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Upstream Regulatory Commission To Overhaul Oil Licencces, Leases

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is adopting a more strategic approach in the administration of crude oil exploration licenses and leases in the country.
This is in line with the objective of the Petroleum Industry Act (PIA) to optimise value from acreage management and administration and the new acreage allocation principles enunciated in the law.
Chief Executive of the Commission, Gbenga Komolafe, who made this known yesterday said the assessment would seek to identify the areas of regulatory underperformance in acreage management and administration leading to the failure of licensees and lessees’ inability to carry out licence and lease performance obligations including the acquisition of data, drilling of wells and maturing of identified leads and prospects within the licence or lease span.
He said to position the Commission on a Performance Centred paradigm for acreage management, a new strategy of acreage allocation, management and administration based on a holistic assessment of the prior performance of all licenses and leases awarded prior to the PIA is required.
In a memo to senior management staff of the Commission, Komolafe listed the aspects of the new strategy to include review assignee performance and contributions to licences and lessees, review compliance performance in reporting milestones by licensees and lessees and the administration of regulatory consequence mechanisms.
He also listed reviewing loss allocation by licensees and lessees under the PIA,  including, production, cost and revenue, and performance review of existing multi-client arrangements and streamlining on-going activities to the PIA.
The assessment framework would require all existing licences and lessees to undergo a performance assessment audit of operation of licences and leases based on a framework to be developed by Lease and focussed on OPLs, OMLs, Marginal Fields and Multi client arrangements. Evaluation is expected to cover the following:

Compliance with environmental requirements and with work programme commitments, compliance with revenue payment obligations and reporting obligations, audit of operation systems and third-party provider activities andassessment of Assignee roles and performance obligations

In the new dispensation, there would be need for a team with representation from relevant departments to achieve performance schematic of existing licences and leases; identify oversight weakness, identify licencee and lessee centred failures in regulatory reporting requirements and other performance indices.

It also include improving oversight mechanism in line with the objective of the PIA and aspects of new strategy as well as develop fresh Standard Operating Procedures (SOP) for acreage management and lease administration in line with the PIA.

The team, which will be made up of a member each from Exploration and Acreage Management: Development & Production; Health, Safety, Environment and Community; Economic Regulation and Strategic Planning and the Legal Secretary Departments, is expected to submit a final report by August 30, 2022.

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Nigeria’s LPG Production Hits 5m Tonnes 

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The Federal Government says Nigeria currently produces about five million tonnes of Liquefied Petroleum Gas (LPG) annually and only eight per cent of the production is being utilised domestically, with the bulk being exported.
It says domestic LPG production stands at about 45 per cent of annual consumption, with Nigerian Liquefied Natural Gas Limited (NLNG) supplying 450,000 metric tonnes per annum while 55 per cent is imported.
Special Adviser to the President on Economic Matters in the Office of the Vice President, Dr Adeyemi Dipeolu, made this known recently at an India-Nigeria LPG Summit, Abuja, 2022.
The Tide’s source  reports that the India-Nigeria LPG summit was hosted by Nigerian National Petroleum Company Limited (NNPC Ltd.) with the support of the Office of the Vice President and World LPG Association (WLPGA).
The summit is expected to translate into bilateral exchanges to foster mutual collaboration and opportunities for the Nigerian LPG industry to learn from India’s experience, one of the world’s most successful National LPG penetration initiatives.
In a keynote address, Dipeolu said Nigeria had the ninth largest proven natural gas reserves in the world, and also the second largest producer of LPG in Africa after Algeria.
“LPG adoption in the Nigerian market, of course, is still very low with per capita consumption at about 1.8 kg, which is below the West African average.
“The household energy mix in Nigeria is about five per cent LPG, 65 per cent biomass and 30 per cent kerosene.
“The preference for the use of other sources is largely due to high switching costs associated with the acquisition of cylinders and LPG stoves, lack of awareness of associated benefits and safe LPG handling across consumer basis.
“There is also the high cost of LPG in comparison with alternative fuels, insufficient and inappropriate cylinders in circulation and inadequate infrastructure, especially trucks, roads, rail pipelines and plants,” he said.
He said the predominant use of biomass for household cooking resulted in deforestation and ambient air pollution, which also could lead to death due to stroke, heart disease, lung cancer and chronic respiratory diseases.
The Presidential Aide underscored the imperative for policies, incentives and investment to grow the Nigerian LPG market.
This, he said, would make cleaner fuel available, accessible and affordable, not only for household cooking, but also in autogas, captive power generation, heating and cooling as well as agriculture and industry.
He expressed optimism that Nigeria would learn from Indian’s experience with the Pradhan Mantri Ujjwala Yojana (PMUY) scheme implemented by the Indian Government in May 2016 such that LPG penetration in that country increased from 62 per cent to 100 per cent currently.
He said the theme of the summit, ‘Energising the Future: Leveraging the Indian Experience to Achieve Nigerian National LPG Aspiration’ underscored the need for cooperation and collaboration between the two countries.
Dipeolu said the cooperation should dwell on policy structures; health, safety and environmental methods and standards, ICT, infrastructure management techniques, stakeholder engagement and innovative programmes to incentivise Nigerian LPG market growth.
According to him, the recently enacted PIA specifically provides enablers for robust midstream and downstream gas development through promotion of policies, incentives and wavers to stimulate investments.
Others, he said, included removal of VAT on domestic LPG, presidential waiver on duty imported LPG equipment, tax holiday on new investment on gas and approval of eight new LPG terminals and storage facilities to add 150,000 metric tonnes gas capacity.
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FG, NNPC Inject 20m Cylinders Via New Gas Coy

