Oil & Energy

Expert Faults NASS On PIB …Wants Rejig Of Domestic Supply Clause, Others

Published

2 years ago

July 12, 2021

An Associate Professor of Energy and Environmental Law in the Rivers State University, Dr. Samuel Chisa Dike, has picked holes in the recommendations made by the Senate and the House of Representatives, as a prelude to the passage of the Petroleum Industry Bill (PIB), saying, some of the recommendations do not meet the yearnings and aspirations of the people of the Niger Delta in particular and Nigerians in general.
Dike, who made his position known in an exclusive interview with The Tide in Port Harcourt, said the domestic supply obligation clause, contained in the bill which expects the International Oil Companies (IOCs) to supply crude oil to the Nigerian National Petroleum Corporation (NNPC), as a public limited company is faulty because, according to him, NNPC as a public limited company, out to make profit, would hardly supply petroleum products to Nigerians as envisaged, if arrogated that primary responsibility.
Consequent upon this, the university teacher appealed to the Nationl Assembly to rejig and amend that clause before its joint session, to reflect the emerging realities in other developed countries.
“In other developed countries, the domestic supply obligation clause is intended to make sure that there is energy security, security of supply of all petroleum products including crude oil to the people, not to a company. This clause should be rejigged and amended before the joint session,” he pleaded.
Dike, who is also the National President of the Association of Environmental Lawyers of Nigeria (AELN) equally indicated that it is wrong to direct NNPC, as contained in the bill to spend 30 percent of its profits to fund frontier basins, stressing that it is an aberration in that NNPC, going by the recommendations in the bill is a public limited company.
According to him, the government cannot dictate to a limited company how it should manage its profits. He also queried the rationale for directing the company to spend its profits in developing the frontier basins in Chad and up North, new areas where oil is likely to be found, whereas the basins in the South of the country are already mature and developed.
“That means that NNPC is going to spend 30 percent of its income to develop those areas whether there is oil or not. This is not the proper way to deploy the profits of a public limited company,” he said.
Dike further noted that the three percent earmarked for host communities in the bill is grossly inadequate, saying, the provision blatantly negates the gains made by the amnesty programme, and therefore, retrogressive, and called on President Muhammadu Buhari not to assent to the Bill if it is passed by the National Assembly without amending the offensive clauses.
The senior lecturer, however, commended the National Assembly for making efforts to pass the bill and for breaking what he described as a jinx, contending that the important clauses the NASS has injected into the bill are nebulous and unclear.

By: Donatus Ebi

Oil & Energy

NPDC, Belema Oil Worst Gas Flaring Offenders In Feb – NNPC

Published

6 days ago

May 22, 2023

The Tide

Indigenous company, Belema Oil, Seplat and Nigerian Petroleum Development Company, an arm of the Nigerian National Petroleum Company (NNPC) were the worst offenders in the oil and gas sector in gas flaring in February, 2023.
The three companies flared 100 per cent of their gas output, according to gas utilisation data released by the NNPC.
They were followed by Agip Energy and Natural Resources, which flared 95.93 per cent of its total gas output, and First Exploration and Production Limited, which flared 95 per cent of its total gas output.
The gas utilisation data showed that oil and gas companies operating in Nigeria produced 149.263 billion standard cubic feet (SCF) of gas in February, a 6.72 per cent drop, compared with 160.013 billion SCF produced in January.
A breakdown of the total gas output for February 2023 showed that associated gas stood at 107.702 billion SCF, while non-associated gas output stood at 41.561 billion SCF.
According to the NNPC, 93.52 per cent of the gas produced was utilised, while 6.48 per cent was flared.
Specifically, 139.589 billion SCF of gas was utilised in February 2023, dropping by 7.25 per cent when compared with 150.493 billion SCF of gas utilised in the previous month, while 9.674 billion SCF of gas was flared, up by 1.62 per cent, from 9.520 billion SCF flared in January 2023.
The NNPC stated that 9.084 billion SCF of gas was used as fuel gas; 45.977 billion SCF was allocated to the Nigerian Liquefied Natural Gas, NLNG; while 5.247 billion SCF was allocated to the Escravos Gas to Liquid, EGTL, plant.
In addition, 2.353 billion SCF of gas was used for Natural Gas Liquids/Liquefied Petroleum Gas, LPG; domestic gas sales by the Nigerian Gas Company and others gulped 23.222 billion SCF, while 53.705 billion SCF was used by gas re-injection and gas lift make-up.

In the Joint Venture segment, Mobil Nigeria recorded the highest gas output, with 25.668 billion SCF, followed by Shell with 24.203 billion SCF; TotalEnergies produced 23.481 billion SCF of gas; while Chevron recorded gas output of 20.683 billion SCF.

However, despite producing the highest quantity of gas in the month under review, Mobil flared 6.26 per cent of its total gas output; Shell flared 4.19 per cent of its total output; Total Energies flared 2.37 per cent of its total output, while Chevron flared 9.03 per cent of its gas output.

In the Production Sharing Contract (PSC) segment, Star Deepwater – Agbami Floating Production, Storage and Offloading (FPSO) produced 12.744 billion SCF of gas, out of which 1.06 per cent was flared; while TotalEnergies Upstream Nigeria’s Akpo FPSO produced 11.975 billion SCF of gas and flared 1.22 per cent of the total.

