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Nigeria, Morocco Sign Five MoUs On Hydrocarbons, Agriculture …NCDMB, NNPC To Take Equity In Ammonia Plant

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The Federal Government and the Kingdom of Morocco have signed five strategic Memorandum of Understandings (MoUs) that would foster Nigerian-Morocco bilateral collaboration and promote the development of hydrocarbons, agriculture, and commerce in both countries.
This was contained in a press release obtained from the Nigerian Content Development and Monitoring Board (NCDMB), Corporate Communications Department, in Yenagoa, yesterday.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, led the Nigerian delegation to the agreement signing ceremony at Marrakech, Morocco, while the Chief Executive Officer of OCP Africa, Mr Anouar Jamali, signed for the Kingdom of Morocco.
Under the agreement between OCP, NSIA and the Nigerian National Petroleum Corporation (NNPC), Nigeria will import phosphate from the Kingdom of Morocco and use it to produce blended fertiliser for the local market and export. Nigeria will also produce ammonia and export to Morocco.
As part of the project, the Nigerian Government plans to establish an ammonia plant at Akwa Ibom State.
The Executive Secretary of NCDMB, Engr Simbi Kesiye Wabote, and the Group Managing Director of NNPC, Mallam Mele Kyari, were part of the delegation and they confirmed that their organisations would take equity in the ammonia plant when the Final Investment Decision (FID) would be taken.
Other members of the delegation included Governor of Akwa Ibom, Mr Udom Gabriel Emmanuel; Governor of Jigawa State, Mallam Muhammadu Badaru Abubakar; and Managing Director of Nigeria Sovereign Investment Authority, Mr Uche Orji.
The minister confirmed that the project would broaden economic opportunities for the two nations and improve the wellbeing of the people, adding that the project will also positively impact agriculture, stimulate the growth of gas-based industries and lead to massive job creation.
He disclosed that President Muhammadu Buhari had mandated the Ministry of Petroleum Resources and its agencies and other government agencies to give maximum support for the project.
 “He mandated me to ensure that at least the first phase of this project is commissioned before the expiration of his second term in office in 2023,” he added.
The MoUs that were signed were for the support of the 2nd phase of the Presidential Fertilizer Initiative; Shareholders Agreement for the creation of the Joint Venture company to develop the multipurpose industrial platform and MoU for equity investment by the NNPC in the Joint Venture and support of the gas.
Other agreements are term sheet for gas sales and aggregation agreement and MoU for land acquisition and administrative facilitation to the establishment of the multi-purpose industrial platform for gas sales and aggregation agreement.
The NCDMB boss described the bilateral agreement as significant to the Nigerian economy as it would accelerate Nigeria’s gas monetisation programme through estab-lishment of the ammonia plant in Nigeria and improve the country’s balance of trade which is currently skewed in favour of Morocco, through the export of ammonia.
The agreement would also improve Nigeria’s per capita fertiliser application through importation of phosphate derivatives from Morocco, he added, while challenging the relevant parties to focus on accelerating the FID, assuring that the NCDMB would take equity investment for long term sustainability of the project.
Wabote affirmed that NCDMB was committed to support the Minister of State for Petroleum Resources to realise the Presidential Fertiliser Initiative and will focus its support on taking equity investment and maximising in-country value addition from the project.
In his remarks, the GMD of NNPC, Mele Kyari, confirmed that the corporation would take equity in the project and assured of NNPC’s commitment to deliver gas to the ammonia plant.
 He added that NNPC was aligning itself to the emerging energy transition and would be diversifying its portfolio.
Also speaking, Governor of Akwa Ibom, Udom Emmanuel, promised that the state would be a good host to the project, adding that the state controls 36 percent of Nigeria gas reserve and therefore deserves to host the project.
He said the state was an investment heaven in terms of peace and has the longest shoreline in the country (109km).
He also confirmed that land has been designated for the Ammonia project and any other support needed to actualize the project would be provided on schedule.
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Agency Conducts Mega Mineral Clinic In FCT

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The Nigerian Geological Survey Agency (NGSA) has concluded its mega mineral clinic to ensure that goals scored in area of geosciences data generation are digested by investors.
Director-General of the agency, Dr Abdulrazaq Garba, said this on Saturday in Abuja, at an occasion of its Mineral Promotion, Sensitisation and Dissemination (Mineral clinic), organised by the agency.
Garba said the aim of the clinic was to encourage Nigerians to take advantage of the investment opportunities offered by the geosciences data generation.
He said the programme was a milestone of the agency’s commitment to mineral promotion, sensitisation, and dissemination, which are in line with the present administration’s agenda.
He said the NGSA would go the extra mile to ensure that geoscience information on Nigeria’s mineral resources is disseminated to the public for investment purposes.
He stated further that more wealth and jobs can be created if investors take advantage of the data.
According to him, the aim of the mineral clinics is to expose investors, academia, students and stakeholders, through sensitisation and dissemination of geoscientific information on various solid mineral deposits in the country as well as respond to inquiries from the public.
“The mineral clinic is like an Open Day. In our effort to make available geosciences on a continuous basis, we will present three recent publications to the public.
“These publications are Phosphate Resources of Nigeria, Evaluation of Brine along the Benue Trough and Assessment of graphite occurrences in Saulawa Village, Birnin Gwari, Kaduna State, Northwest,” he said.
The Director-General said the agency would be more fulfilled, when people deployed the generated geosciences data available for economic transformation of the country.
He said one of the agency’s mandate was to generate geoscience data for wealth creation and national development.
“To achieve this, the over 100-year-old exploration agency stepped up exploration and assessment of projects in greenfield and brownfield, using a unified sampling and data capturing system in line with international best practices.
“The data generated by the NGSA prompted the agency to re-organise the Mineral Clinic in six geopolitical zones, which was a huge success.
“In the zones, over 400 potential investors attended the mineral clinic and over 100 samples of rocks and minerals were tested with Hand-Held XRF free of charge.