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The Nigeria National Petroleum Company (NNPC Ltd) is collaborating with the Office of the Vice President on establishment of Gas Funding Company Ltd for injection of 20 million cylinders in the next five years.
The NNPC Ltd said the company’s establishment, which involved collaboration of other relevant stakeholders and being done under the Marketer Cylinder Owned Model, would boost Liquefied Petroleum Gas (LPG) penetration.
The Group Chief Executive Officer (GCEO), NNPC, Malam Mele Kyari, said this at the opening of India-Nigeria Liquefied Petroleum Gas (LPG summit) in Abuja.
The India-Nigeria LPG summit was hosted by the NNPC with the support of the Office of the Vice President and World LPG Association (WLPGA).
The summit is expected to translate into bilateral exchanges to foster mutual collaborations and opportunities for the Nigerian LPG industry to learn from India’s experience, one of the world’s most successful national LPG penetration initiatives.
The summit has its theme as: “Energising the Future: Leveraging the Indian Experience to Achieve Nigerian National LPG Aspiration.”
Kyari, represented by the Group Executive Director, Downstream, NNPC, Mr Adeyemi Adetunji, said the summit would be required to submit a report detailing gaps identified and recommendations on best practices from the Indian experience.
This, he said, would be for adoption in Nigeria by relevant stakeholders to achieve rapid National LPG penetration.
He said the summit would equally discuss the Nigerian experience and Indian example covering safe LPG handling, pricing and financial support.
According to him, this will enhance LPG affordability among the poor, communication strategies, ICT and infrastructure as well as collaboration on Cylinder management and manufacturing.
Kyari said Nigeria had identified its abundant gas resources as fuel for energy transition which informed its net zero commitments by 2060 and the declaration of 2021-2030 as Decade of Gas.
“NNPC Ltd is an energy company with new investments in gas, power and renewables. Key pipeline projects such as ELPS II, OB3 and AKK to deliver a total of 6.2 billion cubic feet of gas per day to demand nodes across the country are at various stages of completion.
“We have strong presence in the LPG value chain contributing about 45 per cent of domestic supply via JVs (Oso Bonny River Terminal) affiliates (Nigeria LNG Ltd and Ashtavinayak Hydocarbon Ltd) and subsidiaries of NPDC.
“The NNPC Ltd. is fully aligned with the Federal Government’s National Gas Expansion Programme (NGEP) and National LPG Expansion Plan initiatives and has a full-fledged LPG business unit established to commercially drive the National LPG penetration.
“Accordingly, NNPC Ltd is commissioned to deploy 740 LPG Micro Distribution Centres (MDCs) 37 Filing Plants and Skids in its 541 stations within the next three years,’’ he said.
Michael Kelly, the Chief Advocacy Officer and Deputy Managing Director, WLPGA, said the both countries had a powerful role to play in geopolitics for the rest of the century.
Kelly said the discussions would be followed up to foster the cooperation during its LPG week in Delhi in November, adding that looking at lessons learnt and grafting them into Nigerian context would be impactful.
He said the focus of the summit was to share India’s experience with the Pradhan Mantri Ujjwala Yojana (PUMY) scheme implemented by the Indian Government in May 2016.
This scheme pursued an aggressive LPG penetration drive, providing free cylinders, stoves and valves to end users.
This resulted to growth in LPG consumption in last 10 years, with the Indian National consumption currently at 30 million MT per annum and LPG penetration from 62 per cent in 2016 to 99 per cent in 2019.