Oil & Energy

STRYDE To Deploy Seismic Receiver Nodes Onshore Nigeria

Published

6 days ago

May 22, 2023

The Tide

Seismic acquisition technology and solutions provider, STRYDE, has been awarded a contract worth over $1 million for the supply of 10,000 seismic receiver nodes and its “Nimble” node receiver system for an onshore oil and gas project in Nigeria.
STRYDE’s seismic sensor technology will be utilised on an upcoming 3D seismic survey conducted by Nigerian geoscience solutions provider, ATO Geophysical Limited, as part of an onshore oil and gas exploration project in Nigeria.
The seismic survey is due to begin in Q2 2023 and will be the first commercial deployment of STRYDE’s Nimble System in the country as it continues its international expansion within the energy sector.
STRYDE, who are the creators of the world’s smallest and lightest seismic node, will enable ATO to deliver high-density seismic data for the exploration of new reservoir locations in the grasslands and marshlands of Nigeria, for a local oil and gas operator.
Until recently, the country has typically relied on bulky, expensive, and complex cabled geophone receiver systems to acquire seismic data, which traditionally incurs significantly high CAPEX and OPEX costs, more exposure to HSE risk, higher technical downtime, and inefficiencies in the seismic acquisition programme.
With the introduction of cable-less receiver technology like STRYDE’s miniature sensor, geophysical providers and operators can now acquire high-quality data much more efficiently and with less cost, risk, and environmental footprint.
The supply of its node management solution will enable further efficiencies on the survey to be unlocked by allowing ATO to rotate up to 2,160 nodes per day, enabled by the system’s unique capability to simultaneously charge and harvest data from 360 nodes in under four hours.
This system is also equipped with STRYDE’s state-of-the-art software for efficient seismic survey field operations, data harvesting, and quality assurance, allowing ATO to produce processing-ready seismic data fast than ever before.
Head of Business Development, MENA, at STRYDE, Sam Moharir, commented on the transition to nodal technology: “ATO Geophysical Limited needed to have access to cost-effective technology that could also overcome challenges associated with the terrain they were due to operate in’’.

“With cabled systems traditionally being more physically challenging to deploy in remote, large, and complex terrain, STRYDE Nodes™ offer a more efficient and practical solution for improving seismic survey efficiencies through the elimination of restrictive and heavy cabled geophones”.

The Managing Director of ATO Geophysical Limited, Thomas Ajewole, said: “As a leading seismic data acquisition expert in Nigeria, we look forward to partnering on our first project with STRYDE and capitalizing on the benefits of its technology by providing our customers with a more efficient and cost-effective solution to onshore seismic data acquisition.

“As we continue to support the exploration of new oil and gas projects in the region, STRYDE Nodes present an exciting opportunity to acquire high-resolution seismic data required to image the subsurface and pinpoint new reservoir development opportunities for our customers”.

STRYDE’s CEO, Mike Popham, said: “STRYDE is excited to be enabling our first seismic surveys in Nigeria with ATO. This builds upon our successful history of seismic projects across Africa, including Zimbabwe, Namibia, and Kenya.

“We’re proud to see our nodes increasingly being utilized around the world for a range of industrial applications, replacing expensive, cumbersome, and impractical alternative systems with our dynamic technology”.

In addition to providing seismic solutions in the oil and gas market, STRYDE also supports new energy industries including Geothermal, CCUS, Hydrogen, and Mining, providing an affordable solution to a typically expensive phase of any exploration project.

Oil & Energy

NNPCL Clears $3.8bn JV Cash-Call Arrears Owed IOCs

Published

6 days ago

May 22, 2023

The Tide

The Nigerian National Petroleum Company Limited (NNPCL) says it has cleared the outstanding $3.8 billion joint venture cash-call debts owed to International Oil Companies (IOCs) operating in the country.
NNPCL’s Executive Vice President, Upstream, Adokiye Tombomieye, disclosed this as he lamented that inadequate JV cash call funds was stunting the growth of the oil and gas industry.
Tombomieye made the disclosure while speaking during a panel session on upstream opportunities at the fourth edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF) 2023, organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa State.
Represented by the Chief Upstream Investment Officer, NNPCL, Mr Bala Wunti, he disclosed that the country’s oil production has maintained significant increase following measures to tackle crude oil theft.
Tombomieye warned that the NNPCL would no longer deal with portfolio companies, and urged investors to avoid acting as middlemen.
He disclosed that the company had leveraged its financial autonomy derived from the Petroleum Industry Act (PIA) to work out and execute a payment plan for the cash call debt while balancing its energy security obligations to the nation.
“This, by no small means, re-energised the JVs to recalibrate their focus towards sustaining production and increasing their spending to procure the necessary services required to do so”, the NNPCL Chief said.
Also speaking on the panel, the Managing Director of TotalEnergies EP Nigeria Limited, Mr Mike Sangster, announced that the final investment decision on the company’s upcoming Ubeta gas project would be taken in the first quarter of 2024.
Sangster, represented by the Executive Director, JV Assets, TotalEnergies, Mr. Obi Imemba, said Ubeta was its last discovered but undeveloped well in the Oil Mining Lease, OML, 58.