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NNPC Replaces Eroton As OML 18 Operator

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The non-operating Joint Venture (JV) partners of Oil Mining Lease (OML) 18 have appointed the NNPC Eighteen Operating Limited as operator of OML 18 to replace Eroton Exploration and Production Limited (Eroton).
The Chief Corporate Communications Officer, NNPC Ltd, Garbadeen Muhammad, in a statement in Abuja, said this was to curtail further degradation of the asset and revamp production of oil and gas.
“In order to protect the JV investment in OML 18, the non-operating partners, NNPC Limited (55per cent interest) and OML 18 Energy Limited (’OML 18 Energy’ – 16.20per cent interest), jointly owning 71.20per cent equity, removed Eroton as operator of the JV.
“This is in line with the provisions of the Joint Operating Agreement (JOA).
“NNPC Limited and OML 18 Energy further appointed NNPC Eighteen Operating Limited as operator of the JV,” he said.
Muhammad said the change in operatorship had been notified to the Nigerian Upstream Regulatory Commission (NUPRC) and communicated to Eroton.
He said while the key business reasons that made the change in operatorship were compelling, it was publicly available information that production had declined from 30,000bpd to zero.
He said the persisting inability of Eroton to meet the fiscal obligations of the Federal Government led to the sealing of Eroton’s head office in Lagos by the Federal Inland Revenue Service (FIRS) for more than 12 months due to non-payment of outstanding taxes.
According to him, Eroton is also not able to remit to the JV parties the proceeds of gas supplied to its affiliate, NOTORE.
Muhammad said a number of audits and investigations, including by the EFCC, NURPC’s work programme audit and others had been undertaken or were ongoing.
The NNPC official said some of these audits were regulatory steps that may lead to licence revocation under the relevant laws if drastic steps were not taken by non-operating partners.
“NNPC Limited in particular, as majority shareholder with a unique stewardship responsibility to the federation, is committed to assuring that the energy and financial security of the country is uppermost in its business decisions.
“Removing an operator in these circumstances is therefore inevitable in order to protect the JV from governmental or third parties action from entities, including Eroton’s lenders and other service providers.
“It is important to highlight that OML 18 is an oil-producing block covering 1,035 square kilometres located south of Port Harcourt and contains 11 oil and gas fields with about 714Million Stock Tank Barrels (MMSTB) of oil and condensate and 4.7trillion cubic feet (tcf) of natural gas reserves.
“Eight fields have been developed, but only four are currently producing: Cawthorne Channel, Awoba, Akaso and Alakiri,” he added.
Muhammad recalled that in 2014, Eroton acquired the 45 interest previously owned by Shell – 30per cent, Total – 10per cent and NAOC – five per cent, in the then NNPC/SPDC/Total/Agip OML 18 JV.
Following the equity acquisition, he said Eroton became NNPC’s partner in the OML 18 JV and Eroton was designated as the Operator in accordance with relevant provisions of the Joint Operating Agreement (JOA) between the parties.
He said subsequently in 2018, Eroton farmed-out part of its equity to OML 18 Energy Resource Limited – 16.20per cent and Bilton Energy Limited – 1.80per cent.
According to him, from 2016 to date, OML 18’s net crude oil production has significantly fallen from approximately thirty thousand barrels per day (30,000 bpd) to zero production.
This, Muhammad said, was in spite of consistent compliance to the joint venture’s funding obligations by the JV partners over the same period.
In recognition of the impact of the challenges in crude evacuation via the Nembe Creek Trunk Line (NCTL), the operator proposed, and partners approved an Alternative Crude Oil Evacuation Process by barging.
Eroton is unable to execute this alternative, leading to the current zero production status of the asset.
NNPC Eighteen Operating Limited has taken control of the operational and production assets in the block.
It is currently engaging the relevant stakeholders, workers union and communities, among others, to restore operations to its full capability and secure value for all partners and the federation.

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Fubara Restates Commitment To Peace, Development …Commissions 10.7km Egbeda–Omerelu Road

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Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.

The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.

Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.

He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.

Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.

“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.

He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.

“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.

Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.

Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.

He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.

He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.

In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.

He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.

 

 

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Oil & Gas: Rivers Remains The Best Investment Destination – Fubara

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Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.

Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.

The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.

Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.

“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.

“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.

“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.

“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?

Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.

Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”

The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.

“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.

“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.

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Lady Fubara Lauds Rivers Women On Peace, Development

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Wife of the Rivers State Governor, Lady Valerie Fubara, has lauded the commitment, solidarity and pivotal role of women in promoting peace and enterprise development in Rivers State.

Lady Fubara spoke at the second edition of ‘Women Converge,’ a special programme organized by Rivers Women Unite for Sim, an NGO, at the main bowl of the Alfred Diete-Spiff Sports Complex in Port Harcourt, last Thursday.

She said women in the state had tremendously impacted the state positively through their prayers, careers, contributions to the home fronts, and expressed appreciation to Rivers women, for their unwavering support  to her husband, Sir Siminalayi Fubara, the Governor of Rivers State, while urging them to continue to pray for the state.

“Once again, let me use this occasion to thank Rivers women for their support both in prayers and solidarity with me and my family. You have been wonderful. I can’t reward all that you do, but God in heaven who sees in secret will surely reward you openly.

“Truly today, marks another milestone in our effort to shape the society for good and lending our support for the sustenance of peace and development of Rivers State in particular and Nigeria at large. Without doubt, the prayers of our women avails much in every situation.

“Let me enjoin our women to remain prayerful because God is ever ready to answer our prayers. In all that we do, we must not forget the hand of God and often seek Him for direction and help. You have always been steadfast and I urge you not to relent, and together we will move our society forward. Whatever you do, putting your trust in God will certainly succeed”.

The Rivers State first Lady described the theme of the event, “Women in An Evolving World” as apt and, deeply reflective of the very essence of actions and strategies that women adopt to navigate the new world order.

She noted that despite  the complexities of managing the home front and the constraints of economic realities, women had demonstrated formidable strength and resilience to confront the odds of life.

“This Converge underscores the resilience of our women to succeed no matter the odds, especially with absolute faith in God and determination for greater accomplishments.”

“Whether in the industry, business, agriculture, public service or even in politics, they have always shown strong determination to adapt and to accomplish like others.

“Our natural state notwithstanding our focus has always been to reach for the sky like every other person and as Rivers women we have always been pacesetters.

The Keynote Speaker, Pastor Eno Jerry Eze, described women as the foundation of every society, noting that the development of every society depends on the strength of womanhood.

In their good will messages, notable Rivers women who attended the event expressed optimism over the prospects of sustainable peace and development in Rivers State, and reiterated their support for the administration of Governor Siminalayi Fubara.

Some dignitaries that attended the event include former Commissioner for Environment in Rivers State, Prof Roseline Konya; foremost activist, Ann Kio Briggs; wife of the former Deputy Governor of Rivers State, Dr Mrs Christie Toby; President of the Port Harcourt Chambers of Commerce Industry, Mines and Agriculture, PHACCIMA,  Dr Chinyere Nwoga;  Pastor Ene Secondus, among others.

Highlights of the event were ministrations, cutting of cake and special prayers for Rivers State. 

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