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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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Rivers’ll Be Known For Peace, Not Crisis -Fubara

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Rivers State Governor, Sir Siminalayi Fubara, has said that peace has prevailed because he draws strength from God to resist insults and tantrums thrown at him while frustrating attempts by some disgruntled persons who wanted to plunge the State into unending crisis.
The Governor also said that because he has anchored his Government on promoting peace, the enabling atmosphere has been provided for investments and sustainable development to flourish.
Governor Fubara made the assertion when he received a delegation of members of the Bishops and Gospel Ministers’ Association International Incorporated, Rivers State Chapter, at Government House in Port Harcourt, yesterday.
Represented by the Head of Rivers State Civil Service, Dr George Nwaeke, Governor Fubara said while most people took his meekness for weakness, his stance on peace has unarguably enhanced harmonious atmosphere of concord as residents sleep with their two eyes closed, and investors and shareholders are happy with the returns on investment.
He said, “Before, what they hear of Rivers State is that they are fighting, and some genuine investors will not come. Some people even ask you: How are you coping in Rivers State?
“But now”, he asserted: “The Governor has brought about a lot of changes in the State. One of the most important things is that he has changed the negative narrative. It is no longer Rivers of blood. It is now Rivers of peace.
“We are enjoying our lives here. Why? Because there is a change in the narrative. We have peace. The Governor is, as much as possible, absorbing any level of insult at him only for one purpose: that Rivers State may have peace; that we may grow; that this state will experience genuine development.”
Governor Fubara urged them, as members of the Christian family in the State, to continue to pray for the State and the Government so that the enemies of the State will be put to greater shame.
“This peace is what I want you to embrace. Go and continue to pray, because when the sower of the seed went and sowed, the enemy went in the night and sowed tares inside there. But the Governor is sowing peace.
“When I listened to the leader of the team, His Grace Eddy Ogbonda, he said you came all the way from Eleme Junction, and stopped at major junctions, and you uttered prayers for the peace of Rivers State.”
He also said: “I, hereby want to thank you for identifying with the Governor at a time like this. At a time when it looks as if someone wants the Governor’s peace posture misunderstood as weakness.
“When someone has the strength to fight back, but refuses to fight back. That is a bigger strength; that power of restrain does not just come, it can only come from God.
“You cannot give peace, if you do not have peace within you. The Governor is not interested in any form of trouble or violence. What he is interested in is known, and it is: let there be peace in Rivers State,” he said.
In his address, leader of the group, Archbishop Eddy Ogbonda, said they had observed a week-long intensive prayers that culminated into a peace rally, which brought them to Government House, and assured the Governor that God will continue to give him victory over his adversaries while preserving Rivers State.
“It is Rivers State Prophetic Prayer Convocation and Rally 2024 with the theme: ‘Peace be still’. Of a truth, everyone of us understands that we live in a time when we need peace much more than any other thing.
“Rivers State needs peace. Everyone as individuals need peace. The country needs peace, and the world at large needs peace. So, we are here to do a peace march. We pray that God will command His peace to reign in Rivers State,” he said.

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Hoteliers, School Owners Charging In Dollars Risk Arrest -EFCC

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The Economic and Financial Crimes Commission (EFCC) has stated that hotels, schools, and other establishments that accept payments in dollars from their customers are at risk of facing arrest.
The Chairman of EFCC, Ola Olukoyede, said this in the agency’s publication called EFCC Alert on Monday, adding that action would be taken against individuals involved in the dollarisation of the economy.
According to him, the exception is if foreigners come in to transact business and the only means of transacting is their credit card and dollar but to charge local customers in dollars or other foreign currencies would no longer be allowed.
He said charging local activities and customers in dollars is against Nigeria’s constitution.
The EFCC chairman said, “Schools that charge Nigerians in dollar, supermarkets that trade in dollar, estate developers that sell their property in dollar, hotels that are invoicing in dollar, we are coming after you and we have made arrests in that area.
“Yes, if foreigners are coming in and the only means of transacting is their credit card, and dollar, why not? You will get that.
“But document it properly as against selling things within the system, local economy and you will be using dollar as the medium of exchange, it is illegal.
“Our law does not allow for that. And we have also affected some arrests.”

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Eid-El-Fitr: Fubara Felicitates Muslims, Calls For Unity, Tolerance

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Rivers State Governor, Sir Siminalayi Fubara, has enjoined Muslim faithful to remain steadfast to the lessons learnt during the holy month of Ramadan.
Governor Fubara stated this in his message of felicitations to Muslims as they celebrate the 2024 Eid-el-Fitr Sallah, which marks the end of the one-month Ramadan fasting.
The Governor emphasised the importance for Muslims to also uphold the tenets of Islam by exhibiting the fear of God and showing piety in their daily work.
Governor Fubara said, “We must all continue in the good attributes imbibed during the holy month of Ramadan as directed by God through His Prophet, so as to ensure peace, unity and harmony in the society for a better future.”
While praying that the essence of the festival offers them happiness, peace and prosperity in all aspects of life, Governor Fubara said he recognises and appreciates the critical role that the Muslim community continues to play in the development of Rivers State, and indeed, Nigeria at large.
Governor Fubara charged them to remain unwavering and steadfast in their commitment and positive contributions to advance the development of the State and the country.
“I enjoin you all in the State to remain calm, be patient and continue to do what is right,” the Governor added.
He wished the Muslim faithful in the State and across the country a happy Eid-el-Fitr celebration.

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