Oil & Energy

‘Rukpoku Oil Spill Caused By Facility Integrity Failure’

Published

5 years ago

November 9, 2020

The joint investigation team investigating the recent oil spill at Manifold axis of Rumuechem/Rukpoku oil delivery line in Obio/Akpor Local Government Area of Rivers State has disclosed that the spill was caused by an equipment integrity failure.
The joint team comprising the Rivers State Ministry of Energy and Natural Resources, State Ministry of Environment, National Oil Spill Defection and Response Agency (NOSDRA) and Shell Petroleum Development Company (SPDC) which was on ground to assess the situation, last week, also disclosed that the spill was from a facility belonging to the SPDC.
The Rivers State Commissioner for Energy and Natural Resources, Dr. Peter Medee, who made this disclosure at the oil spill site, however, warned residents against scooping oil from an oil spilling sites.
He advised residents around the oil spill site to stay clear of the area, saying it was dangerous to scoop spilled oil.
He said, “anytime you see a spill from either a tanker or pipeline, people would always, in spite of the consequences, go to scoop spilled oil. That’s why I am calling on all residents to endeavour to stay away from the area that has been designated to be covered by the spill”.
Medee said preliminary investigations into the oil spill indicated that the spill was from a facility belonging to the SPDC.
According to him, “we are very concerned about the incident. Our men, as well as others, have been mobilised to site to be able to look at what exactly took place. Already, men from the SPDC, NOSDRA, Ministry of Environment and of course the Ministry of Energy and Natural Resources have been on ground to have an on-the-spot investigation”.
The commissioner assured that the eight-inch pipeline had been de-pressurised for the safety of the residents in the area, saying, “the facility has been de-pressurised. The reason being that the spot of the spill is actually a residential site”.
The Shell Petroleum Development Company (SPDC) has however, shut down its leaking pipeline located between Agbada FS and Nkpoku Manifold in Rivers State.
Shell’s Media Relations Manager, BamideleOdugbesan, said the company received a report of the leak, last Wednesday, and immediately activated its Emergency and Spill Response Team.
He said the team isolated and depressurised the pipeline the same day to stop the flow of crude oil into it.
He said: “We also secured the site for safety same day (Wednesday, November 4, 2020). We commenced the containment and recovery of leaked crude as well as the statutory government-led Joint Investigation Team (JIV) examination of the site to determine the cause and impact of the leak. The JIV and recovery of leaked crude are expected to be completed within the next one or two days.

Tonye Nria-Dappa

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

7 days ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

7 days ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

7 days ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”