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Presidential Panel Wants Stiffer Penalties For Crude Oil Thieves

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The Federal Government’s Special Investigative Panel on Oil Theft/Losses has called for deliberate conversations to drive legal reforms that would provide stiffer penalties to culpable entities involved in oil theft.
Chairman of the Panel, retired Maj.-Gen. Barry Ndiomu, made the call in his address of welcome recently at a One-Day Stakeholders Conference on Oil Theft/Losses in Abuja.
Under the theme, “Protecting Petroleum Industry Assets for Improved Economy”, Ndiomu said frank discussions must be held to enable the country “crack the code” and put an end to the criminal enterprise of oil theft.
Ndiomu, who is also the Interim Administrator of the Presidential Amnesty Programme (PAP), expressed regret that the menace of oil theft has had enormous negative impact on Nigeria’s crude oil production, plunging output to a 13-year low of 800,000bpd.
He reiterated that strategic consultations have been held with state governments of the Niger Delta Region and other critical stakeholders to that effect.
“On the side of the law enforcement and security agencies, visits were made to the Chief of Army and Navel Staff, to the DG-DSS, the Attorney General of the Federation and Minister of Justice, the EFCC, among others.
“These engagements availed us information on the challenges their respective organisations faced in securing our nation’s oil assets and combating oil theft.
“These efforts provided us new knowledge and elicited honest discussion amongst Panel Members that led to some obvious conclusion signifying that theft and lose of crude oil stemmed from the twin issues of complicity and negligence,’’ Ndiomu said.
He further explained that the emergent picture suggests the existence of a sophisticated network of complicity between elements from the host communities, security agencies and industry players.
He added that they include both government and private institutions alike, as well as international collaborators.
“The conception of this conference is part of the panel’s strategy to obtain additional inputs, information and data on the subject matter. Today’s event therefore aims at consolidating on what has been achieved so far”, Ndiomu said.
The Chairman, however, advocated for application of modern technologies to protect oil assets and a review of security architecture in the region.
“This should be done with a view to stem the sophisticated network of complicity between elements from the host communities, security agencies and industry players”.
The Tide’s source reports that the event attracted officials from the Presidency, National Assembly, traditional rulers from oil communities, security, military and paramilitary, as well as other stakeholders from the oil and gas sector.

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Iraq Announces Deals To Boost Oil And Gas Output

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Iraq has been saying it wants to produce more oil and gas for a while now but turning stated ambitions into reality has taken a while.
This week, the country took a big step towards that reality when it signed a slew of deals with foreign companies as part of plans to boost both crude oil and natural gas production considerably.
Gas production growth appears to be especially important because right now, Iraq is heavily reliant on neighbor Iran for its gas needs, which puts it into a vulnerable position.
The government in Baghdad inked deals with one Emirati company and two Chinese ones, aiming for oil production growth of a quarter of a million barrels daily and additional natural gas output of 800 million cu ft daily.
Iraq is OPEC’s second-largest oil producer, pumping 4.5 million barrels every day. In previous years government officials had said production capacity could grow to 5 million bpd and even 6 million bpd but little has been done to advance these plans.
The reasons for that slow progress include the politically unstable situation in the country, the dynamics of the oil industry that has seen companies prioritize low-cost, fast-return projects after the last two downturns, and predictions of peak oil demand.
Several oil majors, including Exxon, left Iraq altogether in the past few years, citing the uncertain outlook for its oil industry. Yet successive governments did not give up their plans for greater oil production despite the OPEC+ output quotas, and significantly higher natural gas production.
One of the companies that will be helping Iraq advance these plans is UAE-based Crescent Petroleum. The firm signed three long-term contracts for the exploration and development of three oil and gas fields.
Two of these fields—Gilabat-Qumar and Khashim, in the province of Dyala—are expected to begin producing natural gas within 18 months at a rate of 250 million cu ft daily, Crescent Petroleum said. The third field that Crescent Petroleum will explore is in the province of Basra.
The second of Baghdad’s new oil and gas development partners, Chinese United Energy Group inked a deal with the government to develop the Sindbad oil field, also in Basra.
The third company that signed a deal with the Iraqi government was also Chinese, Geo-Jade Petroleum Co. It will develop the Huwaiza oil field and the Naft Khana field, both near the Iranian border, Reuters noted in a report on the news.
All the contracts signed this week have a duration of 20 years and should help boost Iraq’s energy security in the natural gas department, reducing its bill for gas imports from Iran at a time when its economy is struggling to remain operational.
As a result of the deals signed this week, Iraq could suspend natural gas imports in three years, according to Prime Minister Mohammed Al-Sudani. Commenting on the deals, Al-Sudani said gas imports from Iran are costing the Baghdad budget between $5.5 and $6.8 billion a year, Zawya reported.
“We have decided to enter the global gas market and we will push ahead with projects to develop our gas resources and stop gas flaring because shortages in domestic gas supply are the main cause of our electricity supply problems,” Al-Sudani said.
To further these plans, Iraq will also launch tenders for exploration blocks in the northern, western and central parts of the country in the near future, Oil Minister Hayan Abdel-Ghanisaid this week.
Oil output should also grow. According to the IMF, this year, Iraq could produce 4.6 million bpd, up from 4.4 million bpd last year, The National reported. By 2027, oil production could reach 5 million bpd, the IMF also forecast. Perhaps Iraq’s oil and gas ambitions finally have a chance of panning out.
Kennedy reports for Oilprice.com

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