in splinters; this is responsible for the total disconnect between capacity development and exploitation of resources in the region,” he said.
He noted that in the early 50s, the Ogoni area had become very vibrant in oil wealth but Ogonis were not involved in the acquisition of land for the Shell Petroleum Development Company (SPDC).
He decried the fact that, “No purposeful attempt have been made in Ogoni and the entire Niger Delta to improve on capacity in both upstream and downstream sector of the oil and gas economy”.
The academic who teaches for free at the Rivers State University as his contribution to the development of the state, regretted that the few Niger Delta indigenes that owned oil blocks had it on political affiliation. He called for the liberalisation of oil blocks allocation to favour the oil bearing and host communities. “The minority mentality is still hunting the Niger Delta, we still do not realise that we need to position ourselves to take legitimate advantage of the oil resources at our domain; we have allowed the dominance of the Federal Government to over shadow us.
“We should be patriotic and stop fighting ourselves, our political leaders should know the limit between patriotic will and political will. Our representatives in the state and the National Assembly (NASS) should rise above self will and exert a high sense of service and social responsibility,” he stated.
Like Theodore Roosevelt, who was one of the earliest conservationist, Wai-Ogosu recognises the right to develop and use our natural resources, but detests the wastages and indiscriminate burning of the natural reserve which according to him, is the very foundation of life.

Taneh Beemene

Oil & Energy

Hedge Funds Turn Bearish On Oil, Bullish On Natural Gas

Published

2 months ago

March 17, 2025

The Tide

Traders have not been this bearish on oil in months or so bullish on United States natural gas in years.
The latest data on money managers’ positioning in the WTI and Brent crude and U.S. natural gas futures showed two contrasting trends—speculators are betting that oil prices would remain low or go even lower while increasing the bets that natural gas prices would continue marching higher.
So far this year, geopolitical and supply and demand factors have been increasingly bearish for the oil price outlook and increasingly bullish for natural gas prices.
In the oil market, hedge funds and other portfolio managers have been slashing their bullish bets since the end of January, when the U.S. sanctions on Russia’s oil trade were the primary bullish driver of managed money to bet on a tightening market.
With U.S. President, Donald Trump, now in office, the sentiment has quickly soured amid the president’s insistence on lower oil prices, his efforts to broker an end to the war in Ukraine, and – most of all – the enormous uncertainty about on-and-off tariffs and tariff threats and their potential impact on the American economy.
As a result, market participants are preparing for lower oil prices, even amid expectations of declining oil supply from Iran and Venezuela due to President Trump’s hawkish policy toward these OPEC producers.
Speaking of OPEC, the wider OPEC+ group has just said it would begin increasing supply as of April, adding further downward pressure on prices.
Faced with all these bearish drivers, money managers have been reducing their bullish bets on crude oil futures, with the U.S. WTI Crude hitting the lowest net long position – the difference between bullish and bearish bets – in 15 years at the end of February.
In the week to March 4, the latest reporting week with data released on March 7, speculators bought WTI amid a major selloff in all other commodities except for U.S. natural gas.
The net long in WTI rebounded from the 15-year low, but it wasn’t because the market suddenly started betting on higher prices going forward. The rise in WTI buying and the net long was the result of short covering in the U.S. crude futures contract.
In Brent, hedge funds cut their bullish-only bets in the week to March 4 for the biggest decline in longs since July 2024.
Unlike in crude oil, money managers have become increasingly bullish on U.S. natural gas after inventories dipped this winter to below the five-year average as demand surged in the coldest winter for six years.
The net long in natural gas further swelled in the week to March 4, as the number of new bullish bets was four times higher than the new short positions.
“Natural gas continues to benefit from rising demand, both domestically in the US and towards exports via LNG,” Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, commenting on the latest Commitment of Traders report.
At the start of the winter heating season in November, U.S. natural gas inventories were higher than average for the time of the year as America entered the season with stocks at their highest level since 2016.
These stocks, however, were quickly depleted during the coldest winter for six years, with demand for space heating and power generation soaring. A month before the end of the winter heating season, U.S. natural gas inventories have now slumped to below the five-year average and well below the levels from the same time in 2024, at the end of a mild winter.
The lower inventories and the higher demand – both for domestic consumption and LNG exports – have pushed prices higher, encouraging producers to boost gas output this year. Traders bet that prices will go even higher as demand from LNG plants is set to accelerate with the ramp-up of new U.S. export plants.
Paraskova writes for Oilprice.com.

