International Oil Companies (IOCs) are set to pay N380.04 billion in October 2022 as proceeds from the sale of domestic crude oil, according to the Nigerian National Petroleum Company (NNPC) Limited.
The NNPC Limited, which made this known in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Friday, September 23, said the payment would be for July, this year.
A FAAC document, obtained by The Tide’s source, indicated that the expected amount was for the sales of 8.44 billion barrels of oil.
It noted that July 2022 domestic crude oil payable in October 2022 by NNPC Limited was in line with the 90 days payment terms, involving Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN) and Shell Petroleum Development Company (SPDC).
Others included Total Exploration and Production Nigeria, First Exploration and Production (First E&P), and Universal.
It stated that CNL would be paying N80.02 billion for 1.74 million barrels of crude, while MPN would pay N128.66 billion for 2.85 million barrels of oil, and SPDC and Total would pay N28.03 billion and N112.63 billion for 643,904 and 2.54 million barrels of crude oil, respectively.
It also stated that First E&P and Universal would pay N30.24 billion and N30.24 million for 650,069 and 10,000 barrels of oil, respectively.
The Group Chief Executive (GCE), NNPC Limited, Mele Kyari, could not be reached, the weekend, for comments, but he had recently noted that “The NNPC Limited is firmly focused on investing to grow production of both oil and gas, but more importantly, gas and gas infrastructure development, creating linkages to the market and expanding midstream value-adding opportunities.”
The GCE, who identified some problems as constraining output and revenue had said: “We are not unmindful of the current challenges, particularly security in the operational areas, Cash call arrears settlement and other above-ground issues that confront the industry, the question therefore to ask is how do we provide a pathway for growth under these conditions?.
“Well, we must all admit that growth and reinvestment of capital is the only way forward, the consequences of an alternate future can be quite dire.
“Also, particularly heartwarming is the fact that our long history clearly demonstrates resilience, and this is another era in our history to demonstrate our resilience and the collective will to overcome the challenges.
“We have deployed creative solutions to tackle security challenges in the operational areas. Technological intervention for both monitoring and prompt intervention would also be set up. The tackling of the menace is a top priority for NNPC Limited.”
NNPCL Flares 100% Gas Output Earns Zero Revenue In Sept
In spite of the Federal Government’s gas monetisation policy and pledge to the United Nations to attain net zero by 2060, the Nigerian National Petroleum Company Ltd. flared 100 per cent of their gas output in September and earned no revenue from it during this period.
The NNPCL gas production and utilisation data for September 2022, obtained by The Tide’s source described its subsidiary, Nigerian Petroleum Development Company as one of the worst offenders in gas flaring in September.
The firm and its Joint Venture partners, Seplat Petroleum Development Company and NPDC-Chevron Nigeria, flared 100 per cent of their entire gas output of 106 million standard cubic feet of gas and 7 million standard cubic feet of gas, respectively.
The firm further noted that Newcross Exploration and Production Ltd and Belema Oil flared about 96 per cent and 75 per cent of their 112 million standard cubic feet of gas and 21 million standard cubic feet of gas, respectively.
Also, about 8 billion SCF of gas was flared in September, representing 5 per cent of the total gas output for the month, compared with 10 billion SCF of gas flared in the month, of August, according to the report.
This is coming at a time the country is battling a cash crunch due to a drop in its oil revenue on the back of a significant decline in oil production which dipped to below 1million barrels per day, the lowest in 32 years.
The government has been relying heavily on borrowing to finance its activities, as its debt reached an all-time high of N42.84 trillion in June.
The NNPCL gas production and utilisation data did not state why the firm had flared the whole of its gas production for the month. The firm’s spokesperson, Garba Deen, did not also respond to both phone calls and messages sent to him.
Mobil emerged as the highest gas producer in the month under review with a total output of about 25 BSCF of gas, out of which it utilised 23 BSCF of gas and flared 1.6 BSCF of gas.
Shell Nigeria followed with a total gas output of about 25 BSCF of gas, utilising 24 BSCF and flaring 0.5 BSCF; Chevron Nigeria produced about 24 BSCF of gas, out of which it utilised 23 BSCF and flared 0.2 BSCF of gas and Total Energies Nigeria produced about 23 BSCF of gas, out of which it utilised 22 BSCF and flared 0.6 BSCF of gas.
LECAN Seeks Task Force On Electricity Standards Compliance
The Licensed Electrical Contractors Association of Nigeria (LECAN), a key stakeholder in the power sector saddled with the mandate of maintaining standards and professionalism in electricity services delivery, has called for the establishment of Monitoring Task Forces across the 36 states of Nigeria to effect compliance in standards.
National President of the body, Dr John Ekere Etim, gave the charge during the inauguration of the newly elected executives of LECAN in Rivers State, weekend.
Etim, who identified quackry as the bane of the power sector, blamed the Nigeria Electricity Management Services Agency (NIMSA) of compromising standards by issuing corporate licence to individuals and firms without any professional know- how in electricity services.
He urged members to always strive to apply their professional experiences to save the society from the risk of patronage of non-professionals.
“Such vigilance against the activities of infiltrators will sanitise the electricity sector and rid it of substandards in projects execution”, he said.