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TotalEnergies Commits To Grooming Young Leaders

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An International Oil Company (IOC), TotalEnergies, has restated its commitment to grooming tomorrow’s leaders using its Book Reading programme as a way of helping children to deal with all distractions, including social media.
Deputy Managing Director, Joint Venture Assets (JVA), TotalEnergies, Guillaume Dulout, made this known at the company’s 2022 Book Reading and Open Day held in Port Harcourt for Senior Secondary Schools in Rivers State, weekend.
Represented by General Manager, Facilities Management and Administration, Mr Patrick Somiari, Dulout noted that it was exciting to the Book Reading event, being the first physical book reading event after the COVID-19 lockdown and restrictions.
He added that TotalEnergies would apply the Book Reading and Open Day programme, with the theme, “Today A Reader, Tomorrow A Leader”, to drive a sustained measure to nurture children into becoming successful leaders of tomorrow.
He explained that the annual Book Reading programme is TotalEnergies/NNPC Joint Venture’s goodwill to encourage students to embrace reading as a way of life, noting that “Open Day presents a window to share career paths and opportunities in order to guide the students to make informed and rewarding career decisions”.
Observing that reading did not come without some difficulties, Dulout encouraged the students to continue to push as it was the only way to prepare for leadership.
According to him, “being a leader does not usually come without effort. Thankfully, the few who put in the work prepare themselves to be leaders when the opportunity comes.
“Perhaps, nothing positions you better for leadership than reading. You must read; read regularly, read voraciously. It was in that light that the English philosopher and statesman, Sir Francis Bacon, observed that ‘Reading maketh a full man’.
“Reading involves a considerable level of concentration and thus, nurtures patience. What follows is better vocabulary and knowledge. Indeed, patience, knowledge and a rich reservoir of vocabulary help you establish the identity of a leader. Reading nurtures values that make you a leader”.
He stated that the book chosen for the event, “Diary of Fatherland”, by Charles Nelson, was chosen for its content as it would increase their appetite for books and place them on the path of leadership.
“You must start reading today. The book we have chosen to read at today’s event, ‘Diary of Fatherland’ by Charles Nelson, is designed to heighten your appetite for books and place you on the path of leadership.
“Of course, you will not find reading a piece of cake or undemanding, especially in the times we live in. If dealing with the appeal of the traditional media, especially TV and cinema, was difficult, the proliferation and allure of the social media would make reading more challenging.
“But don’t allow these media and their devices to be a drag on your dream of becoming a leader. I believe all the distractions that are incidental to young ones today have magnified the importance of the Book Reading & Open Day programme”, he said.
He charged them, saying, “Participate, be attentive, be involved, read. My sincere hope is that at the end of today’s programme, you would make the decision to be a reader, a leader”.
In his remarks, the Rivers State Commissioner for Education, Prof Prince Chinedu Mmom, charged the students to sustain their reading habits as there was no short cut to academic progress.
Participants were drawn from 10 Rivers Senior Secondary Schools, including Bluebell Montessori International Secondary School; Government Girls Secondary School, Rumuokwuta; Army Day Secondary School, Bori Camp; Community Secondary School, Okporo; Community Secondary School, Rumuomasi; Community Secondary School Rukpokwu; Graceland International School; Community Comprehensive  Secondary School, Rumuokwurusi; Tantua International Group of Schools; and Government Technical College, Port Harcourt.

By: Tonye Nria-Dappa

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