By: Tsvetana Paraskova

Oil & Energy

Renaissance Finalises Acquisition Of SPDC

Published

2 months ago

March 17, 2025

The Tide

Renaissance Africa Energy Holdings says it has successfully completed the acquisition of 100 percent equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).
Spokesperson of the company, Tony Okonedo, who disclosed this in a Press Release, Last Thursday, said Renaissance has completed all processes for the full transfer of ownership of SPDC to the consortium, adding that it will now operate as Renaissance Africa Energy Company Limited.
“Renaissance Africa Energy Holdings today announced that it has successfully completed the landmark transaction between itself and Shell for the acquisition of the entire (100%) equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).
“This follows the signing of a sale and purchase agreement with Shell in January 2024 and obtaining all regulatory approvals required for the transaction. Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited.
“Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited’.
“Renaissance Africa Energy Holdings is a consortium consisting of four successful Nigerian independent oil and gas companies: ND Western Limited, Aradel Holdings Plc. FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group, each with considerable operations experience in the Niger Delta, and Petrolin, an international energy company with global trading experience and a pan African outlook”, the statement reads.
Speaking on the acquisition, the Managing Director/CEO, Renaissance Africa Energy Holding,Tony Attah, said Renaissance Africa Energy Company Limited has a vision to be the leading oil and gas producer in Africa and to help the continent achieve energy security.
Attah expressed gratitude to the Federal Government for its support and pledged the company’s commitment to the Petroleum Industry Act.
“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialization in a sustainable manner’.
“We and our shareholder companies are therefore pleased that the Federal Government has given the green light for this milestone acquisition in line with the provisions of the Petroleum Industry Act”, he said.
The CEO acknowledged the contributions of Nigeria’s Minister of Petroleum Resources, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL) in facilitating the deal.
He said, “we extend our appreciation to the Honourable Minister of Petroleum Resources, the CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the CEO of Nigeria National Petroleum Company Limited (NNPCL) for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as strategic accelerator for the country’s industrial development”.
The Statement further revealed that Renaissance partner companies collectively have an asset base of more than $3 billion and currently safely produce approximately 100,000 barrels of oil per day (bpd) from 12 oil mining leases and operate two functioning modular refineries in Nigeria’s Niger Delta.

Oil & Energy

Oil-Rich Communities Must End Infighting To Access Dev Funds – FG

Published

2 months ago

March 17, 2025

The Tide

The Federal Government has cautioned oil-rich communities against infighting and disruption of oil production, saying it could hinder their access to the Host Community Development Fund.
Minister of State for Petroleum (Oil), Heineken Lokpobiri, made the appeal while speaking at the KEFFESO Stakeholders Forum, in Yenagoa, Bayelsa State.
Lokpobiri noted that the Petroleum Industry Act (PIA) was enacted to bring stability to the oil sector and address longstanding grievances about underdevelopment in host communities.
He lamented, however, that internal disputes among stakeholders have made it difficult for these communities to access and utilize the funds meant for their development.
Lokpobiri insisted that host communities must overcome internal conflicts that hinder their access to the funds.
“This KEFFESO Stakeholders Forum is to see how host communities can maximize the benefits from the Host Communities Trust Funds as prescribed by the PIA.
“If oil production is disrupted, everyone loses — the Federal Government, oil companies, and the host communities themselves. That is why host communities must collaborate with the government and oil companies to ensure smooth operations” Lokpobiri stated.
The Minister called on Host Community Development Trusts (HCDTs) in the Niger Delta to effectively utilize the 3% operational funds allocated to them under the PIA 2021 to drive sustainable development.
He further called that oil-producing communities should take ownership of the oil and gas facilities within their domains and work with relevant stakeholders to ensure sustainable benefits.
“As stakeholders who have their respective stakes in oil and gas operations in the country, we should work together to ensure that we maximize the benefits of oil and gas.”
The minister also emphasized the global push for cleaner energy, warning that the relevance of fossil fuels depends on their extraction and marketability.
“Don’t forget there is a global campaign against the continuation of production of fossil fuel.
“Fossil fuel will never go away. Fossil fuel will not have any value unless you bring it out of the ground or from the sea to the market, that is why we need this collaboration,” he said.
In his remarks, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Omotsola Ogbe, reaffirmed the board’s commitment to leveraging the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Represented by the Board’s Director of Legal Services, Naboth Onyesoh, Ogbe noted that the NCDMB’s Community Content Guidelines were designed to ensure sustained community engagement as local content is prioritized throughout the oil and gas value chain.
Ogbe praised the KEFFESO Host Community Development Trust for its efforts in ensuring that oil revenues benefit local communities.
Also speaking, the Managing Director and Chief Executive Officer, First E & P, Ademola Adeyemi-Bero, described the KEFFESO Stakeholders Forum as a crucial platform for discussing and strategizing solutions to the challenges facing marginalized communities in the Niger Delta.
He reiterated the company’s commitment to fostering meaningful and sustainable development in the region.
The forum, themed “Envisioning Sustainable Community Development in Niger Delta Host Communities: Identifying Challenges and Actualising The PIA Paradigm Shift,” brought together key stakeholders to discuss strategies for maximising the benefits of the Petroleum Industry Act(PIA).