He said LECAN has since its establishment by law under the then Federal Ministry of Mines and Power, lived up to its mandate, but faced with the challenges of a compromised privatisation policy in power sector reforms, which “encourages substandards and incompetence in service delivery.”
The National President, who emphasised that electricity contracts should be handled by LECAN members who are certified electrical contractors, called for stronger synergy between the association and the government to address the challenges of the power sector.
He urged the newly elected executives to prioritise training and retraining of members to meet up with modern technological trends in the discharge of their professional obligations.
In his remark, a veteran member of the association, Elder Emmanuel Okas Wike, thanked God for the continuous existence of the body despite challenges, and called on the younger generation of membership not to renege on the mandate of the body.
Also speaking, the Senior Special Assistant to the National President on Special Duties, Elder Friday Kor, congratulated the newly inaugurated executive and called for the encouragement of skilled electrical personnel to do proper registration as licensed electrical service providers.
The newly elected executives of LECAN in Rivers State include: Pst Lekia Emmanuel (Chairman); Asuquo Effiong Udoh (Vice chairman); Order Nornubari Kor (Secretary); and Elder Mission T Sagbara (Treasurer).
Others are: Daniel Peter Udoh (Financial secretary); and Ifeanyi Love Omokuwho, who is to serve as Pubic Relations Officer.
When Will Geothermal Energy Go Mainstream?
As governments worldwide encourage greater innovation in renewable energy beyond wind and solar power, with significant funding opportunities available, alternative green energy sources are popping up around the globe, having been long neglected.
Despite the knowledge of a variety of renewable energy sources for several decades, most countries have focused on the low-cost sources that are easiest to produce. But the potential for many alternative energies is significant, requiring greater research and development to establish fruitful operations.
One such power source is geothermal, with the potential to harness the power of the Earth’s heat to produce abundant clean energy.
Yet, overcoming the barriers of access, with the need to drill deep into the Earth’s surface, has deterred many companies from investing in geothermal projects. Yet, both the EU and the U.S. Department of Energy (DoE) have highlighted the significant potential for geothermal energy in supporting a transition to green.
Now, French automaker, Renault, has announced it is betting big on the power source, but will others follow in its footsteps?
The EU has established an Implementation Working Group for deep geothermal (DG working group) to encourage greater investigation into geothermal energy in Europe, and to provide a clean heating and electricity source.
The DG working group is overseeing the rollout of the Deep geothermal implementation plan (IP). DG believes that establishing a geothermal energy industry in Europe will support the achievement of the European Green Deal and the Horizon Europe goals, with a switch from fossil fuels to geothermal expected to help decarbonise up to 25 percent of the region’s energy needs.
It is also thought that with the existing technology, 25 percent of the European population can cost-effectively deploy geothermal heating.
European Commission (EC) research showed that geothermal energy could help Europe in its aim to become the first carbon-neutral continent by 2050.
Geothermal energy is expected to contribute to Europe’s green energy mix, supporting modernised district and communal heating systems and helping achieve the EU’s 2022 REPowerEU Plantargets.
The development of a geothermal industry is also expected to help advance other renewable energy operations, with the potential for mineral extraction from geothermal fluids to enable sustainable lithium production.
Therefore, the EC is supporting several research projects into geothermal energy innovations that will help with Europe’s green transition.
Geothermal energy is generated by accessing underground heat pockets by drilling down into the surface of the Earth.
Thermal energy can be accessed in the rocks and water just a few miles underground by drilling into underground reservoirs to tap into geothermal sources. The heat can then drive turbines for electricity production.
Some projects have already been rolled out. For example, Croatia, which sits on top of an area of land with strong geothermal potential, has developed a geothermal plant, which stands out in the landscape due to its resemblance to a flying saucer.
The hope is to establish a 24-hour supply of energy for a carbon-free electricity grid, providing the green print for future projects in neighbouring Austria, Hungary, and Serbia.
The CEO of the Croatian Hydrocarbon Agency, Marijan Krpan, stated, “There is a huge potential to generate a lot of electricity out of this. There is a huge potential for district heating. And there is a huge potential for agriculture.”
However, despite the growing interest in geothermal energy, it is still little talked about at the international level, with most governments and energy firms continuing to invest heavily in wind and solar power. But this might be set to change.
In November, the automaker, Renault, announced it would be partnering with French utility Engie for the next 15 years to develop and run a geothermal project at its Douai facility.
Drilling operations are expected to commence in 2023, with plans to extract hot water at a depth of 4,000 meters.
The work is expected to meet the industrial and heating process needs by as early as 2025, with water temperatures between 130 and 140oc.
Renault stated that “Once implemented, this geothermal technology would provide a power of nearly 40 MW continuously.”
In addition, “In summer, when the need for heat is lower, geothermal energy could be used to produce carbon-free electricity,” it added.
But will this encourage other companies to follow in its footsteps? The once little-talked-about energy source is gradually gaining traction, especially as major political powers such as the EU and the U.S. provide funding for innovative geothermal solutions.
It may require a greater number of major private energy, automotive, and industry players to publicly make the move for others to understand the potential of geothermal and invest in this green energy source.
By: Felicity Bradstock
Bradstock reports for Oilprice.com
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